MELBOURNE, Fla., Dec. 23, 2022 /PRNewswire/ — Eve Holding, Inc. (“Eve”) (NYSE: EVEX and EVEXW) reports its third quarter 2022 earnings results.
Financial highlights
Eve reported a net loss of $36.7 million in 3Q22 versus $3.8 million in 3Q21 driven by higher Research & Development (R&D) expenses and Selling, General & Administrative (SG&A) costs as well as non-cash charges related to warrant expenses of $17.4 million. Our R&D efforts are primarily driven by a Master Service Agreement (MSA) with Embraer – which intensified in the last year as the design of Eve’s eVTOL advances, having reached $14.3 million in 3Q2022, vs. $2.8 million during the same period of 2021.
Including employees contracted through its MSA with Embraer and Atech, Eve now has approximately 450 team members engaged in the development of its eVTOL and other elements of the UAM ecosystem versus approximately 120 in 3Q21. The MSA costs are included in Eve’s R&D and represent most of the R&D expenses. SG&A costs have also increased due to the growth in the number of direct employees at Eve, who perform critical corporate functions including program management, sales, finance, planning, etc.
During the third quarter of 2022, Eve’s operating activities consumed $17.0 million of cash, versus $2.4 million in 3Q21. Net cash provided by financing activities reached $15.0 million in 3Q22 driven by the investment from United Airlines, announced in September.
For the 9M22, Eve reported a net loss of $154.0 million, $144.0 million higher than the $10.0 million net loss in the 9M21. Setting aside non-recurring, non-cash expenses associated with the business combination with Zanite Acquisition Corp. of $104.8 million value of warrants – the higher net losses in the 9M22 compared to the same period of 2021 were driven by higher R&D activities necessary to progress the eVTOL design, including the MSA, and an increase in SG&A expenses. R&D expenses in the 9M22 reached $33.8 million or five times the amount invested in the program in the 9M21 of $6.6 million, while SG&A expenses increased from $3.3 million in the 9M21 to $23.9 million in the 9M22.
During the first nine months of 2022, Eve consumed $39.1 million of cash to fund its operating activities, versus $7.5 million in 9M22. Net cash provided by financing activities reached $352.7 million thus far in 2022, on a combination of the listing in the NYSE and the United Airlines Ventures (UAV) investment in Eve.
At the end of 3Q22, Eve had $329.9 million in total liquidity (cash, cash equivalents and financial investments) versus $330.8 million at the beginning of the quarter. Development expenses associated with Eve’s aircraft were mostly offset by the United (UAV) investment. Lastly, accounts payable – mostly MSA agreement with Embraer, increased by $5.6 million in the quarter, which had a positive impact on retained cash in Eve’s balance sheet.
As of 3Q22, Eve did not have any debt on its balance sheet. The proceeds from the business combination with Zanite Acquisition Corp., and strategic PIPE investors combined with potential advances from customers and future finance lines are important sources of capital to fund Eve’s development and certification of its eVTOL aircraft.
Eve has also announced today the support of Brazil’s National Development Bank (“BNDES”) to its eVTOL development efforts with two distinct credit lines, totaling $92.5 million. Both credit lines offer beneficial conditions with 12-year maturity and amortization grace period. The support from BNDES is an ideal fit for our project with long-term profile that matches Eve’s cash-flow needs and strengthens our balance sheet. Eve’s 3Q22 cash position of $329.9 million does not include this additional funding from BNDES.
As Eve continues to advance its eVTOL program, it expects portions of its non-binding order backlog to be converted into firm contracts. Those firm orders may result in significant cash advances and inflows to the company through down payments that may occur prior to final eVTOL delivery.
For additional information, please access the full 3Q22 Earnings release, available in the Investor Relations website at ir.eveairmobility.com
3Q2022 Webcast details
Management will discuss the results on a conference call today, December 23, 2022 at 9:00am (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 midnight, January 6, 2023, by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13734533.
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
[email protected]
https://ir.eveairmobility.com/
Media:
[email protected]
SOURCE Eve Holding, Inc.
