Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $45 MCAD
Stock price at time of publication: $0,98 CAD
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Lion Electric Market
Vicinity Motors first quarter results are out and current order backlog exceeds $150 million, the vast majority of which are for electric vehicles. As expected revenues were not overly impressive reaching $2,7 million compared to $3,2 million in 2022. We did not expect large revenues as deliverys for VMC 1200 are just about to ramp up. We are however expecting very busy Q2 and Q3 reports from Vicinity Motors and we are optimistic about the future!
Full press release below:
U.S. Manufacturing Campus in Ferndale, Washington Preparing for Initiation of Vehicle Assembly Operations in Coming Weeks
VANCOUVER, BC / May 15, 2023 / Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today reported its financial and operational results for the first quarter ended March 31, 2023.
First Quarter 2023 and Subsequent Operational Highlights
- Current order backlog exceeds $150 million, the vast majority of which are for electric vehicles.
- Assembly operations set to commence at the newly constructed, state-of-the-art, 100,000 square foot U.S. manufacturing campus in Ferndale, Washington in first half of 2023.
- Company has received its Certificate of Occupancy for the facility.
- Foreign-Trade Zone certification for Ferndale Campus has been secured.
- Completed key hires for the Ferndale facility.
- Signed a dealer network development services agreement with Dealer Solutions Mergers and Acquisitions (“DSMA”) to enhance North American automotive dealer market penetration for its industry-leading, Class 3 VMC 1200 all-electric truck.
- Partnered with RBC and Export Development Canada (EDC) to secure US$30 million credit facility to finance VMC 1200 EV Truck production, as well as an additional US$9 million working capital credit facility with EDC, while maintaining funding for existing bus orders.
“The first quarter of 2023 was marked by significant momentum across all aspects of our business, with Ferndale set to begin initial assembly operations in the coming weeks, VMC 1200 deliveries from our Canadian facility underway and Transport Canada reaffirming that the VMC 1200 qualifies for a Federal Rebate nationwide of CAD$40,000,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We are nearing completion of a batch of 50 VMC 1200 vehicles as well as several transit buses at our Canadian facility for delivery in the second quarter, seeding products into the market and generating further demand with North American automotive dealerships alongside our partners at DSMA.
“Our new U.S. manufacturing campus in Ferndale, Washington is slated to initiate production in the next several weeks – as we have completed key hires and have recently secured Foreign-Trade Zone status with the U.S. Department of Commerce, reducing customs and duty-related fees. To support the immediate-term ramp up of Ferndale, we recently supplemented our $30M VMC 1200 specific credit facility with the Royal Bank of Canada and Export Development Canada (EDC) with a further $9M working capital credit facility with EDC, fully funding our near-term operations with non-dilutive debt financing.
“Our transit bus business has seen supply chains improve – and to that end, we have restarted delivery of transit buses to our customers as of Spring 2023. We continue to see strong demand for our Vicinity Classic transit bus line, proving out our established market leadership in the mid-size heavy duty transit bus space.
“Our business is truly firing on all cylinders, with this significant momentum positioning us to transition to profitability in the second half of 2023, with additional visibility into strong initial traction in the second quarter. I am incredibly proud of the work our team has put in over the past several months to make this all possible. As we move through 2023 and continue to execute against our key milestones, I believe that we have built the foundation of a business that can deliver value to its stakeholders and their communities for years to come,” concluded Trainer.
First Quarter 2023 Financial Results
All figures stated in this press release are in U.S. dollars unless stated otherwise.
Revenue in the first quarter of 2023 totaled $2.7 million, as compared $3.2 million in the first quarter of 2022. The decrease in sales was impacted by product mix, which was more heavily weighted to trucks in the first quarter of 2023.
Gross profit in the first quarter of 2023 totaled $0.5 million, or 18% of revenue, as compared to $0.2 million, or 7% of revenue, in the first quarter of 2022. Gross margins were positively impacted by an adjustment for expired warranty.
Cash used in operating activities in the first quarter of 2023 totaled $3.6 million, as compared to $5.1 million in the first quarter of 2022.
Net loss in the first quarter of 2023 totaled $2.4 million, or $(0.05) per share, as compared to a loss of $2.9 million, or $(0.08) per share, in the first quarter of 2022.
Adjusted EBITDA loss in the first quarter of 2023 totaled $1.4 million, as compared to $2.1 million in the first quarter of 2022.
Cash and cash equivalents as of March 31, 2023 totaled $1.8 million, as compared to $11.0 million as of March 31, 2022. During the first quarter, the Company fortified its balance sheet through the closing of a CAD$4.0 million private placement of convertible debentures with strategic investors.
First Quarter 2023 Results Conference Call
Management will host an investor conference call at 4:30 p.m. Eastern time today to discuss Vicinity Motors’ first quarter financial results, provide a corporate update, and conclude with a question and answer session from telephone participants. To participate, please use the following information:
Q1 2023 Conference Call and Webcast
Date: Monday, May 15, 2023
Time: 4:30 p.m. Eastern time
U.S./Canada Dial-in: 1-844-850-0545
International Dial-in: 1-412-542-4118
Conference ID: 10178767
Webcast: Vicinity Motors Q1 2023 Webcast
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the call will be available through Thursday, June 15, 2023. 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 10178767. A webcast will also be available by clicking here: Vicinity Motors Q1 2023 Webcast.
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (“VMC”) is 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, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.
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