- Pre-order1 book exceeds three thousand mark with 3,054 pre-orders received as of June 30, 2022, marking a 30% growth compared to 2,356 units as of December 31, 2021.
- Completed 21 Snowmobile deliveries during the second quarter of 2022, with the pioneering production run yielding a total of 28 snowmobiles sold to consumers and commercial fleet operators in Canada and the United States.
- Initial Orca™ production run initiated during the second quarter.
- Taiga recognized for its innovation within powersports and named overall North American winner in Fast Company's 2022 World Changing Ideas Awards.
MONTREAL, Aug. 15, 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 Second Quarter 2022 ending June 30, 2022.
"Today, Taiga's mission has never been clearer. During the second quarter, we delivered an additional 21 electric snowmobiles to consumers and commercial fleet operators in Canada and the United States. These units were the result of our first short production run, which serves as a springboard for ramping up future production runs. Witnessing these units leave our manufacturing facility and hearing stellar feedback from the proud new owners solidifies our belief in the technological advancements Taiga is bringing to the powersports industry that truly enable sustainable outdoor work and exploration." said Samuel Bruneau, CEO of Taiga.
"The adoption of our revolutionary Nomad snowmobiles into the fleet of Société des établissements de plein air du Québec, also known as Sépaq, the agency of the Government of Québec that manages parks and wildlife reserves, is a prime example of Taiga enabling fleet operators to achieve their sustainability ambitions. We delivered to multiple fleet operators, and we've already seen some of these customers add to their existing orders, which is a testament to our fully electric snowmobile."
"We also received international recognition for our electric powertrain by being named overall North American winner in Fast Company's 2022 World Changing Ideas Awards. This award serves as evidence of the progress we have made over the past six years toward changing how people connect with the natural world through our industry-leading electric snowmobiles and personal watercrafts."
After the initial snowmobile production run, Taiga transitioned to manufacturing its personal watercraft, the Orca, during the second quarter. Orca deliveries initiated on July 11, 2022.
Taiga remains focused on three key areas of the business, which include ramping up production and deliveries, building a culture of high performance, and increasing its brand awareness. The future of off-road is electric, and Taiga is committed to investing in and manufacturing the next generation of off-road vehicles to accelerate no-compromise access to the outdoors.
Second Quarter Financial Highlights (All amounts in Canadian dollars unless otherwise indicated)
- Revenue of $399,525 recorded during the second quarter of 2022. Taiga reported its initial revenue of $141,461 during the first quarter of 2022.
- Cash and cash equivalents of $52.4 million as at June 30, 2022, compared to $71.1 million as at March 31, 2022.
- Research & Development (R&D) expense (net of tax credits) increased to $1.6 million from $1.4 million compared to the second quarter of 2021.
- General & Administration (G&A) expense increased to $4.6 million from $2.3 million compared to the second quarter of 2021.
- Sales & Marketing (S&M) expense increased to $1.1 million from $0.8 million compared to the second quarter of 2021.
- Net loss before other expenses for the period was $11.1 million compared to $4.5 million in the second quarter of 2021.
Second Quarter Operational Updates
- Taiga sold 21 snowmobile units in the second quarter of 2022. Deliveries initiated on March 18, 2022, with 28 Nomad™ snowmobiles sold during the initial snowmobile production run.
- Taiga's production line shifted over to the Orca personal watercraft during the second quarter. Deliveries initiated on July 11, 2022.
- The Orca™ personal watercraft received the National Marine Manufacturers Association (NMMA) safety certification on May 3, 2022, and Transport Canada has processed its Declaration of Conformity for Small Vessels Compliance on May 11, 2022. Taiga is the first manufacturer of electric PWCs to obtain NMMA's certification.
- Launched the Gear Shop, an online store which offers Taiga branded seasonal apparel and gear to the public through our main webpage.
- Headcount at 231 full time employees at the end of the second quarter of 2022, with approximately half the work force employed in engineering.
This year, production continues to remain limited by various factors, such as, supply chain pressures, availability of raw materials and other components, manufacturing process optimization and volume related cost efficiencies. Taiga has invested in its supply chain in order to de-risk certain key components. As a result, it is now in a position to progressively ramp up its weekly production later in the third quarter of 2022 with the expectation of delivering 2,500-3,500 units for 2023. The current Orca production is expected to extend into the fourth quarter of 2022.
To support Taiga's growth and its various initiatives, management is committed to secure additional sources of funds. Taiga cannot be certain that additional funds would be available to it on favorable terms when required, or at all. See "Forward-Looking Statements" below and "Business Risks" sections of the accompanying second quarter 2022 MD&A.
Taiga management will hold a conference call today (August 15, 2022) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results.
Toll-Free Dial-In: +1 855-658-2585
International Dial-In: +1 514-375-0364
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 August 22, 2022.
Toll-free replay number: +1 800-319-6413
International replay number: +1 604-638-9010
Replay ID: 9259
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 www.taigamotors.com.
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, including, without limitation, organic growth and future acquisitions, expected timelines for achieving mass production capabilities, the ramp-up of its current facility and development of its second facility, the anticipated performance of the charging network, the ability to roll out additional off-road charging stations within the anticipated timeframe and the associated manufacturing benefits in respect thereof, including increased capacity 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.
We draw your attention to the "Key Factors Affecting Taiga's Performance" section of the Company's management's discussion and analysis for the three-month periods ended June 30, 2022, and 2021 and to note 2 of our interim condensed consolidated financial statements indicate the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The Company's ability to continue as a going concern for the next twelve months involves significant judgment and is dependent on, among other things, its ability to obtain necessary financing, either through a combination of public or private equity or debt financing or other sources. Management is currently seeking potential sources of financing. While the Company has been successful in securing financing in the past and believes it will be able to obtain sufficient funds in the future and ultimately achieve profitability and positive cash flows from operations, raising additional funds is dependent on a number of factors outside the Company's control, as such there is no assurance that it will be able to do so in the future.
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 month periods ended June 30, 2022, and 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.
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.
SOURCE Taiga Motors Corporation
For further information: Investor Relations: Shahroz Hussain, [email protected]