Workhorse (WKHS) 8 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, greetings, and welcome to Workhorse Group's Third Quarter 2022 Investor Call.

As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Workhorse Group's Vice President of Corporate Development and Communications, Stan March. Sir, you may begin.

Thank you, Rob. to XXXX you results welcome today's us and quarter third call. morning, all joining of on Good

Before we September begin, posted press our I'd like to for release. third note the quarter ending XX, via results XXXX, that we've

can accompanying on the our the well of presentation section find this Relations You as website. as release Investor

our Form XX-Q filed morning. also We this third quarter

release website from presentation so please today, And will We the in let's the link during get be our tracking with call or the that, with press along directly. the either through posted started. follow

call me on Rick Joining and CEO; Bob our today's are Dauch, our CFO. Ginnan,

We today, agenda which X. on Slide have a is straightforward found

on remarks, you us operational quarter XXXX priorities our who I'll opening of and over it for will the my third our we'll an to year. walk the take give on for then quarter Bob will Rick, results the cover made your Then questions. strategic Following update this through and hand we've financial our guidance. progress

disclaimer Our on X. Slide be can found

the of therefore, made and today provisions certain risks will comments subject be and to to subject uncertainties. are are and are forward-looking, that Some

You can Form on and well our with statement find disclaimer filings as press periodic as full the SEC today's release. in file in other XX-Q the

I'll call now Rick? over turn the to Dauch. Rick

for on highlights Good here the at quarter third the Stan. here today. and time some a X. thanks of morning productive very We taking Workhorse, Thanks, everyone to had join us Slide are and

focused and just sales I team cover quarter, shortly. start capable vehicle experience mentioned a those and our and hires critical that and me key during the Let a I'd that, area quarter. we Last brief with will of us summary commercial details did for was hire

and Aero, to experience These supply another at XX and City in more both individuals strengthen operating new Additionally, in manager manufacturing than bringing Hiring to aerospace. industry vehicles commercial and of flight chain. a roles. in we plus bring Vice technology their and on Presidents Union and new one two operations technical years plant in board and teams relevant each continue our

our staffs We back on in professionals to also made experienced important IT improve additions processes to bring systems. our and office and finance, administration HR

front, our WX report pleased product CCs the across to an and progress I'm first safe, in hands extremely product our roadmap. we important delivered our for portfolio was made that the milestone On reliable vehicles Workhorse team. customers' Getting entire

the Importantly, program and remains WXX on on schedule budget.

and preparations this here on necessary later. We completed for testing and vehicle experienced QX, we the also CXXXX Tropos I in vehicles did and provide the will details launch a setback about bit executing a

We facilities also across and doing less logistical transforming operations, flight what including aerospace, in other we're our testing made In XXX while and we Horsefly days. for for the call Assistance a developed expanding testing we than process and several significant upgrading platform new capabilities. final the initiatives, major in HALO, the our engineering Humanitarian of strides and

our equipment are move the developing to government grants production enquiring into in are on and executing and necessary and We drone XXXX. skills

We initiative. the believe effort to transition changing challenges Workhorse of game better customers the are to this vehicles. understand fleet our Stalls make needs they introducing essential we our & as electric is Today, Stables for and

announced a is and and step end. a to settlement continue class address after for legacy including important overhang we quarter the at the very Finally, of lawsuit, This issues the action remove here proposed uncertainty from us recent was Workhorse. business, which

fixed executing Slide our have been Throughout strategy, team. stabilized focused with this capable a year, experienced on Turning to past leadership building which grow and starts we and X.

as sales administrative and and a professional. President vehicle sales, spent across that leaders, hard of She success absolutely functions. it's America. and is sales years quarter, end, plus hit operations, Truck Workhorse. team Western having XX electromobility put hired players, new the bring first responsible working people third experience, relevant areas during regional team to all Sales last are company. sales and the commercial a to for experience both all She We combined Ameigh, engineering, is including of with of Vehicle we of Volvo U.S. of who North with already the of three Marketing, truck have ethical the a industry commercial hired nearly and a XXX simply believe Chris Vice XX hired the running who associates ground We To has across sales region organization, Commercial years long-term for and Chris transformation critical our our cohesive

