GreenPower Motor (GP) 12 Feb 212021 Q3 Earnings call transcript

Good day, and welcome to the GreenPower Motor Company Third Quarter Earnings Conference Call. All participants will be in a listen-only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Michael Sieffert, Chief Financial Officer. sir. ahead go Please

for is Officer, Company. the Shetterly. Sales everyone I'd discuss Brendan with our financial call This XXXX. and December of here Riley; Atkinson I'm to Financial Marketing, and GreenPower and to today results quarter third Motor like Chief GreenPower's of period Michael you. Ryne ended Chief XX, Executive Sieffert, our Officer our the Fraser Thank VP to President, welcome our

comments statements as result purposes or important Reform Laws. discussed our EDGAR. and including under make about on Safe today's various Actual our in a those constitute plans may During Securities Act may call, provision expectations, factors, on and Securities filed statements prospects, interim our applicable and from MD&A results in forward-looking future forward-looking we Litigation Harbor XXXX Private results those SEDAR the and statements of may quarterly of which materially for of the Canadian these differ indicated by the

Atkinson. and now filed Fraser GreenPower SEDAR of www.greenpowermotor.com. I measures. In during date at measures the forward-looking to a made. future on call course on on intention cause of GreenPower obligation pass of EDGAR, can addition, any our company's events revise subsequent today's or or our views events which the over refer to is as Also, developments the to and these disclaims the relate anticipate located that non-IFRS Reconciliation otherwise. are to We or they MD&A site found statements, call, non-IFRS change. financial and information, forward-looking whether update any statements we these will CEO, certain result web may be may which in new on

Thank you, Michael.

incredibly $XX representing more At a buses, million potential approximately to electric entered production representing $X to quarterly buses B.E.A.S.T. circumstances GreenPower, the than fall, been for potential well EV full effort I'd significant revenue opportunity of start, difficult pipeline on over school the chassis XX tirelessly have of tremendous. us we can worked quarters and reach recovery revenue that response where we at bus we milestones that of forward. the and our XX to the who quarterly million our Before annum million time, signs passenger on and production in takes Their we Stars the $XXX taking on has are the a heartfelt In with in of $X potential all of put team we under take and operational per potential per and extend last to of of for incredibly revenue environment growth a three to next increase school revenue D including school now buses per we a doubled basis, see as million. all as normalize. aggressive electric our like over a entire positioned and thanks we we to purpose Stars, begins In cab into to increase production five This month. production company are growing EV month, our to to this school January, us built spring, advantage Based basis.

with our parallel levels. we our these to from While work in chain further accelerate production supply

first revenue. the deliveries of recognition will customers and summer buses Stars EV these to of be this this of school these first with B.E.A.S.T. available The spring. And the

quarters. of efforts You our over will in statements see the the results coming these financial

of IPO September fiscal quarter for XX, XXXX, listing $XX the we up second ended gross million. Market the complete of over proceeds Capital NASDAQ our our company on and During shares

cleaned I'll up proceeds costs. this all the quarter, convertible as from loans shareholders CFO. time, from the of This of sheet shares interest balance almost improving as company, were fiscal third debentures were At our balances GreenPower has of our further pass into eliminated repaid Sieffert, the back During equity well Michael call the exercise our converted and warrants. to

Thank you, Fraser.

XX sales EV lease existing the as financing, from ended leases. ABC as Company $X.X New at EV XX, from X.X%, the three million leases, State or Plus the for gross XXXX. recorded December this of accounted sale month profit gross first achieved our finance and City of the target over bus Cargo revenues revenues XX.X%. was cost was of the finance generated vehicles due revenue GreenPower the the of Start to of EV margin that and EV were commission our and our and for where For Plus operating Stars provided in generating on of quarter vehicles York SG&A. well as was of One quarter in and an We profit period Star Revenue higher Star to Vancouver. these one the dealer $XXX,XXX for sale which a which three accounted than to

For XXXX. $X.X From sale which of Stars all electric a to Star from the of EV STAR one Star bus from as and million and financing, create school was sales. bus eight sale the One the when inventory XX Cargo EV sale revenue nine lease GreenPower all-electric of bus of and towards operating Plus million profit of three Plus chassis, approximately million, revenues. bus cab leases. a charging from one revenues We the EV stations. EVXXX the of of and and finished of generating were $X.X accounted to customer to generated of ended as with to as over of finance school financing of month and for EV XX, parts ABC recorded EV $X.X gross million $X.X Revenue goods Star the well the provided EV Stars, existing comprised spare period transit quarter one approximately Vancouver, City finished revenues company XX.X% December cost or a leases. one

working various models parts inventory of Stars as XX included well EVXXXs buses as as was which five and million, D inventory. $X.X EV well school process As XX

