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Nikola Corporation Reports Second Quarter Results

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PHOENIX, Aug. 4, 2020 /PRNewswire/ -- Nikola Corporation (NASDAQ:NKLA), a global leader in zero-emissions transportation systems, today reported financial results for the second quarter of 2020.

"In the second quarter of 2020, Nikola met predetermined milestones on our journey toward becoming the zero-emissions transportation leader in the global heavy truck market," commented Mark Russell, Nikola's Chief Executive Officer.  

Steps towards achieving this goal include completing a reverse merger with VectoIQ and a related PIPE offering, providing an additional $616.7 million of cash on the balance sheet to support Nikola's further product development, and the buildout of manufacturing infrastructure.

Product development is on track to meet the established timeline for the start of production of the Nikola Tre in Q4 2021.  Initial units will be produced at the Ulm, Germany facility, where modifications are currently underway.  Once complete, this facility will be capable of producing up to 10,000 units per year. 

In addition to the buildout of Nikola's production capacity in Ulm, Germany, on July 23, 2020, Nikola broke ground on its greenfield manufacturing facility in Coolidge, Arizona.  Once completed, the Coolidge manufacturing facility will be capable of producing up to 35,000 trucks per year at full capacity on two shifts. Phase one of this construction is expected to be complete by Q4 2021.

Other Key Business Highlights

  • Signed a purchase order with Nel for electrolysis equipment capable of producing up to 40,000kg of H2 per day.
  • Nikola Tre production test units are underway in Ulm, Germany and are scheduled to be complete in Q4 2020.
  • Nikola called for redemption of outstanding public warrants in Q3 2020.

Purchase Order for Electrolysis Equipment from Nel

In June, Nikola signed a purchase order with Nel ASA (Nel, OSE: NEL) for 85-megawatts of alkaline electrolyzer capacity. This purchase order will support up to five of Nikola's hydrogen generating and dispensing stations. At capacity, these stations are expected to generate up to 40,000 kgs of hydrogen fuel each day, which would support up to 1,100 Nikola Two FCEV trucks.

Nikola's hydrogen fueling and battery charging activities are being overseen by the newly-hired President of Nikola Energy, Pablo Koziner. Koziner is a 19-year veteran of Caterpillar, and most recently served as Vice President of CAT Electric Power and as President of Solar Turbines.

Nikola's Ulm, Germany Manufacturing Facility

During the second quarter, Nikola and Iveco began the buildout of an assembly facility dedicated to Nikola Tre at CNHI / Iveco's Ulm, Germany Manufacturing Complex. Once completed, this facility will be capable of producing up to 10,000 trucks per year, and will produce the first Nikola Tre BEV trucks to be delivered to customers in the U.S.

Upon completion of Nikola's greenfield manufacturing facility in Coolidge, Arizona, the Ulm facility will be utilized to manufacture and supply trucks to the European market.

Ulm, Germany Before

 

Ulm, Germany After

Coolidge Manufacturing Facility

On July 23, Nikola broke ground on phase one of the U.S. manufacturing facility in Coolidge, Arizona. Nikola anticipates phase one of the manufacturing facility will be complete by Q4 2021. Nikola is working with Walbridge, the leading U.S. automotive facility construction organization.

Nikola's manufacturing facilities buildout is being overseen by Mark Duchesne, Nikola's newly hired Head of Global Manufacturing. Duchesne is a 5-year veteran of Tesla and a 22-year veteran of Toyota. Mark oversaw the design and development of the innovative Model S and Model X production lines at Tesla, and at Toyota, he was instrumental in the design and development of a $900M greenfield facility.

Nikola Calls for Redemption of Warrants

On July 22, Nikola issued a notice of redemption for its public warrants. By calling the public warrants for redemption, Nikola expects to raise an additional $264.5 million in cash through the exercise of the 23 million outstanding public warrants at an exercise price of $11.50. As of July 30, 2020, 18.1 million warrants (approximately 79% of all outstanding public warrants) had been exercised, providing Nikola with an additional $208 million of cash on the balance sheet to date.

Effects of COVID-19

Throughout the unprecedented disruption caused by COVID-19, Nikola's management team has strived to advance its mission of achieving zero-emission transportation while maintaining the health and safety of our employees. The global pandemic caused disruption in Nikola's supply chain, but mitigation efforts are underway to reduce the resulting risk to production timelines. At this time, we believe Nikola's long-term objectives will be materially unaffected by COVID-19.

