ZEV - Earnings call transcript Q4 2021 | Lightning eMotors, Inc.

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Operator

Greetings, and welcome to the Lightning eMotors Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions]. I will now turn the conference over to our host, Brian Smith, Vice President of Investor Relations. Thank you.

You may begin.

Brian Smith

thank joining and operator, you, you us. for Thank Lightning's CEO, Sethi; Tim the CFO, call Chief and are today Kash Hosting Reeser; Co-Founder Revenue Covington. Teresa and Officer, Earnings issued Ahead call, we its Press today. Release Fourth will of reference and Lightning Quarter this which Presentation, XXXX 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 in differ could which factors from these earnings due our statements in risk listed found can on SEC, materially forward-looking that our to filings are website. Actual today's be the and release results with also We duty do to forward-looking statements. the not update assume any includes financial presentation non-GAAP also Today's measures. the today's refer release of information for comparable the definitional to reconciliations GAAP contained Please measures. to in earnings and measures information non-GAAP me it that, to Tim. With over turn let

Timothy Reeser

thanks this I'll and the referring be everyone Investor Relations our to we today's with us section posted the for on to call, today's agenda. today. to afternoon. Brian, of you, start earlier Thank off On Slide will X slides were that joining website

begin with an the how strengthen to will Lightning of continue company. we and overview We

and wrap will partnerships, development, financial supply chain update products Kash will and and sales We overview. it will then up provide provide with and update on our Teresa manufacturing business an discuss a expansion. markets, a

ambulances, through buses including Moving X market electric battery X electric and believe range eMotors Lightning in motor X. fuel the manufacturer to and utility We Slide of buses, is the Class trucks, coaches. vehicles full cell shuttle only school

have every ship our commercial by company lead zero-emissions drive, over zero-emission started classes. our vehicle only X.X XXX mile customers driven million solutions product and these and customers. vehicles We shipped over We our all XXXX currently in we With shipping now grows. with are vehicle every with of miles hybrid in the

Moving to X. Slide

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

for Companies that suited required light-duty and performed do is model for that that a GM software well hardware building and something vans not of Ford and level commercial high manufacturing legacy high for. the electric OEMs like customization have business medium-duty electric trucks is not in not vehicles supports volumes and Our historically segment. are commercial are have vehicles that

Moving agreement our Motors. to shuttle has recently as supply Slide school agreement and We X expands broadens X range Collins to with diversifies well has platform commercial a chassis River and announced started our vehicle General of X. development broad buses The our engineering and trucks as partnership bus. buses. to offerings through delivered This from GM school chassis, delivery covers and our chassis' earnest. with the Forest our partnerships in Class work

production impact agreement to begin the in X this chassis quarters. and receive next We see of volume this expect year, we'll the to later within

Slide supply to discuss the X, Moving chain. let's

We are experiencing and strong growing product demand.

disruptions news, position as with in serve have to is today. our However, battery previously us obstacles for supply regarding chain continue an we agreements inventory on though. There The announced put excellent supply partnership battery hand have business. good

publicly commercial ship a lack the chassis dates. by transparency has exacerbated commercial have chassis quarters. as next availability been in as shutdowns commercial plants, of chassis availability, chassis vehicle Ford both for vehicle constraints announced like OEMs few availability lengthy well result continued vehicles, limiting expect chassis we major However, Limited to impacting shutdowns and vehicles factory these chassis electric of ICE their regarding

progress these shortages. Lightning chassis chain and taking previously Our limited teams and with cab adapt to stripped announced chip are continued our engineering, on not chassis products circumstances manufacturing measures have been supply that to by

months. our on providing eChassis be in coming will the We details further

This River shuttle routes powertrains partnership partnership powertrains validates Lightning shuttle addition, EV XX,XXX it servicing road In today. and few to upgrade support fleets over continue to supply market replace repower a of eligible on reliable buses, with ICE announced a where Forest Lightning today for factory-certified value and repower is Powertrains vehicles. with the offer we coaches. our to Forest unique today the to in River to buses, of is powertrains options and commercial transit school the X motor and very the buses vehicle only OEM electric buses

are dependent, to have we pipeline proprietary and business, with for also Lightning solutions our tightly sales continue Energy we is Finally, vehicles. our our lengthy energy and healthy grow which a not that charging integrated chassis

and Although zero-emission supply to and chassis battery supply we and able our by revenue mitigate constrictions other constrained and were several revenue other a by QX constrained QX availability, chain was was complete have rather components XXXX QX due XXXX. sell delays, quarters. to is sales the not vehicles lost note XXX revenue important pushed to we chain any simply It is to being forward in supply record future that

