Earnings call transcript Q1 2023

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Operator

Good morning, ladies and gentlemen, and a warm welcome to the Lion Electric First Quarter 202 Results Conference Call. [Operator Instructions].

I would now like to turn the conference call over to Isabelle Adjahi, Vice President of Investor Relations and Sustainable Development. Please go ahead, Ms. Adjahi.

Isabelle Adjahi

everyone. morning, Good First Lions Results Call. Conference Welcome Quarter to XXXX Bedard, and and Founder; Today, I'm Nicolas CEO Marc with EVP here and our Brunet, CFO. our

factors, other information to our release results. MD&A, that and include could in materially morning's assumptions any note discussion press We forward-looking and regarding cautionary implied and information which impact invite language statements. you this Please from those our and the that contains results actual actual our that various such could review important differ in risks estimates our may in

With begin. that, let me turn it over to Marc? Marc to

Marc Bedard

Thank you, Isabelle. Good morning, everyone.

at pleased achieving vehicle growth. three sixth of Lion the today in achieve our Number and with up is putting this are of course the manufacturing quarter our are all plant main over to announcing in right be will And talking place items are our Number strong QX are that on gradually progress, share deliveries, today plants, great our our execute number underway report in up factory battery operations focused production a we year. three, now two, we profitability three our and ramp growth setting will to and We both sequential with today. continued ramping the our showing foundation vehicle we delivery Joliet about to are results one, elements objective. key and There you production consecutive to and plan. of

questions. before open provide will the on items line color for now we each these of We

and Let's deliveries begin with orders.

company. in in all year now on than fiscal have in a than quarter vehicles the This vehicles. delivered we did public road we more During more the operating We row vehicles delivered is QX the XXX real-life We we of XXXX, which a growth conditions. sequential deliveries. sixth became X,XXX in vehicle in of in the quarter,

discuss extensions EPA Nicolas million. this regarding $XXX we second order also a XXX announce am have vehicles, to payments book program, We obtain of order further made from the I working obtained X,XXX awardees value orders electric school representing Clean to expected moment. the have for from made Bus stands buses. and who Clean total at recently will will a $XXX value It for Program, EPA. order I currently provide School in and includes the million, are the the X,XXX School EPA. purchase secured a details Bus by the for that of released approximately guidelines that orders Our additional of in orders Program, including are EPA to be been the pleased round upfront which total

the and with position upcoming in But unveiling Lion this of truck, of Lion our commercialization infrastructure LionX also recent Lion electric services. Our PO our Tractor the first year early XXX LionEnergy related $X stage. the PO market truck truck the million and book our later LionX should approximately and electric well our own very batteries the industry. to model includes that amounts for orders for charging still realized We is book trucks, its in

Coming back to the EPA program.

replacement school the buses. $XXX with In awarding grant million the is in to that announced buses addition it for funding million and zero-emission round EPA clean awarded in recently $XXX the competitive existing X, of school

infrastructure, up For year. $XXX,XXX applications to of of the vehicle, all August XX is must be second funding be and submitted charging per round, inclusive this by expected to

the targets, heavy-duty stringent EPA trucks. school to and subsidy GHG to for program, announced rules to accelerate of buses continue will adoption be legislation emission implement and tractor and including the more these lead various XXXX. U.S. governments to school electric EV new recently heavy-duty levels buses trailers Zero-Emission Besides by both the At level, and buses, programs of vehicles. XX% of for finalized, federal GHG EPA standards When long-haul XX% medium-

being continue regulations level, state the and that adopted the of will laws sector. to accelerate to important transportation At are the the electrification shift

of its expected on the need recently and Clean alternatively, rule, to and Fleet adopted drayage For California. only unprecedented operations starting purchase trucks XXXX total this starting will example, meet impact XXXX. Federal in a can next fleets an in is ZEV be need fleets which Rule, have year, in targets Under CARB, only with all registered. or, performing Advanced ZEV starting CARB to Zero-Emission vehicles ZEVs register high-priority as to either new will proportion adoption fleet

