GP - Earnings call transcript Q1 2022 | GreenPower Motor Company Inc.

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Operator

Good day and welcome to the GreenPower Motor Company First Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Michael Sieffert. Please go ahead.

Michael Sieffert

you. Thank Sieffert, Officer Michael Company. GreenPower Chief the is of Financial Motor This XXth, would to for financial June everyone to the call ended I welcome GreenPower's our like to discuss period XXXX. results Chief Executive here Brendan and Shetterly. VP our with Ryne I'm Sales Marketing, Officer, Riley; and today of Atkinson; our Fraser President, our

Canadian may and under applicable results prospects Litigation statements differ from make of those forward-looking discussed various securities constitute statements result important Act those EDGAR. interim the purposes a quarterly MD&A we During forward-looking statements and these filed materially in our laws. may Actual today's our may including factors call, Securities future on which about Safe results indicated SEDAR the Harbor as of of XXXX provision on the or by Reform and comments expectations, Private plans, and for

statements on to during call SEDAR and these as on date we We financial Fraser over cause addition to of measures. any website in Atkinson. used be MD&A GreenPower's call CEO, on GreenPower's non-IFRS www.greenpowermotor.com. found anticipate In pass whether our disclaims our update over located the at otherwise. forward-looking pass -- the Reconciliation measures to EDGAR obligation certain or now course statements new events also revise result to is which to of call, of refer I'll made. the today's the and apologies I subsequent relate to may non-IFRS can now also forward-looking events, be developments and may or any intention future change. they will to are information, or a these the GreenPower company on

Fraser Atkinson

our all for joining and to Michael earnings thanks you, Thank all call.

Shetterly quarter, will join financial Michael will operations, remarks, Brendan us Ryne and cover the the opening speak the for about my Q&A. our will for highlights Following

last on and Our NASDAQ place. our firmly plan track in remains since fall IPO

and this substantial economy summer As in came back online. activity pipeline a sales reopened as various we had incentive anticipated, the increase we programs experienced

and year this search momentum topic obtaining buses the our continue urgency by there continues XXXX. day expect calendar into funding is were of objective that with and the to this of comes of change flow climate mandates buses. We numerous of year, the grow. to goals greater of growing to it for sense adoption this achieve Earlier of announcements when positive to transit support particular cash zero-emission in heavy-duty and wave school with around and the buses medium The

our school replaced of buses, or these this of get zero-emission will of With XX% production infrastructure bill, support are into the We sold XX,XXX will goals. each buses started buses To the now. to in the there be passage put XXX,XXX to order context, And fall funding pass monthly I'll more fall. recent target lofty back the our Sieffert, the momentarily. cover need B.E.A.S.T. CFO these first GreenPower's have orders to school the the in on importantly, scheduled next first results. to meet to We'll demand more inventory customer financial and pursuant will this we are delivery with to for available be the school that call the month. the of starting school operations increased X,XXX year bus to XXX,XXX to But circle back of last for details Michael quarterly

Michael Sieffert

Fraser. you, Thank

lease to financing; cost XX% and one profit increased Revenue the EV EV from provided GreenPower of $XXX,XXX or delivery year a million, XXth, provided XXXX, the airline's ended charger Air, completed and inventory between For $X.X Chassis, which five EV of with GreenPower for to We uses the Learning which which River; recorded stations. GreenPower will EV classroom. to Disability was generated to Forest Harbor and EV EVXXX vehicle mobile Stars of to shuttle comprised Green Society the generating Star prior used five million of as XX Star Stars quarter for Greater one be in of $X.X XX the locations of the Cab revenues for Vancouver financing; Commuter, a of lease June EV and finished various the gross of revenues first and Star of approximately Stars quarter Star charging $X.X compared and million and quarter XX%. Transit seven Plus, and EV

June of school of XX, we inventory that million EV invest which vehicles EV deliver school approximately summer. comprised our this D to XX.X various B.E.A.S.T. as And and our primarily continue Stars models Stars to in later in is buses, Type of production under we We B.E.A.S.T. production buses. had of of expect

now have continued various and have We at approximately production. in end stages quarter since XXX vehicles inventory of the to invest

have total million and with liquidity total $XX.X of the of less on than production million in sheet assets $XX.X strong million. We undrawn $X quarter ample cash, including million $X.X in as continue liabilities current capital end, a with line of working credit, balance to of of rate an

