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Nikola Corporation Reports Second Quarter 2022 Results

  • Produced 50 Nikola Tre BEVs in Coolidge, Arizona, and delivered 48 to dealers
  • Reported revenues of $18.1 million and adjusted net loss per share of $0.25
  • Cash & Restricted Cash of $529.2 million and $312.5 million remaining ELOC commitment totaling $841.8 million in total liquidity at the end of Q2, up from $794.0 million in Q1
  • Announced station progress in California in the cities of Ontario, Colton, and a location servicing the Port of Long Beach
  • Stockholders approved proposal 2 increasing authorized shares from 600 million to 800 million

PHOENIX, Aug. 4, 2022 /PRNewswire/ — Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation solutions, today reported financial results for the quarter ended June 30, 2022.

“Our momentum continued during the second quarter as we began delivering production vehicles to dealers and recognizing revenue from the sale of our Nikola Tre BEVs,” said Mark Russell, Nikola’s Chief Executive Officer. “We are committed to executing on our second half milestones.”

Financial Overview


Q2 2022 Actual 

Q2 2022 Guidance 


Production

Deliveries

Production

Deliveries

Tre BEV

50

48

50 – 60

50 – 60

MCT*

NA

4

NA

NA

Total

50

52

50 – 60

50 – 60


We reported $18.1 million in revenues on deliveries of 48 Tre BEVs and four (4) Mobile Charging Trailers (MCT) in Q2. Two (2) additional Tre BEVs were delivered in the first week of July, which will be reported as part of Q3 revenues. We increased our total liquidity to $841.8 million in Q2 from $794.0 million at the end of Q1. As mentioned in May, we also successfully raised $200 million in a private placement of convertible notes during the quarter.

Nikola Tre BEV Update

During the second quarter, we produced 50 Nikola Tre BEVs and delivered 48 of those to dealers. We also continued pilot testing with a number of fleets to help facilitate additional orders and build our backlog. Pilots completed / ongoing include:

  • TTSI (Complete) – 106 days / 11,752 miles / 93% uptime
  • Univar Solutions (Complete) – 14 days / 858 miles / 100% uptime
  • Covenant Logistics (Extended & Ongoing) – 111 days / 3,423 miles / 94% uptime
  • RoadOne / IKEA (Complete) – 36 days / 3,285 miles / 91%
  • Benore Logistics Systems (Complete) – 30 days / 2,296 miles / 100% uptime

*MCTs are merchandised goods sourced from external suppliers and therefore are not a part of our manufacturing costs.


Nikola Tre FCEV Program Update

In the second quarter, we began Tre FCEV alpha pilot testing with TTSI in Southern California. As of today, the trucks have accumulated over 3,800 miles. We expect to begin FCEV pilot testing with Walmart in Southern California on August 22.

During the second quarter, we began building the first Tre FCEV betas. The first batch of betas are scheduled to be complete by the end of August. We expect to build two additional batches of Tre FCEV betas by the end of the fourth quarter. Beta trucks incorporate learnings from the alpha trials and will be used for engineering and product development.

Coolidge, Arizona Manufacturing Facility Update

We are ramping up production capacity in Coolidge, Arizona. We expect to increase our throughput to five units per shift by November of this year. Phase 2 expansion is underway and on track to be completed by Q1 2023.

H2 Dispensing Station Updates

On August 3, we announced we had made significant progress in partnership with TravelCenters of America on the first hydrogen dispensing station in Ontario, California. We have executed the definitive agreement, agreed on the station design, and have ordered key equipment.

We also executed a land lease in Colton, California to build a greenfield hydrogen dispensing station, and entered into an agreement to lease a parcel servicing the Port of Long Beach to build a greenfield hydrogen dispensing station. We anticipate the stations will be complete by Q4 2023.

Nikola – IVECO European JV

In June, together with IVECO, we agreed to expand our 50/50 European JV to include engineering and product development. During the second quarter, the JV entity began building the first EU Tre 4×2 BEV alphas. Production for EU Tre BEV is expected to commence in the second half of 2023. The JV also started building EU Tre FCEV betas, which are expected to begin production in the first half of 2024.

