- Manufacturing facility set for completion in the coming weeks,
focus going into 2025 is on building piloted, type-design aircraft
for use in testing and early commercial deployment
- Nearing completion of Phase 3 of the FAA’s type certification
process while continuing to rapidly advance Phase 4, the final
phase to secure type certification
- Established a consortium led by the Abu Dhabi Investment Office
(ADIO) to launch commercial air taxi services in the UAE as early
as Q4’25
- Signed partnership with Japan Airlines and Sumitomo
Corporation’s joint venture, Soracle, with a planned order of up to
$500M of Midnight aircraft, bringing Archer’s indicative order book
to $6B+*
Archer Aviation Inc. (“Archer” or the “Company”) (NYSE: ACHR)
today announced operating and financial results for the third
quarter ended September 30, 2024. The Company issued a shareholder
letter (LINK) discussing those results, as well as its fourth
quarter 2024 estimates.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20241107881989/en/
Recent photo of Archer’s manufacturing
facility in Covington, Georgia (Photo: Business Wire)
Commenting on third quarter 2024 results, Adam Goldstein,
Archer’s founder and CEO said:
“Over the past six years, we have established the foundation to
allow Archer to seamlessly transition from concept to
commercialization. As we enter the final stretch of bringing
Midnight to market, our strategy is paying off in the form of
strong certification progress, the eVTOL industry's most mature
scalable manufacturing facility in the U.S. and launch plans that
are solidifying in the U.S and abroad. We believe we are in the
strongest position in the industry to lead the transition to
commercialization."
Webcast & Conference Call Details
Archer will be conducting its earnings conference call at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time) today. You can access a
live webcast on our investor relations website at
investors.archer.com or the conference call by dialing 404-975-4839
(domestic) or +1 833-470-1428 (international) and entering the
access code 286379.
A replay of the webcast will be available on our investor
relations website. In addition, a telephonic replay of the
conference call will be accessible for one week following the call
by dialing 866-813-9403 (domestic) or +44 204-525-0658
(international), and entering the access code 205749.
Third Quarter Highlights
Building Production Aircraft
With its high-volume manufacturing facility set for completion
in the coming weeks, Archer’s focus going into 2025 is on building
piloted, type-design aircraft for use in testing and early
commercial deployment. Archer plans to load in manufacturing
equipment over the coming months so that production can begin at
this facility in early 2025 with the goal to ramp to a rate of two
aircraft per month by the end of the year. This facility was
completed on time and on budget—in just over 18 months at a cost of
~$65M.
Certification Momentum
Since the FAA finalized Midnight’s airworthiness criteria in
May, Archer is now nearing completion of Phase 3 of the FAA’s
4-phase type certification process while continuing to rapidly
advance through Phase 4, the final phase to secure type
certification.
Additionally, the FAA has now released the powered-lift Special
Federal Aviation Regulation (SFAR), putting the key piece of the
regulatory puzzle in place to allow Archer and the rest of the
industry to firm up plans for safely commercializing eVTOL in the
U.S. The SFAR incorporates feedback from across the industry and
aligns strongly with Archer’s commercial operations plans and
Midnight’s capabilities.
Commercial Launch Progress
United Arab Emirates. This quarter, Archer established a
consortium led by the Abu Dhabi Investment Office (ADIO) to launch
commercial air taxi services in the UAE as early as Q4 2025.
Through this consortium, Archer has made significant progress in
establishing the regulatory pathway, infrastructure and flight
operations plans necessary to enable market entry.
Japan. In September, Archer entered into an agreement with Japan
Airlines and Sumitomo Corporation’s joint venture, Soracle, that
includes a planned purchase of up to $500M of aircraft with the
goal of bringing air taxi services to some of the most congested
cities in Japan. This agreement includes pre-delivery payments
based on certain milestones in advance of aircraft delivery. Archer
and Soracle will work closely with the Japanese Civil Aviation
Bureau to obtain the necessary permissions and certifications. With
this planned purchase, Archer’s indicative order book is now
$6B+.*
Liquidity Position
Archer completed the quarter with over $500M of cash and cash
equivalents—a position as strong as it has been over the last 18
months. Furthermore, quarterly spend in Q3 2024 remained nearly
flat as compared to the prior quarter. Lastly, earlier this week
Archer announced that it is now seeking shareholder approval for up
to ~$400M of additional capital from Stellantis to help scale the
manufacturing of its Midnight aircraft.**
*Orders under the order book remain conditional, subject to the
execution of further definitive agreements with each customer and
the satisfaction of certain conditions. Order values represent the
Company’s estimate based on an indicative $5M per aircraft price.
