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Sep 30, 2020
Workhorse Q3 2020 Earnings Report
Workhorse reported a net loss of $84.1 million due to increased interest expense but sales increased to $565,000.
Key Takeaways
Workhorse Group Inc. reported third-quarter results with increased sales of $565,000 compared to $4,000 in the same period last year. The company's net loss was $84.1 million, primarily due to a significant increase in interest expense. Despite production delays, Workhorse aims to produce approximately 1,800 units in 2021.
Set a production volume target of 1,800 vehicles for 2021.
Received an order for 500 C-1000 trucks from Pritchard Auto Company, financed by Hitachi Capital America.
Improved cash position to over $260 million through various financings.
Strategic partner Lordstown Motor Corporation completed its merger and Workhorse maintained its 10% ownership stake.
Workhorse
Workhorse
Forward Guidance
Workhorse anticipates producing approximately 1,800 units in 2021, but faces potential challenges from battery supply and COVID-19 impacts.
Positive Outlook
- Supplemental battery volume additions expected in Q1 2021.
- Strategic partnership with Hitachi to optimize manufacturing and supply chain.
- Dealer network development with Hitachi Capital America to support sales and financing.
- Positive dealer survey results regarding the EV delivery truck market and Workhorse's prospects.
- Expects to produce approximately 1,800 units in 2021 when COVID conditions improve
Challenges Ahead
- Inability of primary battery supplier to meet volumes due to capacity issues and COVID-related slowdowns.
- COVID-19 impact with a significant portion of production staff out with the virus or quarantined.
- Modified assembly process and limited third-party production support due to COVID-19.
- Production delays in Q4 due to battery supply and COVID-19 issues.
- Uncertainty about the full impact of COVID-19 in 2021.