Vicinity Motor Corp. Reports First Quarter 2024 Financial Results
Vicinity Motor Corp. (NASDAQ:VEV), a North American supplier of commercial electric vehicles, reported a 400% revenue growth to $13.3 million in Q1 2024, driven by deliveries of 44 VMC 1200 all-electric trucks and 22 Vicinity Classic transit buses. The company achieved positive cash flow from operations totaling $0.5 million, compared to cash used of $3.6 million in Q1 2023. The order backlog exceeded $125 million as of March 31, 2024.
Vicinity secured a follow-on order for 12 Vicinity Classic Clean Diesel Buses, and established five new distribution agreements for VMC 1200 dealerships across Canada.
Despite a net loss of $3.7 million, an improvement in adjusted EBITDA to $0.1 million was noted, and cash and equivalents increased to $4.3 million. Key strategic initiatives include onshoring production for the Lightning EV bus and launching the VMC 1200 in the U.S. market.
- 400% revenue growth to $13.3 million in Q1 2024.
- Positive cash flow from operations totaling $0.5 million.
- Order backlog exceeded $125 million as of March 31, 2024.
- Secured follow-on order for 12 Vicinity Classic Clean Diesel Buses.
- Established five new VMC 1200 distribution agreements across Canada.
- Adjusted EBITDA improved to $0.1 million from a loss of $1.4 million in Q1 2023.
- Cash and cash equivalents increased to $4.3 million.
- Net loss of $3.7 million in Q1 2024, compared to $2.4 million in Q1 2023.
- Gross profit margin decreased to 14%, down from 18% in Q1 2023.
Insights
Vicinity Motor Corp. (NASDAQ:VEV) has posted an impressive 400% increase in revenue, reaching
Vicinity Motor Corp.'s achievements in Q1 2024 underscore an effective strategy in expanding its dealer network across Canada. The company has secured five new VMC 1200 distribution agreements, extending coverage in Ontario, Quebec, Alberta and British Columbia. This expansion is important for maintaining growth momentum and leveraging regional expertise. The order backlog exceeding
Moreover, the follow-on order for 12 diesel buses from Autobus La Québécoise highlights continued trust and satisfaction from existing customers, which can drive repeat business and brand loyalty. These elements combined suggest a promising outlook for Vicinity's market position and future revenue, despite the challenges in scaling up production and managing operating costs.
The delivery of 44 VMC 1200 all-electric trucks in Q1 2024 is a testament to Vicinity Motor Corp.'s capabilities in the commercial EV space. The rising demand for electric vehicles, driven by regulatory pressures and environmental concerns, positions Vicinity well for future growth. The formal launch of the VMC 1200 into the U.S. market and the onshoring of production for the Lightning EV bus are strategic moves that could enhance production efficiency and market reach.
For retail investors, understanding the tech advancements in Vicinity's all-electric trucks could be key. These vehicles offer reduced operational costs and lower emissions, aligning well with sustainability trends. However, the company's ability to scale production and manage supply chain constraints will be critical for maintaining growth. In the long term, technological innovation and execution will determine the company's competitive edge and market share.
Company Achieves Positive Cash Flow from Operations in the First Quarter, Driven by
VANCOUVER, BC / ACCESSWIRE / May 14, 2024 / 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, 2024.
First Quarter 2024 and Subsequent Operational Highlights
- Revenue increased
400% to$13.3 million in the first quarter of 2024, primarily driven by the delivery of forty-four (44) VMC 1200 all-electric trucks and twenty-two (22) Vicinity Classic transit buses. - Cash provided in operating activities in the first quarter of 2024 totaled
$0.5 million , as compared to cash used of$3.6 million in the first quarter of 2023. - Secured a follow on order for twelve (12) Vicinity™ Classic Clean Diesel Buses from Autobus La Québécoise in Quebec, Canada.
- Order backlog as of March 31, 2024 exceeded
$125 million . - Secured five (5) VMC 1200 distribution agreements to establish new dealerships in strategic markets across Canada, including two (2) new dealerships in Ontario, one (1) new dealership in Quebec, one (1) new dealership in Alberta and one (1) new dealership in British Columbia.
- Promoted Brent Phillips to position of President, starting with an initial strategic plan focused on milestones related to the onshoring of production for the Lightning EV bus to Ferndale, WA, augmenting the Canadian dealer network for the VMC 1200 electric trucks, and the formal launch of the VMC 1200 into the U.S. market.
Management Commentary
William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp., said: "The first quarter was marked by a robust cadence of deliveries against our significant backlog driving a positive adjusted EBITDA - reflecting not only continued VMC 1200 demand from our growing network of dealers across Canada - but continued momentum from our market leadership position with transit buses as well.
