- Revenue more than doubles in the second quarter compared to
preceding quarter as the Company reports $4.1 million in revenue from 145 vehicle
deliveries
- Production materially ramps up with 178 vehicles
manufactured during the second quarter of 2023
- Successfully closed the convertible bond issuance of
$46.8 million under the previously
announced private placement
- Launched OrcaTM Performance following the close
of the second quarter on August 9,
2023
MONTREAL, Aug. 14,
2023 /CNW/ - Taiga Motors Corporation (TSX:
TAIG) ("Taiga" or the "Company"), a
leading electric off-road vehicle manufacturer, today reported its
financial and operating results for the second quarter ending
June 30, 2023.
Management Commentary
Taiga reported $4.1 million from
the sale of 145 vehicles during the second quarter ending
June 30, 2023, showcasing revenue
growth of 137% compared to the preceding first quarter of 2023.
Taiga's production has seen a strong ramp-up with its 2023
NomadTM snowmobile, which was re-engineered for greater
manufacturability, and in total, Taiga produced 178 snowmobiles and
personal watercrafts during the second quarter of 2023. During the
quarter, Taiga continued to expand its Taiga Service Provider
("TSP") network and as of June 30,
2023, Taiga's TSP network included 20 locations to provide
deliveries and after-sales service across Canada and the
United States. Taiga's TSP network now covers top key
markets in Canada and the United States and the Company expects to
continue to scale its TSP network in line with its vehicle delivery
schedule in the coming months.
"The second quarter served as proof of our snowmobile platform's
scalability. The 2023 Nomad was re-engineered for improved
manufacturability, and we saw that yield strong throughput results
in tandem with our on-going supply chain improvements." said
Sam Bruneau, CEO of Taiga. "We're
now on our path to resume our high throughput production with the
Orca Performance in the third quarter as we get through the
limited-edition Orca Carbon. We are laser-focused on building our
momentum as we ramp up rapidly."
On April 27, 2023, Taiga announced
that in connection with its private placement of $40.15 million aggregate principal amount of 10%
secured convertible debentures due March 31,
2028, that closed on March 24,
2023, it has raised an additional $6.6 million in gross proceeds by issuing
additional convertible debentures to Northern Private Capital and
Investissement Québec, with each of the Investors having subscribed
for $3.3 million of the additional
convertible debentures. Other than the amount of the initial
interest payment, the additional convertible debentures carry the
same terms as the convertible debentures issued on March 24, 2023.
Second Quarter 2023 Financial Highlights (All amounts
in Canadian dollars unless indicated otherwise)
- Revenue of $4.1 million recorded
during the second quarter of 2023, compared to $399,525 recorded in the second quarter of 2022.
The 924% increase in revenue is associated with the delivery ramp
up with 145 vehicles delivered in the second quarter of 2023
compared to 21 vehicles delivered in the prior year quarter.
- Cost of Sales of $9.5 million
recorded during the second quarter of 2023, compared to
$4.2 million reported in the second
quarter of 2022. The increase in Cost of Sales is associated with
the increased production output.
- Research & Development (R&D) expense (net of tax
credits) increased to $4.3 million
from $1.6 million compared to the
second quarter of 2022.
- General & Administration (G&A) expense increased to
$5.0 million from $4.6 million compared to the second quarter of
2022.
- Sales & Marketing (S&M) expense maintained at
$1.2 million from $1.1 million compared to the second quarter of
2022.
- Net loss before other expenses for the period increased to
$15.9 million compared to
$11.1 million in the second quarter
of 2022.
- Additions to Property and Equipment decreased to $1.5 million compared to $1.6 million in the second quarter of 2022.
- Cash and cash equivalents of $26.4
million as at June 30, 2023,
compared to $22.8 million as at
December 31, 2022. The increase in
cash and cash equivalents is due to the private placement of
$40.2 million of convertible
debentures closed on March 24, 2023,
and an additional $6.6 million raised
in connection with the aforementioned private placement which
closed on April 27, 2023.
- Inventory increased to $24.9
million as at June 30, 2023,
compared to $20.8 million as at
December 31, 2022. The increase in
inventory is largely associated with parts purchased for the
upcoming Orca Performance as well as higher levels of finished
goods.
Second Quarter 2023 Operational Updates
- Delivered 145 vehicles, including 43 personal watercrafts and
102 snowmobiles during the second quarter of 2023.
- Produced 178 vehicles, including 55 personal watercrafts and
123 snowmobiles during the second quarter of 2023.
- Pre-orders remained stable at 2,981
pre-ordersi during the second quarter as the
company focuses on maintaining a pre-order level and sales pipeline
in line with its production plan.
- Initiated beta testing program with select owners to try out
new features and updates, including DC Fast Charging and the Taiga
mobile app.
- Conducted customer demos for the Orca Carbon in Ontario, Quebec and Florida.
- Expanded the TSP network with a total of 16 TSPs across 20
locations in Canada and
the United States as of
June 30, 2023.
- Headcount at 311 full time employees at the end of the second
quarter of 2023, with approximately 40% of the workforce employed
in engineering.
_____________________________________
|
i Pre-orders for new Taiga vehicles
are cancelable and the deposit fully refundable, and there can be
no assurance that such pre-orders will be converted into
sales.
|
2023 Priorities
For 2023, Taiga is focused on three key areas of the business,
which include ramping up production, establishing a world-class
customer experience, and furthering our technology advantage in
off-road electrification. The future of off-road is electric, and
Taiga is committed to strategically investing in and manufacturing
the next generation of off-road vehicles to accelerate
no-compromise access to the outdoors.
