ADOM - Earnings call transcript Q1 2019 | Envirotech Vehicles, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to ADOMANI’s First Quarter 2019 Earnings Call. All lines have been place in a listen-only mode and the floor will be open for your questions and comments following the presentation. At this time, it is my pleasure to turn the floor over to Mr. James Carbonara, Investor Relations. Sir, the floor is yours.

James Carbonara

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

XX-K, assure to achieved. as that this ADOMANI Form this by events XX-Q Securities be and the with Any on reflect quarterly cannot actual date new the any the that projected reasonable of expectations, assurances by believes Although made these in are or required Exchange to will are to differ ADOMANI Form expectations filed and prove number reflected Commission. in update time-to-time ADOMANI’s no annual current in forward-looking does from are results only call ADOMANI information, results forward-looking statements changes other from disclosed events ADOMANI’s circumstances, any statements will you and not of forward-looking undertake and obligation subject Also a expectations uncertainties, could on included ADOMANI such report to make ADOMANI be expectations law. subsequent supplement earnings the current risks and risks, correct. considerably economic due or forward-looking assumptions performance, other or that statements to except call. statements to operating other basis in such of can technical factors uncertainties factors, of and cause as reports reports on that

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

James Reynolds

and over that, will questions Mike go and I remainder some to for pass like it additional up information outlook and QX of overview open our detail everybody. by to on XXXX there. and then and the we of After it James, begin XXXX, financials. and providing in operations from greater welcome sales answers our Thanks would for a our for

discussed completed both drag were call and in able missed buses because major we not weren’t last and disappointed failed both by that trains the schedules. revised deliveries I'm projection XXXX in we subcontractors of school to our As completed our projected our to as sub contractors. to meet earnings announce ship internal

our than welcome order ever As a you we very in increasing have on previous increase orders. have larger are which seen seen based backlog, rates

times, have training relocation lead with delays employee longer and these do manufacturing So happen.

continue We have they informed believe eager to our understand to them and time to a the than to people on delays are get we products our like are have and customers past better any happier would of understanding as happening operation we and path they involved deliveries. move they with is on the on that what we ordered. and are state a you I be while production issues not forward

our to for announced in excess report XXXX, as $XXX,XXX we X.X in. of quarter the to a could receive April we additional period of jump of brought were recent We in first year. XX.X April in currently let's which orders for we as million. compared and our XX.X backlog On new million now an shipments, new X.X backlog So XXXX XX, orders receive million. a accounting XXst, backlog result Sales as same and of December that the last $XXX,XXX, million was

analyst exceed be received any to orders well successful majority we we be XXXX are confident release, will will for terms in consensus time recognition. and of able our we revenue the and convert estimates mentioned in As if full-year quarterly earnings of increase, variability of meet revenue and in to sales delivery, backlog our results new positioned that revenue Nevertheless XXXX. our existing the our to

that presented profitable to XXXX. able the we execute are on believe, us, will to and are continued if by to We we effectively our be that plan opportunities business capitalize

We feel cash made significant We the bus line line adequate all also new to emission feel plan fund on discussed new with electric product orders, additional cargo coupled begun have combined drive standalone existing in us vehicles we this marketing our for to of diversify train we our backlog began recently and with opportunities and chassis and school and introducing sales trucks, year is potential vans profitability. have zero future. of us to sales previously six really generate that our to business we product mainly new while has up

have We owners electric counties, operators truck vans all mission and cities, III new Ride-and-Drive zero Class to and several showcasing been cargo the events. including fleet

events The we demonstrate We all commercial Arizona. to offerings. ADOMANI scheduling that all Ride-and-Drive part product scheduled customers. with and methods continue to electric more vans next see trucks emission line-up for of excellent these cost ownership well for week helps in have has greenhouse as California, a reduce and total provide Ride-and-Drives and emissions Southern are zero these have that held on both and lower our as week. Northern gas electric for more ADOMANI’s of we Based been focused in This on successes three

work and Districts, for as fits such offer with warehousing, operations. we trucks various the the they and maintenance California grounds good because believe vans to we We operational food services, and required departments continue a are keeping, had School range

