CINCINNATI, Aug. 9, 2017 /PRNewswire/ -- Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or the "Company"), an American technology company focused on providing sustainable and cost-effective electric mobility solutions to the transportation sector, today announced its financial results for the second quarter of 2017.
QUARTERLY SUMMARY and HIGHLIGHTS
- Initiated manufacturing and delivery of 200+ ($10M order) delivery vans for UPS, Alpha Baking, FedEx and Brinks
- Delivered 42 E-GEN vehicles, 6 in Q2 and 36 to-date in Q3
- Announced strategic partnership for sales and service with Ryder System, Inc.
- Testing underway on the first Workhorse hydrogen fuel cell (Plug Power) prototype delivery truck for FedEx Express
- Backlog of 170 Workhorse electric delivery vans
- Q1/2017 vs. Q2/2017 revenue was down $965K
- For the six months ended June 30, 2017 vs. the same period in 2016, revenue was up $578K
- Unveiled W-15 concept pickup truck on May 2, 2017 and increased LOI's to more than 5,000
- Unveiled SureFly concept multicopter at Paris Air Show on June 19, 2017 and initiated $1,000 deposit pre-order program
Workhorse CEO Steve Burns commented, "We achieved several important milestones this quarter, setting the stage for our planned transition to commercial scale operations. We have continued to focus on delivery of customer orders, improving our supply chain and increasing manufacturing output. The Ryder relationship expands our sales and service capability to fleets of any size, so that we can now offer the E-100 and E-GEN to any fleet operator in North America. In addition, we have received tremendous customer interest in our W-15 pickup truck and SureFly multicopter."
Gross margin was negative $0.7 million for the quarter. Operating expenses for the quarter were $8.5 million, due to increases in research and development, sales and G&A expenses compared to previous quarters.
Cash used from operation year to date was $19.7 million used for working capital, including inventory purchases for our current backlog and R&D expenses primarily related to the development of the mail delivery vehicle and the W-15 pickup truck. On the financing activities, of the $24.6 million raised, the Company received $20.5 million from the stock public offering.
About Workhorse Group
Workhorse is a technology company focused on providing electric mobility solutions to the commercial transportation sector. As an American original equipment manufacturer, we design and build high performance battery-electric vehicles including trucks and aircraft. We also develop cloud-based, real-time telematics performance monitoring systems that are fully integrated with our vehicles and enable fleet operators to optimize energy and route efficiency. All Workhorse vehicles are designed to make the movement of people and goods more efficient and less harmful to the environment. For additional information visit www.workhorse.com.
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.
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