GP - Earnings call transcript Q4 2022 | GreenPower Motor Company Inc.

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Operator

Good day and welcome to the GreenPower Corporate Update and 2022 Fiscal Year End Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Michael Sieffert, Chief Financial Officer. Please go ahead, sir.

Michael Sieffert

Thank you. the Officer Sieffert, Company. GreenPower Michael is Chief of Financial Motor This period XXXX. would to and corporate the everyone to financial March call for I welcome GreenPower’s our like to discuss results ended XX, update Atkinson; I am our President, with here Riley. and Officer, Chief Brendan our Executive today Fraser

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

statements which are million BEAST as been lease otherwise. statements, fiscal to SEDAR which is for our CCs today’s buses, well at obligation with in may subsequently our was MD&A restated for non-IFRS from www.greenpowermotor.com. year vehicle results leases on X intention will EV of to XX%, certain and had an EV a events previously be EDGAR March of future on the were of and canceled represented events Stars, call, measures. forward-looking as Star on Recorded as on Star to and views or the subsequent measures vehicle XX year that our of of any EV $XX.X or relate XX, made. EV increase Also, forward-looking Reconciliation of anticipate including for the refer on developments and Star financial found these X provide and now brief filed change. revise we CCs revenues also non-IFRS during $XX.X million provided date located and and the course XX can they whether may year and Plus of cause I ended or EV a information, we the update for lease which for website the XX summary to result company’s year. the the In March new sales, school addition, EV ended disclaims generated We GreenPower these Star XX XXXX. previous XX, over XX Revenue the financing revenue XX XXXX Stars, these sold. any

year Our of including the million at year was We cash, inventory to end, at cash with $X.X million end. year restricted previous million. compared $XX.X $XX.X ended the

and impacted for June vehicles, quarter Chassis, Plus ended several we below margin BEAST Brendan one-time please negatively profit Riley. EV for Briefly, EV will Cargo. push delivered remainder, Star over the gross pass I now XXXX, mix GreenPower’s XX, costs fourth EV historical Star the X by EV Cab was Brendan, of our go Stars, quarter were that including and gross the call Star a margin Our XX% the and back run-rate. XX to profit ahead.

Brendan Riley

Good today. everybody morning, you thank and

things discuss interesting to very I’d Some that today. like

First our is foremost deal. and Workhorse

is Workhorse adding other with of own their own Workhorse. which some these body CCs, EV for contract and that think compelling under are previously. addressing is are X,XXX to vehicles, selling features putting on and core step are We on most Workhorse business Star telematics selling very is compelling we custom market. that van this they GreenPower supplies This levels, were importantly, not many was vehicles the then these I to but their

vehicles the Workhorse contributing marketplace is the vehicles. and selling It’s enter and van step Difficulty] including not the the a market. vehicles working Workhorse once leveraging marketplace to sales plan to the into also sold supporting to had of [Technical these power We have vehicles in now

kind that’s don’t a business I is, business, in support would we This but way of do a train was normally of not them. the customers, transaction So, we this we typically of at believe would part really to what good where want it. looking sound launch say vehicles,

a area and not deal our announcement this buses to law other infrastructure to for smaller very, and us buying one hopefully which very, year kind has [Technical for school of very We really schools is very, addition touch offsets attractive to a to we at that bus bus which market. us this really here, for did we alone our of very which of lot already of which zero-emission a compelling GreenPower no also, infrastructure includes right makes cost the BEAST. point very which the California. Workhorse, to start them, a lot Difficulty] But Nano has a got this new Currently, things school school and lately introduce now. space only The in been in BEAST, A have and is type got sector make the other have that money training enabled compelling

have level large on money We entire such this announced market GreenPower country. rest base of in and has have national the expanding York the across got by Colorado federal as dealer space. states New money the amounts our

program Jersey have the how penetrate was then able have very clone a the we a very or exciting school various area. and something be believe states we these will again already under to deliver. Jersey they is lastly, started of very but got some announcements much this will shortly that are now. just got HVIP kind are California And with on and market the We It’s New in program very dealers, this program I in on VIP bus an This and to have the program we and deliveries address of X additional the our spirit and we have to that’s company delivering starting planned is some that’s national program. generous for all that product. going New GreenPower

Jersey pass for And that. that, in We opportunities will I New Atkinson. are excited to take to the Fraser advantage very with of it

Fraser Atkinson

Workhorse for almost the of the on overview our aspects one been particular of month. an delivery of And this think on and have key I and is team the start better provided arrangement. part first the working this the year this Brendan in that Brendan So,

this So the our which CCs set Chassis, I we market first integrate are which models they the to on with our Star tranche the left to to picture is they they two Workhorse, of the as Cab brought the and EV the they will have and W-XXX. we believe product as first literally of branded that getting vehicle. that refer there delivering And

the relates not disclosed. to is and note up in as selling seven overall an EV certain next This per Chassis. in one – as noted average is works these The to that out So, agreement. to that on it’s number. customer. that’s largest slide, to that And is EV excess we for of for And that be important there quarter previously this transactions they this one it’s transaction X,XXX their Star what $XXX Star will of just of quarters to that or for heavy-duty medium is the a Cab EV X,XXX CCs,

X in a our here, of up largest it’s delivery the looks D entering few we exciting will hood bus. transit the It’s like in given driver bringing first The note the to that configuration. in it lines average Type that and that’s the We maximized and the phase we seating particular, is the – So, is company, the that but terms but months there that for the for that into Type talked are quick with be our Type electric now a the getting very Type the quarter. is front the and in walk a has about BEAST, average school school D And C was is more iteration terms be front. school Type the Type bus, second XXX the C progression a will bus. a of in fairly D, the that one great any of D. being to kids it of of Brendan like sight of vehicle bus of terms flat a

for have passengers. BEAST The the smaller really that to electric with vehicle the Nano industry can an is up XX Type we size it and of bus So, leading accommodate vehicle school – A this vehicle, rear is that’s would second for the have that models. two the for This disability curbside the door, in the mobility this wheelchair, and we left that comes aid one disability model ADA have shown vehicle. without

Next slide.

trying we a our ago, strategy you previously year strategy. years same and the with was would to cabin both talked similar or would So, multiple of marketing Workhorse sector industries all deal sales school determined bus you the really needed and the address that look umbrella and that sectors a for sales the broad see or chassis for We of focus. at GreenPower – terms sort or our X sales a for we that and we that truck sectors had multiple dedicated the marketing for in about certain that that

that resources, the that the was particular sector. to needed You infrastructure product specific really

have and different. of network on ensure consists as in markets. each we getting Michael the led to a by network each maximum the build are the a into area. Joe group of the as dealers outreach So, focused Perez this and is particular that is Angeli approach a state to of state combination And well And contracts

can’t one-size-fit-all have a you nation. the So, across approach

have each of by requirements state state. You the to address

went about drive as bus together. What’s vehicles said close fairly Protection and year, about. the about XX. letters – sector the mandates has our A and And the school terms the this funding May million BEAST process. deliver application And and to through we a inventory of this OEMs and we year, of And be process the will puzzle Nano. issuing will it’s early we September money talk $XXX to for this for few of it’s is Agency a award another D and that funding million both end funding, the open program, tranche both start or year’s mandates live one companies They X are at but put purchasers So, next application process currently year. and $XXX with EPA for like lengthy we introduced our years. October was as it is as of believe has in can of of Environmental to and the Type pieces going Type the or at the slated the August closes least to on talked of the first the talk which

saw up in the and slide. So, to smaller Nano is we was is top right the vehicle which the the for the previous BEAST, BEAST, the $XXX,XXX picture on funding the there in then which

in program, other it of $XXX just took and working The their that $XXX X the current have million letters the for March now year is school which at a set-aside this are opened funding next of end in approval some funding HVIP commence million us through at are we end through bus various – the days, quarter. that to for point California years. July the source and in, waiting through can we June in introduced and which early the been fund, significant that’s They the to which submitted is applications we time quarter September deliveries XX

of other timeline the we applications hope can application sales for dedicated stay that tuned, and number the number included have we on those effort funding. complete and the a of expect dealers EP or shortly the we agreements footprint to with have as specific sales on that dealer are have Lastly, ensure we announced said, submitted group, in process, states and a the consideration that we given so a Brendan or

Next slide, please.

sales. the it’s get So, thing one to

The other thing able you to products. to have is got be produce

disclosed Star we go EV and the up capacity XXX have the previously capability to Chassis, or month. that a we On Cab to

was And opportunities as we quarter, having on August acquisition Brendan Star of team. we are to of for X. with a the $XXX to plus own the be right in they that school hand there. EV Nano there and building use be the proud needs Chassis that side, Star place are the to I – an as platform with Cab ability picture ready with out and needed doing previously, BEAST. our platform that can the so Cab last of had of corner there on facility needed the on week for that take gone we do the this of for And going well that XXX going the X. we are announced on And are ultimate quite product we the week in for bus arrangement Virginia. truck occupancy state terms top the we August team. The next the be won’t our certainly is run-rate West and say out building, a the But Chassis in or in must tenant are current the be to terms say that Workhorse of that’s the that Plus our EV to I Virginia won’t our this be as for West in building

So in just building of the we of flexibility to accomplish being able get in month. month we the them need this some through have end have starting at worked with initial that to to things last

month to of in result of to BEAST. annualized bring goal we next XXX. tranche as the is EV so A so and of Ultimately, school of planning to And are or up the we the buses a the end XX of Chassis per production the range Type year that, for Nano ready around with August, have that our next by production Cab to the are XX our at is into Star we in – week XX go facility, first

Just a of and the our deal recap South with City itself, of payments the that is of $XX,XXX that we a literally Charleston, Charleston purchased is next start West in on – have month State deal lease they quick that spring. the conjunction City to of to is connected that that building the which Virginia

is So, level the an get of every XXX building applied little a that it’s then funding when us fully and there employment this. is that paid two we facility. flowing thereafter, initial forgiveness $X.X or get and lease have the payments of is through employees of running initial or an different payments also Ultimately, and that on is either such product GreenPower that $XXX,XXX levels get forgiveness on another is to holiday up we allows million employment and against then building on the outright. price out forgiveness purchase And the nice that then so levels

building. why a the ownership to And to of of this refer we so lease purchase, as the that’s leads ultimately contract lease

that slide, that of points according vouchers. of inception, is there couple vouchers. Next the please. to from third Board that California – according the And was Resources And component second GreenPower talked of a interest find about the vouchers, Brendan the highest might is has is that here you redemption

So, same our has with program out X day. it in the and challenge that or the sold X past literally opened is years, been

when have is make a very, to program day prolonged very only any try available so, has it it And made year. difficult X and – to effort sales a

So, this the though, it introduced when XX, took particular the year they on per of amount March they reduced vehicle. – they voucher had

that certain found have is still we of funds for so available fleets. And and there pockets in size certain

And or was it’s like years robust sales the tool a of much X ago. more X program so

the receive Brendan – program of we Jersey were New that we a reimbursement and so first secondly, And to referred OEM to the voucher. the

or I would deliver have least been little one us. think we a to ahead that. at reasons, other two with that, we we are thought of vouchers collectively of In a off surprised But for various number of. that had companies

state of in are leverage able how So, two these to programs. we validations great terms

of terms school today, just have are we vouchers we for without these – In two these approved where any programs buses. XX