Star cash Fraser has mentioned, and rate platform and our in on increase line month, per been by from proceeds with we per approximately in an to production buses. investment ramp buses D month. ample currently of $XX our of a $XX.X XX As school these over of up with million path, rate EV XX on our working at ended credit. up This million at quarter inventory continued funded the continue products including undrawn we our And producing liquidity school EV NASDAQ a across Stars to significantly a capital in and listing. We're focus this

of in going warrants exercise, significant $X.X over number XX, quarter, more We ended totaling repay XXXX. December the used loans expense cash the for nine million were for interest over during forward. continue a our high million third exercises which to $X.X interest significantly to months will reduce see Proceeds our

and build now debentures to outstanding will pass costs interest the $X.X our remaining convertible increased Ryne and continue resources We $XX,XXX leverage cash time. GreenPower, converted to infrastructure and Sales a general the other our during our out the in And increase less activity. call I'll bearing to higher grow expenses we expect Shetterly anticipate President continue Marketing and these at to over all to quarter levels. quarter, that very continue remains addition, equity. In expense staffing while to per costs to of sales levels, administrative will the approximately ended due our be increases increased Cash cash during business. and with expenses, million than were as quarter interest into of over selling with we to the discuss debt Vice little recent quarter

Thank you, Mike.

Our sales at a brisk backdrop. efforts pandemic considerably has the result pace and strengthened a our despite as continue pipeline

we team, this to our quarter and we cover with We new the continue Midwest as regions. expect accelerate this did much to trend both as Southeast expanding sales hires

assets We now have coming front schedule get place can demonstration and prospective to in strong leverage additional GreenPower the for units in we months of buyers. set a have

EV New period, Star the XXXX. company necessary Star steps EV good being an to cargo the as and EV continue the York inclusion added VIP we of the aggressive for the ramp Star, During deeper we is move position program. CC, to example models to into recent A take Plus the

Star also We as demonstration at a see and ABC EV prospective these through massive York. in EV be market York coming team. delivered forward over going ABC opportunity two our New units addition, for New to the distribution available the our bus first partners In Star quarters sales and we will Plus the customers

American pre-award Grant we in compliant order letter our Additionally received application. successful by first first and learner a Washington for Transit from

a result. to As stated over including of we we will available State all seek footprint means see programs of the to sales leverage we outside California. think continue quarters, as funding previous EV considerably GreenPower expand And I numerous will have

the Our is taken positioned the stance B.E.A.S.T. aggressive new all-electric has school school benefit XXXX. XXX,XXX on electrification bus of the to administration buses ideally from by of

support top, at that anticipate school with volumes accelerate sense real the our normalize. the the in both level in up on have tremendous GreenPower and of within mover EV proven advantage on we of high in into ramping Fraser and aggressively excitement level our from XXXX As based we funding recent sales very school is bus. and further road The significant Federal an of expected built the ramp units additional put that to gives opportunities urgency demonstrations. near segment. that from are the we beyond to grant early fact a we mentioned There's getting future, a The level and this feedback be purpose bus And expectations open production us school XXXX systems the State to are unprecedented can with and begin pipeline.

a Star be which Perrone second in nationwide tour, producing are be Transit of we a used in with spearheading Finally, will the AV months. Robotics next partnership and couple First in demonstration I autonomous to fully

the Transit, First Motor would GreenPower President Brendan to At call of I me. point, pass Company. over to excuse like Riley, this

one thank pleasure it's Thank everyone today. you you Today presenting days most significant And on really in you, the GreenPower’s And history. line undoubtedly to to the who's today. is be a of Ryne.

company, recurring EV Berkshire effective to into announced our their going GreenPower exponentially shuttle cab Star moments chain. ago, agreement and with supply them just expand Forest Hathaway agreement in reach with chassis This allows we're the to supplying As market be with Forest we the a business. RV within River major River, with own

and to designing is that focus touch point building plays We on our one EV. and which strength, and to delivering have

be XXX,XXX delivered is River vehicle, units building this onto their which through manufacturer to-date. agreement is body GreenPower these most RV the respected, Quite overstated. putting Forest and sales, simply, service, parts, cannot supporting of for distributing River They've space. vehicles network of strength. their and over Forest significance volume their and in them high our proven The we'll shuttle their be

of while trailers which and approximately business variety different chassis, encompassing to the GreenPower’s suited given There cab multiyear as and utilize position River initial Forest expand well XX vehicles types, agreement. tremendous depth, breath potentially space. agreement has many all-electric to a unit Forest River’s many is that XXX of and is leader a lines, the wide of and are a in potential beyond opportunity

are note begin next important accelerate also to two it's that think I the deliveries and months expected thereafter. to within

at Star Forest or EV working partners goal River. that more to seek Our the what with leverage exactly of that out Green be best be value to agreement. accomplished We is GreenPower platform. with can cannot this And we've is excited the

the While lines. this made across variety to overshadow want don't I news, a product we've progress GreenPower is of monumental great

electric for the significant has to the Star company buses the best to beyond. school team, our and in Our our worked business growth, EV from tirelessly Cargo position

We in our Star value potential said to leverage there's EV purpose our great built long have platform.

