ZEV - Earnings call transcript Q2 2021 | Lightning eMotors, Inc.

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Operator

Good afternoon and welcome to Lightening eMotors Second Quarter 2021 Earnings Conference Call. Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Nicholas Bettis, Director of Marketing and Sales Operations for Lightning eMotors. Thank you.

You may begin.

Nicholas Bettis

thank for and us operator you, you, joining everyone today. Thank Co-Founder call Sethi; Tim Covington. today the and and are Teresa Kash Hosting Officer, Lightening's CEO, Revenue Reeser; CFO, Chief earnings issued reference will second Lightning which today. call, this and presentation, of quarter Ahead XXXX press release we its lightningemotors.com. be at on our found can Investor Relations These of section the website On this assumptions, making are to subject be which uncertainties. on based call, statements management risks will and current and expectations incorrect differ could this our from our of if today's statements in of are in conference our during materially forward-looking key latest filings any earnings assumptions Exchange and reports Actual Securities Commission. because or release, discussed factors and results news the with call our These at lighteningemotors.com. documents on can be website found not do any update undertake any We to duty forward-looking statements. non-GAAP to financial Today's measures. presentation includes also references

to With the XXXX in turn refer let should historical Company's definitional and contained measures. information press it earnings to measures reconciliations the financial that, quarter non-GAAP comparable information of for release Tim. me over the second to You

Tim Reeser

very much, Thank everyone. Nick afternoon you and good

So earlier today's Investor our be of slides the section Relations to to website were referring posted afternoon. that the presentation, this we will

our worldwide Becoming company strategy provided of an to was our market. addressable transaction. public to As like an capacity important with Lightning also business start for a I execute GigCapitalX May, shareholders and of since the with our would earnings like Lightening's contributions $XX us transaction for address the employees capital and success. thanking thank closing I combination expand of billion for towards to the the needed in total completion by and their first this the patience support is estimated on the to call would milestone the to

Slide with X Now agenda. to turning today's

its by the opportunities. Lighting not market the investors and giving company familiar off for First, introduction brief of a start story, with

then on are us and vision. the to players I we execute plan Second, highlight our how the adapting from facing what differentiates industry and other challenges industry will

highlights River Forest our on financial our pipeline. quarter foundational up, backlog will and it Kash and the agreement Ramping outlook. our financial update and provide Third, discuss from provide second an will XXXX Teresa

We will then hold question-and-answer a session.

X, vehicles Today, XXXX to availability commercial electric full the urban Lightening Slide address medium-duty available specialty of and to Class the eMotors of electric ambulances, buses, shuttle to trucks and range cell coaches. hybrid we is the in electric fuel three fleets. Moving and seven lack of Lightning manufacturer to motor vehicles market including only battery utility in founded

modular hardware and us that solution. a built highly cost-effective have and segmented a customized market architecture with software allows We serve this to

our to what Slide we us vehicle X, solutions electric today separates in-the-end for from Turning deliver fleets. peers purpose-built, is that commercial

applications. vehicles, vocational as full well sell are Ford, our re-power with and who customers. certified the volumes powertrain a vehicle our install OEM's Historically, companies them to we addition produced and partners General began at commercial process differentiation are as and Isuzu for Hino, systems which or ABC chassis, with like low In to Motors high

and have announced each the shortage fuel cab electric our and duty the branded vehicle, battery powertrain chassis path with Lighting addressing we customer's release, chassis route requirements. chassis We to industry earnings customized out own we strip electric in As systems, build products. then a cell for and

have industry-leading were fit technology. and not years analytics, software manufacturing. serves. combustion we engineering developing software the a proprietary of internal hardware every manufacturing with vehicle the legacy not this specialized previously last OEM's the We've we is level Next, and high or and and software customization make. products of data is customize We our platform design markets well high to and and not something spent process the vehicle, vehicle requires value historically This of and for software performed and that necessary eight that both vocational Lightening suited that each for that and integrate that required hardware refining on requirements skills

our and customers or fleets. key fleet data. compliance and about vehicles locational downtime key for Further, efficiency and for our reduce attributes LCFS, data intelligence programs and well receive as teams software to Our subsidy their time, their as proprietary helping service prevent and CARB enabling in actionable other includes grant as HVIP, real safety such reporting

a LCFS operators vehicle very monetization, businesses their are cases have to these capabilities Our charging III requirements. the It's often important high that permitting, provides software different and monthly commodity complement a unique produced. specialized as is customers product, every installation, II with solutions to from viewed Level by use charge fleets and that charging to a support stream. purchase work have rate customers, Chargers, fee needs of appreciate full evidenced their we offers these and integration commercial Lightning vehicle margin to revenue charging on Level very and as note charging public solutions recurring including for we XXX% attach services, customers software a suite We which although to tailor

Finally, we wrap customer with all these solutions financing. together

as extensive financing electric financing vocational due to vehicles TCO fleet combustion available with recognize legacy fleets, limited data options vehicle We bundling many internal that monthly future enables for basis. customers the there a reliability see on charging values. and for Although of single savings the make residual on and enabler financing solution sale a use with to customers an providing and vehicle end-to-end to is them limited the the

of and do moats. and are at building X. underscore technology high enabled demanded model our that also our the trucks not volumes high Now is segment. the to medium-duty customization for is like to It supports manufacturing of by competitive Ford provides our Companies and customers, business have a Slide level and required GM by important what one

which what say urban important efforts niche I heard are deployed market for we Turning being to many to recently people been to with public. having and We EV it's hey despite a in we last a the say, currently do, Slide our XX, EV have want deployed and vehicles, the space, it's which commercial lot position to our gone focus three years. players on zero-emission is, differentiate of ourselves, highlight crowded medium-duty

of the we no one you in fact, is One vehicles else that chart. else be in build. build I can is like see no wants electric And this to one building to say and things

While major have by building a production these startups total not lightening Class are between targeted III large and segments addressable too VIII market, for Class are low-customization most and highly-automated, lines. individual small segments generally OEM's

of overview supply XX. an Slides partners and chain recent developments to and chain moving Now XX on supply our

created chain our While we are experiencing have a temporary issues business. for growing product demand, supply headwinds strong and

component to XX able chain systems. supply Although constructions several mitigate our were QX sell deliveries, revenue and was constrained other and drivetrain powertrain vehicles we by

While is But any chain it and work chain future for idly we note sales the important the chain and disruptions aren't we are remain by more. due pushed being additional through to of week or in further to waiting revenue to have Major not working shutting supply delays. the to to shortages. themselves chassis down is technical problems for all supply that chassis out. sitting validation lost battery quarters, by we these have July including suppliers, disruptions OEM's surprised a remedy industry the supply the commercial

technical working believe supply chain and mitigate world's battery We addressing lighting our of of industry our battery with largest are strip that Further, the our XXXX in first on design negotiations are We we one with suppliers work cab in building purpose beyond. the chassis, chassis shortage constraints chassis branded not chip and and limited. worldwide that products are the our validation our of integration suppliers. stages final with with the may own

While XXXX has been a challenging year.

supply chain are We growth vehicle years with will taking the thrilled help ahead. allow which address issues, and we believe outlook us fulfill and demand to drive are substantial in demand action customer and revenue the the sales to

running flex support and installing investment, capacity with are Loveland XXXX. also want XX. tooling we long lead CapEx is online are vehicles plans. significant per and to ago unique flexible able to to manufacturing build able our campus required the and I complete Slide up capacity our feet, we automation X,XXX for nine approach to grow manufacturing only and powertrain to build complete the capacity year. and to investments. months very an don't XXX,XXX we capital-efficient heavy agile position light at vehicles procuring many Colorado systems Lightning manufacturing of added now and systems this mention square and CapEx to tooling additional our with X,XXX powertrain our We due and that today lines to fact the and briefly bodies to quickly facilities in current the are time and of having expand and Moving interiors, eliminating capacities Not

I'll turn in powertrain overview We one And potential million Kash to the complete provide expansion the to vehicles our now order XXXX. customer sales footage square needed have backlog wins first to of a support campus pipeline. by and recent XX,XXX additional systems and rights at an to on

Kash Sethi

begin XX. Thanks, on Tim. Slide will I

space. all half services River the expects in a very brands experience, charging their year market to up units which Under IV are Eldorado is over build A Global, Forest Forest last excited strategic has bus bus Forest provide of agreement, factory-installed week is and per with of we to America's electric agreement game next we decades over have bus River a like and River, and leverage in shuttle shuttle popular Berkshire to brand including position of companies family up this X,XXX a shuttle potential selling $XXX largest StarCraft, North River Champion this to Lighting subsidiary bus relationships space. dominant powertrains Hathaway First, shuttle million, and years. four as and a and Forest sign VI from offering value will changer a fully-electric products to in XX,XXX to Class the partnership manufacturer reputation foundational

recharge River of solutions. Lightening's buses offered miles and with seating will offer using charging products shuttle dealers the ranges comprehensive a XX break U.S. and supporting infrastructure electric XXX on lunch services a the configurations DC Forest various related River customers stooge a with Canada. capability Lighting to across Forest being over fast-charging and Energy to length to from single are and charge

we instead of Lastly, available making we already first and for years. look year. plans of in to network won't the begun to leading Manufacturing buses electric end has bus the future. industry emissions expect are batch forward to that the with be dealerships and to market new Forest shuttle a vehicles be this and happy case for all to the has be contract today dealer agreement towards in only their largest building products working deliver this of in the the we by zero River electric potential This

Slide Now, turn discuss to would backlog to to our XX like and I pipeline.

the XX, XXX% up that from approximately units, all backlog the prior all-electric systems systems in charging and backlog dollars, related in million demand electric trucks products buses, X,XXX year robust $XX and reflects that year period. for is $XXX XXXX, in our and June all To of of telematics, other infrastructure powertrain The and included versus Lighting's services, million prior increase commercial quantify orders powertrain electric vehicles, accessories. analytics order As period. systems charging

represents end XXXX. QX, sales since growth Our the second at $X.X of quarter more pipeline than XXX% was billion, the which

engaged see team with sales and pipeline partnerships and wider our the space and I provide level technology pipeline. We and programs market the broad We verticals positioned plan. just continue and and deals at believe vehicle more the including outlook. the in increasing unlock in due field with market to Our in upside works turn variety continue audience, the I this Biden now in new pilot our state electrification. that a favorable support commercial that, infrastructure for over out news an country, to will that we XXXX is these federal of update now Lighting's result will of And diversified fleet as than commercial expect potential programs in several expanding vehicle us backlog come for across validating new the financial are to Teresa segment. to it successful growth across on funding XXX deployments that the new available a programs significant capitalize wide nicely to with in results on

Teresa Covington

was sold Lightening quarter, and our ago in to by powertrain for XX, sold on year powertrain Kash. Cost compared period. second the by $X.X to goods our compared the in the period, I on you, an Slide results over $X nine vehicles million, improved during unit million the increased third which vehicles in prior-year mix. During prior-year of quarter generated the second million revenues XX provide product of XXX% will commentary the in quarter, quarter systems Beginning an and revenues, sales primarily vehicle now to we quarter second partially outlook. due by driven period, system offset one followed second increase $X.X increase XXX% some Thank from

ramp we production. As

was expenses fixed improve to supply The year well support $X the as year million leverage enhance to terms increased in-house in was processes, in as $X.X prior combination adjusted period. testing second compared the professional million generate We quarter product loss prior-year $XXX,XXX and from efficiency. we vehicle prior-year and operating and $X.X labor, the compared compared development the by spending cost prior operating million, the $XX.X advance compared benefit the SG&A to Operating was The operating and planned $XX million on design in new $XXX,XXX million period. leverage period, million our cost second period. production platforms, in growing $X.X operational of expect in engineering driven The higher in compared to of capabilities. in were increase driven refine and volume, quarter sales, improve to to the the related on in million to by with engineering $XX.X as second our was head production. business non-recurring backlog prior year and our period. million loss the $X.X million count expense was to development $X.X quarter increased Research our battery

Turning recall balance the received closing million approximately our net Lightening $XXX combination business upon in to of May, in proceeds. sheet,

million. equivalents June we XX, of cash As of XXXX, and have cash $XXX

As lower many have capital-efficient peers. Tim a manufacturing mentioned to our needs process, relative earlier, to leading capital of we

outstanding, $XX and to $XX employee We of note million. to approximately Our converted the were quarter all with XX.X If today, have be diluted outstanding. range XX.X approximately stock capital in spending shares shares million ended and the options not outstanding payable. is would million warrants we full-year expected the counting XXXX million convertible

COVID XXXX. outlook. Moving for our related and we unexpected to Primarily are production of because prior disruptions withdrawing our delays, chassis guidance

it's full-year orders in no that out at quarters. have note quarter been meet longer no we orders to this to our important providing only those expect Although expect we and time, the one for fulfill guidance guidance and canceled, future to

Lightning As Tim well the chain battery mitigate drivetrain securing noted the to and of new earlier, new we eChassis. development as steps supply through are suppliers the taking as issues

to work, campus for Although shuttle delays out our supply to are has chain been impact is due and seeing pushed resulting in delta in the business, the return resurgence we outs push primary variant buses. to which order and also orders COVID coach