Second Quarter Financial Highlights

(In thousands, except share and per share data)

Q2 2020


Q2 2019


Q2 2020 YTD


Q2 2019 YTD

Loss from operations

$       (86,642)



$       (17,209)



$    (118,657)



$       (47,045)


Net loss

$

(86,643)



$

(16,766)



$

(119,806)



$

(46,863)


Adjusted EBITDA (1)

$

(46,978)



$

(15,516)



$

(76,215)



$

(44,002)


Net loss per share, basic and diluted(2)

$

(0.33)



$

(0.06)



$

(0.46)



$

(0.18)


Non-GAAP net loss per share, basic and diluted(1)(2)(3)

$

(0.16)



$

(0.06)



$

(0.28)



$

(0.17)


Weighted-average shares outstanding, basic

303,785,616



260,406,343



287,822,558



260,406,343


 

(1)

A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this press release.

(2)

Since the company was in net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share.

(3)

Non-GAAP net loss per share is defined as net loss adjusted for stock-based compensation expense and premium paid on repurchase of redeemable convertible preferred stock, divided by weighted average basic shares outstanding.

Business Outlook

Nikola intends to begin fleet testing Tre BEV units in 2021 with select customers and partners. The data received from the fleet testing program will be critical as we move toward low volume production of the Nikola Tre BEV.  Management is optimistic as we continue to achieve milestones toward our greater goal of becoming the leader in the zero-emissions transportation industry.

Webcast Information

Nikola will host a webcast  to discuss the results at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on August 4, 2020. To access the webcast, parties in the United States should follow this link: https://webcasts.eqs.com/register/nikolacorp2020080416_en/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 is a vertically integrated zero-emissions transportation systems solution provider that designs and manufactures state-of-the-art battery-electric and hydrogen, or H2, fuel cell electric vehicles, electric vehicle drivetrains, energy storage systems, and hydrogen fueling stations. Nikola's core product offering is centered around its battery-electric vehicle, or BEV, and hydrogen fuel cell electric vehicle, or FCEV, Class 8 semi-trucks.

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 performance; expected timing of manufacturing facility buildout and production capacity at such facilities; expectations regarding the Company's hydrogen fuel station capacity; plans for fleet testing and utilizing data from such testing; expectations regarding the redemption of public warrants; and the effect of COVID-19 on the Company's business.  These forward-looking statements 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 that are 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 the factors, risks and uncertainties regarding the Company's business described in the "Risk Factors" section of the Company's current report on Form 8-K, as amended, filed with the Securities and Exchange Commission (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, a non-GAAP financial measure. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items the Company believes are not indicative of its core operating performance. Adjusted EBITDA is not a substitute 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 Adjusted EBITDA 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.

Non-GAAP net loss and Non-GAAP net loss per share basic and diluted are presented as supplemental measures of the Company's performance. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items the Company believes are not indicative of its core operating performance. 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.

 

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)



Three Months Ended
June 30,


 Six Months Ended
June 30,


2020


2019


2020


2019

Solar revenues (1)

$

36



$

13



$

95



$

137


Cost of solar revenues (1)

30



24



72



86


Gross profit (loss)

6



(11)



23



51


Operating expenses:








Research and development (2)

42,501



11,854



66,619



35,251


Selling, general, and administrative (2)

44,147



5,344



52,061



11,845


Total operating expenses

86,648



17,198



118,680



47,096


Loss from operations

(86,642)



(17,209)



(118,657)



(47,045)


Other income (expense):








Interest income, net

23



338



87



671


Revaluation of Series A redeemable convertible preferred stock warrant liability



98





(495)


Loss on forward contract liability





(1,324)




Other income (expense), net

(23)



9



90



10


Loss before income taxes

(86,642)



(16,764)



(119,804)



(46,859)


Income tax expense

1



2



2



4


Net loss

$

(86,643)



$

(16,766)



$

(119,806)



$

(46,863)


Premium paid on repurchase of redeemable convertible preferred stock

$

(13,407)



$



$

(13,407)



$


Net loss attributable to common stockholders, basic and diluted

$

(100,050)



$

(16,766)



$

(133,213)



$

(46,863)


Net loss per share attributable to common stockholders, basic and diluted

$

(0.33)



$

(0.06)



$

(0.46)



$

(0.18)


Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted

303,785,616



260,406,343



287,822,558



260,406,343


 

(1)

Solar installation projects are not related to our primary operations and are expected to be discontinued.

