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Vicinity Motor Corp V.VMC

Alternate Symbol(s):  VEV

Vicinity Motor Corp. is a Canada-based supplier of electric vehicles for both public and commercial enterprise use. The Company is engaged in the production and sale of buses and spare parts in North America. It leverages a dealer network and close relationships with manufacturing partners to supply its flagship electric, compressed natural gas (CNG) and clean-diesel vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. In addition, the Company sells its electric chassis alongside J.B. Poindexter business unit EAVX, which is the Company's partner, for upfitting into delivery vehicles. The Company's various buses and truck models include Vicinity Lightning EV, Vicinity Classic and VMC 1200. Its geographic segments include United Stated and Canada. The Company’s subsidiaries include Vicinity Motor (Bus) USA Corp. and Vicinity Motor (Bus) Corp.


TSXV:VMC - Post by User

Post by RealValon Dec 19, 2023 6:03pm
132 Views
Post# 35792709

Under appreciated value in legacy bus business

Under appreciated value in legacy bus businessI think VMC’s legacy diesel and CNG powered bus “ongoing biz” is being way under-appreciated and valued relative to it’s contributions of stable revenue as the company builds up it’s ev biz. This last order of 8 diesel busses is probaly worth between 3.5 to 4 mil in revenue and most importantly at a 20% GM that’s 700k to 800k of contribution to cover operating expenses. In 2023 alone they announced a total of 50 non-ev bus sales. At a conservative av. of 350k per bus and 15% Gross Margin that is still 17.5 Mil rev and 2.6 Mil of contribution to op. expenses. To say nothing of the growing parts and service revenue from those busses that have margins more in the 30% range. This ongoing business is a major reason why Vicinity has been able to establish an ev line of busses and trucks without blowing through tens or even hundreds of Millions of dollars like the Proterra’s, lighting emotors and even Lion Electrics have done. To say nothing of fact that those established customer relationships with cities, municipalities, bus transport biz’s make the presenting and selling to these groups ev’s (busses AND trucks) as and when their ready to transition to ev’s much more possible. There is value in this stability that is certainly not being recognized right now, but is nonetheless very valuable for those who do understand it. Hope you all have a great holiday season.
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