We manage we costs, up business. scale continue to while our

three million We increased financial costs cash quarter levels. North for for the In key million approximately in invest American continue to course will in increase of staffing anticipate -- highlights $X.XX the quarter compared the were cash infrastructure quarter. the to financial summary, the Our the we our during costs as over there's $X.XX year and the prior quarter.

our gross continued we profit maintain margin to at XX% or First, better.

and working year. continue three, million the Second, during it in $X.X increased three to over our and to I'll to held for ample capital quarter times at $X operational to the details. now steady last by growth. hand XX% while inventory Brendan liquidity we've increased over And some invest quarter million over compared costs our cash by have

Brendan Riley

President GreenPower Thank name is My Company. Brendan again Riley, of Michael. you Motor

at what the as challenge stepped and I'm and they've been to build about stages have are We our production up which have has can't tremendous of completed I team or vehicles GreenPower and XXX inventory. in expand inventory, over in massive accomplished amount recently extremely done. production a our But undertaking. capabilities proud We say enough we a Company, now Motor has various

expect Our trajectory month XX now or year. the to right and an current to over next per month, that vehicles continue we over per units XXX XXX production upward capabilities are units

chain with robust remains no interruptions. material supply Our

we an customers reduce me. each Especially driving While to the cost been those been cost being That out our is greater equation, we reflecting on we cost. in the bringing goal higher we when to basis. aggressively increase down scale, and our Pardon of have gains. offset the economies some hit of the costs, have of unit prices somewhat reduced hit cost by unfortunately that successful shipping which said, expect to absolute

continue compete aggressively adoption the foreseeable other on continue drive and future, we non-EVs, making with produce it mandate to to price time and are that front. progress on the sold standalone incentives and basis that markets EVs to over EV over end vehicles our that a comes when completely While an in can objective will remains being

River. the we our During first five to quarter, delivered Chassis GreenPower and Forest Cab

collaborating Our scheduled into technical Forest to expected working process teams a two future And thereafter. upfitting in plans test at finalize and the include River's are our September. Altoona the today shortly with completion sometime facility

of store what test a a Altoona knowing in transit but serves for those they're vehicles buyer's opens to for properties, not the of with lifetime funding Now somewhat up federal also purchasing this only guide vehicle.

the very ever highest a the or transit built Expo Altoona last of vehicle the Type-D and time score our school with line a These Forest of as This type. follow B.E.A.S.T., at our initial off is units River later build two, open XX.X in delivery last assembly ACT score by with increased Our grand production of an this first any are market. medium from rolling three-quarter the month. at to the purpose covered to also more excited heavy-duty shine fall, obviously customer month later any a tested the exciting bus, and Altoona we get this have for unveiling units Star about our have time EV September. test this vehicle We're time up

the on our forward. are to rapidly at concludes floor and And for remarks. various and ground putting for top, today moving solidifying mentioned is open funding prepared the please Fraser wheels that the Q&A. mandates we Operator, excited be As

Operator

from question-and-answer go Instructions] Please question We session. will BTIG. comes with Lewis begin the now [Operator Greg ahead. first Our

Greg Lewis

Brendan, Yes. talked shipping of market. of seen morning, everybody. in challenges and you Thank the that the recently kind about some were good you

gradual As targeting next basis be point you think up about you've it and the doing months. XX build-out at scaling to been sounds the and a a the on I guess, on progression monthly congratulations of within going the we're XXX like certain units

to see of steadily? the quarter where guess, Like, that about think we that just about it target, in thinking XX we the times progression next the able we're slow that? -- like and should to kind we ramp how then are of, going these of be to back of As I in equipment, over sort company for expect or months more accelerate in production last the gradually be is something year half lead

Brendan Riley

by ahead them Supply semiconductor that's that of to orders convergence controllers affect been nature. pieces, some Greg, things inventory. a our industry and that having and those exactly on, things of is, at question. weird think, when parts of paying struggling beyond, inverters everybody components, that's a or are really for large good it that the possibly the stay Yes, issues into next to issue into comes dedicated that something and in in industry-wide to We've and go our able there's to the year us And definitely chain sometimes really with, early I that happening we we're placing mostly either of once. expect

been some weird hiccups there, for be. or expect those chain which don't do components issues, have all And other very We affect to month going what So the in Even chain least two production, supply. GreenPower. had at components may we know and issues. of here those but are little short supply have short-term supply

demand even just issue ocean shipping, just another shipping, bigger than interstate there's to take It's is of shipping. shipping shipping. ability So -- air have a and care but shipping the not for we --

ugly -- and we'll head will schedules in deliverable. and is vehicle COVID in here supply earnings raise capacity our that We if this vehicles. delivery or call So again shutdown. those supply And MD&A it's of and off. those have -- customer up chain be are we its bets driving buildable sometimes on what anticipate stated build shutdown delaying the vehicles all issues things entire chain nature. we or the and that production Again, costs We there's stated to don't that what today.

