VEV - Earnings call transcript Q1 2022

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Operator

Good afternoon and welcome to the Vicinity Motor Corp.'s First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to the Chief Executive Officer, William Trainer. sir. ahead go Please

William Trainer

and to everyone. corporate the call. operator, to update am welcome you first good you, I afternoon pleased conference Thank quarter XXXX

electric first new North vehicles, penetration American only network with of highlighted vehicles. but The new of helping strategic placed distribution XXXX of several orders addition portfolio order dozens exciting by our drive continued of who our momentum, not of expansion the of quarter dealers to all by growing was for

XXXX transition for over the million, mix backlog our to Our delivery vehicles U.S.XX of meet much grew all-electric transit is reflecting to customers. ever needs of in which changing a rapid product

the complete U.S. $XX Ferndale, allowing credit penetrate position by our this cash further electric facility line us Canadian quarter to XXXX built to facility. to EV Our for a providers, agreement a quarter, uncertainty. battery Chiefly, transit provider, steps supply second compliant his of we of are We of fully continued chain facing. chain, shore the of have EV supplementing to funding supply bus VMC eliminating lower market being to near-term headwinds seeing Buy the not with BMW, over nearly other our America balance growing point deliveries has EV growth deliveries the is such secured said, dealer pressures XXX failure up in our Canadian of with within various common the for This is robust suppliers ahead positioned our we To XXXX. of single These production, and American to naturally today first and leading from a That high offering. XXX-vehicle have with many exist. fortified and manufacturers supplemented taken level in to battery the goal half taken ramp with new are some supply from of our systems The facing periods demand through sheet bus supply any as electric penetrate orders first of time shuttle dealers. automotive point automotive fill are pain us steps Electrovaya. truck significantly million trucks our market Proterra, expand Washington battery for focus we up the our base immune gaps our the in and

of our of electrify His Bus, product Gore, absolutely support companies grow In and to among continued Dennis we we global invaluable Honda portfolio, have will all-electric experience as addition Vice offerings. as Engineering, our President appointed executive XX Motorcycles, our efforts, like bringing Mitsubishi as we others. plus Motors further automotive Zero engineering Gillig years from prove innovation experience

several we have Advanced relations the in Transition XXXX particularly fundamentals downturn. the Carbon recent market space operations Logistics EV broader Canaccord at the Showcase presenting investor Expo On Transportation and Ideas Conference, extremely front, automotive seen positive. the active The Stifel Transportation extremely finished Clean just the & & our industry conferences Energy past Conference. in Best MicroCap are remained week, leading and has this investor Planet Wonderland pressure Winter XXXX, Conference of market, we in including The nationally, which

XX, Now for XXXX. results to that, quarter the over our with turn financial I'll review to Dan it Dan? March ended

Dan Buckle

non-GAAP EBITDA refer release the review constrain wire to I note results. a measures. filings in my available other and portion our everyone. that after William. market that is today. brief full in of The press to our and Good closed the crossed I Thanks, Please will morning, regulatory financial will adjusted breakdown

adjusted the MD&A on QX to non-GAAP which SEDAR. refer the is EBITDA available other For please of calculation measures

revenue, components, $X.X $X.XX XXXX product and in loss a a the the $X.XX in XXXX. XX, to $X.X net of in as quarter Gross large and was million same per disruptions million decreased for of million period. of compared compared $XX the deliveries margin or per first delivered. primarily of as million our the quarter $X.X as use Shipping ended operating first year as quarter XX, products decrease and to XXXX U.S. in the portion are million of volume certain operating difficulties XXXX. X% share of compared and supply revenue in by low to compared as the Optimal global quarter $XX.X cash or March the in XX, XXXX the In and of activities March first million has $X.X totaled first the XX% during of in XXXX of driven continued $X.X million cash million figures were to $XXX,XXX margins as into VMC of $X.X addition, XXXX. EBITDA chassis of first an in The as for of to end income to December all million of of March loss first availability quarter in provided $X.X deliveries in Net quarter in or Revenue XXXX quarter. in activities equivalents compared of has million XXXX as the to XXXX. the six $X.X in $X.X the to totaled EBITDA affected Gross delayed Cash Adjusted previous deliveries or share, by quarter was XXXX. buses XX, compared Cash XXXX, ended and adjusted unless quarter XXXX. the ago decreased XX dollars bus was stated. by expected million chain revenue otherwise mix of versus of

sheet the through a Ferndale, its the $XX the balance facility. quarter company financing fund During million to fortified Washington

non-repayable In foundation. awarded grant addition dollar million from Canadian to a $X.X being Canadian Government

in is position. strong company Our a

balance of positioned execute, our to well We operations the a strong positive. have very sheet, and are are fundamentals

revising of availability XX, Revenue parts announced after is US$X guidance of chain, to to guidance remarks, range our VMC million. are challenges, to products timelines supply externally our conditions revised begin the availability our of a to US$XX of question-and-answer in being for stated to million ability EBITDA Lack delays guidance US$XX Optimal we some and session. the we revised is offer fiscal production a to for like now and pass meet affected had previously back which of chassis supply it being to William will chain XXXX, and figures. in our US$X However, XXXX. response November caused range million year million overseas, which I'd have shipping to current been closing previously to to

