- Continued to execute our plan to ramp up hydrogen fuel cell
electric trucks (FCEVs) in 2024
- Wholesaled 40 FCEVs in Q1, all designated for end fleets,
exceeding high-end of guidance range
- Marked the second quarter of serial production of FCEVs;
Program-to-date, Nikola has wholesaled 75 FCEVs
- Green shoots in new markets like N.Y., meeting the demands of
fleet users beyond Calif.
- Expanded HYLA's North American reach. During the quarter, we
opened:
- HYLA hydrogen modular refueling stations in Ontario and near the Port of Long Beach, Calif.
- HYLA's first hydrogen refueling station in Alberta, Canada to support fleets along
the busy Edmonton to Calgary freight corridor
- Seeing opportunities in constructive green policies
- Completed first delivery of remediated BEV back to customer in
Q1
PHOENIX, May 7, 2024
/PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global
leader in zero-emissions transportation and energy supply and
infrastructure solutions, via the HYLA brand, today reported
financial results and business updates for the quarter ended
March 31, 2024.
"We continue to move forward rapidly and execute our plans. And
please keep that in mind – we are in the execution phase, not the
planning or concepting phase," said Steve
Girsky, President and CEO of Nikola. "Last quarter, I talked
about getting on the field with the first deliveries of our
hydrogen fuel cell electric trucks. Today, we are executing plays,
competing, and cultivating more green shoots as we expand upon
current markets and enter new ones."
Hydrogen Fuel Cell Electric Truck
At the end of Q1, we exceeded the high-end of the guidance range
by delivering 40 FCEVs, all designated for end fleets. That makes
75 wholesaled FCEVs in the first two quarters of serial production.
We're seeing green shoots with repeat and new fleets, some in new
markets such as N.Y. While our initial focus has been Calif. and
Canada, we can expand our reach to
meet the demands of end fleet users virtually anywhere in the
U.S.
Program-to-date, Nikola FCEVs have accumulated over 830,000
miles with an average fuel economy exceeding our target of 7.2
mi/kg. We're doing what it takes to delight prospective and
existing customers with the best possible
experience.
Energy
Our HYLA team is executing its Hydrogen Highway Plan, and we
remain on track. Previously we had committed to nine additional
HYLA refueling stations in Calif. by year-end 2024. Now we are
expecting to provide nine hydrogen fueling solutions by mid-year
2024 and 14 by year-end 2024. These solutions include modular
fuelers and partner stations in Calif., Canada and our home station
at our Coolidge, Ariz.
manufacturing facility. We want to emphasize that building the
hydrogen ecosystem requires industry wide collaboration for the
benefit of all. We need partners and they come in different forms
and stages of infrastructure development. The shared mission is to
build an open ecosystem accessible to all.
Constructive Green Policies
We maintained our dominant market share of HVIP
vouchers for Class 8 FCEVs, ending the quarter with 362 of 367
or 99% of the unredeemed vouchers that were requested in 2023
through March 2024. On the Class 8
BEV side, we ended Q1 with 85 unredeemed vouchers or 30%
market share. While HVIP is only one program, we're encouraged
by the progress in constructive green policies. Two in
particular, help us fund our business. CARB's Heavy-Duty Omnibus
Regulation allows us to monetize the NOx and particulate matter or
PM credits we generate from selling zero-emissions trucks on a
model year basis. We are pleased to confirm that Nikola has
executed its first sale agreement for credits generated for Model
Year 22 and revenue from this transaction will be recognized in Q2
2024. We expect future revenue from the sale of CARB credits to
grow over time and be meaningful.
Battery-Electric Truck
Lastly, we completed the first delivery of a remediated BEV in
Q1. We continue to prioritize returning BEVs to customers and
dealers and now expect to complete remediation of these units by
year-end 2024. Our ability to sell Nikola's on-hand inventory,
however, will be dependent upon future battery supply; we now
expect to opportunistically sell on-hand inventory for revenue in
2025.
We've also taken this opportunity to "future proof" the BEV 2.0,
as it now shares significant software commonality with the battery
and operating systems on the FCEV, allowing customers to receive
next-generation upgrades seamlessly over-the-air as they are
deployed. We've kept our fleet users front and center as we've
engineered over-the-air enhancements, including dynamic data
gathering for predictive diagnostics, improved truck performance
and field issue identification. We've also deployed new Advanced
Driver Assistance Systems (ADAS) features to effectively manage
powertrain demand in aggressive route conditions such as
mountainous driving.
