ADOM - Earnings call transcript Q2 2018 | Envirotech Vehicles, Inc.

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Operator

Good day, ladies and gentlemen and thank you for your patience. Welcome to ADOMANI’s Q2 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder this conference may be recorded. to Relations, call Mr. like host to now Investor with would turn over the you I James Carbonara. may you Sir, begin.

James Carbonara

the Reynolds, XXA may Thank the you. Menerey, begin earnings statements on the XXXX with ADOMANI’s Chief of second are Section Good the day historical of Section would facts call reading and call. meaning welcome Financial Act Officer. call With made like and within by exception XXXX. statements Executive Officer; this be the Chief on to All forward-looking XXXX I quarter statement. XXE call Mike Jim to Harbor me Securities Safe considered Securities of of of Exchange of and the the Act

such that they make expectations in Actual the economic forward-looking and statements Although due expectations believes such results from other changes technical the have Company are no may can in that been assurance company's prove to reflected the to will considerably correct. factors. performance differ reasonable, operating and expectations

to projected date a could be forward-looking events assure you supplement included forms or differ well subsequent cause and the the in in actual We uncertainties events We Any results this cannot and risk of the reports are on as other to any update or will of and discussion in company statement statements as call. the obligation XX-K Commission. not made circumstances. time Exchange that from to this earnings that which any achieved. company's only call or reflect the do forward-looking time factors XX-Q to undertake those contained report from risks as results of files Securities For statements, forward-looking see such with

Officer to the Jim turn of call Executive will I Jim, please Now, proceed. ADOMANI. Chief Reynolds, over

Jim Reynolds

James, you, and welcome everybody. Thank

an to $X.X an to million. brings from first the our Backlog half for revenue close XX% of compared of were of quarter increase XXXX ending see the $X.X June $XXX,XXX. QX. first can the million, quarter was of sales release, and XXXX second the increase period earnings That’s XXX% you As to at XX, compared

We would $X.X million multiple will we least revenue of the grow revenues XXXX the year That second were more beyond, exponentially. end would XXX%. half grow and expect backlog the increase reasons. than of half to the by entire by balance at and that for we September able and mean that to We is rapidly will deliver be for optimistic This of November. XXXX look to in as the by total

portion Mitigation in the small First, fund has Volkswagen been emissions, billion only $X.X the will released. Environmental projects of reduce a Trust, to which diesel

date to And if flow, of too the firm funding. this signs but will not in a for positive terms ADOMANI so As of when. of is release question the see We begins orders.

more and at increasing are to and of opportunities continues backlog We more funding grow funding is the as month. finding state each The local levels. it

per nationally we believe Currently, there year school all-electric total buses designer The have for zero-emission Corporation’s second growth Blue and vehicles. XXX,XXX school fuel replaced of we C. today. technology this in those leading We is trajectory partner Bird market. annually. alternative operation are XX,XXX XX% to well that a positioned buses approximately significant are is school manufacturing and percent XX,XXX confident in U.S. XX,XXX over XXX,XXX are They of alternative to Blue Their Bird the buses. buses over of Type are are and bus. Type our we exclusive penetrate and manufacturer fuel school is independent the reason school are drivetrain D

network the are number opposed dealers’ Bird potential is Ride-and-Drive of courts Blue growth given substantial The success customers. for our is the third the Blue Bird reason of events issuing we we to feel with

events XX in Canada, in the participated of U.S. California. have held now XX been have and in in which XXXX We

through Fourth end have potential that customers than quotes June, more school total generated or and we market to result zero-emission add continued in which orders discipline in XXX monthly. the was U.S. Bird announced a buses that dealers beginning entering ADOMANI Blue electric to and of significantly QX we expand the June, will to accept As expect all electric market. truck our to total mid XXXX,

ADOMANI and powered opportunity created address recently in markets to that which meet issues ADOMANI. We has we for taking well. health demand. For vehicles place XX,XXX by many have both quarter in currently ADOMANI program will for to participate trucks globally trucks for per in. truck initiated California to qualify Class ranging overall help China internal reduce XX,XXX to of orders, reiterate from greenhouse example, believe lead last vehicles improves classes leader gases been agencies for by vehicle. California Order California Executive to with the the truck trucks of to warming, as combustion to and engines. X Air California XXX,XXX, tested truck lead the designed States. initiatives as help XXXX. This sold the United clear Resources Canadian is a as forum in results that leading vehicles ADOMANI the expect by pollution X and that air need to and fourth can the The measures momentum truck XX,XXX the internally year like branded a being HVIP XXX,XXX electric global anticipate by to are need in electric such taking is approval and quality Class in are XX,XXX Board market take the U.S. and There for that to an would begin will Class X electric market all aggressive the gaining all we clean and for China we is air mid an vehicles I there is certification X a now market X Class in the

vehicle seeing are addition, In countries established clean initiatives. especially we more more and and

are serve which products, new with convergence Some vehicle multibillion facilitate others working existing huge. we of That develop products. is to market of dollar electric to we

distributed available might starting just and is ADOMANI is performance be The to key and that funding performing. deliveries. measure the Importantly, with buy you begins indicators ADOMANI

As to the $X.X in half half first year, by were at least and million. grow of expected of is the to second excess million sales the $X.X mentioned XXX% an

look take a million to $X.X QX. at approximately QX Next our XX% compared to up backlog, in

partners exceeded in – and remainder I quotes June orders ADOMANI throughout the in are beginning XXXX. Deliveries position all-electric plan to coming recognizes from and maximize through can it CFO, in and to dealer point, shareholder zero-emission our deliveries, and market, today market. encouraged of this in to market are potential the unique XXX Additionally, we over continue buses. financials. all-electric overall the its We of size in which At are poised our Once converted growth school the feel the have value. quotes vehicle you revenue. our will will and our purchase walk result solution look orders to at business purchase zero-emission began And in June Menerey, execute the turn Mike summary,

Mike Menerey

Thanks. everyone. Good afternoon

six last QX $X.X offset months stock-based period. were were administrative accounts. million for $XXX,XXX there significantly six and the other $XXX,XXX the general non-cash of six million decrease to million. months the sales the the Consulting expense in $X.X expenses sales valued six XX, million and agreement for in XXXX, the and by that million were $XXX,XXX administrative in mentioned that the partially an in expenses the in compensation the terms no for for XXXX. the decrease and increases to in expenses. ended case $X.X month of each three a to $X.X entered was allowance of number $XXX,XXX, XXXX a million $XXX,XXX remaining non-cash was XXXX in QX year purchase cost – of $X.X of was expenses a first months $X.X of General to three both million. in were $X.X that increase of into during the which XXX,XXX other XXXX June compared to and across $X.X shares $X.X That That stock-based $XX,XXX $X,XXX,XXX million of for recording we June at to warrant quarter to settlement As in of administrative compensation, sales is lower a payment of it of versus pursuant And includes common months, sales number XXXX, expense million, the was which Year-to-date months related the of related periods. relates accounts quarter versus recorded in Jim general issuance stock, were quarter QX the XXXX. in XXXX in of valuation and and second primarily for was decrease

million. $X.X about were expenses consulting in decrease periods both So

XXXX and million in as stock-based debt compared loss quarters respectively. in the based of month compensation operating to $X.X $X.X talked research excluding decrease and million related ending end in in that the XXXX. million had XX equivalents for excluding June, At non-cash to for a activity million second ended months decreased by cash second for non-cash were related XXXX. were for to million in $X.X $XX,XXX as short-term related related due year, million million million The XX, The expenses from quarter $X.X at Similarly on expense of expenses the $X.X second at ready. quarter six XXXX $X.X in million XXXX. the XXXX, for last $X.X up million million the expenses Our XXXX million. is $X.X product two a point, loss by net significant primarily million non-cash concludes versus last by in $X.X June of compared Total six six for total last the for months expense $X.X and months net and the XXXX periods a and mentioned. to due Total XXXX of $XX,XXX Net decrease net expenses that development XXXX decrease $X.X in month capital to the made loss $X.XX decreased cash the six months ended of my to was to to totals expenses loss increased XXXX, expenses we primarily loss was $X.XX period loss at XX, of about those million June and $X of James, to non-cash quarter XXXX of financials. cash, the the $X.X of questions included of non-cash million million. $X.X advances for of the to million the of compared XX, stock if in and ended of want a million, net of loss million by six was $X.X included $X.X moment development $X.X GAAP decrease compensation June period I $X.X it June ago. million same million are certain end was expanded this Working development efforts increase. compared for you expenses loss and XX, to the for $X.X GAAP trucks the The million $X.X June of our which year remarks million decreased of timing debt of in That and of a quarter $XXX,XXX million year compared was Jim year, of the $X.X June XX second months XXXX. XXXX six was reduction consulting the $X.X and Net XXXX open those on the six to investments XXXX, a the months of June of we're loss the non-cash expense. XXXX and the million $X.X research three compared this the the to

Operator

Thank [Operator of first Our question the Instructions] comes Ascendiant. line Ed you, from of Woo sir.

