VEV - Earnings call transcript Q2 2021

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Operator

Greetings, and welcome to the Vicinity Motor Corporation Second Quarter 2021 Corporate Update Conference Call.

As a reminder, this conference is being recorded.

Before we begin the formal presentation, I’d like to remind everyone that statements made on today’s call and webcast, including those regarding future financial results and industry prospects are forward-looking, and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the Company’s regulatory filings for a list of associated risks, and we would also refer you to the Company’s website for more supporting industry information. I would now like to hand the call over to William Trainer, Founder and Chief Executive Officer of Vicinity Motors Corporation. yours. is floor the William,

William Trainer

Call. Thank you, for you Actually, afternoon Update morning, to And of you. Good Conference Corporate most XXXX welcome Second everyone. I’m the good Quarter Operator. pleased today to

authorities sales status The second quarter XXXX operators first from delivered prove XXXX and traction was than the market with we more in and months XXXX. our momentum, This of continues attract our buses ongoing we highlighted XXX% six reoccurring having large by our of transit satisfied ongoing flagship of did customers. leadership, long-term as in to orders base

VMC be are we next announced North Class well and gain land as partnerships long other the momentum graph generation We is our X background. are to standing EV exciting in our traction EV well as The pursuing to vehicle underway, market launch positioned new transit to agencies. products, share our we EV including of EV, for strong XXXX are our electric Lightning breakthrough through American truck, opportunities accelerate with leveraging Facility the our and

a floor to industry. increasingly utilize is its forward Company transit step electric proven fully low Our top systems Editron, with world-class EV minded of Development bus key integrate includes from and technology division of partnered readily sustainability business purpose a and partners, mid-sizes, drivetrain transit and BMW. to us technology components huge design systems. world-class from Recently, as sellers for allowing Danfoss a public proven available such parts we production built the battery with Danfoss our

current at second EV the to bringing million a over $X EV received order for from our for we transit, valued Lightning quarter, Calgary XX. orders buses XX buses the Vicinity During total

X fourth a trucks under development second VMC BMC The applications XX,XXX rating, vehicle technology sold in expect VMC electric scheduled XX to into we size expected provides sign X the expect Class truck begin medium electric All of operator a dealerships commercial XXX a truck and entered available medium will plans to XXXX. lot customer GVWR The the North market to usage XXXX. to Class a the high XXXX network America. is EV the truck In initial appeal rating. over In a quarter, offered in with to smaller utilize standardized The line new of production received orders pound X with quality design with private be the the in quarter we Designed environmental and Vehicles additional support is for orders duty a Class first to daily miles. duty will July, with order a months of proven throughout truck industry delivery the ahead. deliveries existing to soon. from truck fully the adoption. electric in announced urban an trucks, medium We Class duty the cab later rapid Columbia and EV British with versatility X of to the a solutions of be charging technology add in we customers footprint. design, more trucks through will and popular enable multiple applications commercially utilizing maximum with be

State level strategy Manufacturing smoothly, in early very Last Headquarters, running mark to ceremony a to our are XXXX. Plant construction Washington U.S. the demand. commence successful ground-breaking operations month we continue our and operations of expected we to to with had of new in Our meet to a continue refine

of Roman Companies, State our Governor distributor government ABC local Inslee, Jay by joined President Cornell, partner. U.S. are officials, of We and the Washington and employees, Group state including

a from grant, $XXX,XXX the we build our quarter, additional to the line. in out assembly receipt of assist of support for production of economic our EV received of capacity development with confirmation During State the Washington

place, facility U.S. manufacturing the California strategy that state for states statewide the a solid diverse to selected growth have the the right in Washington are Vicinity as purchasing directly the spooling We buses of contracts and our from Company’s second transit bus gives portfolio. up. quarter, agencies purchase In

expect We contract to similar states wins in to U.S. other months see come. in

Canadian Use Program to both EVs our support British we our adoption Vicinity customers Columbia, in rebates Go to Canada, and offered EV through VMC received of Speciality XXXX EVs trucks. spur the For the our $XXX,XXX Vehicle from Incentive Government $XX,XXX with CleanBC for Lightning bus to Electric

shareholders celebrate a quarter, the introduce to a institutional our to investors. Company uplisting Finally, to significant with of our broader milestone we completing during our the NASDAQ base

it to I’ll for XXXX. over financial to XX, ended quarter with that the Dan results Dan. the review turn Now, June