$XX in of Slide be system $X adjusted $XX our $XX.X to of million can million the to the want Now, adjusted to range we on Please range outlook be upon to the and the be range say $XX.X in loss and currently operating million, revenue operating operating to million expect found turn XX. of to loss be range loss $X third in be a to words XX. operating reconciliation A loss for the million of million. to to GAAP in to quarter. units, about I few to Based of powertrain XX Slide conditions, current sales the market vehicle XX

will closing to over for remarks. back turn it Now, Tim I

Tim Reeser

Teresa. you, Thank

Before like Number of we about are I would so to visible customer one, and growing wrap have have the excited strong up, opportunities I summarize why demand ahead we we both repeat us. that what have in growing we into and both orders. in contracted pipeline new contracted from we and to in what our beginning Orders now translate also have from is sales revenue it

commercial our you and and the that capacity foundational Biden Lightning Number will excellence rapidly federal in of be Thank its significant potential competitors in operational new for believe a total zero today. few two, on allow addition, falling state time infrastructure in in we River transition plans, and progress go-to-market for enhance ahead. profitability, areas Three, XXXX are we focused large your on ownership the niche prove long-term operates. markets agreement including tailwinds corporate on year company and to has In commercial customization plan, it with And years multistage a terms factors chain, in to where which start significant multiple key emissions has EV's, our diversifying operating ahead. our the provide mandates cost of supply the making the Forest requiring meaningful on finally, significant focusing years and will be while head regulations believe we approaches, expansion working margins.

line we'll questions. Now for open up the

Operator

first Colin question [Operator from is Instructions] Our Please with Rusch proceed. Oppenheimer.

Colin Rusch

much so Thanks guys.

As you're or close it have advantage you looking the obviously big drivability and that at you to to you're those on speak important one, how was elements being and that is your and of River customer of could able the conversations Forest vehicles third the and those generation guys customers. vehicles your a

Tim Reeser

Great to have having you ago. obviously some yourself, one unique Colin. you, you Thank long and again, driven too from hear context not

the and the think the customers the So, appreciate around lot is impact the cost the have today of the ownership. the smoother. is reliability, question weight obviously about more in up total vehicles very space probably would of fleet and of believing, a concerned or vehicle people But I important on that Obviously, the most put say one than one of see driving statements why they money is lot number space fact concern, the we that where you time even driven thought customers are the electric and has, the it. quieter that, in a vehicle reason seen vehicle, is and are

have that faith have to believe we have We vehicle. reliable have who and customers

well, we've when questions, opportunity used of in the with these now trust process those seen call out with been done understand gives building And we that years, when folks to customers relationship like there Forest have that seeing and part through and orders know for well think we've get and So we're been certainly had all with few we've that, others. of the that process and maturing the a place customers orders repeat have vehicles are three have significant us to through repeat of River validation to that fact that a DHL the they the leg it, faith up. is customers to the service vehicles that we've to and what building that announced I we that, we've fact had and those respond we that build

already reliability so, certainly to in that we the have validates customers is know key And we point place. that it think a that I that service how and to network have

Colin Rusch

customers are just leverage super with having as procure to look the again understand that, to volumes actually from sheet, to which manage of relatively components working the manage much of balance issues, the as can And orders at in. deposits having supply into being component to levers going able putting That's some function some is putting helpful. what as you you securing it's effective chain deposits guys branding as we're need trying something that in - down, are around want volumes most dynamics that then, supply secure terms you're from might finding even higher perspective effectively, those just - purchasing a so things, down, really a be go you to not that get modest much your you

Tim Reeser

us back leg reputation standpoint. think are point is I is we of we up point is from thing an think a the - other relevant. engineering to your that finding now leverage Yes, But one then Colin, to is I giving and the one I'll come there and have things

launch if somebody the the hardware can standpoint doesn't any with supplier and to product are to prowess correctly, are going one in find good. product their ensure the that with use the of experience suppliers one they with of products. service placing or going correctly correctly, yourself of of, think we the we have their risk is you our the that product of lot engineering the imagine of these to make to of has everybody to you And in a integrate correctly, software we terms look at who in a their integrate things successful perceive product companies field past, risk, So

is them. our we're we've these that the a suppliers that engineering integrated being the thing a able balance the to really finding very But certainly of the reputation suppliers confidence place in software going have up in to what of recently, we so the going making have us being these the giving understand investments the Then anchor the product we're second that demand is fact advantage the reliable and is terms they while, given can we had prewritten use kind customer right many and only quite to obviously, really and third of expected three to take out So of indeed, is already company, a forward as we selling the leg that part we to the larger demand yes, now secondly, sheet trust us now, need orders. to count now having quality make last a product know they customers very work, for If point way and who on part the that up. investments our products to and of that in that you we for public we're is ramping of in believe way months,

supply we of supply kind giving of chain going need agreements solid aspects confidence that I all we and moving are chain have forward. to forward our three us we relationships think confidence can in that ensure So the of are kind and things those the build

Colin Rusch

Excellent. Thanks so much.

