Core Insights - Xos, Inc. has received a purchase order from Crown Linen Service, Inc. for two fully electric 22' stepvans, highlighting a commitment to sustainability and reducing environmental impact [1] - The integration of electric vehicles into Crown Linen's fleet is part of their strategy to provide environmentally responsible services while maintaining efficiency and reliability [2] - Xos' electric vehicles are designed to deliver long-term total cost of ownership (TCO) savings, making them a cost-effective choice for businesses [2][3] Company Overview - Xos, Inc. is a technology company and electric truck manufacturer focused on battery-electric fleets, specifically for medium- and heavy-duty commercial vehicles [4] - The company utilizes proprietary technologies to offer battery-electric vehicles that are easier to maintain and more cost-efficient compared to internal combustion engine vehicles [4] Crown Linen Service, Inc. Overview - Founded in 1914, Crown Linen Service, Inc. specializes in linen and uniform rental services, serving various industries including healthcare and food and beverage [5] - The company has a strong reputation for excellence and has been family-owned and operated for over 100 years [5] Sustainability Initiatives - Crown Linen has implemented several sustainability initiatives, including waste reduction, recycling programs, and energy efficiency measures [6][8][9] - The company is transitioning to electric vehicles as part of its broader sustainability goals, which also include solar panel installations and upgraded lighting systems [10][9] Industry Trends - The uniform and linen industry is increasingly adopting electric vehicles to enhance sustainability efforts while improving operational efficiency [3]

Financial Performance - Revenues for Q3 2024 were $15,790,000, a decrease of 5.4% compared to $16,696,000 in Q3 2023[19] - Gross profit for Q3 2024 was $2,864,000, compared to a gross profit of $1,985,000 in Q3 2023, indicating an improvement in profitability[19] - Total operating expenses decreased to $12,555,000 in Q3 2024 from $14,610,000 in Q3 2023, reflecting cost reduction efforts[19] - The net loss for Q3 2024 was $10,512,000, an improvement from a net loss of $14,107,000 in Q3 2023[19] - Total comprehensive loss for the three months ended September 30, 2023, was $(14,051) thousand, compared to $(10,512) thousand for the same period in 2024, indicating a decrease of 3,539 thousand[20] - Net loss per share (diluted) for the three months ended September 30, 2023, was $(2.40), while for the same period in 2024, it improved to $(1.32), reflecting a 45% reduction in loss per share[20] - The net and comprehensive loss for the three months ended September 30, 2024, was $(10,512) thousand, compared to $(14,051) thousand for the same period in 2023, indicating an improvement of 25%[23] - The total comprehensive loss for the nine months ended September 30, 2023, was $(61,277) thousand, while for the same period in 2024, it was $(31,178) thousand, reflecting a significant reduction of 49%[20] - The company reported a net loss of $(23,578) thousand for the six months ended June 30, 2023, which improved to $(9,663) thousand for the same period in 2024, indicating a 59% reduction in losses[23] - The net loss for the nine months ended September 30, 2024, was $31.2 million, compared to a net loss of $62.0 million for the same period in 2023, indicating a 49.7% improvement[25] Cash and Liquidity - Cash and cash equivalents decreased to $8,432,000 as of September 30, 2024, down from $11,640,000 at the end of 2023[18] - The company is focused on improving liquidity and working capital availability through operational cost reduction measures[6] - The company plans to continue raising capital through various strategies, including debt financing and equity financing, to support its operations and growth[40] - The company’s liquidity is critical as it continues to incur net losses and cash outflows while scaling operations to meet anticipated demand[37] - The company’s ability to access capital is uncertain, which raises substantial doubt about its ability to continue as a going concern[39] - As of September 30, 2024, the Company has substantial doubt about its ability to continue as a going concern for at least one year, unless it can collect on accounts receivable or obtain new capital[42] Assets and Liabilities - Accounts receivable increased significantly to $36,441,000 as of September 30, 2024, compared to $15,142,000 at the end of 2023, indicating potential growth in sales[18] - Inventories rose to $42,398,000 as of September 30, 2024, up from $37,843,000 at the end of 2023, suggesting increased production or stockpiling[18] - The company reported a total of $120,513,000 in assets as of September 30, 2024, compared to $93,684,000 at the end of 2023, reflecting overall growth[18] - The total stockholders' equity decreased from $57,560 thousand as of September 30, 2023, to $50,841 thousand by September 30, 2024, a decline of approximately 12%[23] - Other current liabilities increased to $21.31 million as of September 30, 2024, compared to $16.82 million as of December 31, 2023[73] - Other non-current liabilities rose to $18.94 million as of September 30, 2024, from $8.56 million as of December 31, 2023[74] Operational Performance - In Q3 2024, the company delivered 78 vehicles and 16 powertrains, a decrease from 104 vehicles and 1 powertrain in Q3 2023, representing a 25% decline in vehicle deliveries[171] - Revenue for Q3 2024 was $14.9 million, down from $16.0 million in Q3 2023, reflecting a 6.9% decrease, with 95% of revenue from vehicle and powertrain sales[171] - For the nine months ended September 30, 2024, the company delivered 216 vehicles and 30 powertrains, compared to 171 vehicles and 3 powertrains in the same period of 2023, marking a 26.4% increase in vehicle deliveries[173] - Revenue for the nine months ended September 30, 2024, was $41.5 million, up from $24.8 million in the same period of 2023, indicating a 67.9% increase, with 93% of revenue from vehicle and powertrain sales[173] Strategic Initiatives - Future growth strategies include the commercialization of new products and services, as well as potential market expansion and strategic partnerships[6] - The company acquired ElectraMeccanica on March 26, 2024, for a total consideration of 1,766,388 shares of Common Stock, supplemented by approximately $50.2 million in net cash[177] - The company implemented a reduction in workforce, terminating approximately 26% of its total workforce to improve liquidity and working capital[178] - Senior executives, including the CEO and COO, accepted temporary salary reductions of 20% to 50% effective October 28, 2024, as part of cost-cutting measures[179] Stock and Financing - The Company issued Convertible Debentures totaling $35.0 million, with $20.0 million sold on August 11, 2022, and an additional $15.0 million on September 21, 2022[83] - The Company entered into a note purchase agreement with Aljomaih Automotive Co. for a convertible promissory note of $20.0 million, maturing on August 11, 2025[41] - The Company recorded interest expense of $0 in relation to the Convertible Debentures during the three months ended September 30, 2024, compared to $0.2 million for the same period in 2023[96] - The Company recorded interest expense of $0.5 million related to the Note during the three months ended September 30, 2024, consistent with the same period in 2023[103] Market and Economic Conditions - Supply chain disruptions continue to impact the company, with ongoing shortages for specific components and increased shipping costs due to global economic conditions[183] - The stock price as of September 30, 2024, was $4.55, down from $7.98 on December 31, 2023, reflecting a decrease of 43.5%[162]

Financial Data and Key Metrics Changes - The company generated $15.8 million in revenue for Q3 2024, an increase from $15.5 million in Q2 2024, with a gross margin of 18.1% compared to 13.1% in the previous quarter [5][25][26] - Operating expenses decreased to $12.6 million from $13.4 million in the prior quarter, leading to a non-GAAP operating loss of $6.6 million, improved from a loss of $9.7 million [27][28] - Cash and cash equivalents totaled $9.2 million, with negative free cash flow of $11.7 million, significantly improved from negative $26.1 million in Q2 2024 [28][29] Business Line Data and Key Metrics Changes - The company delivered 94 units in Q3 2024, a 4.4% increase from the previous quarter, with a notable ramp-up in hub product deliveries, shipping nearly 12 units [5][9][10] - The StepVan business saw a positive shift with increased strip chassis deliveries, enhancing working capital turnover [9][10] - The powertrain business delivered its first product for a Blue Bird school bus, indicating growth in the electric school bus market [9][10] Market Data and Key Metrics Changes - The company is experiencing growing momentum in customer and product diversity, with significant deliveries to major clients like Waymo and Xcel Energy [10][11][12] - The hub product is gaining traction, with increasing interest from various industries, reflecting strong demand for mobile charging solutions [12][13] Company Strategy and Development Direction - The company is focused on reducing operational expenses and improving cash flow, with measures including workforce reduction and temporary salary cuts for executives [16][29] - There is a strategic emphasis on enhancing production efficiency and cost reductions, particularly in the Tennessee facility, which is central to operations [19][20][23] - The company is adapting to potential federal changes, including tariffs on imported components, by reshoring production and diversifying supplier sources [21][22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the industry, including delays in charging infrastructure and customer pressures for competitively priced vehicles, but remains optimistic about long-term potential [33] - The company updated its revenue guidance for 2024, expecting a range of $54.1 million to $67.6 million, with a narrower non-GAAP operating loss forecast [31] Other Important Information - The backlog of delivered incentives exceeds $25 million, with efforts underway to streamline the collection process [14][30] - The company has implemented over $10,000 in cost reductions over the past year, with additional reductions planned [19] Q&A Session Summary Question: Opportunity on the drivetrain side - Management highlighted the immense opportunity in the powertrain business, leveraging intellectual property for other OEMs, with markets like mobile command centers and school buses showing strong growth potential [36][37][39] Question: Inventory clarification - The company builds products to order, with raw materials accounting for about 70% of total inventory, and aims to optimize inventory flows [43][45] Question: Working capital improvements - Management acknowledged the need to reduce inventory turns and improve accounts receivable collection, anticipating significant progress in Q4 [56][60] Question: Convertible note and balance sheet - The convertible note has moved to current liabilities, with ongoing discussions about future plans as it matures in Q3 2025 [63][64] Question: Sale of energy credits - The company does not anticipate regular transactions of energy credits but expects periodic opportunities that could enhance margins [66][67]

