Beam (BEEM) - 2024 Q3 - Quarterly Results

Q3 2024 Earnings Announcement & Highlights Announcement and Company Introduction Beam Global announced Q3 2024 results, a leader in sustainable infrastructure for transportation electrification and energy security - Company Name: Beam Global (Nasdaq: BEEM)[1] - Core Business: Providing innovative and sustainable infrastructure solutions for transportation electrification and energy security[1] - Announcement Date: November 14, 2024, reporting period: Q3 2024 (ended September 30)[1] Q3 2024 Financial Highlights Beam Global achieved a record 10.7% gross margin in Q3 2024, with 47.9% revenue from commercial customers, over $200 million in business pipeline, $7 million backlog, and no debt Q3 2024 Key Financial Highlights | Metric | Q3 2024 | Change vs. Q3 2023 | | :----- | :------ | :------------------- | | Gross Margin | 10.7% | +9 percentage points | | YTD Gross Margin | 12.4% | +11 percentage points | | Commercial Customer Revenue Share | 47.9% | N/A | | Business Pipeline | Over $200 million | N/A | | Backlog | $7 million | N/A | | Debt Status | Debt-free | N/A | | Credit Facility | $100 million available and unused | N/A | Q3 2024 Operational Highlights Beam Global acquired Telcom for in-house power electronics, secured its first European sponsorship, launched four new products, initiated a dealer program, delivered its first UK MOD order, and strengthened sales leadership - Acquisition of Telcom: Obtained in-house production capabilities for power electronics products[2] - First Sponsorship Agreement: Collaboration with Globos Osiguranje to deploy EV ARC™ systems at Belgrade Airport[2] - New Product Launches: BeamSpot™, BeamBike™, BeamPatrol™, BeamWell™, with BeamSpot™ securing its first order within five weeks of launch[2] - Dealer Program Launched: Signed first four partners, expanding market reach[2] - European Order: Delivered 10 EV ARC™ systems to the UK Ministry of Defence[2] - Sales Executive Appointments: Andy Lovsted (US) and Igor Labovic (Europe) joined as VPs of Sales[2] CEO Commentary CEO Desmond Wheatley highlighted Q3 2024 as a period of significant geographic and product expansion with improving unit economics and gross margins, attributing sequential revenue decline to order timing and regulatory uncertainties, and projecting 2025 revenue growth with significantly improved margins - Q3 2024 was a quarter of “unparalleled geographic and product expansion” in the company's history[2] - Unit economics and gross margins continue to improve, with European acquisitions (e.g., Telcom) expected to further enhance future margins and bring new customers[2] - Sequential revenue decline attributed to order timing, uncertainty in US government zero-emission vehicle strategy, and changes in energy storage system certification requirements (expected completion in Q1 2025)[2] - Revenue is projected to resume growth in 2025 with significantly improved margins[2] - The company remains debt-free, with ample cash and $100 million in unused credit facilities[2] Third Quarter 2024 Financial Summary Revenues Q3 2024 revenue was $11.5 million, a 22% sequential decrease, but commercial customers drove 47.9% of revenue, an 80% increase from Q3 2023, with year-to-date revenue at $41 million Revenue Performance Summary | Metric | Q3 2024 | Change vs. Q2 2024 | YTD 2024 | | :----- | :------ | :------------------- | :------- | | Revenue | $11.5 million | -22% | $41.0 million | | Commercial Customer Revenue Share (Q3) | 47.9% | +80% vs. Q3 2023 | N/A | - The company is diversifying its product portfolio and expanding its geographic footprint to reduce reliance on large EV ARC™ orders from federal agencies[3] Gross Profit Q3 2024 gross profit was $1.2 million (10.7% of sales), a 9 percentage point improvement from Q3 2023, with year-to-date gross profit at $5.1 million (12.0% of sales), expecting further gains from optimization Gross Profit and Margin Analysis | Metric | Q3 2024 | Q3 2023 | Change (Percentage Points) | YTD 2024 | YTD 2023 | Change (Percentage Points) | | :----- | :------ | :------ | :---------- | :------- | :------- | :---------- | | Gross