{"id":2601,"date":"2022-03-31T12:47:24","date_gmt":"2022-03-31T11:47:24","guid":{"rendered":"http:\/\/esgfire.com\/uncategorized\/vicinity-motor-corp-announces-us12-million-registered-direct-offering-with-esgfire-comment-2\/"},"modified":"2023-08-09T14:40:13","modified_gmt":"2023-08-09T13:40:13","slug":"vicinity-motor-corp-reports-fourth-quarter-and-full-year-2021-financial-results-with-esgfire-comment","status":"publish","type":"post","link":"https:\/\/esgfire.com\/en\/all-posts\/vicinity-motor-corp-reports-fourth-quarter-and-full-year-2021-financial-results-with-esgfire-comment\/","title":{"rendered":"Vicinity Motor Corp. Reports Fourth Quarter and Full Year 2021 Financial Results with ESGFIRE comment"},"content":{"rendered":"<p>Company: Vicinity Motor Corp<br \/>\nListings :<a href=\"https:\/\/ca.finance.yahoo.com\/quote\/BUS.V\/\">TSXV<\/a>\u00a0,<a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/vev\">\u00a0NASDAQ<\/a><br \/>\nTicker: VMC.V &amp; VEV<br \/>\nMarket cap at time of publication: $104 MCAD<br \/>\nStock price at time of publication: $ 2.95\u00a0 CAD<br \/>\nTarget price: 15-32 CAD by external analysts<br \/>\nBusiness: Leading supplier of electric, CNG, gas and clean-diesel buses for<br \/>\nboth public and commercial enterprise use in the U.S and Canada<br \/>\nComparable peer :\u00a0<a href=\"https:\/\/greenpowermotor.com\/\">Lion Electric<\/a> Market cap 2 billion USD<br \/>\nWebsite:\u00a0<a href=\"https:\/\/vicinitymotorcorp.com\/\">https:\/\/vicinitymotorcorp.com\/<\/a><\/p>\n<p><strong>ESGFIRE comment: Vicinity Motors today (31\/3 2022) released their fourth quarter and full 2021 results.\u00a0 There was an impressive revenue growth of 113 % to 41,7 million USD in the full year of 2021. The fourth quarter itself did not see any significant changes as revenues went to 2,3 million USD from 3,5 million USD. The slight decrease can most likely be explained by the fact that orders are paid upon delivery and as most of us know there has been a major semi conductor shortage and supply chain issues during 2021 following the COVID pandemic. We are a bit worried about the gross margins and EBITDA margins of the company which are still negative but we hope that this will turn to better figures as the company continues to scale up and continue to deliver on its order backlog of 100 million CAD for 2022. <\/strong><strong>We continue to see an upside in Vicinity Motors shares as the company is now valued at less than 1X sales for 2022 and has\u00a0 target prices of 15-32 CAD by external analysts.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Press release in full below:<\/strong><\/p>\n<p>VANCOUVER, BC \u2013 March 30, 2022 &#8211; Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (FRA:6LGA) (&#8220;Vicinity&#8221; or the &#8220;Company&#8221;), a North American supplier of commercial electric vehicles, today reported its financial and operational results for the fourth quarter and full year ended December 31, 2021.<br \/>\nFourth Quarter 2021 and Subsequent Operational Highlights<\/p>\n<p>Secured order backlog exceeding CAD$100 million intended for delivery in 2022, including orders for over 250 VMC 1200 EV trucks from Canadian automotive dealers.<br \/>\nSigned a 10-year licensing agreement to serve as the exclusive North American and European distributor for Optimal-EV, a developer and manufacturer in the low-floor electric shuttle bus and electric delivery truck segments.<br \/>\nAgreement enables access to $30 million in orders for the Optimal E1 and S1 products.<br \/>\nAnnounced strategic collaboration agreement with EAVX, a business unit of North American commercial automotive leader JB Poindexter, to sell Vicinity\u2019s proprietary electric chassis for upfitting into next-generation municipal and delivery vehicles.<br \/>\nFortified its balance sheet through a CAD$10.3 million debt financing, a $17.0 million underwritten public offering of common shares supplementing Vicinity\u2019s undrawn CAD$20.0 million revolving credit facility and driving a $4.4 million cash position.