Vicinity Motor Corp said it rounded out the third quarter with a current order backlog exceeding $190 million, the vast majority of which is for electric vehicles (EVs).
While reporting financial results for the 3Q ended September 30, the Vancouver-based commercial EV maker said it secured a further US$100 million plus purchase order for 1,000 VMC 1200 electric trucks from Pioneer Auto Group, Vicinity's exclusive dealer in British Columbia, with initial deliveries to the customer starting in November this year.
The commercial EV maker also scored an order from Sustainability Partners LLC, for four Vicinity Lightning electric buses through Soderholm Sales & Leasing Inc, Vicinity's Pacific Islands distributor.
Vicinity secured distribution agreements with the TOK Group, a Canadian transportation solutions provider to offer VMC 1200 class 3 electric trucks.
Meanwhile, northwestern US dealership Schetky Bus and Van Sales will offer the Vicinity Lightning, Vicinity Classic, and VMC-Optimal vehicles, with an initial commitment of 18 vehicles.
Vicinity had cash and equivalents totaling $1.1 million at the end of September, compared to $4.4 million on December 31, 2021. However, Vicinity said it “fortified” its balance sheet after the end of the quarter, by raising $4.8 million utilizing the company's at-the-market (ATM) program.
For the period ended September 30, Vicinity reported revenue of $1.5 million, compared to $2.3 million in 3Q 2021.
Meanwhile, its revenue totaled $16.4 million for the nine months that ended September 30, 2022, compared to $39.4 million in the corresponding period a year earlier.
“The decrease is primarily attributable to lower vehicle deliveries due to global supply chain disruptions,” stated the company.
Vicinity shrank cash used in operating activities in the nine months this yar to $5.2 million from $7.8 million in the corresponding period in 2021.
Vicinity’s net loss in the 3Q totaled $7.4 million or $(0.19) per share, compared to a net loss of $3.8 million or ($0.13) per share in 3Q 2021.
The firm’s net loss for the nine months this year stood at $14.1 million, compared to a net loss of $2.5 million for the same period in 2021.
Strong momentum
"The 3Q was highlighted by strong momentum in our VMC 1200 Class 3 electric truck and Vicinity Lightning electric bus product lines - all propelled by intense customer demand for commercial EVs," Vicinity Motor founder CEO William Trainer said in a statement accompanying the numbers.
"Our recent US$100+ million purchase order for 1,000 VMC 1200 vehicles from Pioneer Auto Group was a transformational milestone… it validates the years of innovation we have invested in, all with the goal of expanding our capabilities beyond our strong legacy in transit buses and into the vast commercial truck market. Taken together, our backlog grew to over USD$190 million, the vast majority of which are for EVs.”
Trainer noted that the company’s VMC 1200 supply chain is “fairly insulated” from the global supply chain disruptions that have impacted its transit bus business which pushed the delivery of bus orders into 2023.
“Initial VMC 1200 deliveries began in November and we expect these sales to gradually ramp up to meet the immense demand we are seeing for this product line,” added Trainer. “Our first vehicles will be assembled in British Columbia…we’ve sourced a solution to the power switch issue we faced previously.”
Vicinity believes its new Ferndale, Washington facility will begin to supplement its Canadian assembly capabilities in 1Q 2023.
To support the growing production goals, Vicinity is currently working on increasing its credit facilities to support the short-term working capital requirements of the rapidly ramping VMC 1200 production, said Trainer.
Eyeing record 2023
The Vicinity Motor boss pointed out that 2023 would shape up into a “record” year.
"Looking ahead to 2023, we are incredibly well positioned for success, particularly as supply chains normalize and we can resume full-fledged transit bus production,” said Trainer.
“Given the VMC 1200 doesn't face the same supply chain pressures that transit buses do - paired with the significant incentives and subsidies available to end-users seeking to electrify their fleets - we expect they will prove to be a significant contributor to our revenue growth and profitability.”
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive