Lordstown Motors Reports Fourth Quarter and Fiscal 2020 Financial Results

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LORDSTOWN, Ohio, March 17, 2021 (GLOBE NEWSWIRE) – Lordstown Motors Corp. (Nasdaq: DRIVE), (“Lordstown Motors”), a leader in electric light trucks focused on the commercial fleet market, today released its fourth quarter and full year 2020 financial results and provided a business outlook.

Key Company Highlights

  • Reported net loss of $ 101 million for fiscal 2020 and $ 630 million in cash at the end of 2020; the exercise of the warrants in January 2021 resulted in an additional $ 82 million in cash.
  • The schedule until the start of production (SoP) in September 2021 remains on track, with the construction of a beta prototype underway and the first beta vehicles expected to be ready by the end of March; vehicles to send for durability, crash, validation and lighting testing with various partners and to early customers for feedback.
  • Interest in the all-electric Lordstown Endurance pickup truck remains strong; move towards agreements with fleet management companies to work towards obtaining purchase commitments from their customers and direct sales to fleet customers.
  • Recently announced ARI / Holman as one of the first clients to engage with Lordstown Motors on a specific multi-year co-marketing, vehicle purchasing and fit-out agreement.
  • Announcement of a range of investment spending planned for 2021 of 250 to 275 million dollars to (1) create factory capacity to be able to produce 60,000 vehicles per year in response to greater Endurance interest than initially planned, (2) accelerate the development of the company’s second vehicle, and (3) create additional tools to integrate components to create a 5-star rated vehicle against collisions and for some higher supply chain costs associated with COVID-19.
  • Accelerate the development of Lordstown Motors’ second vehicle, a pickup truck, with a target of SoP in the second half of 2022; Expect to unveil a demo vehicle in the summer of 2021.
  • Currently entering the due diligence phase, which the company hopes to complete in the second quarter of 2021, of an Advanced Technology Vehicle Manufacturing (“ATVM”) loan opportunity; if successful, Lordstown Motors could potentially enter into term loan negotiations at that time.

Executive commentary

“We are extremely excited and proud to be so close to delivering our first beta vehicles, which we believe should consolidate and drive customer demand and commitments. Beta production reflects our innovative engineering, increasingly automated plant and unique hub wheel and battery pack capabilities, ”said Steve Burns, Founder, President and CEO of Lordstown Motors. “Commercial fleet customers are expected to start providing feedback on beta versions in 2Q21, around the time we unveil the first prototype of our second vehicle, a pickup truck, which operates our Endurance skateboard. We anticipate that our participation in the upcoming San Felipe 250 race in Baja Mexico will provide another validation point for our unique and innovative vehicle. We remain on track to start Endurance production at the end of September and believe that the electrification of the commercial fleet and other end mobility markets is only just beginning. Our commitment to develop multiple affordable zero emission vehicles for underserved market segments is a short term goal. Longer term, we believe we could be a disruptive force in the auto industry with platform expansion and investments in several electric vehicle technologies that complement our evolution as a business. “

2021 objectives and financial perspectives

As we highlight above, we have generated more interest in Endurance than we anticipated when we announced our transaction in August 2020. We are also seeing huge leverage inherent in our Endurance chassis and to our innovative technologies, and as such, we believe that accelerating the development of vehicle number two makes economic sense. While COVID-19 poses some supply chain issues, we are outsourcing more tools to minimize costs, better control component availability, and improve quality; we expect these investments to pay off at the production level.

Taking into account the above factors, we propose the following financial perspectives for 2021:

  • Capital expenditure planned between $ 250 million and $ 275 million.
  • Expenses to operate between 40 and 45 million dollars in selling and administration costs and between 180 and 190 million dollars in research and development (R&D) costs.
  • Expected cash at the end of 2021 of at least $ 200 million in cash and cash equivalents.
  • Our expected liquidity position does not include the receipt of funds associated with our pursuit of an ATVM loan.

As we receive feedback from our initial customers, to whom we plan to deliver beta vehicles in the middle of 2Q21, we expect purchasing commitments to accelerate, just as we begin to target and track municipal fleets. and government for potential and significant engagement opportunities.

Conference Call Information
Lordstown Motors will host a conference call at 4:30 p.m. EST today (Wednesday, March 17, 2021). The call is accessible via a live webcast accessible on the Events page of the Lordstown Motors Investor Relations website at https://investor.lordstownmotors.com/. An archive of the webcast will be available shortly after the call.

Financial results

Lordstown Motors Corp.
Unaudited Consolidated Statement of Income
(Amount in thousands of dollars, except per share and per share data)
Three months ended December 31
2020 2019
Operating costs and expenses:
Sales and administration $ 10,806 $ 1,530
Research and development 27,747 5 593
Total operating costs and expenses 38,553 7,122
Operating loss (38,553 ) (7,122 )
Other income (expenses):
Other income 77
Interest income (charges) 239 (1 )
Total other income (expenses) 316 (1 )
Net loss $ (38,237 ) $ (7,123 )
Net loss per share, basic and diluted $ (0.23 ) $ (0.10 )
Weighted average shares outstanding, basic and diluted 165 968 111 68 279 182
For the period of
Year ended April 30, 2019
December 31, 2020
as of December 31, 2019
Operating costs and expenses:
Sales and administration $ 28 787 $ 4,526
Research and development 73,694 5,865
Total operating costs and expenses 102,481 10,391
Operating loss (102,481 ) (10,391 )
Other income (expenses):
Other income 2,627
Interest charges (703 )
Total other income (expenses) 1,924
Net loss $ (100,557 ) $ (10,391 )
Net loss per share, basic and diluted $ (1.04 ) $ (0.15 )
Weighted average shares outstanding, basic and diluted 96 715 703 68 279 182
Lordstown Motors Corp.
Unaudited consolidated balance sheets
(Amount in thousands of dollars)
ASSETS As of December 31
2020 2019
Current assets:
Cash and cash equivalents $ 629 761 $ 2,159
Accounts receivable 21
Prepaid expenses and other current assets 24 663
Total current assets $ 654,445 $ 2,159
Non-current assets :
Property and equipment, net 101 663 20,276
Intangible assets 11,111 11,111
Total non-current assets 112,774 31,387
Total assets $ 767,219 $ 33 546
Current liabilities:
Accounts payable $ 32,536 $ 1,802
Accrued charges and other current liabilities 1,538 415
Due to a related party 2,631
Related party effects payable 20 142
Total current liabilities $ 34,074 $ 24 990
Tickets to pay 1,015
Total non-current liabilities 1,015
Total responsibilities $ 35 089 $ 24 990
Common shares, par value of $ 0.0001, 300,000,000 authorized shares, 168,007,960 and 68,279,182 shares issued and outstanding as at December 31, 2020 and December 31, 2019, respectively 17 7
Premium 843,061 18 940
Accumulated deficit (110 948 ) (10,391 )
Total equity (deficit) 732,130 8 556
Total liabilities and equity $ 767,219 $ 33 546

About Lordstown Motors Corp.
Lordstown Motors Corp. is an Ohio-based light vehicle fleet original equipment manufacturer founded by CEO Steve Burns with the goal of transforming Mahoning Valley and Lordstown, Ohio, into the epicenter of electric vehicle manufacturing. The company owns the 785-acre, 6.2 million square foot Lordstown Assembly Plant where it plans to build the Lordstown Endurance, believed to be the world’s first all-electric pickup designed to serve the commercial fleet market. For more information, visit www.lordstownmotors.com.

Forward-looking statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel”, “believe”, “expect”, “Estimate”, “projects”, “intends”, “should”, “must be”, or the negative of these terms, or any other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to not limited to: our limited operation history and our significant projected financing needs; risks associated with converting and retooling our plant and ramping up production; our inability to obtain binding purchase orders from customers and the inability of potential customers to integrate our electric vehicles into their existing fleets; our inability to retain key personnel and hire additional personnel; competition in the electric pickup truck market; our inability to develop a commercial distribution network; and the ability to protect our intellectual property rights. Forward-looking statements speak only as of the date on which they are made, and Lordstown Motors Corp. does not undertake to update any forward-looking statements to reflect events or circumstances subsequent to the date of this press release.


Carter Driscoll
[email protected]

Ryan hallett
[email protected]

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