Outlook
While the company was able to reach targeted throughput with its
2023 Nomad snowmobile, the Orca Carbon personal watercraft
continued to present unique supply issues related to a single
supplier. Therefore, management is now advising its production to
be at the lower end of the previous guidance of 1,700-1,900
vehicles delivered in 2023. Production continues to be weighed to
the second half of 2023. See "Forward-Looking Statements" below and
"Business Risks" sections of the accompanying second quarter 2023
MD&A.
Conference Call
Taiga management will hold a conference call today (August 14, 2023) at 9:00
a.m. Eastern time (6:00 a.m. Pacific
time) to discuss these results.
Toll-Free Dial-In: +1 855-658-2585
International Dial-In: +1 514-375-0364
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of
Taiga's website.
A telephonic replay of the conference call will be available
after 12:00 p.m. Eastern time on the
same day through August 21, 2023.
Toll-free replay number: +1 800-319-6413
International replay number: +1 604-638-9010
Replay ID: 0338
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the
powersports landscape with breakthrough electric off-road vehicles.
Through a clean-sheet engineering approach, Taiga has pushed the
frontiers of electric technology to achieve extreme power-to-weight
ratios and thermal specifications required to outperform comparable
high-performance combustion powersports vehicles. The first models
released include a lineup of electric snowmobiles and personal
watercraft to deliver on a rapidly growing demand from recreational
and commercial customers who are seeking better ways to explore the
great outdoors without compromise. For more information, visit
www.taigamotors.com.
Forward-Looking
Statements
This press release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Such forward-looking information includes, but is not limited to,
information with respect to our objectives and the strategies to
achieve these objectives, the expected operations, financial
results and condition of the Company, expectations regarding market
trends, the Company's growth rates, the Company's future objectives
and strategies to achieve those objectives, expected timelines for
achieving mass production capabilities, the ramp-up of its current
facility, expected deliveries, the ability to advance the Taiga
Service Providers program in a measured manner and the associated
manufacturing benefits in respect thereof, including increased
capacity as well as information with respect to our beliefs, plans,
expectations, anticipations, estimates and intentions.
This forward-looking information is identified by the use of
terms and phrases such as "may", "would", "should", "could",
"expect", "intend", "estimate", "anticipate", "plan", "foresee",
"believe", and "continue", as well as the negative of these terms
and similar terminology, including references to assumptions,
although not all forward-looking information contains these terms
and phrases. Forward-looking information is provided for the
purposes of assisting the reader in understanding the Company and
its business, operations, prospects and risks at a point in time in
the context of historical and possible future developments and
therefore the reader is cautioned that such information may not be
appropriate for other purposes.
We draw your attention to the "Key Factors Affecting Taiga's
Performance" section of the Company's management's
discussion and analysis for the three and six-month periods ended
June 30, 2023, and to note 2 of our
consolidated financial statements which indicate the existence of
material uncertainty that may cast significant doubt on the
Company's ability to continue as a going concern. The Company's
ability to continue as a going concern for the next twelve months
involves significant judgment and is dependent on, among other
things, its ability to obtain necessary financing, either through a
combination of public or private equity or debt financing or other
sources. On March 24, 2023, the
Company successfully closed a private placement of $40.15 million aggregate principal amount of 10%
convertible debentures due March 31,
2028 (the "Debentures"). An option for additional
convertible debenture with the same terms was exercised and
resulted in an additional $6.6
million, totalling $46.8
million in capital raised through the private placement. The
entirety of the Debentures was subscribed for by two institutional
investors see "Highlights of the Three-Month Period ended
June 30, 2023 - Update on Financing"
in the accompanying second quarter 2023 MD&A for additional
details.
Management is committed to secure additional sources of funds
for the Company working capital needs. While the Company has been
successful in securing financing in the past and believes it will
be able to obtain sufficient funds in the future and ultimately
achieve profitability and positive cash flows from operations,
raising additional funds is dependent on a number of factors
outside the Company's control, as such there is no assurance that
it will be able to do so in the future.
Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond our control, which could cause actual
results to differ materially from those that are disclosed in, or
implied by, such forward-looking information. These risks and
uncertainties include, but are not limited to, the effective
further supply chain disruptions, and the impact of such
disruptions on ability to fulfil orders, pre-orders for the
Company's vehicles being cancelled and those described in the
Company's management's discussion and analysis for the three and
six-month periods ended June 30,
2023, and under the "Risk Factors" section of the Company's
annual information form filed on March 30,
2023 on the Company's SEDAR profile at sedar.com.
Forward-looking statements reflect management's current beliefs,
expectations and assumptions and are based on information currently
available to management. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve known and unknown risks and
uncertainties and other factors that could cause actual results to
differ materially from those contemplated by such
statements.
All of the forward-looking information contained in this
press release is qualified by the foregoing cautionary statements,
and there can be no guarantee that the results or developments that
we anticipate will be realized or, even if substantially realized,
that they will have the expected consequences or effects on our
business, financial condition or results of operation. Unless
otherwise noted or the context otherwise indicates, the
forward-looking information contained herein is provided as of the
date hereof, and we do not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
SOURCE Taiga Motors Corporation