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Last Mile Holdings Reports Second Quarter 2020 Results
CHARLESTON, S.C., and VANCOUVER, BC, Oct. 15, 2020 /CNW/ - Last Mile Holdings Ltd. ("MILE" or the "Company") (TSXV: MILE) (OTC: AZNVF), a leading micro-mobility company with the broadest product suite in the industry, reported financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 and Recent Operational Highlights
- February 2020: Changed the Company's name to Last Mile Holdings Ltd. and its ticker to "MILE."
- February 2020: Successfully closed the acquisition of Gotcha Mobility ("Gotcha"), a long established brand in the micro mobility space with contracts enabling the Company to deploy in numerous locations across the U.S.
- March 2020: Appointed Louis Lucido, founding partner of the US$148 billion investment management firm DoubleLine Capital, as Chair of the Company's Board of Directors.
- May 2020: Announced growth in operations with an over 200% increase in total monthly ride minutes from 416,600 minutes in January 2020 to 1,281,500 minutes ridden in May 2020.
- May 2020: Increased vehicles deployed by 17% from January 2020 to May 2020, denoting an outsized increase in usage of 208% during the same period.
- August 2020: Closed a non-brokered private placement to raise C$7.8 million at a price of C$0.075, with significant insider commitments, in support of the Company's nationwide expansion plans.
- September 2020: Began trading on the OTCQB market under the ticker symbol "AZNVF" expanding its exposure to US investors.
- September 2020: Announced the launch of an all-new fleet of e-bikes. The newly redesigned bikes use proprietary elements to offer a more comfortable ride, smoother electric motor and longer battery life.
Second Quarter 2020 Financial Results
In the second quarter of 2019, the Company was a private corporation, had not yet acquired Gotcha Mobility and operated three locations during the period. As a result, the Company's results for second quarter of 2020 are not substantially comparable to the prior-year results.
- Total revenue increased 964% to $1.1 million from $110,000 in the same year-ago period. The increase in revenue was due to increased ridership and a greater number of systems deployed as a result of the Company's successful growth and execution as well as its acquisition of Gotcha in January 2020.
- Cost of ridesharing services increased 507% to $732,000 from $121,000 in the same year-ago period. The total cost includes both fixed and variable fees paid, such as fees paid to in-market partners who managed the maintenance and deployment of the Company's deployed fleet.
- Salaries, wages and management fees increased 316% $1.4 million from $344,000 in the same year-ago period. The increase in salaries, wages, and management fees was primarily driven by the overall increase in employee count as a result of the Company's previously mentioned acquisition of Gotcha in January 2020.
- Selling, general and administrative expenses increased 148% to $431,000 from $173,000 in the same year-ago period. The SG&A expense consists of marketing costs incurred to promote the Company's ridesharing businesses as well as an overall increase as a result of the Gotcha acquisition and additional related overhead.
- Loss and comprhensive loss increased to $3.4 million from $962,000 in the same year-ago period. The increase in loss and comprehensive loss was the result of a nominally greater increase in overall expenses relative to the increase in revenues previously described.
- At quarter-end, the Company had $275,000 in cash, compared to $720,000 at December 31, 2019. Subsequent to the quarter end, the Company successfully conducted and completed a non-brokered private placement for C$7.8 million, including a commitment for C$1.7 million.
Management Commentary
"In the second quarter and past few months we've made positive, incremental progress in combining our operations with Gotcha and expanding our deployments further across the country," said Last Mile Holdings CEO Max Smith. "With the help of our university and municipal partners, we've been working to provide our riders with a safe alternative to public transportation in the roughly 30 active markets. The pandemic has put a spotlight on micro-mobility solutions that provide socially-distant transportation solutions, but we also recognize that the path forward remains largely uphill as back-to-school programs and other events remain on hold for many markets. In the meantime, our plan is to continue to deploy vehicles into our contracted locations, providing a steady growth trajectory for the foreseeable future. Longer term, we remain hopeful that the increased ridership trends we witnessed prior to and in the initial stages of the pandemic will resume during normal conditions."
Last Mile Holdings also announced today Kate Marley has resigned as Chief Financial Officer due to personal reasons effective today, October 15, 2020. Marley will remain on board with the Company for a transitional period as Last Mile begins a search for a CFO candidate. Marley's departure was not due to any disagreement with the Company nor any issue related to the Company's financial statements or accounting practices.
Smith continued: "We appreciate Kate's efforts and the impact she had during her tenure at Last Mile. With the ongoing pandemic affecting all of us in different ways, we fully support her decision to devote more time to her family during a challenging period. On behalf of our entire organization, we wish her well in her future pursuits."
For more information on Last Mile Holdings, visit lastmile-holdings.com.
About Last Mile Holdings
Last Mile Holdings (TSXV: MILE; OTC: AZNVF), formerly OjO Electric, is one of the largest micro-mobility companies in the U.S., offering the broadest product suite in the industry. Last Mile has 30 university and 50 municipal contracted shared mobility systems under the OjO and Gotcha brands. The acquisition of Gotcha in the first quarter of 2020 provides an expansive growth pipeline and a portfolio of products including electric bikes, scooters, and cruisers. For more information, visit lastmile-holdings.com.
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LinkedIn: Last Mile Holdings
About Gotcha Mobility
Gotcha, a subsidiary of Last Mile Holdings, is a shared electric mobility company dedicated to providing innovative products and technologies that get people out of single-occupancy cars and safely onto efficient, sustainable micro-transit products. The company operates electric bikes, scooters, and cruisers as transportation solutions tailored to cities and universities across the US. Gotcha empowers communities to lead happier, more productive lives through the transformative power of affordable, accessible micro-transit. For more information, visit ridegotcha.com.
Follow us on social:
Instagram: @RideGotcha
Facebook: @RideGotcha
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to: Last Mile Holdings and Gotcha's business and prospects and the Company's objectives, goals or future plans, including the planned deployment of its mobility units; and the business, operations, expected future costs and revenues for and management of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the ability of Company to meet its deployment targets, access to sufficient mobility units, usage of mobility units, meeting the requirements of the permits granted to Company including insurance, general business, economic and social uncertainties including the impact of COVID-19; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other discussed in this news release. Accordingly, the forward-looking statements discussed in this release, may not occur and could differ materially as a result of these known and unknown risk factors and uncertainties affecting the companies. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Reader Advisory
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility of the adequacy or accuracy of this release.
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SOURCE Last Mile Holdings Ltd.
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