VMC(US:VEV)2024-04-02 22:53Financial Data and Key Metrics Changes - Revenue in Q4 2023 increased to $5.1 million, compared to $2 million in Q4 2022, with total revenue for the year at $19.1 million, up from $18.5 million in 2022 [22] - Gross loss in Q4 2023 improved to $0.4 million (negative 9% of revenue), compared to a gross loss of $0.6 million (negative 28% of revenue) in Q4 2022 [23] - Net loss in Q4 2023 totaled $9.1 million (negative $0.20 per share), compared to $3.8 million (negative $0.08 per share) in Q4 2022 [26] - Cash used in operating activities for Q4 2023 was $5.7 million, up from $3.9 million in Q4 2022 [25] Business Line Data and Key Metrics Changes - The company sold 11 transit buses and invoiced for 71 VMC 1200 electric trucks in December 2023, expected to be recognized in H1 2024 [5][22] - The product mix has shifted towards electric trucks, which generally have a higher margin profile compared to transit buses [24] - The backlog as of December 31, 2023, exceeded $125 million, with the majority being for electric vehicles [18][28] Market Data and Key Metrics Changes - The VMC 1200 qualifies for a federal rebate of CAD 40,000 and an additional CAD 85,000 incentive in Quebec, enhancing its attractiveness to customers [9][10] - The company is expanding its dealership network across Canada, with several new partners announced to enhance sales and service coverage [6] Company Strategy and Development Direction - The company is focused on building out its VMC 1200 dealership network and ramping up production at its Ferndale manufacturing campus [4][19] - The partnership with ADASTEC aims to develop an SAE Level-4 automated variant of the Vicinity Lightning EV transit bus, targeting innovation in public transportation [11][12] - The company aims to capitalize on the growing adoption of commercial EVs driven by government incentives and corporate sustainability goals [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in adoption of commercial EVs is being driven by government incentives and declining costs of ownership [31] - The company believes it has built a foundation for sustainable growth and value delivery to stakeholders [31] Other Important Information - Cash and cash equivalents as of December 31, 2023, totaled $2 million, up from $1.6 million in 2022 [28] - Inventory as of December 31, 2023, was $23.3 million, expected to convert into cash as deliveries are made [29] Q&A Session Summary Question: Any issues with government funding affecting client purchases? - Management acknowledged delays in government incentives, particularly in Quebec, but noted that systems are now in place and functioning [33] Question: Is there still a backlog in supply for buses? - Management confirmed that supply chain issues have improved, and they are finishing up orders for Calgary transit [34][35] Question: Status of the Ferndale facility staffing? - The Ferndale facility is still in the process of ramping up staffing [36] Question: Deliveries expected for 2024? - Management indicated there are 100 buses queued for delivery in 2024, with potential sales of about 325 trucks based on current inventory levels [37][38] Question: Clarification on invoiced trucks and inventory? - The 71 trucks invoiced are awaiting final touches from dealers before delivery [43] Question: Why did the backlog decrease from the previous quarter? - The decrease was attributed to currency fluctuations and deliveries made during the quarter, with the backlog still close to $150 million [47][48]