First Quarter Financial Highlights
|
|
Three Months
Ended
March 31,
|
(In thousands, except
share and per share data)
|
|
2024
|
|
2023
|
Trucks
produced
|
|
43
|
|
63
|
Trucks
shipped
|
|
40
|
|
31
|
Total
revenues
|
|
$
7,497
|
|
$
10,677
|
Gross profit
(loss)
|
|
$
(57,575)
|
|
$
(22,697)
|
Gross
margin
|
|
(768) %
|
|
(213) %
|
Loss from
operations
|
|
$
(145,363)
|
|
$
(127,200)
|
Net loss from
continuing operations
|
|
$
(147,722)
|
|
$
(145,251)
|
Net loss
|
|
$
(147,722)
|
|
$
(169,094)
|
Adjusted EBITDA
(1)
|
|
$
(104,030)
|
|
$
(103,749)
|
Net loss from
continuing operations per share, basic and diluted
|
|
$
(0.11)
|
|
$
(0.26)
|
Non-GAAP net loss per
share, basic and diluted(1)
|
|
$
(0.09)
|
|
$
(0.22)
|
Weighted-average shares
outstanding, basic and diluted
|
|
1,335,877,351
|
|
549,689,436
|
|
(1) A reconciliation
of the non-GAAP versus GAAP information is provided below in the
financial statement tables in this press release.
|
Webcast and Conference Call Information
Nikola will host a webcast to discuss its first quarter results
and business progress at 7:30 a.m. Pacific
Time (10:30 a.m. Eastern Time)
on May 7, 2024. To access the
webcast, parties in the United
States should follow this
link: https://www.webcast-eqs.com/nikola20240507/en
The live audio webcast, along with supplemental information,
will be accessible on the Company's Investor Relations website at
https://nikolamotor.com/investors/news?active=events. A
recording of the webcast will also be available following the
earnings call.
About Nikola Corporation
Nikola Corporation's mission is clear: pioneering solutions for
a zero-emissions world. As an integrated truck and energy company,
Nikola is transforming commercial transportation, with our Class 8
vehicles, including battery-electric and hydrogen fuel cell
electric trucks, and our energy brand, HYLA, driving the
advancement of the complete hydrogen refueling ecosystem, covering
supply, distribution and dispensing. Nikola headquarters is based
in Phoenix, Arizona with a
manufacturing facility in Coolidge,
Arizona.
For more information visit our website Facebook
@nikolamotorcompany, Instagram @nikolamotorcompany, YouTube
@nikolamotorcompany, LinkedIn @nikolamotorcompany or X/Twitter
@nikolamotor.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of federal securities laws with respect to
Nikola Corporation (the "Company"), including statements relating
to: the Company's future financial and business performance,
business plan, strategy, focus, opportunities and milestones;
customer demand for trucks; the Company's beliefs regarding its
competition and competitive position; the Company's business
outlook; the Company's expectations regarding hydrogen refueling
solutions; expected fueling capacity of the modular refueling
stations; expectations related to the battery-electric truck
recall, including timing of battery replacement and truck
deliveries and sales; the Company's beliefs regarding the benefits
and attributes of its trucks, and customer experience; and
government incentives including CARB credits and expectations
regarding related revenue . These forward-looking statements
other than statements of historical fact, and generally are
identified by words such as "believe," "project," "expect,"
"anticipate," "estimate," "intend," "strategy," "future,"
"opportunity," "plan," "may," "should," "will," "would," and
similar expressions. Forward-looking statements are predictions,
projections, and other statements about future events based on
current expectations and assumptions and, as a result, are subject
to risks and uncertainties. Many factors could cause actual future
events to differ materially from the forward-looking statements in
this press release, including but not limited to: successful
execution of the Company's business plan; design and manufacturing
changes and delays, including shortages of parts and materials and
other supply challenges; general economic, financial, legal,
regulatory, political and business conditions and changes in
domestic and foreign markets; demand for and customer acceptance of
the Company's trucks and hydrogen refueling solutions; the results
of customer pilot testing; the execution and terms of definitive
agreements with strategic partners and customers; the failure to
convert LOIs or MOUs into binding orders; the cancellation of
orders; risks associated with development and testing of fuel cell
power modules and hydrogen storage systems; risks related to the
recall, including higher than expected costs, the discovery of
additional problems, delays retrofitting the trucks and delivering
such trucks to customers, supply chain and other issues that may
create additional delays, order cancellations as a result of the
recall, litigation, complaints and/or product liability claims, and
reputational harm; risks related to the rollout of the Company's
business and milestones and the timing of expected business
milestones; the effects of competition on the Company's business;
the Company's ability to raise capital; the Company's ability to
achieve cost reductions and decrease its cash usage; the grant,
receipt and continued availability of federal and state incentives;
and the factors, risks and uncertainties regarding the Company's
business described in the "Risk Factors" section of the Company's
Annual Report on Form 10-K, as amended, for the year ended December
31, 2023 filed with the SEC, in addition to the Company's
subsequent filings with the SEC. These filings identify and address
other important risks and uncertainties that could cause the
Company's actual events and results to differ materially from those
contained in the forward-looking statements. 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.
