Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ("Eos"), a leading
provider of safe, scalable, efficient, and sustainable zinc-based
energy storage systems, today announced financial results for the
first quarter ended March 31, 2022.
First Quarter Highlights
- Continued commercial pipeline growth; booked orders of $67
million year-to-date resulting in orders backlog of $212 million
with a current opportunity pipeline of over $6 billion.
- Achieved 65 MWh of a 550 MWh annualized battery manufacturing
capacity expansion plan in two months.
- $3.3 million in revenue from four customer projects, including
first Energy Block deliveries for the 80 MWh Pine Gate Renewables’
Eastover Project.
- 69% sequential increase in Energy Block volume, on a revenue
recognition basis.
- Q1 ‘22 ending Energy Block bill of material cost reduced by
approximately 14% vs year end 2021.
- Q1 ‘22 average Energy Block product cost lower by 7.4%, net of
$1.7 million incremental lower of cost or market inventory
adjustment, versus last quarter.
- Invested $5 million in Research and Development to improve
battery performance and to reduce both the cost of the product and
lifetime operating cost of our battery system and to develop future
generation technology.
- Cash balance of $55 million as of March 31, 2022.
Recent Business Highlights
- On April 30, 2022, shipped 100th Eos Zynth™ Energy Block from
Turtle Creek, PA.
- On April 28, 2022, secured a financing commitment for up to
$200 million with an affiliate of Yorkville Advisors, allowing Eos
flexibility to access capital as needed to fund future growth.
- On April 27, 2022, signed a letter of intent with a leading
solar developer based in the Northeast for a minimum of 300 MWh of
storage capacity with a master supply agreement expected to close
by June 2022.
- In March 2022, Bridgelink Commodities, LLC signed a three-year
master supply agreement with a total potential order value of up to
$150 million. Minimum order commitment under the agreement for 240
MWh with an option to increase to 500 MWh and an additional option
to purchase long-term service support.
Eos Chief Executive Officer Joe Mastrangelo said, “Every day we
achieve important milestones in our company’s development. Our
technology is positioned to fulfill a rapidly growing demand in the
world’s future energy mix. I am proud that our team recently
shipped the 100th Energy Block from our facility in Turtle Creek,
PA in this challenging global macro environment. The timing of our
capacity expansion fits nicely with our orders backlog growth and
commercial opportunity pipeline acceleration.”
Mastrangelo concluded, “We are building a company ready to
deliver safe, scalable, flexible, and affordable energy storage.
Our manufacturing capacity expansion is on plan, we are seeing
improved first-pass production yields, and we are proud to be
working towards a cleaner, brighter energy future.”
Earnings Conference Call and Audio Webcast
Eos will host a conference call to discuss its first quarter
2022 financial results on May 10, 2022, at 8:30 a.m. ET. The
conference call can be accessed live over the phone by dialing
1-844-826-3033, or for international callers 1-412-317-5185. The
call will also be webcast live from Eos's investor relations
website at https://investors.eose.com.
The conference call replay will be available via webcast through
Eos’s investor relations website. A telephone replay will be
available from 11:30 a.m. ET on May 10, 2022, through May 17, 2022,
by dialing 1-844-512-2921, or for international callers
1-412-317-6671. The replay passcode will be 10166344.
About Eos
Eos Energy Enterprises, Inc. is accelerating the shift to clean
energy with positively ingenious solutions that transform how the
world stores power. Our breakthrough Znyth™ aqueous zinc battery
was designed to overcome the limitations of conventional
lithium-ion technology. Safe, scalable, efficient, sustainable—and
manufactured in the U.S—it's the core of our innovative systems
that today provide utility, industrial, commercial, and residential
customers with a proven, reliable energy storage alternative for 3-
to 12-hour applications. Eos was founded in 2008 and is
headquartered in Edison, New Jersey. For more information about Eos
(NASDAQ: EOSE), visit eose.com.
ContactsInvestors:
ir@eose.comMedia:
media@eose.com
Forward Looking Statements
Except for the historical information contained herein, the
matters set forth in this press release are forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. The words
"anticipate," "believe," "estimate," "project," "expect," "intend,"
"plan," "should," and similar expressions, as they relate to us,
are intended to identify forward-looking statements.
Forward-looking statements are based on our management’s beliefs,
as well as assumptions made by, and information currently available
to, them. Because such statements are based on expectations as to
future financial and operating results and are not statements of
fact, actual results may differ materially from those
projected.
Factors which may cause actual results to differ materially from
current expectations include, but are not limited to: changes
adversely affecting the business in which we are engaged; our
ability to forecast trends accurately; our ability to generate
cash, service indebtedness and incur additional indebtedness; our
ability to raise financing in the future; our ability to develop
efficient manufacturing processes to scale and to forecast related
costs and efficiencies accurately; fluctuations in our revenue and
operating results; competition from existing or new competitors;
the failure to convert firm order backlog to revenue;
risks associated with security breaches in our information
technology systems; risks related to legal proceedings or claims;
risks associated with evolving energy policies in the United States
and other countries and the potential costs of regulatory
compliance; risks associated with changes to U.S. trade
environment; risks resulting from the impact of global pandemics,
including the novel coronavirus, Covid-19; and risks related to
adverse changes in general economic conditions.