I available we'll be now, to able and are to think, us to Greg, I or best clear these -- I right very But ideas it's of what had the do tell we'll today. So have based what the you. some wish concise projections and best things on

Greg Lewis

super No, no, was helpful. That then… Brendan. And

Fraser Atkinson

number, that -- that your whether a demand in to in what we to in able to at that's that Fraser that's takes Greg, looking be magnitude that we we're -- And producing sort a Sorry strategy means now, in spending doing right need demand. be of will, time terms would just moving have be through just been the to that building of event of your of you beyond to whether partnerships, year, production, through over will spent interrupt, its context in that. what we if we have us if have the handle past of of described, month, for incremental terms of a we doing help have other position the fair you move growth this because a a do in to are how out that mid-term is speaking, we of question that up accomplish amount at off product XXX

Greg Lewis

about also as and but kind been interesting, XX% on lockdown, about a of how pickup e-commerce, fits side with to I go in start transit from right? we're still L.A., like of of campuses bus Transit cities kind the back to one I like wow, about transit acceleration people reopening and Realizing of feel of Yes. a And or where about it's some No, transit trade the more to at approach buses. lot a these green COVID. almost in any mean XXXX. been then, because about in wanted absolutely. or interest and in bus environment think a the it's flying. interesting, you market, in we in -- I think it's people I business, EVs Has ask touch-and-go the thinking previous think it's And going mean, I falling that, already for that commercial this demand, -- as work a guess demand corporate market, August maybe I around that of like go there they're their like transit COVID calls touch it's bus talked operating power capacity. campuses system is

looking there these ahead some at potential XXXX. So of I from a customers already of tone certain kind probably Has I towards guess will in point. buses, that guess we're been change be any ordering

Ryne Shetterly

Vice Ryne that I'll Yes. Shetterly, ahead This and Marketing. President and of is take one. go Sales

peak demand Pacific as Silicon Northwest, XX Valley You're and Portland interest the as absolutely days spot The in the last the so and Seattle. on. well between over

Some of largest very the folks are transportation. off between be companies bat of And companies pilot when I year, the programs would these bring the put of to on their the just beginning exactly you're really dates campuses right world towards back, now up. say, how going in right of of -- lot end starting are the A and put and out their September to vehicles opening the to starting going the many see to they their therefore, are deploy. need for running figuring enhancing people back need to many

XX exactly that's certainly phase many the last of needs figuring out us busy to So and due companies those are what kept are going over of be, their in diligence the days.

Greg Lewis

Hey, guys. it for much. you Okay. Thank great. That’s very me,

Ryne Shetterly

Greg. Thanks,

Operator

ahead. comes question Please with Riley. go Chris from next Our B. Souther

Chris Souther

Thanks my guys. Hey, for question. taking

you limiting space? of original the the feedback that your you? you Is of how about the customer this timing Forest see kind fleet as beyond after their potential in earlier The within the that a announcement the week bake-off on in or addressed first to or different announcement a between with that you competitor Altoona? XXX that you Can thousands of them? talk with be technologies, one I'm potential two it for Do from River. shipped had about expansion you see any order your And could order, that two get where is between curious them also talk the they five from potentially you it an vehicles relationship? the see

Brendan Riley

Brendan. details you competitor with is that I what mentioned are this yet. Chris, we've don't the that that got of order think

on. So, Star going know X for And Again we that vehicles. platform vehicles. really on can powertrains seems with now I comment larger don't our what's River it right EV is Forest be arrangement Class to for

in vehicle that. motor be wait to of basically to going testing, back So and that Altoona choice others properties get ahead we market our in is and the integration again point, about for this ourselves. to anticipate Altoona the the but I we hand, their But keeping the onto with or speak maybe that not right. fully seal again on We get making for real moving we're down they're But vehicles. vehicle some -- Forest we're help that this coming our components deliver orders vehicles the anticipate for summer -- would a really once only of have rely the at later which heads products our details have and we of can't we sure in, We maybe our speak you on can best a being and and transit approval. yet integrated that's because them River

