Nikola Corporation Reports First Quarter 2024 Results
- Continued to execute our plan to ramp up hydrogen fuel cell electric trucks (FCEVs) in 2024
- Wholesaled 40 FCEVs in Q1, all designated for end fleets, exceeding high-end of guidance range
- Marked the second quarter of serial production of FCEVs; Program-to-date,
Nikola has wholesaled 75 FCEVs
- Green shoots in new markets like N.Y., meeting the demands of fleet users beyond Calif.
- Expanded HYLA's North American reach. During the quarter, we opened:
- HYLA hydrogen modular refueling stations in
Ontario and near the Port ofLong Beach, Calif. - HYLA's first hydrogen refueling station in
Alberta, Canada to support fleets along the busyEdmonton toCalgary freight corridor
- HYLA hydrogen modular refueling stations in
- Seeing opportunities in constructive green policies
- Completed first delivery of remediated BEV back to customer in Q1
"We continue to move forward rapidly and execute our plans. And please keep that in mind – we are in the execution phase, not the planning or concepting phase," said
Hydrogen Fuel Cell Electric Truck
At the end of Q1, we exceeded the high-end of the guidance range by delivering 40 FCEVs, all designated for end fleets. That makes 75 wholesaled FCEVs in the first two quarters of serial production. We're seeing green shoots with repeat and new fleets, some in new markets such as
Program-to-date, Nikola FCEVs have accumulated over 830,000 miles with an average fuel economy exceeding our target of 7.2 mi/kg. We're doing what it takes to delight prospective and existing customers with the best possible experience.
Energy
Our HYLA team is executing its Hydrogen Highway Plan, and we remain on track. Previously we had committed to nine additional HYLA refueling stations in Calif. by year-end 2024. Now we are expecting to provide nine hydrogen fueling solutions by mid-year 2024 and 14 by year-end 2024. These solutions include modular fuelers and partner stations in Calif., Canada and our home station at our
Constructive Green Policies
We maintained our dominant market share of HVIP vouchers for Class 8 FCEVs, ending the quarter with 362 of 367 or 99% of the unredeemed vouchers that were requested in 2023 through
Battery-Electric Truck
Lastly, we completed the first delivery of a remediated BEV in Q1. We continue to prioritize returning BEVs to customers and dealers and now expect to complete remediation of these units by year-end 2024. Our ability to sell Nikola's on-hand inventory, however, will be dependent upon future battery supply; we now expect to opportunistically sell on-hand inventory for revenue in 2025.
We've also taken this opportunity to "future proof" the BEV 2.0, as it now shares significant software commonality with the battery and operating systems on the FCEV, allowing customers to receive next-generation upgrades seamlessly over-the-air as they are deployed. We've kept our fleet users front and center as we've engineered over-the-air enhancements, including dynamic data gathering for predictive diagnostics, improved truck performance and field issue identification. We've also deployed new Advanced Driver Assistance Systems (ADAS) features to effectively manage powertrain demand in aggressive route conditions such as mountainous driving.
First Quarter Financial Highlights
|
|
Three Months Ended
|
||
(In thousands, except share and per share data) |
|
2024 |
|
2023 |
Trucks produced |
|
43 |
|
63 |
Trucks shipped |
|
40 |
|
31 |
Total revenues |
|
$ 7,497 |
|
$ 10,677 |
Gross profit (loss) |
|
$ (57,575) |
|
$ (22,697) |
Gross margin |
|
(768) % |
|
(213) % |
Loss from operations |
|
$ (145,363) |
|
$ (127,200) |
Net loss from continuing operations |
|
$ (147,722) |
|
$ (145,251) |
Net loss |
|
$ (147,722) |
|
$ (169,094) |
Adjusted EBITDA (1) |
|
$ (104,030) |
|
$ (103,749) |
Net loss from continuing operations per share, basic and diluted |
|
$ (0.11) |
|
$ (0.26) |
Non-GAAP net loss per share, basic and diluted(1) |
|
$ (0.09) |
|
$ (0.22) |
Weighted-average shares outstanding, basic and diluted |
|
1,335,877,351 |
|
549,689,436 |
|
(1) A reconciliation of the non-GAAP versus GAAP information is provided below in the financial statement tables in this press release. |
Webcast and Conference Call Information
Nikola will host a webcast to discuss its first quarter results and business progress at
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
For more information visit our website Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany or X/Twitter @nikolamotor.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to
Use of Non-GAAP Financial Measures
