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Mar 31, 2020
Workhorse Q1 2020 Earnings Report
Workhorse experienced a decrease in sales but achieved net income due to mark-to-market adjustments and changes in fair value of convertible notes.
Key Takeaways
Workhorse Group reported a decrease in sales for Q1 2020, primarily due to lower truck shipments, but achieved a net income of $4.8 million compared to a net loss in the previous year due to other income and interest income.
Production efforts continued as an “essential” business, with deliveries planned for Q2 2020.
The company reaffirmed its production and delivery target of 300-400 vehicles in 2020.
There is increased interest in patented delivery truck mounted HorseFlyTM drone capabilities.
The company appointed automotive industry veterans to its board of directors.
Workhorse
Workhorse
Forward Guidance
Workhorse reaffirmed its production and delivery target of 300-400 vehicles in 2020 and will be delivering its C-Series vehicles to customers in the second quarter.
Positive Outlook
- Deliveries planned for second quarter of 2020.
- Reaffirmed previous production and delivery target of 300-400 vehicles in 2020.
- Receiving increased interest in patented delivery truck mounted HorseFlyTM drone capabilities from both government and commercial customers.
- Continue working throughout the period as an essential service.
- Preparing a detailed production plan of when vehicles can be deployed into Ryder Systems’ sales channel starting in 2020 and into 2021.
Challenges Ahead
- Limited operations and need to expand in the near future to fulfill product orders.
- Risks associated with obtaining orders and executing upon such orders.
- Potential lack of market acceptance of our products.
- Potential competition.
- Inability to raise additional capital to fund operations and business plan.