$RIDE) Stories Fourth Quarter and Fiscal Yr 2022 Monetary Effects


LORDSTOWN, Ohio – March 6, 2023 (Investorideas.com Newswire) Lordstown Motors Corp. (Nasdaq: RIDE), an authentic apparatus producer (“OEM”) of electrical mild responsibility cars targeted at the business fleet marketplace, nowadays launched its fourth quarter and financial 12 months 2022 monetary effects and equipped a trade replace.

Fourth Quarter and Contemporary Trade Highlights

  • Foxconn Funding of as much as $170 million, matter to sure stipulations; preliminary $52 million funded
  • Stepped forward pre-development paintings at the new program in collaboration with Foxconn EV Ecosystem
  • Get started of industrial gross sales of the Staying powerTM, an electrical full-size pickup truck
  • Provider high quality and function problems have restricted manufacturing and gross sales; corrective movements underway
  • Finishing coins and temporary investments of $221.7 million, considerably in far more than earlier outlook
  • Lowered running loss pushed via spending self-discipline

Govt Observation

In This autumn 2022, we expanded and reinforced our partnership with Foxconn. We transformed our prior $100 million three way partnership into an immediate funding in Lordstown Motors of as much as $170 million, $52 million of which used to be funded in November 2022.

As in the past introduced, the preliminary Foxconn investment consisted of $22 million of Lordstown Motors Elegance A commonplace inventory for use for basic company functions and $30 million of our Sequence A most well-liked inventory restricted to investment advancement and design actions for a brand new electrical car program in collaboration with Foxconn and its EV ecosystem in addition to connected overhead. The remainder funding of as much as $117.3 million is composed of $47.3 million in commonplace inventory and as much as $70.0 in most well-liked inventory. The typical inventory will probably be bought following receipt of appropriate regulatory approvals, together with a evaluation via the Committee on International Funding in the USA, and matter to different stipulations. The most well liked inventory will probably be bought via Foxconn in keeping with reaching sure EV Program milestones to be agreed-upon via the events and matter to different stipulations. Upon final touch of the investments, Foxconn is anticipated to carry all of LMC’s remarkable most well-liked inventory and just about 18% of our commonplace inventory on a pro-forma foundation, and could have the best to designate two individuals to be added to LMC’s board of administrators.

We proceed to paintings collaboratively with Foxconn and the Mobility-in-Unity (“MIH”) Consortium at the pre-development paintings and car advancement procedure (“VDP”) deliverables for our subsequent platform and car program. The following platform and car program are key to Lordstown Motors’ long-term trade technique and are turning into a better portion of our Corporate’s center of attention.

The brand new car will most likely supply key elements and subsystems from Foxconn and MIH Consortium individuals and be constructed within the Foxconn EV Ohio meeting plant. “Our asset-light trade type and collaboration with the Foxconn EV ecosystem, together with MIH, will give you the alternative for Lordstown Motors to create successful EVs which are adapted to the desires of shoppers that use them for quite a lot of paintings programs, whilst gaining the price advantages of scale,” stated Edward Hightower, Lordstown Motors’ CEO & President.

Following complete homologation and certification, we started business gross sales of our Staying power BEV pick-up truck within the 4th quarter of 2022. In a while after our January manufacturing replace, we started to find and revel in a number of new efficiency and high quality problems with the cars coming off the manufacturing line and cars in procedure. A few of these problems have been found out via us or our providers, despite the fact that some have been skilled via our preliminary consumers. As our consumers are our best possible precedence, we made up our minds to briefly pause manufacturing as we labored with our provider community to root motive the problems, behavior further car, part, and instrument checking out, and as wanted, make updates to affected car elements and instrument. On this regard, we filed forms with the Nationwide Freeway Site visitors Protection Management (“NHTSA”) to voluntarily recall the Staying power to handle provider high quality problems. Efficiency problems are regularly found out as a completely new car with a number of new applied sciences starts running in new and other environments via consumers. The Corporate is diligently running with providers at the root motive research of each and every factor and possible answers, which in some instances would possibly come with section design adjustments, retrofits and instrument updates. Because of this, via February 2023, roughly 40 Staying power cars were finished or are in procedure and now we have bought a complete of six cars, of our deliberate preliminary batch of as much as 500 devices. We have now line of sight to the solution of the problems that resulted within the manufacturing pause and voluntary recollects, and within the upcoming weeks be expecting to announce when we will be able to resume manufacturing and deliveries.

