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EV

Envirotech Vehicles, Inc. (EVTV)·Q1 2022 Earnings Summary

Executive Summary

  • Revenue rose to $1.108M, up 135% year over year (12 vehicles sold vs. 5), driven by FAR network and NJ ZIP vouchers; net loss widened to $2.527M, with $1.633M non‑cash charges impacting OpEx .
  • Operational milestones: Osceola, AR 580k sq ft facility Phase 1 completed; additional orders placed for 100 Class 3–4 cab‑chassis trucks and 100 Class 4 vans; finished goods inventory stood at 24 trucks and 100 vans at quarter‑end .
  • Management flagged supply chain constraints but expects deliveries to begin late Q2 and continue monthly through year‑end; also targeting Nasdaq uplist via reverse split alongside a potential financing, while exploring debt options (industrial bonds up to $250M) .
  • Strategic catalysts: right‑hand‑drive vehicle homologation (US DOT/California compliant) creating USPS and European market optionality; anticipated vehicle price reductions of “$10,000+” by year‑end support competitiveness and demand tailwinds amid high fuel prices .

What Went Well and What Went Wrong

What Went Well

  • Strong YoY revenue growth to $1.108M, with sales mix including 10 vans to FARs and two vans to Newark Public Library via NJ ZIP; gross profit rose to $417k on higher volume .
  • Manufacturing/inventory ramp: Phase 1 office renovation complete; 24 trucks and 100 vans in finished goods inventory; orders placed for an additional 200 vehicles, with deliveries expected to start late Q2 and continue monthly .
  • Strategic progress: right‑hand‑drive homologation (USDOT/California) positions EVTV uniquely for USPS and European markets; “we are the only company in North America…right-hand drive…homologated” (CEO) .

What Went Wrong

  • Net loss widened to $2.527M vs. $659k YoY; OpEx increased to $2.948M, including $1.615M stock‑based comp; EPS remained $(0.01) .
  • Supply chain remains a headwind industry‑wide; deliveries tied to late Q2/early Q3 start and continued constraints acknowledged by management .
  • Legal overhang: ongoing litigation with GreenPower in Canada and newly filed U.S. complaint alleging RICO and other claims; management intends to defend vigorously; investors expressed concern on dilution/uplisting path and potential $50M raise (management noted debt alternatives and reverse split plan) .

Financial Results

Quarterly Trend (oldest → newest)

MetricQ2 2021Q3 2021Q1 2022
Sales (Revenue, $USD)$188,266 $709,092 $1,108,500
Cost of Sales ($USD)$147,932 $469,611 $691,562
Gross Profit ($USD)$40,334 $239,481 $416,938
Net Loss ($USD)$(893,079) $(850,475) $(2,527,397)
EPS (Basic & Diluted, $USD)$(0.00) $(0.00) $(0.01)

YoY Comparison (Q1)

MetricQ1 2021Q1 2022
Sales (Revenue, $USD)$470,793 $1,108,500
Vehicles Sold (Units)5 12
Gross Profit ($USD)$157,359 $416,938
Net Loss ($USD)$(658,510) $(2,527,397)
EPS (Basic & Diluted, $USD)$(0.01) $(0.01)

Segment Breakdown

  • No segment reporting disclosed in filings or press release .

KPIs

KPIQ2 2021Q3 2021Q1 2022
Vehicles Sold (Units)6 (4 vans + 2 trucks) 8 (mix vans/trucks) 12 (10 vans to FARs + 2 vans to Newark Public Library via NJ ZIP)
Finished Goods Inventory (Units)N/AN/A24 trucks; 100 vans
Vehicles in Production (Units)N/AN/A100 trucks; 100 vans (orders placed; deliveries begin late Q2/early Q3)
A/R ConcentrationN/AN/ATwo customers = 100% of revenue; one = ~81%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Vehicle Deliveries TimingFY 2022Not providedBegin late Q2/early Q3; continue monthly through year‑end Introduced
Vehicle PricingFY 2022Not providedAnticipated “$10,000+” price reduction per vehicle before year‑end Introduced
Capital Structure/Uplisting2022Not providedReverse split contemplated to facilitate Nasdaq uplisting and concurrent financing (up to $50M considered; not necessarily taken) Introduced
Debt FinancingMulti‑yearNot providedIndustrial bond approval up to $250M for expansion Introduced
Manufacturing Capacity2022+Not provided580k sq ft Osceola facility Phase 1 completed; proceeding to next phase Maintained trajectory