Profit | $1.2 million | $0.283 million | N/A | $5.1 million | $0.8 million | N/A | | Gross Margin | 10.7% | 1.7% | +9 | 12.0% | 2.0% | +10 | | Gross Margin excl. Non-Cash Items | 17.6% | N/A | N/A | 18.3% | N/A | N/A | - Gross profit improvement driven by optimized material pricing, engineering changes, and supplier collaboration, supported by the Serbia facility[5] Operating Expenses Q3 2024 operating expenses were a $50 thousand credit ((0.4%) of revenue), a $4.1 million reduction from Q3 2023, mainly due to a $6.1 million non-cash change in contingent consideration fair value, with year-to-date expenses at $11.6 million (28% of revenue) Operating Expenses Summary | Metric | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :----- | :------ | :------ | :----- | :------- | :------- | :----- | | Total Operating Expenses | ($50 thousand) | $4.0 million | ($4.1 million) | $11.6 million | $11.9 million | ($0.3 million) | | % of Revenue (Q3) | (0.4%) | 24% | N/A | N/A | N/A | N/A | | % of Revenue (YTD) | N/A | N/A | N/A | 28% | 25% | N/A | - Q3 operating expense reduction primarily due to a $6.1 million non-cash change in the fair value of contingent consideration from the Amiga acquisition, partially offset by increases in warrant amortization, equity compensation, Beam Europe operating expenses, customer service accommodation costs, and facility expansion[6][7] Net Income (Loss) Q3 2024 net income was $1.3 million, a significant improvement from a $3.6 million net loss in Q3 2023, primarily due to a $6.1 million non-cash contingent consideration fair value reversal, with year-to-date net loss at $6.7 million Net Income (Loss) Summary | Metric | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :----- | :------ | :------ | :----- | :------- | :------- | :----- | | Net Income (Loss) | $1.3 million | ($3.6 million) | +$4.9 million | ($6.7 million) | ($11.0 million) | +$4.3 million | | Net Income (Loss) excl. Non-Cash Items | ($3.0 million) | N/A | N/A | ($5.8 million) | N/A | N/A | - Q3 net income primarily resulted from a $6.1 million non-cash contingent consideration fair value reversal[8] - Net loss includes non-cash expenses such as depreciation, intellectual property amortization, non-cash compensation expenses, bad debt provisions, and contingent consideration fair value adjustments[8][9] Cash Position Cash as of September 30, 2024, was $4.9 million, down from $10.4 million at December 31, 2023, mainly due to a $2.7 million Amiga acquisition payment and increased inventory Cash Position Overview | Metric | September 30, 2024 | December 31, 2023 | Change | | :----- | :----------------- | :---------------- | :----- | | Cash | $4.9 million | $10.4 million | ($5.5 million) | - Cash decrease primarily due to a $2.7 million payment for the Amiga acquisition and operating cash used for inventory increases[10] Conference Call Information Call Details Management will host a conference call on Friday, November 15, 2024, at 4:30 PM ET to review financial results, provide updates, and conduct a Q&A session - Date: Friday, November 15, 2024[10] - Time: 4:30 PM ET[10] - Purpose: Review financial results and provide company updates, followed by a Q&A session[10] - Registration Link: https://dpregister.com/sreg/10194520/fdfb61e848[11](index=11&type=chunk) - Toll-Free Dial-In: 1-844-739-3880; International Dial-In: 1-412-317-5716[11] Webcast Archive A webcast archive of the conference call will be available for one year at the provided URL - Webcast archive will be available for one year at the URL above[12] About Beam Global Company Profile Beam Global is a clean technology innovator, developing sustainable infrastructure for clean energy, transportation electrification, rapid EV charging, secure energy storage, and critical energy security, operating in the US and Europe with a strong patent portfolio - Core Business: Clean technology innovator, developing and manufacturing sustainable infrastructure products and technologies[12] - Focus Areas: Sustainable energy infrastructure, rapid deployment and scalable EV charging solutions, secure energy storage, and critical energy