Vicinity Motors reported their earnings this week.  They certainly need many, many batteries!

There's so much to know, I'll just post ...   Also below this, I'll repost our Electrovaya supply agreement for the Newbies...

Vicinity Motor Corp. Reports Second Quarter 2023 Financial Results

Monday, August 14, 2023 4:05 PM

Vicinity Motor Corp.

www.vicinitymotorcorp.com

 

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Production is Now Underway at the Company's U.S. Manufacturing Campus in Ferndale, Washington

Deliveries of 34 VMC 1200 All-Electric Trucks Generate $4.8M in Revenue at Attractive 23% Gross Margin Profile

VANCOUVER, BC / ACCESSWIRE / August 14, 2023 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today reported its financial and operational results for the second quarter ended June 30, 2023.

Second Quarter 2023 and Subsequent Operational Highlights

• Order backlog as of June 30, 2023 exceeded $150 million, the vast majority of which are for electric vehicles.
• Revenue totaled $4.8 million in the second quarter of 2023 with a gross margin of 23%, after removing the impact of positive warranty adjustments, primarily driven by the delivery of thirty-four (34) VMC 1200 all-electric trucks, which carry a higher margin profile than transit buses. Gross margin was 33% including all warranty adjustments for the three months ended June 30, 2023.
• Secured strategic collaboration with Lafarge Canada, Canada's largest provider of sustainable and innovative building materials, to electrify Lafarge's truck fleet with the VMC 1200 all-electric truck to help reduce their carbon footprint.
• Received purchase order from Transdev, a global mobility leader, for forty-two (42) Vicinity™ Classic buses, illustrating Vicinity's continued Canadian market leadership in the mid-size heavy duty bus segment.
• Created additional financial flexibility during the three months ended June 30, 2023 with a new $9.0 million credit facility with Export Development Canada, complementing the previously announced $30 million credit facility with RBC and EDC, providing additional financial resources for working capital and expenditures related to the commencement of production at the Ferndale, Washington Facility.
• Exhibited VMC 1200 all-electric truck at Advanced Clean Transportation Expo, showcasing an upfitted truck by partner EAVX with a Reading truck utility body.

Management Commentary

"The second quarter was highlighted by the successful deliveries of thirty-four (34) VMC 1200 electric trucks to our customer base, culminating in the long-awaited initiation of production at our U.S. manufacturing campus in Ferndale in August," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "The VMC 1200 has proven to be an incredible success, leveraging our strong history of automotive experience to target an underserved market with a compelling product at an extremely attractive price point, which is further reduced through Canadian federal and provincial rebates. The VMC 1200 carries a healthy margin profile with the year-round purchasing habits of the differentiated customer base helping to smooth the traditional uneven revenue of our established transit bus business. Overall gross margins for the quarter were 23%, after excluding positive warranty adjustments, which is higher than our historical averages for quarters with only bus sales.

"The VMC 1200 electric truck has multiple applications - for example, it was recently chosen by Lafarge Canada, Canada's largest provider of sustainable and innovative building materials, to electrify their truck fleet and reduce the associated carbon footprint. In addition to delivering immediate cost savings and contributing to carbon emissions reductions, the VMC 1200 qualifies for a federal rebate nationwide of CAD$40 thousand from Transport Canada as well as provincial rebates. We are eager to ramp up production in our Ferndale facility to address the significant demand for this exciting new product.

"Turning to the transit bus business, our strong legacy of North American market leadership in the mid-sized heavy-duty segment continued to shine. In the last 90 days, global mobility leader Transdev added forty-two (42) Vicinity™ Classic buses to its fleet. As supply chains have improved, we restarted delivery of transit buses to our customers in July of 2023. We believe our ability to offer both legacy and next-generation electric vehicles in a variety of classes and configurations positions us to address an incredibly wide variety of customer needs.

"To support demand, our new U.S. manufacturing campus in Ferndale, Washington began production earlier this month. Although finishing the facility took longer than expected, doing it right and not rushing will allow us to more successfully tackle the fulfillment of our growing order backlog which, as of June 30th, exceeded US$150 million. The facility is designed to meet our current and future production needs for both buses and Class 3 VMC 1200 electric trucks. With a new $9.0 million credit facility for Ferndale with EDC, complementing a previous $30 million credit facility, we now have greater financial flexibility to invest in Vicinity's next phase of growth.

"Looking ahead, with improving margins, a growing sales funnel and record backlog, we are positioning Vicinity for a transition to positive adjusted EBITDA in the second half of 2023. Market fundamentals continue to support our business strategy, with government incentives, corporate sustainability goals and declining cost of ownership all pointing to surging EV adoption rates. I look forward to providing additional updates in the months to come as we continue our rapid pace of operational execution, all with the aim of delivering sustainable, long-term value to our shareholders," concluded Trainer.

Second Quarter 2023 Financial Results
All figures stated in this press release are in U.S. dollars unless stated otherwise.

Revenue totaled $4.8 million in the second quarter of 2023, as compared to $11.7 million in the second quarter of 2022. The difference in revenue was primarily driven by a change in product mix represented by thirty-four (34) truck deliveries in the second quarter, as compared to thirty-four (34) buses in the same year-ago quarter. Revenue totaled $7.5 million for the six months ended June 30, 2023, as compared to $14.9 million for the six months ended June 30, 2022.

Gross profit in the second quarter of 2023 totaled $1.6 million, or 33% of revenue, as compared to $1.0 million, or 8.7% of revenue, in the second quarter of 2022. The gross profit was positively affected by an adjustment for expired warranty of $0.4 million during the quarter. Excluding the warranty adjustments, gross margin totaled 23% in the second quarter of 2023.

Gross profit totaled $2.1 million, or 28% of revenue, for the six months ended June 30, 2023, as compared to $1.2 million, or 8% of revenue in the six months ended June 30, 2022. The gross margin for the six months ended June 30, 2023 was positively affected by expired warranty of $1.1 million during the period. Excluding these adjustments, the gross margin for the six months ended June 30, 2023 would have been 12%.

Cash used in operating activities totaled $9.1 million in the six months ended June 30, 2023, as compared to $0.2 million in the first half of 2022.

Net loss in the second quarter of 2023 was $0.7 million, or $(0.02) per share, as compared to $3.8 million, or $(0.10) per share, in the second quarter of 2022. Net loss for the six months ended June 30, 2023 was $3.1 million, or $(0.07) per share, as compared to $6.7 million, or $(0.18) per share, in the six months ended June 30, 2022.

Adjusted EBITDA loss in the second quarter of 2023 totaled $0.4 million, as compared to $1.2 million in the second quarter of 2022. Adjusted EBITDA loss for the six months ended June 30, 2023 was $1.7 million, as compared to $3.3 million in the six months ended June 30, 2022.

Cash and cash equivalents as of June 30, 2023 totaled $7.3 million, as compared to $1.6 million as of December 31, 2022.

Second Quarter 2023 Results Conference Call

Management will host an investor conference call at 4:30 p.m. Eastern time today to discuss Vicinity Motors' second quarter financial results, provide a corporate update, and conclude with a question and answer session from telephone participants. To participate, please use the following information:

Q2 2023 Conference Call & Webcast

Date: Monday, August 14, 2023
Time: 4:30 p.m. Eastern time
U.S./Canada Dial-in: 1-844-850-0545

https://electrovaya.com/press/electrovaya-announces-strategic-supply-agreement-with-vicinity-motor-corp-for-lithium