Eve Holding, Inc. Reports First Quarter 2023 Results
MELBOURNE, Fla., May 9, 2023 /PRNewswire/ -- Eve Holding, Inc. ("Eve") (NYSE: EVEX and EVEXW) reports its first quarter 2023 earnings results.
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
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.
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SOURCE Eve Holding, Inc.
Released May 9, 2023