Workhorse(US:WKHS)2025-05-15 13:02Financial Data and Key Metrics Changes - Sales net of returns and allowances for Q1 2025 were $600,000, a decrease from $1,300,000 in Q1 2024, primarily due to the Arrow divestiture and decreased W4CC and W56 truck sales [27] - Cost of sales for Q1 2025 was $5,200,000, down from $7,400,000 in the prior year, driven by lower sales volume and reduced labor costs [28] - Selling, general and administrative expenses decreased to $6,800,000 from $14,100,000 in the prior year, primarily due to lower headcount and related expenses [28] - Research and development expenses were $1,500,000, down from $3,500,000 in the prior year, mainly due to decreased employee compensation [29] - Interest expense net for Q1 2025 was $5,300,000, compared to $1,300,000 in the prior year, driven by higher outstanding convertible note balances [29] - As of March 31, 2025, the company had $2,600,000 in cash and cash equivalents and $27,900,000 in restricted cash [30] Business Line Data and Key Metrics Changes - Year to date, the company booked purchase orders for 27 W56 Step Vans, with deliveries expected in the next 60 to 120 days [6] - The company delivered FedEx's 2024 order of fully equipped W56 Step Vans, which are expected to be deployed at three terminals by the end of Q2 [8] - The company began delivering the extended wheelbase W56 Step Van to a national fleet, providing a larger electric alternative without range or payload compromise [9] - The company expanded its dealer and service networks, adding new partners to enhance market coverage and service reliability [11] Market Data and Key Metrics Changes - The commercial EV market is experiencing a shift in customer demand, with increasing interest in the company's vehicles and growing momentum through vehicle orders and deployments [5] - The company is the only North American OEM producing complete electric step vans in-house, providing a competitive advantage in quality and lead times [14][15] - The company has seen competitors struggling with production and quality concerns, highlighting its position as a reliable provider of electric trucks [23][24] Company Strategy and Development Direction - The company is focused on building dependable electric trucks and earning customer confidence through rigorous execution and partnerships [4][5] - The company aims to expand its product portfolio to meet the demands of last-mile delivery, with plans to introduce more range options and configurations [16][17] - The company is maintaining financial discipline and cash preservation while navigating market challenges and seeking larger fleet orders [12][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of disciplined execution and real-world impact, focusing on building and shipping key customer orders [34] - The company is ramping production in line with demand and assessing new battery suppliers to strengthen its supply chain [34] - Management acknowledged ongoing market challenges but expressed confidence in the company's ability to scale for long-term growth [26] Other Important Information - The company completed a reverse stock split in March 2025 to regain NASDAQ compliance, which is crucial for accessing capital [13] - The company received CMBSS certification for the import and sale of vehicles into Canada, broadening its international footprint [12] Q&A Session Summary Question: What is the company's outlook for future orders? - Management indicated that they anticipate receiving the 2025 RFQ from FedEx in Q2 and are actively engaging with multiple logistics providers for demos and orders [9][33] Question: How is the company managing its financial runway? - The company has successfully reduced monthly operating cash to below $3,000,000 and is focused on further cost reductions and increasing cash reserves [31][32]