Moving Slide to XX.

improvements and on see an and the drive the expansion. to and video manufacturing new release and as of Let can reliability the per a other update our capacity labor made we and expansion systems powertrain per year. towards available -- expected X,XXX our an video cost our manufacturing quarter, and/or me this up automation capacity unit we some automation. of website, vehicles factory a factory earlier now provide showcasing reduce to press We efficiency on improve we released In video released new you

improve cutters, laser to in software and invested productivity. we collaborative reality advanced quality and both robots augmented Specifically,

create a We research are battery renovating and center. and lab, X,XXX test square vehicle which include dynamometer development feet will a to

capabilities, us the XX,XXX customers' we of on and companies up And with and believe per powertrains capacity will it add to we readily vehicle our U.S. an additional a that, needed support square and very provide zero-emission believe fully we factory. and turn one to X the in sales are We operational key Kash backlog, vehicles scalable partnerships. square to commercial overview Lastly, I'll our year. footage market order the million expand of to OEM pipeline few campus with of now allow foot can installation along

Kash Sethi

update on provide begin I'll backlog. Tim. Thanks, partnerships, and pipeline XX on products, Slide to an

core vehicle buses vans, products, business electric zero-emission all to cargo passenger continue forward. the vans delivery drive and trucks, Our school

Forest builders and customers enabled a nationwide leveraging and OEMs like reputation Our extensive to specialty dealer strategic by of have partnerships brand with River with range network. our engage wider partners' market-leading vehicle Collins and us

As a products and demand strong. for to orders repeat continue receive these we result, is

sales as of was Our and backlog was pipeline March XX, XXXX, million. $X.X $XXX.X billion,

these customers. included and of Our order and consists in the vehicle orders transit generally units ambulances, and systems purchase of comprises pipeline repowers our applications and all coach sales prior Slide opportunities and and all systems. in Sales purchase nonbinding various over XX backlog next bus of receipt growing to order. electric a electric Backlog hands, powertrain vehicles, demand partnerships, stages commercial from to cycle customer On Pilot of applications some binding RV. XX, we motor anticipate X sales months. these the additional vehicle charging for agreements with now vehicles for we show are

We look continue partnerships vehicle to near explore forward additional those sharing to and the details future. in

to like are Transit sustainability turn The discuss ACT to commercial continue market. and targets. XX of MOU zero-emission that future Shuttle Now vehicles forces all Slide and adoption funding a is zero-emission to to Regulation, XX-state California's the Rule message Rule, and the vehicles. programs Airport fleet drive to a electric. I'd regulation strong mandates, delivering of grant Government

low emission Programs more state to program funding Beyond no like year of more zero-emission the Transit money vehicles. and Authority's Federal mandate, providing accelerate federal will the now HVIP they ever or California the and even have. governments provide adoption vehicle this significantly are than

Act. benefiting Jobs the mechanisms like program Infrastructure Investment Bus and are New the from School EPA's Clean

prices fleets many goals. lower total their in of gas continue Lastly, electrification many sustainability march due simply interest to towards accelerated cost ownership. to corporations electric looking that corporate the recent of go increase The seeking

XX. Slide Moving to

a challenge chassis, opportunity is which to through has As supply once-in-a-lifetime has decade. commercial been zero chain repowering Tim emission. mentioned, repower created new with a for the vehicles Lightning vehicles industry facing a nearly

capitalize we on are nicely to opportunity. positioned So this very

dealer on with our passenger In zero And addition turn with ABC River to offer nationwide their to we network. over partnership I'll and outlook. current update Lightning's with provide financial to today, buses earlier for to Forest motor repower repowers to an buses emission through vans, results that, and shuttle a Teresa and new vans coaches, announced it partnership

Teresa Covington

some results, by XX. on first will on followed our quarter Beginning I Kash. provide Slide quarter commentary you, Thank our fourth outlook. now

For the increased $X.X revenues which XX% quarter, period. of million, we fourth ago from generated the year

XX $X.X increase primarily due to vehicles compared quarter, prior vehicles Cost in of XX the the year million in fourth During period. Lightning compared prior in sold quarter was an sold the period, million during to year the fourth goods revenues. $X.X to

