Sep 30, 2022

Workhorse Q3 2022 Earnings Report

Financial results reported for the third quarter ended September 30, 2022.

Key Takeaways

Workhorse Group reported a net sales of $1.5 million for the third quarter of 2022, compared to $(0.6) million in the same period last year. The net loss was $35.4 million compared to net loss of $81.1 million in the same period last year. The company had approximately $120 million in cash and cash equivalents as of September 30, 2022.

Workhorse built and sold first Class 4 vehicles during the quarter.

The company is renovating facilities for higher production levels in 2023.

Workhorse launched a new business platform, ‘Stables & Stalls’ to address the unmet needs of small fleet operators making the transition to electric vehicles.

Company reaffirms its revenue guidance and expects to generate between $15-25 million in revenue for calendar year 2022.

Total Revenue
$1.55M
Previous year: -$577K
-368.6%
EPS
-$4.4
Previous year: -$15.4
-71.4%
Gross Profit
-$7.97M
Previous year: -$12.1M
-34.3%
Cash and Equivalents
$120M
Previous year: $230M
-47.9%
Free Cash Flow
-$14.6M
Previous year: -$29.3M
-50.3%
Total Assets
$202M
Previous year: $341M
-40.8%

Workhorse

Workhorse

Workhorse Revenue by Segment

Forward Guidance

Workhorse is reaffirming its revenue guidance and expects to generate between $15-25 million in revenue for calendar year 2022, while tightening the range of vehicles expected to be manufactured and sold to between 100-200.

Positive Outlook

  • Prudently investing in people, product portfolios, facilities, and operations as we ramp up production at both our Commercial Vehicles and Aerospace operations.
  • Further building out sales team
  • Further building out aftermarket infrastructure and capabilities
  • Launching the Stables & Stalls initiative.
  • On track to achieve our outlook for 2022 and look forward to delivering enhanced value to our customers and shareholders

Challenges Ahead

  • Ability to develop and manufacture new product portfolio, including the W750, W56 and W34 platforms
  • Ability to attract and retain customers for existing and new products
  • Risks associated with obtaining orders and executing upon such orders
  • Supply chain disruptions, including constraints on steel, semiconductors and other material inputs and resulting cost increases
  • Inability to raise additional capital to fund operations and business plan