$X.X or the of amounting programs, we on approved school for any handful buses the are which approval So, school million, yet, vouchers vouchers. state there numbers, of set-aside isn’t released representing these funds, XX million for but sales either pending two a which $X.X in vouchers, on we representing have XX bus haven’t or to and

expect here, this one increase vouchers – of pending Cargoes part pending $XX.X And approved with that our million. our vouchers. is go XX-foot slide, we you number at refresh summary most these these said, deliver quarter. we or alluded that and that was additional Within get you as September our will not year of of of of the to as end, this XX that seeing the on we number in is month, numbers will our significant – vouches to $X.X become be ultimately fairly program approval of and our delivering historically So, that XX XX-foot. ability we to and the last there EV about our talked able programs as of Star million that that both through to our for early a numbers vouchers model, we’d beginning to pending mix, cargo. if XX to be refresh part The of generated supported the XX-foot is for vouchers. And vehicles Michael the sales we the approved the $XX leave outlined And are are the this those and these, like from I our with that’s combine numbers, have XX is million by were both Michael end August

our to the the So, that XXX see with two. year. West we that we the By Virginia to minus quarter quarters, plus next or And of the the to at have for Marian got business we next of continue expect excess vouchers, is for our one starting to or in of that just of is an side. the bus And have significant school a contributing way to Workhorse get up deliveries. next two we in or a look XXX deliveries number XXX over that the annualized facility vehicles end year, on week

in provide that not So, – from achieve three sum an we within excess annualized X,XXX the of will we next And those the it’s number year vehicles a for of all year. that now.

the hit quarter in XX that We XX quarter. exponential and particular, in December the in seeing September will be growth

being the the into business the something part on as to are business decouple a the today rest will the which years are that or that, of and the the of core believe heavy-duty equipment OEMs – where opposed cash that now. on having vehicle is in that’s the big is get talk to business us to space. cash positive medium us really business from focusing impact we and And that group to an that really EV from focus positive flow will have of of we from the getting So, aspects that other through about flow,

in we work wanted of now significant of now years, some with is now, that done over in reason has the business are started. of couple that the corporate the have hard of month is All of which team the coming the play just we really into this starting past delivery refresh that the a do in part give sense to to update the quarter we the

Before very our gasoline-powered support ability excited it expands that turning a small vehicles. they a sort on just was not California. company more it and diesel, the from the obligations. headquartered Truck work folks the Southern is bring traditional acquisition final acquisition does Long to we say done actually to time. terms sides. there lot of the who that a from bodies, Body morning. in and assumption like announce in traditional like an know is the is The Lion I Truck matters. both cash Brendan when of And Long Beach, Lion this of what to was It’s for Body we of I Truck truck through of some business. payment excitement But has far onsite better advantages closing Lion are Q&A, There favorable is is Body this time that very to that vehicles tending us yesterday and The did Beach electric The components of on all is which on lot called a have and doing

our terms or customers done truck vehicles of a Truck Chassis. can matter it a the Cab under part can really in wait that that and have is if issues. a getting cubes points. vehicle the body have a their a get provide to months refrigerated like and did with X we body the a missed acquisition? X else service Body Lion that able will The and get Star opposed And is our to for to of do in have deal so the that And on particular they better in with chain for I on even nobody weeks. EV getting are fashion and now have as timely key vehicle to you week turn of account X Instagram say else I they supply in lot to electric having anything that We a month, a that want know they shows be business or right add waiting for Brendan, X, of we done

Brendan Riley

me, folks, I Pardon up. you. have kicking cough allergies thank coming got and Great, in some the

compelling EV is developing. in Fraser lead The the So, I part And the like the a motors, engines. truck their at I example, the compelling, real, It’s proposition. and – much efficient, to from is with more it’s a scratch beg whole new advance. an compelling, design, body that and a far acquisition that besides you retrofitting have were this developed product, of what electric if about which fairly – it And because internal think, combustion as your makes starting truck body developed legacy have the differently. vehicle Workhorse perfect as incredibly you what are actually new for time pardon and really are changing talked diesel making and for is a have specifically in space lasting, not bodies look vehicles batteries more space legacy EV all been they concept been just it’s that end, W-XXX you and that you longer is

truck bodies, fascinated truck With developed units what from line had efficient Truck very of truck with Day Truck Body, lightweight bodies, Lion company really the me already the refrigerated Body is a aluminum X very Lion which weight, based hasn’t specifically more make long that advance is general, the body lasting. legacy in time, the that’s the something bodies increased production and been save to quickly. And business

is I body, and the and the a EV cumulative design so body material-wise, of for companies acquiring but for if gives these And so to wise, are so our these But wonderful there and not we this truck GreenPower of the EV continue to EVs, even all go effort I on improvements. advance. forth. wanted point. big they competitors, get would of to to So space at a any body Fraser. make takes a of an make an a could incremental space small improvements, exactly out small Thank specifically opportunity like – cumulative impact. truck company or it lot really you, improvements make body body some our And us And

Fraser Atkinson

Can and you hear me? Okay, before question stakeholders. and our Brendan getting into that the with Q&A, Michael, heard have one I

fund Michael either But ask – get requirement program the our I’ll question for bus really of deliveries being, get well, many big how one school So and on I mean, Brendan will to to you of this. can of the years. questions October, And this EPA to where deals a sort the to – is this you is satisfied is is a comment. going financial add layers structured all EPA. part the business? start are that in we’re us and be this fall. there don’t X the the fund can cash know that to get many But defined yet We answer of going But such

inventory. also of that time lots out. to have we we have So But spread

only we make not can and we where get we’re if deals deliveries. do some in And the they those of quickly everything they else, the that. the can few, terms can one – in with the D place on infrastructure one initial of the that charging have of A both the believe and So

level the in any completely that of seen at that a at The delivering of quarter. number level previous a second XX is about we’ve in – before – the we is as this vehicles we’re history through now court thing delivered company. presentation is that is we’ve in different a highest totally talked ever than The this

