Lucid Announces Second Quarter 2023 Financial Results, On Track for Annual Production Guidance of More Than 10,000 Vehicles
- Q2 revenue of
$150.9 million driven by customer deliveries of 1,404 vehicles in the quarter - Bolstered balance sheet to
$6.25 billion in total liquidity as ofJune 30, 2023 - Aston Martin selected Lucid to supply powertrain and battery system technology – contracts worth in excess of
$450 million – further validating Lucid's superior technology - Original pricing reinstated with the
Lucid Air All Wheel Drive starting at$82,400 - Finalized purchase agreement with
Government of Saudi Arabia - Start of production for the Lucid Air Sapphire and the
Lucid Air Pure Rear Wheel Drive on track for mid-September - The Lucid Gravity unveiling in November; start of production on track for late 2024
Lucid reported Q2 revenue of
"We're on track toward achieving our 2023 production target of more than 10,000 vehicles, but we recognize we still have work to do to grow our customer base. During our second quarter, we achieved several major milestones, including signing agreements to enter into a long-term strategic partnership with Aston Martin. Following a competitive process, their investment validates our award-winning technology and marks the first partnership for
"In the second quarter, we raised
Lucid will host a conference call for analysts and investors at
About
Lucid's mission is to inspire the adoption of sustainable energy by creating advanced technologies and the most captivating luxury electric vehicles centered around the human experience. The company's first car, the Air, is a state-of-the-art luxury sedan with a
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Trademarks
This communication contains trademarks, service marks, trade names and copyrights of Lucid Group, Inc. and its subsidiaries and other companies, which are the property of their respective owners.
Forward Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding financial and operating outlook and guidance, future capital expenditures and other operating expenses, ability to control costs, expectations and timing related to commercial product launches, including the Gravity SUV and the various Air models (including Sapphire), production and delivery volumes, expectations regarding market opportunities and demand for Lucid's products, the range and performance of Lucid's vehicles, plans and expectations regarding the Gravity SUV, including performance, driving range, features, specifications, potential impact on markets, plans and expectations regarding Lucid's software, estimate of the length of time Lucid's existing cash, cash equivalents and investments will be sufficient to fund planned operations, plans and expectations regarding its future capital raises and funding strategy, expectations regarding the restructuring plan, including with respect to timing, costs, and expected benefits, the timing of vehicle deliveries, future manufacturing capabilities and facilities, studio and service center openings, ability to mitigate supply chain and logistics risks, plans regarding the Phase 2 expansion of Lucid's AMP-1 factory, including timing, installed capacity and potential benefits, ability to vertically integrate production processes, future sales channels and strategies, future market launches and international expansion, including plans and expectations for the AMP-2 manufacturing facility in
Non-GAAP Financial Measures and Key Business Metrics
Condensed consolidated financial information has been presented in accordance with US GAAP ("GAAP") as well as on a non-GAAP basis to supplement our condensed consolidated financial results. Lucid's non-GAAP financial measures include Adjusted EBITDA and Free Cash Flow which are discussed below.
Adjusted EBITDA is defined as net loss before (1) interest expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) change in fair value of common stock warrant liability, (6) stock-based compensation and (7) restructuring charges. Adjusted EBITDA is a performance measure that Lucid believes provides useful information to Lucid's management and investors about Lucid's profitability. Free Cash Flow is defined as net cash used in operating activities less capital expenditures. Free Cash Flow is a performance measure that Lucid believes provides useful information to Lucid's management and investors about the amount of cash generated by the business after necessary capital expenditures.
These non-GAAP financial measures facilitate management's internal comparisons to Lucid's historical performance. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting, and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to Lucid's investors regarding measures of our financial condition and results of operations that Lucid uses to run the business and therefore allows investors to better understand Lucid's performance. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Lucid's operating performance. In addition, other companies, including companies in Lucid's industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Lucid's non-GAAP financial measures and key performance measures as tools for comparison. A reconciliation between GAAP and non-GAAP financial information is presented below.
