- Delivery of 84 vehicles, an increase of 60 vehicles, as compared to the 24 delivered in the same period last year.
- Revenue of
$22.6 million , up$16.4 million as compared to$6.2 million in Q1 2021. - Gross loss of
$0.9 million , as compared to a gross loss of$1.8 million in Q1 2021. - Net earnings of
$2.1 million , as compared to a net loss of$16.1 million in Q1 2021. Net earnings for Q1 2022 include a$21.5 million gain related to non-cash decrease in the fair value of share warrant obligations and a$3.8 million charge related to non-cash share-based compensation, compared to a$5.2 million charge related to non-cash share-based compensation in Q1 2021. - Adjusted EBITDA1 of negative
$11.3 million , as compared to negative$5.9 million in Q1 2021, after mainly adjusting for certain non-cash items such as change in fair value of share warrant obligations and share-based compensation. - Capital expenditures, which included expenditures related to the Joliet Facility and the Lion Campus, amounted to
$34.9 million , up$33.8 million , as compared to$1.1 million in Q1 2021. - Acquisition of intangible assets, which mainly consist of R&D activities, amounted to
$15.0 million , up$8.5 million , as compared to$6.5 million in Q1 2021. - As of
March 31, 2022 , Lion had$155.5 million in cash, and access to a committed revolving credit facility in the maximum principal amount of$200 million , as well as available support from the Canadian federal andQuebec governments of up to approximatelyC$100 million (amounting to approximatelyC$50 million each) in connection with the Lion Campus.
______________________________________ |
1 Adjusted EBITDA is a non-IFRS financial measure. See "Non-IFRS Measures and Other Performance Metrics" section of this press release. |
- More than 600 vehicles on the road, with over 10 million miles driven.
- Vehicle order book2 of 2,422 all-electric medium- and heavy-duty urban vehicles as of
May 3, 2022 , consisting of 286 trucks and 2,136 buses, representing a combined total order value of approximately$600 million based on management's estimates. - LionEnergy order book2 of 241 charging stations and related services as of
May 3, 2022 , representing a combined total order value of approximately$3.0 million . - 12 Experience Centers in operation in
the United States andCanada . - Tenant improvement work as well as the installation of critical production and other equipment advancing at the new leased 900,000 sq-ft
U.S. manufacturing facility inJoliet, Illinois (the "Joliet Facility"). Vehicle production expected to begin in the second half of 2022. - Construction and development work for the battery manufacturing plant is advancing, including the installation of the prototype module production line at JR Automation's facilities in
Troy, Michigan , the production of the first prototype pack, and the completion of the steel structure for the battery plant building inMirabel . Production of battery packs and modules is expected to begin in the second half of 2022. - Several new key partnerships announced with truck upfitters to provide new fully electrified refrigerated, dry freight and aluminum stake body options for the Lion6 zero-emission urban truck. The new partnerships include equipment upfit options from industry leaders
Morgan Truck Body ,Thermo King , Knapheide and CM Truck Beds. - Launch of a new lightweight, aerodynamic, 100% electric heavy-duty truck on the Lion6 chassis, together with Transit Truck Bodies that is suited for last-mile urban delivery, that was developed under an upfitter partnership model.
- As of
May 3, 2022 , Lion had approximately 1,100 employees, of which over 300 were in its Engineering and R&D departments.
"We are pleased with our Q1 performance. Despite the ongoing challenges in the supply chain environment, we continued to experience improvements and achieved a record number of quarterly vehicle deliveries. We also sustained momentum in vehicle manufacturing and we expect that cadence of production, and therefore of deliveries, should gradually improve over the rest of the coming year," commented
____________________________ |
2 See "Non-IFRS Measures and Other Performance Metrics" section of this press release. |
Revenue
For the three months ended
Cost of Sales
For the three months ended
Gross Loss
For the three months ended
Administrative Expenses
For the three months ended
Selling Expenses
For the three months ended
Finance Costs
For the three months ended
Foreign Exchange Loss (Gain)
Foreign exchange gains and losses relate primarily to the revaluation of net monetary assets denominated in foreign currencies to the functional currencies of the related Lion entities. Foreign exchange loss for the three months ended
Change in fair value of share warrant obligations
Change in fair value of share warrant obligations resulted in a gain of
Net Earnings (Loss)
For the three months ended
As of
A conference call and webcast will be held on
To participate in the conference call, dial (226) 828-7575 or (833) 950-0062 (toll free). An investor presentation and a live webcast of the conference call will also be available at www.thelionelectric.com under the "Events and Presentations" page of the "Investors" section. An archive of the event will be available for a period of time shortly after the conference call.
