Originally called AMP Electric Vehicles, Workhorse is a company that makes electric delivery vans, telematics software, and drones. It is headquartered in Cincinnati, Ohio, U.S., and is an original equipment manufacturer. The company also makes various other technology products, including a telematics software application and a GPS.
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The Zacks Rank system rates companies on strength and finds Workhorse in the bottom quarter of the pack. The stock has a P/E of 10.7, a P/B of -1.2, and a market cap of just under $7 billion. This makes it the most expensive of the American manufacturers.
The company also boasts the largest fleet of trucks in North America, with a combined total of over 2,000 vehicles. Besides the obvious ones, it also builds high-performance battery electric and drone-integrated cars for the last-mile delivery industry.
Company’s business plans
During the company’s second-quarter earnings call, CEO Gregg Levesque discussed the company’s business plan in a matter of words. Workhorse had $201.6 million in cash at the end of the year. The company had a couple of notable contracts on the books at the time, including a supply agreement with GreenPower Motor Company to deliver 1,500 EV cabs to its fleet of electric trucks. It also has an exclusive three-year deal with Ryder System, Inc., a fleet management and maintenance company, to provide workhorse vehicle maintenance services for its Class 3 and 4 vehicles fleet. With its eyes on the future, the company will need more than its fair share of cash to achieve its goals. The best way to do this is with the assistance of a debt or equity lender. The company has a lot of other responsibilities as well, ranging from R&D to marketing and sales.
Although it has been in the electric truck business for some time now, it is only recently that the company has tapped into the trucking industry’s thirst for innovation. The company is looking to increase its stockpile of new products in the short term, including a revamped version of its bestselling step van.
Recall of C-1000 delivery vans
Workhorse Group Inc. announced a safety recall of 41 C-1000 delivery vans earlier this year. The company said that it had found several issues with the electric delivery vans, which need to be addressed. It will test the vehicles and modify them as needed. It expects to have all of its testing completed by the end of the year.
According to the National Highway Traffic Safety Administration, the C-1000 is not compliant with federal safety standards. It has also been found that enhancements need to be made to improve the van’s design.
Workhorse Group specializes in last-mile delivery vehicles. Its C-1000 is the largest of the two C-Series models. It features 1,000 cubic feet of cargo space. It’s meant to be the flagship vehicle for Workhorse.
After the initial announcement, Workhorse’s stock sank 10 percent. The firm reported a net loss of $156 million for the fourth quarter of 2021. It’s been losing money since the beginning of the year. It’s also had to refund customers for their C1000s. It also lost a multi-billion dollar contract with USPS. Its shares are down 80 percent since early February.
New chief financial officer
Earlier this week, Workhorse announced the appointment of a new chief financial officer. Robert Ginnan has more than twenty years of experience in the finance and leadership field. He previously served as the CEO and CFO of Family RV Group. He also has extensive experience in the retail industry, having led the company’s sale to RV Retailer LLC in February of this year.
As a result of his appointment, Greg Ackerson will return to the position of corporate controller and principal accounting officer. In addition, he will assist with the transition for Ginnan.
Another new executive team member is Kerry Roraff, now the chief human resources officer. Raff brings 15 years of progressive global HR leadership experience to the firm. She previously worked at Amatus Health, Apex Physics Partners, and Hasbro.
Another member of the new management is Josh Anderson, named vice president of product development. He has more than two decades of experience in the retail and technology industries. He was most recently the founder and president of Leiten.