MELBOURNE, Fla., May 9, 2023
/PRNewswire/ -- Eve Holding, Inc.
("Eve") (NYSE: EVEX and EVEXW) reports its first 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. Eve is not yet producing
revenues; 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 $25.8
million in 1Q23 versus $10.0
million in 1Q22. The higher net losses were driven by higher
Research & Development (R&D) expenses, which are costs and
activities necessary to progress the eVTOL design, including the
Master Service Agreement (MSA) with Embraer, and an increase in
Selling, General & Administrative (SG&A) expenses. Higher
R&D and SG&A expenses during the quarter were partly offset
by financial investment income and FX gains of $4.3 million in the 1Q23 versus a gain of
$0.4 million in the 1Q22 as Eve
benefits from higher interest rates on its cash investments.
R&D expenses were $21.5
million in 1Q23, compared with $9.1
million in 1Q22. Our R&D efforts are primarily driven by
the MSA with Embraer that performs several development activities
for Eve. These efforts continue to intensify as the design of Eve's
eVTOL advances, including internal design, engineering, and program
development and testing infrastructure.
SG&A expenses increased from $1.3
million in the 1Q22 to $6.2
million in the 1Q23, mainly due to the growth in the number
of direct employees at Eve, who perform critical corporate and
administrative functions including, strategy, sales, legal, supply
chain and finance activities.
Including employees contracted through the MSA with Embraer and
its subsidiaries, Eve now has approximately 600 headcounts engaged
in the development of its eVTOL and other elements of the UAM
ecosystem, versus approximately 400 in 1Q22.
During the first quarter of 2023, Eve's total cash consumption
was $19.9 million, versus
$1.9 million in 1Q22. R&D
associated with Eve's aircraft development and SG&A expenses
mentioned above were the main contributors for the higher cash
consumption during the quarter. This was partly offset by an
increase in accounts payable, mostly related to the MSA agreement
with Embraer and higher accrued expenses – these grew by
$5.7 million in the quarter, totaling
$28.1 million at the end of 1Q23.
At the end of 1Q23, Eve's liquidity position was $294.6 million - including cash, cash
equivalents, financial investments, and related-party loan
receivables, versus $310.6 million at
the end of 4Q22. As of 1Q23, Eve did not have any debt on its
balance sheet. The proceeds from the business combination with
Zanite Acquisition Corp., and strategic PIPE investors raised in
2022, combined with potential advances from customers and current
and future finance lines are the main sources of capital to fund
Eve's development and certification of its eVTOL.
Eve's 1Q23 total liquidity – including still-undrawn BNDES
credit lines of $96.8 million (to be
disbursed throughout 2023 and 2024), was approximately $390 million.
Eve's program development milestones and financial estimates for
2023 remain unchanged. We expect to conclude the selection of main
equipment suppliers in the first half of 2023 and start the
assembly of our first full-scale eVTOL prototype during the second
half of 2023, followed by the test campaign in 2024. Eve's total
cash consumption expected for 2023 remains in a range of
$130 million to $150 million, and includes all expenses such as
R&D, SG&A and capital expenditures.
For additional information, please access the full 1Q23 Earnings
release, available in the Investor Relations website at
ir.eveairmobility.com
Webcast details
Management will discuss the results on
a conference call on May 9, 2023
at 8:00 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 1-800-954-0591 or
1-212-231-2936. A replay of the call will be available until
midnight, May 23, 2023, by dialing
1-844-512-2921 or 1-412-317-6671 and entering passcode
22026780.
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 in this
press release include "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as "estimate," "plan,"
"project," "forecast," "intend," "will," "expect," "anticipate,"
"believe," "seek," "target", "may", "intend", "predict", "should",
"would", "predict", "potential", "seem", "future", "outlook" or
other similar expressions (or negative versions of such words or
expressions) that predict or indicate future events or trends or
that are not statements of historical matters. All statements other
than statements of historical facts are forward-looking statements
and include, but are not limited to, statements regarding the
Company's expectations with respect to future performance and
anticipated financial impacts of the business combination. These
statements are based on various assumptions, whether or not
identified herein, and on the current expectations of the Company's
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and may differ
from assumptions, and such differences may be material. Many actual
events and circumstances are beyond the control of the Company.
These forward-looking statements are subject to a number of
risks and uncertainties, including: (i) changes in domestic and
foreign business, market, financial, political and legal
conditions; (ii) failure to realize the anticipated benefits of the
business combination with Zanite Acquisition Corp.; (iii) risks
relating to the uncertainty of the projected financial information
with respect to the Company; (iv) the outcome of any legal
proceedings that may be instituted against the Company related to
the completion of the business combination; (v) future global,
regional or local economic and market conditions, including the
growth and development of the urban air mobility market; (vi) the
development, effects and enforcement of laws and regulations; (vii)
the Company's ability to grow and manage future growth, maintain
relationships with customers and suppliers and retain its key
employees; (viii) the Company's ability to develop new products and
solutions, bring them to market in a timely manner, and make
enhancements to its platform; (ix) the Company's ability to
successfully develop, obtain certification for and commercialize
its aircraft, (x) the effects of competition on the Company's
future business; (xi) the outcome of any potential litigation,
government and regulatory proceedings, investigations and
inquiries; (xi) the impact of the global COVID-19 pandemic and
(xii) those factors discussed under the heading "Risk Factors" in
the Company's Registration Statement on Form S-1/A filed on
July 29, 2022, and subsequent filings
with the Securities and Exchange Commission (SEC). If any of these
risks materialize or our assumptions prove incorrect, actual
results could differ materially from the results implied by these
forward-looking statements. There may be additional risks that the
Company does not presently know or that the Company currently
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements. In
addition, forward-looking statements reflect the Company's
expectations, plans or forecasts of future events and views as of
the date of this press release. The Company anticipates that
subsequent events and developments will cause the Company's
assessments to change. However, while the Company may elect to
update these forward-looking statements at some point in the
future, the Company specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing the Company's assessments as of any date subsequent to
the date of this press release and undue reliance should not be
placed upon the forward-looking statements.
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.