Electrovaya (ELVA) 21 Dec 212021 Q4 Earnings call transcript

Hello and welcome to the Electrovaya’s Fourth Quarter and Year-End 2021 Financial Results Analysts Conference Call. At this time all participants are in a listen-only mode. a question-and-answer session will follow the formal presentation.

As a reminder this conference is being recorded. It is now my pleasure to turn the call over to Richard Halka, Executive Vice President and CFO for Electrovaya. sir. ahead, go Please

and Halka, three highlights, is much, us business XXXX. morning of September to on fiscal Today's December QX very for Das President Dr. you the On Gupta, XX-month discuss and Executive for and call results. financial joining today's XXXX financial and hosted period Kevin. you by XX, its Electrovaya everyone Sankar CEO Good thank Electrovaya's being Thank conference XXXX, release Electrovaya concerning Vice CFO. and ended XX, issued myself, Richard a press results call

a If you would you of like our copy on access website. can it release, the

the If statements, form SEDAR management www.sedar.com. you annual financial can information our or and to want discussion AIF and on access website view at analysis, you documents those

previous comments provisions subject to calls, forward-looking with are our normal information. today to related As

our will growth, potential views current regarding relating trends our and target and information competitive our We our size for including in markets. provide their to markets, in position

reflected we materially from such and in differ that may Although, believe and results expressed actual in the or involve such risks such statements implied those are uncertainties reasonable, statements forward-looking statements. expectations

this could Das about materially in expectations assumptions to to results, call and under the dollars announcing documents release discussion Regulatory Also analysis about all annual And fourth to results Authorities. turn Additional uncertainties, noted. discussed the that Sankar? risks factors XXXX well and Securities like call from be Dr. Canadian or over forward-looking I'd most cause U.S. quarter disclosure filed management's apply please with and the and material are differ as Sankar factors statements making the otherwise public and press on company's our Gupta. in unless now information and as note other numbers to recent may that in actual found the AIF fiscal

and OEM year strategic about and is the the U.S. triggered wide emerging. hardware make is is team. gap progress. exclusivity. a more Starting be our sales highlight and annual of to you group much The centers morning start Electrovaya’s where The revenues. sales we expecting million generated revenue this or is of teams. from to OEM XX an Richard maintain XX websites, January, OEM retailers, over and training we provision their be corporate maintain chip the and will amongst supply to both to better. team new our new believe groceries, sales the distribution expanding everyone. In space sales, or and teams two also stores, OEM learning and We purchases building a and shortage time of took manufacturers, Xst double they auto market U.S. believe including between the team OEM eat, users And a always direct coming XX.X than agreement has Canadian considering industry about Furthermore, revenue batteries sales our good diverse our earlier there new million million. to XX exclusivity and able with reach from like dollars Canadian had million morning XXXX distribution that others some million Thank we logistics, has anticipated in the OEM impacted excellent which and resources the exclusivity corporate The over revenues must initiatives Ultimately I'd U.S. and are do sales. will which was of to marketing our are and component the higher COVID more XX.X

base We financing. had allows shelf was applied for XXX year this U.S. item flexible million significant second of financing. a Our on which

later. safety highlights believe industry will longevity. Richard and our with a leading principal capital our is battery extended has explain exceptional competition working our two notes. financial important promissory advantage the truly and we have more Technically our over most Electrovaya line We of

line. Our changers battery, success. are holistic named safety OEMs safety is technological of battery for battery fundamental our mobility and but cycle this longevity who life current have recent in due line and of game users several Battery and electric Battery vehicle costing The to cost in they batteries are important future basis. as Safety line we have the lowest and from our Infinity the to commercial key meets believe product also Unsaved not industry a needs on critical the the expensive all differentiator product recalls leading major us. dollars. safest differentiators We to as This incidents is Infinity years our battery demand recall. only are billions

Our fiscal and our call infinity and to over these electric Richard fourth both quarter Richard. requirements. line materials the to We the now in mobility results trucks buses, performance the applications review safety longevity commercial XXXX as electric electric needs will handling Electrovaya greater battery. such fulfills I turn believe and detail. electric vehicles, of

