Electrovaya (ELVA) 15 Feb 222022 Q1 Earnings call transcript

Greetings and welcome to the Electrovaya's First Quarter 2022 Financial Results and Analyst Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Richard Halka, Executive Vice President and Chief Financial Officer. you. Thank

begin. may You

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

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

to If access want our documents annual statements form, view you and those MD&A website or our financial SEDAR on can you the information www.S-E-D-A-R.com. at

calls, normal target in comments to potential their We'll our subject for regarding our information. forward-looking including and previous provisions position to information in our are the our relating provide to size, markets. growth, trends views today with As markets, relating our all competitive

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

management and differ factors most results, factors statements, about QX information in may and results the information expectations, materially under making discussion to and could material analysis, XXXX cause and found about Additional recent press or from at release actual company's applied the risks assumptions that and forward-looking the fiscal be form, uncertainties. announcing annual

this in dollars, And like over note Canadian Sankar the Regulatory other to as to noted. Authorities. in with are now, Gupta. Also, well please U.S. on all discussed turn public Sankar. that Securities otherwise Das I'd call disclosure filed documents Dr. unless numbers As call

safety taking electric later And Richard. good other review minute buses to with longevity, applications. by going into forklifts Infinity a start Thank and is into would electric morning the its product everyone. battery to exceedingly line, and the good our I this like you, morning, and

our target of year than to XXXX Fiscal This EBITDA have Target year. fiscal revenues US for more we about million barring, fiscal would reiterating positive. year year-to-year press Year in and In over release annual this are Our unforeseen growth XXXX. $XX.X be revenue are night, circumstances. of is $XX our our revenues double XXXX, last target course, our of million XXX% breakout breakeven target

numbers of our was QX major today because Our Hence, December income their the in through That off-take quarter nine comes the their January low some majority months from to the demand have in users last the in September. were of quarter. nil.

this example, in -- to one in For next year, XX, us XXXX. X quarter million orders ending delivered our quarters. users two major expect of given already this the March purchase user And we major our more has be

manufacturer Group, partner, electric XXXX agreement, channel a Raymond that Our feel We plan, Toyota OEM January, the has month. brand Xst minimum sign Corp, forklift needs. lift their named they in revenue. X with trucks North $XX.X in minimum for about Raymond purchase also billion know Toyota is you the the America. largest have a of agreement. did which strategic in they was will supply triggered premium as number last on electric of in the is started that world manufacturer exceed XXXX purchase And Raymond

year. our and current targeted fiscal end revenue Going key strong for from the user to OEM forward, have customers partners, we our commitments reach

electric feel, over now powering are operating is we market locations, trucks, We materials, now XX and conservative in this handling emerging.

to fourth call -- greater over for results. XXXX to are differentiators turn and safety quarter details are in our life They quarter our now I changers fiscal will fundamental cycle us. and review game and and future battery to first Richard current critical Our success. results the

in certain the million XXXX however, have as fiscal minimize QX disruptions to target periods, the preference revenue to periods. its holiday differ Electrovaya of $X.X of quarter quarter, distribution order reaching ended remain recent during guidance. fiscal reflecting low has In the and not to in fiscal been in past Sankar delivery Thank our you, EBITDA, for out, in experienced XXst, product XXXX positive season volume centers for million Revenue business. We historically Sankar. first $X.X seasonality confident customers first at the $XX of pointed peak was our high XXXX. and fiscal December maintained compared has million relatively

company's corrective impact for was much to The mitigate revenue disruptions in We the chain supply ability action put possible. the to is margin through XXXX. have as XXXX supply its as the fiscal decrease by year, situation increased vendors, to gross XX% stocks, supply holding and product including number moderating foreign taking as and being expect chain in meet of the and taken margin on results The and continue supply qualifying delivery for gross targets associated minimize as This barring XX% challenges circumstances. exchange company's the monitoring many QX quarter-over-quarter chain factors, -- is of QX Steps on move to we onshore in pressures the impact evidenced vendors. multiple been closely chain mix, cost as unforeseen material logistics to of and costs, increase Global compared Management a safety increase. to such emphasis additional movement. inflation, supply. increased fiscal due interruptions, to cost shipping strain

had leaving a million company a of the maximum this the anticipated XX of available fiscal $X.X The on drawn XXXX. million of $X.X XXth, $XXX,XXX of of available plus liquidity XXXX receivable for $X.X activities million, for capitals working is availability for operating million, $X.X at drawing. objective months margin with maintain million levels ended gross XX%. $X.X to working company further Our range million the The sales believes to December $X.X with cash XXst accounts the of facility, XXXX adequate and September inventory in XX% quarter ended capital QX is of and

in is to final during which month-period, of prospectus, debt equity an aggregate a million. increase We valid shelf $XXX equity have, issue XX a may time for up however, securities or which company may the or filed base

have this at shelf, are call I'll and regarding stage on the to markets we to situation wrap shareholder the now We focused capital turn Sankar of that back value. monitor planned creating but will up. nothing

Thank you, Richard.