We few also true hired than we brings Analytics Renee and parts operational transition and These to warranty experience. finished pioneers us XX years functional, requirements who the exception we continue hiring specialized to at essential here in industry level as a would Services, that analytics as leaders OEM up to Field become and for Stevens of were more Data I as and our – fill the such to data Director commercial build positions of say now for our of and with team to engineering are hiring Workhorse. position with senior the EVs. of services, us

in motivated located at Aero Ohio. Mason, now and plant City, focus shifts adding factories and the Our our to teams to Union Indiana and capable CV

progress WXXX to Turning our to with roadmap on we WXCC. make excellent the Start Slide and product revised plans. offerings, our continue X Class X, the

reinforces production products production fill product market. today's critical WXX and in that between As interest CXXXX EV strong our these customer differentiated to initial The belief a serve platforms. these a the gap vehicles are future and reminder, of our WXX limited vehicles our for

first in van pilot the XX quarter cousin, to delivery on at in QX. third package so builds QX. another the our build the remainder track WXCCs complete ramping The the are and and far WXX production top, XX delivery we remains close and delivered initial production during As throughout during we delivered up I XXXX. WXCCs vehicles the of We mentioned the quarter WXCC

as the van platform. quarters market X WXX, the chassis designed and segments. to Turning new fully Workhorse and built truck introduced Class the serve vehicle purpose and will which first we This delivery three ago X step

plans for continuing Tier to of on QX. the America. Early been begin were in in to production XX% suppliers, the platform has Sharonville About assembled are here proven and to executing of We sourced and vehicles bill program majority in already track are North the in of QX WXX XXXX. X our materials vast located mules Wixom

demo we intent XXXX QX vehicles complete as production built City both QX, of QX We be testing FMVSS expect and to in we in customer XXXX, durability well. Union in delivered and in vehicles will

of CXXXX. was engineering which quarter, on the to the the intended resolve the the suspension, to Last Moving we front problems platform. redesign completed

However, a in designed. component proved rear loaded to the testing during fully durability insufficiently third be quarter, suspension

procuring part. the We are the now of in redesign process

to result, of by existing a during as have the to testing year then production the we Based vehicles we restart on As not. will prepare completed fourth the expect we the end durability and testing decide now whether quarter. results, or CXXXX

frustrating, timing single more this on to our us reliable delay every While for to and rely the vehicles have far important job the is do on day. safe it's that customers can road

full and produce X, our industry OEM of Slide think in a size plan. the is to significant modern scale differentiators from Moving ability today quality the one to vehicles at most that I

Today about Workhorse to renovated announcing Ranch and year You me I plant that am have run. expanded improvements speak Union for is ready City heard our the now. over a

completed of complex, track. we Union warehouse the City During transformation completing and quarter, the the the the upgrading test

initial plant we've into to started discussed, plenty and facility truly X grow. in flexible room The we've with As the open, class operation transformed vehicles the Class production of world a space quarter. manufacturing of

to scheduled we begin future XXXX, for are staff As to each in schedules. production current finalizing and week QX adding layouts hourly actively WXX of meet build

for Technologies part year manufacturing per December track City agreement do of of a up expected for team to are reach Analyst to final with in on to in us production U.S. Ranch. the are XXXX for hope has assembly market in XXXX. Tropos of Workhorse many to also is Volumes are reinvigorating see once been beginning as our you contract asset, Day XXXX the three vehicles We foundational Tropos units join X, to on complete. able able of these for QX our Union assemble that year I ramp the firsthand vehicles

to completed technology have our Michigan the and design prototype recently new testing have upgrades and and center moved center the Ohio. Sharonville, in Wixom, into We also in here

in optimistic remain On for Slide segments we compete for quarter's will last growing overview our reinforce a provided opportunities delivery, aerospace markets again won't call, to details those as that X. about sensor based we the on mapping aim as we Aerospace an go and I drones. commercial market into and rapidly of of well package the business, though Moving capabilities today. to I where so

flight completion scheduled QX. miles a XX leading XX Our we testing Horsefly multiple which as nearing mile range can during last platform, final believe and is demonstrations customer market pounds and has deliver payload capability of

