MELBOURNE, Fla., Dec. 23,
2022 /PRNewswire/ -- Eve
Holding, Inc. ("Eve") (NYSE: EVEX and EVEXW) reports its
third quarter 2022 earnings results.
Financial highlights
Eve reported a net loss of $36.7
million in 3Q22 versus $3.8
million in 3Q21 driven by higher Research & Development
(R&D) expenses and Selling, General & Administrative
(SG&A) costs as well as non-cash charges related to warrant
expenses of $17.4 million. Our
R&D efforts are primarily driven by a Master Service Agreement
(MSA) with Embraer – which intensified in the last year as the
design of Eve's eVTOL advances, having reached $14.3 million in 3Q2022, vs. $2.8 million during the same period of 2021.
Including employees contracted through its MSA with Embraer and
Atech, Eve now has approximately 450 team members engaged in the
development of its eVTOL and other elements of the UAM ecosystem
versus approximately 120 in 3Q21. The MSA costs are included in
Eve's R&D and represent most of the R&D expenses. SG&A
costs have also increased due to the growth in the number of direct
employees at Eve, who perform critical corporate functions
including program management, sales, finance, planning, etc.
During the third quarter of 2022, Eve's operating activities
consumed $17.0 million of cash,
versus $2.4 million in 3Q21. Net cash
provided by financing activities reached $15.0 million in 3Q22 driven by the investment
from United Airlines, announced in September.
For the 9M22, Eve reported a net loss of $154.0 million, $144.0
million higher than the $10.0
million net loss in the 9M21. Setting aside non-recurring,
non-cash expenses associated with the business combination with
Zanite Acquisition Corp. of $104.8
million value of warrants – the higher net losses in the
9M22 compared to the same period of 2021 were driven by higher
R&D activities necessary to progress the eVTOL design,
including the MSA, and an increase in SG&A expenses. R&D
expenses in the 9M22 reached $33.8
million or five times the amount invested in the program in
the 9M21 of $6.6 million, while
SG&A expenses increased from $3.3
million in the 9M21 to $23.9
million in the 9M22.
During the first nine months of 2022, Eve consumed $39.1 million of cash to fund its operating
activities, versus $7.5 million in
9M22. Net cash provided by financing activities reached
$352.7 million thus far in 2022, on a
combination of the listing in the NYSE and the United Airlines
Ventures (UAV) investment in Eve.
At the end of 3Q22, Eve had $329.9
million in total liquidity (cash, cash equivalents and
financial investments) versus $330.8
million at the beginning of the quarter. Development
expenses associated with Eve's aircraft were mostly offset by the
United (UAV) investment. Lastly, accounts payable – mostly MSA
agreement with Embraer, increased by $5.6
million in the quarter, which had a positive impact on
retained cash in Eve's balance sheet.
As of 3Q22, Eve did not have any debt on its balance sheet. The
proceeds from the business combination with Zanite Acquisition
Corp., and strategic PIPE investors combined with potential
advances from customers and future finance lines are important
sources of capital to fund Eve's development and certification of
its eVTOL aircraft.
Eve has also announced today the support of Brazil's National Development Bank ("BNDES")
to its eVTOL development efforts with two distinct credit lines,
totaling $92.5 million. Both credit
lines offer beneficial conditions with 12-year maturity and
amortization grace period. The support from BNDES is an ideal fit
for our project with long-term profile that matches Eve's cash-flow
needs and strengthens our balance sheet. Eve's 3Q22 cash
position of $329.9 million does not
include this additional funding from BNDES.
As Eve continues to advance its eVTOL program, it expects
portions of its non-binding order backlog to be converted into firm
contracts. Those firm orders may result in significant cash
advances and inflows to the company through down payments that may
occur prior to final eVTOL delivery.
For additional information, please access the full 3Q22 Earnings
release, available in the Investor Relations website at
ir.eveairmobility.com
3Q2022 Webcast details
Management will discuss the results on a conference call today,
December 23, 2022 at 9:00am (Eastern Time). The webcast will be
publicly available in the Upcoming Events section of the company
website (www.eveairmobility.com).
To listen by phone, please dial 1-877-704-4453 or
1-201-389-0920. A replay of the call will be available until
midnight, January 6, 2023, by dialing
1-844-512-2921 or 1-412-317-6671 and entering passcode
13734533.
About Eve Holding,
Inc.
Eve is dedicated to accelerating the Urban Air Mobility
ecosystem. Benefitting from a start-up mindset, backed by Embraer
S.A.'s more than 50-year history of aerospace expertise, and with a
singular focus, Eve is taking a holistic approach to progressing
the UAM ecosystem, with an advanced eVTOL project, comprehensive
global services and support network and a unique air traffic
management solution. Since May 10,
2022, Eve is listed on the New York Stock Exchange, where
its shares of common stock and public warrants trade under the
tickers "EVEX" and "EVEXW".
For more information, please visit www.eveairmobility.com
Forward Looking Statements
Certain statements in this press release include
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of
words such as "estimate," "plan," "project," "forecast," "intend,"
"will," "expect," "anticipate," "believe," "seek," "target", "may",
"intend", "predict", "should", "would", "predict", "potential",
"seem", "future", "outlook" or other similar expressions (or
negative versions of such words or expressions) that predict or
indicate future events or trends or that are not statements of
historical matters. All statements other than statements of
historical facts are forward-looking statements and include, but
are not limited to, statements regarding the Company's expectations
with respect to future performance and anticipated financial
impacts of the business combination. These statements are based on
various assumptions, whether or not identified herein, and on the
current expectations of the Company's management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on by any investor as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and may differ from assumptions, and such
differences may be material. Many actual events and circumstances
are beyond the control of the Company.
These forward-looking statements are subject to a number of
risks and uncertainties, including: (i) changes in domestic and
foreign business, market, financial, political and legal
conditions; (ii) failure to realize the anticipated benefits of the
business combination with Zanite Acquisition Corp.; (iii) risks
relating to the uncertainty of the projected financial information
with respect to the Company; (iv) the outcome of any legal
proceedings that may be instituted against the Company related to
the completion of the business combination; (v) future global,
regional or local economic and market conditions, including the
growth and development of the urban air mobility market; (vi) the
development, effects and enforcement of laws and regulations; (vii)
the Company's ability to grow and manage future growth, maintain
relationships with customers and suppliers and retain its key
employees; (viii) the Company's ability to develop new products and
solutions, bring them to market in a timely manner, and make
enhancements to its platform; (ix) the Company's ability to
successfully develop, obtain certification for and commercialize
its aircraft, (x) the effects of competition on the Company's
future business; (xi) the outcome of any potential litigation,
government and regulatory proceedings, investigations and
inquiries; (xi) the impact of the global COVID-19 pandemic and
(xii) those factors discussed under the heading "Risk Factors" in
the Company's Registration Statement on Form S-1/A filed on
July 29, 2022, and subsequent filings
with the Securities and Exchange Commission (SEC). If any of these
risks materialize or our assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. There may be additional risks that the
Company does not presently know or that the Company currently
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements. In
addition, forward-looking statements reflect the Company's
expectations, plans or forecasts of future events and views as of
the date of this press release. The Company anticipates that
subsequent events and developments will cause the Company's
assessments to change. However, while the Company may elect to
update these forward-looking statements at some point in the
future, the Company specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing the Company's assessments as of any date subsequent to
the date of this press release and undue reliance should not be
placed upon the forward-looking statements.
Investor Relations
Lucio Aldworth
Caio Pinez
investors@eveairmobility.com
https://ir.eveairmobility.com/
Media:
media@eveairmobility.com
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SOURCE Eve Holding, Inc.