As year. we have last about line, Infinity battery said, product commercial we our which and revenues increase we in the are today, bullish XXX% over is expect

Our focus is electric forklifts. on

Electrovaya sales solid-state Our sales labs, areas through division, are our electrode clean continuing in research and ongoing next-generation production. batteries of the into research and

this and our relationships the report to we'll in good approach. seeing bus in battery, soon performance and company continues in patented market The and OEM with cycle of solid-state is the are life e-bus work We similarly, the on progress makers, making decisions the is capital of shells, including its potential are including automated management progress regarding robotic capital with any the markets markets and the made listing. Board before vehicles. the receipt monitors The initiatives, next always any of company U.S. Directors steps developing

As please the be working and Canadian this has who as capital as Richard pleased such lender million with and said, side, excellent finance supports and about needed. would Operator, $X promissory open working for concludes Richard now financial line $X question-and-answer financing session. company order capital morning. questions. other the to on remarks note of the our support an hold a I million, purchase This Canadian of Electrovaya a about

Thank you much. so

the of session. question-and-answer a from conducting be proceed now line Please questions comes Campbell Global. questions. with [Operator Instruction] will first with Our Jeffrey your We Alliance

Good morning, gentlemen.

'XX with start results. Let's first quarter the

First, was a or was little the than lighter consistent it result, expectations with expected? revenue your result the for seasonality

in than first seasonality, on of quarters. terms in consistent wouldn't bit the impact of quarter it's words, more that other that had did take in e-commerce say orders than would -- of previous more any an but quarter, I they the it that impact a was

from So, into was where than second. the the really to expectations. lighter just news it's with it a in line it first good now quarter like is, we'd the be. was But It shift

And the figure, XXXX. rest of you to X.X% Thanks. catching guidance that fiscal fiscal year was provide of catch-up to about if first of $XX quarter some million Can we Okay. over for a guidance year? that how us going lot results progress be on remainder basis, sense that that arch will only think of of of reiterated the the there's the up suggests the which percentage you've point,

than the we're to comfortable be higher significantly quarter going to do. think go to any don't want quarter I difficult down is $XX though and growth as which million into guidance, growth hockey said detail each I breaking at than we're we the Overall, it it add quarter. stick the I maintaining what more move some here being Jeffrey, growth. as the on that by Obviously, quarter-on-quarter second to anticipate first, anticipating through is we year

next the have -- one shifting delivery I've quarter etc. on mentioned, to as commitments, As depending quarter from we

products $X we million, placing And of the before be early and growth. folks announced, expect the good see are of which in end so was had we the delivered to January, by March, Jeffrey, as orders they

quarter And so, the unexpected. as not was December

to that on helpful. the margin. reasons customers? be finally, challenging costs No, to continues these on Thank be of was it will the you. If for gross noted, And any passed

We do that. as look at things such

-- for reduced same actually output, we your example, increased the actually you've density, costs. takes For our which material the

So, our innovating we're products. looking constantly We're that. at measures like

reductions we supply mentioned, we the there. actually vendors. and cost managed have We've to some I activities On some side, multiple on-shored as get

they to arise. the think occasion. I think it as We is meet I challenging, challenges rising the but we're

a in and components had all steel energy are are in costs, like component on certain X% reduces coming density, prices. so increase we it We so seeing and down

wondered work is has I expected? about I Okay. know That's to you. Motors. about as Thank helpful. days, roadblocks the just ask encountered if Vicinity early it it's progressing any but want or

the government will as policies by expected. thoughts. of It's and guided programs progressing electric be bus lot A

watch we on policies. Washington, So, what's are and in Ottawa these we happening both -- DC

that I your other correctly Vicinity? remarks, manufacturers prepared besides talks in you're Did in bus hear with

very we the are market It's for We forklifts than bus focused addressable Jeff, larger the are. we've and probably a large. there. Again very way is got approach electric

So, strongly very the our focus markets. forklift electric on is

the on then provide allocated expanded point in at point? if the at of remarks, future, capability can And specifically, it's be referring prepared might how some funds Canada color those I'm some and you manufacturing to Richard outside shelf the that might mentioned be wondering in Okay. finally, any

that keep possibility add process a have adds bar, like It easy was credibility shelf, it large finance on think I plans transaction think that we've but table. options place, thing the no would there's to it. not a we're available there There just certain all have the considering. over and it for -- you you if is pleased to an we're have immediate shelf to do that to have get one certainly in our I something gotten through we have the to that we to But it. etc. It's

your time to further for much material the very in and we handling Thanks business. look Great. Okay. forward wins

much, very Jeffrey. you Thank

you. Thank

Our Please next Shawn from the Tower Research. Water proceed questions with come question. of line Severson with your

