VANCOUVER, BC / ACCESSWIRE / August 15, 2022 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today reported its financial and operational results for the second quarter ended June 30, 2022.
Second Quarter 2022 and Subsequent Operational Highlights
- Secured order backlog exceeding $90 million, the majority of which are for electric vehicles.
- Received an order from the TOK Group, a transportation solutions provider, for six Vicinity Lightning™ electric buses valued at over CAD$3.0 million to support the shuttle bus service at Billy Bishop Toronto City Airport.
- VMC 1200 Class 3 electric trucks qualified for the recently approved Incentives for Medium and Heavy-duty Zero-Emission Vehicles (iMHZEV) Program administered by Transport Canada, a $550 million subsidy program which helps to make buying or leasing zero-emission vehicles more affordable.
- Signed multiple new distribution agreements to offer the Company's product portfolio in the United States with:
- Schetky Bus and Van Sales, a dealership and transportation solutions provider, to offer the Vicinity Lightning TM , Vicinity Classic and VMC-Optimal vehicles, including an initial commitment for 18 vehicles.
- Soderholm Sales & Leasing, a full-service bus dealer in Hawaii and the Pacific Islands region, including an initial commitment for four vehicles.
- Hoekstra Transportation, Michigan's largest school bus, commercial bus, cargo and custom van dealer, for the territory of Michigan, Indiana and Ohio, including an initial order for eight vehicles.
- Central States Bus Sales, Inc., one of the largest school and commercial bus dealers in the U.S., including an initial commitment for 18 vehicles for the central U.S. territory.
- Entered into a Master Goods and Service Agreement with Sustainability Partners LLC, an ESG focused company committed to eliminating deferred maintenance infrastructure by enabling sustainability, to utilize its Electric Vehicles as a Service™ (EVaaS) program to finance the conversion of traditional government fleets to Vicinity's electric vehicles.
- Completed a one-year extension of the maturity date of its 8% unsecured debenture in the principal amount of CAD$10.3 million to October 4, 2023.
- Presented at several leading automotive industry and investor conferences nationally including the Benzinga All-Access Show, the Diamond Equity Research Virtual Emerging Growth Invitational, the Advanced Clean Transportation Expo, the Planet MicroCap Showcase 2022 and the Stifel 2022 Transportation & Logistics Conference
"The second quarter of 2022 was marked by additional sales and distribution wins for our portfolio of electric vehicles, further validating our transition to electric vehicles," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "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.
"We delivered 34 vehicles in the second quarter - surmounting supply chain issues in some areas, while facing new obstacles in others. The global automotive industry supply chain continues to be stretched - until such a time that it catches up to demand, we will continue to work to engineer creative new solutions to address new problems wherever possible. Our goal is to continue to provide vehicles to our customers despite this environment, and we will continue to do so to the greatest extent possible. That being said, given the pressures we are seeing, we are suspending our prior financial guidance as the current supply chain environment makes it difficult to forecast and it appears many orders may be pushed from 2022 to 2023.
"Our Ferndale, Washington facility is nearing completion - helping us to meet customer demand and capture market share in the U.S. with an American-built and ‘Buy America' compliant product. We also plan on making this the new home to support our industrial electric truck line starting with the VMC 1200.
"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," concluded Trainer.
Second Quarter 2022 Financial Results
All figures stated in this press release are in U.S. dollars unless stated otherwise.
Revenue totaled $11.7 million in the second quarter of 2022, 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. Revenue totaled $14.9 million for the six months ended June 30, 2022, as compared to $37.1 million in the six months ended June 30, 2021. The Company delivered 40 vehicles in the first half of 2022, as compared to 113 deliveries for the first half of 2021, with the decrease primarily a result of global supply chain disruptions.
Gross profit in the quarter ended June 30, 2022 totaled $1.0 million, or 8.7% of revenue, as compared to $1.7 million, or 11.1% of revenue, for the quarter ended June 30, 2021. Gross profit totaled $1.2 million, or 8.3% of revenue for the six months ended June 30, 2022, as compared to gross profit of $5.1 million, or 13.8% of revenue for the six months ended June 30, 2021. Gross margins were affected by product mix and the low volume of buses delivered. Shipping difficulties and global supply chain disruptions in the availability of chassis for our VMC Optimal products and certain bus components continues to delay deliveries.
Cash provided by operating activities in the six months ended June 30, 2022 totaled $0.2 million, as compared to cash provided by operating activities of $12.0 million in the first half of 2021.
Net loss in the quarter ended June 30, 2022 was $3.8 million, or $(0.10) per share, as compared to a net loss of $0.3 million, or ($0.01) per share, in the second quarter of 2021. Net loss for the six months ended June 30, 2022 was $6.7 million, as compared to net income of $1.3 million for the six months ended June 30, 2021.