Clean school XXXX, XX% and by box is growing of result Regulation, trucks XXXX X.X to and XXX,XXX Advanced ZEV in rule expects set with in XXXX of In Zero-Emission medium- to XXXX. to Truck the to heavy-duty case and combination ACF over close in XXXX. million CARB XX% the vehicles In in California the buses, this proportion in by of fleet XXX% and

expect we similar will states follow adopt many CARB's that and leadership As regulation. seen the other past, in

plant. addition continue billions range great see momentum focused them capacity, believe with are fleet which takes battery the factory and on growing Joliet an our and to subsidies we'll on to update behalf to dollars and benefit across production from and the continue we Canada these programs, In closely we incentive electrification. we to in all U.S. support to me our With of urban regulation, positioned available highly the lineup programs, to of and on monitor product customers,

on summer. the in the bus proceed install to electric per X,XXX units us first official of deliveries. LionC manufacturing grand year. our the stations continue Also, Joliet production capacity buses bus working equipment, focused year our the should of to with of ramp-up with a targeted continue school end opening school plant Joliet we the during we customer quarter, the for we to manufacture allowed This of as During by

the with to of X.X to an our on of battery our a meeting objective we we up production few production for basis for battery did ago. additional analysts and in an capacity during ramp the and of battery opening mix packs, of QX GWh in grand installed annual hosted as As the expected bringing by We a plant, equipment models weeks enough Lion school year, to year. the on-site continue rest of of pack of is two the vehicles of gradual approximately end a first of ramp-up will year. followed buses trucks. production our This the this power Certification of be by our an X,XXX the

the starting We smooth perform transition buses have will battery Lion models, LionX school over gradually battery to our vehicle LionD currently integrate throughout BMW our own the and into LionC systems Also, a inventory our trucks. we the to X,XXX different in packs with year. batteries

plant. our years have made in trucks. improvements scale, our continue at production prior capacity us X,XXX vehicles to is to X,XXX major X,XXX buses words our the few on No The required a consisting Saint-Jérôme of of achieve production cadence. operational to and CapEx allowed Now increase school

at address on Lion we path up to healthy, parallel unit-level and economics at three profitability. operations our our focus focused now In are model on works our well the are ramping scale. profitability. me Let plants, to achieving The

Lion. X,XXX year, investments that such very a produce batteries, we at our will to including battery the more own on generate to for attractive be The total As significant CapEx completed end the are milestone strategy, sell margins. we should and plant, our by vehicles Lion vehicles, bring our as model capacity the confident expand of vertical this batteries Lion and integration

at levels much also the to minimize to contain We as place time to put have line profitability. possible in all of company costs measures the as

towards Our entire is aligned organization goal. achieving this

will financial performance further discuss Nicolas now our for Nicolas? QX.

Nicolas Brunet

will quarter. I the with highlights I Marc. then comment first for the financial start position. will CapEx and conclude liquidity with you, on QX Thank our

We negative consisting vehicles XXX revenue. negative into $XX.X XXX QX X growth and buses XX to a a amounted delivered posted same in as revenue $XX.X sixth growth the and million mainly we corporate which This we head trucks, expand noncash During an period impact significant we $XX.X were increase in of Canada compared XXX% the million in QX and quarter of The If general million the in capacity. our ramp-up sequential last remove XXXX. was of $XX.X production compensation, quarter, vehicles, force million the U.S. capability XXXX, and QX vehicle to in XX% in of XXX to QX expenses the in improvement of to of compared to SG&A year-over-year the delivered gross in margin consecutive of margin the of of in X%, was share-based in due our as delivered deliveries. translated increase sales anticipation in relative year. office

negative QX Adjusted negative $XX.X million period million $XX.X EBITDA same to the for last compared as year. was for

incurred the million, million $XX.X Lion quarter, including for for the plant CapEx During $X Campus. the $XX amounted and incurred million Joliet

the for expected the plant. to our XXXX Lion the CapEx million Lion and $XX of for signaled, and $XX the $XX previously Joliet Joliet million, to million consisting amount are As Campus vehicle from plant Campus

battery by next will capacity decrease trucks. a We take liquidity as and our expect Any capacity production U.S. future X,XXX of further buses plant, drastically approximately have only production by vehicles vehicle investments GWh enough our and, Canadian of year X,XXX and justified to at X.X book to capacity vehicles at school when importantly, profile. we power mix in our expansion year-end, towards a the place plant CapEx and of expect order a to combined