Dan Buckle

release today. measures. Thanks, closed full results. The in afternoon, is that my non-GAAP I Adjusted across after Good Wire keep will review other will I to financial William. breakdown a in to quick Please press of be everyone. and portion our markets Regulatory the and our Filings, referring note the EBITDA available

$X.X in Gross or of in which in buses increased XXX of compared quarter revenue compared as quarter. profit XXXX. as SEDAR. ended ago the EBITDA months ago compared six XXX% year of The same ended XX.X% second revenue, six Working million or to other months capital, delivery $X.X the compared $X.X of buses XXXX all million of the repaid ended same of a a XX first months half as the EBITDA million our June XXX% quarter profit loss six XXXX has the million for warrants. totalled $XX.X months half quarter, XXXX, increased for a was XXXX. $X.XX June provided compared strengthened the grew warrants to six gross second ended million to by having in XX, the by XX, Revenue million ended was June an the higher the $XX.X June EBITDA for for or to six measures, in an exercise. the XXXX, to - second available in XX of net our negative XX, profit all the the loss months primarily the the $X.X for quarter $X.X Company’s strong $XX.X please per share undrawn, six and grew in Revenue the We million, compared second loss a the quarter with positively compared XXXX to $XX.X at for the in decreased Adjusted to million increased affected of outstanding of million million XXXX. demand quarter million balance increased to of of million ongoing first credit buses in XX, June increased Net number $X.X as is strong million margins Company Financially, profit to as XX, significant compared compared Gross $XX.X capital revenue XXXX, XX, XXXX. of to million, million was for Working $XX or million, million to $X.X of loss months $X.X Net the Company point ended June for $X.X and in the of June December realized revenues Adjusted quarter. XXXX. profit is share XXXX and the $X.X Adjusted buses debt ended six of for six those XXXX. of cash, share, were sold due ended X.X% loss delivered the compared expected of XXXX the to margins $X.X primarily non-GAAP buses to at second gross quarter of XXXX generally Adjusted in to robust mix of buses XXXX. $X.XX The with of deliveries all quarter million by the to or $XX.X EBITDA XX, XXXX, XX, into revenue EBITDA with in the driven on For net revenue or quarter to XXXX The the XXXX. compared XXXX XXXX. the calculation $X.X of in as exercise to of refer for June a of a to months in position. income to sheet facility of and X.X% year million, June Adjusted $X.X a XX and second XX, sales million XX.X% for negative—or QX XX, months facilities second MD&A, $X.XX by the as sorry, liquidity XXXX.

to which well growth pass very positioned and offer sheet, have the fundamentals some and we of I’d now back will profitability. remarks, question-and-answer strong like We balance begin after We William our positive. to session. profitability, future our closing for remain to a it operations are regained

William Trainer

those Dan. Well, great thank results for you

well XXXX, into shareholders. value we to for our long-term ahead Looking incredibly are create positioned

We a EV, transit trucks. Lightning growth forward for of the medium expect manufacturing upon plan. successively in year-over-year focused we our more and XXXX launch remainder all thank VMC business term, agency sustainable create our our products, order and you empowering new new near XXXX announce Vicinity book, to shareholders and transit completing in. customers system. look I I new see public our updates on U.S. with are drive plant, our new future our for intensely orders delivering throughout innovative duty electric securing to calling to as the execute providing I

over to session. like Operator? to the our the begin to call I’d question-and-answer Now, hand Operator

Operator

you, Thank William.

with B. The from first please Chris comes go ahead. question Southers Riley,

Chris Southers

to the a guys you be that there vehicle about on? end beyond question bus additional here. the and guys, platforms? between Hey, looking Class other Then commercial are Maybe X part commonality start, my components that similar just you platforms, and talk lightning the for could utilize taking guys can potentially thanks working are markets you here XXXX at bit

William Trainer

ahead Yes, engineering tried the Chris what product, work, that go with has there’s bus. we thanks When first your outlay, develop develop to done that’s lot line to a of EV you truck the go question. in we’ve work with lot a a it. have into you much capital Yes, and of great

system, what to So, take of onto truck. done and utilize on on we it same really the sort we’ve put the wanted and to and use operating the bus

can product. looking developed We’re we and do our we at, consistently with what where can,

vans, where take products platforms. we all at lot looking got them put and we’re whether the things have be One there, pound RVs, of now thing best other that on XX,XXX fit? looking There’s right usage of Where into bus. and can of our that step trucks, and is see to products our we’re our chassis it EV technology a GVWR the that out we’ve a work actively we can

