Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Q4 2022 Earnings Presentation
15 slides from Workhorse's earnings presentation, Mar 1, 2023
Slide 1: Q4 and Full Year 2022 Earnings Call
Q4 and Full Year 2022 Earnings Call March 1, 2023 © Copyright 2023 Workhorse. Confidential & Proprietary | 1
Slide 2: Today's Presenters
Today’s Presenters Rick Dauch Bob Ginnan Stan March CEO CFO Vice President, Corporate Development • 27 years automotive industry • 22 plus years of senior finance and • 26 years executive experience across experience leadership experience multiple industrial sectors • 15 years serving in CEO roles •
Slide 3: Agenda
Agenda Introduction Business Update 4th Quarter Financials Full Year 2022 Financials 2023 Guidance Q1 2023 Goals / Summary Q&A
Slide 4: Disclaimer
Disclaimer Cautionary Note Regarding Forward Looking Statements The material in this document contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Liti
Slide 5: Key Operational Accomplishments
Key Operational Accomplishments Strengthened Organization & Systems Progress in Aerospace • All key leadership, engineering and operational positions filled • Completed successful field demonstrations of the HORSEFLY for two • Launched ERP common systems project, target transition in Q3 larger last
Slide 6: Product Portfolio Plan Update
Product Portfolio Plan Update W4 CC W750 Step-Van CL4, 5000-lb payload, 150-mile range CL4, 5000-lb payload, 150-mile range • Delivered 23 W4 CC vehicles in Q4 • Completed first pilot production • Delivered a total of 33 W4 CC units in 2022 • Expect to start production in Q2 • Expect to continue ram
Slide 7: Aerospace Update
Aerospace Update Horsefly™ Demo #1 Horsefly™ Demo #2 • 50 non-stop deliveries • 4 multi-aircraft “racetrack pattern” deliveries • 3 aircraft – 2 in nearly-constant autonomous operation (fly a square of about 1 mile and deliver at the departure point) • 2 points of origination • 2 linear deliveries 1
Slide 8: Workhorse Ranch: "Ready to Run"
Workhorse Ranch: “Ready to Run” ▪ MFG complex capacity 10,000 trucks/yr. by 2025 ▪ Multiple classes of EVs ▪ Dedicated battery storage facility World Class ▪ Contract manufacturing ▪ NVH Test Track EV & Drone ▪ EOL Dyno testing in Q1 ▪ Paint line in Q2 Manufacturing Sites in America’s Horsefly Field
Slide 9: Financial Summary Highlights
Financial Summary Highlights Fourth Quarter 2022 Audited Results Sales: • Increased $5 million due to the THREE MONTHS ENDED sale of W4 CC vehicles versus DECEMBER 31 C1000 reversals in 2021 $ millions 2022 2021 Sales, net of returns and allowances $ 3.4 $ (2.0) Cost of Sales: Cost of sales 21.2 99.
Slide 10: Financial Summary Highlights
Financial Summary Highlights Sales • Sales growth was driven by an increase in W4 CC sales in 2022 versus C1000 Full Year 2022 Audited Results returns in 2021 Cost of Sales TWELVE MONTHS ENDED • C1000 write-offs of $19.5 million DECEMBER 31 compared to $105.7 million in 2021 $ millions 2022 2021 • D
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights No Debt Full Year 2022 Audited Results DECEMBER 31 $99.3 million $ millions 2022 2021 Cash balance Cash and cash equivalents $ 99.3 $ 201.6 Accounts Receivable, net 2.1 0.1 Other Receivable 15.0 Expect Inventory, net 8.9 10.1 Prepaids and other Total Current Assets 14.2 139.
Slide 12: 2023 Guidance $75M – $125M
2023 Guidance “We expect to generate significant revenue growth in 2023 by selling trucks and drones.” $75M – $125M Expected 2023 revenue range 12 © Copyright 2023 Workhorse. Confidential & Proprietary | 12
Slide 13: Q1 2023 Priorities
Q1 2023 Priorities Execute Product Programs Ramp Up Production • Complete pilot production of W750 • Ramp production of W4 CC • Maintain W56 program timing and showcase • Begin production of W750 in Q2 vehicles to prospective customers • Continue manufacturing & shipping Tropos vehicles • Unveiling
Slide 14: "Stabilize, Fix and Grow"
“Stabilize, Fix and Grow” The 6 P’s: People, Products, Building the foundations for two profitable businesses Processes, Partners, Politics, Profits Progress to date: Profitably Grow Organically, M&A 15% Value Creation for ALL Stakeholders ▪ Associates Competitive Cost Structure, Common LEAN Systems
Slide 15: Questions?
Questions? 15