Vicinity Motor Corp. Reports Third Quarter 2021 Financial Results
Vicinity Motor Corp. (NASDAQ:VEV) announced strong prospects for FY2022, projecting revenues of at least $140 million and adjusted EBITDA of at least $10 million. Key operational highlights include partnerships with EAVX and Optimal-EV, with expected revenues from firm orders totaling $30 million in 2022 and potential sales of $194 million through 2023. However, Q3 2021 revenues fell 67% to $2.9 million, largely due to supply chain issues and pandemic impacts. The net loss for Q3 2021 was $4.8 million or ($0.16) per share.
- Financial guidance of at least $140 million in revenues for FY2022.
- Strategic partnerships expected to generate significant revenue streams.
- New purchase orders secured, indicating strong demand for electric vehicles.
- Q3 2021 revenue decreased 67% compared to the same period last year.
- Net loss of $4.8 million in Q3 2021, worsening from a loss of $1.3 million in Q3 2020.
New Strategic Partnerships with Optimal-EV and EAVX Build Foundation for Breakthrough FY2022, with Projected Revenues of at Least
VANCOUVER, BC / ACCESSWIRE / November 12, 2021 / Vicinity Motor Corp. (TSXV:VMC) (NASDAQ:VEV) (FRA:6LG)("Vicinity Motor" or the "Company"), a North American supplier of commercial electric vehicles, today reported its financial and operational results for the third quarter of 2021.
Third Quarter 2021 and Subsequent Operational Highlights
- Provided FY2022 financial guidance of revenues of at least
$140 million and adjusted EBITDA of at least$10 million , with significant potential upside driven by strong North American sales momentum. - Announced strategic collaboration agreement with EAVX, a business unit of North American commercial automotive leader JB Poindexter, to sell Vicinity's proprietary electric chassis for upfitting into next-generation municipal and delivery vehicles.
- Signed a 10-year licensing agreement to serve as the exclusive North American and European distributor of the S1 and E1 product lines from Optimal-EV, a developer and manufacturer in the low-floor electric shuttle bus and electric delivery truck segments, enabling access to USD
$30 million in firm orders for delivery in 2022 and LOIs with existing dealers for potential sales of USD$194 million through 2023. - Secured
$15.5 million in new purchase orders for 38 Vicinity™ Classic Buses from leading Quebec transit operators. - Received LOI for 100 VMC 1200 EV Trucks from Pioneer Auto Group, a leading retail automotive dealer in British Columbia, representing
$14.0 million in anticipated revenue. - Appointed respected commercial transportation veteran Brent Phillips as Senior Director of Sales, North America to spearhead near-term sales growth.
- Fortified the balance sheet through a
$10.3 million debt financing and a US$17.0 million underwritten public offering of common shares, supplementing Vicinity's undrawn$20.0 million revolving credit facility and existing cash position. - Presented at multiple industry and investor conferences nationally including the SNN Network Summer Virtual Event, the H.C. Wainwright 23rd Annual Global Investment Conference, the LD Micro Main Event, the CALACT 2021 Autumn Conference & Expo and the APTA TRANSform Conference & Expo.
Management Commentary
"The third quarter of 2021 was instrumental in our foundation building for 2022, having secured exciting new lines of business - namely EV chassis sales alongside EAVX and low-floor electric shuttle bus sales through our new partner Optimal-EV," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "While revenues from our transit bus business are at times irregular and see some periods of lower deliveries as illustrated this quarter, per the financial guidance we've released, we are on a trajectory to realize over
"We made significant moves towards fortifying our balance sheet in recent months as well to support some of these exciting new growth initiatives, supplementing our
"Our near-term sales momentum is beginning to accelerate and given the inherent delay between a customer placing a purchase order today and the revenue realized from vehicle deliveries months later, I firmly believe that we are lining ourselves up for a strong 2022. This creates the potential to notably exceed our financial guidance - helping to generate sustainable, long-term value for our shareholders," concluded Trainer.
Third Quarter 2021 Financial Results
Revenue decreased
Gross loss totaled
Net loss for the third quarter of 2021 was
Adjusted EBITDA loss for the third quarter of 2021 was
Cash and cash equivalents as of September 30, 2021 totaled
Third Quarter 2021 Results Conference Call
Date: Friday, November 12, 2021
Time: 4:30 p.m. Eastern time
U.S./Canada Dial-in: 1-877-300-8521
International Dial-in: 1-412-317-6026
Conference ID: 10161722
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1509656&tp_key=0936465e20
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 Sunday, December 12, 2021. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally. Please use the replay pin number 10161722. A webcast will also be available by clicking here: Vicinity Q3 2021 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, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. In addition, the Company sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the Company's strategic partner, for upfitting into next-generation delivery vehicles. For more information, please visit www.vicinitymotorcorp.com.
Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@grandewest.com
Investor Relations Contact:
Lucas Zimmerman or Mark Schwalenberg, CFA
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, including without limitation, statements regarding anticipated vehicle deliveries, future sales, completion of its assembly facility in the State of Washington, vehicle market acceptance and strategic partnerships, 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, the timing of the completion of the vehicle assembly facility in the State of Washington, the effect of the COVID-19 pandemic, related government-imposed restrictions on operations, 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 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 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 September 30, 2021 | 3 months ended September 30, 2020 | 9 months ended September 30, 2021 | 9 months ended September 30, 2020 | |||||||||||||
(Canadian dollars in thousands - unaudited) | $ | $ | $ | $ | ||||||||||||
Net loss | (4,796 | ) | (1,309 | ) | (3,147 | ) | (3,834 | ) | ||||||||
Add back | ||||||||||||||||
Stock based compensation | 838 | 256 | 1,317 | 404 | ||||||||||||
Interest | 39 | 230 | 261 | 564 | ||||||||||||
Foreign exchange loss (gain) | 16 | (99 | ) | 89 | (304 | ) | ||||||||||
Income tax expense | 29 | - | 29 | - | ||||||||||||
Loss on disposal of property and equipment | 69 | - | 69 | - | ||||||||||||
Amortization | 343 | 247 | 839 | 739 | ||||||||||||
Adjusted EBITDA | (3,462 | ) | (675 | ) | (543 | ) | (2,431 | ) | ||||||||
Non-GAAP financial measure - working capital
Working capital is a non-GAAP measure calculated as current assets less current liabilities. Working capital does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies.
Non-GAAP financial measure - gross profit
Gross profit is a non-GAAP measure calculated as the difference between revenue and cost of sales. Gross profit expressed as a percentage is calculated as the difference between revenue and cost of sales, divided by revenue.
Vicinity Motor Corp. (Formerly Grande West Transportation Group Inc.)
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, in thousands of Canadian Dollars)
| Note | September 30, 2021 | December 31, 2020 | |||||||
$ | $ | ||||||||
| Current Assets | |||||||||
Cash and cash equivalents | 4,956 | 1,283 | |||||||
Restricted cash | - | 358 | |||||||
Trade and other receivables | 3,465 | 4,149 | |||||||
Inventory | 3 | 9,129 | 32,614 | ||||||
Prepaids and deposits | 6,680 | 2,426 | |||||||
| 24,230 | 40,830 | ||||||||
Long-term Assets | |||||||||
Intangible assets | 3,710 | 2,174 | |||||||
Property and equipment | 10,872 | 4,032 | |||||||
| 38,812 | 47,036 | ||||||||
Current Liabilities | |||||||||
Accounts payable and accrued liabilities | 4,492 | 12,908 | |||||||
Credit facility | 5 | - | 5,759 | ||||||
Current portion of deferred revenue | 6 | 1,272 | 1,899 | ||||||
Current portion of provision for warranty cost | 7 | 1,874 | 763 | ||||||
Current debt facilities | 8 | - | 2,532 | ||||||
Current portion of other long-term liabilities | 225 | 275 | |||||||
| 7,863 | 24,136 | ||||||||
Long-term Liabilities | |||||||||
Other long-term liabilities | 136 | 278 | |||||||
Provision for warranty cost | 7 | 611 | 256 | ||||||
| 8,610 | 24,670 | ||||||||
Shareholders' Equity (Deficiency) | |||||||||
Share capital | 9 | 54,899 | 46,468 | ||||||
Contributed surplus | 9 | 5,733 | 3,164 | ||||||
Accumulated other comprehensive loss | (36 | ) | (19 | ) | |||||
Deficit | (30,394 | ) | (27,247 | ) | |||||
| 30,202 | 22,366 | ||||||||
| 38,812 | 47,036 | ||||||||
Interim Condensed Consolidated Statements of Income (Loss)
(Unaudited, in thousands of Canadian dollars, except for per share amounts)
| Note | For the three months ended September 30, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2021 | For the nine months ended September 30, 2020 | ||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Bus sales | 12 | 2,109 | 7,985 | 45,772 | 18,652 | |||||||||||||||||||