This release should be read together with our 2022 first quarter financial report, including the unaudited condensed interim consolidated financial statements of the Company as at and for the quarter ended
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at
(Unaudited)
$ | $ | ||
ASSETS | |||
Current | |||
Cash | 155,459,640 | 241,702,030 | |
Accounts receivable | 38,959,413 | 37,899,085 | |
Inventories | 144,746,941 | 115,978,979 | |
Prepaid expenses and other current assets | 4,438,507 | 4,647,163 | |
Current assets | 343,604,501 | 400,227,257 | |
Non-current | |||
Other non-current assets | 845,365 | 793,298 | |
Property, plant and equipment | 68,104,890 | 32,668,158 | |
Right-of-use assets | 59,255,209 | 60,902,362 | |
Intangible assets | 97,533,855 | 81,899,830 | |
Contract asset | 14,318,972 | 14,113,415 | |
Non-current assets | 240,058,291 | 190,377,063 | |
Total assets | 583,662,792 | 590,604,320 | |
LIABILITIES | |||
Current | |||
Trade and other payables | 45,777,582 | 40,409,565 | |
Current portion of long-term debt and other debts | 12,936,186 | 13,015,584 | |
Current portion of lease liabilities | 4,994,798 | 4,691,344 | |
Current liabilities | 63,708,566 | 58,116,493 | |
Non-current | |||
Long-term debt and other debts | 49,265 | 62,086 | |
Lease liabilities | 56,006,402 | 57,517,973 | |
Share warrant obligations | 86,070,645 | 106,225,934 | |
Non-current liabilities | 142,126,312 | 163,805,993 | |
Total liabilities | 205,834,878 | 221,922,486 | |
SHAREHOLDERS' EQUITY | |||
Share capital | 418,709,160 | 418,709,160 | |
Contributed surplus | 126,432,354 | 122,637,796 | |
Deficit | (167,653,289) | (169,755,726) | |
Cumulative translation adjustment | 339,689 | (2,909,396) | |
Total shareholders' equity | 377,827,914 | 368,681,834 | |
Total shareholders' equity and liabilities | 583,662,792 | 590,604,320 |
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS)
For the three months ended
(Unaudited)
Three months ended | |||
|
| ||
$ | $ | ||
Revenue | 22,646,793 | 6,225,478 | |
Cost of sales | 23,558,565 | 8,032,301 | |
Gross loss | (911,772) | (1,806,823) | |
Administrative expenses | 10,977,409 | 6,269,969 | |
Selling expenses | 5,375,502 | 4,383,579 | |
Operating loss | (17,264,683) | (12,460,371) | |
Finance costs | 1,178,408 | 3,907,390 | |
Foreign exchange loss (gain) | 910,642 | (178,653) | |
Change in fair value of share warrant obligations | (21,456,170) | (75,245) | |
Net income (loss) | 2,102,437 | (16,113,863) | |
Other comprehensive income (loss) | |||
Item that will be subsequently reclassified to net earnings (loss) | |||
Foreign currency translation adjustment | 3,249,085 | (1,302,467) | |
Comprehensive earnings (loss) for the period | 5,351,522 | (17,416,330) | |
Earnings (loss) per share | |||
Basic earnings (loss) per share | 0.01 | (0.15) | |
Diluted earnings (loss) per share | 0.01 | (0.15) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended
(Unaudited)
Three months ended | |||
$ | $ | ||
OPERATING ACTIVITIES | |||
Net earnings (loss) for the period | 2,102,437 | (16,113,863) | |
Non-cash items: | |||
Depreciation and amortization | 1,983,254 | 983,814 | |
Share-based compensation | 3,794,558 | 5,205,352 | |
Accretion expense on common shares, retractable | — | 1,616,013 | |
Accretion and revaluation expense on balance of purchase price payable related to the acquisition of the | 56,336 | 153,120 | |
Accretion expense on convertible debt instruments | — | 797,214 | |
Change in fair value of share warrant obligations | (21,456,170) | (75,245) | |
Unrealized foreign exchange gain | (207,744) | (35,926) | |
Net change in non-cash working capital items | (20,745,672) | (2,594,854) | |
Cash flows used in operating activities | (34,473,001) | (10,064,375) | |
INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment(1) | (35,794,350) | (1,111,899) | |
Acquisition of intangible assets(1) | (14,782,510) | (6,450,184) | |
Government assistance related to intangible assets | — | 456,190 | |
Cash flows used in investing activities | (50,576,860) | (7,105,893) | |
FINANCING ACTIVITIES | |||
Net change in credit facilities | — | 4,977,316 | |
Repayment of loans on research and development tax credits and subsidies receivable | — | (2,745,712) | |
Increase in long-term debt | — | 15,775,473 | |
Repayment of long-term debt and other debts | (303,778) | (370,026) | |
Payment of lease liabilities | (1,216,817) | (447,724) | |
Cash flows (used in) from financing activities | (1,520,595) | 17,189,327 | |
Effect of exchange rate changes on cash held in foreign currency | 328,066 | (62,053) | |
Net decrease in cash | (86,242,390) | (42,994) | |
Cash (bank overdraft), beginning of period | 241,702,030 | (91,076) | |
Cash (bank overdraft), end of period | 155,459,640 | (134,070) | |
Other information on cash flows related to operating activities: | |||
Interest paid | 349,986 | 1,050,469 | |
Interest paid under lease liabilities | 772,087 | 79,471 |
