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EV maker Canoo reports $164M loss

by John Magsam | August 9, 2022 at 2:59 a.m.
A Canoo Lifestyles vehicle is shown, Friday, May 20, 2022 at the Canoo car manufacturing plant in Bentonville. (NWA Democrat-Gazette/Charlie Kaijo)

Canoo Inc., an electric vehicle maker with operations in Bentonville and plans to place its headquarters there, reported a loss for its second quarter of 2022 on Monday afternoon but touted a recent deal with Walmart Stores Inc. and said it has more than $1 billion in its sales pipeline.

The loss of $164.4 million for the quarter ended June 30 compares with a loss of $112.5 million for the same period a year ago. That's a loss of 68 cents per share for the period compared with a loss of 50 cents a share for the second quarter of 2021. According to Yahoo Finance, a consensus estimate of two analysts places earnings for the period at a loss of 53 cents per share for the second quarter.

Canoo shares closed at $3.94, up 24 cents, or 6%, in trading Monday on the Nasdaq. Shares have traded as low as $1.75 and as high as $13.35 over the past year.

Canoo released its earnings report after market close on Monday and hosted a conference call with analysts.

In July, Canoo said it had struck a deal with Walmart Stores Inc. to provide 4,500 electric delivery vans to the giant retailer with an option for up to 10,000 vehicles in total. The vehicles are expected to be produced at Canoo's manufacturing plant in Pryor, Okla., beginning by the end of 2022. The Associated Press reported in February that the Oklahoma facility could eventually employ 2,000 people. Canoo also said during the call its currently testing its vehicles with Walmart in the Dallas/Fort Worth area.

Canoo's Lifestyle Delivery Vehicles are engineered for high-frequency stop-and-go deliveries and speedy vehicle-to-door dropoff, the company has said.

Besides delivering online orders from groceries to general merchandise, Canoo said, the vehicles could potentially be used for Walmart GoLocal, the retailer's delivery-as-a-service business.

The Walmart deal with Canoo prohibits the startup from doing business with Amazon and gives Walmart an option to buy more than 20% of Canoo's stock.

The conditions appear in a document that Canoo filed with the Securities and Exchange Commission in July.

Canoo also said last month it will supply an electric vehicle to the U.S. Army for analysis and demonstration.

During the conference call, company executives said Canoo plans to produced 20,000 vehicles by then end of 2023 with that figure doubling by the end of 2024.

The company also explained its financing going forwards, including a $300 million prepaid adjusted agreement with Yorkville Advisors; a $200 million at the market program; and a $300 million universal shelf that allows Canoo to register a new issue of securities without having to sell the entire issue at once.

For the second half of the year, Canoo projected operating expenses -- excluding stock-based compensation and depreciation -- of $200 million to $245 million with capital expenditures of $100 million to $125 million.

Information for this article was contributed by Serenah McKay of the Arkansas Democrat-Gazette.


Print Headline: EV maker Canoo reports $164M loss

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