AYRO - Earnings call 3 2023

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Operator

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to Ayro Inc.

Third Quarter 2023 Financial Results and Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately 1 hour after the end of the call through February 21, 2023.

to IR, call firm. the like Delahoussaye to now Core of company's would turn over the Joey I Investor Relations go ahead, Please sir.

Joseph Delahoussaye

for Jason and call. [ Good participating you you, conference in Thank today's ]. thank morning,

me Officer; Dave Executive Joining Wittenschlaeger, Financial and Ayro's are Hollingsworth, leadership Tom from Chief Officer. Chief team

be forward-looking future results. operational performance including call, that statements this During making address management or will statements, Ayro's for expectations

that may from Forward-looking cause results other statements involve materially risks to these factors statements. and differ actual

these about described recently annual and information For press refer factors call, accompanies report with please XX-K release more the risk filed this it. Ayro's particularly risks, in to Form SEC reports Ayro's filed and the subsequent that in the cautionary most periodic on statements

EBITDA, that includes financial in non-GAAP useful be call Ayro can its conference performance. measure evaluating Today's adjusted believes a

in You or accordance GAAP. additional isolation prepared as a should this in not for results with consider information substitute

of directly its Ayro's reconciliation release, a www.ayro.com, located this in is net earnings measure financial to Investors the under the at table see on available GAAP For please which comparable its reconciliation financial most website press non-GAAP tab. loss, measure,

this of only of as time-sensitive after call. information any November or that information call that events circumstances as obligation Except Ayro is occur required this update XX, accurate XXXX. disclaims law, revise or contains today, by any content publicly The to to reflect

Wittenschlaeger. CEO, is turn It to call Tom to now my pleasure over the

Thomas Wittenschlaeger

good and everyone Thanks, Joey, the morning to on call.

call all we waiting say the and initial AYRO testing, Vanish Well, and we time happy The testing emissions. last product of safety the of beginning homologation manufacturing the in successfully were that I'm milestones of units. third of August, quarter's completed involving to final results. have elements earnings and on marked At sales our

of placed Gap] third LRIP, had certifications that [Audio already requisite potential in for handful in from quarter. will customers, with the upfitters received initial potential the or with and do AYRO of first so remainder us LRIP. production, to the full into confidence We've additional produced the transition all distributors, XXXX low-rate and partners Since Vanish allowed to then, units strategic of with LRIP continue units

of best working purpose that length to units Vanish produced the for more have the to to the the customers purchase highest that units we potential with or advantages over of to is what the initial strategic leverage have The sufficient We be low-speed one access XXXX beyond. early orders immerse placements appreciate believe see firmly and environment these of deem and potential and for Vanish time. Vanish competing vehicles electric to a in to way it is in

regional in and and and event our advantages on that believe able get test in advantages customers handles has here sense the technological vehicles class. of that up at interactions. a business Rock with following participated and drive in a Prospective our to executives Vanish unique We team in is October partners, and unparalleled Round unlike our held competing headquarters, drives those were flexibility payload ergonomic manner Vanish's

means units once pricing. are components the machinery Vanish fall than in the scale being prototype It under will different that is important produced be what what's produce enter Vanish that currently to equipment called This to used realize used production. full LRIP being and select we

used units the manner, minimal in minimal is cost-effective a used finished produce units not Generally in quantity less purpose the to production production costs. is methods to necessarily prototype those and equipment tooling speaking, or tooling with are upfront of as produce full expensive it than a in

dies defer production. what's the the industry, This and generally typical preparation order for up for phase in so full in and production. the in automotive This expected being also cost means tool quite manufacturing forth for used molds than that approach to components LRIP X-stage is cost in full our to more

XXXX. equipment, and is from production first the should decline to structures our unit the quarter full cost more and current transition prototype structure In structure This of for the underlying prototype into XXXX components of expected goods ramps. cost each and cost equipment, end to that to more the of sold cost means appropriate the components production and case, happen substantially as Vanish profitable from cost structure near a

to Gains breakeven produce along each and assuming quarter XXXX. supply progress in during manufacturing chain, with disruptions believe second production. the with vehicles volume and in no allow should from improvements use leverage of curve subsequent we as more road this production major tooling, we the learning we half our map profitable Under reach general us can of

