Envirotech Vehicles Announces Third Quarter 2022 Financial Results

Rhea-AI Summary

Envirotech Vehicles (NASDAQ:EVTV) reported a notable financial turnaround for Q3 2022, achieving sales of $3.88 million, a significant increase from $0.71 million in Q3 2021, driven by 37 vehicle deliveries compared to 8 units the previous year.

The company posted a net income of $126,749 or $0.01 per share, reversing a net loss of $850,475 in Q3 2021. Total operating expenses rose to $1.74 million, influenced by higher headcount and marketing investments. The company has cash reserves of $4.66 million and working capital of $20.25 million, positioning it for future growth.

Positive

• Sales surged to $3.88 million, an increase of over 446% year-over-year.
• Achieved first-ever net income of $126,749, compared to a loss in previous year.
• Increased vehicle deliveries by more than 75% from the second quarter.
• Strong cash position with $4.66 million in liquid assets and $20.25 million in working capital.

Negative

• Operating expenses increased to $1.74 million, primarily due to rising headcount and marketing costs.
• Shipping delays impacted the ability to meet delivery targets, affecting growth potential.

OSCEOLA, AR / ACCESSWIRE / November 14, 2022 / Envirotech Vehicles, Inc. (NASDAQ:EVTV), a provider of new zero-emission, purpose-built electric vehicles (the "Company"), today announced its results for the third quarter and nine months ended September 30, 2022.

Third Quarter 2022 Financial Results

Sales were $3,882,670 for the three months ended September 30, 2022, compared to $709,092 for the three months ended September 30, 2021. The sales increase was primarily related to the sale of 37 vehicles in the third quarter of 2022 compared to eight vehicles in the prior year period.

Total net operating expenses for the three months ended September 30, 2022, were $1,738,397, compared to $1,381,574 for the same period in 2021, as the Company continues to invest in its operations. The increase in expenses during the quarter is primarily related to increased headcount and sales and marketing expenses. Total net operating expenses included non-cash charges of $69,093 for the three months ended September 30, 2022.

Net income in the third quarter of 2022 was $126,749, or $0.01 per basic and diluted share, compared to a net loss of $850,475 or ($0.06) per basic and diluted share in the third quarter of 2021.

As of September 30, 2022, the Company had cash, cash equivalents, restricted cash and marketable securities of $4,659,538 and working capital of $20,246,804.

Phillip Oldridge, Chief Executive Officer of Envirotech Vehicles, commented, "In the third quarter, we generated a profit, the first in our company's history. This achievement was driven by a more than 75% increase in vehicle deliveries relative to the second quarter, as we delivered 37 units, and is also a testament to our lean, cost-focused organization. We believe we could have hit our target of doubling deliveries on a quarter over quarter basis if not for shipping delays, but are nonetheless very proud to have navigated the myriad of challenges presented by global supply chains to have delivered a total of 70 vehicles this year as of September 30."

"On the manufacturing front, we continued to make progress on refurbishing our Osceola, Arkansas facility during the third quarter," continued Mr. Oldridge. "We performed extensive maintenance and upkeep inside and on the grounds of the facility. Further, we have secured our engineering, design and architecture teams as we pivot to commencement of construction inside the building to convert it to an electric vehicle manufacturing, production and assembly facility by 2024."

"Looking ahead, legislative tailwinds and incentive programs are a big driver in these early days of what will be a generational shift to electric vehicles. As a result, we have hired a full-time grant writing firm, and have assembled a team of state and federal consultants to help ensure that we maximize our potential. As an example, we were excited to see the initial round of funding by the EPA to spur school bus electrification in the U.S., and we expect to be a beneficiary in 2023 and other future funding rounds as our school bus comes to market in the first half of next year. More broadly, we remain excited about large scale government fleet electrification opportunities, and have seen growing inquiries from prospective international customers as well. Going forward, growth may not be linear - and holiday shutdowns plus the impact on orders of the inherently lumpy state and federal funding programs would suggest we will see a retreat in fourth quarter 2022 deliveries relative to the third quarter - but we remain excited about the continued growing interest in and demand for our vehicles as we look out to 2023 and beyond," concluded Mr. Oldridge.

Conference Call Information

The Company will host a conference call tomorrow, Tuesday, November 15, 2022, at 8:30 a.m. Eastern Time to discuss its results for the third quarter and nine months ended September 30, 2022.

To access the live webcast, please click on this link.

To participate by phone, please dial 877-545-0523 approximately five minutes prior to the scheduled start time and request the Envirotech Vehicles call. International callers should dial 973-528-0016. Participants may also provide the access code, which is 815808.

