Second Quarter 2021 Financial Results VANCOUVER, BC / ACCESSWIRE / August 11, 2021 / Vicinity Motor Corp. (TSXV:VMC)(NASDAQ:VEV)(FRA:6LG)("Vicinity Motor" or the "Company"), a leading supplier of electric, CNG, gas and clean diesel buses, today reported its financial and operational results for the second quarter of 2021.
Second Quarter 2021 and Subsequent Operational Highlights
- Revenue grew 119% to $19.1 million in the three months ended June 30, 2021, as compared to $8.7 million for the three months ended June 30, 2020.
- Delivered 46 buses for the three months ended June 30, 2021, as compared to 23 buses for the three months ended June 30, 2020.
- Commenced trading of the Company's common shares on the Nasdaq Capital Market under the symbol "VEV" to help elevate the Company's public profile, expand its shareholder base, improve liquidity and enhance shareholder value.
- Received $7.5 million in proceeds from accelerated warrant exercises, further fortifying the Company's balance sheet to $10.2 million in cash, with no remaining warrants outstanding.
- Received significant governmental support with statewide purchasing contracts, rebate eligibility and grant awards.
- Awarded authorization from MBTA on behalf of the largest state transit association in the U.S., the California Association for Coordinated Transportation, for consortium members to select Vicinity buses in a statewide purchasing contract that gives State transit agencies authority to purchase "Buy America" compliant buses directly from the Company's diverse portfolio through its distribution partner ABC Companies.
- Vicinity™ buses selected for Washington statewide purchasing contract that gives state transit agencies the right to purchase from the Company's diverse bus portfolio.
- Received approval for a grant of US$300,000 from Washington State Department of Commerce Economic Development Strategic Reserve Fund (SRF) to assist Vicinity in building its new Vicinity Lightning™ EV and Buy America compliant bus assembly facility in Whatcom County, Washington.
- Groundbreaking ceremony marking the start of construction on the Company's new Buy America compliant vehicle assembly facility in Ferndale, Washington attended by Washington State Governor Jay Inslee.
- Vicinity Lightning™ EV bus and EV trucks received eligibility for customer rebates of up to 33% of the purchase price through the Canadian Province of British Columbia's CleanBC Go Electric Program.
- Entered into the medium duty truck market with the development of a fully electric Class 3 vehicle with 12,000 lb GVWR rating, with initial deliveries expected to begin in the first quarter of 2022.
- Strong sales momentum with the addition of 46 new VMC 1200 Class 3 electric truck, Vicinity Classic, and Lightning™ EV bus purchase orders.
- 14 Vicinity Lightning™ EV buses valued at over $6.0 million from Calgary Transit, the City of Calgary's transit authority.
- 15 Vicinity™ CNG buses for a total value of over $6.0 million from a leading Canadian provincial public transportation provider.
- Four Vicinity™ buses for a total value of over $1.6 million from the County of Simcoe in Ontario, Canada.
- Three clean-diesel Vicinity™ Classic buses from Qubec Private Transit Operator Le Groupe Transbus.
- Received an initial order from a private operator in British Columbia for 10 VMC 1200 Class 3 electric trucks valued at over $1.0 million.
- New strategic partnerships powering drivetrain technology advancements
- Announced strategic partnership to explore deploying Exro Technologies' enhanced powertrain system into Vicinity's next-generation electric bus fleet, expected to provide increased performance and extended range.
- Partnered with Danfoss Editron, a business division of Danfoss, to utilize its drivetrain systems in the medium duty fully electric Vicinity Lightning™ EV Bus.
Management Commentary
"The second quarter of 2021 was highlighted by ongoing sales momentum, and validation of our strategy from enterprise customers, state and government agencies, and the broader capital markets," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "We delivered twice as many buses in the second quarter as compared to the same year ago quarter. This traction in the marketplace is a testament to the incredible support we are receiving from state transit authorities, such as our recent approval from the California Association for Coordinated Transportation - creating a significant opportunity in the largest addressable market within the United States.
"Second quarter sales were strong, with 46 orders fulfilled across our VicinityTM Classic line with further orders being received for our breakthrough Vicinity Lightning™ EV lines of buses. Additionally, we secured an initial order for our newest product, the fully electric VMC 1200 Class 3 Truck, designed to compete in the medium duty truck category. Our sales team is building interest through our robust network of existing dealerships throughout North America and we look forward to announcing additional orders and customers for all our products in the coming months.
"During the quarter we also achieved several key capital markets milestones for the benefit of our valued shareholders. Most notably, we recently completed our uplisting to the Nasdaq to introduce our company to a broader base of U.S. institutional investors. We fortified our balance sheet in the quarter as well, as all outstanding warrants were exercised, bringing our cash balance to $10.2 million in addition to our undrawn $20 million credit facility.
"Looking ahead to the remainder of 2021, we will be anything but complacent with our recent successes- continuing to enhance our product offering with the goal of further strengthening our position in the next-generation electric vehicle space. We expect our relationships with North American transit agencies to further expand, propelled by government support and the consumer desire for a transition to a more sustainable public transportation system. Taken together, we are incredibly well positioned to create long-term value for our shareholders, and I look forward to announcing new sales, product and strategic milestone achievements in the months to come," concluded Trainer.
Second Quarter 2021 Financial Results
Revenue grew 119% to $19.1 million in the second quarter of 2021, as compared to $8.7 million in the same year-ago quarter. The increased revenue was primarily driven by the delivery of 46 buses in the quarter, as compared to 23 buses in the second quarter of 2020. Revenue grew 266% to $46.4 million for the six months ended June 30, 2021, as compared to $12.7 million in the six months ended June 30, 2020. The Company delivered 113 buses in the first half of 2021, as compared to 29 buses for the first half of 2020.
Gross profit increased to $2.1 million, or 11.2% of revenue, in the second quarter of 2021, as compared to a gross profit of $0.5 million, or 5.7% of revenue, in the same year-ago quarter. Gross profit increased to $6.5 million, or 13.9% of revenue for the six months ended June 30, 2021, as compared to gross profit of $0.6 million, or 4.7% of revenue for the six months ended June 30, 2020. The margins in the second quarter of 2021 were positively affected by sales mix and higher volumes, with 2021 deliveries generally having higher expected margins than those realized in 2020.
Net loss for the second quarter of 2021 decreased to $0.4 million, or ($0.01) per share, as compared to a net loss of $0.8 million, or ($0.03) per share, in the same year-ago quarter. Net income for the six months ended June 30, 2021 was $1.7 million, as compared to a net loss of $2.5 million for the six months ended June 30, 2020.
Adjusted EBITDA for the second quarter of 2021 increased to $0.3 million, as compared to an adjusted EBITDA loss of $0.5 million in the same year-ago quarter. Adjusted EBITDA for the six months ended June 30, 2021 was $2.9 million, as compared to an adjusted EBITDA loss of $1.8 million for the six months ended June 30, 2020.
Working capital as of June 30, 2021 totaled $24.4 million, as compared to $16.7 million as of December 31, 2020. Working capital increased due to strong demand for the Company's buses, with ongoing liquidity provided primarily by robust revenues and the exercise of all outstanding warrants.
Second Quarter 2021 Results Conference Call
Date: Wednesday, August 11, 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: 10159285
Webcast: https://public.viavid.com/index.php?id=146136
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 Saturday, September 11, 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 10159285. A webcast will also be available by clicking here: Vicinity Q2 2021 Webcast.