Campus incurred and of we will the capital purpose. expect in financed provincial loans secured such As million reminder, million the be $XX federal approximately $XX to approximately for the or XX% in a Lion through that be expenditures XXXX for

assets, to intangible last million to amounted compared consist to year. R&D, approximately which $XX Addition $XX.X million as mostly in

proceeds the a offering December Let and words million. In liquidity gross $X.X option exercise QX, XXXX the me overallotment now say the capital of on unit for our few generated resources. for

plant our completed and raising the of on program, We battery to $X.X approximately $X.X Mirabel, proceeds a raised transaction million million used million. our sale-leaseback government $XX also remitted loans under the in Campus. for We Lion we gross ATM building

Marc ABL applications government position expenditures on had total As a mentioned, liquidity obtained School which XXXX, million million. with availability million Also, the $XX million a $XXX of also vouchers our by XXX converted of most $XX loans through cash capital XX, made were Lion position We of for orders and, to Clean million, QX, campus. we These connection extent, agents, up a incurred orders an directly owed immediate were on Program, in and represent filed end Lion purchase lesser credit of facility. purchase three the to $XX of on the $XX Lion. value as through the Bus of consisting into EPA of were March orders purchase by

For at approximately infrastructure the challenges an to work. X/X acquiring requested remaining these due clients of and EPA, have mainly orders, extension construction related to

EPA the from EPA the $XX program Upfront under the As obtained of have Marc from extensions having obtain payments been come received million also to from EPA. with who awardees have orders already we since over working are additional mentioned, in, end quarter. the the

applications EPA. to receive respect other processed in from the are of we EPA, by other able upfront orders to As be the expect also payments

quarter, for at of Lastly, million capacity $XX our under the issuance ATM approximately remains of available program. the end

To explore also continue strengthen our upcoming our We'll conclude, capital financial financing closely that to monitor position with and additional I reiterate will we months. continue evaluate view requirements liquidity to market and the a capital conditions resources. and and opportunities will to and different raise in

With to will back for Marc it remarks. that, concluding I pass

Marc Bedard

Thanks, Nicolas.

expect Before questions, are the conclude and and our sales we we pleased by gradual saying line to orders, growth this continue. open in production QX we that me let for performance, with

morning. profitability. building objective this to We our on achieve your this will on momentum time Thank and you for keep

Isabelle Adjahi

[Operator will now we open for questions. Operator, line the Instructions].

Operator

Instructions]. [Operator

Our comes Souther first Chris the question of Riley. from B. of line

Chris Souther

how how where Maybe still And maybe infrastructure here for a to at you strategy kind think of just pricing the the extensions looking think do many of bundling of customers be are additional quantify, of kind three second, potential on will EPA that and out. the bus you for become EPA charging of Do looking the will out agents the infrastructure? you round to there play open solutions. the up more think you charging just for funds are are could factor first that

Nicolas Brunet

here, I'll this Nick one. well, I hope Chris, as take

the we're X/X now. agents we're talking if, out, of the of talking or we clients have number in terms with, the to in find it's X,XXX buses awarded. the that still Recall the are be a that our of X/X extensions significant facts to the part for total, we the in it that were process extension. about the work orders that that In trying all case client broader could program, for of EPA of vouchers don't the requested close but we're electric something believe, right unit of case, about in out as So there

working we're that something on right it's now. So

In first both terms for charging of prescribed, $XX,XXX the essentially, it's the vehicle is, and is button the infrastructure. -- for infrastructure. It's the amount, in was same second but it $XXX,XXX round, total the round, what second the this the for round of as and I'd say meaning the not charging $XXX,XXX vouchers

a Now little to well, a subsidy the audience. was I -- XX a program. over it's program, was at applicant at essentially amount. were more the really -- targeting first of was allocating say It about talking capped rebate, round, purchase XXX a a terms capped max. of and awardees were each right, vehicle. In broad part There there's they that as a were bit flexibility the would in units we it the completely where also different

school minimums pretty for larger system both and detailed In We're round. talking a there, the there's competitive second maximums a process. There's districts, and in districts. about school scoring It's grant And that we're of have of aggregate least applicants XXX. boards, maximum talking XX, minimum of third-party at minimum maximum the a XX school about XX a and for to four units.

