- Pre-order1 book exceeds three thousand mark with
3,054 pre-orders received as of June 30,
2022, marking a 30% growth compared to 2,356 units as of
December 31, 2021.
- Completed 21 Snowmobile deliveries during the second
quarter of 2022, with the pioneering production run yielding a
total of 28 snowmobiles sold to consumers and commercial fleet
operators in Canada and
the United States.
- Initial Orca™ production run initiated during the
second quarter.
- Taiga recognized for its innovation within powersports and
named overall North American winner in Fast Company's 2022 World
Changing Ideas Awards.
MONTREAL, Aug. 15,
2022 /CNW/ - Taiga Motors Corporation (TSX:
TAIG) ("Taiga" or the "Company"), a
leading electric off-road vehicle manufacturer, today reported its
financial and operating results for the Second Quarter 2022 ending
June 30, 2022.
Management Commentary
"Today, Taiga's mission has never been clearer. During the second
quarter, we delivered an additional 21 electric snowmobiles to
consumers and commercial fleet operators in Canada and the
United States. These units were the result of our first
short production run, which serves as a springboard for ramping up
future production runs. Witnessing these units leave our
manufacturing facility and hearing stellar feedback from the proud
new owners solidifies our belief in the technological advancements
Taiga is bringing to the powersports industry that truly enable
sustainable outdoor work and exploration." said Samuel Bruneau, CEO of Taiga.
"The adoption of our revolutionary Nomad snowmobiles into the
fleet of Société des établissements de plein air du Québec, also
known as Sépaq, the agency of the Government of Québec that manages
parks and wildlife reserves, is a prime example of Taiga enabling
fleet operators to achieve their sustainability ambitions. We
delivered to multiple fleet operators, and we've already seen some
of these customers add to their existing orders, which is a
testament to our fully electric snowmobile."
"We also received international recognition for our electric
powertrain by being named overall North American winner in Fast
Company's 2022 World Changing Ideas Awards. This award serves as
evidence of the progress we have made over the past six years
toward changing how people connect with the natural world through
our industry-leading electric snowmobiles and personal
watercrafts."
After the initial snowmobile production run, Taiga transitioned
to manufacturing its personal watercraft, the Orca, during the
second quarter. Orca deliveries initiated on July 11, 2022.
Taiga remains focused on three key areas of the business, which
include ramping up production and deliveries, building a culture of
high performance, and increasing its brand awareness. The future of
off-road is electric, and Taiga is committed to investing in and
manufacturing the next generation of off-road vehicles to
accelerate no-compromise access to the outdoors.
Second Quarter Financial Highlights (All amounts in
Canadian dollars unless otherwise indicated)
- Revenue of $399,525 recorded
during the second quarter of 2022. Taiga reported its initial
revenue of $141,461 during the first
quarter of 2022.
- Cash and cash equivalents of $52.4
million as at June 30, 2022,
compared to $71.1 million as at
March 31, 2022.
- Research & Development (R&D) expense (net of tax
credits) increased to $1.6 million
from $1.4 million compared to the
second quarter of 2021.
- General & Administration (G&A) expense increased to
$4.6 million from $2.3 million compared to the second quarter of
2021.
- Sales & Marketing (S&M) expense increased to
$1.1 million from $0.8 million compared to the second quarter of
2021.
- Net loss before other expenses for the period was $11.1 million compared to $4.5 million in the second quarter of 2021.
Second Quarter Operational Updates
- Taiga sold 21 snowmobile units in the second quarter of 2022.
Deliveries initiated on March 18,
2022, with 28 Nomad™ snowmobiles sold during the
initial snowmobile production run.
- Taiga's production line shifted over to the Orca personal
watercraft during the second quarter. Deliveries initiated on
July 11, 2022.
- The Orca™ personal watercraft received the National Marine
Manufacturers Association (NMMA) safety certification on
May 3, 2022, and Transport Canada has
processed its Declaration of Conformity for Small Vessels
Compliance on May 11, 2022. Taiga is
the first manufacturer of electric PWCs to obtain NMMA's
certification.
- Launched the Gear Shop, an online store which offers Taiga
branded seasonal apparel and gear to the public through our main
webpage.
- Headcount at 231 full time employees at the end of the second
quarter of 2022, with approximately half the work force employed in
engineering.
Outlook
This year, production continues to remain limited by various
factors, such as, supply chain pressures, availability of raw
materials and other components, manufacturing process optimization
and volume related cost efficiencies. Taiga has invested in its
supply chain in order to de-risk certain key components. As a
result, it is now in a position to progressively ramp up its weekly
production later in the third quarter of 2022 with the expectation
of delivering 2,500-3,500 units for 2023. The current Orca
production is expected to extend into the fourth quarter of
2022.
To support Taiga's growth and its various initiatives,
management is committed to secure additional sources of funds.