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ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 2,775,339 |
$ 1,735,765 |
||
Short-term investments |
2,473,955 |
2,177,231 |
||
Accounts receivable, net |
20,570 |
19,542 |
||
Inventory |
849,781 |
834,401 |
||
Prepaid expenses |
73,455 |
63,548 |
||
Other current assets |
63,828 |
81,541 |
||
Total current assets |
6,256,928 |
4,912,028 |
||
Property, plant and equipment, net |
2,474,564 |
2,166,776 |
||
Right-of-use assets |
223,890 |
215,160 |
||
Long-term investments |
288,081 |
529,974 |
||
Other noncurrent assets |
171,589 |
55,300 |
||
TOTAL ASSETS |
$ 9,415,052 |
$ 7,879,238 |
||
LIABILITIES |
||||
Current liabilities: |
||||
Accounts payable |
$ 140,083 |
$ 229,084 |
||
Accrued compensation |
69,001 |
63,322 |
||
Finance lease liabilities, current portion |
9,653 |
10,586 |
||
Other current liabilities |
666,856 |
634,567 |
||
Total current liabilities |
885,593 |
937,559 |
||
Finance lease liabilities, net of current portion |
79,123 |
81,336 |
||
Common stock warrant liability |
139,259 |
140,590 |
||
Long-term debt |
1,994,391 |
1,991,840 |
||
Other long-term liabilities |
356,846 |
378,212 |
||
Total liabilities |
3,455,212 |
3,529,537 |
||
STOCKHOLDERS' EQUITY |
||||
Common stock, par value |
228 |
183 |
||
Additional paid-in capital |
14,904,370 |
11,752,138 |
||
|
(20,716) |
(20,716) |
||
Accumulated other comprehensive loss |
(9,950) |
(11,572) |
||
Accumulated deficit |
(8,914,092) |
(7,370,332) |
||
Total stockholders' equity |
5,959,840 |
4,349,701 |
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 9,415,052 |
$ 7,879,238 |
|
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Three Months Ended |
Six Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Revenue |
$ 150,874 |
$ 97,336 |
$ 300,306 |
$ 155,011 |
|||
Costs and expenses |
|||||||
Cost of revenue |
555,805 |
292,342 |
1,056,329 |
538,312 |
|||
Research and development |
233,474 |
200,381 |
463,277 |
386,457 |
|||
Selling, general and administrative |
197,748 |
163,812 |
366,518 |
386,971 |
|||
Restructuring charges |
1,532 |
— |
24,028 |
— |
|||
Total cost and expenses |
988,559 |
656,535 |
1,910,152 |
1,311,740 |
|||
Loss from operations |
(837,685) |
(559,199) |
(1,609,846) |
(1,156,729) |
|||
Other income (expense), net |
|||||||
Change in fair value of common stock warrant liability |
42,133 |
334,843 |
1,331 |
858,173 |
|||
Interest income |
39,525 |
2,911 |
79,530 |
2,911 |
|||
Interest expense |
(6,690) |
(7,189) |
(13,798) |
(14,908) |
|||
Other income (expense), net |
(928) |
8,277 |
(261) |
9,233 |
|||
Total other income, net |
74,040 |
338,842 |
66,802 |
855,409 |
|||
Loss before provision for income taxes |
(763,645) |
(220,357) |
(1,543,044) |
(301,320) |
|||
Provision for income taxes |
587 |
68 |
716 |
391 |
|||
Net loss |
(764,232) |
(220,425) |
(1,543,760) |
(301,711) |
|||
Net loss attributable to common stockholders, basic |
(764,232) |
(220,425) |
(1,543,760) |
(301,711) |
|||
Change in fair value of dilutive warrants |
— |
(334,843) |
— |
(858,173) |
|||
Net loss attributable to common stockholders, diluted |
$ (764,232) |
$ (555,268) |
$ (1,543,760) |
$ (1,159,884) |
|||
Weighted average shares outstanding attributable to common stockholders |
|||||||
Basic |
1,912,459,833 |
1,669,303,813 |
1,871,884,313 |
1,661,960,471 |
|||
Diluted |
1,912,459,833 |
1,686,815,404 |
1,871,884,313 |
1,684,328,007 |
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Net loss per share attributable to common stockholders |
|||||||
Basic |
$ (0.40) |
$ (0.13) |
$ (0.82) |
$ (0.18) |
|||
Diluted |
$ (0.40) |
$ (0.33) |
$ (0.82) |
$ (0.69) |
|||
Other comprehensive income (loss) |
|||||||
Net unrealized gains (losses) on investments, net of tax |
$ (2,999) |
$ (691) |
$ 1,036 |
$ (691) |
|||
Foreign currency translation adjustments |
586 |
— |
586 |
— |
|||
Total other comprehensive income (loss) |
(2,413) |
(691) |
1,622 |
(691) |
|||
Comprehensive loss attributable to common stockholders |
$ (766,645) |
$ (221,116) |
$ (1,542,138) |
$ (302,402) |
|
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Three Months Ended |
Six Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Cash flows from operating activities |
|||||||
Net loss |
$ (764,232) |
$ (220,425) |
|
$ (301,711) |
|||
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
