Workhorse(WKHS) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Sales for Q3 2024 were $2.5 million, down from $3 million in Q3 2023, primarily due to the nonrecurrence of a $2.3 million sales allowance reversal from the previous year [42] - Net loss for Q3 2024 was $25.1 million, an improvement from a net loss of $30.6 million in the same period last year [48] - Cash burn rate has been reduced to approximately $3.5 million per month [41] Business Line Data and Key Metrics Changes - The company achieved a significant milestone by securing a three-year master framework agreement with FedEx, leading to the initial purchase order for 15 W56 step vans [8][12] - Increased activity in government-funded fleet opportunities, including a GSA contract that streamlines procurement for the W56 [17] - Five pending bids for over 300 Class 4 units and 21 city and county quotes for an additional 44 truck orders [19] Market Data and Key Metrics Changes - California remains the most critical market, with incentives available for the W56 and W750, allowing for potential payback periods of less than three to six months [37] - The company is seeing increased interest in its vehicles as they hit the road, demonstrating reliability to new and existing customers [55] Company Strategy and Development Direction - Key strategic priorities include securing new orders, delivering products and services, and advancing the product roadmap [52] - The company aims to convert interest from potential customers into firm purchase orders, focusing on fleet customers across commercial, private, and government sectors [55] - The company is adapting its business and operating plans in response to the recent political landscape and expected clarity around federal and state-level mandates [58] Management's Comments on Operating Environment and Future Outlook - Management believes that the commercial EV sector has staying power and is not solely reliant on political incentives [22] - The company is optimistic about generating additional purchase orders and revenue while strengthening its financial position [50] - The transition to EVs is seen as financially smart for fleet owners, with significant operating cost reductions and lower maintenance expenses [27] Other Important Information - The company has reduced its workforce by about 50% since the start of the year to conserve cash and manage costs [40] - Research and development expenses decreased significantly to $2.3 million from $5.8 million year-over-year, reflecting cost-saving measures [47] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without further inquiries [61][62]