Workhorse Group (WKHS) saw its loss widen to $7.92 million, or $0.24 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.38 million, or $0.20 a share. Revenue during the quarter surged 653.41 percent to $1.78 million from $0.24 million in the previous year period.
Operating loss for the quarter was $7.88 million, compared with an operating loss of $4.34 million in the previous year period.
Steve Burns, chief executive officer, commented, "As we continue to deliver our battery-electric medium-duty trucks to our customers, we are experiencing a wide adoption of this innovative technology that we believe will transform the industry. We will continue to ramp up production and execute delivery of customer orders on a fast pace and we are receiving great feedback and accolades for our product's efficiency and user experience."
Operating cash flow remains negative
Workhorse Group has spent $13.04 million cash to meet operating activities during the quarter as against cash outgo of $3.39 million in the last year period. Cash flow from investing activities was $0.07 million for the quarter as against cash outgo of $0.03 million in the last year period.
Cash flow from financing activities was $22.73 million for the quarter, up 2,260.62 percent or $21.77 million, when compared with the last year period.
Cash and cash equivalents stood at $10.24 million as on Mar. 31, 2017, up 96.30 percent or $5.02 million from $5.22 million on Mar. 31, 2016.
Working capital increases sharply
Workhorse Group has recorded an increase in the working capital over the last year. It stood at $15.19 million as at Mar. 31, 2017, up 706.65 percent or $13.31 million from $1.88 million on Mar. 31, 2016. Current ratio was at 6.58 as on Mar. 31, 2017, up from 1.44 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 381 days for the last year period. Days sales outstanding went up to 27 days for the quarter compared with 4 days for the same period last year.
Days inventory outstanding has increased to 53 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 393 for the same period last year.
Debt increases substantially
Workhorse Group has witnessed an increase in total debt over the last one year. It stood at $2.16 million as on Mar. 31, 2017, up 4,226.32 percent or $2.11 million from $0.05 million on Mar. 31, 2016. Long-term debt stood at $2.08 million as on Mar. 31, 2017. Total debt was 9 percent of total assets as on Mar. 31, 2017, compared with 0.51 percent on Mar. 31, 2016. Debt to equity ratio was at 0.11 as on Mar. 31, 2017, up from 0.01 as on Mar. 31, 2016.
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