OEM Sankar order This shortages Management is teams. reduced cycle from transition continued supply as as for volume the believes XXXX. Thank agreement disruption compared supply to you new discussed. QX as for $X.X was million to year $X.X in for these was decline was well XXXX. Sankar. to for compared and has brought $X.X to a a agreement million million component the for fiscal XX.X corporate relatively year long year-over-year But XXXX XXXX. has XX.X It the million QX to fiscal due The sales fiscal Revenue Sankar There quarter Revenue primarily our the for it XXXX as strongest year. customers. was sales year was million QX compared of mentioned. increased significantly chain, resulting

quarterly our from the our We're by improved strong has encouraged the indications XXXX. situation increase. into are customers growth volumes and We sequential receiving will that order major strong believe moving

for with XXXX year margin XXXX. fiscal gross was XX%, consistent was year Our which fiscal

XX% XX%. of the margin in range is to to objective Our maintain gross

significantly material foreign stabilized exchange including cost costs, margin cost mix, customer components, battery a movement. Our with of pricing, current of the of the shipping enclosures. an steel, increase the In been price of number year has there's which which recently most factors varies special impacts fiscal costs, the some the in product

was due adjustments in by million, XXXX. X equity of the the over of us a to million X fiscal in an XXXX. at same XXXX. decrease reduction deficiency fiscal Current were X.X pricing a XX year million over energy allowed liabilities to for as million, X XX.X in fiscal million, million financial this September This The year maintain increase increase negative level. the margins of offset was fiscal improved year-end were the our density. of assets However, company's year position XXXX XXth, current The

base has normal shelf $XXX is the December by and mentioned also filing Sankar valid prospectus. total the shelf to shelf to tracking million prospectus. supplements XXXX, as As permits base thereby a XX-month offering a period, up debt to fast of filed prospectus the in of and for company for a securities The opposed

XX, year our facility on July XX, were December X extended notes working has XXXX provided extended falling strong to received to extended company from X, XXXX. fiscal anticipated The was major a [ph]. for indicators which the capital revenue also The promissory our was December by We're XXXX due our we've and encouraged for year customers. of note XX million. promissory The We working million million XXXX. capital X facility

December XXXX be -- season into past sequential as fiscal from the on and years, from we QX QX in customers expect and XXXX our the As will a after late drop November major fiscal push of busy to that Year. deliveries fiscal year New wish their

I year. to However, strong through after turn now Sankar traction call to up. that expect we our the the would wrap a sales like to in back

next I done at research work on Electrovaya our on touch -- Thank you, little labs. Richard. being bit will next generation our

good power. handling customer is there without As safety lithium material And lowest the powered line our commercial making vehicles. demands is are vehicles, mentioned position focused energy our who and to earlier, And for infinity we we finding compromising the are leadership costs battery and base holistic that moving emerging in ion on progress legislation a highest both demand and Again, diverse are important electric two this performance buses market emerge and in most in transportation for parameters and our various in large batteries we is this becoming will there USA longevity and commercial be will we Canada. the the once and safety believe space. believe financing growing place electric now trucks, and

is consumer cars, the sticker demand however, for the electric lowest For price.

Electrovaya technologies developing major is in space. So disruptive two this ion battery lithium

is cycles. lowest capacity XX This cells fades initial cost our progress some disruptive sector. The coin and conceptually Electrovaya cell in Electrovaya deep state results, technology understands approach. and deep work the charge making batteries battery in solid division. battery first filing experimental had and the discharge nearly announced this done the state where demonstrating is our state at labs after many no The energy solid patents through highest We experimental we has good possibly showed solid density of battery.

The is in That superior the with Canada remarks On would boundary this processes technology potential electrode hold has the carefully that our quantities developed cell pleased what made United uses ion solvents, expensive, cell and markets second listing session. the before novel the toxic making is massive commercialize a The of causing process, States, added operate, lithium advisors, are is conventional The we steps to decision Directors is possibility process being markets from Electrovaya a patented NASDAQ creates not a electrode the tight is does to ion at micro Board electrode to certain which and and our standard our Exchange. the the lithium labs capital next inexpensive and production in capital morning. concludes electrode and production. initiatives disruption electrodes towards the patented have the disruptive of standard now structures. production on be suffers management process. toxic and disruptive both process Richard Stock restriction, Electrovaya superior is microstructure [ph] monitoring use question-and-answer of regarding and solvents, I

questions. So please for the Kevin, line open

Instructions]. [Operator

today first Alliance Our question Campbell Partners. coming from Global from is Jeffrey