(1) | For the three months ending |
This press release makes reference to Adjusted EBITDA, which is a non-IFRS financial measure, as well as other performance metrics, including the Company's order book, which are defined below. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
"Adjusted EBITDA" is defined as net earnings (loss) before finance costs, income tax expense or benefit, and depreciation and amortization, adjusted for share-based compensation, changes in fair value of share warrant obligations, foreign exchange (gain) loss and transaction and other non-recurring expenses. Adjusted EBITDA is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, IFRS. Lion believes that the use of Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Lion's financial measures with those of comparable companies, which may present similar non-IFRS financial measures to investors. However, readers should be aware that when evaluating Adjusted EBITDA, Lion may incur future expenses similar to those excluded when calculating Adjusted EBITDA. In addition, Lion's presentation of these measures should not be construed as an inference that Lion's future results will be unaffected by unusual or non-recurring items. Lion's computation of Adjusted EBITDA may not be comparable to other similarly entitled measures computed by other companies, because all companies may not calculate Adjusted EBITDA in the same fashion. Readers should review the reconciliation of net earnings (loss), the most directly comparable IFRS financial measure, to Adjusted EBITDA presented by the Company under section 13.0 of the Company's MD&A for the three months ended
This press release also makes reference to the Company's "order book" with respect to vehicles and charging stations. The Company's order book, expressed as a number of units or the amount of sales expected to be recognized in the future in respect of such number of units, is determined by management based on purchase orders that have been signed, orders that have been formally confirmed by clients or products in respect of which formal joint applications for governmental subsidies or economic incentives have been made by the applicable clients and the Company. The Company's order book refers to products that have not yet been delivered but which are reasonably expected by management to be delivered within a time period that can be reasonably established and includes, in the case of charging stations, services that have not been completed but which are reasonably expected by management to be completed in connection with the delivery of the product. When the Company's order book is expressed as an amount of sales, such amount has been determined by management based on the current specifications or requirements of the applicable order, assumes no changes to such specifications or requirements and, in cases where the pricing of a product or service may vary in the future, represents management's reasonable estimate of the prospective pricing as of the time such estimate is reported. The order book is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, IFRS or any other applicable securities legislation, and is neither disclosed in nor derived from the financial statements of the Company. Lion believes that the disclosure of its order book provides an additional tool for investors to use in evaluating the Company's performance and trends. Lion's computation of its order book may not be comparable to other similarly entitled measures computed by other companies, because all companies may not calculate their order book, order backlog, or order intake in the same fashion. In addition, Lion's presentation of such measure should not be construed as a representation by Lion that all of the vehicles and charging stations included in its order book will translate into actual sales. A portion of the vehicles or charging stations included in the Company's order book may be cancellable in certain circumstances within a certain period. In addition, the conversion of the Company's order book into actual deliveries and sales is subject to a number of risks. For instance, a customer may default on a purchase order that has become binding, and the Company may not be able to convert orders included in its order books into sales. The conversion of the Company's order book into actual deliveries and sales may also be impacted by changes in government subsidies and economic incentives. For example, the conditional purchase order from
Because of these limitations, Adjusted EBITDA and order book should not be considered in isolation or as a substitute for performance measures calculated in accordance with IFRS. Lion compensates for these limitations by relying primarily on Lion's IFRS results and using Adjusted EBITDA and order book on a supplemental basis. Readers should not rely on any single financial measure to evaluate Lion's business.