<br \/>\nSubsequent to the close of the fourth quarter, the Company completed a $12 million financing to fully fund the Ferndale, Washington facility, in addition to being awarded a CAD$2.6 million non-repayable grant from a Canadian government foundation.<br \/>\nDelivered 131 Vicinity buses in 2021, as compared to 55 buses delivered in 2020.<br \/>\nDelivered 12 Vicinity buses in the fourth quarter of 2021, eight of which were sold from the Company\u2019s lease pool and excluded from revenue, as compared to six for the fourth quarter of 2020.<br \/>\nPresented at several leading industry and investor conferences nationally including the Winter Wonderland Best Ideas Conference, Stifel 2022 Transportation &amp; Logistics Conference, Canaccord Genuity Carbon &amp; Energy Transition Conference, Sequire Clean Tech &amp; EV Conference, SNN Network Canada Virtual Event 2021, APTA TRANSform Conference &amp; Expo, CALACT 2021 Autumn Conference &amp; Expo, and the LD Micro Main Event.<br \/>\nManagement Commentary<br \/>\n\u201cThe fourth quarter of 2021 and subsequent period was marked by continued order momentum across our continually expanding product portfolio \u2013 combined with multiple strategic partnerships and agreements to expand our breadth and depth as a company,\u201d said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. \u201cWhile revenues from our transit bus business are at times irregular and see some periods of lower deliveries, our foundation building in 2021 has positioned us with the capability to deliver our backlog of over CAD$100 million in 2022.<br \/>\n\u201cThis is a significant accomplishment made possible through our tier-1 strategic partnerships and the continued expansion of our all-electric product line, which has positioned Vicinity as an emerging leader in the EV transit vehicle sector. The highly successful rollout of our VMC 1200 EV truck, for which we already have over 250 orders from several dealers across Canada, will help to smooth the inherently fluctuating revenues from our transit bus business. This is supplemented by partnership with EAVX for EV chassis sales and sales of the Optimal-EV vehicles that we maintain exclusive license to \u2013 providing additional revenue streams that are less correlated to our core bus business.<br \/>\n\u201cTo prepare for the robust growth we see ahead, we have taken steps to shore up our supply chain in this time of uncertainty. Chiefly, we have secured a 600-vehicle battery supply agreement with Proterra \u2013 a leading EV battery systems provider \u2013 supplementing our supply from various other providers such as BMW and Electrovaya. These steps are taken with the goal of eliminating any single point of failure within our battery supply chain \u2013 a common pain point many EV manufacturers face.<br \/>\n\u201cWe ended the year with a fortified balance sheet to support our growth initiatives, supplementing our cash position and CAD$20 million line of credit with strategic financings to support our product line expansion and construction of our \u2018Buy-America\u2019 compliant U.S. assembly facility in Ferndale, Washington. Construction of our Ferndale facility is on-track and we expect to begin initial shipments in the second half of this year \u2013 allowing us to further penetrate the U.S. market with an American-built offering.<br \/>\n\u201cLooking ahead, continued sales of our expanded EV product line will strengthen our offering within the next-generation electric vehicle space, and the addition of our partnerships with EAVX and Optimal-EV will serve to further solidify our emerging leadership position. Taken in tandem, we are well positioned to create sustainable, long-term value for our shareholders,\u201d concluded Trainer.<br \/>\nFourth Quarter and Full Year 2021 Financial Results<br \/>\nAll figures stated in this press release are in U.S. dollars unless stated otherwise.<br \/>\nRevenue in 2021 grew to $41.7 million, a 113% increase as compared to revenue of $19.6 million in 2020. Revenue in the fourth quarter of 2021 totaled $2.3 million, as compared to $3.5 million in the fourth quarter of 2020.