Core Viewpoint - Workhorse Group Inc. expands its dealer network by adding Eco Auto as its first dealer in the Greater Boston area, enhancing its commitment to zero-emission commercial vehicles [1][4]. Company Overview - Workhorse Group Inc. is focused on pioneering the transition to zero-emission commercial vehicles, specifically targeting the last-mile delivery sector with high-performance, battery-electric trucks [4][6]. - The company also develops cloud-based telematics systems for real-time performance monitoring, aimed at optimizing energy and route efficiency for fleet operators [4]. Dealer Network Expansion - The addition of Eco Auto marks Workhorse's 13th dealer nationwide and is a strategic move to grow its presence in the Northeast [1][6]. - Eco Auto specializes in sustainable commercial vehicle solutions and is committed to lowering barriers for businesses transitioning to electric vehicles [3][5]. Electric Vehicle Adoption in Massachusetts - Massachusetts is a key state for electric vehicle adoption, supported by the MOR-EV program, which offers rebates ranging from $30,000 to $60,000 per vehicle for the purchase or lease of electric trucks [3]. - The program is accessible to various entities, including private businesses, universities, nonprofits, and municipalities, facilitating the transition to zero-emission vehicles [3]. Commitment to Sustainability - Both Workhorse and Eco Auto emphasize their commitment to sustainability and customer service, aiming to support businesses in achieving their zero-emissions goals [4][5]. - Eco Auto plans to enhance its offerings in the commercial fleet electrification space, providing a comprehensive range of services from vehicle purchasing to energy solutions and maintenance [7][8].

Company Overview - Workhorse, originally founded as AMP Electric Vehicles in 2007, aimed to convert gas-powered vehicles to electric vehicles (EVs) and acquired a Navistar subsidiary in 2012 [6] - The company has transitioned to manufacturing electric vans and was previously involved in a bid for a contract to supply electric delivery vans to the U.S. Postal Service (USPS) [2] Recent Developments - Workhorse executed a 1-for-20 reverse stock split to comply with Nasdaq's minimum bid price requirement, increasing share price from $0.15 to $3 [1] - Following the announcement of the reverse split, shares fell by 11% and have since decreased by an additional 25%, currently trading around $2.20 [5] Financial Performance - In 2023, Workhorse reported a loss of $123 million, equating to $0.60 per share, on revenues of $13 million [8] - The company has recently secured a contract with a California dealer for electric trucks, indicating some movement towards business recovery [8] Market Position - Workhorse's bid for the USPS contract was unsuccessful, with the contract awarded to Oshkosh, which has committed to increasing the percentage of EVs in its order [2][7] - The government is now purchasing 9,250 electric vans directly from Ford, which was initially designated to provide engines for the Oshkosh contract [2]

Workhorse (NASDAQ:WKHS) stock is a hot topic on Thursday after the technology company announced plans for a 1-for-20 reverse stock split. With that approval, 20 shares of WKHS stock will be consolidated into a single share when markets open on June 17. The shares will continue to trade under the same ticker after the reverse split. Workhorse is enacting this reverse stock split to boost the price of WKHS shares. It's doing this to regain compliance with listing requirements for the Nasdaq Exchange. Currentl ...

Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to the Company. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including but not l ...

Core Points - Workhorse Group Inc. will implement a 1-for-20 reverse stock split of its common stock effective June 17, 2024, to comply with Nasdaq's minimum bid price requirement [5][6]. - The reverse stock split aims to increase the market price of Workhorse's common stock to at least $1.00 per share for a minimum of ten consecutive trading days by September 16, 2024 [6]. - The reverse stock split will automatically combine every 20 shares into one share, affecting all stockholders uniformly without altering their percentage ownership interest [7]. Company Overview - Workhorse is a technology company focused on electric vehicles for the last-mile delivery sector, designing and building high-performance, battery-electric trucks [3]. - The company also develops cloud-based telematics performance monitoring systems integrated with its vehicles to optimize energy and route efficiency [3]. - Workhorse aims to enhance the efficiency of moving people and goods while minimizing environmental impact [3].