Operator

Mike with next proceed. DA question Shlisky from Our Davidson. Please is

Mike Shlisky

me you hear Can guys. okay? afternoon good Hi,

Tim Reeser

congrats Mike. hear in a you you and you. your we've marvelous Can person role there DA. you It's new well, while but hear hear on since to from little to Great been at seen from

Mike Shlisky

picked sell is much in Forest Can best itself? give their some you can as and you up deal. there? as I or start large estimate question you, topic what shipping the that $XXX they Forest as is gets there inventory million? to can sense quantities it first how it to to wanted River some forth you before back arrived at us Was how ask Thank some so on the much. River first to

Tim Reeser

do one? want take to you Kash, this

Kash Sethi

absolutely. Yes,

we what They've is electric market said for like So Forest is few have the demand - River we with there space, in years, this so a engaging they a the out been have for understand shuttle lead. buses.

came the committing in of adoption term yes, units getting we and term, down many the long the the be making market higher can determined to the together So by volumes to to cost short attractive drive kind our how need the of total and and what suppliers, ownership customers. price

a is with it came together. them we up So, absolutely number

Mike Shlisky

great. coming a some the also size Okay, of you what have wanted case here, passenger I even to you date vehicle us that and launch it, up might And for ask about details, class product? the that's maybe Is can use if your purpose-built chassis give what of cargo, be,

Tim Reeser

Certainly.

I for with Kelley. while. you I room driving didn't a, been I'm Bill Most been the a the Bill have new has you me, to him, but speak going So who's a project introduce, remarks, of on know has but person in know this earlier

answer let that So Bill I'll question.

Bill Kelley

excited process, of market see to now because prototypes design. simple two year. able and Tim. classes of be vehicles purpose-built see simple quite the this to serve are for divulge that broad manage design very we're chassis end mentioned, a you, ongoing if but the believe the can that this it's And ready there, to our been with not modular some fairly before Tim Thank time We and chassis, and across first particulars should we the that electrification of nature elegant to to our we a - we purpose-built this of we solution, as expanding really very

Mike Shlisky

more quantity in have to your for In you've XX fourth do or it Okay. If for about do that vehicle constraint there throw this just XX of beyond be the this the a got next stuck ability any might I kind while? range, to quarter, you additional level is this can one this quarter, outlook quarter, quarter,

Tim Reeser

So the years is, receive I terminology historically also new orders. think we've most, most been we very and manufactured when used we've have - when has always QX are expect QX the weighted still we we and the been all

in So been making the constraint. usually primarily past. the this is terms that's difficult visibility What case in is year of chassis the QX

that's chassis providers of we've their when several on and to pull deliver chassis. guidance made So we their going guidance back can to until on our date why guidance have the they're QX delivery decision get pulled actually

our partially We build manufacturing have from are vehicles - and fact a to can everything build. build ready will scale, we we in

still the assembly the things lines reductions progressing at automation, in of full on pace. moving those full are at to in in reductions Many labor, be of going So things additional pace. we're still of cost, terms all

guess say. appropriate be manufacturers us thing but due don't balance We give make on or it and yet open on to shortages, are always guidance obviously, provide in happens the to back about I phone, to QX. delivery with and chassis guy COVID on Teresa to but do - financial is So as start chassis that some is concerned but our shutdowns opportunity many the QX I'm hopeful current back in here whether our as up know QX the anybody's will to I'm constrained better would see of what the only the is we'll Mike, that back are able certainly are optimistic factories give having We be that in chip running after and to an we constraints us know than limited will QX chassis. now though, QX. up for pick that more constraints whether what right

Mike Shlisky

it along. I'll Okay, pass much. great, thanks so

Operator

Steven Fox Please proceed. next [Operator Fox from with is Instructions] Advisors. question Our

