Archer Guided to a $200 Million Quarterly Loss. It Has About $1.6 Billion.
The air taxi maker's own guidance calls for losses as deep as $200 million a quarter. The balance sheet says how many of those quarters it can afford.
Overview
Archer Aviation (NYSE: ACHR) reported its second-quarter results on Monday, and the two numbers that matter most sit at opposite ends of the release. The air taxi maker expects an adjusted EBITDA loss of $170 million to $200 million for the third quarter. And it closed out June holding $1.56 billion in cash, cash equivalents, and short-term investments.
Set one number against the other and the arithmetic is simple: At the top of that guidance, Archer's money covers roughly two more years of losses. What has to happen inside them?
Details
After all, this is a company still almost entirely ahead of its revenue. Second-quarter sales were $5 million, mostly from operating Hawthorne Airport in Los Angeles, against a net loss of $263 million.
Source
Originally published at www.fool.com.