Mullen Streamlines Business Operations To Focus On Near Term Commercial Opportunities, Actions Are Expected To Drive An Estimated $170M Reduction In The Co's Operating And Investing Cash Flow Expenses Over The Next 12 Months When Compared YoY

Author: Benzinga Newsdesk | April 08, 2024 08:43am

Cost saving initiatives aimed at reducing operating and investing cash flows by approximately $170 million over the next 12 months when compared to operating and investing cash flows reported for the 12 months ended Sept. 30, 2023.

"Momentum is increasing and we have transactions with fleets of varying sizes and vocations," said Brad Sigmon, Vice President of Randy Marion Automotive Fleet Operations. "Building on March transactions, our April goal is to move 100 units of Mullen Commercial EVs."

BREA, Calif., April 08, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) ("Mullen" or the "Company"), an emerging electric vehicle ("EV") manufacturer, announces today the Company has initiated significant cost reduction and consolidation measures, aligning budget to current conditions. Actions are expected to drive an estimated $170 million reduction in the Company's operating and investing cash flow expenses over the next 12 months when compared to operating and investing cash flows for the 12 months ended Sept. 30, 2023. Operating and investing cash flows were $179 million and $108 million, respectively, for the 12 months ended Sept. 30, 2023. Reductions in operating cash flows are estimated to be approximately $69 million and investment spending is estimated to contract by $101 million over the next 12 months when compared to the Company's spend over the last fiscal year.

Mullen is making these changes to refine business operations and better align focus on the commercial EV segment that has opportunity to drive near term revenue for the Company, including projected April sales of 100 commercial EVs by Randy Marion Automotive Group ("RMA").

"Momentum is increasing and we have transactions with fleets of varying sizes and vocations," said Brad Sigmon, Vice President of Randy Marion Automotive Fleet Operations. "Building on March transactions, our April goal is to move 100 units of Mullen Commercial EVs."

The overall changes are focused on long-term growth and are intended to reduce the Company's costs during a time when the consumer EV sector and overall market has proved challenging. These actions are intended to reduce the company's operating outlay when compared to the previous fiscal year.

The Company's planned changes include the following:

• Prioritizing near term revenue opportunities and significantly curtailing noncommercial programs
• Integration of Troy and Irvine engineering centers with focus on building efficiency through consolidation
• Focus on expanding national commercial dealer network

"Our refined business operational focus will improve our financial results and allow us to take advantage of current market opportunities while also driving long-term growth and shareholder value," said David Michery, CEO and chairman of Mullen Automotive.

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