This week, we will be able to be exhibiting the Staying power at NTEA Paintings Truck Week in Indianapolis. We will be able to additionally show an Staying power with business fleet-focused equipment from main producers and providers of oem apparatus. To supply our consumers with aftermarket provider and guaranty fortify, now we have entered into an settlement with a third-party supplier. We will be able to paintings with the supplier to collectively supply provider and guaranty paintings for the Staying power cars in key states, the place allowed via legislation. We plan to proportion extra at the strategic rollout with our provider spouse within the coming weeks.

We shared the tale of Lordstown’s long run and collaboration with Foxconn and MIH previous this 12 months at CES. We additionally plan to talk about our function within the rising Foxconn EV ecosystem later this month on the upcoming SXSW (South-by-Southwest) match in Austin, TX, right through their mobility, electrification, and innovation observe.

Fourth Quarter and Fiscal Yr 2022 Effects and First Quarter 2023 Outlook

We started to promote the Staying power overdue within the fourth quarter, recording gross sales of 3 cars and roughly $30 million in price of gross sales. Incorporated in price of gross sales have been $0.6 million of manufacturing prices, $8.3 million of depreciation on manufacturing apparatus and tooling we personal, and $21 million of fees associated with stock write-downs. Manufacturing prices consisted of direct fabrics at the cars bought in addition to production, guaranty accrual, supply and release connected prices. The $21 million in stock fees basically associated with our adjustment for stock got right through the duration to web realizable worth (“NRV”) and any other rate we took for extra stock readily available.

Running lack of $104.9 million incorporated $46.8 million in non-cash fees associated with asset impairments and write-downs, sped up inventory repayment (see hooked up schedules), the $21 million in stock fees referred to above, the initiation of depreciation on our belongings and tooling after being positioned in provider, totaling $8.5 million, together with a $1.2 million litigation accrual.

Promoting, basic and administrative (“SG&A”) bills have been $22.2 million for the quarter, together with $7.6 million in non-cash pieces for the write-off of a pay as you go royalty and sped up inventory repayment and $1.2 million of litigation accruals. The remainder $13.3 million contains $8.3 million in workforce {and professional} charges, $3.2 million in felony charges and insurance coverage premiums, and $1.9 million in different products and services and advertising expenditures. In comparison to the fourth quarter of 2021, workforce {and professional} charges have been down 39%, basically because of a vital aid in consulting fortify that has been declining for the reason that get started of 2022. Out of doors felony prices additionally proceed to lower in comparison to the fourth quarter of 2021, down $3.8 million. In overdue 2022 we renewed key insurance coverage insurance policies at considerably decrease charges, which resulted in a 23% aid in premiums. Different prices, basically advertising spend, have been 11% upper in comparison to the prior 12 months as promoting process will increase.

Analysis and advancement (“R&D”) bills have been $15.6 million within the quarter, together with $1.8 million in sped up inventory repayment, $10.6 million in workforce and consulting prices, and $3.2 million in instrument, different products and services and overhead. Within the fourth quarter of 2021, non-plant connected workforce and consulting prices have been $16.9 million, representing a 38% lower, as Staying power advancement and checking out expenditures declined going into the release of industrial manufacturing and gross sales. Freight prices have been down $1.4 million as opposed to the similar duration in 2021.

For fiscal 12 months 2022, SG&A bills have been $138.3 million, together with $33.9 million in litigation accruals, $25.6 million in NRV fees for the primary 9 months of 2022 ahead of reporting price of gross sales and $7.6 million for the write-off of a pay as you go royalty and sped up inventory repayment. The remainder SG&A contains $40.5 million for workforce {and professional} charges, $11.4 million of felony bills, $11.8 million of insurance coverage premiums and $7.2 million for different products and services and advertising expenditures. In comparison to 2021, outdoor felony charges reduced $23.9, whilst skilled charges and consulting bills have been decrease via $9.2 million, web of an build up in workforce prices. In part offsetting this stuff have been upper expenditures for products and services and advertising as we ready to release the Staying power, together with upper insurance coverage premiums representing just about a complete 12 months’s affect of upper premiums incurred with renewals in overdue 2021.

