MELBOURNE, Fla., Aug. 8, 2023
/PRNewswire/ -- Eve Holding, Inc.
("Eve") (NYSE: EVEX and EVEXW) reports its second quarter 2023
earnings results.
Financial highlights
Eve is a pre-operational company dedicated to the development of
an eVTOL (electric Vertical Takeoff and Landing) aircraft and the
Urban Air Mobility (UAM) ecosystem that includes the aircraft
development, air traffic management systems as well as a Services
& Support solutions. Eve is not yet producing revenue; we do
not expect meaningful revenues during the development phase of our
aircraft, and financial results should be mostly related to costs
associated with the program development.
Eve reported a net loss of $31.4
million in 2Q23 versus $107.2
million in 2Q22. Setting aside non-recurring
warrant-related expenses connected to Eve's PIPE investments and
the merger with Zanite (SPAC transaction) of $87.4 million incurred in 2Q22, net loss was then
$19.9 million. The higher recurring
net losses in 2Q23 compared to the same period of 2022 were mostly
driven by higher Research & Development (R&D) expenses,
which are costs and activities necessary to advance the eVTOL
design, including the Master Service Agreement (MSA) with Embraer,
as well as higher recurring Selling, General & Administrative
(SG&A) expenses. Higher R&D and recurring SG&A expenses
during the quarter were partly offset by financial investment
income and FX gains of $4.1 million
in the 2Q23 versus a gain of $0.6
million in the 2Q22, on benefits from higher interest rates
and cash position on Eve's financial investments.
R&D expenses were $21.8
million in 2Q23, compared with $10.4
million in 2Q22. Our R&D efforts are primarily driven by
the MSA with Embraer that performs several developmental activities
for Eve. These efforts continue to intensify as the design of Eve's
eVTOL matures, including internal design, engineering, and program
development and testing infrastructure.
SG&A expenses in 2Q22 were $15.7
million but included IPO and other non-recurring expenses.
When excluding one-off items, which totaled approximately
$9.6 million, SG&A expenses
increased from approximately $6.1
million in the 2Q22 to $6.6
million in the 2Q23, reflecting mainly the higher number of
direct employees at Eve – who perform critical corporate and
administrative functions including, strategy, sales, legal, supply
chain and finance activities. Lastly, R&D and SG&A labor
expenses were also helped by the c.5% devaluation of the U.S.
dollar versus the Brazilian Real as most of our costs were incurred
in Brazil.
R&D expenses in the 1H2023 reached $43.3 million or more than double the amount
spent in the 1H2022 of $19.5 million
while SG&A expenses increased from $7.5
million in the 1H2022 (excluding non-recurring expenses) to
$12.8 million in the 1H2023. Similar
to the quarterly numbers, higher net losses in the 1H2023 compared
to the same period of 2022 are driven by higher R&D activities
necessary to progress the eVTOL design, including the MSA, and an
increase on SG&A expenses.
Including employees contracted through the MSA with Embraer and
its subsidiaries, Eve now has a headcount of approximately
630 people engaged in the development of its eVTOL and other
elements of the UAM ecosystem, versus approximately 380 in
2Q22.
During the second quarter of 2023, Eve's total cash consumption
was $27.8 million, versus
$20.0 million in 2Q22. R&D
associated with Eve's aircraft development and SG&A expenses
mentioned above were the main contributors to the higher cash
consumption during the quarter.
At the end of 2Q23, Eve's liquidity position was $269.0 million – including cash, cash
equivalents, financial investments, and related-party loan with
Embraer, versus $294.6 million at the
end of 1Q23. As of 2Q23, Eve did not have any debt on its balance
sheet. The proceeds from the business combination with Zanite
Acquisition Corp., and strategic PIPE investors raised in 2022,
combined with potential advances from customers and current and
future finance lines are the main sources of capital to fund Eve's
development and certification of its eVTOL.
Eve's 2Q23 total liquidity – including still-undrawn BNDES
credit lines of $101.7 million (to be
disbursed throughout 2023 and 2024), was $370.7 million.