This is only a prediction and actual results may differ materially
due to a variety of factors.
**The key terms of the contract manufacturing relationship with
Stellantis are based on a memorandum of understanding that
contemplates the parties to enter into future definitive agreements
related thereto.
Third Quarter 2024 Financial Results
Q3 2024 (GAAP)
Q3 20241 (Non-GAAP)
Total Operating Expenses
$
122.1M
$
96.8M
Net Loss
$
(115.3M)
NA
Adjusted EBITDA
NA
$
(93.5M)
Cash and Cash Equivalents
$
501.7M
NA
- A reconciliation of non-GAAP financial measures to the most
comparable GAAP measures is provided below in the section titled
“Reconciliation of Selected GAAP To Non-GAAP Results for Q3
2024.”
Fourth Quarter 2024 Financial Estimates
Archer’s financial estimates for fourth quarter of 2024 are as
follows:
- Non-GAAP total operating expenses of $95M to $110M
We have not reconciled our non-GAAP total operating expense
estimates because certain items that impact non-GAAP total
operating expense are uncertain or out of our control and cannot be
reasonably predicted. In particular, stock-based compensation
expense is impacted by the future fair market value of our common
stock and other factors, all of which are difficult to predict,
subject to frequent change, or not within our control. The actual
amount of these expenses during 2024 will have a significant impact
on our future GAAP financials. Accordingly, a reconciliation of
non-GAAP total operating expenses is not available without
unreasonable effort.
About Archer
Archer is a leader in the electrification of aviation. We are
designing and developing the key enabling technologies and aircraft
that are necessary to power the next great transportation
revolution. Our goal is for our proprietary technology to deliver
unprecedented connectivity to the people and places across the most
congested cities in the world.
To learn more, visit www.archer.com.
Source: Archer Text: ArcherIR
Forward-Looking Statements
This press release contains forward-looking statements regarding
Archer’s future business plans and expectations, including
statements regarding our expected financial results for the fourth
quarter of 2024, our business strategy and plans, aircraft
performance, the design and target specifications of our aircraft,
the pace at which we intend to design, develop, certify, conduct
test flights, manufacture and commercialize our planned eVTOL
aircraft, business opportunities, the production timeline, ramp-up
and production volume of our manufacturing facilities, indicative
orders for aircraft in agreements with third-parties, and our
ability to enter into definitive agreements with Stellantis
relating to the contract manufacturing relationship and the terms
of any such agreements. In addition, this press release refers to
signed agreements with third parties on certain key terms which are
conditioned on the future execution by the parties of additional
binding definitive agreements incorporating those terms, which
definitive agreements may not be completed or may contain different
terms. These forward-looking statements are only predictions and
may differ materially from actual results due to a variety of
factors. The risks and uncertainties that could cause actual
results to differ from the results predicted are more fully
detailed in our filings with the Securities and Exchange Commission
(SEC), including our most recent Annual Report on Form 10-K and
most recent Quarterly Report on Form 10-Q, which are or will be
available on our investor relations website at investors.archer.com
and on the SEC website at www.sec.gov. In addition, please note
that any forward-looking statements contained herein are based on
assumptions that we believe to be reasonable as of the date of this
press release. We undertake no obligation to update these
statements as a result of new information or future events.
Reconciliation of Selected GAAP To Non-GAAP Results for Q3
2024
Reconciliation of Total Operating Expenses (in millions;
unaudited): A reconciliation of total operating expenses to
non-GAAP total operating expenses for the three months ended
September 30, 2024 is set forth below.
Three Months Ended
September 30, 2024
Total operating expenses
$
122.1
Adjusted to exclude the following:
Stellantis warrant expense (1)
(2.0)
Stock-based compensation (2)
(21.4)
Technology and dispute resolution
agreements (3)
(1.7)
General and administrative warrant
expense
(0.2)
Non-GAAP total operating expenses
$
96.8
(1)
Amount includes non-cash warrant costs,
classified as research and development expenses, for the warrants
issued to Stellantis in connection with certain services they are
providing to the Company.
(2)
Amounts include stock-based compensation
for options and restricted stock units issued to both employees and
non-employees, including the grants issued to our founders in
connection with the closing of the business combination.
(3)
Amounts reflect charges related to the
technology and dispute resolution agreements (the “Boeing Wisk
Agreements”) reached on August 10, 2023, between us, Wisk Aero LLC
and the Boeing Company.
Reconciliation of Adjusted EBITDA (in millions; unaudited): A
reconciliation of net loss to Adjusted EBITDA for the three months
ended September 30, 2024 is set forth below.