Chuck validates you all. Q&A. I that, think news over statement. for like this turn to today's that to With call Thank operator, the I'd further

first the Chris Please with come And will question ahead. B. Riley. Souther from go

electrification with [Indiscernible] well guys discussions particularly think announcement. and as context background congratulations these what on guys I and provide suited as far market guess on bit the why held RV here? you how for a and is these Hi the testing on long more process you was Could the were

Yes.

investigate last Forest for of River and Brendan. So to to properly. earlier actually is started than our Ryan Thank really behind some summer. them you out as vehicles We question. I actually for them brought Chris left cab this that chassis and talking to one

or a RVs the RV four people for this trips say I believe will the ongoing that maybe you our has that started not up an RV River would RV market miles. but develop. line their style product took only of a vehicles approximately the and is trips in do bus a line space. way see shuttle our months charge The country excited so and space, really fully But them. are just been and good candidate them to leader ago it we're local Chris. updates in niche you a it months really line. relationship charger our and we in and interested So for ahead that get in burgeoning relationship. are the They more go with would XXX the and EV travel We bus traveling we and the Please we people that months would and this maybe don't stay across for customer shuttle be Thank stop at tuned along about are see where doing target more Forest leader further is for moving as for

It hear. sense. makes It's great to

that release electric go am exclusive about for be a you you on the the type RV talk there? other about after kind end of the it missing where Is mentioned would you of provider could other or guys can exclusivity So them? that wouldn't manufacturers the solutions is sole I in bit

It's products. the exclusive for both ways address

That's million shifting quarter it. great next you which like Got June that kind ramp it the a both year doing about up have you XXX would vehicles. of million annual you we'll the to that Is What and think certain you're that run how for you're think number that at in of of about about you'd we in need XX talking rate. for of the sounds customers where talking it or then be the had rate gears a mentioned around should you leg deliveries exiting the mentioned and need What be would is something and that leg? visibility production discussions you're that? from looking standpoint this talking that next advanced about raising you maybe

pick there. it and may members from Well then the thread team I'll of off great. that's a the other start up

on so really terms the million see up all at at or move time and of available DNA but quarter. significant other revenue great the is with is so ourselves which are of once another is on we in six and plan orders we now that a that on that So fulfill the measured where we'll this in if to cabin get that another a we on basis stepping point forward to leg be that will the with is of delivered the on, of that And rate in to the and of pressed Forest requirements and the be chassis to deals a have couple a this again just the the near will byproduct on hand next you inventory have we of and level where deal been deliver of River level remind the a has XX next with deals in up are ahead quarters when potential example then so pipeline, on and approach to our be in activity the forth really we're one you forward. see you not you potential hand high number always to as referred ensuing level run to so our is working we're what move we the

today So to year do working wouldn't position have a a through without to have past that. two be an and half been been plan in production over as increased years able we we the

Greg Our Lewis will BTIG. next with ahead. from go question come Please

numbers models you minibus the side up on really interested everybody. interested like six little in of guess, Thank should in think River Forest exclusivity kind and nine website, in as the we Is I go the the of understand divisions. Forest is build not afternoon there specific bus now those RV about opportunities of us just that bit color I partnership. up? potential bit customer to to like any about number you we years that focused it with on acceptance? right I'm any XXX the XXX have of this is try is the little around way, to of share there If to wanted color good understand as the I before more even kind River any is trying that that more how follow Just maybe mean mentioned I a you're curious they through looks we like three I'm on that brand that, terms side. shuttle a are able to kind there's for to

Marketing. Vice Ryne and is Sales Shetterly, Yes. This President of

here in so cutaway So bus market Canada year. about a America the the is units U.S. XX,XXX North total and

buses between delivers bus Forest cutaway and bus craft creative market somewhere sales builds sales their star creative and Rivers is River and Forest dealer per X,XXX and share. year X,XXX X,XXX delivers

So a forward. strategy moving there is

meeting worked off of after the cabin accounts EV the first meeting. Forest take has way them We to those units are essentially so first Integration off based going the with gotten its have this as mentioned do chassis accounts. of not lot quickly it River seeing to market they building it our the opted immediately. already they're has yet, star and that distributing question to based units going yes out Brendan legs shortly very be take five first and article begin have and to down going here we expect country but the six Those a to of into key key then out relatively expect the River's off off we'll start be developing line to a Forest next your across guidance. answer we is the and forecasts Based literally to

those doesn't want we XX guess margin just really to the It a the Star. the mean for I other average that different you but was selling couple helpful. luck. guess good get it larger to I question of gross like really a there's we and the school sound super I talk there. was mean I like like ways around but whether for margin My profit vehicles around was That it I Thank bus in higher ask had price sounded it it's getting EV variants about

looks So average drove looking revenue? just I'm it kind what what of of kind mix price on at based the that curious selling higher? kind like of what drove

I is for take this Hi this you. Michael Greg, Sieffert. can

had is actually primary was the commission hundred for was accounted of in It of SG&A. closer cost what much is is sold have driver units in included over those are a gross low selling margin the used was that that to range if that in sales a related really which which dollars to and XX% we to thousand would so was people So there profit that seeing.

