Jeff Koilodge's questions to Polar Power (POLA) leadership • Q3 2019
Question
Jeff Koilodge of Darenbridge Capital inquired about the sales cycle for the recent last-mile carrier order, potential for follow-on business, and the status of discussions with other carriers. He also asked for clarification on the Tier-1 order slowdown, the EPA certification status for the new LPG generator, and the company's ability to maintain cash flow breakeven.
Answer
COO Raj Masina detailed a 4-5 month sales cycle for the recent large order but noted a long-standing relationship with the client, with further opportunities in the Caribbean. Masina and CEO Arthur Sams confirmed they are pitching to about 12 other major last-mile carriers. They attributed the Tier-1 slowdown to an industry-wide issue of budget shifts and construction delays. Sams confirmed they passed all EPA emission tests for the LPG generator and are awaiting the certificate. CFO Luis Zavala expressed confidence in returning to positive cash flow once Tier-1 orders resume.