LiveWire Group, Inc. Reports 2024 First Quarter Financial Results
“We are pleased with the successful launch of the S2 Mulholland, and with three bikes in market, we are proud that LiveWire is now the #1 on-road electric motorcycle retailer in the
First Quarter 2024 Summary of Results
- Successful launch of S2 Mulholland in March
- Unit sales of 117 electric motorcycles, an increase of 86% over first quarter 2023
-
Consolidated operating loss of
$30.4 million in line with expectations, driven by investment in new motorcycle models and actioned initiatives to reduce EV costs
$ in millions* |
1st quarter |
|||||
2024 |
2023 |
Change |
||||
Revenue |
|
|
|
|
(36 |
%) |
Operating (Loss) |
( |
) |
( |
) |
22 |
% |
Net Loss |
( |
) |
( |
) |
12 |
% |
$ in millions*, except units |
1st quarter |
|||||
2024 |
2023 |
Change |
||||
Electric Motorcycles |
|
|||||
LiveWire (units) |
117 |
|
63 |
|
86 |
% |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
(16 |
%) |
Operating (Loss) |
( |
) |
( |
) |
17 |
% |
$ in millions* |
1st quarter |
|||||
2024 |
2023 |
Change |
||||
STACYC Segment |
|
|
|
|
|
|
Revenue |
|
|
|
|
(41 |
%) |
Operating (Loss) |
( |
) |
( |
) |
925 |
% |
*Amounts may not add or recalculate due to rounding |
The Company’s consolidated net loss was
- Electric Motorcycles – focused on the sale of electric motorcycles and related products
- STACYC – focused on the sale of electric balance bikes for kids and related products
Electric Motorcycles
Electric Motorcycles revenue decreased in the first quarter of 2024 compared to the prior year period, despite higher unit sales in the quarter. The lower revenue was due primarily to product mix and a one-time adjustment related to a change in our retail partner strategy. Selling, engineering and administrative expenses remained relatively flat compared to the prior year. An increased operating loss of
STACYC
As expected, STACYC revenue and operating income were down compared to same quarter 2023 primarily due to a reduction in third party branded distributor volumes.
2024 Financial Outlook
For the full year 2024, the Company continues to expect:
-
Electric Motorcycle sales of 1,000 to 1,500 revenue units
For the full year 2024, LiveWire is revising its operating loss guidance and now expects:
-
An improved operating loss of
$105 to$115 million , from previous guidance of an operating loss of$115 to$125 million
Webcast
The public is invited to attend an audio webcast from
About LiveWire
LiveWire has a dedicated focus on the electric motorcycle sector. LiveWire’s majority shareholder is Harley-Davidson, Inc. LiveWire comes from the lineage of Harley-Davidson and is capitalizing on a decade of its learnings in the EV sector. With a dedicated focus on EV, LiveWire plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling. www.livewire.com
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Words or phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will” and “would,” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including the risks, uncertainties and assumptions described in prior public filings titled “Risk Factors.” These forward-looking statements are subject to numerous risks, including, without limitation, the following: our history of losses and expectation to incur significant expenses and continuing losses for the foreseeable future; our limited operating history, the rollout of our business and the timing of expected business milestones, including our ability to develop and manufacture electric vehicles of sufficient quality and appeal to customers on schedule and on a large scale; our financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, including our ability to effectively execute the Company’s relocation and streamlined headcount plan within expected costs and time and our ability to realize the expected savings in 2024 and on an ongoing annual basis; our ability to attract and retain a large number of customers; our future capital requirements and sources and uses of cash; our ability to obtain funding for our operations and manage costs; challenges we face as a pioneer into the highly-competitive and rapidly evolving electric vehicle industry; our operational and financial risks if we fail to effectively and appropriately separate the LiveWire business from the H-D business; H-D making decisions for its overall benefit that could negatively impact our overall business; our relationship with H-D and its impact on our other business relationships; our ability to leverage contract manufacturers, including
Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
|||||||
|
|
|
|
||||
|
|
|
|||||
|
Three months ended |
||||||
|
|
|
|
||||
Revenue, net |
$ |
4,978 |
|
|
$ |
7,762 |
|
Costs and expenses: |
|
|
|
||||
Cost of goods sold |
|
9,105 |
|
|
|
6,498 |
|
Selling, administrative and engineering expense |
|
26,295 |
|
|
|
26,171 |
|
Total operating costs and expenses |
|
35,400 |
|
|
|
32,669 |
|
Operating loss |
|
(30,422 |
) |
|
|
(24,907 |
) |
Interest income |
|
2,016 |
|
|
|
2,692 |
|
Change in fair value of warrant liabilities |
|
4,758 |
|
|
|
1,068 |
|
Loss before income taxes |
|
(23,648 |
) |
|
|
(21,147 |
) |
Income tax benefit |
|
(4 |
) |
|
|
— |
|
Net loss |
$ |
(23,644 |
) |
|
$ |
(21,147 |
) |
|
|
|
|
||||
Net loss per share, basic and diluted |
$ |
(0.12 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
||||
Weighted-average shares, basic and diluted |
|
203,100 |
|
|
|
202,404 |
|
Consolidated Balance Sheets (In thousands) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
141,033 |
|
|
$ |
167,904 |
|
Accounts receivable, net |
|
2,086 |
|
|
|
4,295 |
|
Accounts receivable from related party |
|
1,051 |
|
|
|
3,402 |
|
Inventories, net |
|
35,105 |
|
|
|
32,122 |
|
Other current assets |
|
3,129 |
|
|
|
3,004 |
|
Total current assets |
|
182,404 |
|
|
|
210,727 |
|
Property, plant and equipment, net |
|
37,718 |
|
|
|
37,682 |
|
|
|
8,327 |
|
|
|
8,327 |
|
Deferred tax assets |
|
11 |
|
|
|
4 |
|
Lease assets |
|
1,527 |
|
|
|
1,868 |
|
Intangible assets, net |
|
1,249 |
|
|
|
1,347 |
|
Other long-term assets |
|
5,852 |
|
|
|
6,192 |
|
Total assets |
$ |
237,088 |
|
|
$ |
266,147 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,770 |
|
|
$ |
3,554 |
|
Accounts payable to related party |
|
25,687 |
|
|
|
20,371 |
|
Accrued liabilities |
|
15,762 |
|
|
|
21,189 |
|
Current portion of lease liabilities |
|
914 |
|
|
|
1,152 |
|
Total current liabilities |
|
44,133 |
|
|
|
46,266 |
|
Long-term portion of lease liabilities |
|
677 |
|
|
|
792 |
|
Deferred tax liabilities |
|
93 |
|
|
|
93 |
|
Warrant liabilities |
|
7,561 |
|
|
|
12,319 |
|
Other long-term liabilities |
|
847 |
|
|
|
814 |
|
Total liabilities |
|
53,311 |
|
|
|
60,284 |
|
Shareholders' equity: |
|
|
|
||||
Preferred Stock |
|
— |
|
|
|
— |
|
Common Stock |
|
20 |
|
|
|
20 |
|
Treasury Stock |
|
(2,675 |
) |
|
|
(1,969 |
) |
Additional paid-in-capital |
|
342,065 |
|
|
|
339,783 |
|
Accumulated deficit |
|
(155,632 |
) |
|
|
(131,988 |
) |
Accumulated other comprehensive income |
|
(1 |
) |
|
|
17 |
|
Total shareholders' equity |
|
183,777 |
|
|
|
205,863 |
|
Total liabilities and shareholders' equity |
$ |
237,088 |
|
|
$ |
266,147 |
Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
|
|
|
||||
|
Three months ended |
||||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(23,644 |
) |
|
$ |
(21,147 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
||||
Depreciation and amortization |
|
2,326 |
|
|
|
667 |
|
Change in fair value of warrant liabilities |
|
(4,758 |
) |
|
|
(1,068 |
) |
Stock compensation expense |
|
2,282 |
|
|
|
1,824 |
|
Provision for doubtful accounts |
|
3 |
|
|
|
39 |
|
Deferred income taxes |
|
(7 |
) |
|
|
— |
|
Inventory write-down |
|
2,522 |
|
|
|
673 |
|
Cloud computing arrangements development costs |
|
— |
|
|
|
(967 |
) |
Other, net |
|
4 |
|
|
|
(779 |
) |
Changes in current assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
2,206 |
|
|
|
1,356 |
|
Accounts receivable from related party |
|
2,351 |
|
|
|
(317 |
) |
Inventories |
|
(5,505 |
) |
|
|
(2,560 |
) |
Other current assets |
|
24 |
|
|
|
731 |
|
Accounts payable and accrued liabilities |
|
(6,046 |
) |
|
|
(4,894 |
) |
Accounts payable to related party |
|
5,316 |
|
|
|
1,892 |
|
Net cash used by operating activities |
|
(22,926 |
) |
|
|
(24,550 |
) |
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(3,239 |
) |
|
|
(4,648 |
) |
Net cash used by investing activities |
|
(3,239 |
) |
|
|
(4,648 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repurchase of common stock |
|
(706 |
) |
|
|
— |
|
Net cash used by financing activities |
|
(706 |
) |
|
|
— |
|
Net decrease in cash and cash equivalents |
$ |
(26,871 |
) |
|
$ |
(29,198 |
) |
Cash and cash equivalents: |
|
|
|
||||
Cash and cash equivalents—beginning of period |
$ |
167,904 |
|
|
$ |
265,240 |
|
Net decrease in cash and cash equivalents |
|
(26,871 |
) |
|
|
(29,198 |
) |
Cash and cash equivalents—end of period |
$ |
141,033 |
|
|
$ |
236,042 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425210152/en/
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