Canoo (Nasdaq: GOEV), a Los Angeles-based mobility technology company developing breakthrough, purpose-built electric vehicles (EVs) with a proprietary and highly versatile multi-purpose platform architecture today reported results for the fourth quarter and full year 2020.
“Globally there are approximately 1.5 billion light vehicles and we believe that 80% of those will be replaced by EVs over the next 4 to 5 car generations. Canoo‘s technology gives us a blank canvas to reimagine how the EV fits into our changing auto ecosystem. We have focused on a use case approach to generate the largest possible total addressable market (‘TAM’) based off a common platform, our MPP1,” said Tony Aquila, Canoo‘s Executive Chairman. “We are building vehicles that are not burdened by legacy constraints and developing technologies and functional designs to build EVs for everyone. We believe we are the first OEM that is looking at the full lifecycle of the vehicle and building in multiple revenue touchpoints.”
Recent Business Highlights
-- Completed business combination with Hennessy Capital Acquisition Corp. IV on December 21, 2020, at which time Canoo became publicly listed on The Nasdaq Global Select Market. -- Unveiled its all-electric multi-purpose delivery vehicle to be priced starting at approximately $33,000.1 The vehicle is purposefully designed to maximize return on investment for customers. -- Announced diverse and globally experienced board of directors to help Canoo fulfill its mission of bringing EVs to everyone. -- Added key executives to help drive business strategy and growth. -- Added 48 patent filings and design registrations bringing the total active number of filings and registrations to 59. -- Revealed all-electric pickup with target delivery as early as 2023.
2020 Operational Highlights
-- Completed build of 32 vehicles including 13 drivable prototypes now conducting validation and real-world endurance testing. -- To date, conducted over 70 simulated and physical crash tests largely validating design integrity. -- Ongoing design and engineering of additional vehicle derivatives demonstrating the benefits of Canoo's unique, self-contained platform architecture.
2020 Financial Highlights
-- Cash and cash equivalents of $702.4 million as of December 31, 2020. -- GAAP Net loss and comprehensive loss of $89.8 million compared to a GAAP Net loss and comprehensive loss of $182.4 million in the prior year. The GAAP Net loss and comprehensive loss in 2020 included a $(115.4) million gain on fair value change of earnout right liability. -- Adjusted EBITDA of $(108.3) million compared to $(167.1) million in the prior year. -- Net cash used in operations of $107.1 million compared to $171.5 million in the prior year. -- Capital expenditures of $7.6 million compared to $22.1 million in the prior year.
Fourth Quarter Results
-- GAAP Net loss and comprehensive loss of $12.3 million compared to a GAAP Net loss and comprehensive loss of $42.7 million in the prior year period. The GAAP Net loss and comprehensive loss in the 4th quarter of 2020 included a $(115.4) million gain on fair value change of earnout right liability. -- Adjusted EBITDA of $(42.5) million compared to $(35.3) million in the prior year period. -- Net cash used in operations of $41.9 million compared to $43.7 million in the prior year period. -- Capital expenditures of $6.3 million compared to $3.9 million in the prior year period.
Business Outlook for the quarter ended March 31, 2021
Based upon preliminary, unaudited financial information, Canoo expects:
-- Operating Expenses (excluding stock-based compensation and depreciation): $45M - $50M -- Capital Expenditures: $10M - $12M
Conference Call Information
Canoo will host a conference call with a live webcast at 2:00 p.m. PT/5:00 p.m. ET today to discuss the results, followed by a question-and-answer period.
Those interested are invited to listen to the live webcast online here. A replay of the webcast will be available shortly afterwards and accessible here.
Date: Monday, March 29, 2021
Time: 2:00 p.m. PT / 5:00 p.m. ET
U.S. dial-in: 877-407-9169
International dial-in: 201-493-6755
A telephonic replay of the conference call will be available shortly after the conclusion of the call through April 12, 2021:
Toll-free replay number: 877-660-6853, International replay number: 201-612-7415, Replay ID: 13717729.
Canoo has developed breakthrough electric vehicles that are reinventing the automotive landscape with bold innovations in design and pioneering technologies. Distinguished by its experienced team — totaling over 400 employees from leading technology and automotive companies — Canoo has designed a modular electric platform purpose-built to deliver maximum vehicle interior space and adaptable to support a wide range of vehicle applications for consumers and businesses. Canoo has offices in Los Angeles and the Dallas metroplex area.
For more information, please visit www.canoo.com.
For Canoo press materials, including photos, please visit press.canoo.com.
For investors, please visit investors.canoo.com.
Non-GAAP financial measures
This press release includes certain adjusted financial measures (namely, EBITDA and Adjusted EBITDA) that are non-GAAP financial measures (“NGFMs”) as defined under Securities and Exchange Commission (the “SEC”) rules. Canoo believes these NGFMs provide useful information to investors as a supplement to its consolidated financial statements, which are prepared and presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
The presentation of these NGFMs is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These measures may be different from NGFMs used by other companies, because all companies may not calculate NGFMs in the same fashion. In addition, these NGFMs are not based on any comprehensive set of accounting rules or principles. NGFMs have limitations in that they do not reflect all the amounts associated with our results of operations as do the corresponding GAAP measures.
A reconciliation of the NGFMs measures included in this press release to the most comparable GAAP measure can be found in the tables included at the end of this press release.
EBITDA and Adjusted EBITDA
“EBITDA” is defined as net loss before interest expense, income tax expense or benefit, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for share-based compensation, restructuring charges, asset impairments, and other costs associated with exit and disposal activities, acquisition and related costs, changes to the fair value of contingent earnout shares liability, and any other one-time non-recurring transaction amounts impacting the statement of operations during the year. Adjusted EBITDA is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, GAAP. Canoo believes Adjusted EBITDA, when combined with net loss, and EBITDA, is beneficial to an investor’s complete understanding of its operating performance. Canoo believes that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating its performance, ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar NGFMs to investors. However, you should be aware that when evaluating EBITDA and Adjusted EBITDA, Canoo may incur future expenses similar to those excluded when calculating these measures. In addition, Canoo‘s presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Canoo‘s computation of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate EBITDA and Adjusted EBITDA in the same fashion.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. Canoo compensates for these limitations by relying primarily on its GAAP results and using EBITDA and Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate Canoo‘s business.