Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| In the transit bus business, during the third quarter, we continue to see strong demand for our Vicinity Classic transit bus line as it continues to help grow our backlog and serve as a foundational building block of our revenue mix |
| In summary, we are executing across our product line and positioning Vicinity for future success as we deliver against our incredible $150 million backlog |
| As we move forward 2024 and continue to execute against our key milestones, I believe that we have built the foundation of a business that can deliver value to its stakeholders and their communities for years to come |
| Our Vicinity Lightning next-generation electric bus continues to attract attention from industry players, and our Classic bus line continues to drive sales as the leading Canadian supplier in the mid-sized heavy-duty bus market |
| So we see really good visibility on being able to get 1,000 trucks in the delivery hopper for the Canadian marketplace throughout next year |
| For our company, the VMC 1200 carries a healthy margin profile and the year-round purchasing habits of the diversified customer base helps us smooth out traditional revenue lumpiness of our established transit bus business |
| But where we really see -- so the buses we see good visibility on getting them all out and being profitable on definitely the newer buses that are in production right now |
| We see very good visibility on getting these -- our current backlog all delivered between now and into 2024 |
| Our new partners have strong fleet service know-how that supports local businesses and government customers, making them well suited to drive the future electrification of our clients' commercial fleet needs |
| But we've got very good support definitely in Washington State, and there's a lot of good incentives down the California side |
| The gross margin for the nine months ended September 30th, 2023, was positively affected by expired warranty of $0.9 million during the period |
| During the quarter, our accomplishments included continued diversification of our dealership network across North America, ramping up production in our Ferndale manufacturing campus, a growing sales funnel and a record backlog that includes continued strength from our transit bus line |
| We believe we are well positioned for a high level of operational execution in the quarters ahead as we ramp production at Ferndale and continue to deliver against our robust $150-plus million backlog |
| Orders during the quarter included a seventh reorder with Simcoe County, Ontario, illustrating our commitment to building long-term multi-order relationships and why we continue to serve as the dominant Canadian supplier in the mid-sized heavy-duty bus market; as well as an order from the Village of New Square New York, demonstrating our ability to serve both large public transportation systems and small communities, fulfilling immediate needs and positioning us to address an incredibly wide variety of customer needs |
| That's tremendous |
| During the quarter, we made 26 successful deliveries of our VMC 1200 electric trucks to eager customers as well as eight transit buses |
| Our ADASTEC partnership has allowed us to accomplish exciting new applications for our all-electric Vicinity Lightning bus, powering the next-generation public transportation system a forward-looking organization nationally |
| We believe our ability to offer both legacy and next-generation electric vehicles in a variety of classes and configurations positions us to address an incredibly wide variety of customer needs |
| The collaboration marks a substantial leap in the realism of transportation with strong emphasis on automated, connected and shared solutions, driving innovation, accessibility and sustainability |
| Revenue grew to $6.5 million in the third quarter of 2023 as compared to $1.5 million in the third quarter of 2022 |
| We also announced exciting news for our Vicinity Lightning EV transit bus |
| And I think that's well within what we want to accomplish |
| Their customers are attracted to the VMC 1200 by an extremely competitive price point, inclusive of tax incentives |
| I mean that's always what I've been aiming for, for a gross margin rate, and I think that we should be able to hit that |
| With a new US$9 million credit facility with the Export Development Bank of Canada complementing our previous $30 million credit facility, we now have greater financial flexibility to invest in Vicinity's next growth -- next phase growth with the VMC 1200 |
| Net loss for the nine months ended September 30th improved to $7.6 million or negative $0.17 per basic and diluted share as compared to $14.1 million or negative $0.37 per basic and diluted share in the nine months ended September 30th, 2022 |
| Market fundamentals continue to support our business strategy with government incentives, corporate sustainability goals and the declining cost of ownership, all pointing towards a surging EV adoption rate |
| I mean we have -- our backlog is obviously higher than the 40 buses as well |
| So we'll see our gross margins quite easily -- if we're delivering on the level of buses and trucks that we expect to be delivering on for 2024, we should see margins easily in the 20% range for gross margin |
| We are now ramping up our production rate to tackle the fulfillment of our growing order backlog, which as of September 30th, exceeded US$150 million, the vast majority of which are for electric vehicles |
| Statement |
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| And then it looked like -- was there any reason that deliveries were down quarter-over-quarter on the truck side? You delivered 34 in the second quarter, 26 in the third quarter |
| Net loss in the third quarter of 2023 totaled $4.4 million or $0.10 per basic and diluted share as compared to $7.4 million or a negative $0.19 per basic and diluted share in the third quarter of 2022 |
| Gross profit in the third quarter of 2023 totaled $0.5 million or 8% of revenue as compared to a gross loss of $0.2 million or negative 15% of revenue in the third quarter of 2022 |
| But I get a lot of questions as to the visibility of revenue next year, particularly |
| Adjusted EBITDA loss in the third quarter of 2023 totaled $1.9 million as compared to $2.7 million in the third quarter of 2022 |
| Adjusted EBITDA loss for the nine months ended September 30th, 2023, totaled $3.7 million as compared to $6 million in the nine months ended September 30th, 2022 |
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