Adjusted EBITDA loss for the three months ended June 30, 2022 totaled $1.3 million, as compared to adjusted EBITDA of $0.2 million for the three months ended June 30, 2021. Adjusted EBITDA loss for the six months ended June 30, 2022 was $3.3 million, as compared to an adjusted EBITDA of $2.3 million for the six months ended June 30, 2021.
Cash and cash equivalents as of June 30, 2022 totaled $9.4 million, as compared to $4.4 million as of December 31, 2021.
Second Quarter 2022 Results Conference Call
Management will host an investor conference call at 4:30 p.m. Eastern time on Monday, August 15, 2022 to discuss Vicinity Motors' second quarter financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information:
Q2 2022 Conference Call and Webcast
Date: Monday, August 15, 2022
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: 10169971
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 Thursday, September 15, 2022. 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 10169971. A webcast will also be available by clicking here: Vicinity Motors Q2 2022 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 .
VP Corporate Development
Canadian Investor Relations Contact:
MarketSmart Communications Inc.
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, 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 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.
|(US dollars in thousands - unaudited)|
3 months ended June 30, 2022
3 months ended June 30, 2021
6 months ended June 30, 2022
6 months ended June 30, 2021
|Net (loss) income||(3,789)||(344)||(6,675)||1,257|
|Stock based compensation||166||259||463||384|
|Gain on modification of debt||(803)||-||(803)||-|
|Foreign exchange loss (gain)||1,572||42||784||58|
|Loss on disposal of property and equipment||18||-||18||-|
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited, In thousands of US Dollars)
|Note||June 30, 2022||December 31, 2021|
|Cash and cash equivalents||9,357||4,402|
|Trade and other receivables||2,963||2,810|
|Prepaids and deposits||4,398||4,178|
|Property, plant, and equipment||6||20,463||10,834|
|Accounts payable and accrued liabilities||7,261||2,915|
|Current portion of provision for warranty cost||8||1,703||1,414|
|Current debt facilities||-||7,143|
|Current portion of other long-term liabilities||9||456||134|
|Other long-term liabilities||9||8,137||92|
|Provision for warranty cost||8||212||255|
|Accumulated other comprehensive (loss) income||179||(151)|
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of (Loss) Income
(Unaudited, In thousands of US dollars, except for per share amounts)
|For the three||For the three||For the six||For the six|
|ended June 30,||ended June 30,||ended June 30,||ended June 30,|
|(Restated, Notes 3 and 16)||(Restated, Notes 3 and 16)|
|Cost of sales||4||(10,718)||(13,802)||(13,691)||(31,926)|
|Sales and administration||2,371||1,570||4,751||2,980|
|Interest and finance costs||7,9||599||51||1,186||177|
|Gain on modification of debt||9||(803)||-||(803)||-|
|Foreign exchange loss||1,572||42||784||58|
|(Loss) income before taxes||(3.580)||(344)||(6,466)||1,257|
|Current income tax expense||209||-||209||-|
|Net (loss) income||(3,789)||(344)||(6,675)||1,257|
|Loss per share|
|Weighted average number of common shares outstanding|
(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.
Vicinity Motor Corp.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited, In thousands of US dollars)
|Six months ended||Six months ended|
|Note||June 30, 2022||June 30, 2021|
|(Restated, Note 3)|
|Net (loss) income for the year||(6,675)||1,257|
|Items not involving cash:|
|Loss on disposal of property and equipment||18||-|
|Gain on modification of debt||9||(803)||-|
|Foreign exchange (gain) loss||(78)||60|
|Interest and finance costs||7,9||1,186||177|
|Changes in non-cash items:|
|Trade and other receivables||660||1,191|
|Prepaids and deposits||(298)||(753)|
|Accounts payable and accrued liabilities||4,607||(7,147)|
|Cash provided in operating activities||175||11,960|
|Purchase of intangible assets||5||(328)||(1,518)|
|Proceeds from government subsidy||5||817||-|
|Purchase of property and equipment||6||(8,225)||(2,981)|
|Proceeds on disposal of property and equipment||6||247||-|
|Cash used in investing activities||(7,489)||(4,499)|
|Proceeds from issuance of common shares||10||13,063||6,495|
|Share issuance costs||10||(1,131)||-|
|(Repayments) proceeds of credit facility||7||659||(4,624)|
|Repayment of short-term loans||9||-||(2,038)|
|Repayment of long-term loans||9||(186)||(100)|
|Cash provided by financing activities||12,405||(267)|
|Effect of foreign exchange rate on cash||(136)||35|
|Increase in cash and cash equivalents||4,955||7,229|
|Cash and cash equivalents, beginning||4,402||1,008|
|Cash and cash equivalents, ending||9,357||8,237|
SOURCE: Vicinity Motor Corp.
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