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id: 409, Created by Stan Vick, Scout
Enviva, Inc. (EVA) Missed Guidance Case
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- In May 2023, Enviva dramatically lowered its 2023 guidance downward and suspended dividend payments going forward.
- $EVA fell 67.2%, seriously damaging shareholders.
- Investors suspect Enviva and its seniors of misguiding about the Company's financial condition.
On May 3, 2023, Enviva, Inc. (EVA) dramatically lowered its 2023 guidance downward and suspended dividend payments going forward.
The Company now projected that Enviva’s 2023 EBITDA would be in the range of $200-250 million, net loss would be substantially higher, increasing to a range of $136-$186 million, and Enviva’s $0.905 per share quarterly dividend was eliminated.
On this news, $EVA fell 67.2%, seriously damaging shareholders.
Between November 3, 2022, and April 3, 2023, Enviva and its senior officers touted the Company's ability to achieve a yearly dividend payout of $3.62 per share, represented that the liquidity of the Company was "strong," and reiterated that the Company's adjusted EBITDA for 2023 was in the range of $305 million to $335 million.
Earlier, on October 12, 2022, $EVA lost over $0.5 billion of its capitalization after short-seller Blue Orca Capital's report alleging the Company failed to meet its sustainability promises, "troubling cash flows, dangerous leverage, and unsustainable dividend.”
Taking all representations into account, investors have reason to suspect Enviva and its seniors of misguiding about the financial condition of the Company including its EBITDA and net loss forecasts, liquidity position, capital allocations, operation costs, productivity, and the impact of these metrics on the Company’s ability to continue paying dividends in 2023.
Failure to Disclose,
Shock Event Date
04 May 2023
12 September 2023
Lead Plaintiff Deadline
11 November 2023
Hon. Deborah L. Boardman