While electric vehicle manufacturer Canoo announced it has installed manufacturing capacity at its Oklahoma City and Pryor operations, the company is still losing money….just not as much as it did a year ago.
It announced second quarter financial results late Monday showing adjusted net loss of $69.1 million while losses for the first half of the year totaled $141.1 million. Both were down from a year ago. Canoo lost $152.7 million in the second quarter of 2022 and $272.8 million in the first half of last year.
The company’s adjusted EBITDA was $62.3 million in the red in the second quarter and $129.4 million in the first six months of the year, compared to $149.8 million and $267.3 million respectively a year ago.
Canoo’s loss per share was 14 cents in the second quarter and 35 cents in the first half compared to 68 cents at the end of the second quarter 2022 and $1.22 concluding six months of business activity last year.
Canoo finished the second quarter with $5 million cash on hand. What’s to come in the second half of 2023?
The company anticipates adjusted EBITDA of $120 million to $140 million and capital expenditures of $70 million to $100 million.
In announcing the results, the company focused not so much on its financial losses but its movement toward production of EVs and other issues.
- SEC matter is settled
- Introduced a derivative of the Lifestyle Delivery Vehicle (LDV), the LDV 190
- Achieved installed manufacturing capacity at Oklahoma City and Pryor, Oklahoma locations
- Generated first revenues from vehicle deliveries and government contract
- Closed on Fortune 100 customer agreement to purchase vehicles for national fleet
“We are pleased to close the chapter involving the legacy SEC matter. Today we introduced the LDV 190, which has been in development for some time, including in customer trials,” said Tony Aquila, Chairman and CEO at Canoo.
He said Canoo’s facilities are nearing “substantial completion” and it has achieved a 20,000 unit run rate for the battery module line in Pryor and robotics and assembly line in Oklahoma City.”
And we closed another Fortune 100 customer agreement to purchase vehicles for its national fleet. We entered the revenue and income generation phase with the advancement of our contract with the Department of Defense, and we delivered vehicles to NASA, ” added Aquila.
Second Quarter & Recent Business Updates:
- Completed customer evaluations with LDV 130 with customized cargo use
- Completed annual summer testing in record 128 degree heat
- Completed all compliance activities for Federal Vehicle Motor Safety Standard certification and California Air Resources Board certification for LDV
- Will be employing a combination of in-house, hybrid and outsourced strategy in manufacturing to support our 20,000 unit per year run rate
- Signed agreements with the Cherokee Nation to invest thousands of dollars to help Canoo hire and train skilled workers for the battery module manufacturing in Pryor
- Contracted for up to $113 million of state of Oklahoma incentives to create 1,360 advanced manufacturing jobs in Oklahoma