This press release references Adjusted EBITDA 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 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(In thousands, except share and per share data) |
|||
(Unaudited) |
|||
|
|||
|
Three Months Ended
|
||
|
2024 |
|
2023 |
Revenues: |
|
|
|
Truck sales |
$ 7,418 |
|
$ 10,055 |
Service and other |
79 |
|
622 |
Total revenues |
7,497 |
|
10,677 |
Cost of revenues: |
|
|
|
Truck sales |
61,747 |
|
33,020 |
Service and other |
3,325 |
|
354 |
Total cost of revenues |
65,072 |
|
33,374 |
Gross loss |
(57,575) |
|
(22,697) |
Operating expenses: |
|
|
|
Research and development (1) |
39,497 |
|
61,806 |
Selling, general, and administrative (1) |
48,291 |
|
42,697 |
Total operating expenses |
87,788 |
|
104,503 |
Loss from operations |
(145,363) |
|
(127,200) |
Other income (expense): |
|
|
|
Interest expense, net |
(2,278) |
|
(9,833) |
Loss on debt extinguishment |
(784) |
|
— |
Other income, net |
860 |
|
190 |
Loss before income taxes and equity in net loss of affiliates |
(147,565) |
|
(136,843) |
Income tax expense |
— |
|
— |
Loss before equity in net loss of affiliates |
(147,565) |
|
(136,843) |
Equity in net loss of affiliates |
(157) |
|
(8,408) |
Net loss from continuing operations |
(147,722) |
|
(145,251) |
Discontinued operations: |
|
|
|
Loss from discontinued operations |
— |
|
(23,843) |
Net loss from discontinued operations |
— |
|
(23,843) |
Net loss |
$ (147,722) |
|
$ (169,094) |
|
|
|
|
Basic and diluted net loss per share: |
|
|
|
Net loss from continuing operations |
$ (0.11) |
|
$ (0.26) |
Net loss from discontinued operations |
$ — |
|
$ (0.05) |
Net loss |
$ (0.11) |
|
$ (0.31) |
|
|
|
|
Weighted-average shares outstanding, basic and diluted |
1,335,877,351 |
|
549,689,436 |
|
(1) Includes stock-based compensation as follows: |
|
|
Three Months Ended |
||
|
2024 |
|
2023 |
Cost of revenues |
$ 328 |
|
$ 731 |
Research and development |
2,859 |
|
9,041 |
Selling, general, and administrative |
5,599 |
|
14,715 |
Discontinued operations |
— |
|
61 |
Total stock-based compensation expense |
$ 8,786 |
|
$ 24,548 |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(In thousands, except share and per share data) |
|||
(Unaudited) |
|||
|
|||
|
|
|
|
|
2024 |
|
2023 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ 345,637 |
|
$ 464,715 |
Restricted cash and cash equivalents |
1,224 |
|
1,224 |
Accounts receivable, net |
23,865 |
|
17,974 |
Inventory |
61,342 |
|
62,588 |
Prepaid expenses and other current assets |
37,241 |
|
25,911 |
Total current assets |
469,309 |
|
572,412 |
Restricted cash and cash equivalents |
31,386 |
|
28,026 |
Long-term deposits |
9,027 |
|
14,954 |
Property, plant and equipment, net |
484,471 |
|
503,416 |
Intangible assets, net |
84,010 |
|
85,860 |
Investment in affiliate |
56,905 |
|
57,062 |
|
5,238 |
|
5,238 |
Other assets |
11,807 |
|
7,889 |
Total assets |
$ 1,152,153 |
|
$ 1,274,857 |
Liabilities and stockholders' equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ 44,909 |
|
$ 44,133 |
Accrued expenses and other current liabilities |
220,151 |
|
207,022 |
Debt and finance lease liabilities, current |
6,233 |
|
8,950 |
Total current liabilities |
271,293 |
|
260,105 |
Long-term debt and finance lease liabilities, net of current portion |
268,345 |
|
269,279 |
Operating lease liabilities |
5,266 |
|
4,765 |
Other long-term liabilities |
20,974 |
|
21,534 |
Total liabilities |
565,878 |
|
555,683 |
Commitments and contingencies |
|
|
|
Stockholders' equity |
|
|
|
Preferred stock |
— |
|
— |
Common stock |
134 |
|
133 |
Additional paid-in capital |
3,804,974 |
|
3,790,272 |
Accumulated deficit |
(3,218,791) |
|
(3,071,069) |
Accumulated other comprehensive loss |
(42) |
|
(162) |
Total stockholders' equity |
586,275 |
|
719,174 |
Total liabilities and stockholders' equity |
$ 1,152,153 |
|
$ 1,274,857 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(In thousands) |
|||
(Unaudited) |
|||
|
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
Cash flows from operating activities |
|
|
|
Net loss |
$ (147,722) |
|
$ (169,094) |
Less: Loss from discontinued operations |
— |
|
(23,843) |
Loss from continuing operations |
(147,722) |
|
(145,251) |
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
10,596 |
|
6,238 |
Stock-based compensation |
8,786 |
|
24,487 |
Equity in net loss of affiliates |
157 |
|
8,408 |
Revaluation of financial instruments |
826 |
|
(199) |
Inventory write-downs |
20,044 |
|
2,275 |
Non-cash interest expense |
3,625 |
|
10,008 |
Loss on disposal of assets |
2,688 |
|
— |
Other non-cash activity |
2,871 |
|
