GreenPower Motor Co(US:GP)2022-07-08 20:14Financial Data and Key Metrics Changes - Recorded revenues of $17.2 million for the year ended March 31, 2022, represented an increase of over 30% compared to restated revenue of $13.3 million for the previous fiscal year [5] - Cash, including restricted cash at year-end, was $6.9 million, with inventory increasing to $32.3 million from $12.5 million at the previous year-end [6] Business Line Data and Key Metrics Changes - Revenue for the year was generated from 93 vehicle sales, including 18 BEAST school buses, 11 EV Stars, 4 EV Star Plus, and 21 EV Star CCs, among others [5] - The gross profit margin for the fourth quarter was negatively impacted by several one-time costs, pushing it below the historical run-rate of 30% [6] Market Data and Key Metrics Changes - The school bus sector has become increasingly attractive due to new infrastructure laws enabling schools to purchase zero-emission buses at no cost [10] - GreenPower has expanded its dealer base across the national market, with plans for further announcements [11] Company Strategy and Development Direction - The company is focusing on dedicated sales strategies for specific sectors, such as the truck sector and school buses, to enhance outreach and effectiveness [18] - GreenPower is entering the New Jersey VIP program, similar to California's HVIP program, which is expected to provide significant opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow in the coming quarters, driven by increased vehicle deliveries and inventory turnover [30][40] - The company anticipates significant growth in vehicle deliveries, with expectations of exceeding 1,000 vehicles annually within the next year [30] Other Important Information - The company announced the acquisition of Lion Truck Body, which will enhance its ability to support the truck business and reduce lead times for vehicle bodies [31][32] - The acquisition allows for the development of truck bodies specifically tailored for electric vehicles, improving efficiency and production times [35][62] Q&A Session Summary Question: Is the increase in deferred revenue related to the Workhorse contract? - Yes, the deferred revenue increase of about $6.5 million is almost entirely due to the Workhorse deposit, which will deplete over the contract term [49][50] Question: What is the variability in the timing of deliveries for the Workhorse contract? - There is a mechanism for monthly variance in deliveries, but the total will reach 1,500 vehicles by March 2024 [52] Question: What is the demand from the New Jersey voucher program? - The majority of approved or pending vouchers relate to the 22-foot cargo vehicles, with ongoing sales opportunities [53][54] Question: Are there plans for further acquisitions to integrate the supply chain? - Yes, there are opportunities for further acquisitions to enhance integration, but the focus remains on cost-effective solutions [59] Question: How will inventory and working capital be managed seasonally? - The company expects to see quicker inventory turns as production cycles are reduced, impacting inventory levels positively [66][67]