Lion Electric announces first quarter 2023 results

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MONTREAL, 29 May 2023: The Lion Electric Company (NYSE: LEV) (TSX: LEV), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, has released its financial and operational results for Q1 2023, ending on March 31, 2023. The company reported these results in accordance with International Financial Reporting Standards (IFRS) and in US dollars. Here are the key highlights from the quarter:

Financial Highlights:

Lion Electric delivered 220 vehicles in Q1 2023, marking a significant increase of 136 vehicles compared to the same period last year.
The company generated $54.7 million in revenue, representing a substantial growth of $32.1 million from Q1 2022.
However, Lion Electric experienced a gross loss of $2.3 million in Q1 2023, slightly higher than the gross loss of $0.9 million in the previous year’s quarter.
Net loss for Q1 2023 amounted to $15.6 million, in contrast to net earnings of $2.1 million in Q1 2022. The net loss for Q1 2023 includes a $5.8 million gain from a non-cash decrease in the fair value of share warrant obligations and a $1.4 million charge related to non-cash share-based compensation. In comparison, the net earnings for Q1 2022 included a $21.5 million gain from a non-cash decrease in the fair value of share warrant obligations and a $3.8 million charge related to non-cash share-based compensation.
Adjusted EBITDA for Q1 2023 stood at negative $14.5 million, compared to negative $11.3 million in Q1 2022, after adjusting for certain non-cash items like changes in the fair value of share warrant obligations and share-based compensation.

Operational Highlights:

Lion Electric currently has over 1,100 vehicles on the road, with a total of more than 10 million miles driven.
The company’s vehicle order book as of May 8, 2023, consists of 2,565 all-electric medium- and heavy-duty urban vehicles, including 295 trucks and 2,270 buses. The combined total order value is estimated to be approximately $625 million.
Lion Electric’s LionEnergy order book as of May 8, 2023, comprises 347 charging stations and related services, with a combined total order value of approximately $6 million.
The company operates 12 Experience Centers across the United States and Canada.
Lion Electric commenced commercial production of LionC zero-emission school buses at its Joliet Facility.
The battery manufacturing factory in Mirabel, Quebec, has been officially inaugurated. Certification of the first battery pack is expected in Q2 2023, followed by a gradual production ramp-up throughout the year. The batteries will power LionC and LionD school buses and Lion5 trucks.
As of May 8, 2023, Lion Electric had approximately 1,400 employees, with around 300 in its Engineering and R&D departments.

Capital Transactions:

Lion Electric completed a sale and leaseback transaction for its battery manufacturing building in Mirabel, Quebec, for a total purchase price of $20.9 million (C$28 million). Simultaneously, the company entered into a lease agreement for the Mirabel battery manufacturing building.
In Q1 2023, Lion Electric generated total aggregate net proceeds of $36 million, which includes proceeds from the sale and leaseback of the Mirabel battery manufacturing building ($20.5 million), offering of units ($7.1 million), issuance of common shares under the ATM program ($4.6 million), and borrowings under the IQ Loan ($6.3 million). These proceeds were partially offset by net repayments of $2.5 million under the Revolving Credit Agreement.

Lion Electric’s CEO and Founder, Marc Bedard, expressed satisfaction with the company’s performance in Q1 2023, particularly the continued growth in vehicle deliveries. With manufacturing operations underway at the Joliet vehicle plant and battery factory, Lion Electric is focused on achieving profitability and laying the foundation for this objective.