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2021, Q3 2021)Current Period (Q1 2022)Trend
Supply chain constraintsGeneral COVID impacts; building inventory deposits; early deliveries (Q2) Constraints persist; deliveries slated to start late Q2/early Q3; monthly cadence Improving cadence despite constraints
State incentives (NJ ZIP) & FAR networkEarly contributions to sales (Q2/Q3) Explicit NJ ZIP voucher usage; FARs drove 10 van sales Strengthening channel effectiveness
U.S. manufacturing facilitySeeking/locating U.S. site (Q3) Osceola site Phase 1 completed; next phase underway Operational progress
Right‑hand‑drive productNot highlighted earlierHomologated RHD; USPS and EU optionality New strategic avenue
Financing & uplistingEquity raises closed 2021; controls strengthening (Q2/Q3) Reverse split/uplisting plan; debt options (industrial bonds) Transition to public‑market readiness
Legal/regulatoryGreenPower litigation ongoing in Q2/Q3 Additional U.S. complaint filed; management defending Elevated legal overhang

Management Commentary

  • “We’ve achieved several milestones…increased revenues…new partnership agreements…and progress with our new U.S.-based manufacturing facility.” (CEO) .
  • “Sales were $1,108,500…an increase of 235%…[driven by] sale of 12 vehicles…” (CFO) .
  • “We will start receiving shipments of both the trucks and vans in the second quarter and monthly through the end of the year.” (Press release) .
  • “We are the only company in North America that can now manufacture a right-hand drive…homologated in right hand-drive.” (CEO) .
  • “Industrial bond…approval for up to $250 million…for our expansion.” (CEO) .

Q&A Highlights

  • Customer mix and demand drivers: sales to municipal airport authority (AR), California upholstery firm, national solar company (UT), and Newark Public Library (NJ); FAR demos supported conversions .
  • Fuel price tailwinds: operating cost savings vs diesel can offset EV price premium; management anticipates $10k+ price reductions improving competitiveness .
  • Capital strategy: reverse split to enable uplisting; considering debt financing (industrial bonds) versus equity dilution; intent not to raise “for the sake of raising” .
  • RHD opportunity: USPS award controversy and state lawsuits create opening; EVTV claims unique homologated RHD capability for North America and potential EU sales .
  • Integrated infrastructure plan: exploring ESS/charging/solar manufacturing in Osceola; vision to be “one‑stop shop” for fleets, including upcoming school bus unveiling .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2022 revenue and EPS was unavailable at time of request due to access limits; as a result, estimate comparisons cannot be provided. Values could not be retrieved from S&P Global at this time (consensus unavailable).

Key Takeaways for Investors

  • Volume inflection underway: 12 vehicles sold with FAR/NJ ZIP support; deliveries of 200 additional units scheduled to start late Q2 and continue monthly, suggesting sequential revenue growth potential .
  • Cost/price positioning aided by high fuel prices and planned $10k+ vehicle price reductions, improving payback math and competitiveness vs diesel fleets .
  • Strategic differentiation via homologated right‑hand‑drive vehicles opens USPS and European TAM, potentially accelerating orders once awareness builds .
  • Manufacturing footprint de‑risking: Osceola facility phase completion and inventory on hand (24 trucks, 100 vans) support delivery cadence and scalability through 2022 .
  • Financing path: management prefers debt (industrial bonds) and plans reverse split/uplisting; execution on Nasdaq listing could broaden investor base and lower capital costs .
  • Legal overhang is non‑fundamental but noteworthy; continued defense against GreenPower complaints may weigh on sentiment near‑term .
  • Near‑term trading: catalysts include monthly delivery updates, RHD orders/partnerships, uplisting progress, and school bus launch; watch supply chain and margin impact of price reductions .