Financial Data and Key Metrics Changes - Revenue for fiscal 2024 was $44.6 million, a slight increase from $44.1 million in fiscal 2023, with Q4 revenue at $11.6 million [26] - Gross margin improved to 30.7% in fiscal 2024 from 26.9% in the prior fiscal year, translating into an additional $1.8 million of gross profit [27] - Adjusted EBITDA grew by $0.8 million to $4.1 million for the year, with Q4 adjusted EBITDA at $1.5 million, marking six consecutive quarters of positive adjusted EBITDA [29] - Net loss for fiscal 2024 was $1.4 million, flat compared to the prior year, with positive cash flow from operating activities of $1 million, a significant improvement from cash used of $5.2 million in the prior year [30] Business Line Data and Key Metrics Changes - The battery system margin was slightly higher at 31.3% for the year, indicating strong operational performance [28] - The company experienced a flat revenue performance despite delays from customers, reflecting a higher degree of customer diversification [18] Market Data and Key Metrics Changes - There is increasing demand for material handling battery products, particularly from newly constructed distribution centers and retrofit opportunities [15] - A significant order was received from a Fortune 500 retailer to equip two distribution centers, with plans for further conversions [16] Company Strategy and Development Direction - The company secured a $51 million direct loan from the Export-Import Bank of the United States to expand lithium-ion cell manufacturing in Jamestown, New York, which is expected to enhance capacity and margins [11] - The Jamestown facility is anticipated to start commercial cell manufacturing in the first half of 2026, with battery system manufacturing beginning in 2025 [14] - The company is focusing on vertical integration to improve gross margins and reduce lead times, which will facilitate larger purchases from customers [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2025, expecting revenue growth to exceed $60 million driven by robust customer demand [11] - The company is well-positioned to navigate potential tariff impacts due to its domestic manufacturing capabilities [56] - Management highlighted the importance of domestic manufacturing and the potential for improved margins with the Jamestown facility coming online [58] Other Important Information - The company is developing new products based on its Infinity technology and progressing with solid-state battery development, with expectations for product launches in 2025 [23][24] - The company has established supply agreements for high voltage battery systems in various applications, including defense and electrified locomotives [22] Q&A Session Summary Question: What is the level of visibility into customer orders for fiscal '25? - Management indicated that the Fortune 100 customer, which typically orders over $10 million annually, had a disappointing fiscal 2024 but has already started ordering for 2025, with expectations to return to historical levels [40] Question: How does the company plan to approach fiscal '25 revenue guidance? - Management stated that they have been conservative in their approach and will provide updates each quarter, with expectations to ramp production starting in January [46] Question: How will the Jamestown facility impact gross margins? - Management expects vertical integration to improve margins by eliminating costs associated with overseas contract manufacturers and shipping [60] Question: How is the company addressing tariff-related issues? - Management believes the Jamestown operations will insulate the company from tariff impacts, allowing for domestic production [56] Question: What are the expectations for adjusted EBITDA margins once Jamestown is operational? - Management anticipates that Jamestown will be OpEx light, contributing significantly to EBITDA as revenue increases [91]
Electrovaya(ELVA) - 2024 Q4 - Earnings Call Transcript