Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $239 MCAD
Stock price at time of publication: $7,76 CAD ( reverse split price 2,40 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $462 MCAD
Vicinity Motor Corp, a leading supplier of electric, CNG, gas and clean diesel buses, today reported its financial and operational results for the second quarter of 2021.
Second Quarter 2021 and Subsequent Operational Highlights
- Revenue grew 119% to $19.1 million in the three months ended June 30, 2021, as compared to $8.7 million for the three months ended June 30, 2020.
- Delivered 46 buses for the three months ended June 30, 2021, as compared to 23 buses for the three months ended June 30, 2020.
- Commenced trading of the Company’s common shares on the Nasdaq Capital Market under the symbol “VEV” to help elevate the Company’s public profile, expand its shareholder base, improve liquidity and enhance shareholder value.
- Received $7.5 million in proceeds from accelerated warrant exercises, further fortifying the Company’s balance sheet to $10.2 million in cash, with no remaining warrants outstanding.
- Received significant governmental support with statewide purchasing contracts, rebate eligibility and grant awards.
- Awarded authorization from MBTA on behalf of the largest state transit association in the U.S., the California Association for Coordinated Transportation, for consortium members to select Vicinity buses in a statewide purchasing contract that gives State transit agencies authority to purchase “Buy America” compliant buses directly from the Company’s diverse portfolio through its distribution partner ABC Companies.
- Vicinity™ buses selected for Washington statewide purchasing contract that gives state transit agencies the right to purchase from the Company’s diverse bus portfolio.
- Received approval for a grant of US$300,000 from Washington State Department of Commerce Economic Development Strategic Reserve Fund (SRF) to assist Vicinity in building its new Vicinity Lightning™ EV and Buy America compliant bus assembly facility in Whatcom County, Washington.
- Groundbreaking ceremony marking the start of construction on the Company’s new Buy America compliant vehicle assembly facility in Ferndale, Washington attended by Washington State Governor Jay Inslee.
- Vicinity Lightning™ EV bus and EV trucks received eligibility for customer rebates of up to 33% of the purchase price through the Canadian Province of British Columbia’s CleanBC Go Electric Program.
- Entered into the medium duty truck market with the development of a fully electric Class 3 vehicle with 12,000 lb GVWR rating, with initial deliveries expected to begin in the first quarter of 2022.
- Strong sales momentum with the addition of 46 new VMC 1200 Class 3 electric truck, Vicinity Classic, and Lightning™ EV bus purchase orders.
- 14 Vicinity Lightning™ EV buses valued at over $6.0 million from Calgary Transit, the City of Calgary’s transit authority.
- 15 Vicinity™ CNG buses for a total value of over $6.0 million from a leading Canadian provincial public transportation provider.
- Four Vicinity™ buses for a total value of over $1.6 million from the County of Simcoe in Ontario, Canada.
- Three clean-diesel Vicinity™ Classic buses from Québec Private Transit Operator Le Groupe Transbus.
- Received an initial order from a private operator in British Columbia for 10 VMC 1200 Class 3 electric trucks valued at over $1.0 million.
- New strategic partnerships powering drivetrain technology advancements
- Announced strategic partnership to explore deploying Exro Technologies’ enhanced powertrain system into Vicinity’s next-generation electric bus fleet, expected to provide increased performance and extended range.
- Partnered with Danfoss Editron, a business division of Danfoss, to utilize its drivetrain systems in the medium duty fully electric Vicinity Lightning™ EV Bus.
“The second quarter of 2021 was highlighted by ongoing sales momentum, and validation of our strategy from enterprise customers, state and government agencies, and the broader capital markets,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We delivered twice as many buses in the second quarter as compared to the same year ago quarter. This traction in the marketplace is a testament to the incredible support we are receiving from state transit authorities, such as our recent approval from the California Association for Coordinated Transportation – creating a significant opportunity in the largest addressable market within the United States.
“Second quarter sales were strong, with 46 orders fulfilled across our VicinityTM Classic line with further orders being received for our breakthrough Vicinity Lightning™ EV lines of buses. Additionally, we secured an initial order for our newest product, the fully electric VMC 1200 Class 3 Truck, designed to compete in the medium duty truck category. Our sales team is building interest through our robust network of existing dealerships throughout North America and we look forward to announcing additional orders and customers for all our products in the coming months.
“During the quarter we also achieved several key capital markets milestones for the benefit of our valued shareholders. Most notably, we recently completed our uplisting to the Nasdaq to introduce our company to a broader base of U.S. institutional investors. We fortified our balance sheet in the quarter as well, as all outstanding warrants were exercised, bringing our cash balance to $10.2 million in addition to our undrawn $20 million credit facility.
“Looking ahead to the remainder of 2021, we will be anything but complacent with our recent successes– continuing to enhance our product offering with the goal of further strengthening our position in the next-generation electric vehicle space. We expect our relationships with North American transit agencies to further expand, propelled by government support and the consumer desire for a transition to a more sustainable public transportation system. Taken together, we are incredibly well positioned to create long-term value for our shareholders, and I look forward to announcing new sales, product and strategic milestone achievements in the months to come,” concluded Trainer.
We are truly impressed but not surprised by the strong development of Vicinity Motors corp for the second quarter of 2021.
Our previous estimates have been that the total sales for 2021 will land between 55-70 million CAD for the full fiscal year of 2021.
Total revenues for the first 6 months of 2021 amounts to 46,4 million CAD. This strong development makes us quite sure that the total revenues for 2021 will surpass the lower end of our estimates of revenues of 55 million CAD for 2021. However our estimates for 2022 and beyond may need to be adjusted upwards since Vicinity Motors recently also launched a class 3 vehicle in which we see tremendous revenue potential.
Although revenues for the second quarter (19,1 MCAD) of 2021 are slightly lower than in the first quarter of 2021 (27,3 MCAD) investors have to keep in mind that the delivery times for electric vehicles is not an overnight production. Vicinity Motors have been ramping up their production capabilities sharply and with the new production facility located in the United States we are confident that the company will be able to deliver “buy america” compliant vehicles in accordance with the new infrastructure bill from the Biden Administration. The company also has an ever growing sales pipeline and we hope to see the company start reporting their backlog for investors in the near future.
Vicinity Motors is currently , based on our estimates, trading at 4,4 X 2021 sales and a market cap of 239 MCAD
The EV/Sales multiple is based on our lower end projection for 2021 revenues of 55 MCAD.
Meanwhile competitors are trading at the following multiples and market cap :
Instructions on how to participate in the 2021 results conference Call
Second Quarter 2021 Results Conference Call
Date: Wednesday, August 11, 2021
Time: 4:30 p.m. Eastern time
U.S./Canada Dial-in: 1-877-300-8521
International Dial-in: 1-412-317-6026
Conference ID: 10159285
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the call will be available through Saturday, September 11, 2021. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally. Please use the replay pin number 10159285.
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