ELMS Announces Third-Quarter 2021 Financial Results
November 10 2021 - 4:05PM
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW) (“ELMS” or
the “Company”), a pioneer of electric vehicles (“EVs”) and
intelligent mobility solutions for commercial vehicle customers,
today announced financial and operating results for the quarter
ended Sept. 30, 2021.
“We are thrilled to have achieved our scheduled
milestones this quarter, most notably generating revenue from the
successful launch and delivery of the first Class 1 commercial EV
in the United States,” said James Taylor, CEO of ELMS. “Having
secured the first-mover advantage in this space, we now are focused
on ramping up production, to meet demand and deliver on our initial
order commitment from a major commercial vehicle distributor.
“In light of unprecedented global supply-chain
challenges, we have made the strategic decision to revise our
production target to 300-to-500 vehicles for 2021 and deliver the
remaining orders in Q1 of 2022.”
Third Quarter 2021
Highlights
- Net loss for the third quarter was
$17.8 million, or ($0.15) per share.
- Total cash balance including
restricted cash of $170.9 million as of Sept. 30, 2021.
- Assembled workforce and equipment
necessary to ramp up production at Mishawaka plant.
- Commenced production of the ELMS
Urban Delivery and shipped the first units to customers on Sept.
28, 2021, to become a revenue-generating company.
- Secured initial binding order for
1,000 units with a national distributor, with a commitment to
purchase a total 6,000 units through 2022.
- Signed supply agreements with
Wuling Motors and CATL for components and lithium-iron-phosphate
(LFP) batteries.
- Signed agreement with Cox
Automotive to provide comprehensive service and support solutions
for ELMS customers across more than 6,000 U.S. service
centers.
- Announced and revealed the Urban
Utility, followed by customer evaluations, with production on track
to commence in the second half of 2022.
Recent Business Highlights
- Launched ELMS EV Campus program to
provide electric vehicle solutions designed to help universities
meet their ESG goals.
- Expanded global footprint to
Canada, opening a new multibillion-dollar commercial vehicle market
to ELMS.
- Bolstered talent in leadership
positions, including key appointments such as new Chief Financial
Officer and Chief Legal Officer, and across marketing, investor
relations and engineering.
- Opened Urban Mobility Lab in San
Francisco to develop advanced in-vehicle technology and additional
customer solutions through ELMS Air for vehicle productivity.
- Began development of battery and
charging ecosystem after announcing collaborations with Ample, Inc.
and EVgo.
- Opened Asia Pacific Operations
Center in Shanghai to strengthen our engineering and logistics
capabilities.
Business Outlook
- The Company now expects its 2021
production to be in the range of 300-to-500 vehicles.
- 2021 total operating expenses are
expected to be in the range of $65 million to $70 million.
- 2021 capital expenditures are
expected to be in the range of $20 million to $25 million.
Conference Call and WebcastELMS
will host a conference call and webcast to discuss its third
quarter results at 5:00 p.m. Eastern Time today, Nov. 10, 2021. To
listen to the live webcast, go to the Investors section of the
company’s website at www.electriclastmile.com at least 15 minutes
prior to the scheduled start time in order to register.
To Participate in the Telephone Conference
Call: Dial in at least 15 minutes prior to start time.
Domestic: 1-800-909-4195International: 1-212-231-2926
A replay of the call will be available via webcast at
www.electriclastmile.com.
About Electric Last Mile Solutions,
Inc.Electric Last Mile Solutions, Inc. (Nasdaq: ELMS;
ELMSW) is focused on defining a new era in which commercial
vehicles run clean as connected and customized solutions that make
our customers’ businesses more efficient and profitable. ELMS’
first vehicle, the Urban Delivery, is the first Class 1 commercial
electric vehicle in the U.S. market. The Company expects to begin
production of its second vehicle, the Class 3 Urban Utility EV, in
the second half of 2022. ELMS is headquartered in Troy, Michigan.
For more information, please visit www.electriclastmile.com.
Forward-Looking StatementsThis
press release includes “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. The Company’s actual results may
differ from its expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, the
Company’s expectations with respect to future performance of the
business, the size, demands and growth potential of the markets for
the Company’s products and the Company’s ability to serve those
markets, the Company’s ability to develop innovative products and
compete with other companies engaged in the commercial delivery
vehicle industry and/or the electric vehicle industry, the
Company’s ability to attract and retain customers, the estimated go
to market timing and cost for the Company’s products, and the
implied valuation of the Company. These forward-looking statements
involve significant risks and uncertainties that could cause the
actual results to differ materially from the expected results. Most
of these factors are outside the Company’s control and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: (1) the inability to recognize the
anticipated benefits of the business combination, which may be
affected by, among other things, competition and the ability of the
Company to grow and manage growth profitably and retain its key
employees; (2) changes in applicable laws or regulations; (3) the
possibility that the Company may be adversely affected by other
economic, business, and/or competitive factors; (4) the impact of
COVID-19 on the Company’s business; (5) any delays the Company may
experience in realizing its projected timelines and cost and volume
targets for the production, launch and ramp up of production of the
Company’s vehicles and the modification of its manufacturing
facility; (6) the ability of the Company to obtain customers,
obtain product orders, and convert its non-binding pre-orders into
binding orders or sales; (7) the Company’s ability to implement its
business plans and strategies; and (8) other risks and
uncertainties described in the “Risk Factors” section of the
Company’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2021, in the “Risk Factors” section of the Company’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2021 and in
the Company’s future filings with the Securities and Exchange
Commission. Some of these risks and uncertainties may in the future
be amplified by the COVID-19 outbreak and there may be additional
risks that the Company considers immaterial or which are unknown.