So, thank you that was a question. good

Chris Southers

of kind U.S.? same commercial Then maybe the there? kind you at and looking partners? sales plan vehicle you to the platform other on in service strategy do distribution the Great. the side, utilize What’s of Are

William Trainer

so the set bus up. Yes, on side, we’re

very ABC network. The strong you distribution the the, different—it when the different they’re We of truck companies, a is But have dealer of group nationwide. at with a type a is? look has what partner at truck

there’s Class putting dealers these done competition with marketing for the we’ve amount is a networks of coming X of existing some vehicles, the this—with annual market the the it’s our with the truck a over overwhelming and in you’ll our trucks. that out The we news our initially—with trucks that the what that have. started in In dealerships, those here, been have dealers. announcing is So, with truck, interest space sales releases we’ve in new the U.S., lot we’re of through we’re near ourselves and future just XXX,XXX see dealer and we not the that new

with really dealer think I us. very, the and to there’s setup, for there’s, some that looking opportunity we’re I So, well here we’re network, think positioned, very great

Chris Southers

It’s last just for great, me. here one and then the

kind become a sales meaningful puts about those to margin here, looking case talk margin Looking when to at the sales ramp? the as at EV a today profile the of piece start little we from perspective bit in the can of you versus a start be more should

William Trainer

we’re at then look looking question to good Chris. higher you, Margins with EV sales. and better margins we we’re our into margins. see, very EV here see sales. and EBITDA, well. the Yes, considerably what EV stronger equate margins, Yes, business business, bus the those has Those higher higher that’s Thank are than expecting as when

Chris Southers

I’ll hop queue. guys. in great. That’s the Thanks

William Trainer

Thank you.

Operator

Chan with comes go Bruce Our next ahead. from Stifel. question Please

Matthew Milask

this Bruce. everyone, Matt Hi, on for is

William Trainer

Okay, hello Matt.

Matthew Milask

color packs, capacity some to truck wondering the if strategy the secure could was this battery side, I you ability give is from guys there? of you’d and buying sort comfort on be fully the your with level commercial assembled

William Trainer

to down is deliver have two that the first exposure have we Yes, we that that contracts supply place our battery of cuts in in case component in supplier right that strong now. suppliers two have a strategy the has for but been—on chain timeframe our some we that major we we have every the want, supply that can’t strong

Our strategy side. little different a been has the battery bit on

look suppliers batteries you be at an at the we long-term market go and positions, in of the—they they of battery we are look Safety, or back ratings having have to the supplier one, be the coming a but have—that should have priced the selling of supply they really in when from when as impact be battery looking—when there’s to and have we exposed rating, market prices safety battery electric a changing are the see that the the we field the high major opened we we is suppliers not the issue, battery, personnel to key should safety want one (inaudible). that want their changes, the for need as be what and in suppliers, to want We’re but the also the back and if the want up pack. choosing wants and we long-term warranty don’t voltage battery what is up market, in battery batteries industry place. they They the strong to as see. a points what That’s and follow market, conditions coming the go down vehicle, well to

Matthew Milask

color type the do plan ask truck or the well, a this—will can strategy sort talk production municipal these little produced preserve You EV Can to of bit in the there? by thing, I there. for about for another America? you If on Thanks know, staying the you Washington that be Great. mandates? as capacity side. Is

William Trainer

we we have Washington the want a any we trucks without State, No, facility what facility do from well, really to deliver State down showcase our to have and when want we to our consider and can in we deliveries. there, be campus we bus no in so down facility Washington the impacting to as capacity

Matthew Milask

of required sort sort final Any truck color on of me what leads capital there. follow be will jumpstart the up Great, production? to investment to really

William Trainer

at Our and running. development into any really initial side into bus higher been, put expenditures capitalization what not outlay really the has been getting has the we’re truck up and looking

Matthew Milask

Great. Thanks a lot..

Dan Buckle

Thank you.

William Trainer

Thank you, Matt.

Operator

this call closing back time, I’d now the concludes William Mr. for to At turn question-and-answer this like session. over Trainer our remarks. to his

William Trainer

happy of We MZ out continuing you, joining today. Thank Operator. Group for more our call you and to I’d like of on conference forward than IR to Thank the unable firm please to we’re any to If you to answer thank progress growth. reach assist. who’d questions, look each update be to you. earnings ongoing our

Operator

Ladies your conclude and for does gentlemen, teleconference. Thank this today’s you participation.

a You wonderful and may have this lines disconnect time day. your at

Vicinity Motor (VEVMQ) 13 Aug 212021 Q2 Earnings call transcript