very we to and end completing of Kitchens, towards first third LRIP, revenue in entering of of the delivery also food homologation the addition the first the another a upfitters, took the milestone corporate AYRO units recognition hospitality and quarter of Cruising reached one our few third Vanish with major from the quarter. of officially Vanish. In

standard addresses the discussed be in a bed market receive box many opens option configuration, arena and/or believe Vanish large unpowered hospitality for encapsulated we payload orders a targeted industry configuration more very some mile range for the to campus, the orders the of time, with the as up very ability is typically it of hospitality last or option in with I've a to base across the pickup flatbed or applications hot As very, a will that go powered industries. and wide industry, along boxes traditional install the quite Vanish, We hospitality environments. cold as a industry. Whether the our seen targeting

happy receiving traditional about a campuses to these want ways a are of that on help potential trying we're are structures inquiries the flexibility as buy options. acceptable than to to Vanish Vanish Vanish Notably, customers Thus, all of inquiries clients ability such of may At units. for for more Ayro, also find uses. apply doesn't of to lease payload we're units from fleet parties. coming myriad accommodate units, corporations with options corporate In just our lease we fleet a offering to purchase their addition

interest about the to corporate have road. We more down say to expect

front, property the On in awarded that days. be were patents, utility design and XX including X the we to last awarded intellectual continue

innovation IP And peers team's believe foresight creative be business. will the through LSEV ultimately create awards. as in portfolio our as growing continues Ayro's our to sustainable we over to patent exemplified and well value these Our a core space adding enterprise advantage

the the it, in our Vapor, the to want you development golf Valet vehicle, expect map, transport to offering, respect cart, our sleek we the With if people of or call road mover personal XXXX. resume the vehicle next product we called to call and

the of for quarter third Turning results financial the to XXXX.

moving Club mentioned I as new will Vanish. modular Chassis on platform first that Common our [Audio we previously, As designs recognized depleted. revenue the the all our revenue company's Gap] Furthermore, new Vanish, its inventory platform payloads from been be any has the Car forward based and subsequent from Current Core vehicle

the XXXX. more cash us The anticipated was the cash $XX.X which And burn to reach in current of the the balance second August, balance was of than the cash is third quarter prior consider quarter at in couple to breakeven, financing sufficient in the million. half our with third given for the be We consistent quarters. end of

opening remarks. concludes This my

to more detail. to the will call in like Now I'd results over who review Dave financial Hollingsworth, turn our

David Hollingsworth

and good everyone. morning, Tom, Thanks

XXXX was quarter September the of results. Here financial The quarter Revenue Vanish for XXXX, units. year-over-year. XX, summary of a XX% in decrease completed our quarter the ended sales initial is the third XXXX of represents $XX,XXX, recorded the third a of sales

the quarter largely third in third The XXXX to for the of total August in million to to expense expense manufacturing The increase was private as of total a quarter due primarily XXXX operating effort XXXX. full-time compared as approximately million $X.X from engineering the to $X.X expenses year-over-year transition well related in in as here XXXX were our operating approximately placement.

noncash the was August related $X.X million, loss September loss ago third quarter private the million of for approximately expense to -- for loss approximately stockholders million of $X.X in measure, year of quarter of approximately net loss versus the our million of to placement ending quarter a non-GAAP attributable million third a common XX, including Net approximately million a EBITDA, in $X.X XXXX $XX a approximately $XX.X quarter. the versus XXXX. was $X.X in Adjusted XXXX,

equivalents, XXXX. Total of restricted was cash XXXX, and $XX.X was XX, of the September securities as XXXX. was at December and approximately marketable September X end as million debt of at Cash million as cash XX, versus it XXXX, $XX.X XX,

XXXX, had of common the As September XX, shares outstanding. X,XXX,XXX company

to to like concludes the my over for comments. remarks. turn I'd any back remaining Tom prepared call That

Thomas Wittenschlaeger

application verticals completing begin We orders transition beginning Dave. and the expect production, X further by first next the look full LRIP you, to occur Thank plurality which forward to a into of We announcing we end of XXXX. to to expect weeks. within the

that to session. to call so like the turn Operator? question-and-answer I'd we the can over Now operator begin the

Operator

Brian Zacks from [Operator Instructions] Small-Cap comes The from first Lantier Research. question

Brian Lantier

wondering Vanish was out you any any particular of I a drive around that bit little particular just of more Tom, if the represented? sort customers, provide And where concentrations there that Were to test interest events. color were verticals -- could the those stood customers?

