LiveWire Group, Inc. (“LiveWire” or the “Company”) (NYSE: LVWR)
today reported second quarter 2024 results.
"In the second quarter, we achieved continued growth in existing
markets for our Electric Motorcycles segment. In fact, we
maintained our position as the #1 on-road electric motorcycle
retailer in the U.S. for the first half of 2024. With a 12 percent
improvement in consolidated operating loss for the quarter over
prior year, we remain committed to cost reduction initiatives while
investing in portfolio expansion in both our Electric Motorcycles
and STACYC segments, with upcoming new products planned,” said
Karim Donnez, CEO, LiveWire.
Second Quarter 2024 Summary of Results
- Unit sales of 158 electric motorcycles, an increase of 35% over
first quarter 2024 and triple digit increase over second quarter
2023.
- In line with expectations, consolidated operating loss improved
by $3.8 million driven by overall cost reduction initiatives.
LiveWire Group, Inc. – Consolidated
Results
$ in millions*
2nd quarter
2024
2023
Change
Motorcycle Units
158
33
379%
Electric Balance Bike Units
3,825
8,206
(53%)
Consolidated Revenue
$6.4
$7.0
(8%)
Electric Motorcycles
$2.4
$0.8
219%
STACYC
$4.0
$6.3
(36%)
Consolidated Operating Loss
($28.2)
($32.0)
12%
Electric Motorcycles
($26.8)
($31.9)
16%
STACYC
($1.4)
($0.1)
(1,492%)
Net Loss
($24.8)
($40.7)
39%
*Amounts may not add or recalculate due to
rounding.
The Company’s consolidated net loss was $24.8 million for the
second quarter of 2024 compared to $40.7 million in the same period
of the prior year driven by the segment results noted below, a
decrease of $1.2 million in interest income offset by an increase
of $13.2 million of non-operating income related to the decrease in
fair value of the outstanding warrants as of June 30, 2024 as
compared to prior year.
LiveWire Group, Inc. is comprised of two business segments:
- Electric Motorcycles – focused on the sale of electric
motorcycles and related products
- STACYC – focused on the sale of electric balance bikes for kids
and related products
Electric Motorcycles
Electric Motorcycles revenue increased $1.7 million in the
second quarter of 2024 compared to the prior year period, due to
higher unit sales in the quarter. Selling, engineering and
administrative expenses decreased $3.1 million compared to the
prior year largely as a result of overall cost reduction
initiatives. In line with expectations, operating loss decreased by
$5.1 million compared to the second quarter of 2023 driven by
decreases in selling, engineering and administrative expenses and
cost of goods sold.
STACYC
In line with expectations, STACYC revenue and operating income
were down compared to same quarter 2023 primarily due to a
reduction in third party branded distributor volumes and a planned
increase in spend relating to product development costs for new
models.
2024 Financial Outlook
For the full year 2024, the Company continues to expect:
- Electric Motorcycle sales of 1,000 to 1,500 revenue units
- LiveWire Group operating loss of $105 to $115 million
Webcast
The public is invited to attend an audio webcast from 8-9 a.m.
CDT. LiveWire leadership will be joining the Harley-Davidson, Inc.
audio webcast to discuss our results, developments in the business,
and updates to the Company’s outlook. The webcast login can be
accessed at
https://investor.livewire.com/news-events-1/events/default.aspx.
The audio replay will be available by approximately 10:00 a.m.
CDT.
About LiveWire
LiveWire has a dedicated focus on the electric motorcycle
sector. LiveWire’s majority shareholder is Harley-Davidson, Inc.