XX. headcount related The enhance to percentage in we to income year in million and offset revenues the noncash from overhead, $X.X loss engineering our on the $XX.X quarter million terms and company. fair loss capabilities. million The The a year million the SG&A ramp and a compared gain change platforms, prior liability, fourth minus period. in the was the new for compared adjusted in production operating interest the to to period. refine XX% value $XX.X to change year compared processes, to expenses $XX.X found Net grow, loss for the EBITDA million higher factory in from period to on the A loss fourth net prior primarily efficiency. of $XXX,XXX compared our quarter generate development expenses of to of primarily vehicle the cost improve operational to supply product advance engineering testing battery higher due year improve operating a new current as production earn-out the higher in million in-house administrative fourth is gain As primarily quarter and be year expenses. operating period. period. fourth transition in fourth primarily in can margin and compared of the $XX the we in the and Slide prior liability higher period. prior related and labor in EBITDA $XX.X loss to the net leverage $X.X operating overhead development to a the due perform compared million benefit million the XX.X% the a and the from quarter $X period, during production. minus and into of a year being to million was reconciliation to fair gross period, million to we were fourth to $XXX,XXX our $XX.X $X.X in prior for due higher value in Total to expenses design fixed quarter operating expect was adjusted primarily the Research the The a during million prior the expenses quarter to derivative leverage change quarter the income and public expense the due prior was year battery million of partially $XX.X related compared net was was was positive noncash The by $X.X

with our ended to equivalents. the cash Turning Lightning sheet, cash quarter $XXX.X and in million fourth balance

Slide XX, outlook to quarter. the Turning our for first

As the Tim we helped our have us earlier, new battery partnerships battery had mitigate risk much XXXX. of in noted

in chassis chain components. with revenue-enhancing million manufacturing units, experience cost revenue. adjusted capital to impact on capital and in to equipment other and and components for of our reductions $XX in to vehicle to be of $XX will supply directed loss XX to any capacity however, challenges build-out $X factory of range efficiency. continue, We XX, system drive the the be range XX We range powertrain be X Based of associated million, factory our the to investments and be increase with March and areas: the these timing of towards of revenue sales Most current and million. in projects. expect business quarter facility may million ending XXXX, other the Delays we conditions, EBITDA $X invest to to

country demonstration Additional and our and in products R&D to customers deploy potential existing vehicles increase an equipment to sales engineering And pipeline. at to and support new three, backlog the and across sales drive services.

preliminary decrease is range in $XX have of call. Our press expense. based bad result unaudited in QX review in million. $XX expense this results The as our require million which the information discussed full audit with the million operating removal the Included and that is date spending no debt year and debt XXXX company's have. to closing available under change changes our up we expenses of auditors. by No EPS with the to worth to in is it The change capital we and expected With is we the a bad decreased unaudited the net Tim of to may or information a a back EPS expense our or $X.X debt be in financial a quarter the XXXX on There revenue included remarks. QX of decrease change million for in -- statements. and is in This adjustments release. first of still could to reflects results bad with we turn that, financial are of X $X.X income have the XXXX. could One prospective to in record options expense revenue in I XXXX with end could income for

Timothy Reeser

our Thank OEM you, we announced. closing, and near term, partnerships supply the as Teresa. by in as companies outlook backlog, feel our we the In evidenced strong longer-term in chain experiencing Lightning confident while headwinds the space, in is same our other pipeline have

positioned medium well and focus with transformation customers shifts term In and bullish market and our we the business experience. for products, as fact, current we industry are in long as see the disruptions,

expertise fleets management the multiple world-class fleets success adoption, in individual their industry new EV the remains who believe and we of X.X% growth the dramatically And continue their experience, be funding customers in to ZEV less Two, with introduced vehicles, our shareholders federal organization to productivity our dollars stands than today. of our are like especially in new your strengthened air we a brought for state at the course our of a confidence our thank I quality we to appreciate many high to multitude members, will because opportunity to and billions forward we customers require that for able increased employees thank level and we I our and contributions through and engineering you, in capacity, team I and a Over your sustainability manufacturing robust our years new the a confident and on of we line operations. all to challenging in commercial operating to lightning and thanking adopted run the we vendor with Three, would the and vehicle market by the have will unique any finish we five, year. pace mandates increase to One, the and join today. are vehicles provide of want zero-emission quality customers. to both Operator, that, full their we including strong suite and available next produce XXXX, the developed and ways. to Lightning Further, best our support. products doubled questions. Lightning, single out team to attract of value to ready are with for of the quality we executing suppliers In to for partners ability passion accelerate business reliance our infrastructure to reduce our key the deliver to Four, view, of of unique our time and having organizations environment. for company's the solutions for components. be our best now our they Lightning partnered services. of And and mission. look ahead. With to drivers everyone, over we OEMs many of number of who at open contributors,

Operator

[Operator Instructions].

Our first Mike from with Davidson. comes D.A. question Shlisky

Michael Shlisky

I to new announcement ask repower wanted about the here.

extra an of us... of Is tell a few to clarify want That's part can there you additional original agreement. the And that? top on details. not Just business

Timothy Reeser

Correct.