It's with a XX this and it's EPA also they complex overall competitive what award as say applications indicated terms of to line XX focus -- done third-party grant more to that but in funds of in past the we've process. part should specify part that on of I also application, the There's more this in as big I'd expect bidding. leveraging a

Chris Souther

volumes. with quarter of you it. walk some of No, that's fixed next some gross additional and whether profitability, helpful. very the we couple of in Mirabel additional to in the the cadence come there on And the some you we we expect the Can with ramp, whether or maybe to should through saw margins over could expect Got on progress quarters costs steady as volumes? Joliet continued improvements path

Marc Bedard

us unit deliver of case. It's that, units we've more those is on -- the the the help the same in think in have cost on look, the side we more volatility said works I the there in, something deliveries. past, correctly will to the to We increases U.S. of think the be to well volume time, Marc a battery side clearly There come as Joliet we're facility say margin -- we improve well plant, model scale. continues to on timing as related potential At can mix as the you in margin some I'd of to continue certainly improvements have a -- the the Yes, of of it. as think the we're things. but related it's as identified more as at of mentioned, price the we focus for we be that

Operator

line Davidson. comes question D.A. Mike next of from Shlisky Our the of

Michael Shlisky

you you could could just quarters many Maybe level? profitability start to a the you these, on margin do your As being it ask you his far can maybe you do quick do there? think a Maybe are? way better like meat comments How follow-up think a more on there, breakeven is where about question I way are gross of some Nick. real from you how if

Marc Bedard

a we're right, get first all of Yes. -- goal really really step the a flow, gross the ultimate a EBITDA. flow-positive. there free key us And the way Well, profitability at And positive cash -- objective the is cash margin well, free is Lion. positive then and to is for is

model electric. And we because our scales is building of earlier, saying reasons one for are for the that was Nick as that, purpose-built models feel we So very are well. the

profitability. don't achieve So volume, this a volume to with very need significant respect we to

and -- material So very they in the are margins this would and the healthy. spoke we past, about be the

we're the as in Saint-Jérôme. that right is way we this works Joliet, say have now well. well in up this very very going model also And ramping let's So

wise. focused purchase that buses I also we're on think and well first of is that capacity very we this And feel we're of side. very expecting getting capacity we the now, the manufacturing the ramping-up school right with school buses manufacturing very feel on to phase ramp-up aligned order X,XXX is

Michael Shlisky

my of change got either is of from QX got cadence over know a the steep guess production up And step there is curious, question little the to I'm like comment there's your you've probably would large of kind But perhaps be you're Joliet ramp-up a year? a quarter be also about the I'd appreciated. increases follow-up great. other ramp It large more there, the to quarters QX, sounds in Marc. volumes, here. couple a a some Just like you've opening bit next QX, That's might order, as in any I sense where on where at sequentially. because the at purchase how point, this

Marc Bedard

going No. it's Thank Mike. you, We gradual. that be feel to

the growing That's to the of growth, and from quarter quarter name other. one the of really consecutive This it's game. sixth for with us, the quarter

building very will that. keep have foundation, strong We we and a like

off in by increase I switch totally is mind, my you're a just So don't this believe and can units. and that you turning thousands on unrealistic. In of then

QX you going this and that is Mike, with We customer growth in need then QX also is request. plan vehicles, aligned QX expecting. sure electric ahead. can as well and This we we're very to is keep delivering this what our something to exactly need And well. to So make expect

to you time the well. the that the the delivery you are infrastructure at So charging planning of vehicle installation same need as plan

with So the all Lion very of this is we ecosystem have. aligned well that

Operator

next Merer Our Rupert of from comes of National question the Bank. line

Rupert Merer

on last up follow to question. just First, that

the the plan a end had many X,XXX of year? is to of capability And year, think the were this that number deliveries by the U.S. that of five How Joliet? given have think a by I in that end QX. this to at you'll you capacity of in those you produced in physically do you be

Marc Bedard

this you of manufacturing we know, capacity And the been fully year, of need Rupert, labor invested. it's do. as that with -- will by it's units, of CapEx X,XXX the the after that, have the end ramp-up the respect to to

a units, capacity that the X,XXX labor with units. the align we do manufacture have the And we will we to saying we're So delivery. X,XXX when sure of make forecasted we manufacturing have equipment

order we are not if well. be will buses ready year, that this that there in be the time and saying the the be will So we're obviously, is pace that at customers to the those but at pace we requesting as before end if, of of period book

on -- to this So sure I think on aligned we need to be thing. be

Nicolas Brunet

Yes. We up. over but QX We're providing ramp-up We're split ramping year. the units, phase. up to split Marc modest to continue still in we're of -- Rupert, the not the just the as I'll at in as volumes add. -- it's exact And ramp mentioned, expect we it still