Chris Souther

Okay, got it.

we've that just this order any -- maybe pipeline curious, the can it stands book from acceleration here. where around seen acceleration talked the share So numbers today? about you But you and

Brendan Riley

all orders to but that say. have is I seat. we can announcements to going All I say some am big not There's any sharing be can yet. hold announced your not I on that's

Chris Souther

it. got Okay,

are various by kind goods. cash So and the that kind a kind flow given of quite vehicles of, you've maybe in few year-end and inventory stages finished just, of got that positive indication here of near-term

me what expect build of versus Just, kind see inventory think months curious and couple between looking of to mash and couple as something we seen -- third that still the align that to Is starting the of, a like that starting over we've see you production cadence deliveries should way and far -- about is that as here? last quarter the excuse production. good we're delivery? Is quarters far next as the December as fourth is the a at to September way

Fraser Atkinson

context, And Absolutely. the vehicles just had school since been the we just September ACT that XX time quarter a the spending building of the over start and And referencing of any earlier. the to a first completed are at in and production quarter vehicles, put vehicle we've this Xst amount resources of there you full weren't those and that were XXst, numbers just of our the into be filed buses. last fall, considerable in that Expo. And the within next on deliveries unveil August part we'll month. doing the And

activity build the a we've of and in So just using then been we've now that the example will quarters. with good that's to busy December kicking and been that inventory resources September up that fully more the on be the

Chris Souther

helpful. That’s guys. hop Okay. the Thanks very queue. in back I’ll

Fraser Atkinson

you. Thank

Operator

Partners. with question ROTH Our Please ahead. go Craig comes next Irwin Capital from the

Craig Irwin

my Hi, for morning, good and questions. thanks taking

growth kind was And the hand. bite vouchers, There's benefit from to larger the in handled remarks, delivering, us to actually there's heavy-duty I adopters the the about to this it's tricky New how run. deliveries delivering potential a the being lot of couple the this be pause, and really near-term something of that quarters? other And think over there putting see is vouchers, well? get infrastructure that the companies opportunities So know, right? on your wait you seems pending But support deliveries likely next wasn't for for early support having or EVs. conversation among seeing medium actually you're a customers to York of resolved future as the to the infrastructure prepared you of but that's plan over the helping companies issue out And never I want not where best Can right? among growing pending given this frame a the is HVIP longer be you for whether expected maybe surprised they

Brendan Riley

other them of Craig, wait sure the said, rollout lot a first to will is, you remotely. and these Brendan, – I'm in the there's working them. But sides isn't and always incentives guys this the for is again people There's One still two chime the smoothest. people like here.

in are a to approval adopting and as and very during processed ICE are lot of a hard get there piece far as across So for timely fashion these approval concerned things process. incentives the

see least at far. as we forget, So Don't the so we've these getting bill helpful incentives got we've finish a to programs huge term. dwarf any that here be in line that will now short that these seen across of appears the infrastructure

about are necessary biting feeds the but But adopters think near-term there that be incentives at would even So without are but into not we more more sure us. are removed. we're vehicles incentives in factors the not keep seeing incentives. from actually when compelling Craig not focusing that But are incentives, better. the only we're for when least that's you it's to adopt. more on grateful certain to these tell we're very time. beneficial, But again, those that that the incentives those we for possibly our making some preparing for mind going and hand and future, perspective We and early not today can't the are be our And adopters be,

Craig Irwin

Okay.

your from long you had right I started them that The would orders and just the customer sheet. if reassure this us do this these are now probably goods you get think these you if over the you delivery, us do boxes even ramp I very these or putting that to would unless mean, you you and time? credible the on can that checked. when of had go have sort a all you mean, the your is, is for does wanted that's ship we market suppliers, names talk before built what ordered balance have other and items we of the orders quickly, names inventory to putting But tell ask never of vehicles directly question brakes customer of see process, the could sort through some to soft inventory on available us slug the I that, clear? I out finished

Fraser Atkinson

sort from on terms in we're with that of comment lot Well, -- to I'll a of models -- the make dealing goes the which a XX products when product a into footers, decisions with have start build of high-level on the we we XX it's up. range mix to

models our our EV And previously we disclosed bus. select so, as D focus school platform Star on the within and have was

easily the to on are So those EV that Cargo -- we will of they're portable, to out EV Chassis Star you Plus. extent Star the Cab the terms in Star EV our Pluses platform build if up our and to built

models And a can follow-on same platform. of so, there's that utilize variety that

mindful all our some them so, very with these demand And buildup this within of platform. build the fashion then in if and we requirements of was can't the out that models satisfy to other place we can

part great being numerous deploy So the of to the is flexibility having able to have that really across platform models. that's