Michael Shlisky

seeing us Great. in how Perfect. that and And how can can you and you XXXX XXXX? much tell soon of business start

Timothy Reeser

a product product this parts of already One the make. is we about great it's

powertrains. and an both that we that pictures E-XXX them we have factory as install to here River makes of Forest ship our install assembly video well as powertrains seen Those line you to make we E-XXX them or So know have that of them.

of as new opportunity these I and we the that a in exciting fully obviously wouldn't though that rather opportunity. the see XX,XXX understand the Forest road, in extent these So vehicles demand. in the now than capacity them up say the potentially to to already very are different use to yet on putting a put nor River them significant us of vehicles

obviously, River new together fact we're a today, So now to this announcement and to respond that meaning a of brand-new the actively they can't get customers can't the we are something on Forest product shuttle a working is today many -- buy bus.

agency transit a gasoline you to a bus get new aren't want electric, one you're and you shuttle If going because aren't one. able they to either as or today, be available

on a get weeks how to responds reliable coming people them, by those but for a the opportunity repowering it. vehicle over to certainly we'll to road keep we and months the better the is So able believe, and compelling idea the market exciting, be

Michael Shlisky

also to Collins now on in production your just on are your Bus? backlog make touch Great. River is Forest like Or and or backlog sure schedule? does what does wanted to agreements. Okay. just include want here. got current I know it I multiyear I not what's these they've your

make to know not in in sure there Just what's there. and what's I

Timothy Reeser

you that? respond can Kash, to

Kash Sethi

Yes, absolutely.

have Many do them not We customers. in production, are because with been all River backlog. of and agreements. the those multiyear dealers from and already some Forest potential have both backlog they them units have shipped the are those their with in we our So agreements do in and Collins and their of are of

backlog. that as we gets demand then So will firm, it the add to

Mike, We've of lot in we've not a in it's that's So yet. some there mix. there, potential got a but got

Michael Shlisky

to happened strong from in you a just such if in I'm how that like clarify actually Okay. here. at some what Can have It backlog a demand and following it's down as actually, moving exactly units. environment? correctly, of like in the just quarter parts bit dollars maybe And looking on this looks are may the previous

Kash Sethi

Yes.

both our nonbinding has mean contracts. backlog and binding I So

website. of have fill commitments our on, goes time things from firm can backlog. constantly the pre-reservations we're anybody as backlog They're a Our new our bunch into customers. that on does And not bringing

take either or very more supply reasons Some backlog. It about the our customers no constraints may it. if quarters. vehicles longer bullish generally speaking, the But few they operational demand elect covers have for no are to we for than those have the over next longer we

mix, am won't the but So partnerships, into the customers products backlog, XXX order on bringing I higher-margin the of new improving will buy XXX the who first next after the XX, bringing quality XX. just focused more the and signing

I compared -- but towards flat think mix relatively is it has better. to last quarter, So gotten the

partnerships now. the have better mix We and customers in better

Operator

Schafer from question Our with Colliers next Donovan comes Security.

Donovan Schafer

I ask like sort of down a I'm by to driven being want moving being looks this ASPs, quarter of going they're for talked powertrains. bit idea more guessing is because more we've this But just So Cummins of the what's shifting a first on the with about of has ASPs declining be some it of again. color EVs there and the just Forest they're And River quarter-over-quarter the down guidance, then to like of agreement? driving to -- any can manufacturer maybe vehicle to to repowering do give that you kind from about

Timothy Reeser

Donovan. you, Thank

right powertrains, that powertrains just case, had of mixture the sense that in mixture we repowers lot provided a customers any a quarter-by-quarter where vehicles do plus doing You're basis. ASP that QX. weren't exactly as a of during had this we the vehicles in changes we the on In QX the

obviously more you X and more towards attached, It ASP. well. So battery more buy the but was and also just obviously, less was did of very bigger as it repower vehicles, which include vehicles not a lot expensive that a the powertrains, which of they in are our as have any without was Class was are bigger because it powertrains changes business associated expensive options, weighted business QX, QX people

Class chassis, in in a get the bottom at X whereas end, where up our X QX, could Class of ease certainly past a of future, we see as the our we more to of constraints we lot also bit. QX expect and times a ended and of bigger lot in doing up the So -- some chassis' some of vehicles a mix of vehicles in bigger

Donovan Schafer

box relative is the that vehicle stripping the might then increases just sales tend your because going sauce sauce that, whereas all drivetrain, a or to equal, imagine, mix to Okay. pass through, would enclosure the to that you're of be of complete product a margin it equal, all powertrains those as tend is then of vehicle And sort cost be the higher to you to the sort down the higher-margin if follow-up they kind do be, sales, secret your a on if that if you else of just else be is secret can of or in same?

