Sales and Market Growth - As of December 31, 2022, Tritium has sold over 10,000 DC fast chargers across 42 countries, providing over 20,000 high-power charging sessions daily[4] - The U.S. federal government plans to fund the installation of 500,000 new EV chargers over the next decade, with a target of 50% of new cars sold being EVs by 2030[5] - Bloomberg New Energy Finance forecasts that EV sales will grow to over 40.3% of the global passenger vehicle market by 2030, up from approximately 8.7% in 2021[8] - The Group continues to solidify its position as the 2 supplier of DC fast chargers in ANZ, US, and Europe, with expectations of significant revenue growth based on strong sales backlog[177] Financial Performance - Total revenue increased by $15.7 million, or 27.5%, from $57.0 million during the six months ended December 31, 2021, to $72.6 million during the six months ended December 31, 2022[49] - Total revenue for the six months ended December 31, 2022, was $72,644,000, an increase of 27.5% compared to $56,991,000 for the same period in 2021[151] - Net loss attributable to common shareholders for the six months ended December 31, 2022, was $56,271,000, compared to a net loss of $68,138,000 in the prior year, representing a 17.5% improvement[151] - The Group incurred an operating loss after income tax of $56.3 million for the half year ended December 31, 2022, compared to a loss of $68.1 million for the same period in 2021, indicating a reduction in losses[171] Revenue and Cost Analysis - Hardware revenue from external parties increased by $24.6 million, or 59%, while related parties hardware revenue decreased by $11.0 million, or 87%[47] - Cost of goods sold increased by $26.2 million, or 49.1%, from $53.5 million to $79.7 million, primarily due to start-up expenses of ramping the Tennessee factory[54] - Total cost of goods sold for the six months was $79,689,000, up from $53,457,000, indicating a 48.9% increase[151] - Average cost of Stand Alone Chargers increased by $1,463 per unit, or 5.9%, from $24,608 to $26,071, attributed to inflation across key components and semiconductors[55] Operational Challenges - Production volumes at Tritium's Tennessee facility were approximately six weeks behind schedule as of December 31, 2022, due to global supply chain challenges[23] - The decision to use air freight for fulfilling orders outside Australia and New Zealand increased freight costs and decreased gross margin for the six months ended December 31, 2022[23] - The company intends to expand operations through new production facilities, particularly in the U.S., to increase speed to market and reduce freight costs[11] Expenses and Investments - Selling, general and administrative expenses decreased by $10.4 million, or 22%, from $46.9 million to $36.4 million[48] - Product development expenses increased by $593,000, or 9%, from $6.5 million to $7.1 million[48] - The Group's selling, general, and administration expenses decreased to $36.437 million for the six months ended December 31, 2022, from $46.851 million in the same period of 2021[186] Cash Flow and Liquidity - Operating cash outflows were $78.7 million for the six months ended December 31, 2022, compared to $24.0 million for the six months ended December 31, 2021[71] - Net cash used in operating activities increased by $54.7 million, or 228.2%, from $24.0 million to $78.7 million for the six months ended December 31, 2022, primarily due to an increase in net loss after income tax adjusted for non-cash items of $30.4 million[93] - The Group raised $180 million through three debt facilities during the current period, demonstrating strong relationships with debt lenders[177] Assets and Liabilities - Total assets increased to $298,275,000 as of December 31, 2022, up from $213,355,000 as of June 30, 2022, representing a 39.7% growth[153] - Total liabilities increased to $385,521,000, up from $253,904,000, indicating a 51.8% rise[153] - The total shareholders' deficit increased to $87,246,000 as of December 31, 2022, from $40,549,000 as of June 30, 2022[153] Inventory and Receivables - Tritium's inventory increased to $106.9 million as of December 31, 2022, compared to $55.7 million as of June 30, 2022, due to strategic decisions to increase stock levels[17] - Accounts receivable from external parties rose significantly to $59,960,000, compared to $30,816,000, marking a 94.5% increase[153] - Total trade receivables increased to $57,860,000 as of December 31, 2022, from $28,575,000 as of June 30, 2022, with an allowance for expected credit losses of $743,000[195] Future Outlook - The Group expects to turn EBITDA positive during the first half of calendar year 2024, supported by improved gross margins from investments made in 2023[177] - The Group had a sales backlog of $159 million as of the balance sheet date, which is expected to significantly increase revenue for the calendar year ended December 31, 2023[177]
Tritium DCFC (DCFC) - 2023 Q2 - Quarterly Report