Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Q3 2023 Earnings Presentation
16 slides from Workhorse's earnings presentation, Nov 14, 2023
Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call November 14, 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 • 28 years automotive industry • 23 plus years of senior finance and • 27 years executive experience across experience leadership experience multiple industrial sectors • 16 years serving in CEO roles •
Slide 3: Agenda
Agenda Introduction Business Update Q3 Financials 2023 Guidance Q4 Priorities / Summary Q&A
Slide 4: Disclaimer
Disclaimer Cautionary Note Regarding Forward Looking Statements The discussions in this presentation contain 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 Securitie
Slide 5: Key Accomplishments
Key Accomplishments Advancing Commercial Vehicle Programs Achieving Milestones in Aero • Aero sells first aircraft systems • Resolved HVIP voucher issue with CARB for Class 4 vehicles in November • HorseFly unit sales to UPS and Valqari • Received two new grants, which total about $1.1 million, • Co
Slide 6: Approved CARB/HVIP Vouchers
Approved CARB/HVIP Vouchers Innovative, New Path to HVIP Vouchers • Previous model required Workhorse to work through GreenPower, new model allows Workhorse’s W4CC and W750 to list independently in HVIP and creates a path independent from GreenPower • Breakthrough achieved with CARB on November 8th
Slide 7: W4 CC and W750 Products
W4 CC and W750 Products W4 CC CL4, 5000-lb. payload, 150-mile range • First repeat orders from dealers in NY, CA • Demos with Commercial & Gov’t fleets • Multiple rear configurations & applications: • 12-16’ Box • Reefer • Utility and service trucks • Flatbed W750 Step Van CL4, 5000-lb. payload, 150
Slide 8: W56 Products
W56 Products W56 Stripped Chassis CL5-6, 13,500-lb. payload at 23,000 lb. GVW • >250,000-mile durability & systems testing completed • SORP August 28th, ramping to 2-3 units/day in Q4 • 100% of supplier parts are Production Part Approval Processed (PPAP) • 95% of production equipment installed & ope
Slide 9: Last mile fleet opportunities exist
Last mile fleet opportunities exist W56 Production Unit • Customer visits to UC in Q3 • W56 field demos in Q4 First W56 demo units delivered to CA fleets on 10/15 • Industrial Linen Service • Industrial Supplies Order-to-Delivery in 5-6 weeks • Includes custom upfit, paint, brand • Universally posit
Slide 10: Stables by Workhorse
Stables by Workhorse Continued execution of fleet electrification initiative to serve independent contractors and operators • Continuing to provide last mile package delivery service for FedEx Ground • Expanded route assignments by 20% • Seven W750 EV units now in the delivery fleet (~70%) • Adding
Slide 11: Aerospace Update
Aerospace Update WA4-100 HorseFly WA4-200 Falcon Humanitarian Assistance and • Sold & shipped first commercial units to UPS, Valqari Logistics Operations (HALO) • Selected by UPSFF for FAA 44807 certification testing • Demo units in operation internationally • Awarded 2 additional USDA grants for ~$
Slide 12: Financial Summary Highlights
Financial Summary Highlights Sales Third Quarter 2023 Unaudited Results Net sales increase was primarily driven by lower W4 CC sales offset by a reversal of the sales allowance recorded in lieu of HVIP voucher certification delays during the second quarter Cost of Sales Decrease in cost of sales was
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights Third Quarter 2023 Unaudited Results ($000s) 9/30/2023 12/31/2022 Cash & cash equivalents $ 38,866 $ 99,277 Accounts receivable net of reserves 7,424 2,079 No Debt Other receivables - 15,000 Inventory, net 40,783 8,850 Prepaid expenses and other 10,706 14,152 $38.9 Million T
Slide 14: 2023 Guidance Update
Financial Summary 2023 Guidance Update Revenue in the range of $10 million – $15 million • Q3 results and anticipated full year sales significantly impacted by HVIP voucher situation • Revised guidance in light of market disruption and delayed timing for access of our products to California market •
Slide 15: Q4 Priorities
Q4 Priorities Advance Product Roadmaps Continue Aerospace Progress • Complete HVIP certification for W56 • Secure additional P.O.s with last-mile customers • Ramp up W56 and W750 production • Complete farmland scanning and earn additional • Continue electrification of Stables fleet USDA partnership
Slide 16: Pioneering the transition to zero emission commercial vehicles!
Pioneering the transition to zero emission commercial vehicles!