486 |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable, net |
(5,892) |
|
4,299 |
Inventory |
(17,788) |
|
(5,905) |
Prepaid expenses and other current assets |
(10,297) |
|
(39,711) |
Other assets |
(389) |
|
(1,929) |
Accounts payable, accrued expenses and other current liabilities |
11,819 |
|
(40,092) |
Operating lease liabilities |
(763) |
|
(414) |
Other long-term liabilities |
5,836 |
|
1,278 |
Net cash used in operating activities |
(115,603) |
|
(176,022) |
Cash flows from investing activities |
|
|
|
Purchases and deposits of property, plant and equipment |
(16,458) |
|
(50,517) |
Proceeds from the sale of assets |
21,398 |
|
— |
Net cash provided by (used in) investing activities |
4,940 |
|
(50,517) |
Cash flows from financing activities |
|
|
|
Proceeds from the exercise of stock options |
— |
|
404 |
Proceeds from issuance of shares under the Tumim Purchase Agreements |
— |
|
64,713 |
Proceeds from issuance of common stock under Equity Distribution Agreement, net of commissions paid |
— |
|
30,524 |
Proceeds from issuance of convertible notes, net of discount and issuance costs |
— |
|
25,000 |
Repayment of debt and promissory notes |
(130) |
|
(2,544) |
Payment for Coupon Make-Whole Premium |
(1,747) |
|
— |
Payments on insurance premium financing |
(1,853) |
|
(1,999) |
Payments on finance lease liabilities and financing obligation |
(1,276) |
|
(182) |
Payments for issuance costs |
(49) |
|
— |
Net cash provided by (used in) financing activities |
(5,055) |
|
115,916 |
Net increase (decrease) in cash and cash equivalents, including restricted cash and cash equivalents |
(115,718) |
|
(110,623) |
Cash and cash equivalents, including restricted cash and cash equivalents, beginning of period |
493,965 |
|
313,909 |
Cash and cash equivalents, including restricted cash and cash equivalents, end of period |
$ 378,247 |
|
$ 203,286 |
|
|
|
|
Cash flows from discontinued operations: |
|
|
|
Operating activities |
$ — |
|
$ (3,939) |
Investing activities |
— |
|
(1,772) |
Financing activities |
— |
|
(308) |
Net cash used in discontinued operations |
$ — |
|
$ (6,019) |
Reconciliation of GAAP Financial Metrics to Non-GAAP |
||||
(In thousands, except share and per share data) |
||||
(Unaudited) |
||||
|
||||
Reconciliation of Net Loss from continuing operations to EBITDA and Adjusted EBITDA |
||||
|
||||
|
|
Three Months Ended |
||
|
|
2024 |
|
2023 |
|
(in thousands) |
|||
Net loss from continuing operations |
|
$ (147,722) |
|
$ (145,251) |
Interest expense, net |
|
2,278 |
|
9,833 |
Depreciation and amortization |
|
10,596 |
|
6,238 |
EBITDA |
|
(134,848) |
|
(129,180) |
Stock-based compensation |
|
8,786 |
|
24,487 |
Loss on debt extinguishment |
|
784 |
|
— |
Loss on disposal of assets |
|
2,688 |
|
— |
Equipment purchase cancellation |
|
15,613 |
|
— |
Revaluation of financial instruments |
|
826 |
|
(199) |
Regulatory and legal matters (1) |
|
2,121 |
|
1,143 |
Adjusted EBITDA |
|
$ (104,030) |
|
$ (103,749) |
|
(1)
Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with a short-seller article from |
Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, basic and diluted |
||||
|
||||
|
|
Three Months Ended |
||
|
|
2024 |
|
2023 |
|
(in thousands, except share and per share data) |
|||
Net loss from continuing operations |
|
$ (147,722) |
|
$ (145,251) |
Stock-based compensation |
|
8,786 |
|
24,487 |
Loss on debt extinguishment |
|
784 |
|
— |
Revaluation of financial instruments |
|
826 |
|
(199) |
Loss on disposal of assets |
|
2,688 |
|
— |
Equipment purchase cancellation |
|
15,613 |
|
— |
Regulatory and legal matters (1) |
|
2,121 |
|
1,143 |
Non-GAAP net loss |
|
$ (116,904) |
|
$ (119,820) |
|
|
|
|
|
Non-GAAP net loss per share, basic and diluted |
|
$ (0.09) |
|
$ (0.22) |
|
|
|
|
|
Weighted average shares outstanding, basic and diluted |
|
1,335,877,351 |
|
549,689,436 |
|
(1)
Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with a short-seller article from |
Recognition of Cash flows to Adjusted Free Cash Flow |
||||
|
||||
|
|
Three Months Ended |
||
|
|
2024 |
|
2023 |
|
|
(in thousands) |
||
Most comparable GAAP measure: |
|
|
|
|
Net cash used for operating activities |
|
$ (115,603) |
|
$ (176,022) |
Net cash provided by (used in) investing activities |
|
4,940 |
|
(50,517) |
Net cash provided by (used in) financing activities |
|
(5,055) |
|
115,916 |
|
|
|
|
|
Non-GAAP measure: |
|
|
|
|
Net cash used for operating activities |
|
(115,603) |
|
(176,022) |
Purchases of property, plant and equipment |
|
(16,458) |
|
(50,517) |
Adjusted free cash flow |
|
$ (132,061) |
|
$ (226,539) |
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