LiveWire comes from the lineage of Harley-Davidson and is
capitalizing on a decade of its learnings in the EV sector. With a
dedicated focus on EV, LiveWire plans to develop the technology of
the future and to invest in the capabilities needed to lead the
transformation of motorcycling. www.livewire.com
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press
release are “forward-looking statements” intended to qualify for
the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts contained in this press release,
including statements concerning possible or assumed future actions,
business strategies, events or results of operations, and any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Words or phrases such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “is
on track,” “may,” “might,” “objective,” “ongoing,” “plan,”
“potential,” “predict,” “project,” “remain committed,” “should,”
“target,” “will” and “would,” or similar words or phrases, or the
negatives of those words or phrases, may identify forward-looking
statements, but the absence of these words does not necessarily
mean that a statement is not forward-looking. The forward-looking
statements in this press release are only predictions. We have
based these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our business, financial condition
and results of operations. These forward-looking statements speak
only as of the date of this press release and are subject to a
number of important factors that could cause actual results to
differ materially from those in the forward-looking statements,
including the risks, uncertainties and assumptions described in
prior public filings titled “Risk Factors.” These forward-looking
statements are subject to numerous risks, including, without
limitation, the following: our history of losses and expectation to
incur significant expenses and continuing losses for the
foreseeable future; our limited operating history, the rollout of
our business and the timing of expected business milestones,
including our ability to develop and manufacture electric vehicles
of sufficient quality and appeal to customers on schedule and on a
large scale; our financial and business performance, including
financial projections and business metrics and any underlying
assumptions thereunder; our ability to obtain funding for our
operations and manage costs; our future capital requirements and
sources and uses of cash; changes in our strategy, future
operations, financial position, estimated revenues and losses,
projected costs, prospects and plans, including our ability to
effectively execute the Company’s relocation and streamlined
headcount plan within expected costs and time and our ability to
realize the expected savings in 2024 and on an ongoing annual
basis; our ability to attract and retain a large number of
customers; challenges we face as a pioneer into the
highly-competitive and rapidly evolving electric vehicle industry;
our operational and financial risks if we fail to effectively and
appropriately separate the LiveWire business from the H-D business;
H-D making decisions for its overall benefit that could negatively
impact our overall business; our relationship with H-D and its
impact on our other business relationships; our ability to leverage
contract manufacturers, including H-D and Kwang Yang Motor Co.,
Ltd., a Taiwanese company (“KYMCO”), to contract manufacture our
electric vehicles; retail partners being unwilling to participate
in our go-to-market business model or their inability to establish
or maintain relationships with customers for our electric vehicles;
potential delays in the design, manufacture, financing, regulatory
approval, launch and delivery of our electric vehicles; building
out our supply chain, including our dependency on our existing
suppliers and our ability to source suppliers, in each case many of
which are single-sourced or limited-source suppliers, for our
critical components such as batteries and semiconductor chips; our
ability to rely on third-party and public charging networks; our
ability to attract and retain key personnel; our business,
expansion plans and opportunities, including our ability to scale
our operations and manage our future growth effectively; the
effects on our future business of competition, the pace and depth
of electric vehicle adoption generally and our ability to achieve
planned competitive advantages with respect to our electric
vehicles and products, including with respect to reliability,
safety and efficiency; our business and H-D’s business overlapping
and being perceived as competitors; our inability to maintain a
strong relationship with H-D or to resolve favorably any disputes
that may arise between us and H-D; our dependency on H-D for a
number of services, including services relating to quality and
safety testing. If those service arrangements terminate, it may
require significant investment for us to build our own safety and
testing facilities, or we may be required to obtain such services
from another third-party at increased costs; any decision by us to
electrify H-D products, or the products of any other company; our
expectations regarding our ability to obtain and maintain
intellectual property protection and not infringe on the rights of
others; potential harm caused by misappropriation of our data and
compromises in cybersecurity; changes in laws, regulatory
requirements, governmental incentives and fuel and energy prices;
the impact of health epidemics, including the COVID-19 pandemic, on
our business, the other risks we face and the actions we may take
in response thereto; litigation, regulatory proceedings,
complaints, product liability claims and/or adverse publicity; and
the possibility that we may be adversely affected by other
economic, business and/or competitive factors. Because
forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified and
some of which are beyond our control, you should not rely on these
forward-looking statements as predictions of future events. The
events and circumstances reflected in our forward-looking
statements may not be achieved or occur, and actual results could
differ materially from those projected in the forward-looking
statements. Moreover, we operate in an evolving environment. Some
of these risks and uncertainties may in the future be amplified by
new risk factors and uncertainties that may emerge from time to
time, and it is not possible for management to predict all risk
factors and uncertainties. As a result of these factors, we cannot
assure you that the forward-looking statements in this press
release will prove to be accurate. Except as required by applicable
law, we do not plan to publicly update or revise any
forward-looking statements contained herein, whether as a result of
any new information, future events, changed circumstances, or
otherwise. You should read this earnings release completely and
with the understanding that our actual future results may be
materially different from what we expect. We qualify all of our
forward-looking statements by these cautionary statements.