Timothy Reeser

Donovan. is intuition accurate, Your again

get be margin to this when just selling we -- we're because significant believe, to vehicle, eChassis, I'd to proposition. on our that a can a can, tends our or where then higher own those release repower as and we margin So a also that's with of better we package the margin have powertrain, dilutive value eChassis it for say vehicle in it to margin does will in does the it terms we the cases, new, we begin whether product. margin, evolve have begin premium when because eChassis some But is overall own lower that features

we correct. evolve today, this you So what said as to is our eChassis, exactly get but will

Donovan Schafer

me out the question. Well, last just to you queued

development design in to just map engineering get was such. of to, certain sure eChassis? in going specifics, question my or for an what -- like last phases be I'm initial road the a kind that where of and So terms the are you you and there's process testing So the checkpoints

So the where eChassis? now right are you guys with

Timothy Reeser

in meets stages, with to still beginning expectations their making work requirements. It is it and So and validation our sure the good make to progress. customers design

additional new activity. hired that to absorbing who allocated work have engineers, and continue people allocate accelerate to the more more We required -- are recently

it to it out we in the highest want eChassis quality has done company, right. to Clearly, So also, the eChassis, we absolutely as see the it's there. be critical but

easy. -- customers' current We makes also in plugs it current want lines a product our and the right assembly that

on right. those features. have own eChassis, So safety to the ultimately, an And done things be we

of doing best work to And sure are those lot the industry. so of best make features the we're safety in obviously, a

to exact timeline it moving it So hard an on is absolutely but now. forward, put right

Operator

Fox question Advisors. comes Steven with from Fox Next

Steven Fox

of just guess, circumstances then Like I of behind explain bit follow-ups. little was a bad couple had all, debt what a first the it? can expense And you clearer? the I

Teresa Covington

Yes.

within we On had mentioned, expenses bad uncollectible. in that our have million sale XXXX. the operating back -- quarter, have had complete. with XX-K, the this that at bad debt the we And auditors, And and debt, amount time, first is sale we're in our so was the as I a $X.X going of we this around our deemed position the we,

took that. for So debt we a bad

we're So the our what today. working I auditors on about that options with spoke is X

Steven Fox

Right.

like that. So understand I problem collect understand Any they which as Did the go by to just bankrupt? the your Did company detail unable a customer I to was have company. with circumstances was the a vehicles? all trying there?

Timothy Reeser

Yes, thankfully. complex it government is a actually deal and a customer, a voucher both with

with running, they're them. the are customer, say, vehicles the on road, they're the happy So and I categorically, will they're with

being side actual And happy in to running the -- of can speak I just terms We today of vehicles -- are the answer fully did the the part, combination a partial the subsidy customer's are we But Obviously, in form. payment. it's question, the under first customer and -- government receive of in with them. and did the payment not receive indeed operational the that regularly why I subsidy review. side So because terms the side answer but the can't specifics to, argued. of and around

that firm confident So side, we from are very and on.

Steven Fox

are whether higher a And a for pulled are say, But be how et in, full some the days to that. Appreciate vehicles then ability your like for Tim. in moving some versus, to helpful, are XX call obvious cetera. seems chains or confident full of really it month ago in reasons. are sort at looking than powertrains terms pushed source you last tougher of lot of supply year, just pieces, out, obviously, That's volumes, It ago? year, there's even for

Timothy Reeser

got claiming then, China now of true. we've COVID Yes. And It's again. course,

So we I in a target. it other work difficult this the on control. you calls, What and things done, I'll things is we've a the is control we tell moving say to lot can

systems procurement really size new is in continued; ensure at. the we're it's to indicated of our we'll We've we say systems, understand obviously continue our and one and our past logistical to significant chain And where team. global increase supply So the we those software also team. of I've systems, added

tell far So very better least, have the to I we than we at can used you visibility have.

thing lot we've new a other too, The is and of suppliers, a chain. added supply new

about So We're very cases. we at and some feel better source single behest also to and we're no supplies most of the hard in much working longer in-source that, things build continue our where chain. of do of to add working on but own rely control to components where also necessary it, additional cases suppliers to some in some we diversification that supply

is making make news Russia, really about about in continue. whether we've to every placed difficult out the whether be suppliers. COVID talking to our we obviously, prioritization many the talking to to you're daily or on front Port steel day, doing also we're of up. have the all those, at talking a investments supply about -- And Beach logistics So a need expect challenges we it significant of Each pop you're you're China. cases, of I'd that What some whether with predict. long Long can say answer long-term the we of basis, which see is And say in agreements chain challenges to at coming that. enhanced

now significant and that us really on strong up orders the build move to place continue pretty We priority list. relationships

the we the situations of at unpredictable do, basis. the So But doing. still macro that a on we're day-to-day behest all are things us can a obviously, all of are bit