<br \/>\nGross margin in 2021 grew 64% to $4.2 million, or 10% of revenue, as compared to $2.6 million, or 13% of revenue, in 2020. Gross margin in the fourth quarter of 2021 totaled ($0.3) million, as compared to $1.7 million in the fourth quarter of 2020. Gross margins were affected by sales mix, as well as a loss on the disposal of eight buses sold from the Company\u2019s lease pool relative to the low volume of buses sold in the fourth quarter.<br \/>\nCash provided by operating activities in 2021 totaled $3.6 million, as compared to cash used in operating activities of $5.7 million in 2020.<br \/>\nNet loss in 2021 was $7.3 million, or $(0.24) per share, as compared to a net loss of $3.2 million, or $(0.13) per share, in 2020. Net loss in the fourth quarter of 2021 totaled $4.8 million, or $(0.14) per share, compared to a net loss of $0.4 million, or $(0.02) per share, in the fourth quarter of 2020.<br \/>\nAdjusted EBITDA loss in 2021 totaled $2.7 million, as compared to an adjusted EBITDA loss of $1.6 million for 2020. Adjusted EBITDA loss for the fourth quarter of 2021 totaled $2.2 million, as compared to an adjusted EBITDA of $0.2 million in the fourth quarter of 2020.<br \/>\nCash and cash equivalents as of December 31, 2021 totaled $4.4 million, as compared to $1.0 million as of December 31, 2020. Subsequent to the close of the fourth quarter, the Company fortified its balance sheet through a $12 million financing to fully fund the Ferndale, Washington facility, in addition to being awarded a CAD$2.6 million non-repayable grant from a Canadian government foundation.<\/p>\n<p>&nbsp;<\/p>\n<p>Fourth Quarter and Full Year 2021 Results Conference Call<br \/>\nManagement will host an investor conference call at 8:30 a.m. Eastern time today to discuss Vicinity Motor Corp.\u2019s fourth quarter financial results, provide a corporate update, and conclude with Q&amp;A from telephone participants. To participate, please use the following information:<br \/>\nQ4 2021 Conference Call and Webcast<br \/>\nDate: Wednesday, March 30, 2022<br \/>\nTime: 8:30 a.m. Eastern time<br \/>\nU.S.\/Canada Dial-in: 1-877-300-8521<br \/>\nInternational Dial-in: 1-412-317-6026<br \/>\nConference ID: 10164603<\/p>\n<p>Webcast: https:\/\/viavid.webcasts.com\/starthere.jsp?ei=1536513&amp;tp_key=cc4fa60105<br \/>\nPlease dial in at least 10 minutes before the start of the call to ensure timely participation.<br \/>\nA playback of the call will be available through Saturday, April 30, 2022. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally. Please use the replay pin number 10164603. A webcast will also be available by clicking here: Vicinity Motors Q4 2021 Webcast.<br \/>\nAbout Vicinity Motor Corp.<br \/>\nVicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (FRA:6LGA)\u00a0is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. In addition, the Company sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the Company\u2019s strategic partner, for upfitting into next-generation delivery vehicles.\u00a0For more information, please visit\u00a0www.vicinitymotorcorp.com<\/p>\n<p><strong>Legal Disclaimer<\/strong><\/p>\n<p><strong>We own shares of this company personally.<\/strong><\/p>\n<p><strong>Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for Educational purposes only and are not to be interpreted as tips , financial advice or recommendations of any kind to either buy or sell any stocks.<\/strong><\/p>\n<p>Companies may or may not be paying us for content posted on this website.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company: Vicinity Motor Corp Listings :TSXV\u00a0,\u00a0NASDAQ Ticker: VMC.V &amp; VEV Market cap at time of publication: $104 MCAD Stock price at time of publication: $ 2.95\u00a0 CAD Target price: 15-32 CAD by external analysts Business: Leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2462,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[148,128,9],"tags":[],"class_list":["post-2601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-reports-news-interviews","category-vicinity-motor-corp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vicinity Motor Corp. 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