Vicinity Motor Corp. (TSX-V:VMC) told investors that the first quarter of its 2022 financial year was highlighted not only by continued order momentum but by the strategic expansion of its North American distribution network with the addition of several exciting new dealers to drive the penetration of its growing portfolio of all-electric vehicles.
The North American supplier of electric vehicles said its backlog for expected 2022 delivery grew to over US$90 million, the majority of which are for electric vehicles, reflecting its rapid transition in product mix to meet the changing needs of transit customers.
"We fortified our balance sheet in the first quarter, funding our nearly complete Ferndale, Washington facility,” founder and CEO William Trainer said in a statement. “The focus of this facility is ‘Buy America' compliant production, allowing us to further penetrate the US market with an American-built offering.”
READ: Vicinity Motor inks Pacific islands distribution deal with Hawaii’s Soderholm Sales & Leasing
“This raise, supplemented by our cash position and C$20 million line of credit, has positioned us to significantly ramp deliveries to our growing dealer base in the second half of 2022,” Trainer added.
First-quarter 2022 and subsequent operational highlights:
- Secured order backlog exceeding US$90 million, including orders for 250 VMC 1200 EV trucks from Canadian automotive dealers in British Columbia and Ontario.
- Signed multiple new distribution agreements to offer the Company's product portfolio in the US with:
- Hoekstra Transportation, Michigan's largest school bus, commercial bus, cargo and custom van dealer, for the territory of Michigan, Indiana and Ohio including an initial order for eight vehicles.
- Central States Bus Sales, Inc, one of the largest school and commercial bus dealers in the US, including an initial commitment for 18 vehicles for the central US territory.
- DATTCO, Inc, a US full-service passenger transportation company, for the Northeastern US territory, including an initial US$2 million order for both EVs and ICE vehicles.
- Soderholm Sales & Leasing, a full-service bus dealer in Hawaii and the Pacific Islands region, including an initial commitment for four vehicles.
- Expanded agreement with ABC Companies now spanning 18 states, contracted to order 18 VMC Optimal S1 shuttle buses and 3 Vicinity Classic buses - in addition to the previously announced 10 Vicinity Lightning EV buses slated for delivery in 2022.
- Appointed global automotive engineering executive Dennis Gore as vice president of engineering, bringing 35+ years of experience from Gillig Bus, Zero Motorcycles, Honda, Mitsubishi Motors, among others.
- Strengthened its balance sheet through a US$12 million financing to fund the Ferndale, Washington facility, in addition to being awarded a C$2.6 million non-repayable grant from a Canadian government foundation.
- Presented at several leading automotive industry and investor conferences nationally including the Advanced Clean Transportation Expo, Planet MicroCap Showcase 2022, Winter Wonderland Best Ideas Conference, Stifel 2022 Transportation & Logistics Conference and the Canaccord Genuity Carbon & Energy Transition Conference.
In response to current supply chain challenges, Vicinity announced it is revising its revenue guidance for fiscal 2022 to a range of US$70-90 million and underlying earnings (EBITDA) guidance is being revised to a range of US$3-5 million.
“Lack of availability of parts in the supply chain, shipping conditions overseas, and availability of chassis for the VMC Optimal products have caused delays to our production timelines and externally affected our ability to meet previously stated figures,” Trainer said.
For the three months to March 31, 2022, revenue decreased to $3.2 million from $21.5 million in the year-ago quarter primarily due to six deliveries versus 67 deliveries in the comparable period.
The company reported a net loss of $2.9 million, or $0.08 per share, down from income of $1.6 million, or $0.05 per share in 1Q 2021. Its adjusted EBITDA loss was $2.1 million, as compared to adjusted EBITDA of $2.1 million previously.
Following the financing, it ended the quarter with cash and cash equivalents of $11 million, compared to $4.4 million as of December 31, 2021.
"Looking ahead, we will finalize foundation-building efforts as we prepare for significant growth in the second half of the year and beyond - including the continued expansion of our dealer network, strengthening of our supply chain and ramp-up of production. I look forward to providing additional updates in the months to come as we continue our rapid pace of operational execution, helping to create long-term value for our shareholders," concluded Trainer.
Vicinity Motor 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, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. It sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the company's strategic partner, for upfitting into next-generation delivery vehicles.
Contact the author at stephen.gunnion@proactiveinvestors.com