Taiga shares 2023 results, pauses production

Taiga Motors Corporation shares that during Q42023, the company continued to build its sales channels and commenced distribution to international markets in South America and the U.A.E. The company also developed its Taiga Service Provider (TSP) network to 40 locations across Canada and the U.S. as of December 31, 2023.

Taiga reported $16.1 million from the sale of 592 vehicles during the full year of 2023 and $6.1 million from the sale of 242 vehicles during the fourth quarter ended December 31, 2023. Nomad snowmobile production started in November 2023 for the 2023/2024 winter season.

After making major investments in new product launches and to support the company’s rapid production ramp-up in 2022 and 2023, Taiga is now focused on driving cost efficiency throughout the business and deploying its omnichannel sales model to support sustainable growth. The company intends to further evolve its omnichannel model by expanding sales through dealers alongside distribution and direct-to-customer sales.

Because of the current economic context and an unusually mild winter that negatively impacted the snowmobile business, Taiga is taking several steps to adjust its operations to better align with seasonal production timing with dealer inventory levels. Taiga announced that it is temporarily pausing its vehicle production and temporarily reducing its workforce by approximately 70 people. Taiga is committed to further reducing its operating burn in 2024 and will continue to adjust the scale of its operations to the current market reality while maintaining the company’s focus on expanding sales.

Given Taiga’s transition period and current overall operational, market and financial circumstances, the company does not currently intend to provide any forward-looking guidance, production or sales outlook in respect of the fiscal year ending December 31, 2024, or for any subsequent period.

Fourth Quarter 2023 Operational Updates

• Produced 417 vehicles; 243 were Orca Performance watercraft and 174 were Nomad snowmobiles.
• Sold and delivered 242 vehicles, including 119 Orca PWC and 123 Nomad snowmobiles.
• Pre-order level stood at 2,442 on December 31, 2023, as the company focuses on maintaining a pre-order level and sales pipeline in line with its production plan.
• TSP network growth in 2023, with 30 TSPs onboarded as of December 31, 2023, covering 40 locations in North America.
• Initiated international PWC distribution in the U.A.E. and in South America as well as snowmobile deliveries across multiple fleet operators in Sweden.
• Completed production launch on optimized high-volume Orca Performance PWC and Nomad snowmobile product platforms achieving over 50 units per week production on both product lines.
• Launched the new Cloud Connected Mobile App.

Fourth Quarter 2023 Financial Highlights (All amounts in Canadian dollars unless indicated otherwise)

• Recorded revenue of $6.1 million during the fourth quarter of 2023, compared to $1.4 million in the fourth quarter of 2022.
• Recorded Cost of Sales of $15.6 million during the fourth quarter of 2023, compared to $17.1 million in the fourth quarter of 2022.
• Research & Development expense (net of tax credits) increased to $3.1 million in the fourth quarter of 2023 from $2.0 million in the fourth quarter of 2022.
• General & Administration expense increased to $6.2 million from $4.9 million compared to the fourth quarter of 2022.
• Sales & Marketing expense of $1.0 million remained relatively stable with no change compared to the fourth quarter of 2022.
• Net loss for the period decreased to $22.2 million compared to $23.8 million in the fourth quarter of 2022.

Full-Year 2023 Financial Highlights (All amounts in Canadian dollars unless indicated otherwise)

• Revenue of $16.1 million was recorded during 2023, compared to $3.2 million that was recorded in 2022.
• Cost of Sales of $43.0 million recorded during 2023, compared to $29.2 million reported in 2022.
• Research & Development expense (net of tax credits) increased to $15.4 million from $9.4 million compared 2022.
• General & Administration expense increased to $20.9 million from $19.8 million in 2022.
• Sales & Marketing expense increased to $5.1 million from $4.3 million in 2022.
• Net loss for 2023 increased to $72.5 million compared to $59.5 million in 2022.
• Additions to Property and Equipment decreased to $11.4 million compared to $12.1 million in 2022.
• Cash and cash equivalents of $5.3 million on December 31, 2023, compared to $22.8 million on December 31, 2022.
• Inventory increased to $33.2 million on December 31, 2023, compared to $20.8 million on December 31, 2022.