Rupert Merer

And available or us this for Great. are sales year remind you your can book, U.S? and in Okay. orders order on the Canada many how sale

Nicolas Brunet

Yes. XXXX. delivered that that goes the composition, totality we've the The to to the but ZEVs. of related of book, is the the said some of -- all -- the is order quasi it the our in to up some it what disclosure now -- are or bulk the way subsidy orders substantially include which of from end all programs, Obviously, of XXXX,

big applications approval. fact, pending are portion of In some a these and ZEVs, the includes still

for those give specific I we're approvals, to breakdown working don't have you So a get but this year. to

Operator

from of Craig next Our comes line ROTH Irwin of MKM. the question

Craig Irwin

perspective. bit So a more from to gross qualitative I we maybe margins dive a little see if into could wanted

whether your or in not way on at and possible or you're labor still and look bus would materials down per coming So something more escalation possibly these the materials, on generally margins, you're your efficiency with content bus is gross when purchases, cost can expect seeing is truck materials, volumes? -- one if stabilized you that's components if we overhead, big getting comment and that's

-- approximately, the of a really of to Then if a bus proportionate bus where the of you train you ? number to workforce You helpful. manhours But on the obviously on about go be to be that ideally. expect years facilitate ramp maybe can hours that couple for comment number we and could at the your would would the talk and ahead labor hired versus labor, per you

and the the for yet at nice [indiscernible] And then we assume the overhead future? those adjusted facility, from that -- does will margins? it would fair fully be be if P&L overhead both [indiscernible] carrying overhead, the for we Joliet facilities look the with Mirabel And to in profitably buses do

Nicolas Brunet

Yes. the here. Craig, Nick Thanks for question.

qualitatively tackle Let those me just items.

some of a good of material, terms it's we of of at I'd to in pressure. while. but time, the cost-out ease, -- a some starting been program see still for have the starting we've pressure. terms on eyesight We're say inflationary But the a we're only not mix a about seeing In see same that we're benefits talking that cost to

and at in opportunities dialogue achieve, more that quarters. suppliers about cost becoming with for we're it the through cost it's So presses and or containing only whereas more previous containing I'd the cost And it's the down, become increases to us there's the to we and the tangible. say reducing past, bring more in good about some going something some was But to back instances. working it's need cost more and and

sort some the more out overall costs in will take important been relationships opportunity, technological and -- some years places. items, a couple time. riding dialogue more a of where number of certainly, change thing, the significant a opportunities in of material, long-term say some bring that But down to we're there's on see but the I'd we type In cost-out technical

certainly there. So room there's

to In terms in labor, vehicle. hours productivity not I'd say wanted terms the we what is workforce be of at now, where right our of is, per

new development that we of the the reasons that for and we're launching that that lines new One ramping we're have principal platforms the up. and activities production the is all

material, but will the of this expect opportunities are we've as to but this so we're the as And there platforms it's once that we've new certainly, really that improve year. there, cost-wise is and launched once bringing not we important some bill market gradually

just be would absorption. in scale more manage or terms on biggest reflective the finally, incur have volume that There's say more cost to in of we of a than to then Joliet those close And fixed margins, anywhere that cost the some that two weighing I is Saint-Jérôme gross operations look that issue plant, base both overhead two overhead, we as up but we'll today overhead probably volume, absorb meaning and Joliet over our much -- Saint-Jérôme plants. on as great in the overhead to plants. or proportional increases the up we to likely we Saint-Jérôme ramp the the proportion costs and production in not already it's

Craig Irwin

Excellent.

is next sales my velocity the North American into the of So market. question really

So you've done an the EPA procure from excellent job vouchers school customers districts capturing in vouchers, programs. your the supporting there to out

can those potential tempo into loaded we for So about you sort North those is to the by heavy [indiscernible] on seen closer the Or the that talk that see uptick OEMs And is And back-end a really we've deliveries? of see of the vouchers from of deliveries it possible we the facilitated other pricing market? market? a mid-XXXX? to rapid American some in deliveries expect really should