Steven Fox

then and of mix production that, the I safe et a business sense of as some could guess, rest makes of of assume it for the to cetera? all in dictate a schedules just also like bigger terms helpful. chain portion that the to becoming Yes, sales, it's of that really the would follow-up supply year, be And powertrain

Timothy Reeser

agile bit has that's the any take, Absolutely. and think are. good in able we I be think -- company I a be to And approach we to

every this out in saying at we with we know can and can that. that's trucks. why their infrastructure the some what do chassis opportunities. at backlog looking where we are And what willing are of we've Lightning taking our and and our we advantage of taking in we're the and Many urgency conjunction looked to and get customers them that preemptively is before medium-duty to that want what some and opportunity get build and of repowers of do build So advantage obviously, Energy And looking what that opportunity can constrained day around what do customers of do the really revenue? wanting while to

So we're those. looking at the around trying carefully absolutely markets at the where constraints opportunistically work and looking are to and

Operator

comes Our of El-Sabbahy Sherif Bank next with from America. question

Sherif El-Sabbahy

So wanted revenue it EBITDA. a ask bit the bit, I higher relatively to guidance, like looking you at have seems a just on flat

the just if and under moving So that or any on labor any there's absorption ask there? expanded overhead, capacity you've the I given of parts

Teresa Covington

overhead what think now do Yes. absorbed Sherif, Teresa. margin. is driving to the volumes we these have gross factory, part we're under of about finding in at is we this Yes, as improve

the per that overhead so things unit can One is production absorb basis the we through really factory. on ramp getting going of key a the that

Timothy Reeser

on I'll Yes. that, Sherif. expand

a single As we've in a got factory we've that units. X,XXX build can said shift

get closer units, So one there exactly absorption the away less the further The to absorption is. your there is X,XXX we X,XXX units, more from -- to intuition. the is

can strong improves obviously can supply the move we real use of obviously, towards places margins a any volume we solve these see we because volume factory urgency, obviously in the and get significantly. to chain some So

Sherif El-Sabbahy

guided about the top earlier, there? moving if ASPs of Is declining, are discussed the for it apologies purely or are $XX,XXX QX. the as agreement And it's what was that but some repower if at seems on this line, the parts looking

Timothy Reeser

Yes, the is not part biggest -- whether is new moving or it includes vehicle. a

So in major QX, we providing do a they're where few the a customer have, vehicles quite for chassis.

the vehicle, is the on they're the we repower, and a not that -- but it's revenue have don't we chassis, reduces So so take and providing ASP. a chassis, it new don't

get And very some a we and than X -- of chassis bigger larger we've because fortunate what are the QX expensive powertrains been and the The -- have chassis, is -- building. quite highly involved. X Class to constrained, chassis less battery Class X the is other chassis been thing have chassis been more those few Class enough less that's heavily the

will X smaller spectrum of powertrains mix. revenue also of as eases do go end and as -- the the larger complete our terms the vehicles less invoicing and combination repower the the up. So we our larger those of would But I more some the ASP in supply does up chassis do the change some out chain also of expect, of average way building units works that we buildings, and the around

Operator

[Operator Instructions].

Our from Rusch next question comes Colin Oppenheimer. with

Colin Rusch

note, Can bookings a positive of going you sort more on in some a then work customers the their looking bit now to or any terms coming vehicles? dynamics you little customer deep competitors, of talk right with about and back are you at that that have of away on your

Timothy Reeser

Kash, take that can you one?

Kash Sethi

Absolutely.

to option. go drive vehicles They go Typically, to win want really who quickly. we the customers the which -- electric their today. have they one, and the evaluate because touch can they market; real we round we So

customers, competitors For our have our websites and many brochure. of

comes So we'll drive. they -- we've usually got it real Then win when the product touch and are where careful. we X okay, can to round pricing, a

we money, looking from be at but While pricing like perspective. how understand are cost customers ownership it a the careful play we we on we total want to the of to aspect, would make

the that get So bullish their take when for competitor can the building is costs. easy go there a has are as very company for been that as where a competitors how products low to some they to on low cases it's especially long, company approach we of refused are, very not

customers X some didn't have where ago. the So of work to elected X X don't still because that I Or had hey, product the for elsewhere placed they've come lower then I And to price. months go have hey, my us to cases product saying, order we've X months to out. an back

