Envirotech Vehicles(US:EVTV)2019-02-14 02:24Financial Data and Key Metrics Changes - Sales for Q4 2018 were $1.2 million, with full-year revenue of $5 million, which is the same as 2017 [7][27] - The backlog as of February 8, 2019, was $10.1 million, a 17% increase from $8.6 million on December 31, 2018, and a 166% increase from $3.8 million a year ago [7][21] - Net loss for the year ended December 31, 2018, was $11 million, a decrease from a net loss of $21.9 million for 2017 [34] Business Line Data and Key Metrics Changes - The company launched a new product line for zero-emission all-electric trucks, cargo vans, and chassis in late 2018, which is expected to contribute significantly to revenue in 2019 [17][21] - The backlog and future pipeline are attributed to successful marketing efforts, including Ride-and-Drive events [7][8] Market Data and Key Metrics Changes - The electric vehicle market is expected to benefit from significant funding, including $10 million for rural school grants and $75 million from the California Energy Commission [22][24] - The school bus replacement market is estimated to be about $35 billion to $40 billion annually, while the class 3 through class 7 truck market represents a much larger opportunity [20] Company Strategy and Development Direction - The company aims to meet or exceed analyst revenue estimates for 2019, driven by a current backlog of $10.1 million and the new product line [21] - The strategy includes direct sales to customers for the new trucks and vans, allowing better control over the sales process [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving supply chain issues by the second quarter of 2019, which impacted revenue recognition [37][38] - The company anticipates profitability in 2020, with a potential for positive results as early as Q4 2019 [25] Other Important Information - The company had approximately $7.7 million in cash and cash equivalents at the end of 2018, providing sufficient funds to reach profitability [25][35] - The company is actively engaging with various states for funding opportunities, particularly in California, New York, and New Jersey [47][49] Q&A Session Summary Question: Revenue slippage in the quarter related to third-party suppliers - Management expects supply chain issues to be resolved by the second quarter, with hopes for resolution in the first quarter [37][38] Question: Analyst estimates for 2019 revenue - Management indicated that the $2.1 million outstanding from a standalone project is not expected to impact overall revenue forecasts significantly [40] Question: Class 3 trucks and cargo vans - The new product line allows the company to engage directly with customers, enhancing control over the sales process [43][44] Question: Geographies for potential subsidy funds - California is the primary focus for funding opportunities, with New York and New Jersey also being significant [47][49] Question: Involvement with Federal Express and UPS - Management is open to exploring partnerships but is currently focused on developing their class 5 vehicle [53][54] Question: Integrated motor/differential trans axle technology - The company is interested in exploring opportunities with integrated systems but is not currently pursuing them [55][56] Question: Battery technology preferences - The company uses both pouch and cylindrical cells, adapting to customer needs without bias [58][60] Question: Sales process improvement with electric vehicles - Management noted that as more electric vehicles are deployed, the sales process is becoming easier [61][62]