Second Quarter Financial Highlights

(In thousands, except share and per share data)

Q2 2022


Q2 2021


Q2 2022 YTD


Q2 2021 YTD

Gross loss

$        (29,257)


$                 —


$        (28,826)


$                 —

Loss from operations

$      (172,231)


$      (138,398)


$      (323,540)


$      (258,988)

Net loss

$      (172,997)


$      (143,231)


$      (325,938)


$      (263,455)

Adjusted EBITDA (1)

$        (94,345)


$        (73,906)


$      (173,498)


$      (127,340)

Net loss per share, basic

$            (0.41)


$            (0.36)


$            (0.78)


$            (0.67)

Net loss per share, diluted

$            (0.41)


$            (0.36)


$            (0.78)


$            (0.67)

Non-GAAP net loss per share, basic(1)

$            (0.25)


$            (0.20)


$            (0.45)


$            (0.34)

Non-GAAP net loss per share, diluted(1)

$            (0.25)


$            (0.20)


$            (0.45)


$            (0.34)

Weighted-average shares outstanding, basic

425,323,391


394,577,711


420,266,181


393,390,377

Weighted-average shares outstanding, diluted

425,323,391


394,577,711


420,266,181


393,390,377

(1) A reconciliation of the non-GAAP versus GAAP information is provided below in the financial statement tables in this press release.


Business Outlook

We remain on track to achieve the following milestones in 2022:

  • Deliver 300 to 500 production Tre BEV trucks
  • Successful FCEV alpha pilot testing with Anheuser-Busch and TTSI
  • Build, validate and test Tre FCEV beta trucks
  • Announce location, break ground, and commence construction of the first hydrogen production hub in Arizona
  • Announce two or more dispensing station partners in California

Webcast and Conference Call Information

Nikola will host a webcast to discuss its second-quarter results at 6:30 a.m. Pacific Time (9:30 a.m. Eastern Time) on August 4, 2022. To access the webcast, parties in the United States should follow this link: https://www.webcast-eqs.com/register/nikola20220804/en.

The live audio webcast, along with supplemental information, will be accessible on the Company’s Investor Relations website at https://nikolamotor.com/investors/news?active=events. A recording of the webcast will also be available following the earnings call.

About Nikola Corporation

Nikola Corporation is globally transforming the transportation industry. As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today. Founded in 2015, Nikola Corporation is headquartered in Phoenix, Arizona. For more information, visit www.nikolamotor.com or Twitter @nikolamotor.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the “Company”), including statements relating to the Company’s future performance and milestones; expected timing of manufacturing facility expansion and production capacity; expectations regarding hydrogen dispensing stations, our joint venture, and our pilot programs; timing of completion of testing, production, as well as other milestones; the Company’s business outlook; and terms and potential benefits of  planned collaborations with  strategic partners. These forward-looking statements generally are identified by words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: design and manufacturing changes and delays, including global shortages in parts and materials; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of legal, regulatory and judicial proceedings to which the Company is, or may become a party; demand for and customer acceptance of the Company’s trucks; the results of customer pilot testing; the execution and terms of definitive agreements; risks associated with development and testing of fuel-cell power modules and hydrogen storage systems; risks related to the rollout of the Company’s business and the timing of expected business milestones; the effects of competition on the Company’s future business; the availability of and need for capital; the impact of our recently-announced planned acquisition; and the factors, risks and uncertainties regarding the Company’s business described in the “Risk Factors” section of the Company’s quarterly  report on Form 10-Q for the quarter  ended March 31, 2022 filed with the SEC, in addition to the Company’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause the Company’s actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Measures

This press release references Adjusted EBITDA, non-GAAP net loss, and non-GAAP net loss per share, basic and diluted, all of which are non-GAAP financial measures and are presented as supplemental measures of the Company’s performance. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items determined by the Company. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items determined by the Company. Non-GAAP net loss per share basic and diluted is defined as non-GAAP net loss divided by weighted average basic and diluted shares outstanding. These non-GAAP measures are not substitutes for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