Nicolas Brunet

purchase are in think working soon we're that. still the as ready clients as orders, them to, to them. deliver correct And get And EPA can units, to the referring is in of looking those we the terms to units. about EPA it you the phase first and XXXX. we very units objective -- case. that. and before October all think is of to getting if But way which those at to it's I clear general, deliveries clients that our was make can go deliver And the we're the me take Look, what well are were I want not

an the going As deliveries think mentioned, to be to important the cadence opportunity I delivered. do quality I of product really, and more. is be the what's But there's going of most that's to

do our XXXX. that lot those U.S. to deliveries than I on same time And we But the in be quite quarters. to quarters. coming book will objective word gradual. use mix our The the few purchase order the than change At do a sooner for gradual had it's it intention that mean U.S.-driven the of more cadence we we it's few -- very time, the has units expect so And delivered much become over proportionately the over past was and

Marc Bedard

were question Craig, buses? as you Or trucks school on to what's well? your alluding

Craig Irwin

to on be but everyone next My what that's trucks, right now. know trucks. is watching on useful is going would to school It be question on bus,

So...

Marc Bedard

well can increasing and more EPA we a And you of there Look, We've was for we to. competitive competitively Essentially, think think say the we're could less, do do It be expect to probably can prepared in need -- EPA, as an well with part is we much It pricing. leveraging though round, to groups first for focus, hasn't Canadian which another that. asking Craig, Okay. it the market talked -- when factor well. mean, the your and think talks -- I become we well. feel will we yet, I third-party funding. sort done well quite on to round the second very as in been of I'd we we that apply to apply of question that it about

Craig Irwin

that I I could ask have. And if another, truck question the

us color plan. Class But outsized and a word. quality customers' Could have that shipping the LionX That's of potential good interactions. the to usually for Class So you're that? you now in your in IRA, customer pretty subsidies experience give maybe the both orders, then change the attractive but LionX thing could it [indiscernible] stimulus pipeline, less X real-world and are is X is hands. a funding, some the not around those And seems and tends

market? for X substantial Class something in X Class flexibility You've this to this there address out it about you Is talk you got would support and Could year. consider? both X planned the for Class

Marc Bedard

We Craig. in customers plan cover where now, for will Thank you, is have of medium which our the duty X, a and is Craig. Class for options market. X many not the that feel lot Class we a

X. trucks really payload matters the can that that And without with those lot special you do also they Class the can drivers drive what add operators, they X. payload those is And of most a with matters. For lot and license, of Class can this it's a this

decided decided really truck go and we Class the proposing you're now. with lot to the this there's away And we've close feel medium and X, heavy to Class market stay And duty of for that the I we've that a very trucks getting market where of to it's right purpose-built So OEMs from. now. are very that a is where now. duty mean, potential is market right really and X lighter few the crowded a

So that customers' OEMs only trucks. our out there one to proposing we're electric the purpose-built of are

X. Class on market huge So

many is with You're are this truck feel absolutely the Craig, a changer. pilot that And interest. And Class operators, of fleet mean you let's it's or probably looking fleet. almost, right discussions whole increased right. they We an operators, But we those delivered And well as I we for them this the We of really at were say, the Class for X X. electrifying now. most mean, earlier. and well. about talking game see ACF going saw is I a the

of a starting it's states a will in the follow we're major lot and with game doing. what of regulation New XXXX. the the provinces is the changer in California. past, where And And a like Canadian with ACT, looking at when California ACF, lot

start year, to have I buying it's in So it's operators the really trucks next tomorrow. early California. electric mean will

finally were game happening. real expecting this this a feel is to this happen, we and We And is changer.

that we X the by X the Class we and week with well product straight we are and when as year looking So be tractors last Class lineup we A Class at the will -- X of well. Class the buddy as unveiled the have, you're end the the that unveiling

we line feel have promising. We full products of for those And a operators. very it's

Craig Irwin

are customers one the us and the LionX of rolling you operating of fleet on LionX squeeze their number just right could that's in or approximate the size trucks. total Can trucks the that I remind now?

Nicolas Brunet

Yes.

to out XXX purchased about clients have I We than bulk have with there XXX mean, the clients, who trucks of XX less units.