"We have found that our established reputation for excellence, built through the sale of nearly 1,000 transit buses since inception, creates a level of trust that allows for a significant competitive advantage. To that end, we secured a follow-on order for 12 Vicinity™ Classic buses from Autobus La Québécoise in the first quarter. These vehicles are expected to be delivered in 2025 and will service the cities of La Prairie, Candiac, Saint-Philippe, Delson, Saint-Constant and Sainte-Catherine.
"This positive reputation has also generated strong interest in our VMC 1200 all-electric trucks and to that end, we recently announced several new dealership partners. These include VMC Laval in Laval, Peninsula VMC Truck Centre in South Toronto, Shift EV Trucks in West Toronto, Jack Carter VMC Trucks in Southern Alberta and James Vicinity Truck in Kamloops and Kelowna, British Columbia. These new EV-specific dealerships expand the VMC 1200 sales and service coverage in strategic markets across Canada, leveraging the expertise and built-in customer base that each partner has in their respective regions.
"Looking ahead, we will continue to actively work to monetize our backlog, including an immediate-term focus on converting our
First Quarter 2024 Financial Results
All figures stated in this press release are in U.S. dollars unless stated otherwise.
Revenue in the first quarter of 2024 totaled
Gross profit in the first quarter of 2024 totaled
Cash provided in operating activities in the first quarter of 2024 totaled
Net loss in the first quarter of 2024 totaled
Adjusted EBITDA in the first quarter of 2024 totaled
Cash and cash equivalents as of March 31, 2024 totaled
First Quarter 2024 Results Conference Call
Date: Tuesday, May 14, 2024
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: 10188692
Webcast: Vicinity Motor Q1 2024 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 Friday, June 14, 2024. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 10188692. A webcast will also be available by clicking here: Vicinity Motor Q1 2024 Webcast.
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) 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.
Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com
Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Vicinity's expectations include uncertainties relating to the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity's operational strategies, production prospects at Vicinity's assembly facility in the State of Washington, the success of Vicinity's strategic partnerships; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.
Non-GAAP Financial Measures
The non-GAAP and other financial measures presented do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be directly comparable to similar measures presented by other issuers. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-GAAP and other financial measures should be read in conjunction with our consolidated financial statements.
Non-GAAP financial measure - Adjusted EBITDA
Adjusted EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines adjusted EBITDA as earnings before interest, income taxes, depreciation and amortization, foreign exchange gains or losses, certain non-recurring and/or non-operating income and expenses, and share based compensation. Adjusted EBITDA should not be construed as an alternative for revenue or net loss determined in accordance with IFRS. The Company believes that adjusted EBITDA is a meaningful metric in assessing the Company's financial performance and operational efficiency.
The following table reconciles net earnings or losses to Adjusted EBITDA based on the consolidated financial statements of the Company for the periods indicated.
| 3 months ended March 31, 2024 | 3 months ended March 31, 2023 | |||||||
(US dollars in thousands - unaudited) | $ | $ | ||||||
Net Comprehensive loss | (3,720 | ) | (2,436 | ) | ||||
Add back | ||||||||
Stock based compensation | 199 | 198 | ||||||
Interest | 1,730 | 683 | ||||||
Change in fair value of embedded derivatives | (204 | ) | (92 | ) | ||||
Foreign exchange loss (gain) | 1,677 | (6 | ) | |||||
Amortization | 460 | 285 | ||||||
Adjusted EBITDA | 142 | (1,368 | ) | |||||
Vicinity Motor Corp.
Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
| Note | March 31, 2024 | December 31, 2023 | |||||||
| $ | $ | ||||||||
Current Assets | |||||||||
Cash and cash equivalents | 4,321 | 2,026 | |||||||
Trade and other receivables | 3 | 7,524 | 5,599 | ||||||
Inventory | 4 | 28,234 | 23,273 | ||||||
Prepaids and deposits | 4,530 | 9,748 | |||||||
| 44,609 | 40,646 | ||||||||
Long-term Assets | |||||||||
Intangible assets | 9,687 | 9,815 | |||||||
Property, plant, and equipment | 23,535 | 23,734 | |||||||
| 77,831 | 74,195 | ||||||||
Current Liabilities | |||||||||
Accounts payable and accrued liabilities | 13,917 | 10,162 | |||||||
Credit facility | 5 | 17,993 | 15,926 | ||||||
Current portion of deferred revenue | 4,371 | 4,429 | |||||||
Current portion of provision for warranty cost | 6 | 680 | 612 | ||||||
Current debt facilities | 7 | 8,543 | 8,499 | ||||||
Convertible debt | 8 | 2,575 | 2,658 | ||||||
Current portion of other long-term liabilities | 9 | 1,563 | 1,222 | ||||||
| 49,642 | 43,508 | ||||||||
Long-term Liabilities | |||||||||
Other long-term liabilities | 9 | 9,219 | 9,355 | ||||||
Provision for warranty cost | 6 | 228 | 135 | ||||||
| 59,089 | 52,998 | ||||||||
Shareholders' Equity | |||||||||
Share capital | 10 | 76,802 | 76,802 | ||||||
Contributed surplus | 10 | 8,456 | 8,257 | ||||||
Accumulated other comprehensive (loss) income | 1,479 | 413 | |||||||
Deficit | (67,995 | ) | (64,275 | ) | |||||
| 18,742 | 21,197 | ||||||||
| 77,831 | 74,195 | ||||||||
Vicinity Motor Corp.