The Company believes that presenting these non-GAAP measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)



Three Months Ended June 30,


 Six Months Ended June 30,


2022


2021


2022


2021

Revenues:








Truck sales

$              17,383


$                       —


$              17,383


$                       —

Service and other

751



2,638


Total revenues

18,134



20,021


Cost of revenues:








Truck sales

46,781



46,781


Service and other

610



2,066


Total cost of revenues

47,391



48,847


Gross loss

(29,257)



(28,826)


Operating expenses:








Research and development(1)

63,106


67,726


137,663


122,889

Selling, general, and administrative(1)

79,868


70,672


157,051


136,099

Total operating expenses

142,974


138,398


294,714


258,988

Loss from operations

(172,231)


(138,398)


(323,540)


(258,988)

Other income (expense):








Interest expense, net

(2,808)


(92)


(3,019)


(101)

Revaluation of warrant liability

3,341


(2,511)


2,907


(1,560)

Other income (expense), net

(27)


(1,102)


1,806


(883)

Loss before income taxes and equity in net loss of affiliates

(171,725)


(142,103)


(321,846)


(261,532)

Income tax expense

2


2


2


3

Loss before equity in net loss of affiliates

(171,727)


(142,105)


(321,848)


(261,535)

Equity in net loss of affiliates

(1,270)


(1,126)


(4,090)


(1,920)

Net loss

$           (172,997)


$           (143,231)


$           (325,938)


$           (263,455)









Net loss per share:








Basic

$                  (0.41)


$                  (0.36)


$                  (0.78)


$                  (0.67)

Diluted

$                  (0.41)


$                  (0.36)


$                  (0.78)


$                  (0.67)

Weighted average shares outstanding:








Basic

425,323,391


394,577,711


420,266,181


393,390,377

Diluted

425,323,391


394,577,711


420,266,181


393,390,377

 

(1) Includes stock-based compensation as follows:



Three Months Ended June 30,


Six Months Ended June 30,


2022


2021


2022


2021

Research and development

$                9,300


$              10,228


$              18,007


$              20,550

Selling, general, and administrative

45,541


42,442


90,362


82,386

Total stock-based compensation expense

$              54,841


$              52,670


$            108,369


$            102,936

 

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)



June 30,


December 31,


2022


2021


(Unaudited)



Assets




Current assets




Cash and cash equivalents

$           441,765


$            497,241

Accounts receivable, net

16,726


Inventory

52,105


11,597

Prepaid expenses and other current assets

34,802


15,891

Total current assets

545,398


524,729

Restricted cash and cash equivalents

87,459


25,000

Long-term deposits

37,740


27,620

Property, plant and equipment, net

311,732


244,377

Intangible assets, net

95,395


97,181

Investment in affiliates

79,726


61,778

Goodwill

5,238


5,238

Other assets

4,287


3,896

Total assets

$        1,166,975


$            989,819

Liabilities and stockholders’ equity




Current liabilities




Accounts payable

$             87,479


$              86,982

Accrued expenses and other current liabilities

156,610


93,487

Debt and finance lease liabilities, current

9,518


140

Total current liabilities

253,607


180,609

Long-term debt and finance lease liabilities, net of current portion

273,309


25,047

Operating lease liabilities

2,349


2,263

Warrant liability

1,377


4,284

Other long-term liabilities

37,070


84,033

Deferred tax liabilities, net

12


11

Total liabilities

567,724


296,247

Commitments and contingencies (Note 9)




Stockholders’ equity




Preferred stock


Common stock

43


41

Additional paid-in capital

2,176,945


1,944,341

Accumulated deficit

(1,576,550)


(1,250,612)

Accumulated other comprehensive loss

(1,187)


(198)

Total stockholders’ equity

599,251


693,572

Total liabilities and stockholders’ equity

$        1,166,975


$            989,819

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Six Months Ended June 30,


2022


2021

Cash flows from operating activities




Net loss

$           (325,938)