Group 1: Earnings Performance - Xos, Inc. reported a quarterly loss of $1.32 per share, which was better than the Zacks Consensus Estimate of a loss of $1.39, and an improvement from a loss of $2.40 per share a year ago, resulting in an earnings surprise of 5.04% [1] - The company has surpassed consensus EPS estimates for the last four quarters, but reported revenues of $15.79 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 28.67% and down from $16.7 million year-over-year [2] Group 2: Stock Performance and Outlook - Xos shares have declined approximately 35.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Group 3: Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is -$1.34 on revenues of $25.16 million, and for the current fiscal year, it is -$5.37 on revenues of $75.99 million [7] - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

LOS ANGELES, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS) (“Xos” or the “Company”), a leading electric truck manufacturer and fleet services provider, today reported financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Highlights: Generated revenues of $15.8 million, up from $15.5 million last quarter and down from $16.7 million in the third quarter of 2023Delivered 94 units, up from 90 units last quarter and down from 105 units in the third quarter of 2023Achiev ...

LOS ANGELES, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet services provider, announced it is scheduling the release of its third quarter 2024 operating results for Wednesday, November 13, 2024 after the close of the U.S. financial markets. Management will host a conference call to discuss these financial results at 4:30 p.m. Eastern Daylight Time / 1:30 p.m. Pacific Daylight Time that same day. Conference Call and Webcast Details Date / Time:Wedn ...

LOS ANGELES, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading manufacturer of fully electric commercial vehicles, today announced the launch of the 2025 Xos SV Stepvan, featuring two new wheelbase options: 158" and 208". These additions complement the existing 178" wheelbase, offering fleet operators enhanced flexibility to meet their specific operational needs. The introduction of the 158" and 208" wheelbases reflects Xos' commitment to delivering solutions that meet the evolving needs ...

XPENG launches its first major synchronized global OTA upgrade for eligible users across Europe, the Middle East, Southeast Asia, and other markets During the 28-day beta, global users engaged enthusiastically, and nearly a hundred feedback items were integrated into the final OTA update. Additionally, there's a plan to roll out at least four OTA updates in the forthcoming year. XPENG hosted its inaugural global user OTA salon in Denmark, focusing on customer feedback and advancing smart mobility on a world ...

Xos, Inc. (XOS) came out with a quarterly loss of $1.23 per share versus the Zacks Consensus Estimate of a loss of $1.94. This compares to loss of $4.20 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 36.60%. A quarter ago, it was expected that this company would post a loss of $2.19 per share when it actually produced a loss of $1.80, delivering a surprise of 17.81%. Over the last four quarters, the company has surpassed con ...

LOS ANGELES, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet services provider, announced it is rescheduling the release of its second quarter 2024 operating results to Tuesday, August 13, 2024 after the close of the U.S. financial markets. Management will host a conference call to discuss these financial results at 4:30 p.m. Eastern Daylight Time / 1:30 p.m. Pacific Daylight Time that same day. Conference Call and Webcast Details Date / Time: Tuesd ...