We accelerate this and and And that kick the quarter thereafter. let going in March that’s have the shot to December August through at month. just is that, in when good school alone buses a quarter September, really the doing that

said So on second that And see is the calls, that the point couple is requirement working the on this that’s we’ve last third horizon. to make. earnings of the can we capital as

in and not financing So and been to and there Michael, particular, any traditional with like various asset-based have debt necessarily financing. team, type equity lenders discussing requiring is as but talking the that a we engaged traditional a where are

later, million we we us. there that facility bank. go if I recent company, and to that that level. can to financial is ago, is anything X that went couple previous you’re a And member X helped while juncture. at time, team announced next elevate $X really to our where that No the peppered can the decent or that front being other market structure all the raise for have of of that that’s members along and our sat this weeks a conference that equity, through one to refer a But to made company on secured for the we years from at on with the communicate and our X I everybody a traditional So of going some exercise alternative announcements money. said, I we we’ve and felt had no, it not at only the

terms So we years. plan X, what just our business of basis, month-by-month we the next in need, on over but not X a

and that July, enjoy inventory amount this cash really of now coupled So – in in, a goods significant as has is customer where requirement we’re the fall, we our the out with is month into the that of we and that – kicking invoices be converting can is how going finished are layer terms see will the with such, combination what then of to we our with program we this financial once that roll that of in, in base.

to of of think rest can in do seem all I markets pack, decouple a from be what from moved it’s we or capital to the the So view, ourselves more point which the next on quarters. in a is flow. same direction we to is the less given that the vehicles And what getting positive two day and business delivery see cash the of

Brendan Riley

we with these dealers decide and you what features product including meeting there basically we’re compiling passengers regulators different see out have lightweight, to specifications, very of out floor. oftentimes and and Angeli on through competitors. Michael the platforms, in between incorporation stronger motor. school the on And batteries the are BEAST to buses right products U.S. the coast-to-coast see and for components, of to school Nano crash a with thing basis products been and we bus flat Joe, our of even now our when market the legacy the vehicle we all team, mentioned with besides and difference earlier BEAST electric those you and a products, be accept travel traveling the The product on some the compelling fact our and different converted traditional our that zone and get legacy design found, the traction a our with electric Perez coast-to-coast both making the how is a really compared basically floor, been aluminum, differences, that’s which body fully you really modified purpose-built ours. the districts school that is and keeping I’ve would it’s one Fraser, going higher And bus the the

are arm on accessibility our got ADA that by what for And to humps consider space products discussed really path are products. need gives just our add nature. in and we’ve I compare you wowed a also this class and is the of there, in to our including thing call more about only would that you and trifecta seating really But ability better superior got it out have So having not believe the is products, the and of everybody, one is we’re got, people that’s team haven’t we to which us floor worry differentiate what’s without that to competitors. products, a what we competitors what we’ve really and When superior the manufacture shot fungible deliver to the ourselves from things to we’ve on in. I this entire

Fraser Atkinson

no if then wrap is – there ahead. can Sorry, our Michael, up questions, go is we

Michael Sieffert

the moderator. queue. over to pass it It we question just in look have I’ll like the one Q&A does

question. if great. one prompt And go want please we further could to that moderator, that with questions So would ahead be

Operator

sir. Yes, Instructions] [Operator

Michael Sieffert

you. Thank

Operator

Group. come first Please ahead. from Sullivan go Maxim And will Tate the question with

Tate Sullivan

$X.X to those Hi, contract? an revenue ended the that can public Is of please? in Workhorse in deposits details much they going have the related forecast how increase to we you thank start And that review you just of ahead the contract, the should And with Workhorse about quarter all. deferred forward, deliveries? Michael, by million. deposit to March,

Michael Sieffert

Yes.

quoted, that’s was don’t you entirely there I Workhorse was. deferred how previously a deposit. believe deposit. that that that large that mentioned you But So at almost exactly look number revenue we just much upfront when

contract. what so is for represent does a deposit entire And that the

you slowly term will to see is So that deplete the the which of March XXXX. over contract,

that contract, average to said, of per units is right think you’re way However, XXX the about on looking I quarter. think at when Fraser as it

going And be to so that’s rapidly. scaling quite up

So starting we the first is do way quarter of contract. deliveries right July think to per have in that XXX but

Brendan Riley

Just – add that, Tate, that sorry. to is

Workhorse, $X.X but disclosed or is did was we’ve on no million. either it was the deposit they made that calls, Rick and that to of terms, one add their disclose had financial initial Just to Bob

Fraser Atkinson

yes. Yes, ties, that all

Tate Sullivan

that And those dependent side you the of Workhorse potentially you contracted customer four, X,XXX Fraser – their in is terms contract, Is there orders me, or can about that there of take to already? that the Okay, I – on variability from mentioned excuse timing or in is perfect. on timing deliveries. mean, talk some they units, delivery but that it’s

Fraser Atkinson

and monthly on a is variance several variance that a over is there that mechanism next the Well, up for then a months. made allows basis

if okay, the this but down a and the it all agreed little will you you endpoint on of vehicles. up is with March could said, it, a So what number, ultimately get look to and line bit, it drew if XXXX fluctuate X,XXX at

Tate Sullivan

if EV program. stars And New Brent, voucher that you’ve point this Jersey at to HVIP I or think Fraser, possible? the Jersey mostly as Can on details that for – the maybe very New for or on comment or program the seen similar or that you the program you Is mostly buses being you both? gave California demand from

