Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Q3 2022 Earnings Presentation
16 slides from Workhorse's earnings presentation, Nov 8, 2022
Slide 1: Q3 2022 Earnings Call
Q3 2022 Earnings Call November 8, 2022
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 3nd Quarter Financials 2022 Guidance Q&A 3
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 Accomplishments Over the Past Quarter
Key Accomplishments Over the Past Quarter Completed Hiring of Senior Leadership Team Progress in Aerospace • Hired VP Sales & Marketing and three regional U.S. sales leads • Final flight testing for HorseflyTM underway with 70+ years of CV industry experience • Developed new HALO drone in less than
Slide 6: Organizational Update
Organizational Update Completed Hiring of Field Sales Team • Hired Christina Ameigh as VP, CV Sales and Marketing. Spent last 13 years with Volvo Truck, with latest assignment she was responsible for VT’s Electromobility sales across North America • Hired three regional U.S. sales leads with combine
Slide 7: Product Portfolio Plan Update
Product Portfolio Plan Update W4 CC W750 Van CL4, 5000-lb. payload, 150-mile range CL4, 5000-lb. payload, 150-mile range • Built & sold 10 W4 CC vehicles in Q3 • Part sourcing complete • Continue to build & ship W4 CCs in Q4 • Assembly layout 90% complete • Production ramps up through balance of 202
Slide 8: Workhorse Ranch: "Ready to Run"
Workhorse Ranch: “Ready to Run” Upgrade complete Assembly Ready Now! Dynamometer install Q1 ‘23 Upgrades complete Warehouse / Factory 163K ft2 Future Vehicle Storage Lot Workhorse Customer Experience Center Battery Storage & Factory Maintenance Opened Q4 ‘21 Construction complete In use Q2 ‘22 212K
Slide 9: Aerospace Update
Aerospace Update • Final HorseflyTM flight-testing nearing • Humanitarian Assistance and Logistics completion (30’ winch,10-lbs,10-mile range) Operations (HALO) • Conducted field testing with ODOT and OSU • New family of drones driven by end customer requirements in North America and Europe • Multip
Slide 10: Stables & Stalls
Stables & Stalls Launched fleet electrification platform to serve independent contractors and operators • Leased a maintenance and service facility, or ‘Stable,’ adjacent to FedEx Lebanon distribution facility and installing 10 Level 2 EV chargers in Q4, the ‘Stalls’ • Created a subsidiary that owns
Slide 11: Financial Summary Highlights
Financial Summary Highlights Third Quarter 2022 Unaudited Results Sales Three Months Ended Nine Months Ended • Net sales growth was driven by W4 CC sales and the September 30, September 30, launch of Stables & Stalls 2022 2021 2022 2021 Sales, net of returns and allowances $ 1,548,798 $ (576,602) $
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights Third Quarter 2022 Unaudited Results September 30, 2022 December 31, 2021 No Debt Assets Current assets: Cash and cash equivalents $ 120,117,862 $ 201,647,394 Accounts receivable, less allowance for credit losses of zero as of September 30, 2022 $120 million cash balance and
Slide 13: 2022 Guidance – $15M – $25M
Financial Summary 2022 Guidance 100 – 200 $15M – $25M Vehicles Revenue Reaffirming Revenue Guidance Workhorse expects to manufacture and sell between 100-200 vehicles and generate between $15-25 million in revenue for calendar year 2022, assuming current supply chain lead times remain unchanged. 13
Slide 14: Q4 Priorities
Q4 Priorities Execute Product Programs Ramp Up Production • Complete pilot production of W750 • Continue ramp up of W4 CC production • Maintain W56 program timing • Begin manufacturing for Tropos 3-year contract • Complete C1000 testing • Finalize drone manufacturing layouts • Complete Horsefly and
Slide 15: Workhorse Accomplishments – last 12 months
Workhorse Accomplishments – last 12 months Strengthened Organization Resolved Legacy Issues • Experienced corporate leadership team • Dropped USPS lawsuit • Doubled CV and Aero technical staffs • Settled Class Action and Derivative lawsuits • LEAN trained operations staff (MFG, SC, Quality) • Auto,
Slide 16: Workhorse – "Ready to Run"
Workhorse – “Ready to Run” 16