Core Insights - Workhorse Group Inc. has announced a strategic collaboration with Kingsburg Truck Sales to enhance the adoption of zero-emission trucks in California, specifically through the purchase of 141 units of the Workhorse W4 CC trucks, expected for delivery in 2024 [1][17] - The collaboration is aimed at addressing the needs of commercial truck and small fleet owners amid California's stringent air quality regulations, while also streamlining Workhorse's operations following the divestiture of its Aero business [17][20] Company Developments - Kingsburg Truck Sales has committed to purchasing a significant number of Workhorse W4 CC trucks, reflecting confidence in the changing market for work trucks due to Advanced Clean Fleet (ACF) regulations [1][3] - Workhorse anticipates that the W4 CC will qualify for up to $60,000 in incentives through California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which is crucial for customer acquisition [4][10] - The divestiture of the Aero business is expected to provide monthly cost savings of approximately $375,000, allowing Workhorse to focus more on its commercial electric vehicle (EV) product roadmap [20][21] Product Offerings - The Workhorse W4 CC is designed to meet various industry needs with a range of body options, including Flatbed, Utility Bed, and Landscape Body, ensuring quick delivery for work truck owners [19][11] - The W4 CC features a range of up to 150 miles and compatibility with Level 2 and Level 3 charging, making it suitable for local delivery routes while helping customers comply with ACF regulations [10][11] Market Positioning - Kingsburg Truck Sales has been recognized as Workhorse's 2023 dealer of the year, highlighting its pivotal role in facilitating multiple purchase orders for Workhorse vehicles since becoming the first certified EV dealer in California [18] - The collaboration with Kingsburg is part of Workhorse's broader strategy to drive the adoption of zero-emission commercial vehicles and expand its dealer network [6][13]

Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2024 were $1.4 million, down from $1.7 million in the same period last year, primarily due to lower W4 CC vehicle sales [43] - Net loss for Q1 2024 was $29.2 million compared to $25 million in the same period last year [45] - Cash and cash equivalents as of March 31, 2024, were $6.7 million, with net inventory at $49.9 million [46] Business Line Data and Key Metrics Changes - The company has received orders for a total of 68 W56 step vans per day, indicating a strong sales pipeline [5] - Research and development expenses decreased to $3.5 million from $7.2 million year-over-year, reflecting reduced consulting and prototype costs [44] - Selling, general and administrative expenses decreased to $14.1 million from $14.7 million in the same period last year, driven by a decrease in employee compensation [66] Market Data and Key Metrics Changes - Fleets in California must register their entire fleet and target a 9% EV adoption rate by December 31, 2024, creating administrative challenges for smaller fleets [7] - The company is expanding its dealer network, adding new locations in New York City and the Midwest, aiming for 15 to 20 dealers by the end of 2024 [36] Company Strategy and Development Direction - The company is transitioning to a less capital-intensive Drones as a Service business model [3] - Focus remains on advancing the product roadmap, securing new orders, and delivering products to customers [69] - The company aims to emerge as a leader in the Class 4-6 step van and work truck segments, with a commitment to EV technology [70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the transition to EV technologies is starting, albeit slower than expected, with discussions indicating a gradual shift among fleet customers [91] - The company is prepared for the transition and is working closely with suppliers and stakeholders to navigate challenges [24] Other Important Information - The company has temporarily furloughed employees at the Union City plant but is beginning to recall staff as orders increase [65] - The company is assessing the impact of battery tariffs and exploring alternative sourcing options for batteries [106][107] Q&A Session Summary Question: What is the current burn rate? - The burn rate for Q1 was approximately $5.5 million, expected to decrease to below $5 million in Q2 as cost reductions take effect [14][15] Question: How much finished goods inventory is on hand? - Finished goods inventory is about $20 million, with 75% in raw materials, allowing for the completion of 20 to 30 trucks [17] Question: Are recent orders contingent on subsidies? - Most W4 CC orders are tied to California HVIP incentives, while some W56 orders are not [95]

Company Performance - Workhorse Group reported a quarterly loss of $0.10 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, representing an earnings surprise of -25% [1] - The company posted revenues of $1.34 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 55.37%, and down from $1.69 million a year ago [2] - Over the last four quarters, Workhorse has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Movement and Outlook - Workhorse shares have declined approximately 33.3% since the beginning of the year, contrasting with the S&P 500's gain of 11.2% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.08 on $4.5 million in revenues, and -$0.30 on $65 million in revenues for the current fiscal year [7] Industry Context - The Automotive - Original Equipment industry, to which Workhorse belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

CINCINNATI, May 20, 2024 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today reported financial results for the first quarter ended March 31, 2024. Management Commentary "During the first quarter, we took important strategic and financial actions to better position Workhorse for the future while continuing to hit major milestones," said Workhorse CEO Rick Dauch. ...

CINCINNATI, May 20, 2024 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today reported financial results for the first quarter ended March 31, 2024. Management Commentary "During the first quarter, we took important strategic and financial actions to better position Workhorse for the future while continuing to hit major milestones," said Workhorse CEO Rick Dauch. ...