Use of Non-GAAP Financial Measures
This press release references Adjusted EBITDA and non-GAAP net
loss per share, basic and diluted, all of which are non-GAAP
financial measures and are presented as supplemental measures of
the Company's performance. The Company defines Adjusted EBITDA as
earnings before interest expense, taxes, depreciation and
amortization, stock-based compensation expense, and certain other
items determined by the Company. Non-GAAP net loss is defined as
net loss adjusted for stock-based compensation expense and certain
other items determined by the Company. Non-GAAP net loss per share,
basic and diluted is defined as non-GAAP net loss divided by
weighted average basic and diluted shares outstanding. These
non-GAAP measures are not substitutes for or superior to measures
of financial performance prepared in accordance with generally
accepted accounting principles in the
United States (GAAP) and should not be considered as an
alternative to any other performance measures derived in accordance
with GAAP.
The Company believes that presenting these non-GAAP measures
provides useful supplemental information to investors about the
Company in understanding and evaluating its operating results,
enhancing the overall understanding of its past performance and
future prospects, and allowing for greater transparency with
respect to key financial metrics used by its management in
financial and operational-decision making. However, there are a
number of limitations related to the use of non-GAAP measures and
their nearest GAAP equivalents. For example, other companies may
calculate non-GAAP measures differently or may use other measures
to calculate their financial performance, and therefore any
non-GAAP measures the Company uses may not be directly comparable
to similarly titled measures of other companies.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except
share and per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
Truck sales
|
$
7,418
|
|
$
10,055
|
Service and
other
|
79
|
|
622
|
Total
revenues
|
7,497
|
|
10,677
|
Cost of
revenues:
|
|
|
|
Truck sales
|
61,747
|
|
33,020
|
Service and
other
|
3,325
|
|
354
|
Total cost of
revenues
|
65,072
|
|
33,374
|
Gross
loss
|
(57,575)
|
|
(22,697)
|
Operating
expenses:
|
|
|
|
Research and
development (1)
|
39,497
|
|
61,806
|
Selling, general, and
administrative (1)
|
48,291
|
|
42,697
|
Total operating
expenses
|
87,788
|
|
104,503
|
Loss from
operations
|
(145,363)
|
|
(127,200)
|
Other income
(expense):
|
|
|
|
Interest expense,
net
|
(2,278)
|
|
(9,833)
|
Loss on debt
extinguishment
|
(784)
|
|
—
|
Other income,
net
|
860
|
|
190
|
Loss before income
taxes and equity in net loss of affiliates
|
(147,565)
|
|
(136,843)
|
Income tax
expense
|
—
|
|
—
|
Loss before equity
in net loss of affiliates
|
(147,565)
|
|
(136,843)
|
Equity in net loss of
affiliates
|
(157)
|
|
(8,408)
|
Net loss from
continuing operations
|
(147,722)
|
|
(145,251)
|
Discontinued
operations:
|
|
|
|
Loss from discontinued
operations
|
—
|
|
(23,843)
|
Net loss from
discontinued operations
|
—
|
|
(23,843)
|
Net
loss
|
$
(147,722)
|
|
$
(169,094)
|
|
|
|
|
Basic and diluted net
loss per share:
|
|
|
|
Net loss from
continuing operations
|
$
(0.11)
|
|
$
(0.26)
|
Net loss from
discontinued operations
|
$
—
|
|
$
(0.05)
|
Net loss
|
$
(0.11)
|
|
$
(0.31)
|
|
|
|
|
Weighted-average shares
outstanding, basic and diluted
|
1,335,877,351
|
|
549,689,436
|
|
(1)
Includes stock-based compensation as follows:
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Cost of
revenues
|
$
328
|
|
$
731
|
Research and
development
|
2,859
|
|
9,041
|
Selling, general, and