security[12] - Operating Locations: US (San Diego, Broadview, Illinois) and Europe (Belgrade and Kraljevo, Serbia)[12] - Intellectual Property: Possesses a deep patent portfolio[12] - Ticker: Listed on Nasdaq under BEEM[12] Forward-Looking Statements Disclaimer This press release contains forward-looking statements about future profitability, acquisitions, revenues, and financial performance, subject to known and unknown risks and uncertainties that could cause actual results to differ materially - The press release contains forward-looking statements, including views on future profitability, acquisitions (Amiga and Telcom), anticipated revenues, and future profits[13] - Forward-looking statements are often accompanied by words such as “estimate,” “project,” “believe,” and “expect”[13] - These statements are predictive and involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from forward-looking statements[13] - Except as required by law, Beam Global disclaims any obligation to update any forward-looking statements[13] Investor Relations & Media Contacts Contact Information Contact information for investor relations (Core IR) and media inquiries (Skyya PR) is provided Investor Relations and Media Contacts | Contact Type | Company | Phone | Email | | :----------- | :------ | :---- | :---- | | Investor Relations | Core IR | +1 516-222-2560 | IR@BeamForAll.com | | Media Contacts | Skyya PR | +1 651-335-0585 | Press@BeamForAll.com | Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of September 30, 2024, total assets decreased to $67.26 million from $77.64 million (Dec 31, 2023), mainly due to reduced cash and receivables, while total liabilities decreased to $20.84 million from $28.10 million, primarily from contingent consideration reduction Condensed Consolidated Balance Sheets ($ in thousands) | Metric | September 30, 2024 | December 31, 2023 | Change | | :-------------------- | :----------- | :----------- | :----- | | ASSETS | | | | | Cash | $4,874 | $10,393 | $(5,519) | | Accounts Receivable, net | $11,343 | $15,943 | $(4,600) | | Inventory, net | $12,714 | $11,933 | $781 | | Total Current Assets | $31,118 | $40,722 | $(9,604) | | Property and Equipment, net | $14,909 | $16,513 | $(1,604) | | Goodwill | $11,027 | $10,270 | $757 | | Intangible Assets, net | $8,271 | $9,050 | $(779) | | TOTAL ASSETS | $67,262 | $77,643 | $(10,381) | | LIABILITIES | | | | | Accounts Payable | $8,349 | $9,732 | $(1,383) | | Total Current Liabilities | $13,250 | $16,874 | $(3,624) | | Contingent Consideration, non-current | $456 | $4,725 | $(4,269) | | TOTAL LIABILITIES | $20,838 | $28,101 | $(7,263) | | STOCKHOLDERS' EQUITY | | | | | Additional Paid-in Capital | $145,553 | $142,265 | $3,288 | | Accumulated Deficit | $(100,017) | $(93,361) | $(6,656) | | TOTAL STOCKHOLDERS' EQUITY | $46,424 | $49,542 | $(3,118) | Condensed Consolidated Statements of Operations and Comprehensive Loss Q3 2024 revenue was $11.5 million (vs. $16.5 million in Q3 2023), but gross profit significantly increased to $1.2 million (10.7% gross margin) from $0.3 million (1.7% gross margin) in Q3 2023, resulting in a $1.3 million net income for Q3 2024 compared to a $3.6 million net loss in Q3 2023 Condensed Consolidated Statements of Operations and Comprehensive Loss ($ in thousands) | Metric | Q3 2024 | Q3 2023 | Change (Sequential) | YTD 2024 | YTD 2023 | Change (YOY) | | :-------------------- | :------ | :------ | :----------- | :------- | :------- | :----------- | | Revenue | $11,482 | $16,486 | $(5,004) | $40,855 | $47,325 | $(6,470) | | Cost of Revenues | $10,251 | $16,203 | $(5,952) | $35,789 | $46,536 | $(10,747) | | Gross Profit | $1,231 | $283 | $948 | $5,066 | $789 | $4,277 | | Operating Expenses | $(51) | $4,037 | $(4,088) | $11,623 | $11,925 | $(302) | | Operating Income (Loss) | $1,282 | $(3,754) | $5,036 | $(6,557) | $(11,136) | $4,579 | | Net Income (Loss) | $1,297 | $(3,629) | $4,926 | $(6,656) | $(10,990) | $4,334 | | Net Income (Loss) Per Share - Basic | $0.09 | $(0.26) | $0.35 | $(0.46) | $(0.79) | $0.33 | | Weighted Average Shares Outstanding - Basic | 14,702 | 13,936 | 766 | 14,558 | 13,939 | 619 |