Thomas Wittenschlaeger

always massive come vehicle things. test Good interesting do just vehicle because we to quality, very, performance, those a morning, event, quality, our very all every difference payload, product And that Brian. customers is one understand drive there's component in

category, weeks replacement which back, last the into campuses, fell their were So large vehicles here category want fell at campuses. the test was for the largely who our people to vehicles into corporate who their distributor for were have corporate event, several corporate drive

folks a point technical sort interest then doing a we're of And directionality the number see a to who what and of general from of just view. from had of product

of of having that handle most were was payloads. folks, vehicle a real large could -- terms corporate interests In a their

kind fact it the And breaking, drives those are empty, all it good Obviously, campuses, that well it kind new really has of well, performs it things. well of drives nice. of loaded, they it those corporate things well, acceleration, for like drives excellent

they very nice vehicle for different from campuses, thing the corporate obviously, other the has, cart. way is a panache which itself, the the the converted The presents like and vehicle styling new golf

those we're least And enough, interestingly interest we interest saw in to those is bunch we to that -- corporate during event. see our before large and of us they the of out, year a ride first So also all is orders expect expressed the at the Brian. drive from entities dimensions,

Brian Lantier

little I the putting bit out you could into more, And a understand Great. product -- the distributors' flesh hands. Okay.

a forward. you sales more go plan we looks little I could good talk going what the and XXXX about as strategy into marketing But if bit a think and that's like?

Thomas Wittenschlaeger

Sure. we've approach a the of that before said X-pronged Well, marketplace. to have we look, kind

fleet they of can that every LSEV X real have carry who So first the and quality, of all, has our they're we years. market payload to a X a real have X as that utility or for channels not dealers are X dealers so need rolling and

So The the the of next X one channel. channels. important is is upfitter dealer X channel

So that's turn into platform it turn turn folks a it food a campus truck. who into turn it into a truck, and truck, take an our distribution into inside it tool truck,

they do important for the for So electrification seek that who heavy heavy, purposes these loads very, a that's and, are for purpose of of a emits having vehicle And conversions is common having very course, seek that quiet. folks torque. a nothing, is, they platform. of a vehicle is again, on vehicle what having Torque

So #X. that's prong

direct-to-consumer channel. the is #X Prong

that's dealer So would direct that Florida channel because sales Florida from And represents be location. our a to consumers. of from website, shipment of that state case, X. allows In on state our of the sales direct-to-consumer

we -- about you military kind great a X very we bases vehicles fleet And it again, channel. and governmental of about usage talk because ideal installations Channel these powerful airports in very of where, call talk strong, government domestic kind quiet they're many are large would or that's the whether about talk is installation. we or applications, overseas and or

our So channels. those are X

into goods the process in can very tools because we And makes we are want first to to production and production. that XXXX to on all don't you because dialed bring is than Hope about expensive cost more once each gives sense we'd we asked for the to to them question production in so most the like boost vehicle have take us many on units, want you, get partners way to We sales units down which Brian. our place a going in very, channel high-quality and LRIP of too them. units, production LRIP we go full leverage build profitability, to those that ramp of production

Brian Lantier

have the you I of guess, does for Valet this in products Vanish, the now or then first nature does. the XXXX? And of timeline when still and one those but I what see ask is the any Vapor we'll business, of have the It your is with map unfortunately, that? as to sort thoughts road just on look the

Thomas Wittenschlaeger

order. later vehicle, people the is -- or you map be Vanish. road most in the in -- course, And high-quality consider the the It's So it is will version exactly call then cart. which PTV, the so it's of could the golf mover that even XXXX, is Vapor excuse or will although me, personal Valet, later Valet could a not you it of our which is, XXXX, transport cart, our golf our assuredly be

So the Valet the a for is than long next frame more reason Valet to the modification story the short, will be nothing that simple Vanish.

that section, call think a it, the what a you take of on you sides footwell could and of Vanish, Brian, we insert section mount would we section, we So seats. footwell as U-frame both

adaptation that to having we've well, people around, campuses as shuttle modest which easy cost run properties, a relatively to in It's platform. people relatively have next premium mover corporate note our interest of Vanish, it and with very seen very, easy a corporate it's makes it people the also interesting launch -- tremendous VIPs executives. makes from low So that who premium people that

and the of Valet debut Valet is the will in show week third Orlando. PGA the at next So the January

you So we the there flesh. Valet the the there of be Vanish, only but year. will later the you not course, Vapor in will see of in will And imagery the design show what see will