administrative
|
5,599
|
|
14,715
|
Discontinued
operations
|
—
|
|
61
|
Total stock-based
compensation expense
|
$
8,786
|
|
$
24,548
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands, except
share and per share data)
|
(Unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
2024
|
|
2023
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
345,637
|
|
$
464,715
|
Restricted cash and
cash equivalents
|
1,224
|
|
1,224
|
Accounts receivable,
net
|
23,865
|
|
17,974
|
Inventory
|
61,342
|
|
62,588
|
Prepaid expenses and
other current assets
|
37,241
|
|
25,911
|
Total current
assets
|
469,309
|
|
572,412
|
Restricted cash and
cash equivalents
|
31,386
|
|
28,026
|
Long-term
deposits
|
9,027
|
|
14,954
|
Property, plant and
equipment, net
|
484,471
|
|
503,416
|
Intangible assets,
net
|
84,010
|
|
85,860
|
Investment in
affiliate
|
56,905
|
|
57,062
|
Goodwill
|
5,238
|
|
5,238
|
Other assets
|
11,807
|
|
7,889
|
Total
assets
|
$
1,152,153
|
|
$
1,274,857
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
44,909
|
|
$
44,133
|
Accrued expenses and
other current liabilities
|
220,151
|
|
207,022
|
Debt and finance lease
liabilities, current
|
6,233
|
|
8,950
|
Total current
liabilities
|
271,293
|
|
260,105
|
Long-term debt and
finance lease liabilities, net of current portion
|
268,345
|
|
269,279
|
Operating lease
liabilities
|
5,266
|
|
4,765
|
Other long-term
liabilities
|
20,974
|
|
21,534
|
Total
liabilities
|
565,878
|
|
555,683
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
134
|
|
133
|
Additional paid-in
capital
|
3,804,974
|
|
3,790,272
|
Accumulated
deficit
|
(3,218,791)
|
|
(3,071,069)
|
Accumulated other
comprehensive loss
|
(42)
|
|
(162)
|
Total stockholders'
equity
|
586,275
|
|
719,174
|
Total liabilities
and stockholders' equity
|
$
1,152,153
|
|
$
1,274,857
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(147,722)
|
|
$
(169,094)
|
Less: Loss from
discontinued operations
|
—
|
|
(23,843)
|
Loss from continuing
operations
|
(147,722)
|
|
(145,251)
|
Adjustments to
reconcile net loss from continuing operations to net cash used in
operating activities:
|
|
|
|
Depreciation and
amortization
|
10,596
|
|
6,238
|
Stock-based
compensation
|
8,786
|
|
24,487
|
Equity in net loss of
affiliates
|
157
|
|
8,408
|
Revaluation of
financial instruments
|
826
|
|
(199)
|
Inventory
write-downs
|
20,044
|
|
2,275
|
Non-cash interest
expense
|
3,625
|
|
10,008
|
Loss on disposal of
assets
|
2,688
|
|
—
|
Other non-cash
activity
|
2,871
|
|
486
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(5,892)
|
|
4,299
|
Inventory
|
(17,788)
|
|
(5,905)
|
Prepaid expenses and
other current assets
|
(10,297)
|
|
(39,711)
|
Other
assets
|
(389)
|
|
(1,929)
|
Accounts payable,
accrued expenses and other current liabilities
|
11,819
|
|
(40,092)
|
Operating lease
liabilities
|
(763)
|
|
(414)
|
Other long-term
liabilities
|
5,836
|
|
1,278
|
Net cash used in
operating activities
|
(115,603)
|
|
(176,022)
|
Cash flows from
investing activities
|
|
|
|
Purchases and deposits
of property, plant and equipment
|
(16,458)
|
|
(50,517)
|
Proceeds from the sale
of assets
|
21,398
|
|
—
|
Net cash provided by
(used in) investing activities
|
4,940
|
|
(50,517)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from the
exercise of stock options
|
—
|
|
404
|
Proceeds from issuance
of shares under the Tumim Purchase Agreements
|
—
|
|
64,713
|
Proceeds from issuance
of common stock under Equity Distribution Agreement, net of
commissions paid
|
—
|
|
30,524
|
Proceeds from issuance
of convertible notes, net of discount and issuance costs
|
—
|
|
25,000
|
Repayment of debt and
promissory notes
|