Consolidated Statements of (Loss) Income
(In thousands of US dollars, except for per share amounts)
| Note | For the three months ended March 31, 2024 | For the three months ended March 31, 2023 | ||||||||
| $ | $ | |||||||||
Revenue | ||||||||||
Vehicle sales | 13 | 11,858 | 1,467 | |||||||
Other | 13 | 1,376 | 1,182 | |||||||
| 13,234 | 2,649 | |||||||||
Cost of sales | 4 | (11,351 | ) | (2,176 | ) | |||||
Gross profit | 1,883 | 473 | ||||||||
Expenses | ||||||||||
Sales and administration | 1,968 | 1,913 | ||||||||
Stock-based compensation | 10 | 199 | 198 | |||||||
Amortization | 233 | 213 | ||||||||
Interest and finance costs | 7,8,9 | 1,730 | 683 | |||||||
Change in fair value of embedded derivatives | 8 | (204 | ) | (92 | ) | |||||
Foreign exchange loss (gain) | 1,677 | (6 | ) | |||||||
| 5,603 | 2,909 | |||||||||
Net loss | (3,720 | ) | (2,436 | ) | ||||||
Loss per share | ||||||||||
Basic & diluted | (0.08 | ) | (0.05 | ) | ||||||
Weighted average number of common shares outstanding | ||||||||||
Basic & diluted | 45,667,706 | 45,414,367 | ||||||||
Vicinity Motor Corp.
Consolidated Statements of Cash Flows
(In thousands of US dollars)
| Three months ended | Three months ended | |||||||||
| Note | March 31, 2024 | March 31, 2023 | ||||||||
| $ | $ | |||||||||
OPERATING ACTIVITIES | ||||||||||
Net loss for the year | (3,720 | ) | (2,436 | ) | ||||||
Items not involving cash: | ||||||||||
Amortization | 460 | 285 | ||||||||
Unrealized foreign exchange loss (gain) | 1,418 | (32 | ) | |||||||
Interest and finance costs | 7,8,9 | 1,730 | 683 | |||||||
Change in fair value of embedded derivatives | 8 | (204 | ) | (92 | ) | |||||
Stock-based compensation | 10 | 199 | 198 | |||||||
| (117 | ) | (1,394 | ) | |||||||
Changes in non-cash items: | ||||||||||
Trade and other receivables | 3 | (2,050 | ) | (3,095 | ) | |||||
Inventory | 4 | (5,549 | ) | 794 | ||||||
Prepaids and deposits | 4,992 | (1,261 | ) | |||||||
Accounts payable and accrued liabilities | 4,215 | 2,333 | ||||||||
Deferred revenue | 51 | 175 | ||||||||
Warranty provision | 6 | 173 | (710 | ) | ||||||
Taxes paid | - | (54 | ) | |||||||
Interest paid | (1,265 | ) | (343 | ) | ||||||
Cash provide (used) in operating activities | 450 | (3,555 | ) | |||||||
INVESTING ACTIVITIES | ||||||||||
Purchase of intangible assets | (247 | ) | (133 | ) | ||||||
Purchase of property and equipment | (133 | ) | (211 | ) | ||||||
Cash used in investing activities | (380 | ) | (344 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||
Proceeds from issuance of common shares | 10 | - | 867 | |||||||
Share issuance costs | 10 | - | (43 | ) | ||||||
Net proceeds of credit facility | 5 | 2,418 | 762 | |||||||
Financing fees | 5 | - | (191 | ) | ||||||
Proceeds from convertible debt | 8 | - | 2,939 | |||||||
Convertible debt financing fees | 8 | - | (158 | ) | ||||||
Proceeds from long-term loans | 9 | - | - | |||||||
Repayment of long-term loans | 9 | (132 | ) | (131 | ) | |||||
Cash provided by financing activities | 2,286 | 4,045 | ||||||||
Effect of foreign exchange rate on cash and cash equivalents | (61 | ) | 15 | |||||||
Increase in cash and cash equivalents | 2,295 | 161 | ||||||||
Cash and cash equivalents, beginning | 2,026 | 1,622 | ||||||||
Cash and cash equivalents, ending | 4,321 | 1,783 | ||||||||
SOURCE: Vicinity Motor Corp.
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FAQ
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