A rough road ahead for electric vehicle manufacturer Canoo Inc. as the company, with a manufacturing plant in Oklahoma City and a battery production facility in Pryor, announced a loss in the company’s third quarter.
“This will continue to be a difficult and critical period as we do everything we can to get the capital in place, bring jobs back online, and get back on track with our step-level manufacturing plan,” commented Tony Aquila, Investor, Executive
Chairman, and CEO.
Shares in Canoo dropped more than 15% in Wednesday’s trading.
While quarterly revenue totaled $900,000 and year-to-date revenue was $1.5 million, here’s how the losses stacked up for the EV maker that moved its headquarters from California to Texas and opened the Oklahoma City manufacturing plant.
Quarterly adjusted EBITDA was a loss of $37.7 million, despite a 2% improvement over a year earlier.
Adjusted net loss per share was 54%, while the firm noted it was a 67% improvement from one year ago.
“While we focus on our core markets we must continue to take
aggressive actions to consolidate our operations, reduce costs, and catch-up to our plan. This starts from the top led by a committed Executive team, which is willing to take short-term pay cuts for long-term incentives and believes in the value we create for our customers, associates and shareholders,” added Aquila.
Canoo’s quarterly cash outflow of was $31.3 million compared to $39.4 million in the second quarter, amounting to a 20.7% drop. It was also a 58.6% fall from the third quarter of 2023.
Below are the highlights of the 3Q report:
• As of September 30, 2024, we had cash, cash equivalents and restricted cash of $16 million.
• GAAP net income (loss) and comprehensive income (loss) of $3 million and $(112) million for the three and nine months ended September 30, 2024, compared to a
GAAP net loss and comprehensive loss of $(112) million and $(274) million for the three and nine months ended September 30, 2023. The GAAP net loss and
comprehensive loss for the three and nine months ended September 30, 2024 included a gain of $62 million and gain of $101 million on the fair value change of the
warrant and derivative liability, respectively.
• Adjusted EBITDA of $(38) million and $(125) million for the three and nine months ended September 30, 2024, compared to $(40) million and $(170) million for the
three and nine months ended September 30, 2023.
• Adjusted Net Loss of $(43) million and $(143) million for the three and nine months ended September 30, 2024, compared to $(46) million and $(187) million for the
three and nine months ended September 30, 2023.
• Adjusted EPS per share of $(0.54) and $(2.14) for the three and nine months ended September 30, 2024, compared to $(1.71) and $(8.34) for the three and nine months
ended September 30, 2023.
• Net cash used in operating activities totaled $110 million for the nine months ended September 30, 2024, compared to $191 million for the nine months ended
September 30, 2023.
• Net cash used in investing activities was $10 million during the nine months ended September 30, 2024, compared to $45 million during the nine months ended
September 30, 2023.
• Net cash provided by financing activities was $115 million during the nine months ended September 30, 2024, compared to $209 million during the nine months ended
September 30, 2023.
Q4 2024 Business Outlook
Based on our current projections, Canoo expects the following guidance for Q4, 2024:
• Cash Outflow – $30 million to $40 million
Canoo recently furloughed 30 workers from the Oklahoma City operations indicating they might not return to work until late January 2025.
In announcing the third quarter financial results, Canoo highlighted its accomplishments during the quarter.
• North America realignment and relocation of corporate headquarters from California to Texas
• Consolidating our facilities from six to three, which has and will continue to impact our workforce until we are back on track with our step level manufacturing
• Achieved final activation of Oklahoma City facility Foreign Trade Zone
• UK Market: Established legal entity, launched commercial operations, received regulatory Individual Vehicle Approval with less than 2% changes to bill of materials,
and signed service partners
• Commenced first pilot in the UK with one of the country’s largest fleet operators