(130)
|
|
(2,544)
|
Payment for Coupon
Make-Whole Premium
|
(1,747)
|
|
—
|
Payments on insurance
premium financing
|
(1,853)
|
|
(1,999)
|
Payments on finance
lease liabilities and financing obligation
|
(1,276)
|
|
(182)
|
Payments for issuance
costs
|
(49)
|
|
—
|
Net cash provided by
(used in) financing activities
|
(5,055)
|
|
115,916
|
Net increase (decrease)
in cash and cash equivalents, including restricted cash and cash
equivalents
|
(115,718)
|
|
(110,623)
|
Cash and cash
equivalents, including restricted cash and cash equivalents,
beginning of period
|
493,965
|
|
313,909
|
Cash and cash
equivalents, including restricted cash and cash equivalents, end of
period
|
$
378,247
|
|
$
203,286
|
|
|
|
|
Cash flows from
discontinued operations:
|
|
|
|
Operating
activities
|
$
—
|
|
$
(3,939)
|
Investing
activities
|
—
|
|
(1,772)
|
Financing
activities
|
—
|
|
(308)
|
Net cash used in
discontinued operations
|
$
—
|
|
$
(6,019)
|
Reconciliation of
GAAP Financial Metrics to Non-GAAP
|
(In thousands, except
share and per share data)
|
(Unaudited)
|
|
Reconciliation of
Net Loss from continuing operations to EBITDA and Adjusted
EBITDA
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
(in
thousands)
|
Net loss from
continuing operations
|
|
$
(147,722)
|
|
$
(145,251)
|
Interest expense,
net
|
|
2,278
|
|
9,833
|
Depreciation and
amortization
|
|
10,596
|
|
6,238
|
EBITDA
|
|
(134,848)
|
|
(129,180)
|
Stock-based
compensation
|
|
8,786
|
|
24,487
|
Loss on debt
extinguishment
|
|
784
|
|
—
|
Loss on disposal of
assets
|
|
2,688
|
|
—
|
Equipment purchase
cancellation
|
|
15,613
|
|
—
|
Revaluation of
financial instruments
|
|
826
|
|
(199)
|
Regulatory and legal
matters (1)
|
|
2,121
|
|
1,143
|
Adjusted
EBITDA
|
|
$
(104,030)
|
|
$
(103,749)
|
|
(1) Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with a short-seller article from
September 2020, and investigations and litigation related
thereto.
|
Reconciliation of
GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share,
basic and diluted
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
(in thousands, except
share and per share data)
|
Net loss from
continuing operations
|
|
$
(147,722)
|
|
$
(145,251)
|
Stock-based
compensation
|
|
8,786
|
|
24,487
|
Loss on debt
extinguishment
|
|
784
|
|
—
|
Revaluation of
financial instruments
|
|
826
|
|
(199)
|
Loss on disposal of
assets
|
|
2,688
|
|
—
|
Equipment purchase
cancellation
|
|
15,613
|
|
—
|
Regulatory and legal
matters (1)
|
|
2,121
|
|
1,143
|
Non-GAAP net
loss
|
|
$
(116,904)
|
|
$
(119,820)
|
|
|
|
|
|
Non-GAAP net loss per
share, basic and diluted
|
|
$
(0.09)
|
|
$
(0.22)
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted
|
|
1,335,877,351
|
|
549,689,436
|
|
(1) Regulatory and legal
matters include legal, advisory, and other professional service
fees incurred in connection with a short-seller article from
September 2020, and investigations and litigation related
thereto.
|
Recognition
of Cash flows to Adjusted Free Cash Flow
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
(in
thousands)
|
Most comparable GAAP
measure:
|
|
|
|
|
Net cash used for
operating activities
|
|
$
(115,603)
|
|
$
(176,022)
|
Net cash provided by
(used in) investing activities
|
|
4,940
|
|
(50,517)
|
Net cash provided by
(used in) financing activities
|
|
(5,055)
|
|
115,916
|
|
|
|
|
|
Non-GAAP
measure:
|
|
|
|
|
Net cash used for
operating activities
|
|
(115,603)
|
|
(176,022)
|
Purchases of property,
plant and equipment
|
|
(16,458)
|
|
(50,517)
|
Adjusted free cash
flow
|
|
$
(132,061)
|
|
$
(226,539)
|
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SOURCE Nikola Corporation