Steven Fox

be little call a it you over, over will XX and how where to period. have things afternoon. where getting QX, things start you say a the Tim, first, good that can second on XX relieved. these longer can Maybe, happens alleviated bottlenecks we and how months. supply of bit what some significant happens do down give easing I not let's you on see to a Thanks, follow-up. for roadmap us sort maybe you to Thanks you're road constraints better, feel What then say for but just thinking normalize, about

Tim Reeser

to Great time. hear from the well. again for you as Thank Steven. Certainly you

been impacts think So look expect and their shortage chip how those plan we seen next we've partially obviously of alleviate different I different chassis expectations the and or expect to impacted in chips those have told and by have components, start the have they're some year. to either certainly standpoint, some on everybody that meeting providers we starting, QX to they chassis of our for a be going other redesigned out from

then to So to the item what input in and about look we've major of of talked and - into to of the half second had supply we've the eChassis scale that's additional beginning to eChassis We hearing up, in Lightening same the the way. mid our own at kind we're the batteries other XXXX. provide this things in constrained as also same

We or battery battery are in has supply each real of now suppliers our guaranteeing constraints. working their suppliers progress some pulling made and with additional down of

in we right own adding And help and suppliers of things, our new do things, suppliers the and not to adding case XXXX also that them so to in our integrated are right we're and but the product. other suppliers of the doing those this chassis feel improve some working things vertical additional with doing is certainly only the

it the was all get variables, quite we we into second all is and delta out to and into of But obviously could that begin And a better XXXX? going the those much lively. up get it some XXXX, today. that and of seen we and that away about I free was COVID is could I to of not have position. debate going it answer our in all to as QX QX on summer, and my better So then talk our by think certainly certainly well, then put to the don't the kick much know of position again will we QX we've assuming in together, - better XXXX QX in all Is half thought expectation belief back up a variant - during suppliers. will the impact

position in aside, XXXX. all kinds feel about as things much those a well as we of doing doing put us good the So things that, better the suppliers in we our are risks are very

Steven Fox

by of one, a a you on - to on Great, the do e-chassis map, that's can road then need follow-up interesting I scale to you really - what thought us lot. And just helps as it secondly, on remind I I you then sort would be internally wondering be not you. constraints and impacted was the heard chip up and thought just if mentioned it more could Thank specific you I current that that.

Tim Reeser

Yes.

we that it the our chassis I'll today. get of thing answer have we help strip to an necessarily own components in necessarily One many keep different Bill ask buy me we chassis can e-chassis, that. on and straight to one, and today first some of need on the I'll the mind then we second So one some things from in the don't option - don't with in with And designing we when with of have working end, chips that secondly, we're chips need. putting the

a change can't somebody a have it else who we we systems we get of note chassis more transmission, of controller, other own e-chassis. the probably doesn't today, about have the off-the-shelf not it's it So to often simplest whether itself, in want think or important don't an when things versus form some chassis those the we or buying navigation on that options when these things or few overnight. But our from chassis chassis exist

we the and in make in many bottlenecks big have, the with So it's have chassis aspects we bottlenecks secondly, of easier benefit that just a gate, which it frankly don't own few of design those obviously out quite e-chassis. the other can to chassis is of -

So on how as we do ask I'll we sees look bit elaborate of with it to at scale he what that, some maybe a Bill

Bill Kelley

make me Yes, little that have to because very the we with most more the purpose-built many to vocations. the notion we architecture, configuration e-chassis a of aspect freedom is probably the can the specialty friendly different intriguing chassis

very that unique and do I aligned the the their So requirements chassis worked today, lot because interests. nicely, get it we e-chassis have utilize a OEM's we've with the now think and vocational highly be of shape and quite traditional will but opportunity see out vehicles size just we this from business we more

Steven Fox

Thank helpful. that's you. Great,

Operator

question proceed. is Chandra with Securities. next Subash Your Northland from Please

Subash Chandra

Tim. Hi,

couple this, channel Just covered did a on you late, want questions I exists just the any as on so mind, of never to if but apologize, it sales today. jump of

the wasn't assuming a driven out to that much guess, if of saw HVIP with business. which that? half second where is there for the what point the Is for that, has these where of program, going now? has influential then if, tying you least the there Curious that of be leasing we're I accounted how you're offerings business historically updated drive coming I'm the program, program HVIP sales. to that First, HVIP And versus if see the the that new into at quarter first have HVIP chassis, and - type be Forest just new break the to deals chassis. River