(2)

Includes stock-based compensation as follows:

 


Three Months Ended June 30,


Six Months Ended June 30,


2020


2019


2020


2019

Research and development

$

2,880



$

155



$

3,238



$

305


Selling, general, and administrative

35,347



1,279



36,302



2,282


Total stock-based compensation expense

$

38,227



$

1,434



$

39,540



$

2,587


 

 

 

CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)



June 30,


December 31,


2020


2019


(Unaudited)



Assets




Current assets




Cash and cash equivalents

$

698,386



$

85,688


Restricted cash and cash equivalents

8,896




Accounts receivable, net

424



770


Prepaid in-kind services

60,000




Prepaid expenses and other current assets

4,672



4,423


Total current assets

772,378



90,881


Restricted cash and cash equivalents



4,144


Long-term deposits

10,328



13,223


Property and equipment, net

59,856



53,378


Intangible assets, net

62,481



62,513


Goodwill

5,238



5,238


Prepaid in-kind services and other assets

14,759



53


Total assets

$

925,040



$

229,430


Liabilities and stockholders' equity




Current liabilities




Accounts payable

7,575



5,113


Accrued expenses and other current liabilities

13,952



11,425


Customer deposits

4,982




Term note, current

4,100




Total current liabilities

30,609



16,538


Term note



4,100


Other long-term liabilities

11,762



12,212


Deferred tax liabilities, net

1,074



1,072


Total liabilities

43,445



33,922


Commitments and contingencies (Note 11)




Stockholders' equity




Preferred stock, $0.00010 par value, 150,000,000 shares authorized, no shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively




Common stock, $0.00010 par value, 600,000,000 shares authorized, 360,910,639 and 270,826,092 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively

36



27


Additional paid-in capital

1,189,845



383,961


Accumulated deficit

(308,286)



(188,480)


Total stockholders' equity

881,595



195,508


Total liabilities and stockholders' equity

$

925,040



$

229,430


 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)



Six Months Ended June 30,


2020


2019

Cash flows from operating activities




Net loss

$

(119,806)



$

(46,863)


Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

2,812



446


Stock-based compensation

39,540



2,587


Revaluation of Series A redeemable convertible preferred stock warrant liability



495


Deferred income taxes

2



4


Non-cash in-kind services

17,241




Loss on forward contract liability

1,324




Changes in operating assets and liabilities:




Accounts receivable, net

346



(206)


Prepaid expenses and other current assets

(1,204)



(816)


Accounts payable and accrued expenses and other current liabilities

9,068



(5,336)


Customer deposits

4,892




Other long-term liabilities



(107)


Net cash used in operating activities

(45,785)



(49,796)


Cash flows from investing activities




Purchases of property and equipment

(3,857)



(4,311)


Deposits for property and equipment

(2,446)



(4,288)


Cash paid towards build-to-suit lease



(11,826)


Net cash used in investing activities

(6,303)



(20,425)


Cash flows from financing activities




Proceeds from issuance of Series D redeemable convertible preferred stock, net of issuance costs paid

50,349




Business Combination and PIPE financing, net of issuance costs paid

616,736




Proceeds from the exercise of stock options

1,884




Proceeds from landlord of finance lease

889




Payments to landlord for finance lease

(320)




Proceeds from note payable

4,134




Payment of note payable

(4,134)




Net cash provided by financing activities

669,538




Net increase (decrease) in cash and cash equivalents, including restricted cash

617,450



(70,221)


Cash and cash equivalents, including restricted cash, beginning of period

89,832



173,956


Cash and cash equivalents, including restricted cash, end of period

$        707,282



$

103,735


 

 

Reconciliation of GAAP Financial Metrics to Non-GAAP
(In thousands, except share and per share data)
(Unaudited)


Reconciliation of Net Loss to EBITDA and Adjusted EBITDA




Three Months Ended June 30,


Six Months Ended June 30,



2020


2019


2020


2019



(in thousands)

Net loss


$

(86,643)



$

(16,766)



$

(119,806)



$

(46,863)


Interest income, net


(23)



(338)



(87)



(671)


Income tax expense (benefit)


1



2



2



4


Depreciation and amortization


1,460



250



2,812



446


EBITDA


(85,205)



(16,852)



(117,079)



(47,084)


Stock-based compensation


38,227



1,434



39,540



2,587


Revaluation of Series A redeemable convertible preferred stock warrant liability




(98)





495


Loss on forward contract liability






1,324




Adjusted EBITDA


$

(46,978)



$

(15,516)



$

(76,215)



$

(44,002)


 

 

 

Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, basic and diluted




Three Months Ended June 30,


Six Months Ended June 30,



2020


2019


2020


2019



(in thousands)

Net loss attributable to common stockholders, basic and diluted


$

(100,050)



$

(16,766)



$

(133,213)



$

(46,863)


Stock-based compensation


38,227



1,434



39,540



2,587


Premium paid on repurchase of redeemable convertible preferred stock


13,407





13,407



$


Non-GAAP net loss


$

(48,416)



$

(15,332)



$

(80,266)



$

(44,276)


Non-GAAP net loss per share, basic and diluted


$

(0.16)



$

(0.06)



$

(0.28)



$

(0.17)


Weighted average shares outstanding, basic and diluted


303,785,616



260,406,343



287,822,558



260,406,343


 

Investor Inquiries Contact: investors@nikolamotor.com

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/nikola-corporation-reports-second-quarter-results-301106017.html

SOURCE Nikola Corporation

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