For additional information, please access the full 2Q23 Earnings
release, available in the Investor Relations website at
ir.eveairmobility.com
Webcast details
Management will discuss the results on a conference call on
August 8, 2023 at 9:00 a.m. (Eastern Time). The webcast will be
publicly available in the Upcoming Events section of the company
website (www.eveairmobility.com).
To listen by phone, please dial 1-877-704-4453 or
1-201-389-0920. A replay of the call will be available until
August 22, 2023, by dialing
1-844-512-2921 or 1-412-317-6671 and entering passcode
13739495.
About Eve Holding,
Inc.
Eve is dedicated to accelerating the Urban Air Mobility
ecosystem. Benefitting from a start-up mindset, backed by Embraer
S.A.'s more than 50-year history of aerospace expertise, and with a
singular focus, Eve is taking a holistic approach to progressing
the UAM ecosystem, with an advanced eVTOL project, comprehensive
global services and support network and a unique air traffic
management solution. Since May 10,
2022, Eve is listed on the New York Stock Exchange, where
its shares of common stock and public warrants trade under the
tickers "EVEX" and "EVEXW".
For more information, please visit www.eveairmobility.com
Forward Looking Statements
Certain statements in this press release include
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of
words such as "estimate," "plan," "project," "forecast," "intend,"
"will," "expect," "anticipate," "believe," "seek," "target", "may",
"intend", "predict", "should", "would", "predict", "potential",
"seem", "future", "outlook" or other similar expressions (or
negative versions of such words or expressions) that predict or
indicate future events or trends or that are not statements of
historical matters. All statements other than statements of
historical facts are forward-looking statements and include, but
are not limited to, statements regarding the Company's expectations
with respect to future performance and anticipated financial
impacts of the business combination. These statements are based on
various assumptions, whether or not identified herein, and on the
current expectations of the Company's management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on by any investor as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and may differ from assumptions, and such
differences may be material. Many actual events and circumstances
are beyond the control of the Company.
These forward-looking statements are subject to a number of
risks and uncertainties, including: (i) changes in domestic and
foreign business, market, financial, political and legal
conditions; (ii) failure to realize the anticipated benefits of the
business combination with Zanite Acquisition Corp.; (iii) risks
relating to the uncertainty of the projected financial information
with respect to the Company; (iv) the outcome of any legal
proceedings that may be instituted against the Company related to
the completion of the business combination; (v) future global,
regional or local economic and market conditions, including the
growth and development of the urban air mobility market; (vi) the
development, effects and enforcement of laws and regulations; (vii)
the Company's ability to grow and manage future growth, maintain
relationships with customers and suppliers and retain its key
employees; (viii) the Company's ability to develop new products and
solutions, bring them to market in a timely manner, and make
enhancements to its platform; (ix) the Company's ability to
successfully develop, obtain certification for and commercialize
its aircraft, (x) the effects of competition on the Company's
future business; (xi) the outcome of any potential litigation,
government and regulatory proceedings, investigations and
inquiries; (xi) the impact of the global COVID-19 pandemic and
(xii) those factors discussed under the heading "Risk Factors" in
the Company's Registration Statement on Form S-1/A filed on
July 29, 2022, and subsequent filings
with the Securities and Exchange Commission (SEC). If any of these
risks materialize or our assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. There may be additional risks that the
Company does not presently know or that the Company currently
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements. In
addition, forward-looking statements reflect the Company's
expectations, plans or forecasts of future events and views as of
the date of this press release. The Company anticipates that
subsequent events and developments will cause the Company's
assessments to change. However, while the Company may elect to
update these forward-looking statements at some point in the
future, the Company specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing the Company's assessments as of any date subsequent to
the date of this press release and undue reliance should not be
placed upon the forward-looking statements.
Investor Relations
Lucio Aldworth
Caio Pinez
investors@eveairmobility.com
https://ir.eveairmobility.com/
Media:
media@eveairmobility.com
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SOURCE Eve Holding, Inc.