MELBOURNE,
Fla., March 8, 2024 /PRNewswire/ --
Eve Holding, Inc. ("Eve") (NYSE:
EVEX and EVEXW) reports its fourth quarter and fiscal year 2023
earnings results.
Year in review
Eve Air Mobility accomplished
several milestones on our journey to shape the global Urban Air
Mobility (UAM) ecosystem in 2023. With suppliers of
flight-critical components selected for our eVTOL, we defined its
final architecture. The DNA of our aircraft remains unchanged with
a Lift + Cruise configuration – eight dedicated propellers for
vertical take-off and landing, with no change in its position
during flight and fixed wings to fly in cruise mode. Our eVTOL also
includes a dual electric-motor pusher for horizontal propulsion
redundancy with high performance and safety in mind. We believe our
design offers numerous advantages such as fewer and simpler parts
favoring reduced maintenance and operating costs, optimized
structures and systems, and was conceived for efficient thrust and
low sound emissions.
With suppliers selected and final
configuration defined, we initiated the production of our first
full-scale prototype – to be used in our test campaign
beginning in the latter part of 2024, when we will also
initiate the assembly of up to five additional prototypes for the
complete certification campaign.
In mid-2023 we announced our first
production facility in Brazil, located in the city of Taubaté – SP,
close to Embraer's engineering and support teams, and in the second
semester of last year, we initiated the Joint-Definition Phase
(JDP) of our development program. This is a crucial milestone in
our eVTOL project timeline. It is during this phase that our
technical team engages with their counterparts at our suppliers to
perform a comprehensive analysis to ensure all the system
interfaces are fully defined and the aircraft components will
operate flawlessly with each other. This phase is critical to align
and guarantee that the mechanical and software interfaces of the
multiple components and subsystems, from different suppliers, will
work seamlessly amongst each other and within the specifications of
our eVTOL design and performance characteristics.
Our team continues to test our eVTOL design
and refine computer models in wind tunnels. The latest tests
performed in Switzerland
with powered rotors for the first time helping to calibrate
the wing and rotors' interface models, to improve aerodynamics.
These improve performance of the cruise and transition phases of
the flight.
Eve leverages Embraer's proven aircraft
development practices, testing subsystems separately through
various methodologies to validate Proofs of Concept (POCs) and
advance towards full-scale prototype of our commercial vehicle for
the certification process. Our agile, model-based approach allows
us to validate components and airframe features independently in a
quick and efficient manner. The goal is to develop safe, reliable,
and affordable eVTOL solutions, which we believe will be achieved
through our design configuration.
We have initiated the certification process
of our eVTOL with Brazil's
aviation authority – National Civil Aviation Agency of
Brazil (ANAC), and we expect the
validation process for the Type Certification (TC) in Brazil to be followed by the FAA (U.S. Federal
Aviation Authority) targeting a dual certification and entry into
service in 2026. We are also in discussions with the European Union
Aviation Safety Agency (EASA) and other certification authorities.
We believe undivided attention from ANAC combined with our
expertise in certification and the simple design of our aircraft
puts Eve on a clear path to global acceptance.
The result of Eve's strengths is the
largest and most diversified backlog (by number of customers and
regions) in the industry today. In total, we have non-binding
LOIs (Letter of Intent) for 2,850 aircraft, from 29 different
customers spread over 13 countries and different markets. This,
combined with Service & Operations Solutions contracts offers
strong long-term revenue visibility and will help Eve to smooth
cash-flow consumption in the years to come as we start to convert
the existing LOIs into firm orders and collect pre-delivery
payments (PDP).
Concurrently, Eve continues to
develop a unique Urban Air Traffic Management (Urban
ATM) software to optimize and scale Urban Air Mobility operations
worldwide safely. The company has already secured 14
customers for the software.
With current total liquidity in excess of
$300 million, we feel comfortable
that our financial position is sufficient to fund our Research
& Development (R&D) requirements as well as operations
through 2025. We believe Eve has the right
partners, experience, and development team to support the
foundation for success in the design, certification, assembly and
support of eVTOLs and the UAM market in the years ahead.
Johann
Bordais
CEO
Financial highlights
Eve Air Mobility is an aerospace 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, Service & Operations
Solutions and an Urban Air Traffic Management (Urban ATM) system.
Eve is pre-revenue; we do not expect meaningful revenues, if any,
during the development phase of our aircraft, and we expect
financial results to be mostly related to costs associated with the
program's development during this period.
Fourth Quarter
Eve reported a net loss of $39.3 million in 4Q23 versus $20.1 million in 4Q22. Adjusting for
non-recurring selling, general and administrative (SG&A)
charges of $2.6 million incurred in
4Q22 – mostly related to new warrants issued during the period, net
loss then was $17.5 million. In 4Q23,
Eve recognized a $1.1 million
SG&A gain on the forfeiture of Restricted Stock Units (RSUs)
with the resignation of a former CEO, so recurring net loss in 4Q23
was $40.4 million. The increase
in recurring net losses in the quarter was mostly driven by higher
Research & Development (R&D) expenses, which are costs and
activities necessary to advance in the development of our suite of
products and solutions for UAM, including the Master Service
Agreement (MSA) with Embraer. R&D expenses were $33.6 million in 4Q23, versus $18.0 million in 4Q22. Our R&D costs are
primarily driven by the MSA with Embraer that performs several
developmental activities for Eve. These efforts continue to
intensify as the development of the eVTOL progresses, including the
purchase of parts, assembly of our first full-scale prototype, and
continued engineering, program development and testing
infrastructure.