The following table reconciles net earnings (loss) to Adjusted EBITDA for the three months ended
Unaudited | |||
Three months ended | |||
2022 | 2021 | ||
(in thousands) | |||
Revenue | |||
Net earnings (loss) | ( | ||
Finance costs | 1,178 | 3,907 | |
Depreciation and amortization | 1,983 | 984 | |
Share-based compensation(1) | 3,795 | 5,205 | |
Change in fair value of share warrant obligations(2) | (21,456) | (75) | |
Foreign exchange (gain) loss(3) | 911 | (179) | |
Transaction and other non-recurring expenses(4) | 169 | 410 | |
Adjusted EBITDA | ( | ( |
(1) | Represents non-cash expenses recognized in connection with the issuance and revaluation to fair value of stock options issued to participants under Lion's stock option plan as described in note 9 to the unaudited condensed interim consolidated financial statements as at and for the three months ended |
(2) | Represents non-cash change in the fair value of the share warrant obligations as described in note 8 to the unaudited condensed interim consolidated financial statements as at and for the three months ended |
(3) | Represents non-cash losses (gains) relating to foreign exchange translation. |
(4) | Represents professional fees related to financing transactions and other non-recurring professional fees. |
Lion will be holding its 2022 Annual Meeting of Shareholders (the "Meeting") as a completely virtual meeting via live webcast on
All shareholders, regardless of their geographic location, will have an equal opportunity to participate at the virtual Meeting at https://web.lumiagm.com/442208210. To access the online Meeting platform, participants will need an Internet-connected device, such as laptops, computers, tablets or cellphones.
The Company's management information circular and notice of annual meeting of shareholders relating to the Meeting are available on Lion's website at www.thelionelectric.com under the "Events and Presentations" page of the "Investors" section, and have been filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements contained in this press release that are not statements of historical fact, including statements about Lion's beliefs and expectations, are forward-looking statements and should be evaluated as such.
Forward-looking statements may be identified by the use of words such as "believe," "may," "will," "continue," "anticipate," "intend," "expect," "should," "would," "could," "plan," "project," "potential," "seem," "seek," "future," "target" or other similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. These forward-looking statements include statements regarding the Company's order book and the Company's ability to convert it into actual sales, the Company's long-term strategy and future growth, the Company's battery plant and innovation center project in
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Lion believes that these risks and uncertainties include the following: any adverse changes in
These and other risks and uncertainties related to the businesses of Lion are described in greater detail in section 23.0 entitled "Risk Factors" of the Company's annual MD&A for the fiscal year 2021. Many of these risks are beyond Lion's management's ability to control or predict. All forward-looking statements included in this press release are expressly qualified in their entirety by the cautionary statements contained herein and the risk factors included in the Company's annual MD&A for the fiscal year 2021 and in other documents filed with the applicable Canadian regulatory securities authorities and the
Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under applicable securities laws, Lion undertakes no obligation, and expressly disclaims any duty, to update, revise or review any forward-looking information, whether as a result of new information, future events or otherwise.
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