MELBOURNE, Fla., Nov. 7, 2023
/PRNewswire/ -- Eve Holding, Inc.
("Eve") (NYSE: EVEX and EVEXW) reports its third 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 and services and
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 $31.2
million in 3Q23 versus $36.7
million in 3Q22. Setting aside non-recurring
warrant-related expenses connected to Eve's PIPE investments and
the merger with Zanite (SPAC transaction) of $17.4 million incurred in 3Q22, net loss was then
$19.3 million. The higher recurring
net losses in 3Q23 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 $4.4 million
in the 3Q23 versus a gain of $2.0
million in the 3Q22, due to the current environment of
higher interest rates translating into increased interest income on
Eve's cash position in 2023 compared to 2022.
R&D expenses were $28.6
million in 3Q23, doubling the $14.3
million in 3Q22. Our R&D costs 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 3Q22 were $6.8
million and included non-recurring expenses, such as
Directors & Officers Insurance, expenses related to warrant
issuance, as well as legal and audit third-party consulting
payments. When excluding these one-off charges of $1.9 million, SG&A expenses increased from
c.$4.9 million in 3Q22 to
$5.0 million in 3Q23. This is
mostly due to the higher number of direct employees at Eve, who
perform critical corporate and administrative functions, such as
strategy, sales, legal, supply chain and finance activities.
Lastly, R&D and SG&A labor expenses were also positively
impacted by the c.8% appreciation of the Brazilian Real vs. the
U.S. dollar, as most of our costs are incurred in Brazil.
R&D expenses in the 9M23 reached $72.0 million, vs. $33.8
million in 9M22, while SG&A increased from $12.4 million in the 9M22 (excluding $11.5 million in non-recurring and
transaction-related expenses) to $17.8
million in the 9M23. Like the quarterly numbers, higher
accumulated costs and expenses are driven by higher R&D
activities necessary to progress the eVTOL design, including the
MSA, and an increase in SG&A expenses.
Including personnel contracted through the MSA with Embraer and
its subsidiaries, Eve employs approximately 760 full-time
equivalent professionals in the development of its eVTOL and other
elements of the UAM ecosystem such as Service and Operations
Solutions and Urban Air Traffic Management, versus approximately
460 in 3Q22.
Eve's total cash consumption in 3Q23 was $22.4 million, versus $17.3 million in 3Q22. In the nine months until
September 2023, cash consumption was
$70.2 million, vs. $39.1 million in 9M22. 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 3Q23, Eve's cash, cash equivalents, financial
investments, and related-party loan with Embraer, totaled
$256.4 million. This is down just
$12.7 million in the quarter,
reflecting the withdrawal of the first tranche of the two credit
lines from Brazil's National
Development Bank (BNDES) that had been approved in December 2022.
Eve received R$57.0 million
(US$11.7 million, using the
Sept. 30, 2023, exchange rate) of the
total available funds of R$490.0
million (US$97.9 million) from
BNDES. Both lines offer attractive terms and conditions that
are aligned with Eve's early-stage development, with long-term
maturity and amortization grace period and will support Eve as it
continues to advance its eVTOL program.
With that, Eve's 3Q23 total liquidity – including still-undrawn
portions of the BNDES credit lines is now at $342.5 million. We expect to continue
drawing from these facilities through the end of 2024, which will
help Eve better manage cash position and optimize our capital
structure as well as capital deployment towards the development of
our eVTOL program.
For additional information, please access the full 3Q23 Earnings
release, available in the Investor Relations website at
ir.eveairmobility.com
Webcast details
Management will discuss the results on a conference call on
November 7, 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
November 21, 2023, by dialing
1-844-512-2921 or 1-412-317-6671 and entering passcode
13741134.
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 contained in this release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements may be
identified by words such as "may," "will," "expect," "intend,"
"anticipate," "believe," "estimate," "plan," "project," "could,"
"should," "would," "continue," "seek," "target," "guidance,"
"outlook," "if current trends continue," "optimistic," "forecast"
and other similar words or expressions. All statements, other than
statements of historical facts, are forward-looking statements,
including, but not limited to, statements about the company's
plans, objectives, expectations, outlooks, projections, intentions,
estimates, and other statements of future events or conditions,
including with respect to all companies or entities named within.
These forward-looking statements are based on the company's current
objectives, beliefs and expectations, and they are subject to
significant risks and uncertainties that may cause actual results
and financial position and timing of certain events to differ
materially from the information in the forward-looking statements.
These risks and uncertainties include, but are not limited to,
those set forth herein as well as in Part I, Item 1A. Risk Factors
and Part II, Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations of the company's most
recent Annual Report on Form 10-K, Part I, Item 2. Management's
Discussion and Analysis of Financial Condition and Results of
Operations and Part II, Item 1A. Risk Factors of the company's most
recent Quarterly Report on Form 10-Q, and other risks and
uncertainties listed from time to time in the company's other
filings with the Securities and Exchange Commission. Additionally,
there may be other factors of which the company is not currently
aware that may affect matters discussed in the forward-looking
statements and may also cause actual results to differ materially
from those discussed. The company does not assume any obligation to
publicly update or supplement any forward-looking statement to
reflect actual results, changes in assumptions or changes in other
factors affecting these forward-looking statements. other than as
required by law. Any forward-looking statements speak only as of
the date hereof or as of the dates indicated in the statement.
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.