We continue of Department to as Arkansas. and of data projects analytics Mississippi support part in the procurement of Agriculture, both providing fly field in U.S. and monitoring,

drone working different grant We expect another are on to level also state additional month. later applications and two states announce actively in new this

customer demand, family humanitarian also logistical strong on meet automatic the manual fly can also requirements is customer in Based operations. robust we and flight new assistance for final in This of which have drone, and testing. drones to a emerging control developed

America filling here [ph] in North in are both customers We potential and about conversation with also this Europe. product in

at here extremely on difficult is Slide platform this vehicles. for to unmet electrification initiative charging to which It’s operators a are Moving a access need must them. for a & quarter. electrification and charging fleet on a XX, Stalls, services excited delivery announce Workhorse to fleets. last-mile we to provides major Stables to introducing transition and new Fleet infrastructure we’re small Today, expensive EV Ensuring in is industry. fleet the electric to that

joining infrastructure, proactive and decided need. more help lack a industry the complaining crowd this approach of than rather vocal to charging about Workhorse unmet the take with So has

& our will are the be we We part our family support a our maintenance and leased Ohio. here an use stable, us chargers, Level X other compliment first this in and the products. support have for XX that stalls As for Greater we growth This believe of platform, underway of area important Cincinnati week and own delivery across fleet. Lebanon, installing Stables location the will last-mile opportunity work Stalls of

the of Greater In Stalls, the connection area a have we with Cincinnati with route operating approval delivery in purchased FedEx. FedEx Stables began Ground and &

are owned by with We trucks. company serving internal XX engine combustion starting the route

on logo packages a shelving shapes and installed July. to just sizes WXXX, to colors last with team wrapped picture electrify and fleet. is have will In the since started the end see That has was week. Our customers it delivering which FedEx been had already all the we slide, you of and our first that

convert by We the our expect of to XXXX. XXX% to vehicles electric entire end QX fleet

us. for opportunity This exciting is an

business to key established partnerships opportunity and this in continue that have us will on We expanding enable market. this capitalize

One from field our of economically business collection efficient – deliverables in will experience the future. transition develop fleets to will key will near us be that and also more this to the EVs to allow small enable to model data be effort

the discuss to over With Bob turn that, call I’ll to results. financial now our

Thanks, Rick.

Slide Let’s XX. turn to

Our progress; financial to make continues team our results our operations. our the position to on objectives strengthen demonstrate and steady executing

initiative. allowances, of in increase Looking Stables an commercial period at the year. volume a launch primarily and increase in was at returns sales Stalls in $XXX,XXX to to were sales the due the the vehicle negative and of recorded XXXX quarter million The & the income third $X.X of of statement, net sales, compared net same last for

Cost of decrease sales period in was sales million of cost to in period. sales a due million primarily warranty offset last from of inventory consulting $X.X costs to with same decrease in in $X.X by The vehicles million decreased in was year. in write-downs a decrease associated million cost expenses. during The the and $XX.X $X.X the an and partially sold the increase decrease

to from $XX.X insurance shareholder year. settlement in same increase SG&A the $X.X in net was an million and $XX services expense, last period legal and proceeds million the which increase by million million the net of securities expenses $XX primarily increased million in professional litigation. related of to derivative and The legal $XX.X driven is

team. $X.X and Additionally, expenses compensation million equity employee was headcount, increased of related compensation in and leadership from appointments increase non-cash the of new an there labor our

increased expenses of related million an driven expenses million $X.X the and same $X.X compensation increase primarily employee period from The increased headcount. year. to was R&D in million increase $X.X due by to in last

to related there of consulting a Additionally, million WXXX the programs. expenses $X.X in was prototype increase the vehicle WXX, and development continued and Horsefly,

value to three Net XXXX. of primarily the XXXX, the in due interest income months to in compared million $XX.X as was debt year. $XX,XXX was income no September The months during last same ended compared $XX.X net during the interest in the increase to September XXXX million fair three decrease period XX, ended notes XX,

XXXX Additionally, contractual million, as XXXX ended three $X interest the XXXX. to three ended for the months XX, expense XX, debt months notes again was September on no for compared September

was $XX.X investment This the was unfavorable which was entirely in in the sale compared million fair CXXXX of which $XX.X gain last prior the by company’s in value income sold loss QX Lordstown changes the Other year, in million to same a of Corp, XXXX. in of attributable related inventory. Motors period XXXX on was offset to

by $XX.X the compared for net period in the the quarter third million $XX.X in to last last compared million settlement. $XX.X of $XX.X from was million operations the loss period loss Loss legal same same million was driven to Net year year.