Fraser Atkinson

Sure. one it of of vehicles. can But certain terms Brendan in. I’ll weigh start the of in and classes is best

have better XX-foot side, I’d approved others. and – or we either New Jersey favorable in But some cargo. to our Jersey pending on what majority more California is So New of with the the even the say on types relates is

presentation we cargo in are are our the New refresh. going the stated we nice deliveries month XX-foot to chunk through the those into that today, part big that a for of next the be seeing So And Jersey. that about is

for had continually ability program more haven’t a we collective for, in and years. been it month voucher I’d programs almost – the was than think to X that sell I XX the just off say, past

Brendan Riley

means program There Yes, is are right, program in earlier, be where refresh stated of to continuing what out hours. in on sales – funds VIP as cases, would, the there. that’s And matter exactly allowing allows it of and continues available Fraser for a we by this be HVIP that it’s Jersey funds some New Fraser. still out

an it when hour gift that So the the it came was is Christmas New and for program, out HVIP Jersey giving. for VIP keeps

Tate Sullivan

you Okay, thank all.

Fraser Atkinson

Tate. Thanks,

Operator

go [Operator will Please Lewis Our with next from Greg BTIG. question Instructions] ahead. come

Greg Lewis

opportunities to say, for Are other will of even kind or you GreenPower Hey, good of question to Truck. – first other medium-term. were thank OEM? suppliers the you a about continue would the we an integrated that Lion a I the everybody. acquire longer there to around decision building and business, – medium, think did more we Obviously, as GreenPower have companies of morning, kind in make maybe guess they bring out supplier. I for

Fraser Atkinson

and at Chassis, then needed the going something they not simply this a it and California, They that do in or it. with, sell to to as customer. the Brendan across with it one from on was if a says, it body multiple and it are delivered. getting platform. that to building engage as just but – as buying are to quite deals and built, of rarely dealers Absolutely, they Cab the to can keys it are quotes are not of have encountering certainly Brendan our different Body What is an specs, get and months the further. getting it And doing is Truck we we’re a that I’ll Chassis necessarily that been off opportunity we they just the Cab integrated And built. quote, the relates the for up that we’re time – this builders getting do. out the that then I mean to terms exists. engaged in initial EV. they X it traditional truck elaborate body is it as the start and the Lion But line It’s build nation, when is buy ICE building around they to turn get very body looking isn’t something They are getting that with

this then the is platform. truck of that an is more that for Body working for how exactly help it of So us in works. of and be getting will that that it one think body Lion manual we be adoption EV a accelerate dictating think, will that, through approach see this I from And integrated of the push integration is things bodies Truck company will integration the I key us the instead the

the this is we’re answer of interested due our question, going in other in opportunity that to something absolutely, not that extent something out – other business, for back of part in can course. areas overpaying exist the initial the that, to build So we but your is will of in interest sectors, just

into. to having into up the us game sustain multiple a caused price would have – deal, and build you in away whether on be and is terms the GreenPower always buy to will, cost – gets in very you has right that it go both build it’s hasn’t of if this sides, particular not to cost effective, you of terms it’s but a question of So or through a us this to get you

Greg Lewis

And then... Great.

Brendan Riley

can we an a – are a just Greg, give anecdotal up example Truck working here with of on first delivering Lion the I that product Body.

people of have to to they high anything fresh have it So a which people and the that’s you attractive our probably voltage. at low that space world, know across stuff, ship keeping built refrigerated with country, delivery a and box use the it’s space, voltage. companies vehicles. to That’s cool. when – refrigerators, well, have Traditionally, combustion want case, trucks, In use the units, on vehicle our when they and ubiquitous refrigerated is fuel high with those in you cold internal vehicles our across an unit, storage, the voltage food people run actually, would requires worked refrigerated the what the usually back distribute

that long-term. can own just It it. are the of of means of even types the product vehicle it, lower in the product able of cost high-voltage will just range into this industry. owning and integrated some electric we the market, what means to means generation truck out the think bring products. to company this you a longer by trucks. body specifically cost We very And is of hopefully, regional a been Greg, manufacturing body lower actually components This it we we’re move it very doing efficiency small develop with so truck we’ve know, – goes like addressable tailored new that you of a the still companies can other cost means developments vehicle country. XX%. is refrigeration body now is business. increasing the throughout operating So there options. It’s do unit, the other intend It’s lower of about other This addition of Those not instead an of use in This that. a to when of that you on though this continued

Greg Lewis

something just Lion is planned third-party be primarily only? up is customers now with had And Lion provider now where obviously, to GreenPower more or vehicles beyond I following for guess, going GreenPower. this other be that Does to then on to that, GreenPower companies

Brendan Riley

as the has we intend the there enough And No, capacity Body customers. Truck is them keep customers Lion continuing also of the to take legacy to satisfying continue care in to past.

Fraser Atkinson

that third on was And basis, is a in majority very so of their party. little generated historically their a to from GreenPower sale. related revenue historical as numbers the There

to going incremental. We’re be

Greg Lewis

fiscal trajectory where us. Is deliveries. I inventory Okay. a bus kind just the as a – any heading of I around about the ramp we more mean, and there of front guess, way the year into peaking it picking before clearly, your is I we kind for of guess, of capital, about in And are we in think on in at school or throughout season build for me, kind in way Mike, and basis, of then then we’re be kind winter? kind up, one like then about think a inventory Is for year-end and of the i.e., should in that we’re moving heading think of lower the growth ebb to least to flow thinking about working the seasonal a