William Trainer

Thank you, Dan.

prepare network, the second finalize will growth ramp building upon and US in of to supply chain our expansion deliver production. the as million we for we including significant of efforts up foundation of our dealer strengthening backlog, ahead, our continued half Looking $XX

to We updates continue we to look in like customers empower hand shareholders our believe we now And our as to are to begin the long-term for positioned to come. more to public it to period. Operator? incredibly providing I transportation our value create question-and-answer the systems. sustainable months I'd create well additional operator to forward back

Operator

B. from Our question Instructions] comes ahead. go [Operator Chris Riley. Souther with Please first

Christhoper Souther

just are maybe just my taking XXXX? Maybe the lower of as shifting you the here. think bulk activity we just Thanks framing about or here, should And question seeing guide it the to any cancellations what's for store do as on far XXXX? you if by be do stand overall visibility in as helpful guide we I the between where for XXXX product well. And think that for folks backlog, line, as would and could early

Dan Buckle

Dan, Okay, here.

this. on quickly Just

business well. year it CNG the for a in demand But VMC is before problems on of seeing our at projections we're now, specifically on we're EV is not the difficulty products we've right as into perspective, driven orders We're where canceled have right some our in cut we're we This year problems our we with diesel waiting is expecting few parts. this or our not projections. parts line have also what now. back a and this So also of side some [ph] very we to some some What we've in obtaining cut as had we other from new next parts some our there supply driven. are no and of with projections seeing well, cases seeing Lightning, Optimal about those VMC all, buses. third the We're

Christhoper Souther

it. Got

Okay, the chassis the mentioned chains, on key for of availability some as far maybe choke Optimal, added you just supply points Proterra you’ve here, supply. the as battery for

feeling big challenges or So better through that you're other that now? helpful? it you sounds coming to like would be it And what China factors our stuff can are just I related other is But think the walk from right on components front.

William Trainer

has redoing been what related have Anything buying and that's and your seeing in we delay. Will some that Yes, still to what Yes, see seeing the here. pretty that mitigate We trying it the tremendous is by a issues industry amount here. a tried giving of problems hello, there's It's products see the of related bulk industry. seeing hold why been some has and is there. rampant Chris. of to We've kind guidance stock, volumes that been chip but computer much throughout more the chip really we're

Christhoper Souther

can how Okay, year on for about when shaping needs what remainder the it up timing should one, now timing in think of production, provide happen and we -- on last to and you [indiscernible] just comes any still, here? then CapEx update the

William Trainer

shape. The actually on, Well now. roof the We're itself, on. components on good the is inside seeing we're in are going the building building sides

installed. the We paint booth have

scheduled I to go Parts think shortly. here onsite. crane are the is in

see we looking completed. finished June. then coming a don't next month but building getting in see building got pave outfit up to you’ve we like still it, course, any And building two. the or in So the will in of real the slowdown We here,

So start that's you've paving before and up you we have pretty everything ourselves. to see much where got wrapped

Christhoper Souther

to I’ll queue. good the That's in guys. hear. Thanks, hop

William Trainer

Thank you.

Operator

Alliance from Please with comes question next Poe Fratt go Our ahead. Partners. Global

Poe Fratt

Yes, good afternoon.

EBITDA mind just the the cadence the at you're wouldn't you putting $X of rest of just look revenue to the kind with million expectations are Can year, of guidance its the to you the rest in your associated talking for up and million if delivery about range in If about $XX million numbers? what million $XX roughly. those range $X then you talk

Dan Buckle

Dan Poe, Thanks Sure. here.

guidance million Our $X million to and $X $XX million it $XX actually EBITDA. for revenue is to is for million

QX. see So pretty light will, deliveries QX was in for deliveries, obviously we'll QX more

EBITDA for the neutral We to our QX the year. will be of for last the half closer in of and will bulk earnings be then

Poe Fratt

of I Yes and into actuals first out quarter the at netting them taken the the was Great. -- the and year. Dan, guidance of to look incorporating rest

Dan Buckle

sorry, Oh, sorry.