balance Slide XX sheet. to our to Turning discuss

are as in following place, we XXXX approximately $XXX utilize company equivalents. cash and did though XX, cash free quarter, noting we the in September worth that our during debt last in mentioned QX. of we exchange million not also It’s QX ATMs transaction has As it

We now downward in between other to at facilities is our million and the by This in – Ohio, to driven and capital a capital timing be effective primarily million million resources. $XX expect use the our and top $X Indiana, $XX since of upgrade of quarter, adjustment last our range expenditures XXXX. to Michigan

balance I items on want out do from call two additional QX. to the sheet

a Tropos, us the we’ve to for is service offset the liability million $XX revenue. non-cash receivable. million deferred in investment a you’ll Tropos stock million proposed in insurance see reflected gets a full the booked assembly reflected $X made deposit $XX statement. a then future company settlement And legal we settlement, contribution have recorded $XX part This consideration, we million from income First, million of equity $XX have the for represented which the in in portion by and as also a

Slide XX covers our guidance.

expect to revenue revenue are guidance to generate year million for We between $XX XXXX. our reaffirming calendar $XX million

CXXXX and the we sell and chain the XXX and to number vehicles year remain XXX situation, testing assuming current manufacture With lead reducing vehicles, unchanged. supply are of times the expect we to between vehicles for

to the back Rick turn With up. turn I’ll that, wrap now call to

our Thanks Bob. Slide I QX want discuss priorities on to briefly XX.

and the budget, First, and means on drone must HALO completing all builds, this our product flight on program year. we our program and the Horsefly to This completing pilot WXX continue plans. keeping testing completing time testing execute WXXX on CXXXX the

we begin to need WX Operationally, both to wheeled vehicles. for customer production and want plans and and up new vehicles orders XXXX. revenues in ramp to production continue finalize startup the for CC manufacturing to aerial We grow drone Tropos add of

to facility We & of electrification also Stables need Stalls Ohio. the in the complete here

in our to on a execute will plans, need we transition ERP system, to new kicking our systems off us common which help immensely Finally, deployment XXXX. including late

Analyst Day hosting us. Lastly, we will December are forward and our to on join X you hope looking

reemphasize our call on important to Q&A, want the I points six turn XX. today Slide to over we Before call from

incredible built and in them talented operational supply engineers, go support of we and we business on will sales professionals, back chain that strategies. critical managers, our execute as forward First, and less staffs have a than fields. plant role one team office are an their in of Each year, experienced play leaders,

the are The company. right We the have past year. on seats in the added absolute associates XXX people over our of bus right in the foundation

renovated plants. equipping seem much struggling real manufacturing EV prizes a life. Building companies actually are staffing their true easy on We in in with many production start head fully we startup harder say, and at believe is building state-of-the-art now to and new do plan our a a advantage with be get to to big who and which complex, new

legacy resolved executing We for business on that proposed issues, us have into and milestone the securities This is entering for including regarding number our a a lawsuits. recently class action XXX% on of the focus settlement up concerns allows our plans. clears major stakeholders, to company a

and the We commercial confident other to not The the value will happen industry our to winged, will mistake, no deliver customers, transition in and both in powered ahead to it wheeled easy, overnight, market our is but remain make be is vehicles, shareholders them EV opportunities pick government nor There up to to one infrastructure transition UAVs support steam. demand segment. UAVs, a charging the for in our and and underway we EVs, and support EVs winners strong the and starting full to required market expect as emerge and of stakeholders.

our work, Workhorse. access necessary here to And lot of ready are plans. resources capital we to go-forward execute cash The line to bottom have at hard finally, run on is after the we that and a

all Thank our your update on continuing remarks. We again prepared our this forward X. look you you our December time Analyst to that for on to concludes progress That morning. Day

ready open the now for to the We’re appropriate please instructions. questions, so provide Rob, call your

question Thank proceed And Company. with question. Instructions] line Osborne [Operator from of you. Please our Thank the is you. first with Jeff Cowen your &

prepared Had Yes, that think, contribution the Stalls a for on shipped? our on I in couple it is first higher XX revenue was Stables quarter like looked least wondering, pricing units I was you this this revenue a my the the that good than what there remarks the you all model some morning. anticipated, of model at was and initiative, & bit in end. questions mentioned there?

revenue Bob. for Jeff. revenue of Yes, This Right that includes now, Stalls the Stables revenue just is the quarter. the XX% at about I put the and route & would

Got it.