allow utilize charge our school installed these our white be or in existing trucks fleet and to soon charge infrastructure Additional, all to to bus designed vehicles. electric of their are vans districts to

of for variety funding Including We of a these encouraged and are reasons. particularly accessibility the about magnitude. market products

and purchase of per Class Resources up van, an California or School of to to In vehicle. for additional new terms vehicles for a communities businesses the $XX,XXX all vehicles available of Class gas, IV the to propane harmful $XX,XXX are V a the the reduce With entitled Districts to hybrid are gases and the receive of is subsidies existence on incentive These for states that level that vehicle program, and Board's, Air even new purchase truck commercial other California up that to in with these disadvantaged. considered Greenhouse by reducing are emissions. acquiring All powered. operate be $XX,XXX on the or the diesel, par available subsidies while vehicle vehicles cost of

fossil fueling XXXX like for the addition that I operating typically unit vehicles cost for would electrical maintenance In our to alternatives. Class than remind for the lower everybody number are fuel sales and over quality that zero great supply VII market meet us needs. high emissions of XXX,XXX for Class to to believe Canada. the in vehicles vehicles U.S. represents We a total III opportunity this

in a estimate opportunity various profit retained support of and We a it veteran manufacturing of supporter represents Roger and gas of Roger is reduction. Houseman. margin February this of trucking the industries, us. In a we greenhouse year vertical, of also long services this higher XX year, time for

As Allison an of expert with Roger eclectic Bluebird , marketing us zero emission commercial Cummins new and consultant, such markets a Fleetwood, is sales trucks, and he help all veteran in our as efforts Transmissions, vans Corporation. Peterbilt companies will and and chassis.

margins he and During industry positions. gross management role an increasing played his of important in equity Bluebird, sales private in is various the time also working in

Is California he emission helping in the significant Roger's pleasure with ADOMANI market. zero expertise gained team products experience this with it closely roll in the to me a and global commercial path all the and integration and growth truck in start states. electric we During time, a for management. to significant leverage in Working acquisition, ADOMANI EV other and as out

(Ph) to and focus [Xen] provider. trucks We with sales agreement on ownership integrate also a vehicle Xen March comprehensive fleet for its Xen clients. cost electric and CEV a owners and and as announced ROI mutual in partner with total or and form that CEV vans. electric serve an Solutions, ADOMANI’s important for of works sales cargo commercial strategies will marketing service representative

in are with It's support They and electrified service grateful This to polluting excited vehicles, chassis them additional collaborate, Philippines to outcome met e-trikes. Government investors its all Transportation, which working When help across wheel vehicles about for an or ADOMANI million, This has Development with parties a EV of citizens. of see improve prospect all wheeled for been brings our GerWeiss We give on the understand electric in initial Xen new pioneer for our opportunity with health others, QX. of a in represents GerWeiss XX this to to-date to the programs X.X from has Both in products. the three the their after business wheels. Asian approximately of initial of exploring vehicle voucher right and of excited to the and the e-trikes seemed in equity represents citizens of to by trikes to a Philippines gears e-trickes parties is will purchase desire Philippines. ADOMANI we Philippines April, service bus current Development QX USA of order and with clean needs ways the vehicles three force also from to to which manufacturer replacing sales is expects are partnered Xen, state we focus all builders additional to solution the which increases a us three for order our promotion announced the XXXX Board added emissions zero-emission helps and are partner electric wheel Bank to that their GerWeiss Vehicle be and The for them country helping Philippines groundwork follow among value to find note targeting early reap reduce approximately proud in months vehicle very importantly more Department on support with used discussions vehicles respond across the including where revenue ADOMANI access market of energy visit its to ADOMANI a three order Electric a in the currently the in electric recent manufacturing medium and to economy dual by fleet country and deliver just U.S. the in electric with vehicles order initial realize benefits according small Philippines. trikes has In customers. needs. Bank X.XX of the Shifting will of GerWeiss both help and about and the we ADOMANI of zero-emission more mission Philippines. to powered fits the the operations. to but markets, helping all owners purchase the concentrated with the Xen that first currently all-electric works e-trikes them widely large Philippines. in the wheel the that GerWeiss study.