Let talk me guys you to again.

in space both in and also often, happens the that the space. bus So truck

Timothy Reeser

your Did question? that answer

Colin Rusch

Yes. the debooking question I'll take offline.

that getting software of just out you really the guys around question your So the next leverage is investments. are

out software you getting little those one you're in few you're the that about software. has much a companies you're on year? investing how bit cost Can [indiscernible] the obviously, -- from this So truck of structure? invested the areas of talk leverage And that really medium-duty that a investments

Timothy Reeser

I'm, a our question, the something about. in times or great Colin. in segmented past, software passionate you, very software It's as former a separated person, Obviously, I've Thank segments. X

We on categories. in you software, we the very if dyno have at the look the efficiency controls the we And that are That that vehicle, the business. at we're best in top believe CARB software scores test, build. that is proprietary do most the we

that vehicle, take on different what move smaller And bigger agility But components is what's to And it a job different that a unique We a to a the so and it's we different that's speed software. in it. do software with that believe different is the and at we modular. easily take we made that it and vehicle can a us vehicle, different it vehicle, unique, makes platforms the port and sized equipment vehicles. which software very fact and can do great

is The second piece air specific some is vehicles we this some hydraulic of modular, software vehicle. have way vehicles a again, integrate And brakes. into brakes, have the

and what Some have big effectively given and cost-effectively of. rear a ability air vehicles in we gates, of who proud to And doesn't you a to vehicles it's we who We understand and industry-leading pay what's that's the between telematics unique difference one telematics us vehicle payload. happens when have there's and can today, good drives colder, as regen high or is, our on all some lift X we're when integrate up And again, when every that field to it's modularly tell driver us analytics, something rooftop attention and regen. leg very today. thirdly, with driver a have conditioning. second Hz, single the to our We hot, really have

we're excited to of three in fourth terms a charging and energy year those and investment, that great, that of about solution our is integration this are areas now very I'm area adding the but So our vehicles.

valuable and they So beginning when expensive if they you too scaling the get as they us where too that fleet. they're they too very to very need close careful as charge, to be together. how the complexity customer a scale, understand they charge how charge they can fast, scale, charge, about across charges and said, many to the what's really when manage Demand much vehicles

manage energy with depot, that to and when to much in the need back going ability how energy energy that the and it vehicle they together charger it the vehicle needs the by comes vehicle the to and So talk it's the day. charging, much for how needs, know example, when next

the those of and excited see software to of all about value So continue add things are the we're side to business. opportunities we to

Operator

from Michael next Ward comes Our Benchmark. with question

Michael Ward

A things. couple of

off, on a given chassis? volume Motors, they you First for have General commitment

Timothy Reeser

know about can we don't talk I Yes. today. that it

it's still they'll which we have be get obviously, do to under give us is to important to in from on but chassis, a this think commitment wraps, out us, I what them chassis year. order able

Michael Ward

take repower, the before in the the assume facility you'll of much that River of do decades and a repower, the Okay. they're these capacity can projections. those just out. equation at Forest on I based up do space? it's repower, of capital does sorts bit cost, -- dynamics, to financial potential your the some vehicles space And less it it that second, capacity. things? your could going revenue, you current kind those manufacturing to XX,XXX shipped of little the side talk How out about I on be Does mean, does What of

Timothy Reeser

look Yes, very have you it's good manufacturing see you visited, that question. our of we've you'll powertrains. or got when of those assembly videos lines at for a And

is we And so repowered other powertrain powertrains this to build. identical the

build of it install efficient. line whether is We've assembly be year same. this out the this in very year talked at factory, powertrain somewhere ship about being else this side installed it factory shifts. So X to this the the on X,XXX whether to we do powertrains or and It's we able the powertrain

a of and just a good we the pretty bigger on versus focused is or lowest use a if terms of it powertrains vehicles, we space, also manpower. it install the of lowest entirely it we It you we more vehicle a floor got of that install we've powertrains do powertrains. take takes lot So and on had capacity. When even here powertrain mix if as our plus in lot bigger a we can imagine, space could build. use powertrains more much mix And just at in manpower everything just factory, takes

most leverage where field and historically way to in factory anyway. the this efficient facilities to have the vehicles most powertrains partners So also who is the way efficient our our use space new put and already they've

in great the that a ecosystem it's exist. So of partnerships use the

Michael Ward

it a the the XX% revenue of of is side is And about that a Okay. cost assumption vehicle? from repower fair standpoint, the total

Timothy Reeser

I think the the fair. Probably the vehicle -- that's in of it that's haven't depending on math recently, change the of think done size I and I and ballpark. features, does but some the

Michael Ward

assume Okay. got capital it's be And I intensive. to less

And... quickly. to now do do you Forest people other with it's it? an can revenue have or a So accelerate exclusive standpoint, from Or way River right pretty that

Timothy Reeser

Yes.

with us exclusive an have on We today Forest River, correct.

