Dragonfly Energy Reports Q4 2023, Full-Year Financial Results – RVBusiness – Breaking RV Industry News
RENO, Nev., – Dragonfly Energy Holdings Corp., maker of Battle Born Batteries® and an industry leader in energy storage, today reported its financial and operational results for the fourth quarter and full year ended Dec. 31.
Hightlights included:
- Successful diversification of revenue underway, with launch in Q4 2023 of all-electric auxiliary power units (“APU”) to the trucking industry; Enables compliance with increasing anti-idling regulations, reduction in fuel costs, increased uptime and payloads, and the reduction of harmful emissions.
- In Q4 2023, achieved successful deposition of cathode electrodes, and double-sided dry deposition of both anode and cathode electrodes, at scale, using the Company’s patented dry electrode battery manufacturing process.
- Continued expansion of recreational vehicle market share, with OGV Luxury Coach, a division of Forest River Inc., to provide Battle Born lithium batteries as standard equipment on all OGV units.
Fourth Quarter 2023 Financial Highlights
- Net Sales were $10.4 million, compared to $20.2 million in Q4 2022
- Gross Profit was $2.0 million, compared to $4.0 million in Q4 2022
- Operating expenses were $(5.4) million, compared to $(32.9) million in Q4 2022
- Net Income of $3.0 million, compared to a Net Loss of $(32.5) million in Q4 2022
- Diluted Net Income per share was $0.05, compared to a Net Loss of $(0.76) per share in Q4 2022
- EBITDA was $7.4 million, compared to $(28.0) million in Q4 2022
- Adjusted EBITDA was $(2.1) million, compared to $(4.7) million in Q4 2022
Full Year 2023 Financial Highlights
- Net Sales of $64.4 million, compared to $86.3 million in 2022
- Gross Profit of $15.4 million, compared to $23.6 million in 2022
- Operating expenses of $(42.9) million, compared to $(58.0) million in 2022
- EBITDA for the full year 2023 was $3.4 million, compared to $(32.8) million in 2022
- Adjusted EBITDA for the full year 2023 was $(17.1) million, compared to $(7.9) million in 2022
Operational and Business Highlights
- Announced expanded market share with inclusion as standard equipment by recreational vehicle (“RV”) giant, Forest River (link )
- Announced the John Lennon Educational Tour Bus is now powered by Battle Born Batteries, moving the nonprofit mobile recording studio toward improved sustainability (link )
- Announced partnership with Ameresco to boost renewable energy and power system applications (link )
- Announced Coachmen RVs will include Battle Born Batteries as an optional upgrade on its Entourage Class C Motorhomes (link )
- Announced entrance into heavy-duty trucking market, with new Battle Born All-Electric APU, enabling reduced fuel costs, increased uptime and payload, and lower harmful emissions (link )
- Announced successful cathode electrode dry deposition, at scale, for American made lithium batteries (link )
Fourth Quarter and Full Year 2022 Financial and Operating Results
Fourth quarter 2023 Net Sales were $10.4 million, compared to $20.2 million in the fourth quarter of 2022. Full year 2023 Net Sales were $64.4 million, compared to $86.3 million in 2022. Direct-To-Consumer (“DTC”) revenue decreased by $15.6 million as a result of decreased customer demand, particularly in the RV market, due to rising interest rates and inflation
Fourth quarter 2023 Gross Profit was $2.0 million, compared to $4.0 million in the fourth quarter of 2022. Full year 2023 Gross Profit was $15.4 million, down from $23.6 million in 2023. The year-over-year decline in 2023 gross profit was primarily driven by lower unit volume sales, a change in revenue mix that included a larger percentage of lower margin OEM sales, as well as higher material costs.
Total Other Income in the fourth quarter of 2023 was $6.3 million, compared to a Total Other Expense of $(2.7) million in the prior year quarter. Other Income for fiscal 2023 was approximately $13.6 million, compared to an Other Expenses of $(6.3) million in 2022. The income contribution in 2023 was primarily due to a change in fair market value of a warrant liability in the amount of $29.6 million, partially offset by interest expense of $16.0 million.
The Company had Net Income of $3.0 million, or $0.05 per diluted share in the fourth quarter of 2023, compared to a Net Loss of $(32.5) million or $(0.76) per diluted share in the prior year quarter. For the full year 2023, the Company had a Net Loss of $(13.8) million, or $(0.26) per diluted share, compared to a Net Loss of $(40.0) million or $(1.04) per diluted share for the full year 2022. The full year results were driven by reduced demand in the RV market, partially offset by lower cost of goods sold, lower operating expenses and increased other income.
EBITDA in the fourth quarter of 2023 was $7.4 million, compared to a negative $(28.0) million in the fourth quarter of 2022. Full year 2023 EBITDA totaled $3.4 million, compared to a negative $(32.8) million in 2022.
In the fourth quarter of 2023, Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was a negative $(2.1) million, compared to a negative $(4.7) million for the fourth quarter of 2022.
For the full year 2023, Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of Dragonfly Energy’s warrants, and other one-time expenses, was a negative $(17.1) million, compared to negative $(7.9) million for the year ended December 31, 2022.
Q1 2024 Outlook
The Company believes that the RV market appears to have stabilized and is showing early signs of recovery. In addition, the Company’s entry into the heavy-duty trucking market, while still in its early stages, is gaining traction and has the potential to be a more meaningful revenue contributor in the second half of 2024.
