CINCINNATI, May 7, 2019 /PRNewswire/
-- Workhorse Group Inc. (NASDAQ:
WKHS) ("Workhorse" or "the Company"), an American
technology company focused on providing sustainable and
cost-effective electric-mobility solutions to the transportation
sector, today reported financial results for the first quarter
ended March 31, 2019.
First Quarter and Recent Operational Highlights
- April 2019: Entered
an alliance with Duke Energy. The alliance plans to offer eFleet
solutions to existing and future Workhorse customers. Potential
offerings include single-point management and financing of
behind-the-meter infrastructure, which is necessary to support
depot-wide electrification; vehicle financing/battery management
programs; and solar and energy storage and other distributed energy
resources.
- April 2019: Entered into
subscription agreement with existing Workhorse investors to sell
3,957,432 shares of common stock at a price per share of
$0.74, resulting in net proceeds of
$2.9 million that will be used for
working capital and general corporate purposes.
- April 2019: Amended credit
agreement with Marathon Asset Management to extend the deadline for
the Company's $4.0 million minimum
liquidity covenant to May 31,
2019.
- April 2019: Partnered with
Prefix Corporation to finalize the design, development and
production of the N-GEN series all-electric delivery van,
incorporating features such as light-weighting the vehicle to
improve mileage, performance, driver safety and reducing the burden
of infrastructure requirements.
- March 2019: Continued
work with partner Dana Inc. on a key integration project, including
providing upgraded battery packs and installing various other
technologies.
- February 2019:
Duane Hughes announced as Chief
Executive Officer to further support company's successful evolution
into full scale production. Previously, Mr. Hughes had served as
Workhorse President and Chief Operating Officer.
- February 2019:
Robert Willison, PhD, engineering
veteran and EV industry expert, appointed as Chief Operating
Officer to lead company's transition into manufacturing.
- December 2018: Secured
$35 million financing from Marathon
Asset Management.
Management Commentary
"In the first quarter of 2019,
we continued to make considerable progress in our transition from a
development-oriented organization to a production-focused electric
vehicle manufacturer," said Workhorse CEO Duane Hughes. "Through our ongoing strategic
relationship with Duke, we now have the
ability to create an even more cost-competitive alternative, which
also addresses one of the biggest issues preventing large scale
electric fleet adoption: infrastructure needs. In the more
immediate term, we remain focused on our 'Trucks First' initiative,
which has enabled us to make significant advances in all phases of
the manufacturing process. Most notably, our renewed partnership
with Prefix Corporation has us in solid positioning to begin
producing fully-redesigned vehicles that now incorporate additional
features that will streamline cost and increase production
efficiency. We remain on schedule with respect to
manufacturing and delivery of the new N-GEN, which should commence
in the fourth quarter of this year."
First Quarter 2019 Financial Results
Sales for the
first quarter of 2019 were recorded at $364,000, down from $560,000 in the first quarter of 2018. The
decrease in sales was primarily due to a decrease in volume of
trucks delivered.
Selling, general and administrative expenses decreased 12% to
$2.1 million from $2.4 million in the same period last year. The
decrease in selling, general and administrative expenses was
primarily due to decreased spending in areas such as marketing as
well as decreases in other employee-related expenses. The decrease
in SG&A expenses was partially offset by increased stock
compensation during the period.
Research and development expenses decreased 42% to $1.4 million from $2.3
million in the fourth quarter of 2017. The decrease in
research and development expenses was due primarily to lower
prototype expenses related to the US Postal Service (USPS) Next
Generation Delivery Vehicle (NGDV) and SureFly.
Total operating expenses decreased 27% to $3.5 million from $4.7
million in the same period last year. The decrease in total
operating expenses was due to the lower SG&A and R&D spend
previously mentioned.
Net loss was $6.3 million,
compared with a net loss of $6.4
million in the first quarter of 2018. The improvement in net
loss was due primarily to the significant reduction in operating
expenses previously mentioned.
As of March 30, 2019, the company
had cash, cash equivalents and short-term investments of
$2.8 million compared to $1.5 million as of December 31, 2018.
Conference Call
Workhorse management will hold a
conference call today (May 7, 2019)
at 10:00 a.m. Eastern time
(7:00 a.m. Pacific time) to discuss
these results.
Workhorse management will host the presentation, followed by a
question and answer period.
U.S. dial-in: 877-407-8289
International dial-in: 201-689-8341
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Gateway Investor Relations at
949-574-3860.
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of Workhorse's
website.
A telephonic replay of the conference call will be available
after 4:00 p.m. Eastern time on the
same day through May 14, 2019.
Toll-free replay number: 877-660-6853
International replay number: 201-612-7415
Replay ID: 13690455
About Workhorse Group Inc.
Workhorse is a technology
company focused on providing electric mobility solutions to the
transportation sector. As an American original equipment
manufacturer, we design and build high performance battery-electric
vehicles including trucks and aircraft. Workhorse also develops
cloud-based, real-time telematics performance monitoring systems
that are fully integrated with our vehicles and enable fleet
operators to optimize energy and route efficiency. All Workhorse
vehicles are designed to make the movement of people and goods more
efficient and less harmful to the environment. For additional
information visit workhorse.com.
Forward-Looking Statements
This press
release includes forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
may be identified by words such as "believes," "expects,"
"anticipates," "estimates," "projects," "intends," "should,"
"seeks," "future," "continue," or the negative of such terms, or
other comparable terminology. Forward-looking statements are
statements that are not historical facts. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from the
forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are
not limited to: our limited operations and need to expand in the
near future to fulfill product orders; risks associated with
obtaining orders and executing upon such orders; the ability to
protect our intellectual property; the potential lack of market
acceptance of our products; potential competition; our inability to
retain key members of our management team; our inability to raise
additional capital to fund our operations and business plan; our
inability to satisfy covenants in our financing agreements; our
inability to maintain our listing of our securities on the Nasdaq
Capital Market; our inability to satisfy our customer warranty
claims; our ability to continue as a going concern; our liquidity
and other risks and uncertainties and other factors discussed from
time to time in our filings with the Securities and Exchange
Commission ("SEC"), including our annual report on Form 10-K filed
with the SEC. Workhorse expressly disclaims any obligation to
publicly update any forward-looking statements contained herein,
whether as a result of new information, future events or otherwise,
except as required by law.
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Investor Relations
949-574-3860
WKHS@gatewayir.com
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SOURCE Workhorse Group Inc.