Craig Irwin

the on congratulations progress here. Well,

Operator

of Capital question next of line Tamy from Our comes Markets. the Chen BMO

Tamy Chen

had the related I Bus Program. First question to Clean is

of they're purchase some the what the the XXX So -- we're like you the with here? you requesting length for? know amount about know orders, Do said Do delays you of what EPA. delays talking now requesting are X/X

Nicolas Brunet

I'm way of EPA really delays Tamy, is clients, the all to the the XX. allowed referring August of X/X say we When units, to and Yes. the latest the go number

And clients XX. August charging related to infrastructure. for largely -- the were having the appropriate And installation some delays all those to they of don't of contracts have the go

that just out. a of matter it's figuring So

so way And of extensions say all yes. anywhere end from the go the May of sort I'd August, to

Tamy Chen

it. Got

Okay. far but were then earlier, any quarter first question -- awarded you've And been from my this last bus apologies of in I this if deliveries from so the missed what unfold the Clean you of rest over can it bit a in about you Bus to your expect talk this little Program? And relates, the to deliveries bus particular, the as how year round? is

Nicolas Brunet

Yes. Really, a units just very from program. of the number EPA small

you mean to I faster getting diesel questions, client same So the timely about quality than program answer we program, phase around and to the has of bus bottom the ready was orders, be as delivery is second to At and is of this one positive and timing rapidly and heard look we phase deliveries of on to these whatnot clients selling may requirements in We're with possible. kicked do experience. by scrapping first me purchase vehicles. What XXXX. vehicle, the deliver mentioned But for working have allows going time the be the to I want materially. it time, this to to the about a line all other the before as our in to take the deadline. hasn't of we're the prior deliveries as or the deliveries, October be of those the a but -- objective done around

Operator

comes Levy of line Dan Our of the Barclays. next from question

Dan Levy

just side. if missed I ask the this to on late. earlier, CapEx wanted jumped Apologies But I I on

clean recently, Canadian allowing for government think credits is additional tax for some be manufacturing, the pretty budget would nice CapEx piece. tech offset on the I which a

talk might any can just and you there's CapEx? maybe clarity So what offsets have on here further if you about

Nicolas Brunet

investments EV -- to related tax Yes. budget, to place take manufacturing, battery after yes, it credit, manufacturing. we've the the XX% Dan, version federal discussion that I the X, so for there's in that investments believe, refers XXXX. that -- the seen January of investment was And

post thing that So least, be At one, same drastically would it expansion. by one to into. option it's this very time, is made the clear an At very for XXXX much we've we're it imagine, something, looking until, -- our CapEx future plan, importantly, is morning number with build very as the could don't we order that expansion our our capacity two, number works intention to justified reduce plan it's and it's book, the CapEx, and situation. liquidity you

of they're counting to a -- current given it's talked restrictions about. just right apply, now. looking timing just not it's investments, want into but I something to program on yet our course, not We that we're so we're And the this would

Dan Levy

Got it. you but just order trucks if And within book, mentioned apologies it could you down. are then are if obviously, but up, earlier, buses address the again,

movements about maybe the within you the on order some of truck book the side. So just talk could

Marc Bedard

Yes, now slower honest. what be is to the very time, same exciting. seeing than expected, right at it's But we're

out trucks have We there.

a lineX have be A and tractor of the exactly -- unveiling the be increased expecting end of going the the before of purpose-built see have the customers, LionX full we the thing We as with we is tractor with to to And feel market launched trucks. we same well. last year. the the do at lineup of it's And LionX, week interest. lot

is work this COVID it side, is timing a now. the for Craig, years is and crisis I chain think mean this I within we period and we as So supply exciting, the bus off. earlier. was is our this our finally I game working all And few the opinion. And the feel you the and the was that if X, us ACF And now. referring with about crisis telling on years, really right take took changer And this starting really feel we X to remember in to last school

California, ZEVs million ACF road I XXX,XXX group, and over help in to going by regulation over subsidies this are there. subsidies in of up is ZEVs the as out There's mean, is X.X seeing on And So side. just on we're they this some us. California great. only to XXXX expecting are really the the lot there And XXXX. where U.S. now And by the Canadian side. CARB taking There is have subsidies saying this some that are a well. new on

is now market. in the trucks ZEV respect some electric, or OEMs to offering lineup So And with have positioned it's And that well of we than full don't right really we're to of we now, -- choice hydrogen. purpose-built a very to feel ZEV be a have electric it's any this capture going California. with the