about We are to build we very excited this opportunity it. and intend international on

sign plus production XX As a provided with side now. from the GerWeiss note, drivers units that within XX in appeals are recently us first

to for exceed the to Turning outlook revenue are I our are delivered are reemphasize products XXXX. of in recognize estimates. that our conviction meet review confident, our our XX.X for XXXX full-year revenue. current basis deliveries full positioned backlog XXXX or in we production. The booked like million. and These these orders and we Once remain a is analysts we to would to customers, will

trucks, the vans Next, chassis. of form we have new product in and cargo

anticipate are contribute profit actively XXXX balance will And projections, from these cash of Michael. profitability. to fund opportunities through sheet able the segment point, as as revenues had second take and to we on in to deliveries we March effectively along cash may key expect for CFO, equivalents which believe e-trikes, with, XX. offering are who the overall will We being presented soon Mike if execute Based At Menerey, our the this capitalize like our fourth X.X We be year on to for or quarter vehicles I us insights. end this financials. the record With this our and business current before that we to believe, that will we cash million of to XXXX profitability we vehicles to sale of Quickly well. these as would sale data and the orders points to our quarter. of turning turn XXXX. are over we as us achieve plan and possibly walk revenue

Michael Menerey

went will for Thanks, a joining know points that Jim. release shortly not, in you one whether they earnings to out the or and I see had but some o'clock Good Thanks after gentlemen. don't I that. are cover day, us. chance ladies

approximately XXXX were delays as quarter that in a compared XXXX. of XXX,XXX XXX,XXX first a X.X already first primarily stock-based Jim million That some in expense compensation approximately a in year for X.X million. to non-cash million, the the year were of by sales and X.X three quarter XXXX, Cost in the As in XXX,XXX mentioned, relates the He progress of This XXX,XXX, administrative previously professional increases That million primarily of of of first to which sales in and first offset compares some in that items to were quarter compared $X.X first and the mentioned months quarter to fact expenses regard. some disclosed, we ago. related also this options. the that and the seeing decrease partially are decrease insurance this decrease in is was legal, forfeiture were quarter quarter. the General expenses in supplier of to discussed in XXXX. the

for compensation. ago. three expenses in alluded as few research stock-based year year, $X that of first certain XXXX for approximately said, for quarter in loss of the the compared to first approximately by non-cash of XXX,XXX marketing and of Net approximately for activity. the sales to first months expense. XXXX, which expenses the quarter year, a of that primarily the compensation net the XXXX, quarter net decrease operating the because again as the XX, of million, in by $X.X to XX,XXX and XXX,XXX expenditures expenses XXXX first $X.X million of first development first the loss of is ended and expenses to the increased The to quarter last a million the of included I Jim in Total compared The quarter and charges based quarter included primarily Research million approximately compared quarter is compensation of a XXXX by development as due moments to expense. increased made of stock activity in that first for XXX,XXX once decreased decrease the XXXX, last first was for were and to XXXX, loss stock quarter related based decreased non-cash March included to timing XX,XXX $X.X $X.X Consulting total million. compared the we of decreased that

compared As of XX, equivalents XXXX investments couple the debt at it we that for million Company and debt as January equivalents want offering XXXX James, of amount March March $XX million completed can million had XX, to short-term today. million XX, to, my and open million. at that recall was no cash questions. months on cash, million, December net a March XXXX in if and cash follow X.X after of were XX, up approximately for you of $XX.X XXXX. which cash, of $X.X as concludes remarks Working of capital investments at to you $X.X we six of a That compared and the short-term for will only

Operator

from Thank Amit Wainwright. first you. question take We [Operator our Dayal H.C. Instructions] will with

Amit Dayal

Thank Mike. you. and Jim Good afternoon

supply chain you issues indicating few your you any us like next and the now backlog these hope stock color that give this of it on issues sort filling were be were resolved. Can over So quarters. seem how out the what from you looks to comments to