My time you. I'm of -- for I is That to Thank let's in that the backlog. comes of How period million morning, turns known the understand shorter a year. understand, variability to in let's million $XX that it if let's trying confirmed it, of understand $XX right? the much is gentlemen. call say, in a was call that question's the Good orders. so or but in backlog around And of to business, hand, million. is $XX trying order

product and so clear forklift But orders XX that forklift business, Shawn, in they the electric on expect electric $XX -- we the weeks the putting in business, people sight weeks. the a next the eight or in have in million. this

order example, line do are January we -- but delivered have couple in $X the which next position $XX we on good be of weeks. of expected is the million, million the sight. to People a received For in

on that a Yeah. very from would just good Morning, of comes And sources. Shawn. I couple that, visibility it add we have

with. in are But clear their that don't says, very and we're ready the deliveries. they've year what the looking going to the you they're commitments through us for they But They've with indicated purchase end First, PO as given it. Sankar see that's discussions forward and that anticipated users. indications they're volumes till

the that thing and give which high with don't confidence that you a have intelligence million. we customers have to through is customers quite us with we the also other orders customers. of they're also it's there, figure in does to discussions the go add our have, as what Raymond, well, as in and specific in would direct $XX I and orders when that of the distributor, have The release dollar is Raymond, ready to we degree of they that I rapidly. volume But indications to of in they hand it because a want change all-in-all,

Great. progress Thank and you this through and question update for for expect the maybe what year. fiscal the Lithium-Ion explanation. Give report And on is you there retrofit Batteries. the next us

batteries million, lift or upgrades The retrofits includes lift Shawn, both as for electric new as $XX trucks, the for well batteries trucks. to

I was orders, OEM that [Indiscernible]. Okay, includes as know but what if well. know about you all didn't that retrofit

that's right. Yeah,

-- they OEM, to the OEM the with also we retrofit So, received as well. orders

Okay.

always a bag. mixed It's

Okay. And or update And bit, just milestones we for think that lastly, of on little from call year, fiscal calendar there. I touch your and coming looking terms then could be solid-state to a of that what remainder reports progress it a year batteries be wanted about should in this effort?

cycle And are hopefully is important But focused going the the of separate the soon electric solid-state -- the -- far, the labs. the needs Electrovaya a life. at batteries and certain are on we cycle for life of will progress update cars, battery in we so And bullish data are We passenger cycle on most and release. thing. work our press life progress which

Great. the questions take Thanks. you. rest I'll of offline. Thank my

Shawn. Thanks,

Thank you.

Our questions. next with the John Torrance Tucci Luca from of questions with Capital, proceed line please your come

you taking transparency, company that has has XX to Thanks evolved that agreement ago? how months Can my today has inked the supply that been speak nature that guys. has morning, good into over for It's XX Hi, connection and improved agreement of the how or the to evolved that the degree versus months question. now Raymond.

were large January, And it -- XXXX, always business a all on they’re building this felt website, company, their a infrastructures, needed so and But etc. that really You is Raymond I they is new they starting take them. know, look progress -- up and for well. develop that would which organization, a venture it's whether to their going at is few sales so months, is purchase why -- Xst think the agreements

electronically, on now their we're I their and vehicle, are both We sales well, And just mechanically, -- integrated with side, it. with is, we pleased are team digitally, doing products the very well electrically. and very think,

about I of think in orders there. very into went in I both it's organizations learning go we're tell smoothly XXXX. the that very, And we and I better you strong curve the was feeling have the out to operating through up, pipeline the relationship think now. a can which gates, much there transparency right

you like XX color. That's or e-bus for your the great between on you, this like split like how's that XXXX? on e-bus for the I it forklift e-bus know, side? Thank you of good does the -- outlook year? guess out and company of guidance some principally on Or end the fiscal, the is can And expect is that this

sector. opportunities potential exciting John addressable the the Luca, here, think that the have we and I the Material Handling market in

we market our with develops. do are how immediate clearly as growth We that on very That see where laser-focused is That engine as an don't XXXX. that. addressable that in see E-bus, But is we'll we're we focused. forklifts.

there We now keep good we some largest and industry. value I is built working with opportunity is that. all year We a we sitting leverage think need really OEM that on in our have the the really this created. laser-focus an relationships where And to right

that where division I accomplish. of That's Thank upcoming about like prepared state, on And excellent piece potentially comments the that guess -- your milestones the and color. in business next you. for talk the you solid are to labs did it about

high. is solid-state density milestone energy high is big energy -- -- it's and the The for projected and the very or this the density battery, life cycle is

initial has really we batteries. it's difficult our been shortly electric the result we low life. cars, these fulsome which good, solid-state passenger to with costs. certain progress and perfect cells information typically, will cars, this cars, cycle more for passenger progress low And so And other need it give far meet give electric is and progress, And as so out. needs comes will the passenger So, the on the cost,

forward look I And this guys. year. Thanks Excellent. to

very much, John Thank you Luca.

a You have day. great

Thanks.

now closing now any like for I turn is Shankar the over have Thank Dr. the Gupta comments. all to questions you. today. call we would Das That back to

Thank wonderful again fiscal speaking listening. concludes report That call. forward we second after results. we our Have day. our This look to you a with morning, you quarter for

Thank very you much.

This you. participation. Thank conclude your We appreciate teleconference. today's does

your Enjoy disconnect may this rest the of at lines You day. time. your