Poe Fratt

and you additional is going that No, then to fill that your at we all distribution out near-term we of, of And be take network actually to okay, standpoint from the have when line you expecting should finish up expanded or look deliver little to running, right. products over the can network, the me over a there? bit know, distribution that’s anything and people we Ferndale the get show

William Trainer

what that know, look And it is, now. take to we meet up a sure out the the building standards we right you good will standards fairly the looking we into have a where of that's should backlog here up starting got to going we've some which healthy up that Yes, see see XXXX. in We’ll really at backlog coming factory. make growth be pretty, that's, we've is coming Ferndale got is to we Ferndale of out intake We'll see ongoing come June facility coming there, inspections XXXX for pretty that get that think this bids they're to July, in for I early be delivered the year. California at, up facility. team the to it's that a out there. then And the water we've here, product But some coming or got

Poe Fratt

Okay.

in your when pushed early to of if that the much over maybe what the the to that the quantify could and that And second the part how of even XXXX? million going second of year at XXXX how you to be And rest relative year were should into about what comments the XXXX some would should XXXX? so realized the -- from look of potentially or half I backlog, relative I half be deliveries thinking of what's XXXX, be of $XX happen over of realized

William Trainer

right. All

say is want avoid or to can get the they pretty year. do revenue this I back heavily quarterly But million weighted our $XX I guidance So giving weighted quarter goal will for year. for to to out backend in be every $XX million coming out.

now. we So that's where right are

million but announcing Our backlog has actually $XX been than we’re more right what that's now.

Poe Fratt

help. for All ready. Thanks your

William Trainer

Research. you. [Operator ahead. with next Instructions] from question Robin Thank Our comes Cornwall Please Catalyst go

Robin Cornwall

I on cost to Thank you, time, My impact? you you that Several you and jumping and We is think the have Washington is last so but question hear had, any your points inflationary have plan. good much construction? had in really about asked seen have I afternoon. that, question first related reflected one the this

Dan Buckle

have inflationary project not that of steel with and too Hi inflation beginning Robin, was in beginning back, of itself we the plan. we the the the cheaper back some locked some much purchase seen the project, the the it in at building when pre locked here. the No, the pressure. of coming people we pricing, We price building and at are we

So the now. pressure has right not inflationary hit us really

We’re on this project. budget, with on time

Robin Cornwall

the What’s so the much of to labor hear plant. Again, skilled about staffing labor? we situation like shortage

William Trainer

host been job a the skill of and receptive got Government with development to groups in There anticipating Well, we've a corporations really down be there. helping fair. large We're a Washington they'll us other you've shortages. economic closely you've been is of Washington, the working And the got got They diverse very very us. State Boeing, down have lot there. down to not set see you've actually

So we're I seeing not think, what anticipating you attractive, to have problems know, offer there. any and is we pretty

Robin Cornwall

production XXXX, of for completed out wise that Okay, vehicles? do you what and clap, anticipate

William Trainer

up with. through some need starting of We in then is ramp and off we're run than we're to to slower think up. units But are what ramping XX you the XX I neighborhood

Robin Cornwall

your did production the lower at And of revenue include Washington levels plant? revision

William Trainer

everything. It reflects overall

Robin Cornwall

many So do does you with from one ordered Proterra, work? flow? BMW you so battery are us got switch manage And can don't with suppliers. basic three so and how deliver, supply, diversified you've batteries they Okay. you've order to saying that clarification, your Proterra, when the How you that

William Trainer

close our and as those producing, stock supply able very close all all have the types. battery State have factory But our BMW But, right the Yes, we we multiple Washington now. secure we in to manufacturing manufacturing we're is can, in take very is order in them. to that the to that be on we've And designed of so that a batteries, is Proterra own with we software very batteries long-term there our said, California, batteries we speak. agreement have being battery Their to where deliveries.

Robin Cornwall

me. all you. Thank great. from Okay, That's

Operator

turn This the our over remarks. concludes session. I question-and-answer closing William to back would conference any for like Trainer to

William Trainer

look than our any update growth. I'd conference of forward please Thank MZ our and you Group, unable earnings thank for ongoing you, on operator, we're to we'll call. continuing to like Thank assist. to your joining and If each of to answer you reach questions, all. to We be our you firm happy to more progress out U.S. IR

Operator

website forward Finally, I'd for and refer to the subject a and more your and including company's risks and actual today's for statements prospects the for information. regarding to gentlemen, those are you and that like would participation. results Thank in on uncertainties to this to financial to regulatory webcast, remind cause results number filings call we associated risks, and everyone made described looking, also those teleconference. be a industry from call. Please industry company's future today's materially could conclude of may differ Ladies list does you the refer of supporting that

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

Vicinity Motor (VEV) 16 May 222022 Q1 Earnings call transcript