Three Months Ended
September 30, 2024
Net loss
$
(115.3)
Adjusted to exclude the following:
Other (income) expense, net (1)
(1.4)
Interest income, net
(5.5)
Income tax expense
0.1
Depreciation and amortization expense
3.3
Stellantis warrant expense (2)
2.0
Stock-based compensation (3)
21.4
Technology and dispute resolution
agreements (4)
1.7
General and administrative warrant
expense
0.2
Adjusted EBITDA
$
(93.5)
(1)
Amount includes changes in fair value of
the public and private warrants, which are classified as warrant
liabilities, and gain on share issuance.
(2)
Amount includes non-cash warrant costs,
classified as research and development expenses, for the warrants
issued to Stellantis in connection with certain services they are
providing to the Company.
(3)
Amount includes stock-based compensation
for options and restricted stock units issued to both employees and
non-employees, including the grants issued to our founders in
connection with the closing of the business combination.
(4)
Amounts reflect charges relating to the
Boeing Wisk Agreements.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial results
prepared in accordance with GAAP, we use a number of non-GAAP
financial measures to help us in analyzing and assessing our
overall business performance, for making operating decisions and
for forecasting and planning future periods. We consider the use of
non-GAAP financial measures helpful in assessing our current
financial performance, ongoing operations and prospects for the
future as well as understanding financial and business trends
relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance
our understanding of certain aspects of our financial performance
and to provide incremental insight into the underlying factors and
trends affecting our performance, we do not consider these measures
to be a substitute for, or superior to, the information provided by
GAAP financial measures. Consistent with this approach, we believe
that disclosing non-GAAP financial measures to the readers of our
financial statements provides useful supplemental data that, while
not a substitute for GAAP financial measures, can offer insight in
the review of our financial and operational performance and enables
investors to more fully understand trends in our current and future
performance.
In assessing our business during the quarter ended September 30,
2024, we excluded items in the following general categories from
one or more of our non-GAAP financial measures, certain of which
are described below:
Stock-Based Compensation Expense:
We believe that providing non-GAAP measures excluding stock-based
compensation expense, in addition to the GAAP measures, allows for
better comparability of our financial results from period to
period. We prepare and maintain our budgets and forecasts for
future periods on a basis consistent with this non-GAAP financial
measure. Further, companies use a variety of types of equity awards
as well as a variety of methodologies, assumptions and estimates to
determine stock-based compensation expense. We believe that
excluding stock-based compensation expenses enhances our ability
and the ability of investors to understand the impact of non-cash
stock-based compensation on our operating results and to compare
our results against the results of other companies.
Warrant Expense and Gains or Losses from
Revaluation of Warrants: Expense from our common stock
warrants issued to Stellantis and vendors, which is recurring (but
non-cash) and gains or losses from change in fair value of public
and private warrants from revaluation will be reflected in our
financial results for the foreseeable future. We exclude warrant
expense and gains or losses from change in fair value for similar
reasons to our stock-based compensation expense.
Technology and Dispute Resolution
Agreements: Amounts reflect charges relating to the Boeing
Wisk Agreements.
Each of the non-GAAP financial measures presented in this
release should not be considered in isolation from, or as a
substitute for, a measure of financial performance prepared in
accordance with GAAP and are presented for supplemental
informational purposes only. Further, investors are cautioned that
there are inherent limitations associated with the use of each of
these non-GAAP financial measures as an analytical tool. In
particular, these non-GAAP financial measures have no standardized
meaning prescribed by GAAP and are not based on a comprehensive set
of accounting rules or principles and many of the adjustments to
the GAAP financial measures reflect the exclusion of items that are
recurring and may be reflected in our financial results for the
foreseeable future. In addition, the non-GAAP measures we use may
be different from non-GAAP measures used by other companies,
limiting their usefulness for comparison purposes. We compensate
for these limitations by providing specific information in the
reconciliation included in this release regarding the GAAP amounts
excluded from the non-GAAP financial measures. In addition, as
noted above, we evaluate the non-GAAP financial measures together
with the most directly comparable GAAP financial information.
Investors are encouraged to review the reconciliations of these
non-GAAP measures to their most directly comparable GAAP financial
measures included in this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20241107881989/en/
For Investors investors@archer.com
For Media The Brand Amp Archer@TheBrandAmp.com
Grafico Azioni Archer Aviation (NYSE:ACHR)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Archer Aviation (NYSE:ACHR)
Storico
Da Feb 2024 a Feb 2025