But – not I’ll And right into evolution, pricing. EV of this going elasticity in price of we’re the to specific this now. early in inns the there’s just Jeff, some price, we’re still say regards go vehicle parts market to early

the anticipate of reserved be paid potentially and come would on the XX-Q, of the piece cash you trying there’ll just as in? top that million understand insurance cash payment cash timing and When then, would and but be is that sure more liability. you then And there? XX the what XXX settlement, potentially the to an that? sense. ramifications are throw I’m Got when to in a I’m you what liability rate it. That details burn and million makes the with the the

it So will of million components, if the you which be insurance. XX by into down two funded cash, there’s break

no there. then pocket So, stocks. million And of of net out XX the cash

our doesn’t settlement retention us spend X.X than side, legal the other – impact the on a and really net million. So, did cash on are we we was which beyond the have above

cash really will by wise, a the time the be to I’m impact. the it’ll yet it So while that’s next Timing QX goes little still year, guessing. net process still of probably

you understand Got if remediation helpful. ramifications hypothetically their in be? And would with of financial it. previously that to C-XXXX P&L move people with for had That’s past? of one just the that that the to of expectations what issue delivered problems the you in to the is the last is, were there not that, there likely potentially risk reputational had and just any you had and the suspension I’m trying and forward vehicle,

do think back there’s vehicles already the we delivered. that I from our risk financial customers. bought had not We any

are first – WXCC orders WXXX discussions vehicles through of had in had have about primarily forward. we’ll new the half We and of then the some And with going XXXX out the those come portfolio placed available WXX customers our XXXX. who done, before that’ll

for our in course product introduced second at several initial customers our for demos past have of plans new of first before back who off one And the and we’ve the work I next now gone again team up WXX to us written we’re and having say two written the that had had five new year. and for quarter would open response, basically just doors the least us customers off specifically have those in asked we’ll who and

a Jeff. I good So sign think, that’s for us,

Look Sounds the like on you you forward to seventh. folks it. Thank seeing much. so

Great.

Jeff. Thanks,

your is of question with Chris next from questions. Our the B. Souther with line Please Riley. proceed

Hey, here. my question guys. taking Thanks for

the fourth like a to WX now forward. revenue, bulk expecting probably if quarter. you like Seems So inventory the looking clears move is do in XXXX the at we’re and for C-XXXX that story uptake decide

sense besides contribution Turbos small – get from route. to WX anything I and a there’s a ahead. And the FedEx mix just wanted maybe else whether of just that and So then, in go

That’s about right.

WXCC we’ve already, vehicles. basically built we’ve I said, production, already like which So

be bunch coming supplier have from We of a that here. our arriving should

will have is FedEx later already stable. route arrive month, another now have coming some batch Some we this in The then more arrived, December.

of incredible to the I took they we the while when the us them opportunities that be those miles of would of and vehicles out there’s current years control. they’re had, safer last number there of future. have replace that If for a plenty it on. kind the in the under think purchased, it reflective the much first to contracted condition we to pretty better many vehicles I say looked are mile customers, of us get deliveries maintenance going they across at number and vehicles with was

quarter to we I’d crawl to So in so. pretty like but the full first the third quarter. in in say a little fourth the started quarter, we [ph] walling year here should bit be We’ll start next hard running

it. Got

Okay. that be just vehicle Day, for often stage. visibility something an book. in conversion want think just going at is to the said in they’re of different but And to people that that from Keep making models order see I maybe this before, around anything mind and you point at Can the this Analyst this what share is? kind you’ve past the orders then

Yes, good question.