LiveWire Group, Inc.
Consolidated Statements of
Operations
(In thousands, except per
share amounts)
(Unaudited)
Three months ended
Six months ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenue, net
$
6,449
$
7,026
$
11,427
$
14,788
Costs and expenses:
Cost of goods sold
8,231
9,966
17,336
16,464
Selling, administrative and engineering
expense
26,383
29,044
52,678
55,215
Total operating costs and expenses
34,614
39,010
70,014
71,679
Operating loss
(28,165
)
(31,984
)
(58,587
)
(56,891
)
Interest income
1,596
2,754
3,612
5,446
Change in fair value of warrant
liabilities
1,792
(11,438
)
6,550
(10,370
)
Loss before income taxes
(24,777
)
(40,668
)
(48,425
)
(61,815
)
Income tax provision
28
64
24
64
Net loss
$
(24,805
)
$
(40,732
)
$
(48,449
)
$
(61,879
)
Net loss per share, basic and diluted
$
(0.12
)
$
(0.20
)
$
(0.24
)
$
(0.31
)
Weighted-average shares, basic and
diluted
203,184
202,409
203,136
202,407
LiveWire Group, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
June 30, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
113,011
$
167,904
Accounts receivable, net
1,911
4,295
Accounts receivable from related party
468
3,402
Inventories, net
34,062
32,122
Other current assets
2,035
3,004
Total current assets
151,487
210,727
Property, plant and equipment, net
36,818
37,682
Goodwill
8,327
8,327
Deferred tax assets
6
4
Lease assets
1,197
1,868
Intangible assets, net
1,185
1,347
Other long-term assets
5,896
6,192
Total assets
$
204,916
$
266,147
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,392
$
3,554
Accounts payable to related party
18,399
20,371
Accrued liabilities
18,291
21,189
Current portion of lease liabilities
688
1,152
Total current liabilities
38,770
46,266
Long-term portion of lease liabilities
561
792
Deferred tax liabilities
105
93
Warrant liabilities
5,769
12,319
Other long-term liabilities
685
814
Total liabilities
45,890
60,284
Shareholders' equity:
Preferred Stock
—
—
Common Stock
20
20
Treasury Stock
(2,896
)
(1,969
)
Additional paid-in-capital
342,346
339,783
Accumulated deficit
(180,437
)
(131,988
)
Accumulated other comprehensive income
(7
)
17
Total shareholders' equity
159,026
205,863
Total liabilities and shareholders'
equity
$
204,916
$
266,147
LiveWire Group, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Six months ended
June 30, 2024
June 30, 2023
Cash flows from operating activities:
Net loss
$
(48,449
)
$
(61,879
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
5,042
1,372
Change in fair value of warrant
liabilities
(6,550
)
10,370
Stock compensation expense
2,563
4,202
Provision for doubtful accounts
22
55
Deferred income taxes
10
63
Inventory write-down
3,249
1,626
Cloud computing arrangements development
costs
—
(640
)
Other, net
(572
)
(629
)
Changes in current assets and
liabilities:
Accounts receivable, net
2,362
(2,407
)
Accounts receivable from related party
2,934
118
Inventories
(5,189
)
(4,585
)
Other current assets
1,215
1,905
Accounts payable and accrued
liabilities
(3,550
)
(1,357
)
Accounts payable to related party
(1,972
)
10,591
Net cash used by operating activities
(48,885
)
(41,195
)
Cash flows from investing activities:
Capital expenditures
(5,080
)
(8,175
)
Net cash used by investing activities
(5,080
)
(8,175
)
Cash flows from financing activities:
Repurchase of common stock
(928
)
—
Proceeds received from exercise of
warrants (Note 7)
—
2
Net cash used by financing activities
(928
)
2
Net decrease in cash and cash
equivalents
$
(54,893
)
$
(49,368
)
Cash and cash equivalents:
Cash and cash equivalents—beginning of
period
$
167,904
$
265,240
Net decrease in cash and cash
equivalents
(54,893
)
(49,368
)
Cash and cash equivalents—end of
period
$
113,011
$
215,872
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725534905/en/
Media Contact: Jenni Coats (414) 343-7902 Financial
Contact: Shawn Collins (414) 343-8002
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