The forward-looking statements contained in this press release
are also subject to additional risks, uncertainties, and factors,
including those more fully described in the Company’s most recent
filings with the Securities and Exchange Commission, including the
Company’s most recent Annual Report on Form 10-K and subsequent
reports on Forms 10-Q and 8-K. Further information on potential
risks that could affect actual results will be included in the
subsequent periodic and current reports and other filings that the
Company makes with the Securities and Exchange Commission from time
to time. Moreover, the Company operates in a very competitive and
rapidly changing environment, and new risks and uncertainties may
emerge that could have an impact on the forward-looking statements
contained in this press release.
Forward-looking statements speak only as of the date they are
made. Readers are cautioned not to put undue reliance on
forward-looking statements, and, except as required by law, the
Company assumes no obligation and does not intend to update or
revise these forward-looking statements, whether as a result of new
information, future events, or otherwise.
Key Metrics
Backlog. Our backlog represents the amount of
revenue that we expect to realize from existing agreements with our
customers for the sale of our battery systems and
performance of services. The backlog is calculated by adding
the new orders of the current fiscal year to the backlog
as of the end of the prior fiscal period and then subtracting
the shipments in the current fiscal period. If the amount of an
order is modified or if an order from the current fiscal year is
cancelled, we adjust orders for the current quarter and our backlog
accordingly, but do not retroactively adjust previously published
backlogs. However, if an order from a previous fiscal year is
cancelled, orders of the current quarter and, accordingly, the
current fiscal year are generally not adjusted; instead, the
existing backlog is revised directly. There is no comparable
US-GAAP financial measure for backlog. We believe that the backlog
is a useful indicator regarding the future revenue of our
Company.
Pipeline. Our pipeline represents projects for
which we have submitted technical proposals or non-binding quotes
plus customers with letter of intents or firm commitments. Pipeline
does not include lead generation projects.
Booked Orders. Booked orders are orders where
we have legally binding agreements with a PO/MSA signed and
executed by both parties.
EOS ENERGY ENTERPRISES,
INC.EARNINGS RELEASE
TABLESCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited, in thousands, except share and per
share data)
|
For the three months ended |
|
March 31, 2022 |
|
|
March 31, 2021 |
Revenue |
|
|
|
|
Total revenue |
$ |
3,298 |
|
|
|
$ |
164 |
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
Cost of goods sold |
|
35,585 |
|
|
|
|
100 |
|
Research and development expenses |
|
4,963 |
|
|
|
|
5,053 |
|
Selling, general and administrative expenses |
|
14,279 |
|
|
|
|
8,802 |
|
Loss on pre-existing agreement |
|
- |
|
|
|
|
7,852 |
|
Grant expense, net |
|
173 |
|
|
|
|
8 |
|
Total costs and
expenses |
|
55,000 |
|
|
|
|
21,815 |
|
|
|
|
|
|
Operating
loss |
|
(51,702 |
) |
|
|
|
(21,651 |
) |
|
|
|
|
|
Interest expense, net |
|
338 |
|
|
|
|
21 |
|
Interest expense, related
party |
|
2,174 |
|
|
|
|
- |
|
Other expense (income) |
|
(8,381 |
) |
|
|
|
(216 |
) |
Loss before income
taxes |
$ |
(45,833 |
) |
|
|
$ |
(21,456 |
) |
Income tax benefit |
|
42 |
|
|
|
|
- |
|
Net Loss |
$ |
(45,791 |
) |
|
|
$ |
(21,456 |
) |
|
|
|
|
|
Basic and diluted loss
per share attributable to common shareholders |
|
|
|
|
Basic |
$ |
(0.85 |
) |
|
|
$ |
(0.42 |
) |
Diluted |
$ |
(0.85 |
) |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
Weighted average
shares of common stock |
|
|
|
|
Basic |
|
53,961,553 |
|
|
|
|
51,126,863 |
|
Diluted |
|
53,961,553 |
|
|
|
|
51,126,863 |
|
EOS ENERGY ENTERPRISES,
INC.EARNINGS RELEASE TABLES
CONSOLIDATED BALANCE SHEET DATA(Unaudited, in
thousands)
|
March 31, 2022 |
|
|
December 31, 2021 |
Balance sheet
data |
|
|
|
|
Cash and cash equivalents |
$ |
55,361 |
|
|
|
$ |
104,831 |
Other current assets |
40,793 |
|
|
|
37,741 |
Property and equipment, net |
14,520 |
|
|
|
12,890 |
Other assets |
16,185 |
|
|
|
13,713 |
Total assets |
126,859 |
|
|
|
169,175 |
Total liabilities |
137,079 |
|
|
|
136,728 |
Total equity (deficit) |
(10,220 |
) |
|
|
32,447 |
SUMMARIZED STATEMENT OF CASH FLOW
DATA (Unaudited, in thousands)
|
For the three months ended |
|
March 31, 2022 |
|
|
March 31, 2021 |
Cash used in operating activities |
|
(42,732 |
) |
|
|
|
(9,703 |
) |
Cash used in investing activities |
|
(5,132 |
) |
|
|
|
(11,360 |
) |
Cash used in financing activities |
|
(1,212 |
) |
|
|
|
(73 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(49,076 |
) |
|
|
|
(21,136 |
) |
Cash, cash equivalents and
restricted cash, beginning of the period |
|
105,692 |
|
|
|
|
121,853 |
|
Cash, cash equivalents and
restricted cash, end of the period |
$ |
56,616 |
|
|
|
$ |
100,717 |
|
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