Depreciation and amortization |
55,363 |
42,448 |
105,201 |
80,690 |
|||
Amortization of insurance premium |
10,865 |
7,425 |
21,128 |
14,924 |
|||
Non-cash operating lease cost |
6,448 |
4,848 |
12,278 |
8,952 |
|||
Stock-based compensation |
71,376 |
94,392 |
125,195 |
268,943 |
|||
Inventory and firm purchase commitments write-downs |
276,631 |
81,691 |
503,679 |
178,057 |
|||
Change in fair value of common stock warrant liability |
(42,133) |
(334,843) |
(1,331) |
(858,173) |
|||
Other non-cash items |
(8,654) |
1,149 |
(27,704) |
2,404 |
|||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
(17,987) |
(673) |
(978) |
1,608 |
|||
Inventory |
(93,808) |
(300,830) |
(447,962) |
(603,852) |
|||
Prepaid expenses |
(21,953) |
(14,064) |
(31,035) |
6,459 |
|||
Other current assets |
(3,705) |
17,426 |
18,488 |
(32,199) |
|||
Other noncurrent assets |
(82,421) |
(16,381) |
(109,758) |
(27,556) |
|||
Accounts payable |
(29,825) |
43,883 |
(95,999) |
49,596 |
|||
Accrued compensation |
(15,866) |
26,793 |
5,679 |
23,186 |
|||
Operating lease liabilities |
(5,875) |
(3,845) |
(11,712) |
(6,944) |
|||
Other current liabilities |
(50,591) |
51,484 |
(43,380) |
179,544 |
|||
Other long-term liabilities |
16,009 |
5,894 |
20,349 |
7,795 |
|||
Net cash used in operating activities |
(700,358) |
(513,628) |
(1,501,622) |
(1,008,277) |
|||
Cash flows from investing activities: |
|||||||
Purchases of property, plant and equipment |
(203,715) |
(309,818) |
(445,485) |
(494,900) |
|||
Purchases of investments |
(1,304,715) |
(1,419,223) |
(2,147,253) |
(1,419,223) |
|||
Proceeds from maturities of investments |
941,338 |
— |
1,982,489 |
— |
|||
Proceeds from sale of investments |
135,144 |
— |
148,388 |
— |
|||
Other investing activities |
(6,024) |
— |
(4,827) |
— |
|||
Net cash used in investing activities |
(437,972) |
(1,729,041) |
(466,688) |
(1,914,123) |
|||
Cash flows from financing activities: |
|||||||
Proceeds from issuance of common stock under Underwriting Agreement, net of issuance |
1,184,224 |
— |
1,184,224 |
— |
|||
Proceeds from issuance of common stock under 2023 Subscription Agreement, net of |
1,812,641 |
— |
1,812,641 |
— |
|||
Payment for short-term insurance financing note |
— |
(2,381) |
— |
(15,330) |
|||
Payment for finance lease liabilities |
(1,652) |
(1,200) |
(3,079) |
(2,401) |
|||
Proceeds from borrowings |
4,266 |
6,663 |
4,266 |
6,663 |
|||
Proceeds from exercise of stock options |
2,926 |
3,735 |
5,107 |
12,849 |
|||
Proceeds from employee stock purchase plan |
15,089 |
12,882 |
15,089 |
12,882 |
|||
Tax withholding payments for net settlement of employee awards |
(3,879) |
(8,976) |
(10,378) |
(191,241) |
|||
Payment for credit facility issuance costs |
— |
(6,631) |
— |
(6,631) |
|||
Net cash provided by (used in) financing activities |
3,013,615 |
4,092 |
3,007,870 |
(183,209) |
|||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
1,875,285 |
(2,238,577) |
1,039,560 |
(3,105,609) |
|||
Beginning cash, cash equivalents, and restricted cash |
901,595 |
5,430,988 |
1,737,320 |
6,298,020 |
|||
Ending cash, cash equivalents, and restricted cash |
$ 2,776,880 |
$ 3,192,411 |
$ 2,776,880 |
$ 3,192,411 |
|
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Adjusted EBITDA |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net loss (GAAP) |
$ (764,232) |
$ (220,425) |
$ (1,543,760) |
$ (301,711) |
|||
Interest expense |
6,690 |
7,189 |
13,798 |
14,908 |
|||
Interest income |
(39,525) |
(2,911) |
(79,530) |
(2,911) |
|||
Provision for income taxes |
587 |
68 |
716 |
391 |
|||
Depreciation and amortization |
55,363 |
42,448 |
105,201 |
80,690 |
|||
Change in fair value of common stock warrant liability |
(42,133) |
(334,843) |
(1,331) |
(858,173) |
|||
Stock-based compensation |
71,376 |
94,392 |
126,638 |
268,943 |
|||
Restructuring charges |
1,532 |
— |
24,028 |
— |
|||
Adjusted EBITDA (non-GAAP) |
$ (710,342) |
$ (414,082) |
$ (1,354,240) |
$ (797,863) |
Free Cash Flow |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net cash used in operating activities (GAAP) |
$ (700,358) |
$ (513,628) |
$ (1,501,622) |
$ (1,008,277) |
|||
Capital expenditures |
(203,715) |
(309,818) |
(445,485) |
(494,900) |
|||
Free cash flow (non-GAAP) |
$ (904,073) |
$ (823,446) |
$ (1,947,107) |
$ (1,503,177) |
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