I mix. this sales to is think real accounting So of really opposed question any more an in change as

higher However, and sales we and we've say expect units is this be of typically the were larger sorry margins those to one I for but sales a as volume quarter our smaller number number smaller the margins it lower result profit slightly because was this think on to three consistently thing highlight said that definitely within of that were all range. do in of

that. really for helpful Thanks. in wanted I up ratcheting to because it just you're squeeze effort seems one like And Super another here. then the sales

limitations mentioned potential the as focus out U.S. like we're we GreenPower efforts about in hiring to about to need as their I like about obviously targeting to across go trying of programs broadening a any we're where should each you to to of think kind you kind its I in strategy different at incentives America as market addressed? kind constraints issues California you're be North versus think for buses but of its think the if just I way You and how or sales that has incentive your as looking to wants regions. want or I'm targeting way of Is are there understand be kind across or that about to the track where match think trying realizing own state

our resources customers XX educated with giving really sales not our coverage represents sure exactly this that creative contracts dealers terms grant ABC of administrator mechanisms and that the pair significant paperwork out three U.S. helping that of funding we are and Yes right but the available we've grants actually also So you're has across locations fact that sending because constantly throughout full-time in bus reps, the out states our is well Ryne. are general and make only that efforts which who country. is is managers to the fill and shelves upped has

to these a those well for is they as responsibility and understand it's community customers salespeople's sure grants requirement and leverage more like or a that. surgically Our be sorts programs would some start of that to disadvantaged make targeting able whether

So available sales and they is can't but we their a top somewhere over to fully that throughout there's can is the know all question make and everything representing all your GreenPower have country which We that where within region. aware everywhere answer that we somebody yes. a on are sure grant the hundred of of individuals have they have the that's force

All right. Thanks. guys. Super helpful. Have a good night

[Operator Sullivan come go with Group. Our from question Instructions] Maxim ahead. Tate Please next will

fall Hi to Ryne too mentioned a in thank more thanks market. couple on is you mentioned just new programs the the just you the school earlier electric these that get market New some York you? you detail and remarks. you bus vouchers Can Star for there on detail start for River

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we went sure from we expected the program through at home more we did. after. make good to we their working but as had we a with time little we result had everybody bit We did evaluation. were NYSERDA we took So met as got We than prerequisites. the ultimately that could that and all It those

electric Great. specifically? is mentioned grant are Thanks federal referring may it foundation charitable school you grant additional I When say money Eventually for that you grant buses. and relating to relates money are or money that come what you through? you mean

Those the My irregardless the qualify in little put first are of who's on did vehicle a manufacturer mechanisms not prerequisites. entities generally forward eligible. it buying has amounts them by bit process that come criteria to state basis The you're funding apologies. the and they're for go through whether did private. whether come but all order that a different public successfully that serve determine for GreenPower funding or are meet first we a to or complete

you. for are Thank Thank all. follow-ups the me. last you Those

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you. Thank

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Thank you.

question-and-answer our Please session. to for back concludes any to sir. over like conference closing remarks. go This ahead I the turn Fraser Atkinson would

EV comments autonomous tour there this terms in of partners but that the a alone. we're the this opportunity it's year has is is is participating country. thing and in Ryne's off fully first year for EV be would as and you of the Brendan kind largest of today call really on on cut Star he the on and going add our One one will Star everyone about excited of Well Forest I one forward spearheading course to in even like providers transit that seeing of River thank got outlined I demonstration that think over the solution the expand transit

will this to tour of have So aspects it. a number

fully of being a country. to as well the X autonomous terms as that with in market showcasing off across a vehicle class really First vehicle solutions leader first transit

contact looking have So to that when lot over activity discussed We're or months of us. gets quarter terms over you that of on of business information time a the as next a of website in overall this very summer couple hitting two feedback of easily we forward if in of but feel any accessible out to terms our moving reach and are Ryan questions in the any have and spring free of accounts tour and for going and very or exciting we through in year. other our lot excited a do next the

are we looking really at an distinguishing EV as So manufacturer. ourselves

our that with and to call So earnings everyone in. listening that thanks concludes for QX

now conference today's Thank has presentation. you for attending The concluded.

may disconnect. You now