Other | 12 | 812 | 936 | 3,544 | 2,939 | |||||||||||||||||||
| 2,921 | 8,921 | 49,316 | 21,591 | |||||||||||||||||||||
Cost of sales | 3 | (3,648 | ) | (8,355 | ) | (43,573 | ) | (20,436 | ) | |||||||||||||||
Gross (loss) profit | (727 | ) | 566 | 5,743 | 1,155 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Sales and administration | 2,969 | 1,328 | 6,677 | 3,847 | ||||||||||||||||||||
Stock-based compensation | 838 | 256 | 1,317 | 404 | ||||||||||||||||||||
Amortization | 178 | 160 | 517 | 478 | ||||||||||||||||||||
Interest and finance costs | 5,8 | 39 | 230 | 261 | 564 | |||||||||||||||||||
Foreign exchange loss (gain) | 16 | (99 | ) | 89 | (304 | ) | ||||||||||||||||||
| 4,040 | 1,875 | 8,861 | 4,989 | |||||||||||||||||||||
Loss before taxes | (4,767 | ) | (1,309 | ) | (3,118 | ) | (3,834 | ) | ||||||||||||||||
Current income tax expense | 29 | - | 29 | - | ||||||||||||||||||||
Net loss | (4,796 | ) | (1,309 | ) | (3,147 | ) | (3,834 | ) | ||||||||||||||||
Loss per share | ||||||||||||||||||||||||
Basic & diluted | (0.16 | ) | (0.05 | ) | (0.11 | ) | (0.15 | ) | ||||||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||
Basic & diluted(1) | 29,826,211 | 25,331,834 | 29,824,442 | 25,331,834 | ||||||||||||||||||||
(1) Basic and diluted earnings (loss) per share have been retrospectively adjusted to give effect to the 3 to 1 share consolidation effective March 29, 2021.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands of Canadian dollars)
| Note | Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | ||||||||||||
$ | $ | |||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
Net loss for the year | (3,147 | ) | (3,834 | ) | ||||||||||
Items not involving cash: | ||||||||||||||
Loss on disposal of property and equipment | 69 | - | ||||||||||||
Amortization | 839 | 739 | ||||||||||||
Foreign exchange gain | (2 | ) | (26 | ) | ||||||||||
Interest and finance costs | 261 | 564 | ||||||||||||
Stock-based compensation | 9 | 1,317 | 404 | |||||||||||
| (663 | ) | (2,153 | ) | |||||||||||
Changes in non-cash items: | ||||||||||||||
Trade and other receivables | 498 | 3,897 | ||||||||||||
Inventory | 3 | 20,208 | 1,491 | |||||||||||
Prepaids and deposits | (2,569 | ) | (1,187 | ) | ||||||||||
Accounts payable and accrued liabilities | (8,417 | ) | (537 | ) | ||||||||||
Deferred revenue | (633 | ) | 78 | |||||||||||
Warranty provision | 7 | 1,450 | (365 | ) | ||||||||||
Cash from operating activities before interest paid | 9,874 | 1,224 | ||||||||||||
Interest paid | (208 | ) | (394 | ) | ||||||||||
Cash from operating activities | 9,666 | 830 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Purchase of intangible assets | (2,381 | ) | - | |||||||||||
Purchase of property and equipment | 4 | (3,616 | ) | (180 | ) | |||||||||
Proceeds on disposal of property and equipment | 105 | - | ||||||||||||
Restricted cash | 358 | - | ||||||||||||
Cash (used in) investing activities | (5,534 | ) | (180 | ) | ||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Proceeds from issuance of common shares | 9 | 8,007 | - | |||||||||||
Repayments of credit facility | 5 | (5,766 | ) | (2,103 | ) | |||||||||
Proceeds from current debt facilities | 8 | - | 2,219 | |||||||||||
Repayment of current debt facilities | 8 | (2,562 | ) | (52 | ) | |||||||||
Repayment of convertible debt | 8 | - | (24 | ) | ||||||||||
Repayment of long-term loans | (202 | ) | (183 | ) | ||||||||||
Cash (used in) financing activities | (523 | ) | (143 | ) | ||||||||||
Effect of foreign exchange rate on cash | 64 | 22 | ||||||||||||
Increase in cash and cash equivalents | 3,673 | 529 | ||||||||||||
Cash and cash equivalents, beginning | 1,283 | 757 | ||||||||||||
Cash and cash equivalents, ending | 4,956 | 1,286 | ||||||||||||
SOURCE: Vicinity Motor Corp.
View source version on accesswire.com:
https://www.accesswire.com/672655/Vicinity-Motor-Corp-Reports-Third-Quarter-2021-Financial-Results
FAQ
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