Loop Energy Q3 Results: Executing to Plan with Record Revenues Combined with Unit Cost Reduction
November 02 2022 - 4:00PM
Business Wire
Loop Energy reports:
- Record revenues of $2.6 million for the nine months and $1.4
million for the three months ended September 30, 2022
- Revenue realized from 40 units for the first nine months of
2022 surpasses 14 units for the full year of 2021
- Record purchase orders (POs) of 61 year to date (YTD) exceeding
Loop Energy’s original PO guidance set for 2022
- On track to exceed 25% unit cost reduction in 2022 with 39% for
the first nine months compared to the same period in 2021
Loop Energy™ (TSX: LPEN), a designer and manufacturer of
hydrogen fuel cells for commercial mobility, today reported
consolidated financial results for the third quarter ending
September 30, 2022.
Loop Energy Chief Financial Officer, Damian Towns said “We have
continued to build on our history of executing with record
quarterly and annual revenues driven by our strong growth in
purchase orders and customer base. A highlight of the excellent
progress made in achieving our stated objective for 2022 is
reducing unit costs by 25%, which currently stands at 39% for the
first nine months of the year. Our team has also continued to
deliver with the launch of our 120 kW product, which uses our
next-generation bipolar plate technology. Overall, we remain very
upbeat about the progress made not only during Q3 but also the year
to date.”
Q3 2022 Highlights
Commercial
- 61 POs received nine months ended September 30, 2022, versus 13
POs nine months ended September 30, 2021, with 9 POs received in Q3
2022 versus 1 PO in Q3 2021
- On track to achieve 25% cost out strategy with 39% unit cost
reduction achieved for the first nine months of 2022
- Launched the S1200 fuel cell system, which utilizes
next-generation bipolar plate technology, on schedule
- Three customers, NGVI, Rampini and Aluminium Revolutionary
Chassis Company (ARCC), each launched hydrogen-electric bus
platforms within a three month period
- Entered into the Pilot Phase of the Customer Adoption Cycle
with Opex /Hevolucion and Avia Ingeniería, both committing to
develop a medium-duty hydrogen-electric truck
- Opened a service facility in the United Kingdom to support
customers in the region
Financial
- Q322 revenues of $1.4 million (Q321: $0.2m), 2022 YTD revenues
of $2.6 million (2021: $1.3m)
- Q322 operating expenses of $7.5 million (Q321: $5.2m), 2022 YTD
operating expenses of $21.3 million (2021: $14.1m)
- Q322 capital expenditures of $2.5 million (Q321: $0.2m), 2022
YTD capital expenditures of $7.4 million (2021: $1.2m)
- Q322 net losses of $9.9 million (Q321: $6.5m), 2022 YTD net
losses of $27.8 million (2021: $17.6m)
- Cash and cash equivalents of $36.9 million as of September 30,
2022 (June 2022: $43 million)
- Increased inventory to $7.5 million (gross value) in order to
support supply chain
- Working capital of $43.9m as of September 30, 2022
2022 Outlook
- Positive progress towards its revised target of 100 POs for
2022, targeting a five-fold increase from 2021
- 60% space increase at Burnaby manufacturing facility and
significant additions to engineering and manufacturing teams
Loop Energy’s financial results and MD&A are available at
loopenergy.com/investors/
Conference Call Details
Loop Energy will host a conference call on Thursday, November 3,
at 8:00 am PT (11:00 am ET) to discuss its financial results for
the third quarter of 2022.
To join the call, please dial:
1-877-375-7930 (toll-free)
1 (646) 960-0203 (international)
Following the call’s completion, the recording will be made
available on Loop Energy’s investor site.
About Loop Energy Inc.
Loop Energy is a leading designer and manufacturer of hydrogen
fuel cell systems targeted for the electrification of commercial
vehicles, including light commercial vehicles, transit buses and
medium and heavy-duty trucks. Loop Energy’s products feature the
company’s proprietary eFlow™ technology in the fuel cell stack’s
bipolar plates. At the core of this innovation is its modified
geometry that delivers improved uniform current density across the
entire active area and increases gas velocity throughout the plate
to enhance performance and water management. This innovative design
provides OEMs and fleet operators with new levels of fuel
efficiency, peak power and durability. For more information about
how Loop Energy is driving towards a zero-emissions future, visit
www.loopenergy.com.
- All amounts are in CAD dollars unless otherwise noted and have
been prepared in accordance with International Financial Reporting
Standards (IFRS).
Forward Looking Information
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflect
management’s current expectations and projections regarding future
events. Particularly, statements regarding the Company’s
expectations of future results, performance, achievements,
prospects or opportunities or the markets in which we operate is
forward-looking information, including without limitation, our 2022
and 2023 purchase order, cost reduction and revenue targets; our
future growth prospects and business outlook including without
limitation the expected demand for our products, the planned growth
of our customer base and the expected growth of our operations
globally. Forward-looking information is based on a number of
assumptions (including without limitation assumptions with respect
the current and future performance of the Company’s products,
growth in demand for the Company’s products, the Company’s ability
to execute on its strategy, achieve its targets and progress
existing and future customers through the Customer Adoption Cycle
in a timely way, and is subject to a number of risks and
uncertainties, many of which are beyond the Company’s control and
could cause actual results and events to vary materially from those
that are disclosed, or implied, by such forward‐looking
information. Such risks and uncertainties include, but are not
limited to, the realization of electrification of transportation
and hydrogen adoption rates, the elimination of diesel fuel and
ongoing government support of such developments, the expected
growth in demand for fuel cells for the commercial transportation
market, our ability to obtain future patent grants for our
proprietary technology and the effectiveness of current and future
patents in protecting our technology and the factors discussed
under “Risk Factors” in the Company’s Annual Information Form dated
March 23, 2022. Loop disclaims any obligation to update these
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20221102005237/en/
Investor Inquiries: Investor Relations | Tel: +1
604.222.3400 | investors@loopenergy.com Laine Yonker | Tel: +1
646.653.7035 | lyonker@edisongroup.com
Media Inquiries: Lucas Schmidt | Tel: +1.604.222.3400
Ext. 603 | lucas.schmidt@loopenergy.com
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