Brian Lantier

preferred with the and conversion is warrants could just Okay. the The $X that on up price now? X Great. And Dave. shares if for question I follow

David Hollingsworth

was is. $X. It ratchet It down to

Brian Lantier

talk be utilization? level when in XX% XXXX, of see capacity about estimation All margin at right. just a we just realization? plant of be we Would capacity is an means in should you're we looking that at gross per before when terms of trying XX%? that to what And breakeven unit ballpark what of that sales the or get I'm at understanding breakeven it in

David Hollingsworth

vehicles about fully a capacity with day be X forecasting vehicles staffed, running We're with fully the now we to what believe right line. per of production X

think get the So answer I you now. close can to I right that's

expecting Of we're to that. But that's course, take what will in to ramp time up it XXXX. some

Thomas Wittenschlaeger

Brian, [indiscernible] factory capacity approximately.

Operator

from [ The ], Party next Private comes question David Investor.

Unknown Attendee

another breakeven had calculation. I regarding question that

you're as production So as day, demand units or far that on as in your is X what you're based seeing marketplace? saying a limitations far as the

Thomas Wittenschlaeger

the so the -- it's Well, in substantially is larger demand than we that. see marketplace

different ramping go you For from full as it, us, time you into master simultaneously near the supply have you every thing is of that parts possible. production, as to LRIP when chain have time, every the arriving all to and do it's those

for you up lap right? while piece waiting X with end and these Ford And a back, your of a in way from learning inventory building so so you're don't perspective, when smarter and in, curve a into and ease chain sitting end ramping you getting of with that smarter you to don't -- process used up a while supply ton units, did you're on the as more a come it

up level. to amount the in mastering attention very, higher rather just synchronicity the reason is to chain, ramping which an takes very that fashion -- you than just in detail to some controlled to So ramp a a like supply amazing of is and takes that jumping really

Unknown Attendee

Okay.

good. done? piggyback process platform they same same Valet to the all of of processes homologation because that that you're available So what's sure dialed Vapor the but all making to in you just already to or you've do the can sounds careful even That got demand, and been being greater kind up. you go have continue of have the so are and Will parts ramp the the in

Thomas Wittenschlaeger

of literally work, perspective, the is the the The be identical of my will the on and section Well, Valet from a It to a shortening the it. are that piggyback Valet parts Valet is situation. guess -- the clearly, Vanish, frame parts the insertion modification body to only on literally. is a parts that's some the

that be believe clearly that, a I will piggyback. So

Vapor, will absolutely parts. On see. to identical the also have the just we Vapor Again, be

because tires, same to everything. would find Valet, we're to not be a is, for going expect same So the certain to piggyback. to the the that I'm But say same wheel, motor the out what simply answer the Vapor. But I controller, and same big same for I'm it going

Unknown Attendee

Okay.

ask another could question? I So

Thomas Wittenschlaeger

[indiscernible]. Sure.

Unknown Attendee

So you're these this breakeven Vanish, just about is not -- talking that that and the correct? other units

Thomas Wittenschlaeger

That's right. Yes.

Unknown Attendee

So maybe second when should we revenue or see substantial like from Vanish? It the sounds income quarter?

David Hollingsworth

revenue, our give do and of consistent Tom do see we dial about. projections be talking chain like the ramp build expect we any expect but we to in a through end that but out on ramp we abilities was up It XXXX that don't throughout linear, won't manufacturing currently, XXXX. as supply completely Well, continue

Operator

question-and-answer [Operator Instructions] I any more to conference the There in would like concludes closing remarks. are our to for over the questions queue. This no turn session. Wittenschlaeger back Tom

Thomas Wittenschlaeger

thank of sharing look on interest on conference would I and quarterly XXXX all a likely Ayro. participating report when financial March progress XXXX. Well, you in results today's great year-end Thanks Have all. we to to call your our for like day. forward in We for call our next for of to

Operator

you has concluded. today's for conference The attending Thank now presentation.

disconnect. now may You

Ayro (AYRO) 21 Nov 232023 Q3 Earnings call transcript