When excluding the non-recurring expenses
mentioned above, SG&A remained relatively flat at $6.4 million in both 4Q22 to 4Q23, even though
the number of direct employees at Eve continues to grow.
Higher personnel compensation was offset by reductions in
outsourced services and Directors & Officers
insurance.
Eve's total cash consumption in 4Q23 was
$24.5 million, versus $20.8
million in 4Q22. R&D associated with Eve's aircraft
development and SG&A expenses were the main contributors to the
higher cash consumption during the quarter.
Full Year
Net loss in 2023 was $127.7 million, vs. $174.0
million the year before. R&D expenses reached
$105.6 million in 2023, versus
$51.9 million 2022, while recurring
SG&A expenses increased from $19.9
million in 2022 to $24.2
million in 2023. Like the quarterly numbers, these higher
accumulated costs and expenses are primarily driven by increased
developmental activities necessary to progress the eVTOL
design.
Including personnel contracted through the
MSA with Embraer and its subsidiaries, as of 4Q23 Eve employed
approximately 700 full-time collaborators, versus approximately 420
at the end of 2022.
In 2023, cash consumption was
$94.7 million and $59.9
million in 2022 – this compares with a range of $130 to $150
million we had expected to consume in the program and other
supporting activities throughout the year, thanks to our focus on
cost control, the deferral of certain supplier contracts payments,
and continued synergy gains with Embraer.
At the end of 2023, Eve's cash, cash
equivalents, financial investments, and related party loan
receivable totaled $241.1 million –
compared to $310.6 million at the end
2022, and was down just $15.2 million
in the quarter, reflecting the withdrawal of the second tranche of
the two credit lines from Brazil's
National Development Bank (BNDES) that had been approved in
December 2022.
As of December
2023, Eve had drawn ~US$26.1
million (R$126.2 million) of
the total available funds of ~US$100
million (R$490.0 million) from
BNDES. We believe both lines offer attractive terms and
conditions that are aligned with Eve's early-stage development,
with long-term maturity and amortization grace period, which we
expect will support Eve as it continues to advance its eVTOL
program.
Eve's 2023 total liquidity – including
undrawn portions of the BNDES credit lines is $316.3 million. We expect to continue
drawing from these facilities through the end of 2024, as we aim to
optimize our cash position and capital structure and continue the
development of our eVTOL program.
For additional information, please access
the full 4Q23 and FY2023 Earnings release, available at the
Investor Relations website
ir.eveairmobility.com
Webcast details
Management will discuss the results on a
conference call on March 8, 2024
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
1-877-704-4453 or 1-201-389-0920. A replay of the
call will be available until March 22,
2024, by dialing 1-844-512-2921 or 1-412-317-6671 and
entering passcode 13744291.
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 contained in this
release are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by words such as
"may," "will," "expect," "intend," "anticipate," "believe,"
"estimate," "plan," "project," "could," "should," "would,"
"continue," "seek," "target," "guidance," "outlook," "if current
trends continue," "optimistic," "forecast" and other similar words
or expressions. All statements, other than statements of historical
facts, are forward-looking statements, including, but not limited
to, statements about the company's plans, objectives, expectations,
outlooks, projections, intentions, estimates, and other statements
of future events or conditions, including with respect to all
companies or entities named within. These forward-looking
statements are based on the company's current objectives, beliefs
and expectations, and they are subject to significant risks and
uncertainties that may cause actual results and financial position
and timing of certain events to differ materially from the
information in the forward-looking statements. These risks and
uncertainties include, but are not limited to, those set forth
herein as well as in Part I, Item 1A. Risk Factors and Part II,
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations of the company's most recent Annual
Report on Form 10-K, Part I, Item 2. Management's Discussion and
Analysis of Financial Condition and Results of Operations and Part
II, Item 1A. Risk Factors of the company's most recent Quarterly
Report on Form 10-Q, and other risks and uncertainties listed from
time to time in the company's other filings with the Securities and
Exchange Commission. Additionally, there may be other factors of
which the company is not currently aware that may affect matters
discussed in the forward-looking statements and may also cause
actual results to differ materially from those discussed. The
company does not assume any obligation to publicly update or
supplement any forward-looking statement to reflect actual results,
changes in assumptions or changes in other factors affecting these
forward-looking statements. other than as required by law. Any
forward-looking statements speak only as of the date hereof or as
of the dates indicated in the statement.
Investor Relations
Lucio
Aldworth
Caio
Pinez
investors@eveairmobility.com
https://ir.eveairmobility.com/
Media:
media@eveairmobility.com
View original
content:https://www.prnewswire.com/news-releases/eve-holding-inc-reports-fourth-quarter-and-fy2023-results-302083443.html
SOURCE Eve Holding, Inc.