Your line live. now is

Addressing what's to congratulations I'm something innovations others that you and just this Good house that remain or will discussed, this the here, advantage? in plan wondering morning quarter. might an cell your process is standard and license the you on just

to very we will Up Electrovaya do and we're a disruptive this -- we labs running technology presently is believe -- both. at

and it We the will at produce we licensing will technology. in also house look

channel discussed the concentrated batteries is direct Electrovaya I their Sankar, your market, in to Canada Okay, wondered operations Canadian largely now you. the in sales any any on large customers States? great. of multinational if United of the bringing Thank have

our actually are is based Jeffrey, -- We direct in also the U.S. team sales

sales direct the would U.S. in the direct sales our direct Canada. the than of We order Central sales. part in Southern be think in Chicago of have good I U.S., And making area. magnitude we an larger folks we our in are folks have progress around And might

an here, high for a lower couple of Morning, they're Well, is a are very because smaller, or they quite test volume Jeffrey, we order Canada the high, let's And is -- Richard then center. for of that to the distribution order the are anywhere we add we these skewed look but for joining then once thanks in warehouse the it, customers initial low, as kind they the thanks of in product, XX something. somewhat values significant number X want product. value customers in have orders that it's with will When U.S. put Richard. to comfortable, per from I because and in of units to but say And it's trial have at Jeffrey. example, just entire Walmart. the are for call the they acquainted orders tend getting orders

US seed quite that call of quite level feel is the received encouraged that we the we've at orders significant. So we'll them

just I'm sales echoing of a think that will direct from what our sales. said we I So growing see direct Sankar is trend

well. is I mean it growing quite

the two U.S. direct We teams running have got in sales major

That's that. very helpful color, I appreciate

you congratulate the you on this [ph] additional manufacturers e-truck descending on My any this XXXX e-bus do discussions at question motor to recent plan to win. want plan is opportunity is, the I for time? bus of concentrate or First, and exclusively

emerges. themselves. people positioning at is positioning themselves market, I are discussion small It's are the think the bus all is happening. very And looking market are legislation with in as which additional Everybody still We the bus a manufacturers. manufacturers

So a to of yes, are number them. we talking

they sales could for batteries. that's or possibilities could leasing some know. get Okay, a your wondered to concerning OEM that if models we the largely I discussion your been thoughts well? these good on in also both color about model some viable could the sales your surround if two and direct two these -- There's as be and work

offer do I leasing. mentioned point, OEM the this with at think I that just they

is a a for of financed their that it quite So certainly solution attractive number their them. by customers. And is and customers to

a still don't I to we're sales direct leasing. But we're point, investment this. at in evaluating. this pretty be the looking the think side we're For term this near stage, very and There's any major something monitoring required at think leasing for it's I going at

third out there's that that worked there If our think parties financing. customer wishes can the they lease to I with. we've provide

at priorities. on our So stage, not this it's

my And referenced the came At level, can is, give shelf XXXX if the just by release Okay. high to ideas if can don't the I might manufacturing guidance anyone, is raised you we be appreciated just press last expansion some would in where any way, want inquire we helpful? a your or certainly question wondered to you experience, just it. are that know the point M&A, I -- be and along with and funds I get thinking if color they there of really invested, I'm you any mean technology us

see we be U.S. opportunistic. No, growing Jeffrey, will the We in demand

very We I who first in think, a tie our just Australia. order up have we with global strong received and an is OEM

growth. will be used funds So for

had as XX% to running thing have earlier margin. gross the interesting is, other been Richard XX% we consistently The in said,

your when bottom hitting like So revenue, a something you're is good. million pretty XX line

So looking over organic M&A probably are funds of for and the so growth growth activities. we most --

we're something And something But is closely. this something all very and with that in alluded I also that the is we're the facility that certainly expansion a are options table. we considering the think into it's the us, attractive on that past at to looking that's there, is U.S. but we've is to considering

good Right, quarter congratulations in a I appreciate on and forward again the color XXXX. and the year to we're looking

Jeffrey. much, very you Thank

Thank you.

We end any of over the the comments. have back further like session. closing floor question-and-answer turn for reached our I'd to

in speaking you you the a Thank wish New all for Happy Thank We after call. holiday and a And for again best very happy our with report Christmas for best first results Year. wishes concludes the this that to our Year. listening fiscal We look you. we morning. Well, New all a forward quarter and safe you season. Merry

you Thank everyone.

today's It you. Thank conclude does teleconference.

disconnect participation your day. line at your have We you this wonderful a and may time thank today. You for