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VivoPower(VVPR) - 2021 Q2 - Earnings Call Transcript
VVPRVivoPower(VVPR)2021-02-25 03:12
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Financial Data and Key Metrics Changes - Revenues declined by 28% year-on-year to 22.7million,primarilyduetostrictCOVID−19lockdownsinAustralia[3]−Grossprofitdecreasedby1822.7 million, primarily due to strict COVID-19 lockdowns in Australia [3] - Gross profit decreased by 18% year-on-year to 4.6 million, but gross profit margin improved to 20% from 18% in the previous year [4] - EBITDA declined to 1.2millionfrom1.2 million from 4.2 million in the previous corresponding period [4] - Basic EPS was negative 0.03comparedtopositive0.03 compared to positive 0.08 in the previous period [38] - Unrestricted cash increased from 2.8millionto2.8 million to 17.4 million as of December 31 [39] - Net debt declined from 23.1millionto23.1 million to 8.3 million, reflecting an improved credit profile [40] Business Line Data and Key Metrics Changes - Aevitas revenues were 22.3million,down2922.3 million, down 29% year-on-year, with gross profit of 4.6 million compared to 5.6millionpreviously[11]−UnderlyingEBITDAforAevitaswas5.6 million previously [11] - Underlying EBITDA for Aevitas was 3.3 million, down 80% [11] - Tembo's revenue contribution was 0.4millionforthehalf−yearperiod,reflectingonlytwomonthsofcontributionpost−acquisition[21]MarketDataandKeyMetricsChanges−TheU.S.portfolio′snetmegawattcapacityis892,slightlydownfromtheoriginaleconomicshareof922[15]−TheoutlookfortheU.S.portfoliohasimprovedwiththeBidenadministration′ssupportforrenewableenergy[16]−SuccessfulsalesofsmallersolarprojectsinAustria,includingDaisyHillandYoogaliSolar,areexpectedtobeprofitable[16]CompanyStrategyandDevelopmentDirection−TheTemboacquisitionhastransformedVivoPower′sgrowthtrajectory,movingto1000.4 million for the half-year period, reflecting only two months of contribution post-acquisition [21] Market Data and Key Metrics Changes - The U.S. portfolio's net megawatt capacity is 892, slightly down from the original economic share of 922 [15] - The outlook for the U.S. portfolio has improved with the Biden administration's support for renewable energy [16] - Successful sales of smaller solar projects in Austria, including Daisy Hill and Yoogali Solar, are expected to be profitable [16] Company Strategy and Development Direction - The Tembo acquisition has transformed VivoPower's growth trajectory, moving to 100% ownership in February 2021 [6] - A major partnership with GB Auto to distribute Tembo electric vehicles in Australia is expected to generate up to 250 million in revenue over four years [6][20] - The company aims to provide holistic decarbonization solutions, including electric vehicles, site electrification, and battery lifecycle management [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that strict COVID lockdowns affected results but expressed strong growth outlook due to the Tembo acquisition [3] - Conditions have improved since the start of 2021, and the outlook for Aevitas remains buoyant [12] - The partnership with Tottenham Hotspur is expected to catalyze further interest in VivoPower's offerings in the UK market [30] Other Important Information - VivoPower established an advisory council to support growth plans, particularly for Tembo [31] - The company has expanded its team with key hires in sales and sustainable energy solutions [33] - VivoPower was awarded the Real Readers top 50 impact awards, ranking 47th globally [34] Q&A Session Summary - The Q&A session concluded without any specific questions or answers being recorded [41]