$           (263,455)

Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

9,676


3,710

Stock-based compensation

108,369


102,936

Non-cash in-kind services


27,723

Equity in net loss of affiliates

4,090


1,920

Revaluation of financial instruments

192


1,560

Issuance of common stock for commitment shares


2,625

Inventory write-downs

10,890


Non-cash interest expense

2,457


Other non-cash activity

273


1,010

Changes in operating assets and liabilities:




Accounts receivable, net

(16,726)


Inventory

(60,468)


(2,267)

Prepaid expenses and other current assets

(12,631)


(4,024)

Accounts payable, accrued expenses and other current liabilities

15,395


9,535

Long-term deposits

(8,281)


(7,247)

Other assets

(608)


Operating lease liabilities

(277)


Other long-term liabilities

(224)


Net cash used in operating activities

(273,811)


(125,974)

Cash flows from investing activities




Purchases and deposits of property, plant and equipment

(67,316)


(64,787)

Investments in affiliates

(23,027)


(25,000)

Proceeds from sale of equipment


200

Net cash used in investing activities

(90,343)


(89,587)

Cash flows from financing activities




Proceeds from the exercise of stock options

565


3,839

Proceeds from issuance of shares under the Tumim Purchase Agreements

123,672


Proceeds from issuance of Convertible Notes, net of discount and issuance costs

183,510


Proceeds from issuance of Collateralized Promissory Note

50,000


Proceeds from issuance of financing obligation, net of issuance costs

38,582


Repayment of Promissory Note

(25,000)


(4,100)

Payments on finance lease liabilities and financing obligation

(192)


(518)

Payments for issuance costs


(244)

Net cash provided by (used in) financing activities

371,137


(1,023)

Net increase (decrease) in cash and cash equivalents, including restricted cash

6,983


(216,584)

Cash and cash equivalents, including restricted cash, beginning of period

522,241


849,278

Cash and cash equivalents, including restricted cash, end of period

$            529,224


$            632,694

 

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except share and per share data)

(Unaudited)


Reconciliation of Net Loss to EBITDA and Adjusted EBITDA




Three Months Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021

Net loss


$           (172,997)


$           (143,231)


$           (325,938)


$           (263,455)

Interest expense, net


2,808


92


3,019


101

Income tax expense


2


2


2


3

Depreciation and amortization


6,565


1,905


9,676


3,710

EBITDA


(163,622)


(141,232)


(313,241)


(259,641)

Stock-based compensation


54,841


52,670


108,369


102,936

Revaluation of financial instruments


196


2,511


192


1,560

Equity in net loss of affiliates


1,270


1,126


4,090


1,920

Regulatory and legal matters (1)


12,970


11,019


27,092


25,885

Adjusted EBITDA


$             (94,345)


$             (73,906)


$           (173,498)


$           (127,340)

(1) Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with the short-seller article from September 2020, and investigations and litigation related thereto.

 

Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, basic and diluted




Three Months Ended June 30,


Six Months Ended June 30,



2022


2021


2022


2021

Net loss


$           (172,997)


$           (143,231)


$           (325,938)


$           (263,455)

Stock-based compensation


54,841


52,670


108,369


102,936

Revaluation of financial instruments


196


2,511


192


1,560

Regulatory and legal matters(1)


12,970


11,019


27,092


25,885

Non-GAAP net loss


$           (104,990)


$             (77,031)


$           (190,285)


$           (133,074)

Non-GAAP net loss per share:









Basic


$                  (0.25)


$                  (0.20)


$                  (0.45)


$                  (0.34)

Diluted


$                  (0.25)


$                  (0.20)


$                  (0.45)


$                  (0.34)

Weighted average shares outstanding:









Basic


425,323,391


394,577,711


420,266,181


393,390,377

Diluted


425,323,391


394,577,711


420,266,181


393,390,377

(1) Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with the short-seller article from September 2020, and investigations and litigation related thereto.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/nikola-corporation-reports-second-quarter-2022-results-301599821.html

SOURCE Nikola Corporation

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