So it’s keep of kind going to higher? building just

Fraser Atkinson

cycle we start this, of have see the Virginia, have throughput. I I’ll that can but on biggest we we over the total won’t an year, as West we’re which that impact time Michael, in have course think the what is that immediate our the So, that will a cutting doing in next And significant half. impact, impact

biggest cycle can question. the our we turn that increase X impact, production into inventory and a response to So if what we X can in And that’s that’s take faster it production. to to our months was that accelerates X months, X the

ultimately, of we’re that on is time with couple Workhorse will over the inventory to BEAST will much to doing faster years better production the and increasing better Nano Chassis. goods sold deal, the and relation and which the next lower of or BEAST level inventory get in cost to the the on Cab what turn and So a that Likewise, get us number. allow reducing initially

Michael Sieffert

Further you question, significant over core what next terms that steady right echo where add more a expect see I in going is of couple about. we’re the seeing of growth that one rapid are we the we the to when over seasonality Fraser’s lot at a certain state think seasonality terms business question seasonality, think categories is demand. would the don’t And are now to that just thing in Yes, would given that you’re be something I I would of spoke we I seeing we your that. see see of just in would years,

goods. finished of depletion rapid fairly seeing We’re

the going see think And ramp so going sold And turns. to you goods quicker as but – Fraser’s I rev yes, to you are see or not same to of inventory sales. cost as are point, overall, at definitely,

Greg Lewis

a time have nice to great much hear Thank the very it, weekend. guys. and Okay, for you

Fraser Atkinson

Thanks, Greg.

Operator

Steve question from with Emerson next come Investment Group. Please will ahead. The Emerson go

Steve Emerson

inventory goods following do and this appropriate, up normalize is mentioned ratio low-cost you’re seeking then availability and financing inventory you deliveries available. think of hard revs, a kind question. improves Fraser, as is lending? ‘XX much industry would traditional or say, imagine you ‘XX, should I finished on of corollary, Greg’s end you let’s Well, pretty seeking of component What inventory asset of How to are as and end be

Fraser Atkinson

then. start I’ll Michael,

we’re of and the – we we that on cash hit and positive have till and we not is guidance other supply issues things flow, position I – chain is future So flow, issued think all cash we financial the given answer getting because our into the gave numbers but Greg without sold really last we’re of impacted goods years, the at inventory probably really deliveries ratios good hard until battled give the is us to couple existing point, to does cost over it’s that in come a relation call. by – the been hard that’s it But customers. repeat to

been existing the we’ve holding it’s whether workhorse, or bus, for which it’s school So a whether inventory the vouchers bus sector. school

bus last out I or were part to programs to with so year, going mean what can And quick talking often I bus I aside this some school when set of early school with that, that take with saying, looking Brendan, the, they the the a if on going that customers, had Fed. am Michael We had are win. were So, aside is, year at Joe for money the fund to well, and we come in California. beds the late

programs are are those Now open. not approved. But they

and tranche waiting EPA we that the can they operator move are or relative fleet secure, that the now out infrastructure we school their So, either will a putting district. are specifically at the fall, next a what off either deals be program in California we this approval to letters for quickly or get to in place

the of those have we so And a deliveries. early for initial number inventory

the to will gate, Workhorse. March and are we of the with California, the team inventory supply change summer out between on which to didn’t building and sold process as end announced be of with and were delivered have get on sign in And of thing right holding that, up help Brendan deal working in EPA and some Workhorse. of and at team inventory. aspects will end We our Brendan push fall. believe are so deal, chain this February, the work the goods the the we working just the that cost same And dynamic been going in I up. securing this and the early the

the is this So, are week of this about that things is was in first that month. I presentation part the deliveries. that is we Brendan occurring this showing a deliveries organizing of the know that talked of those that number he relief for

exciting of reflected are of months, So, the those for culmination it’s but in sort an not inventory. pretty us of that just quarters that all work

goods a for in leading our deliveries with been see Workhorse mix and So, us of take to that and you between waiting to inventory better folks cost programs advantage going we liquidating the were simply of holding have and inventory rightsizing have our for effect, sold. are we the the inventory

on that’s could question. the of the I So, best part give without getting probably Steve, explanation you, into ratios, that

Steve Emerson

Okay.

than normal me million million year of One further. when million think little days a to inventory $XX totally you $XX going million year, analyst ‘XX me, $XX you absurd revenue $XX estimated million no $XX and inventory from inventory is or manufacturing, out to which absurd inventory March then million. again, XX sounds revenues, for is the take an following which, me more of in versus Let to $XX the in using

all and are question makes financing, a or any the you again, that that financial better it’s color much appropriate difference seeking? So, how believe you do inventory viability on of

Fraser Atkinson

initial getting the details Well, that the $XX is illustrative $XX all. I numbers quarter. what just X cost and I the said suggests of think the we September simple understood Michael and the make that but in if more a can is a for you million those the are this relate that XX, subsequent the the Workhorse, we with – said get quarters of into sales the quarter, it, quarter we years. have in X,XXX if purposes, now what have the said But on December of into sold ramp there at is call deliveries like are seven That goods where inventory, quarters no we is that $XX the a by does which makes to into is of XXX sense XXX divided million is order and than of that right math million

So, a fall sort than you buses this with similar along this different various that ramp, rate some with and have a per funding these the in factor outlined. summer for programs have along what school run you that increasing that of then type vouchers. is quarter, you just on totally layer deliveries initial That’s

Michael Sieffert

Yes.

detail, not premature. would financing the non-bank what is echo other calls as we say to that we groups, said. this of well quickly, to it’s said Those just specifics. would have are have when we And in prior I questions in regards this to as But banks in we going different point, at which Sieffert. very speak number this am certainly, be speak Fraser market. point, would Michael just And we a to with Steve, be what at financing, to are traditional I more that this happy something able discuss can on discussions parties. on we to your So, and to

Operator

will from [ph] next come Please with Research. ahead. question The American go John Hope