Tim Reeser

with hear then of to Certainly, - you month and over to with well. on but real some as Great one two it's first a I you leasing not I'll leasing just sheet. the you. is, were think I'm well, so question, excited I I'll our a it's turn Leasing been chance question, let been bit. the from chat to been, think plan start have since a Kash which with HVIP me start has have excited hear, to the to so quick, here, to the Subash. last or balance our question is

as accounting, that, on obviously by and and balance the many off with do analyst's sheet simplifies we're so point working partially business on full partners to which partners our aspects accounting well. having have the we in working it sheet job and to leasing reason So the that for we of revenue simplifies full the you do can with balance out for business revenue want not

leasing any and business off aren't on So it at we'll we have point, to on our do significant the planning - this books had we not balance sheet.

the partners what we So, we market internally, and on, finance several both some we work in but with how in And customers require. space balance the partners how the need then sheet. going have offerings our off it, at continues, package and also making really we done look do it, we do meantime, on some while customers with already all as have that's different sure for

to recognition, sense. So scale-up's sheet, that it's stages, to these and it the way enter intention make value cost With need keep down so but same our major large compelling of it's deals, is in very revenue the the thought that rid that behavior early some with the off our your there, government I so of we activity like HVIP, therefore the customers things much there, subsidy purchases fairly occurs government get to the that no longer in where the simple odd a balance wired point subsidy from the it come see when a because there line.

let around some that a an I'll HVIP we said, bit obviously, HVIP. Kash time been and how to we've little see industry So quite speak for participant the changing

Kash Sethi

Sure.

couple who out So forward. audience to vehicle were is going came out sorry, come software the different out actually delayed year due have the XXXX-XXXX COVID so really reasons, HVIP supposed ownership offset that with vouchers. a was of acquisition we the in tool the complete to to nice they late secure for and of program. What comfortable HVIP summer and cost, was of but a remapping cost total they fleets doesn't feel this the technology this the incremental year, got used prove background, system into It last it to the can

which that outgrown summer and five, are not XXX. feeling HVIP. is in a want working supply is buying Demand So for it's exciting three funds, technology just or buy field, comfortable has really to XX, the they XX, clear been XX, signal fleets of

is for this is of out available the funds with as the accounted more come million both this that, program HVIP for June August result in good So year's XXXX-XXXX supposed to fall is than that $XXX it. and was rounds. a was more that there demand The news program, which

looking is is across the promising accelerate still state Biden expect level, there business. are at result the HVIP and around only you adoption the lastly, not be up infrastructure And is, plan state there's we programs and programs country administration As at Federal coming that level broadly California. will funding to very speaking, that future, a So but country will much be Forest moving significant popping we're have country. California the volume. Subash, across the being more in and of the provide know, deals like the is There seeing what finalized looks River, just as many up programs of this we the

years. down a coming level As we we few need mentioned, incentives won't where the a prices cost to of in

in lot that happening of So progress a regard.

Subash Chandra

will material of in a Yes, the driver as revenues be HVIP a so, or Just for XQ? the half follow-up, for or a revenues material second was driver it year

Tim Reeser

that to as on well? up want you Kash, follow

Kash Sethi

Yes, absolutely. Yes.

to the We be case. expect that

how takes So down assign some of voucher comes it applications to and the review voucher amounts. to program them new long HVIP

takes that Sometimes couple a of weeks.

couple of Sometimes I a think months.

those are activity. lighted, or and works two So is approved see we whether those got other on to the QX activity what QX again and or QX fast chain based pieces green the obviously how being whether we've then to units those determine in grants system QX becomes piece that look will build are supply how projects the at that got lined and

Subash Chandra

steps got there, A of Okay, got it. couple it.

Okay, thanks guys.

Operator

from Sherif Next El-Sabbahy Bank proceed. with Please is of question America.

Sherif El-Sabbahy

a just everyone. quick had afternoon, good Hi, I question.

