Vicinity Motor Corp. (TSX-V:VMC) saw an increase in sales of electric vehicles in second quarter 2022, with orders for US$90 million in buses and other medium to heavy zero emissions vehicles.
William Trainer, CEO of Vicinity Motor Corp. (TSX-V:VMC) said the second quarter of 2022 was marked by additional sales and distribution wins for the company’s portfolio of electric vehicles, which he said further validated the transition to electric vehicles.
"This traction is a testament to the incredible interest and support we are receiving from enterprise customers and government agencies. From new government incentives for EV adoption to new financing strategies such as Sustainability Partner's EVaaS program, the market is quickly optimizing for an electrified future. Taken together, our backlog grew to over USD$90 million, the majority of which are for electric vehicles,” Trainer said in a statement.
READ: Vicinity Motor announces eligibility in new Transport Canada incentive program for affordable buying or leasing zero-emission vehicles
Among those orders include one from the transportation solutions TOK Group for six Vicinity Lightning electric buses valued at over C$3 million to support the shuttle bus service at Billy Bishop Toronto City Airport.
Vicinity Motor’s 1200 Class 3 electric trucks also qualified for the recently approved Incentives for Medium and Heavy-duty Zero-Emission Vehicles (iMHZEV) program administered by Transport Canada, a C$550 million subsidy program which helps to make buying or leasing zero-emission vehicles more affordable.
It also signed multiple new distribution agreements to offer the Company's product portfolio in the United States. This includes a commitment for 18 vehicles to Schetky Bus and Van Sales, a dealership and transportation solutions provider, and an initial commitment of four vehicles to Soderholm Sales and Leasing, a full-service bus dealer in Hawaii and the Pacific Islands region.
Vicinity Motors also received an initial order for eight vehicles from Hoekstra Transportation, Michigan's largest school bus, commercial bus, cargo and custom van dealer, for the territory of Michigan, Indiana and Ohio, and an initial commitment from Central States Bus Sales, one of the largest school and commercial bus dealers in the US, for 18 vehicles.
2Q financials
Revenue for the three-month period to end June 30, 2022 totalled US$11.7 million, as compared to $15.5 million in the same year-ago quarter. The decrease in revenue was primarily driven by the delivery of 34 vehicles in the quarter, as compared to 46 deliveries in the second quarter of 2021.
Cash and cash equivalents as of June 30, 2022 totalled US$9.4 million.
"Looking ahead, we are certainly laying the foundation for success in 2023 as supply chains normalize. Our expanded dealer network, new facility coming online and strengthened supply chain are positioning us for a ramp-up of production and significant growth in the months ahead. I look forward to providing additional updates as we work diligently to build sustainable, long-term value for our shareholders," said Trainer.
Vicinity Motor’s Ferndale, Washington facility is nearing completion, which will help the company meet customer demand and capture market share in the US with an American-built and ‘Buy America' compliant product. The company plans on making this the new home to support its industrial electric truck line starting with the VMC 1200.
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