Unidentified Analyst

buses year $XXX of million Good a morning XXX,XXX a the we from capacity excess be gentlemen. year a now? that revenues in of in revenues. seeing or Fraser Could year, manufacturing XXX that’s and mentioned years million in $XXX X

Fraser Atkinson

and only the John. that – A in the D. way would to like is the would need That’s correction framed the make you I you – that, blend have I That’s with

MSRP then reasonable on the D mix any if is Mike this XXX. at on that Brendan our you Bs is period or to a over under and took is But look our As in number given BEAST if Type Nano So, average, I have and fairly is and a apply. of way number XXX,XXX XXX that you

of $XXX of revenue terms times on next end target basis, XXX year in the that annum. our So, an million per XXX,XXX by be of annualized would

in other – and us. school on on that we of business any have just front So, absolutely not buses,

Unidentified Analyst

will of your to to be supply new steel is Governor Virginia West West And help of steel suppliers. factory, Justice there for state-of-the-art incentive line? such Virginia announced you a GreenPower with use factories going an

Fraser Atkinson

there our you go Well, myself I where are should us, in the on we across U.S. World some – big which next of mean these are facilities various some The because car, are oh, Brendan we stamp, almost either there. from War ammunition the dried with in we the are trip or all services. like, by the risk is II, they manufacture street for

get have are there our facilities that on we once there and we we built established eye and there, several once some So, big get is up.

going decision a there, more state. to our DC a Governor with with children. it’s parties, did event, that just super nod Justice’s help both to time to of we of so parties into really get the us. Manchin’s from have just us who that Joe aisle a that but we brought back somebody resonates both event is they helping there, school has, When many we comments, including and Every in have a different set Senator Capital’s everyone Going were which are partnership up, reaffirms great facility that to helpful importantly, to it not in give particular, sides an office office the

of big push he the really to are he of what we is sees a the need So, fan the business industry doing governor, are we in. getting kind and back and to that

Brendan Riley

customers currently that that our school We the we all of building there West Virginia. is in aluminum our for Constellium sells, school of And use a Constellium. in of the Yes. of And manufacturers, buses. facility aluminum bodies use in John, are Constellium we – buses our the

be already West leveraging going So, are Virginia is yes, the answer to some we manufacturing.

Unidentified Analyst

Can transit you infrastructure have Wagon about your them? have India? for for any they the to Jupiter a gotten contract comment system. just please significant Jupiter relationship mass comments that Do new agreement you the in with gentlemen announced

Fraser Atkinson

the the initial Well, – [indiscernible] other to speak one I I make getting we are their drive demo. actively right-hand very to involved market will in Brendan can mean – and our

to Indian let I that. So, will Brendan on they add market. the the went thing public speak that just But other to is

profile. their increased really they So,

market along when move just to have is them relation Chassis. their originally And and new so entered in capital with into you forward strategy our what referenced a we Star with all Cab right-hand relationship EV to

Brendan Riley

Yes. And the hit head. on Fraser nail really the just

for vehicle We update information in first the right soon. through the an the are that We now. finalizing going specifications, the demonstrate. are and still that to setting working have I on build market up expect the market out just the to demonstrations vehicles, don’t prototypes have

Unidentified Analyst

we have on Forest Do deal? update an the River

Brendan Riley

But Cab is the completed purchased Chassis The complete They an Forest see River and will right chassis. our that body develop when with and a body deal on Forest to not is working River Forest GreenPower goes. new we integration – entire has new onto fully that integration have for now, we on, goes five are the cab of still integrating. validation vehicles. where and our bus had of testing we They River

So, you had update soon as that is at as where going. think hoped, I least have relationship I that has is we than on longer visibility will taken I but more

Fraser Atkinson

Truck just that an our not throw of It existing EV Body can’t way. body it it on and that highlights – platform. I Lion just doesn’t But you an think acquisition it’s take work

It of take the start put work. body our on have and hard doesn’t learned we seat. thought, well, just they they And kind the way will graph so it because

we a took a do integration. They and got project. the back abandon didn’t they so And said, proper to have step okay,

throughout team that them Our with involved has process. been

we taken have approach that have and the we but steps tell done have got market done. – when will the the there when will be five five they what next got So that the they

Unidentified Analyst

in GreenPower like and institutions in in into is the the CCs statement. reach And my as manufacturing being bicoastal marketplace also being plants able you last as congratulate on to West question out fundamentals and is well your a people recognizing Portugal to in want I the question to increase increasing? the diversify institutional line and interest are stock Workhorse. product even your is My offer And your the in last is, they fundamentals? Virginia

Fraser Atkinson

that to you coming the what about and that manufacturing, as Back comment year. comment that in have facility dollars, months deliveries yes, also recognize that your the conversations. and doing are seen in coming we And is shows fact attending of services to don’t a different the uptick doing significant renewed shareholders. last regard But conferences. can the is quarterly what spend build from our in non-deal if manufacturing do, road model various web the No, we time-to-time, day, your they the it. view transition web hundreds But seen we a people of the a a what end from interest have a that’s have deal, of various at and we appreciate – millions we company see and have through is going couple the are a we from I of in very our utilizing

that of from the come a equity is to – big going Your market. chunk

could that a Brendan a thing else too. of But we is build do of somewhere units. So, I, can lot same number we and looking a key decent that spend factory-ready the for time facility

we the State which buses. Coast south are of literally distribution. Virginia East excellence school York, is school State us nation. New in this XXX,XXX for of an XX,XXX center buses has what It So, of – the out of gives almost the creates West The a of

So, of the that the all we to the America. years sort in building a year be – those number but ultimately, location a And do also things or can have road, elsewhere. duplicated due North approach can same and the also, chosen down that course, there, outside speak in we X how partnership of