The Company cautions that the foregoing list of factors is not
exclusive. The Company cautions readers not to place undue reliance
upon any forward-looking statements, which speak only as of the
date made. The Company does not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
Electric Last Mile Solutions,
Inc.Condensed Consolidated Statement of Operations
and Comprehensive Loss (Unaudited)(Amounts in thousands,
except par value and share data)
|
Successor |
|
|
Predecessor |
|
Three Months Ended September 30, 2021 |
For the period
fromAugust 20, 2020 through September 30,
2020 |
|
|
Three Months Ended September 30, 2020 |
REVENUE |
$ |
136 |
|
$ |
— |
|
|
|
$ |
— |
|
COST OF REVENUE |
134 |
|
— |
|
|
|
— |
|
Gross margin |
2 |
|
— |
|
|
|
— |
|
OPERATING EXPENSES: |
|
|
|
|
|
Research
and development expense |
5,642 |
|
— |
|
|
|
— |
|
General
and administrative expense |
16,699 |
|
— |
|
|
|
1,916 |
|
Total operating expenses |
22,341 |
|
— |
|
|
|
1,916 |
|
LOSS
FROM OPERATIONS |
(22,339 |
) |
— |
|
|
|
(1,916 |
) |
Interest
expense |
(656 |
) |
— |
|
|
|
— |
|
Gain on
change in fair value of warrant liabilities |
5,204 |
|
— |
|
|
|
— |
|
Other
income (expense), net |
12 |
|
— |
|
|
|
(26 |
) |
LOSS
BEFORE INCOME TAXES |
(17,779 |
) |
— |
|
|
|
(1,942 |
) |
Income
tax benefit |
— |
|
— |
|
|
|
— |
|
NET LOSS
AND COMPREHENSIVE LOSS |
$ |
(17,779 |
) |
$ |
— |
|
|
|
$ |
(1,942 |
) |
|
|
|
|
|
|
LOSS PER
SHARE: |
|
|
|
|
|
Basic
and diluted loss per share |
$ |
(0.15 |
) |
$ |
— |
|
|
|
|
Basic
and diluted weighted shares outstanding |
118,777,012 |
|
821,173 |
|
|
|
|
|
|
|
|
|
|
|
|
Electric Last Mile Solutions,
Inc.Condensed Consolidated Balance
Sheets(Amounts in thousands, except per share data)
|
Successor |
|
|
Predecessor |
|
September 30,2021 |
|
December 31,2020 |
|
|
December 31,2020 |
ASSETS |
(Unaudited) |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
143,154 |
|
|
$ |
25,205 |
|
|
|
$ |
— |
|
Restricted cash |
27,750 |
|
|
— |
|
|
|
— |
|
Accounts receivable |
136 |
|
|
— |
|
|
|
— |
|
Prepaid expenses and other
current assets |
8,503 |
|
|
— |
|
|
|
42 |
|
Inventories |
7,579 |
|
|
— |
|
|
|
— |
|
Total current assets |
187,122 |
|
|
25,205 |
|
|
|
42 |
|
Property, plant and equipment,
net |
192,736 |
|
|
— |
|
|
|
131,908 |
|
Intangibles and other assets,
net |
6,124 |
|
|
38 |
|
|
|
— |
|
TOTAL ASSETS |
$ |
385,982 |
|
|
$ |
25,243 |
|
|
|
$ |
131,950 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT) |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
7,757 |
|
|
$ |
1,345 |
|
|
|
$ |
178 |
|
Accrued expenses |
10,386 |
|
|
5,532 |
|
|
|
1,233 |
|
Current portion of land contract
and promissory note |
54,286 |
|
|
— |
|
|
|
— |
|
Total current liabilities |
72,429 |
|
|
6,877 |
|
|
|
1,411 |
|
Convertible promissory notes |
— |
|
|
25,094 |
|
|
|
— |
|
Land contract and promissory note
obligations, net of current portion |
29,800 |
|
|
— |
|
|
|
— |
|
Warrant liabilities |
14,243 |
|
|
— |
|
|
|
— |
|
Pension benefit obligation |
90 |
|
|
— |
|
|
|
109 |
|
Other long-term liabilities |
451 |
|
|
— |
|
|
|
— |
|
Total liabilities |
117,013 |
|
|
31,971 |
|
|
|
1,520 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
Predecessor parent's net
investment |
— |
|
|
— |
|
|
|
130,430 |
|
Preferred stock, $0.0001 par
value; 100 million shares authorized; none issued or
outstanding. |
— |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value;
1 billion shares authorized; 124,027,012 issued and
118,777,012 outstanding at September 30, 2021 and 82,117,288
issued and outstanding at December 31, 2020. |
12 |
|
|
8 |
|
|
|
— |
|
Additional paid-in capital |
306,578 |
|
|
992 |
|
|
|
— |
|
Accumulated deficit |
(37,621 |
) |
|
(7,728 |
) |
|
|
— |
|
Total shareholders' equity
(deficit) |
268,969 |
|
|
(6,728 |
) |
|
|
130,430 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
385,982 |
|
|
$ |
25,243 |
|
|
|
$ |
131,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ContactsMedia:
elms-svc@sardverb.comInvestor Relations:
IR@electriclastmile.com
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