VivoPower(VVPR) - 2020 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Annual revenues for FY'20 were recorded at $48.7 million, primarily driven by growth in the Aevitas Critical Power Services business in Australia [5] - Gross profits increased by 28$3.8 million last year to a profit of $3.9 million in FY'20, excluding restructuring and non-recurrent charges [8] - Cash declined to$4.3 million from $7.1 million year-over-year, reflecting working capital drawdown and slowdowns in collections during COVID-19 lockdowns [10] - Net debt increased to$23.1 million, reflecting the reduction in cash balance and continued support from the major shareholder [11] Business Line Data and Key Metrics Changes - Aevitas, the Critical Power Services business, achieved strong revenue growth while also reducing overhead costs [7][8] - The company is pivoting towards a sustainable energy solution, including electric vehicles, which is expected to leverage its existing customer base of over 700 active clients [12][13] Market Data and Key Metrics Changes - The Australian market is experiencing strong tailwinds for renewable energy initiatives, supported by government actions [23][27] - The focus on electric vehicles and battery storage is expected to grow, with the Australian battery storage market becoming economically viable [37] Company Strategy and Development Direction - The strategic pivot includes a focus on electric vehicle (EV) solutions, battery leasing, retrofitting customer premises, and second-life applications for EV batteries [12][15][17] - The company aims to deliver a holistic three-pronged sustainable energy solution, emphasizing customer engagement and operational efficiency [15][49] - The board has been strengthened with technology and software capabilities to align with the new strategy [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed optimism about the recovery and growth in the Australian operations [6][23] - The company is focused on executing its strategy and expects to announce new developments in the coming weeks [63] Other Important Information - The company is in a turnaround phase for its U.S. solar portfolio and is looking to monetize its solar projects to fund the new EV strategy [34][56] - There is a strong emphasis on capital efficiency and optimizing the balance sheet to support growth initiatives [58][59] Q&A Session Summary Question: Are there any questions from participants? - No questions were raised during the session [61] Closing Comments - Management expressed gratitude for participation and highlighted the transition to a phase of hyper-scaling, emphasizing execution as the key focus moving forward [63]