Workhorse(US:WKHS)2024-03-12 17:53Financial Data and Key Metrics Changes - For the full year 2023, sales increased by $8.1 million to $13.1 million compared to $5 million in 2022, primarily due to increased sales volumes of W4CC and W750 products [17] - SG&A expenses decreased by $17.6 million to $55.6 million in 2023 from $73.2 million in 2022, driven by a reduction in legal expenses [18] - Net loss for 2023 was $124.6 million compared to a net loss of $117.3 million in 2022, with loss from operations improving to $105.3 million from $129 million [46] Business Line Data and Key Metrics Changes - The company achieved HVIP certification for both Class 4 and Class 5,6 vehicles, and has four distinct commercial EV products in production [7] - The Aero business sold its first units and is on track for FA certification in the first quarter of 2024, while also securing government grants [8][42] - Production of W56 step vans is expected to ramp up, with the capability to deliver finished vehicles in 5 to 6 weeks, the shortest lead time in the Class 5, 6 step van market in North America [12][34] Market Data and Key Metrics Changes - The commercial EV industry is experiencing uncertainty regarding the transition to electric vehicles, particularly with the enforcement of the CARB Clean Fleet mandate [5][32] - The company has received initial fleet orders for the W56 step vans and is expanding its dealer network, targeting 15 to 20 dealers by the end of 2024 [13][39] Company Strategy and Development Direction - The company is focused on strengthening its financial position while advancing its product roadmap and ramping up production to meet customer demand [23][30] - The strategic view for the Aero business is to unlock value for shareholders while positioning for future growth opportunities [16] - The company aims to emerge as a leader in the Class 4 to 6 segment of the commercial EV market [24][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the commercial EV industry but remains optimistic about the company's readiness to meet customer needs as the transition to EVs accelerates [48] - The company is working to resolve short-term liquidity issues and maintain operational excellence while increasing production [22][65] Other Important Information - The company has temporarily paused production of certain products to focus on ramping up W56 production, with plans to add workforce as orders materialize [9] - The company has established a sale-leaseback agreement for its Union City manufacturing complex to strengthen its financial position [63] Q&A Session Summary Question: How does the company prioritize orders between W56, W750, and W4CC? - The company is managing capacity based on customer demand and has received significant interest in the W56, with initial orders already placed [25][61] Question: What is the current status of the CARB mandate enforcement? - There is uncertainty regarding the timing of the CARB mandate enforcement, but many fleets are preparing to meet the requirements by the end of the year [51]