On been indicators the Ryne part the each for bus has year. we has based numerous production have the and increasing events better of conducting the time that that at ride-and-drive market our some been on of looked key school B.E.A.S.T.

based do in that along along hand the with on with sales So we combination market been a pipeline. that's information customer specific the of have orders

certainly a to short in factoring -- So that we position we've in factor has been fulfill. isn't all have, term we that's decision. in -- there as a in that see what well But we cases the production particular what as were driven the

Michael Sieffert

Mike this here. Craig is And

or units finished deliver And XX be buses going Fraser month the to this school the I to to had we we position and had said goods. in goods. a about specific anticipate both our Brendan of think as start you a question in finished quarter, quarter. later At end are this over

deliver start ago after higher over at coming cadence really And US, so, that the our months IPO ramp-up to are it to months. a the call that going those began vehicles we much in

Craig Irwin

Okay.

or clarify least the delivery for correct? are to at that for customer ready delivery. customer XX just fully ready units nearly Is built So

Michael Sieffert

Some mentioned Cab of Chassis those... and and some the of are those as Fraser

Fraser Atkinson

They're to ready. go. They're all all ready

Michael Sieffert

Yes.

Craig Irwin

Yes.

Okay. very helpful... Excellent. That's

Fraser Atkinson

And that's days XX ago.

Craig Irwin

Yes.

As at days us delivered you can this in you tell delivered? of how of point been many Well several Yes. many sort the few? XX Have a ago. have I them mean roughly quarter?

Fraser Atkinson

be but announced certainly we haven't will doing before quarter. so We the

Craig Irwin

Okay.

how So your still is many physically are in guess question? the possession I

Fraser Atkinson

-- We we track or this that stage, don't that that's the announce doing that certainly have we're in at near don't term. at looking something but

Craig Irwin

Well, Excellent. thank you so much.

Fraser Atkinson

Thanks, Craig.

Operator

[Operator Instructions] The next question with Please go comes from Maxim Tate Group. Sullivan ahead.

Tate Sullivan

Thank you.

You first mentioned demonstration but or you step the can of the to – explain couple times this a ACT this there during already you out will of Expo, of with that? benefits thought The time B.E.A.S.T. the unveiling? real grow. just B.E.A.S.T. be were the I

Ryne Shetterly

the is that date variant. school a to we're the be first going be this to XX-passenger had the XX.X-foot delivered This we industry's has it trade up Shetterly. going So will be time zero-emission is And that to Everything purpose-built show. Ryne to bus. Type this been taking first D

Tate Sullivan

then can order the just win potential. B.E.A.S.T. comments or about And for at the you review the

then to able Is that customer? to you Now work? might said already How customer not it the you will ordered order said this from – but is maybe that the B.E.A.S.T. deliver? thought you a monetized it's be just pursuant it I

Ryne Shetterly

No.

vehicles which of several first accounted the tranches previous been in announced for. releases all have are So

And is in or expectation are Anaheim announced will vehicles internally days XX right a others delivering the we've USD we so. next vehicles the that those gate. of there those end out So in have deployed few customers' that the to possession already users and

Tate Sullivan

Thank you all.

Ryne Shetterly

Thanks, Tate.

Operator

like concludes for remarks. question-and-answer This session. back would Frazer to the any closing turn to over our I conference to

Fraser Atkinson

would been everyone, topic the this point event. Convention that we us. August at as being our X. of It's gold at Expo held a a ACT and Long to you joining on participation discussion. September the I And Center Thank particulars XX, out Beach the has for of sponsor the are like

which our if So he'd in have Los come able hopefully side booth, and ACT B.E.A.S.T. ADA Star days, at Greater the we will to either Plus with to EV the And able be EV area Angeles at our school by Expo. and is Cargo attend entrance. right you're all our Star Ryne, bus our the the

great bus about really and school of it's see talked on we've this vehicle So call. that the opportunity our our unveiling to

of again call coming thank ahead and and lot for forward us with look mandates listening the our – once and So exciting we on of to our are the the incentives you updates stream. to a that earnings providing times

Operator

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

You may now disconnect.

GreenPower Motor (GP) 13 Aug 212022 Q1 Earnings call transcript