Lightning eMotors reports less revenue, higher loss in Q1
LOVELAND — Lightning eMotors Inc., (NYSE: NEV) a provider of electric powertrains and medium-duty and specialty commercial electric vehicles, saw less revenue in the first quarter of 2023 than it saw in the same quarter a year prior and also a higher loss.
The Loveland-based company also signed an agreement with Yorkville Advisors Global LP for a $50 million pre-paid advance agreement, or PPA, to provide cash for expansion.
Results from the first quarter, which ended March 31, show revenue of $1.3 million, compared with $5.4 million in the same quarter of 2022. The net loss for the quarter was $23.4 million, or $4.89 per diluted share, compared with $10.8 million, or $2.86 per diluted share, a year ago. Zacks Consensus Estimate had projected a loss per share of $4.51.
First-quarter results were delayed because of issues over accounting for recall of defective batteries.
Still, co-founder and CEO Tim Reeser expressed optimism about the results.
“I’m very excited about the progress we made in Q1 on our portfolio transition. Customer feedback on our new Class 4 vehicles built on the GM platform has been very positive,” Reeser said in a written statement. “The large Macnab order announced Friday, plus sizeable orders for Type A school buses from Collins Bus Corp. are driving growth in our business in the near term. We are also seeing strong demand momentum for shuttle buses and other Class 4 zero-emission vehicles. Further, initial customer response to our Lightning Mobile DC Fast Charger has been tremendous. We believe we are on track to achieve our stated annual revenue guidance of $35 million to $50 million.
“As government incentive programs take hold, we are helping customers navigate the application process and are seeing orders. While focusing on the revenue growth opportunities before us, we also have taken actions to reduce our expense structure and secure new growth capital,” he said.
Reeser noted that the company bought back vehicles that had defective Romeo batteries and “many of those customers have placed new orders with us, and some have already received their new vehicles in Q2.”
David Agatston, chief financial officer, said that the agreement with Yorkville is intended to fund the company’s growth strategy. “We believe this funding commitment from Yorkville is a strong endorsement of Lightning’s ability to attract new capital and provide returns for investors,” he said.
Lightning may request advances of up to $2 million without further approval up to $50 million over 18 months. Amounts outstanding under each pre-paid advance will be reduced upon the issuance of common stock to Yorkville.
Lightning reported the sale of 53 units in the first quarter, down from 74 units a year ago.
Lightning stock closed at $3.70, down from its previous close of $4.28 or 13.3%.