Michael Ward

great That's Awesome. news.

Operator

Karner Our with next Capital. Vicki Blue from Benjamin comes question

Vicki Benjamin

Yes.

your I one love fans product. your One think -- of your of

of off and questions. of other's with some couple the feeding I'm quick a questions Just just

if running you First for you capacity X,XXX this What only your that of X but was shifts. powertrain did that that of know number have I all, the vehicles, so you current at could we what's previous question, you're approximate the do asked know powertrains -- X,XXX capacity? if with

Timothy Reeser

I offer about don't certainly I'll find from I talk team have go my as to yet, we to later. that to honest, that math. haven't be to a... asked do know It's

Vicki Benjamin

powertrains how was wondering -- to X about are about to I half? much it [Indiscernible] the it seems takes just out figure take time vehicle, if hours of on trying and

Timothy Reeser

Powertrains half. tour of the factory, see you that. than you'll faster. much kind less And are when Yes,

on You'll automation lot -- the there, powertrains happen. side. when A the more you look can up see you powertrain

vehicles. with faster what our built of exponentially. vehicles. true time as is working lot enough, bigger who much And slows the so the gets do partners the this even spend down, of a And size powertrains happen speed I think interestingly you're on, the we And

We powertrains, absolutely. vehicle much, So being much bottleneck here side by much far, are faster. so on smaller, the they

powertrain. it's the significantly and side full of people the floor towards capacity taking So space a more of than tilted a assembly lot capacity from both vehicle very just size,

Vicki Benjamin

on contracts own we the on creating have batteries, we because in-house the powertrains from with software. point, parts are U.S. just don't all that So your the that, so of worry all virtually, about the you're know to you have or

with there is we -- plastic or down small little, the to So are domestically? pretty still parts are much you sourced missing powertrain,

Timothy Reeser

the is depending on are still today, So type things ship vehicle. more in, and specific much it that vehicle there -- But contained. of size we the are of some

level buy constraints do So the when comfort internally, when can chassis. around a more we don't whereas today have control of chain, a than, chassis we deeper supply we lot there more just constraints around chain and have we on a we we leverage and have higher chassis, think things and can supply than about much lot and we much relationships

we've with everything do powertrain. risk wrong. the with we that going macro that there's situation make I So your derail more careful confident, intuition don't become today, no that lot less sounding on to overly on could the want is just a very confident but accurate, it. Because But world, it nothing feel like seem there's still go will in

Vicki Benjamin

more And follow-on with X just parts. one question

you of think demand XX,XXX about forecast at is you And exploration that River, no, Forest diesel Forest seeing everyone number probably the the And it the cost, excited with or Do of like lack the phone any that folks on chassis any with [indiscernible] that yes OEM, that? on River. numbers? that in from some you Do on seem done QX least for got I cost, given side? the any XX,XXX would have backdrop have any of expectations? So rising have is gas

Timothy Reeser

in first. numbers, is and that's of backlog QX none None of the yet. I'll one it So answer in last

to a kind of able chassis So is River fresh for is of trying any none -- to customers. Forest this new been it conversation everybody's where not of being this get to their adapt has including world

early looking work is the is this don't our we looks what answer there in are like. obviously, factory-certified a customers We're QX. made, both because have wouldn't But build and stage straightforward good customers, backlog or demand we we're not demand and of And and the the have or about at just out to to truth the is in yet optimistic and put in answer So opportunity. and the this so actively Forest yet looking River fresh. it's both the this dealers the us and in talking

Vicki Benjamin

Great.

Any Just last for liquidity? that disclosures cash. question That's Any plans about your great. about in noticed I future? is, you in concerns in had $XXX final near-term left million liquidity the

Teresa Covington

of end equivalents, believe execute over We business our the to continue mentioned, cash was to our as XXXX you balance and believe cash our strategy $XXX.X the next is which at million, XX we sufficient months.

our We future, will capital evaluate to alternatives. we the in need and continue additional and needs capital financing

Operator

and day. Thank our call. that last you. was that Have a you. question today, And Thank concludes parties disconnect. great for today's conference All may

Lightning eMotors (ZEVY) 29 Mar 222021 Q4 Earnings call transcript