VMC(US:VEV)2023-03-31 19:14Financial Data and Key Metrics Changes - Revenue in 2022 totaled $18.5 million, a decrease from $41.7 million in 2021. Fourth quarter revenue was $2 million compared to $2.3 million in Q4 2021 [11] - Gross profit for 2022 was $0.4 million (2% of revenue), down from $4.2 million (10% of revenue) in 2021. The fourth quarter gross profit was negative $0.6 million compared to negative $0.3 million in Q4 2021 [11][12] - Net loss in 2022 was $18 million (negative $0.45 per share), compared to a loss of $7.3 million (negative $0.24 per share) in 2021. The fourth quarter net loss was $3.8 million (negative $0.09 per share) compared to a loss of $4.8 million (negative $0.14 per share) in Q4 2021 [13] - Cash used in operating activities in 2022 was $9.1 million, up from $3.6 million in 2021. Cash and cash equivalents as of December 31, 2022, were $1.6 million, down from $4.4 million a year earlier [14] Business Line Data and Key Metrics Changes - The company reported a backlog of over $150 million, primarily for electric vehicles, particularly the VMC 1200, which has become the most in-demand product [8] - Initial deliveries of the VMC 200 began in November, with 18 VMC 1200 vehicles delivered as of March 30, 2023, and 100 more currently in production [8][9] - The company expects to ramp up sales of the VMC 1200 to meet high demand, with production capabilities increasing in the first half of 2023 [9] Market Data and Key Metrics Changes - The company is experiencing intense customer demand for its commercial EVs, especially in the Class 3 segment [5] - New government incentives for EV adoption are expected to boost interest from enterprise customers and government agencies [5] Company Strategy and Development Direction - The company is expanding its capabilities beyond transit buses into the commercial EV market, with a focus on the Class 3 segment [4] - A new $30 million credit facility has been secured to support the production ramp of the VMC 1200, alongside efforts to certify as a Free Trade Zone to enhance service across North America [6] - The company is actively working to expand its dealer network for the VMC 1200 through a partnership with DSMA [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive significant revenue growth in 2023, supported by strong demand and a solid product suite [9][17] - The company anticipates that margins will align more closely with historical levels beyond 2022, despite some introductory pricing for new EV products [12] Other Important Information - The company has faced challenges due to global supply chain disruptions affecting bus component availability, which delayed many expected deliveries in 2022 [12] - The company is transitioning towards electric buses, with a noted decrease in demand for diesel and CNG buses [33] Q&A Session Summary Question: Status of the Ferndale plant and additional capital needs - Management confirmed that the Ferndale plant is operational and may require minor additional equipment financing in the future [19] Question: VMC 1200 delivery numbers and production expectations - The company delivered 11 trucks in Q4 of the previous year and has 100 trucks currently in production, with plans to ramp up production as the Ferndale facility becomes fully operational [20][22] Question: Backlog expectations for 2023 - Management indicated that approximately $100 million of the backlog is for trucks, with more clarity expected in the Q1 results regarding how much backlog will be fulfilled in 2023 [24][29] Question: Capital spending expectations for 2023 - Capital spending is expected to be minor, with potential additional equipment costs of $1 million to $2 million that can be financed [25] Question: Prospects for bus deliveries and supply chain status - The backlog for buses is about $50 million for 2023, with management hopeful to deliver all buses despite ongoing supply chain challenges [31][33]