lots build comment is have ready go, a people that. look let’s on to go thing the people plant sell, right, our and and a industry, always order today. of the team them going of one over lots to not do if order and right we’ll We’re back on, factory products get get right? to out So get promises build to and book an the bus, the books. about I the different But has a them book hire as, an is right? made order thing, having I So been focus the team, see

hands the at vehicles for days. the go Analyst have of we’ll more WXXX cover last in now we first to in second there. have demo the the those pilot able for be will those builds customers. had quarter, we’ll very vehicles We in we put have in from early We’ll Day a now who judicious the the vehicles the detail so. can little the think, WXCCs, do We’ve already of and bit them I XX and We’ll obviously give between WXX And – and hands have the quarter. we’re to, going here demos WXX in the to we quarters. some fourth of in the be right, about

just What installation, the of owning like reselling business guys Okay, in what – space? FedEx the Jeff’s EPC work type here? the great. of is customers off for infrastructure, test level? Is plan that route purchasing kind route, like, vehicles, it And doing level then hardware, around the kind selling to it just the charging what is program, to the go at through plan of just higher walk of pain of able question higher points kind is strategy there, is being you a kind

to time it’s the over than talent field maintaining incredible what miles having the somewhere for get step market them and all old having and shelving actually has who goes, back we’re where bringing have to we’ve the packages with left or the them. years on the the a their the team vehicles better Also, out facility, to works. the our and that many deliver how the WXX. where of days. vehicles some XXX,XXX in anywhere behind the fight learned get with Cup to computers XX five licensed get out future the And truck, to in the from of how doing the vehicles that driver their XX Whether used how vehicles and goes, our loading iPad for redesign no leave side first times drive have offices own sent in to be the without or Holder seeing wheel side, and There’s unloading the – great driver are the these of out. who All it’s that engineers and WXX research vehicles either to and day over the that’s the in drive dispatch information the or you vehicles back, day the right

I Okay. queue. Makes sense. guys. in Thanks, hop the will

Thanks. Great Chris. questions,

comes Lewis question from Greg with questions. Please with of next BTIG. line your Our the proceed

& here. & is thank interested you, touch that. doing the you I then What like Stables And would questions on from is Stalls doing of like around doesn’t the something the it have stables, it initiative. Obviously, to similar? something customers I been the morning, seems good and guess, other hi, exclusive Workhorse broader Yes, has FedEx two was little in everybody. potential want a and more the did would to be, seem question produced I it but other Stables not Stalls more a vehicles? network appetite

Olson vehicles, right there’s GM. some there’s That’s Nissan smorgasbord, right? some a absolutely Ford, correct. ship some There’s there’s vehicles, The now powered Morgan ice there’s number some vehicles, of vehicles we are have is that some

we’re so a And Workhorse. not be XXX% to going

to on miles from vehicles our the take to XXX going The day. two competitor or as one an well. routes day miles range a a We’re and to them opportunity of XX buy put route

Stables than an miles we trucks other few of A XXX validates are that come their think a expensive can out the rather which go in and less to thought. & about. So companies at pretty opportunity systems, XXX. XXX, what travel have or than own putting day. other charge owners Most Stalls to and charging them There fleets a is we

charging buy, you’ve install got link the to the grid. systems, to to you’ve got got You’ve to install,

to have charge place night long got all a You’ve fundings. to and monitor those

$X the much on a of that, prices shoestring For budget, a they’re country, pretty some up really place with an especially operating gallon. independent a operator do $X diesel or

taking month trucks, the information, So our over the charge, run fire trucks, I of this in take had transmission We’ve all leaks; spent just time in over right? so one week we’ve cost And condition we hydrant. fuel the little or are one $X,XXX XX maintenance. it’ll think running we a the someone had fuel, the of

vehicles, And so right? to a it, that’s if move so, vehicles, doing change our us DHL, in we walk so economically help up damaged. the and operator is vehicles, we all going to tires, life can that others And get operations, around you UPS, just And the can vehicles. help help FedEx, EVs, at that we repair in away the figure to Amazon, look right? things You daily this more can make real that are fleet city, banged wash service sell of watch damaged, when

the in step Just truck.