Taiga cannot be certain that additional funds would be available to
it on favorable terms when required, or at all. See
"Forward-Looking Statements" below and "Business Risks" sections of
the accompanying second quarter 2022 MD&A.
Conference Call
Taiga management will hold a conference call today (August 15, 2022) at 9:00
a.m. Eastern time (6:00 a.m. Pacific
time) to discuss these results.
Toll-Free Dial-In: +1 855-658-2585
International Dial-In: +1 514-375-0364
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of
Taiga's website.
A telephonic replay of the conference call will be available
after 12:00 p.m. Eastern time on the
same day through August 22, 2022.
Toll-free replay number: +1 800-319-6413
International replay number: +1 604-638-9010
Replay ID: 9259
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the powersports
landscape with breakthrough electric off-road vehicles. Through a
clean-sheet engineering approach, Taiga has pushed the frontiers of
electric technology to achieve extreme power-to-weight ratios and
thermal specifications required to outperform comparable
high-performance combustion powersports vehicles. The first models
released include a lineup of electric snowmobiles and personal
watercraft to deliver on a rapidly growing demand from recreational
and commercial customers who are seeking better ways to explore the
great outdoors without compromise. For more information, visit
www.taigamotors.com.
Forward-Looking Statements
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation. Such
forward-looking information includes, but is not limited to,
information with respect to our objectives and the strategies to
achieve these objectives, the expected operations, financial
results and condition of the Company, expectations regarding market
trends, overall market growth rates and the Company's growth rates,
the Company's future objectives and strategies to achieve those
objectives, including, without limitation, organic growth and
future acquisitions, expected timelines for achieving mass
production capabilities, the ramp-up of its current facility and
development of its second facility, the anticipated performance of
the charging network, the ability to roll out additional off-road
charging stations within the anticipated timeframe and the
associated manufacturing benefits in respect thereof, including
increased capacity as well as information with respect to our
beliefs, plans, expectations, anticipations, estimates and
intentions.
This forward-looking information is identified by the use of
terms and phrases such as "may", "would", "should", "could",
"expect", "intend", "estimate", "anticipate", "plan", "foresee",
"believe", and "continue", as well as the negative of these terms
and similar terminology, including references to assumptions,
although not all forward-looking information contains these terms
and phrases. Forward-looking information is provided for the
purposes of assisting the reader in understanding the Company and
its business, operations, prospects and risks at a point in time in
the context of historical and possible future developments and
therefore the reader is cautioned that such information may not be
appropriate for other purposes.
We draw your attention to the "Key Factors Affecting Taiga's
Performance" section of the Company's management's
discussion and analysis for the three-month periods ended
June 30, 2022, and 2021 and to
note 2 of our interim condensed consolidated financial statements
indicate the existence of material uncertainty that may cast
significant doubt on the Company's ability to continue as a going
concern. The Company's ability to continue as a going concern for
the next twelve months involves significant judgment and is
dependent on, among other things, its ability to obtain necessary
financing, either through a combination of public or private equity
or debt financing or other sources. Management is currently seeking
potential sources of financing. While the Company has been
successful in securing financing in the past and believes it will
be able to obtain sufficient funds in the future and ultimately
achieve profitability and positive cash flows from operations,
raising additional funds is dependent on a number of factors
outside the Company's control, as such there is no assurance that
it will be able to do so in the future.
Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond our control, which could cause actual
results to differ materially from those that are disclosed in, or
implied by, such forward-looking information. These risks and
uncertainties include, but are not limited to, the effective
further supply chain disruptions, and the impact of such
disruptions on ability to fulfil orders, pre-orders for the
Company's vehicles being cancelled and those described in the
Company's management's discussion and analysis for the three month
periods ended June 30, 2022, and
2021, and under the "Risk Factors" section of the Company's annual
information form filed on March 28,
2022 on the Company's SEDAR profile at sedar.com.
Forward-looking statements reflect management's current
beliefs, expectations and assumptions and are based on information
currently available to management. Readers are cautioned not to
place undue reliance on forward-looking statements, as there can be
no assurance that the future circumstances, outcomes or results
anticipated or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve known and unknown risks and
uncertainties and other factors that could cause actual results to
differ materially from those contemplated by such
statements.
All of the forward-looking information contained in this
press release is qualified by the foregoing cautionary statements,
and there can be no guarantee that the results or developments that
we anticipate will be realized or, even if substantially realized,
that they will have the expected consequences or effects on our
business, financial condition or results of operation. Unless
otherwise noted or the context otherwise indicates, the
forward-looking information contained herein is provided as of the
date hereof, and we do not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
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1
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Pre-orders for new
Taiga vehicles are cancelable and the deposit fully refundable, and
there can be no assurance that such pre-orders will be converted
into sales.
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SOURCE Taiga Motors Corporation