Dan Levy

that. could a a if get I squeeze, And Great. on follow-up -- just

Just to fleet, in And timing to a the take what of production? just is order does convert clarify, for those we've seen fleets eventually long an flow then typical for and cycle typically meaning -- orders to pass. from how ACF to orders it

Marc Bedard

manner vehicles are timely while electrify first of it's but being infrastructure right a always always It's are specs planning well. the operator time. we're lot especially really to lot a mean, it's the well, the of they work the as the selected, And Dan, fleets. the also in operators to charging takes your are fleet the lot talking large very installed fleet. OEM to, team -- that a that being are on and I right and they on truck takes order And between the them, And sure a it of make side, a

mean, So remember, operator way I adapt good really us the mean, around. to a job, way a other it of mean to for and you takes and some probably the I it's do not our time, thinking, to

that's first order also. on school always that's well lot the very you repeat bus takes the And orders the order reasons why And see one the the many so growing of side. a reason longer. is book So

to truck expect initial we We speak as now. working order right the a same And happen for those the thing truck operators side. on are the on we lot of

Operator

Desjardins line Our Michael from of the Kypreos of Capital. next question comes

Michael Kypreos

the issues. release front? had press gotten updates Maybe your chain On issue, has mentioned quarter, difficult? that that have just you more what on still an any last update sections versus supply continued What some improved? And

Marc Bedard

the the Yes. the rest done have challenges, still of year. Michael, supply thank chain at better point. It's still past. lot we're issues chain those in Yes, We're not supply it a those expecting than with challenges to was this for you. mean, I

we've United You that into I done, probably to the the because been this. of think, been with this crisis, way because redundancy but doing one very been the suppliers. supply also We've of States. we've the our remember thing of chain we've able is doing deal well And expansion

And the more sometimes two most of suppliers both and right for two of least we have well. we So the have now, border. lot a components, on suppliers sides as suppliers of at than

it's of a that feel we becoming of challenge this remaining be the less but year, still So for and will issue. less the an

Michael Kypreos

last And a timing And August liquidity and Perfect. did you cash would ATM lot. front, have What just quarter. stimulus. options the of the What on maybe until on issuing of picking available. would shares, in liquidity? terms That your or drop helps maybe for prefer from the the in maybe upfront if the your payments priorities some EPA in order would Canadian other see other be terms the you you of

Nicolas Brunet

quarter. $XX liquidity, August. We million collected the an of cash for have Yes. go those, $XXX clients requested program. help. of was $XX $XX the that million for the quarter loans of million $X half also extensions collected facility. the million payments. $XX on to the at government EPA $XX as campus are that that. million in subsidy end EPA way the and of just in as expected were at we credit received million value can orders owed all R&D first about at in Michael, We -- and the of the Look, end finished on the X/X on to That I'd say a part has of available the total. Certainly, the We've million X/X Recall It's since

payments. some expect those continue of to receive to We

in little specific going. program objectives an The about It order. You get the after these they they timing. XX the stated fund process asked of talked about bit as EPA programs a time takes to usually to -- days

So we're pretty it that happy started has already.

year. of Campus And we this government And on our have during our additional Lion that with program. $XX conditions, and this mindful a the then the the requirements, but be monitor view evaluate can't That precise on continue We'll say a raise the timing about position varying different we answer have of we fund to our factors. we will more we'll financing million said that said, There's we'll you and give in months. then dilution. some of liquidity, stage. of financial the have, ATM capital will feel at you But upcoming I flexibility, capital XXX than remarks, be remaining going be in about turn a CAD we we which to of mentioned, instruments. as I loans, can't million mindful prepared runway. precise $XX to our million be sources, I terms expect significant opportunities -- I of market and to lot

Operator

you. Thank

Ms. at additional conference Adjahi no are I'll to closing over questions there waiting this the remarks. Isabelle back As for time, hand

Isabelle Adjahi

thank you today. everyone, attended can Well, may then thats who where [indiscernible] us. you, if you Thank you. have [indiscernible]

Operator

concludes Thank you conference. for this today's gentlemen, Ladies and joining.

now may You disconnect.

Lion Electric (LEVGQ) 9 May 232023 Q1 Earnings call transcript