CINCINNATI, Aug. 15, 2016 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (NASDAQ:WKHS), a last-mile delivery technology company that is an original equipment manufacturer of medium-duty, battery-electric trucks and fully integrated unmanned aerial delivery drones, today announced its financial results for the second quarter of 2016.
The second quarter marked the start of commercial manufacturing for Workhorse, as it registered $1.2 million in quarterly sales from the delivery of battery-electric Workhorse vehicles. The vehicles delivered were a combination of both the range-extended Workhorse E-GEN and the Workhorse E-100 all-electric platforms.
Steve Burns, Chief Executive Officer, commented, “We started the delivery of our battery-electric medium-duty trucks to our customers. We intend to continue to ramp up production and execute delivery of customer orders. We have also received great feedback and accolades for our product’s efficiency and user experience.”
Gross margin for the quarter was negative $1 million. As manufacturing volume increases, Workhorse expects to benefit from volume pricing from suppliers. The company intends to reduce costs and achieve manufacturing efficiencies through advanced engineering. Research and Development costs for the quarter were $1.4 million lower than last year due to a shift in the available resources toward manufacturing activities.
Cash used from operations year to date was $9.6 million, which was predominantly due to the ramp up of production. On financing activities, Workhorse became debt-free as it successfully paid off their Navistar loan ($2.7M), and received funds from the exercising of current investor warrants ($8.4M). In order to appropriately finance the company’s expected increase in production, the company is evaluating its financing opportunities which may include equity and/or debt capital raises.
Investor Conference Call
The investor conference call to discuss the second quarter 2016 update will be at 5:00 PM ET today, Monday, August 15, 2016.
Shareholders and other interested parties may participate in the upcoming investor conference call by dialing 877-407-8289 and asking to be connected to the Workhorse Conference Call a few minutes before 5:00 PM ET today, August 15, 2016. International participants may participate in the upcoming investor conference call by dialing 201-689-8341 and asking to be connected to the Workhorse Conference Call a few minutes before 5:00 PM ET today, August 15, 2016. The call will also be broadcast live on the Internet at:
A replay of the conference call will be available approximately two hours after the completion of the call through August 22. To access the replay, please dial: 1-877-660-6853; international participants should dial: 1-201-612-7415.
Forward Looking Statements
This press release includes forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein. Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future to fulfill product orders; risks associated with obtaining orders and executing upon such orders; the ability to protect our intellectual property; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our inability to maintain our listing of our securities on the Nasdaq Capital Market; our ability to continue as a going concern; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC. Workhorse expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.
About Workhorse Group
Workhorse Group Inc. is a U.S.-based original equipment manufacturer of medium-duty, EPA-approved battery-electric delivery vehicles and fully integrated truck-launched, FAA compliant unmanned aerial systems (UAS) delivery drones. The company is also a developer of a cloud-based, real-time telematics performance monitoring system that provides fleet operators ultimate energy and route efficiency. For additional information visit www.workhorse.com.
Executive Vice President
Workhorse Group Inc. 513-300-5910
Dian Griesel Int'l.