A replay of the teleconference will be available until Tuesday, November 29, 2022, and may be accessed by dialing 877-481-4010. International callers should dial 919-882-2331. The replay passcode is 47078.

Cautionary Statement Regarding Forward-Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in reports filed by Envirotech Vehicles, Inc. with the Securities and Exchange Commission, all of which are available online at www.sec.gov. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expected," "believes," "strategy," "opportunity," "anticipated," "outlook," "designed," and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Envirotech Vehicles undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

Contact Information

ICR, Inc.
New York, NY
Telephone: (646) 200-8873
Email: envirotech@icrinc.com

Envirotech Vehicles
Susan Emry, Executive Vice President
Telephone: (870) 970-3355 ext. 1001
Email: sue.e@evtvusa.com

ENVIROTECH VEHICLES, INC.AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)

See Accompanying Notes to Unaudited Consolidated Financial Statements.

		September 30, 2022				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents		$	2,623,099			$	4,846,490
Restricted cash			60,131				60,035
Marketable securities			1,976,308				8,002,700
Accounts receivable			7,804,369				1,428,030
Inventory, net			3,603,852				3,850,541
Inventory deposits			4,812,439				4,503,079
Prepaid expenses			709,621				332,514
Total current assets			21,589,819				23,023,389
Property and equipment, net			305,617				272,113
Goodwill			51,775,667				51,775,667
Other non-current assets			78,374				236,639
Total assets		$	73,749,477			$	75,307,808
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	161,545			$	238,464
Accrued liabilities			1,154,026				1,280,020
Notes payable, net			27,444				31,788
Total current liabilities			1,343,015				1,550,272
Long-term Liabilities
Other non-current liabilities			-				2,427
Notes payable, net			18,234				13,245
Total liabilities			1,361,249				1,565,944
Stockholders' equity (deficit):
Preferred stock, 5,000,000 authorized, $0.00001 par value per share, none issued and outstanding as of September 30, 2022, and December 31, 2021			-				-
Common stock, 350,000,000 authorized, $0.00001 par value per share, 15,021.088 and 14,912,189 issued and outstanding as of September 30, 2022, and December 31, 2021, respectively			150				149
Additional paid-in capital			83,923,350				81,866,075
Accumulated deficit			(11,535,272	)			(8,124,360	)
Total stockholders' equity			72,388,228				73,741,864
Total liabilities and stockholders' equity		$	73,749,477			$	73,307,808

ENVIROTECH VEHICLES, INC.AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		For the Three Months Ended								For the Nine Months Ended
		September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Sales		$	3,882,670			$	709,092			$	7,078,870			$	1,368,151
Cost of Sales			2,046,491				469,611				3,998,533				930,977
Gross Profit			1,836,179				239,481				3,080,337				437,174
Operating expenses:
General and administrative			1,619,210				1,344,840				6,142,194				2,766,989
Consulting			94,187				36,734				264,505				142,092
Research and development			25,000				-				112,412				-
Total operating expenses, net			1,738,397				1,381,574				6,519,111				2,909.081
Income (loss) from operations			97,782				(1,142,093	)			(3,438,774				(2,471,907
Other income (expense):
Interest income, net			30,200				8,116				37,956				2,357
Other income, net			(1,233	)			285,902				(10,094				288,186
Total other income (expense)			28,967				294,018				27,862				290,543
Income (loss) before income taxes			126,749				(848,075	)			(3,410,912				(2,181,364
Income tax expense			-				(2,400	)			-				(220 ,700
Net income (loss)		$	126,749				(850,475	)			(3,410,912				(2,402,064
Net income (loss) per share to common stockholders
Basic and diluted		$	0.01			$	(0.06	)		$	(0.23			$	(0.23
Weighted shared used in the computation of net income (loss) per share
Basic and diluted			15,013,236				14,715,694				14,981,836				10,349,101

See Accompanying Notes to Unaudited Consolidated Financial Statements.

SOURCE: Envirotech Vehicles, Inc.

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FAQ

What were Envirotech Vehicles' earnings for Q3 2022?

Envirotech Vehicles reported a net income of $126,749, or $0.01 per share, for Q3 2022.

How did sales perform for Envirotech Vehicles in Q3 2022?

Sales reached $3.88 million in Q3 2022, compared to $0.71 million in Q3 2021.

What challenges did Envirotech Vehicles face in Q3 2022?

The company faced shipping delays that hindered their ability to double vehicle deliveries compared to the previous quarter.

What is the future outlook for Envirotech Vehicles following Q3 2022 results?

Despite anticipated fluctuations in deliveries due to funding program delays, the company sees growing interest in their electric vehicles.