James Reynolds

Let's start they with resolving. are

manufacturing Cummins. we the EDI primary if when do So but to lengths R&D were pumped about recall the of Cummins are lot of manufacturing EB the and relocation, they are other you they are side are where especially in and larger training was the out purchase manufacturing woods the the involved by that why with will along to facility orders past and facility closer. be getting with EDI, we having an mentioned so our doing. it struggled XXX% they not will is the started stepped this more the at primarily activities a moving to increase. they yet, subcontractor facility in - the I in some the Indiana We

in XX three orders that two and could month, has will vendors we orders five months orders where received level one that a the have go they stop helped, or a back than and our generate and We then months additional later the sufficient be not road. and and three two some could see business So forth. to they down orders we five at orders months confident manufacture

to EDI, seeing the are get orders, bill to implex they up that and end are Cummins of orders buy some they more step more a customer implex ship user that steady they able play and willing to Now product the larger of components the the be and to to of either or to Bluebird. supply need to then finished

Amit Dayal

Understood.

have to backlog? in mix most can look, how there, the second do should how quarter of this around Do XX So the out potentially How in down filled of get you this. quarter? think does of starting is going million you terms about, we sort

James Reynolds

But them You we the the try. we of confident and year, end quarter. give But the $XXX million know, in all confident quarter don't additional we we for or also before were that in fourth last million we believe guidance that. we internally, But didn't. fairly we are get Nice $XXX will that the of out year the out see

towards we bus, but possible and to wire the So quickly from get this are dealer Bluebird to the reluctant guarantee as up confident feel and everyone to as supplier, market that. till level that want customers and the the assembler, everybody's we working anything,

So believe year of majority out well. to this will will we out firmly we be that everything hopefully, orders additional and the able get as

Amit Dayal

you or seems with the our to to artist have It you of do within might but which orders? deadlines being in which within - these deliver customers supportive you any issues, be related needs lose timeline timetable these are a there these filled? sort need Is this

James Reynolds

cases, or financing, a purchases. not summer need vehicles pleats, lot basically the of really a most are buying since And to they is because [indiscernible] additions going by are district, rules lot the of orders Because XXX% additional more of vehicles, on are , paid lenient of area almost Energy is they that reason be of don't a that, they schools, Commission replacements, to we are, for when now are or school replacement, district free either them. these them the to the most local that them in No fleet. are

to changes there some deliver, we first the So the for are year, pressure while September met had be customer. that that. there is by And on drive on to of they penalties. delivered, the got delivered to There past that and the for were delivering in eight which delivered and two that cases last grant, buses, south the Bluebird to - was in time seven build we or the get delivery every not months coast Bluebird those

there specific front drive get the penalties, when and those in are buses, refocus we those specific for line. So trains

Amit Dayal

it. Got

from one that, little Volkswagens funds out settlement sort through last one all story that the How ho of us initially efforts as reliant me, Just being of a moving the other to if will bit? walk well. just on could positioned for you given internationally your play is little a bit beyond

James Reynolds

vehicles, with ones those were out - school have important so over investment, lot of capacity, towards are and the vehicles vans. are are a period that the not there, Outside California their also able states that on. the method vehicles working will be for us in products and funds very a a building be of bit same help a emissions. be though others whether a Volkswagens Philippines have even Volkswagen will they And buses, at end time, the spent good the to able time. will take those of can the trucks on have be peddle buy bank they more we more people to from concentrating the they provide or with be states country, go higher will portion electric to they to, vehicles. to product Other that them of will Now, a the And million user vehicles, only will that the for example, so that for a money with able new reduction $XXX they A there money funds. the for they transport initiatives so are afford return creatively will a realize because in we

to three Fund It's over and don't Volkswagen important, two money is years other comes also Volkswagen. to money states the do the So today, outside is But will are as us all important looking state be opportunities where they us out. the important. to important we with anything different at next or the have

they to and issue. it's citizen. have So and - services their emissions goal not the help the help desire reduce an But

that important. benefit good funding for is So a in will country, us certainly I country, outside think the Volkswagen be the other

Amit Dayal

Thank Thank you That all will follow-up you. offline. much, so have. Understood. I is I

James Reynolds

Thank you for the questions.