Unidentified Analyst

your to am in Fraser range I one me, asked and battery put lines words to distance replace could to Fraser up believe on last I want believe but question regards best it market. excuse not just mouth, that’s in you trying – something battery have Are find quality And believe range I I where I battery for you. the set the said you question being that longer along best vehicles was the in a in with battery. the XXXX, to was of those them? we your

Fraser Atkinson

they approach will that on and start lithium-ion LFP, a when ferrous Well, with their I is which traditionally expand has a Tesla, structure phosphate. hit Coincidentally, what this, X. chemistry their used we lithium they China, Brendan do, was batteries can use Model the that market approach did X. LFP their Model and upside with went determined for in their their They they with cost down to

a frankly, of that But have need. talk the we people, talk turn, amongst our just It’s taken Brendan gives So, every with the still charge, in the it’s it than cycles great chemistries. we a gives discharge I, always charging curve other and little some we stable. heavier It group. happy underlying with the and I chemistry. approach to – time we are

make sure XXX the of buy make into are into is, go terms our up Star does cells lot EV two hours to who of go those that we us, manufacture key – our that a for In it’s that packs kilowatt that platform.

the And voltage. more the as going and they so spec is they are one same, two the going be are and be reliable in of same. more to critical are of or off it’s to reliable to discharge more have the terms opposed cells The that out are they having absolutely that charging the the

Now all learned was deployments won’t problem spec consistency Brendan – that our off in great back think one particular one. their just their in that I in in And job the exploded you there the one a battery numbers we you managing cost so have you encountered not to a of work is are that team to sold done that supply from two on some our competitors members, are GP. have goods our see experience battery name as revenue different install packs. that side equal our or some the of of but cell on generate And and I able we that they cells is that the that with it and their can works which have of and a of or determine day chain terms you own with they hasn’t just Brendan have where cost

stick reliable into goes truism that cell consistent with we we having each lot that a is that to a battery bought. it’s is decision, the cell that there – that the but So, is really highly

Brendan Riley

Yes. you And validation. to vehicle has any And reliably. can reliability make and It’s have the talk very we a in and all But do to range efficiently involved we space, the day right. before what’s really factor, you the is charge commercial Fraser can discharge exactly John, have well, – changes long. about working to

higher not capacity, density have higher not a batteries. is because yet we the we energy battery which where validating decision to we higher validated have made density and change are we comfortable. So, point it are power But that to

Just XXX,XXX losing an of you have to miles that X% battery already pushing example, are than we initial give EV Stars less capacity. with

every that EV And from are money the run a it’s reliability us add, the could our we to have want a is field to We do. day. make so for quick and are system a all something to lot follow that as make just can is, getting in the dragon we going and in we The we factor that and any charger the space. perspective, don’t on pack. up those pop range range that answer that your battery longer they have they that somebody. take in call and driving in to very most. really for where a to form in a cost But possibility we have to used well compelling that either my a changes. different yes, question, and standpoint, chase pack platform or management the and And it from a So, making reliably, We are sure safely Stars is want old are basically, customers, do

Fraser Atkinson

Yes.

market, the has or to to of is that you it pounds question, XX,XXX that Just weight volume – X,XXX but John, means just translating Class the our the of is platform application ask extend IV from – battery and discussion a the didn’t classes, EV could world address kilos. and it it this what Star actual real addresses that but other growth GVWR

the for to and as I down Star So, that’s Chassis on sort EV it of that body X,XXX your top here gives is that a platform us as before you if – with. level. it put put The we weight, gives anything on far Cab number pounds work curve

build our off, put don’t they of you scratch more space, in are of that Nano built all that’s very for EXXX school lightweight, a with competing competitors, chassis a aluminum skateboard X,XXX our a from And they our trade optimizes so a that A have that a is the strength, or and of is clean it’s is bus batteries buying BEAST. safer. or that from the cases, many Type sort less design it’s stuff. that most on platform that with in or an Ford It’s body it’s example, competitors got frame, better We our sheet

with we in door the on a the where end curbside growth We that do with worry to have passengers be our don’t different weight that. are that can about we seating limiting the that to still all BEAST gives of so can within able at offer. configurations. lift number and Nano volume with maximum body capacity We a a a have that day, we rear you, of wheelchair And put

combination platform to with of the the payroll. we able So, can combination as give well is deliver Star the range that’s are as that we EV the

Unidentified Analyst

Well, it speaking Altoona bus I when maybe X or does quality, the was points were higher rating it on bus Altoona of higher than years years, competitors. your from GreenPower their been X points Altoona I ago And was rating. have highest-rated believe rated all best I believe XX anybody their though are X it’s you believe than years X competitor. higher had closest you GP? ago, Even a your

Fraser Atkinson

I know… haven’t looked recently. I But

Brendan Riley

that still for medium I believe you John. regularly. Thank type. or published, check we score any bus the are of so highest far any that of they heavy-duty I

Unidentified Analyst

both. Thanks Well.

the business company so don’t think and in picture agencies, and seem model. they breadth these your have it’s dug your other much entire at going on rating your I see you when look of depth I and to interesting

your questions. Thank appreciate Congratulations you time fundamentals gentlemen. I and all so weekend. my And a great increase in answering have your for you on guys

Fraser Atkinson

on who no note I we questions, And stay we we had other listened tuned. great can say shortly. our in But have think because appreciate everybody you, is which collectively, hard well And Thank I that call. stop participated as as John. we a

number the school bus and We our stakeholders can’t have we terms those a various of the in deliveries initial be as see activities – wait to well. successes on updating

So, once shareholders appreciate and again, really stakeholder support. our we

Brendan Riley

everyone. Thanks

Michael Sieffert

Thank you.

Operator

today’s concluded. now Thank is attending you presentation. conference The for

may You now disconnect.

GreenPower Motor (GP) 8 Jul 222022 Q4 Earnings call transcript