at X-Eleven in Next look the at downtown store, a time of or trucks. a you’re condition the

amazed. You’d be

I manufacturing, that. the, Yes. here. question launch pretty getting to And see the around exciting then another Tropos to had Thank for you ready contract

think I soon one as then like as then dual opportunity, that’s then can that to another think should and one and a we’re seems road as hey let’s, that could up you is bring the we opposed a have As contract one. on, to a be then it in and then of successful, and first opportunity, we brought contract them going is bring and a dual being one see in guess, we then, kind it we as and our running it or ahead, contract manufacturer, – larger okay, about about manufacturers timing

much going floor we’re so we say, the ranch. at to, space I’d have up

XXX,XXX under feet just different in right buildings. two now We’re square

and We we have of land. separate storage building battery plenty a have

with the best So, judiciously we use the what’s floor space. and team of are our looking very at finance

room there. our now those manufacturing. to own got going We already to build do trucks. contract We’ve have obviously We’re layouts

RFPs contract. two We others. have We’ve one entertained for

go out it, to struggling earlier, out are tight bring a that and are the who job some on PowerPoint EV companies infrastructure, equipment, build a there with, there install land, new that the utilities it’s said I in hire proposal different people and a plant in much with the acquire go staff very all actually put as And market.

already that ability production one that the us. get have else We sooner, capital into save would in about came a Tropos of reasons somebody them workforce and which to much is

on build to for minimally here connectors America. lead that time brand months could chain North factory lease new one others. a was a lead available, in six months if lease find and especially to of them It’s XX go time they The XX three issues, based build months probably or months supply critical electrical to was factory, now to

I just or squeeze those investment And facilities, investment really, clearly providing the now, for actually made should Okay. some it, set, in at lay see i.e. more in Is of you an the participating what given Tropos. interested I kind we’re in you’re are services, company, you contract we we inside companies? out think, Rick, opportunity making not just that so manufacturers, can upside of be you’re in, just these one then of the least at just the could the

all we is that school think I in cash learned king. Yes,

a a them them, at or we’ll stake to look opportunities ground with to, of and into ability operations. just in So, stake the manufacturers. them, and into cash whether cash stake an manufacturing on contract take sure the and opportunity business floor future, small other partner to we’re equity contract in going make was going we’re or and put we fund our equity be unique the to get get a any conserve had Tropos take a our own a

Okay. Great to much. you Thank hear. very

Great.

Shlisky D.A. of next The question with your with is Please proceed line the questions. Davidson. Instructions] Mike [Operator from

& that Hello, quarter. wanted full good a the my for if question. on taking Stables about I was morning, the once quarter. XX% in questions follow sure and I’m revenues know it I of was third the earlier up Stalls thanks program. to not

get year up how is the July, deliveries quarter percent and is it to for still was full to $XX started a said million separate segment? Will how that it be the it the sense You quarter. very $XX model holiday business kind fourth much your a to year? part the full the de for million given next be Or it guidance in does here? in in a of revenues the the, route is a that revenue But much of maybe going go and that minimis give of on overall

Hi, is Mike, this Bob.

truck there, learning paid process sales, and we doing you and de about compared generally be the of up of terms It’s, said, but quarter, in fourth quarter, it. it in a so still in the could Packages it’ll will think, get the be fourth have minimis. quarter be I the are you quarter, what to some in much pretty and as the most there. opportunities there we’re

part. very not So it’s important it’s our of but huge a goal, a revenue part

quarter Okay. quarter see balance just I at at What and end. similarly, assets? Was don’t it I And the the see that on then route these end. the in kind is your Tropos of sheet your trucks investment is investment in minimis, de also category other on

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private And at was a like an sale? auction purchased it or the route were office. Those often was itself auction

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great That’s a question.

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of is that in or we’ve of areas boxes back whether One of the the there’s cetera. some that’s discovered et things dry a of the end reefers, truck, lack capacity flatbeds vans, or

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Okay.

appreciate That’s it. along. pass I Okay. it I’ll color. Great great.

Mike. question, Good

the Our from line Company. question is your next questions. and Please of with Jeff Osborne proceed Cowen with

back? you’re Jeff,

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infrastructure that’s systems, all top that for have and to works. slow that, whether or the in put the charging you chargers On chargers fast of

customers. this how do then this to our our study So target to and sales best vehicles is and our one of ways to specific

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conference. Thank and today’s you. gentlemen, participation. this your for conclude you Thank Ladies will

You your day. you. time, this line have a may and Thank disconnect wonderful at