Operator

our take with will Woo next question Capital. We Ed from Ascendiant

Edward Woo

question. is My questions the Thank How you Bluebird. changed for taking that your have on relationship my business? affected with

James Reynolds

products it made has wake morning sell, think of and us the besides other Well, can we in up what the drivetrain.

trucks, website you time So or vehicles, seen on products be be new that on as may will introducing to soon goes them our our our other vans, on. website, have

As past somebody when the are increase street, discussed where we pretty drivetrain street. feel have as early product discussed We and have on our has able But on those our our to comfortable XXXX. going product they in else's And been to not skinny. you been our would had goal on, on we this the know, below in still forward. we were the product margins

front bus vans that product to drivetrain, is a out build their chassis bumper bus. deliver Bluebird with So with bumper. an product and the a in it's like goes and just a there, product trucks and Cummins and that is we it's Alison ADOMANI engines it's rear goes a Transmission, a that drivetrain from it's or our We bus Bluebird

helps with tune us in us helps margins, with production, with So more gets that us that.

name front. in started will other they the important were So as business and we we with electric on became the vehicle so saw eventually they first less when out, the extremely will out we be our opportunities, phase drivetrains and

Edward Woo

good. Sounds

is away now? there of like correct looks school buses, is it focus kind from that shifting So

James Reynolds

school we have schools if focusing are because they not. buses. have not they buses, to because XXX school across districts may maintain white the this had districts, conversation XXX from Right territory. school fleet, probably or they But have have away their may before, now, yellow those of We XXX

what dealing So can we districts school will the with building additional whether and do whether are we at market, it's bus still school in we looking drivetrains be chassis. again, builds, it's

that, want one build truck, sure, We want I are XXX% but we I we not we classified XXX a mile. internally. that I we limited for projects. or think the We one for yesterday XXX projects to that of know don't and have build it spend just all said don’t money goes time. but We goes XXX get talent just one We miles, to but our a want that build today resources build miles, that go the truck want classified it's brought to us to XXX them want well to off, can not a we had

but will chance not we the on busy to keep long good are on back in the do up school we with we enough we So giving is are product, there for of the by buses, our be enough end plate not, year - a have us if market to time. a that

Edward Woo

other different companies? getting we lot do And How a just last my there on of question sounds trucks. That competition out are guess electric working those on good. yourself a position against companies I is

James Reynolds

is consider. of there couple a things to think I Well,

companies been years time. five first they lot hoped the them business you out but truck, that as been The haven't or of XX the has in been or van successful themselves. period a be I'm shadowed of of last is for of over It it be step a van, know year, years, and business a lot two there they have could one a had for are as for sure could

doesn’t the build a pay abilities our with goal put do great market is doesn’t program any Having at and been the our a good. do and to that the a to that product and to Having willing any always knowledge product price market wants product, the that. and our doesn’t knows Our has the market the accomplish market together nobody staff sales look good. at that really want

to they of and price people acceptable them try what we that basis knowledge focus our or So that experienced keep the point accomplishing at [indiscernible] for and out on want goal. is a there,

So stronger upside the mentioned VII that a some small huge but that the is we we that have earlier a something overcome in the look helps the and people is company having to marketplace, innovating. competition and III thing, help huge percentage you that huge probably having market market vehicles we is they it two keep XXX,XXX they Class for is competition and XXXX market, that of there out that GM them electric for Class product product at it's so be develop more choice. downside. where and as aggressive in ways. the competition that is helps to sold successful And innovative, a be look that One competition a makes is to that keep I the where is would us will in they see would, town, product them us same of but heavy with will look The and be is more with and happy think, whether way have makes the to only car to way and the for them in more

Edward Woo

and Great. for answering question good Well thank my luck. you

James Reynolds

Very welcome.

Michael Menerey

Thanks Ed.

Operator

ladies appreciate participation. And We today's gentlemen, call. conclude does your and conference this

time and great a day. at You this lines may disconnect have your

Envirotech Vehicles (EVTV) 5 May 192019 Q1 Earnings call transcript