What projections. you about seems a ahead slide, is projections, have for like from we'd capacity production, Looking on at of unit your which annual the it on X,XXX be Then old expected bit pull -of-the-day the gross schedule end positive capacity? so or even in estimated. break quarter forward to you production and gross the do XXX margin margin fourth on the expect units unit given roughly I now, the

Tim Reeser

answer one. I'll to Teresa ask that

Teresa Covington

million. loss provided at $XX you? QX how operating $XX million Hi, $XX the We for with to guidance of Sherif, are adjusted

improved we ramp benefit As for we as a to gross the that and gross higher but expect do battery prepared at our we as supply just terms operating think leverage with to cost production, chain, labor, to be. generate we margin, on volumes, quarter about with margin leverage fixed that will say positive happening not we're would drive what's efficiency we supply time which exactly this believe the operational

Sherif El-Sabbahy

of of that quarter and It backlog. orders are on order comment units, as versus was but What volumes binding than the just a a portion non-binding? clarification of orders Understood. [XXXX] for more also rather actual

Tim Reeser

and this in Sherif. think to and past. I question, top know, I don't of I the it's Good I know some chance worth off and you had head. a we our talk do about I've think the

a purchase important think relevant and - orders. up backlog I question. our backlog it's made note So I I'll the think of very it's is to and question into good break

of So these ways. purchase are define - about in one things could the you purchase variety is orders, a of orders

are orders purchase some Some not. cancellable, are

orders like confirmation. HVIP have first article or purchase Some a contingency

a fleet things orders of in the purchase order have of of there's it - our kind with purchase that have order may all above. that purchase major a variety So terms and a a commercial

non-binding. have prices were that fulfilling forward way happen of have but they So we under aren't those to might binding that some order, something go with to fall didn't were ways goes form the Obviously, terminology most what it they the some cancellable, want under - we would If streets. of both fall under and are those purchase typically two because cancellation come are of do most but opportunity.

give and to we question. answer quarter that in more - we and succinct for if So some we'll we our backlog, as you work can do next go can see at back what's look

work We a I trying well. don't binding to that fewer to I important often that that for street cancelations. succinct. also more think has I But question, an something way But overall more I apologize, with it's purchase we are are two and and places orders certainly always said, managing have something - like as so have constantly comes obviously,

Sherif El-Sabbahy

Understandable.

Teresa Covington

to there. follow Sherif, just up

may talk orders customers. included by legal Tim obligation, in as customers a firm we purchase non-binding orders we the even non-binding although constitute talk canceled the or As it from delayed our is does penalty. are backlog, mentioned, of that about not though, it comprised as we believe amounts these be agreements backlog about without they And and

Sherif El-Sabbahy

question, or one flexible color delivering battery the the supply what of terms the forth, with suppliers working a of supplier you're you've tried driven and to on for product work more with are what Proterra If so in e-chassis, a a forth Understand. they are and and components looking shortages standpoint. I specific help of base. components from I appreciate in or talking transit the the and so are they the the and who saying lot customers on on a you're when could are I with have just some been fill adding they understand just I want that.

Tim Reeser

may certainly you brand of of We aspects all customers customers been indeed that major customers would and systems specific aren't what components, battery are of of name the that charging say but liked who conditioning Most aware happens favorites. they've their on brand with batteries chassis, this front. really be some don't. on don't But think do for heating, and a specific the and some product wanting or other the customers especially certainly the the above. somebody it will impressed component I systems, say or management vehicle many have the hey, of that the of using - choose Many we've the air to their their other component happens or vehicle, when thermal so. components chassis include aspects front, less

and complete so they product it do the saying, package the And where meet customers aspects that the they test the vocational our would the they've and there are I in say like looking at general. needs does are do vehicle, and driven trust engineering

be of business part and opportunity obviously to driving some it. is, at that at team's an concerned. So people steer too some part - level, is I to then, think would wanting people other that development aren't when of of say we steering are who And about there it's our a mixed don't aspect who job, all when bag of absolutely some

Buy customers I'll for better with specific. of it battery then like to give battery may hey, a we case, and use some ask need do we have our is your become another that fit a So this in third think hey, I cetera. category it some becomes can et kind that say is job categories particular America get potential But

example, in America have for that have specific specific something go customers very dictate, obviously on will a to like Buy Some where a vehicle. requirement what might battery

that dictated something or So are or like there are that solution level grant that. higher some a dictated like by certainly cases at

not all hopefully you So may you you answer of gives I realize give but needed, above. the the that color

Sherif El-Sabbahy

Thanks. Appreciate that.

Operator

Thank I you. to session. time, the the Tim this At to remarks. closing like will would And conclude back Reeser for this call question-and-answer turn

Tim Reeser

And look to by for contributions forward much. shareholders very and all commitments. progress. to you their our our like you to on our their Lightening's of support our future close Thank customers their discussions updating thanking I'd success, employees for We for

Operator

conference. concludes This today's

Thank a your much your you disconnect participation day. may great for You this very time. have at and lines

Lightning eMotors (ZEVY) 17 Aug 212021 Q2 Earnings call transcript