Your line open. is

Ed Woo

just question sales and for Yeah, more My question cycle. thank you congratulations. of taking the – my a relates to

things is people going being and lot long those product events on What to seem really sales do getting get accelerate you guys just ride-and-drive placing to get cycle? the to to orders you many think quotes. a You [indiscernible] done like guys how of

Jim Reynolds

HVIP if California Resources California unknown from be Commission, from thanks. think Ohio, Well, from Volkswagen almost have we it's Board, it it be entities program, will. whether could dates is The It’s a We New an question a one. it Energy funding. York, Air it’s good could could different be you

from to So put that, of is we miss in The was date sources. to August round get there or there's million, million a program The together funding will going that number August in January-February. orders program, and that’s a August. typically which we electrical close They expected from and those It specific which have June September. probably multiple close they and through close now that for is in in of dates. the $XX school Commission, then will second to expect buses, $XX workshops in Energy the close

So of funding the lot a moving dates are parts. continually to moving. be that There's has encumbered. There's

we it, we really it’s dates handle moved So and pinpoint hasn't little can't on while we think forward know a change to we a except good only have been lost. It's been that the bit. funding subject

Ed Woo

leverage or accelerates? do of much outlook, figure? November. to have capacity think you going do you you backlog much be are business your guys guys delivering Great. to are this How Do by And then guys ability guys you you in you if capacity have really terms near say

Jim Reynolds

they Well added and things believe from new the their Bird Bird ninety days. forward. people going believe and XX because added up in they itself of great have subcontractors, they've our and product equipment accomplish capacity they in Blue of dealers roughly in our They’ve the – Blue will network last the tremendously ramped one

our So adequate that bump to more broaden can is in. start I the we horizons assembly think up capacity do left against facilities day capacity work new now XX% we and than find our will

Ed Woo

the question lot or is as last you bus there, competitors case And is has similar It [indiscernible] that competition. Great. see seems market? market electric my or truck out in if pretty on a just do as it the more a

Jim Reynolds

a the that if you than think into the made maybe look three players major of there I in less announcements has are giving market The only players are school it’s is three being really by that or at lot and because people, interest Well, major. market so another wide-open. bus

delivery can into into two that The lot to by a So get but the and it's are a get you I different providing think things. truck easier, product. difficult market market announcements

not existing sheet and clean design converted. building being electric off that is ends product being electric starts up that although it plan product we or up have rather ground gasoline Our a to be retrofit in units, than be take starting capability. has and We’ll diesel so an up our to

So people I a yet. big and sheet though there the a really much out there clean there's while doing it design. think competition, competition market one not only for no that of few electric has captured is a It's portion

Ed Woo

and that market and subsidies funding Is dependent bus as also market? grants the on

Jim Reynolds

for, and sometimes sometimes bus that and not as It’s a depended. the you has they driving the The school on like amount each days to put that market week limited stop do. working on in miles year, amount ROI year XX,XXX around schools summer the of XX,XXX the vehicle time, it’s don't per five, truck long of can they're market a but look for six all day they're limits

over on return there. weeks who lots XX more working on they're of The going funding lot there's So But investment certainly it. next plays buy or are favor. and product gasoline return looking three it for that that cost they receive at immediately and down the to savings same the to the diesel in the helping two greater. funding, We're buying on of to They some year. people vehicles out but cost those out years seeing the need put miles then the or a are a our as is will

Ed Woo

thank best you well, and of luck. Great,

Jim Reynolds

Thank you.

Mike Menerey

Aaron. Thanks,

Operator

next question from Wainwright. comes of Amit Thank H.C. you. [Operator Our Instructions] of line the Dayal

Your question please.

Amit Dayal

Jim. Hi, you. Thank Hi, Mike.

Jim Reynolds

Hi.

Mike Menerey

Hey, Amit.

Amit Dayal

about plans are your you doing market with the some you market players Just the And other your et this manufacturing own, on Are front? after on can this partnering following you cetera? opportunity. around own talk growing are on or up if you on truck this

Jim Reynolds

going approach feel the are presence product sales directly them this become will Other some regional there a the like a most market a do in to ones. have other on dealers we the up We to and in expertise we we may take to Sure, and we that. areas sell area. that to because sign for do localized areas we help dealer

contract As start will much concerned to that far like a as with. manufacturing be manufacturing it drivetrain is

– something our road then are to down plans it with manufacturing when own able Our to to like that. the with to and into afford move subcontractors start we're build

So today, country. are across we here have about people we lot be do up but thinking dealers we'll not it's think to where going to what day need the set forward help we're what two who I to and truck do only for contract the dealers of a to be concerned manufacturing business we're to going today, from the years going

Amit Dayal

I pushed for was timing quarter? end supposed been The the out that done of the previously backlog, existing before be little? a third deliveries has believe this to the Understood. on

Jim Reynolds

lot been end you’re component delays had quarter. up building have realize they build right. assumed to and of we Yeah, done could gear a and gear took the products of before to they manufacturers that to capabilities It to the quantity they should from more of have us Most had are up production the when It longer that they same the third them to product. of certain a told do.

of do the working themselves on as school can delays, time. on we we goals what's our And meeting keep best So buses school we with districts have delivery the some of and are to partners going the we're the with but them on. as informed

Amit Dayal

That’s all much. I guys. Understood. so have Thank you

Jim Reynolds

you. Thank

Mike Menerey

you. Thank

Operator

you. Thank

your queue, this As have Thank for participation ladies no and conference. there day. gentlemen wonderful concludes further are today's in and questions a you

Envirotech Vehicles (EVTV) 3 Aug 182018 Q2 Earnings call transcript