For the fiscal 12 months 2022, R&D bills have been $107.8 million, together with $1.8 million in sped up inventory repayment and an $18.4 million compensation of running bills via Foxconn associated with the sale of the Lordstown, Ohio plant. Prices related to running the plant of $33.3 million web of the compensation, have been incurred nearly totally previous to its sale in Would possibly 2022, in comparison to $57.1 million for all of 2021. The remainder R&D bills in 2022 encompass $55.2 million of workforce and consulting, $22.8 million of prototype elements and $9.8 million of instrument and different operational actions. Non-plant connected prices have been down in comparison to 2021 as advancement, checking out and different R&D paintings associated with the Staying power reduced as we approached business manufacturing and gross sales. Relative to 2021, prices related to workforce and consulting have been decrease via roughly 47%, prototype elements have been down 78% and freight declined 86%.

Different running pieces for the 12 months totaled $111.4 million, representing impairment fees on our long-lived belongings, of which $75 million of the rate used to be within the 1/3 quarter of 2022. The incremental impairment within the fourth quarter of 2022 used to be basically pushed via a lower within the Corporate’s inventory worth, which is a key metric used within the research. An extra rate used to be taken to put in writing down the worth of sure prepayments for stock which are for amounts we don’t watch for being ate up via the preliminary manufacturing batch of the Staying power, together with belongings associated with the rights to get admission to Common Motors portions.

On the finish of 2022, coins and temporary investments have been $221.7 million, roughly $18 million upper than the 1/3 quarter of 2022. The exchange in coins contains $42.7 million in coins used for operations, inclusive of a $21.1 million running capital funding, $2.9 million in capital expenditures, web of $1.1 million in asset sale proceeds, and $63.7 million in coins proceeds from the issuance of commonplace and most well-liked inventory, together with $52 million bought via Foxconn. Money and temporary investments on the finish of 2022 used to be nearly $57 million, or 34%, above the prime finish of our earlier outlook basically because of $13 million in price containment, $12.4 million in inventory gross sales underneath the ATM, $12 million associated with the timing of capital expenditures that may push into 2023, and $13 million in running capital, except for stock. The acquisition of much less stock than deliberate, along side decrease gross sales quantity, equipped roughly $3 million of the convenience.

We think to finish the primary quarter of 2023 with $150 to $170 million in coins and temporary investments, except for any further Foxconn investment, different fairness gross sales or contingent liabilities. Relative to the fourth quarter of 2022, within the combination, we watch for first quarter of 2023 SG&A and R&D to say no fairly, with out the sped up inventory repayment, litigation accruals and asset write-downs, as R&D modestly will increase with advancement process, offsetting the bigger lower in SG&A.

Please check with “Ahead Having a look Statements” beneath.

Convention name Knowledge

Lordstown Motors will host a convention name at 8:30 a.m. Japanese Time nowadays, March 6, 2023. The decision will also be accessed by way of a reside webcast this is obtainable at the Occasions web page of Lordstown Motors’ Investor Family members web page, in addition to the investor presentation deck, at https://investor.lordstownmotors.com/. An archive of the webcast will probably be to be had in a while after the decision.

About Lordstown Motors Corp.

Lordstown Motors is an electrical car (EV) OEM growing leading edge mild responsibility business fleet cars, with the Staying power all electrical pickup truck as its first car and being introduced within the Foxconn EV plant in Lordstown, Ohio. Lordstown Motors has company, engineering, analysis and advancement amenities in Farmington Hills, Michigan and Irvine, California. For more information discuss with www.lordstownmotors.com.

