- Accelerated demand with pre-order1 book increasing 161% to 2,356 units2 as of December 31, 2021, compared to 901 units2 as of December 31, 2020. Fleet operators account for about 20% of total pre-orders.
- Manufacturing milestone reached with the production of first consumer-ready electric snowmobiles during the quarter and began initial deliveries on March 18, 2022.
- Strong unlevered balance sheet with $87 million of cash and cash equivalents as at December 31, 2021.
MONTREAL, March 28, 2022 /CNW/ - Taiga Motors Corporation (TSX: TAIG) ("Taiga" or the "Company"), a leading electric off-road vehicle manufacturer, today reported its financial and operating results for the fourth quarter and full year 2021 ended on December 31, 2021.
Management Commentary
"The fourth quarter was a milestone quarter for Taiga. After navigating through supply chain disruptions and other challenges, we manufactured our first production electric snowmobiles with landmark deliveries starting on March 18, 2022. This achievement marks the shift to electrification within the powersports industry," said Sam Bruneau, CEO of Taiga.
"Looking back on 2021, I am proud of what our teams have accomplished. In addition to achieving our first production snowmobile despite global supply chain constraints, we have expanded our operations, more than tripled our workforce, launched an off-road charging network and became a publicly listed company."
Taiga remains focused on three key areas of the business, which include ramping up production and deliveries globally, building a culture of high performance, and increasing our brand awareness. The future of off-road is electric, and Taiga is working to directly support its mission to accelerate no-compromise access to the outdoors for all.
Fourth Quarter Financial Highlights (All amounts in Canadian dollars unless otherwise indicated)
- Cash and cash equivalents of $87 million as at December 31, 2021 compared to $110 million as at September 30, 2021.
- Research & Development (R&D) expense (net of tax credits) increased to $2.2 million from $1.1 million compared to the third quarter of 2021.
- General & Administration (G&A) expense increased to $8.0 million from $2.7 million compared to the third quarter of 2021.
- Sales & Marketing (S&M) expense increased to $1.5 million from $1.1 million compared to the third quarter of 2021.
- Net loss for the period was $11.3 million compared to $5.1 million in the third quarter of 2021.
Fourth Quarter Operational Updates
- First production electric snowmobile units successfully manufactured.
- Launched an off-road charging network and completed installation of the first two charging sites with level 2 and level 3 stations in Quebec.
- Increased headcount to 187 full time employees at the end of 2021, with approximately half the work force employed in engineering.
- Appointed Eric Bussières as Chief Financial Officer.
Outlook
On March 18, 2022, the Company announced that it initiated deliveries of its first Nomad™ snowmobiles. Taiga's 2022 Nomad marks the world's first production electric snowmobile sale. On March 18, 2022, and the Company also finalised the $30 million loan agreement for equipment with a government entity.
Following these important milestones, Taiga is working diligently to ramp up its production and deliveries in 2022. Given the global semiconductor shortage, Taiga has sourced alternative supplies for its vehicles and secured chips for 1,000 units, however production in 2022 will remain limited by further factors, including the availability of raw materials and other components, manufacturing process optimization and volume related cost efficiencies. For 2023, Taiga has strategically procured certain long lead components in line with its expected production ramp up.
Conference Call
Taiga management will hold a conference call today (March 28, 2022) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results.
Toll-Free Dial-In: 877-407-6184
International Dial-In: +1 201-389-0877
The conference call will be broadcast live and available for replay here and via the Investor Relations section of Taiga's website.
A telephonic replay of the conference call will be available after 12:00 p.m. Eastern time on the same day through April 4, 2022.
Toll-free replay number: 877-660-6853
International replay number: +1 201-612-7415
Replay ID: 13727263
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the powersports landscape with breakthrough electric off-road vehicles. Through a clean-sheet engineering approach, Taiga has pushed the frontiers of electric technology to achieve extreme power-to-weight ratios and thermal specifications required to outperform comparable high-performance combustion powersports vehicles. The first models released include a lineup of electric snowmobiles and personal watercraft to deliver on a rapidly growing demand from recreational and commercial customers who are seeking better ways to explore the great outdoors without compromise. For more information, visit https://www.taigamotors.com.
Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to our objectives and the strategies to achieve these objectives, the expected operations, financial results and condition of the Company, expectations regarding market trends, overall market growth rates and the Company's growth rates, the Company's future objectives and strategies to achieve those objectives, expected timelines for achieving mass-production capabilities, the ramp-up of our current facility and development of its second, the production capacity of the new production facility, the anticipated performance of the charging network, the ability to roll out additional off-road charging stations within the anticipated timeframe, the anticipated performance of customer experiences and customer demand for our products, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions.
This forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", and "continue", as well as the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Forward-looking information is provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such information may not be appropriate for other purposes.
Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the effective further supply chain disruptions, and the impact of such disruptions on ability to fulfil orders, pre-orders for the Company's vehicles being cancelled and those described in the Company's management's discussion and analysis for the three and twelve month periods ended December 31, 2021, and under the "Risk Factors" section of the Company's annual information form filed on March 28, 2022 on the Company's SEDAR profile at sedar.com.
Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.
All of the forward-looking information contained in this press release is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
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1 Pre-orders for new Taiga vehicles are cancelable and the deposit fully refundable, and there can be no assurance that such pre-orders will be converted into sales. |
2 Pre-orders adjusted to remove 345 units pre-ordered by dealers that have been or are in the process of being refunded due to the shift to a hybrid direct-to-consumer delivery model. |
SOURCE Taiga Motors Corporation
Company Contacts: Investor Relations, Shahroz Hussain, [email protected]; Media Contact, Bradley Grill, [email protected]
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