Ahead Having a look Statements

This free up contains ahead searching statements. Those statements are made underneath the “protected harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. Those statements could also be recognized via phrases reminiscent of “really feel,” “believes,” expects,” “estimates,” “initiatives,” “intends,” “must,” “is to be,” or the adverse of such phrases, or different related terminology. Ahead-looking statements are statements that don’t seem to be historic details. Such forward-looking statements don’t seem to be promises of long run efficiency and are matter to dangers and uncertainties, which might motive exact effects to range materially from the forward-looking statements contained herein because of many elements, together with, however no longer restricted to: our talent to proceed as a going worry, which calls for us to control prices, download important further investment to execute our marketing strategy, and our talent to lift such investment on an affordable timeline and with appropriate phrases; our talent to procure a strategic spouse for the Staying power and to lift enough capital, together with underneath the financing preparations now we have established, in an effort to spend money on tooling, proceed design improvements of the Staying power to allow scaled manufacturing and fund any long run cars we would possibly broaden; the price and different affects of contingent liabilities and availability of insurance plans and/or hostile exposure with admire to those issues, which can have a subject material hostile impact, whether or not or no longer a success or legitimate, on our liquidity place, marketplace worth of our inventory, coins projections, trade possibilities and skill and time frame to procure financing; our talent to successfully put in force and understand the advantages from our not too long ago finished and pending transactions and agreements with Foxconn, together with the extra investment transactions underneath the Funding Settlement, dated November 7, 2022, that are matter to last stipulations, our talent to make use of the designs, engineering knowledge and different foundational paintings of Foxconn, its associates, and different individuals of the Mobility-in-Unity (MIH) consortium in addition to different events, and all such events adhering to timelines to broaden, commercialize, industrialize, homologate and certify a car in North The united states, together with variables which are out of the events’ regulate, reminiscent of generation, innovation, ok investment, provide chain and different financial stipulations, competition, buyer call for, regulatory approval and different elements; our talent to execute our marketing strategy, enlargement plans, strategic alliances and different alternatives, together with advancement and marketplace acceptance of our deliberate merchandise; dangers associated with our restricted running historical past, the execution of our marketing strategy and the timing of anticipated trade milestones; our talent to effectively deal with recognized and unknown efficiency, high quality, provide chain and different launch-related problems, a few of that are or could also be subject material and feature or may just give upward thrust to a recall of our cars, and resume business manufacturing and gross sales of the Staying power on an affordable timeline and based on our marketing strategy; our talent to determine suitable provider relationships to fortify new car systems; our ongoing talent to procure car elements from our provide chain in enough amounts and of appropriate high quality to satisfy car necessities; the supply and value of uncooked fabrics and elements; our talent to effectively determine and put in force movements that may decrease the Staying power invoice of fabrics price, together with figuring out a strategic spouse to scale the Staying power; our talent to procure binding acquire orders and construct buyer relationships; our talent to ship at the expectancies of shoppers with admire to the pricing, efficiency, high quality, reliability, protection and potency of the Staying power and to give you the ranges of after sale provider, fortify and guaranty protection that they are going to require; the danger that our generation, together with our hub motors, don’t carry out as anticipated; the consequences of festival on our talent to marketplace and promote cars; our talent to draw and retain key workforce and rent further workforce; the tempo and intensity of electrical car adoption normally; our talent to procure and take care of highbrow belongings coverage and no longer infringe at the rights of others; our talent to procure required regulatory approvals and adjustments in regulations, regulatory necessities, interpretations of current legislation, governmental incentives and gasoline and effort costs; and the chance that we could also be adversely suffering from different financial, geopolitical, trade and/or aggressive elements, together with emerging rates of interest and the direct and oblique results of the battle in Ukraine.

Additional info on possible elements that might impact the monetary result of Lordstown Motors Corp. and its forward-looking statements is incorporated in its most up-to-date Shape 10-Ok and next filings with the Securities and Alternate Fee. All forward-looking statements are certified of their entirety via this cautionary observation. Any forward-looking statements talk most effective as of the date on which they’re made, and Lordstown Motors undertakes no legal responsibility to replace any forward-looking observation to mirror occasions or cases after the date of this free up.


Carter W. Driscoll, CFA

Colleen Robar

Extra Data:

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