Q1 2022 AYRO Inc Earnings Call
Ladies and gentlemen, thank you for standing by good morning, and welcome to the Arrow, Inc. First quarter 2022 financial results and corporate update conference call.
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That's real high of the call will be available approximately one hour after the call through August 2022.
Now, let's turn the conference over to Scott Gordon of core IR, The company's Investor Relations firm. Please go ahead Sir.
Thank you Keith good morning, everyone and thank you for participating in today's conference call.
Joining me from Airbus leadership team, a calm quick slugger, Chief Executive Officer, Dave hauling torque interim Chief Financial Officer.
During this call management will be making forward looking statements.
Including statements that address <unk> expectations for future performance or operational results.
Forward looking statements involve risks and other factors that may cause actual results to differ materially from those statements.
For more information about these risks please refer to the risk factors described in a roast. Most recently filed annual report on Form 10-K. Subsequent periodic reports filed with the SEC and neighborhoods press release that accompanies this call, particularly the cautionary statements in it.
Okay.
Today's conference call includes adjusted EBITDA.
non-GAAP financial measure behavioral believes can be useful in evaluating its performance you should not consider this additional information in isolation or substitute for results prepared in accordance with GAAP.
For a reconciliation of this non-GAAP financial measure to net loss its most directly comparable GAAP financial measure. Please see the reconciliation table located it was earnings press release, which is available on its website at www Dot Herault dot com under the Investor tab.
The content of this call contains time sensitive information that is accurate only as of today may <unk> 2022, except as required by law a road disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call. It is now my pleasure to turn the call over to CEO .
Tom which Tom Please go ahead.
Hey, Thanks, Scott and good morning to everyone on the call.
In our fourth quarter and year end 2021 conference call with a few short weeks ago I spoke about our targeted focus on the low speed electric vehicle market and our desire to move quickly to maximize the value creation for us in that sector.
Our strategies cornerstone involves creating a new north American centric supply chain to avoid the Carson delays that have become the historical norm with the Companys Asian supply chain.
I also talked about how expense control would be paramount, even if we were developing our new arrows the model year 2023 refresh.
Low speed utility vehicle lastly, I also mentioned that we still expected record revenue from the club car current in both the first and second quarters of 2022.
Well I'm happy to say that we executed quite well on all those fronts and our corporate outlook strategy and timelines remain consistent and unchanged from our previous discussion.
Revenue in the first quarter of 2022 was one point, <unk> 3 million or 30% year over year improvement.
26% sequential improvement from the fourth quarter of 2021. This was also record revenue for the company and the first time quarterly sales surpassed $1 billion.
Despite the global supply chain challenges faced worldwide in nearly every vertical our internal team and corporate partners delivered exceptionally well we continue to expect higher sequential revenue in the second quarter.
Due in large part to reduced head count the elimination of many consultants previously used and careful general expense control, we reduced our net loss by another $1 billion to $4 6 million in the first quarter versus a net loss of $5 6 million in the first quarter of 2021.
This is a continued dramatic improvement in net loss under my tenure.
Kevin.
<unk> 4 million in reduced net losses versus a quarter six months ago, and $3 2 million in reduced debt losses versus the fourth quarter of 2021, even as we enjoyed record revenue in each of the last two quarters.
<unk> control remains a vital part of our strategy, even as we now focus on ramping design and production efforts for the <unk>.
Ah 62% decline in the net loss in my first two quarters, along with a 41% sequential reduction in net loss for the fourth quarter to the first quarter speaks well.
To our team's ability to execute and maintain cost discipline.
Additionally, we expect net loss to narrow sequentially again.
Second quarter, our balance sheet was quite strong at the end of the first quarter with 63, and a half million dollars in cash and marketable securities and no debt.
And we believe we are well positioned financially to fully execute our strategy of designing manufacturing and launching the rosy.
The design phase of the Euro C continues to progress and we continue to be on time and on budget for a launch by year end, we've identified suppliers for over 70% of the components of the <unk>.
And the first <unk> unit or or what we referred to as the meal is currently in fabrication.
We've also begun configuring our factory floor in round rock. So we will be ready to begin scale production later this year.
This factory startup will take some months to fully prepare and complete with.
But this can be done in parallel with other phases of the aerospace design and the meal fabrication. Our team at Arrow is quite experienced at such startup and manufacturing operations and again at this point, we are on track with our development timeline and budget.
<unk> will offer major technology upgrades over the current light duty electric vehicles, we offer in the marketplace. We believe it'll be ideally suited for campus.
Irina environments or any indoor environments, where the creation of fumes from traditional combustion engines would be an impediment or hazard. It will also move towards redefining the term sustainability in the low speed electric vehicle space by being lighter less CMS, if a various toxins and.
Rice of a greater mix of sustainable materials.
Other than alternatives existing in the market today.
Additionally, in many urban environments with low speed limits, we believe <unk> will be an excellent vehicle for food delivery given the numerous food box architecture configuration solutions and other enabling technology infrastructure, such as telematics logistics support and route optimum and route optimization.
We intend to offer.
That concludes my opening remarks, I'd now like to turn the call over to Dave Hollingsworth, who will review our financial results Dave.
Thanks, Tom and good morning, everyone. Here's a summary of our fiscal first quarter 2022 financial results revenue for the first quarter ended March 31, 2022 was $1 million 26846, an increase of 30% year over year and 26% sequentially.
The increased revenue was attributed to increased unit sales and deliveries of the club car current light duty EV the.
The total operating expenses in the first quarter were approximately $4 4 million as compared to $5 8 million in the first quarter of 2021, and $5 2 million in the fourth quarter of 2021.
The sequential decrease in total operating expenses was driven by an overall repositioning of engineering design and manufacturing partnerships adjusted.
Adjusted EBITDA, a non-GAAP measure in the first quarter of 2022 was a loss of approximately $4 2 million versus a loss of $3 8 million in the year ago quarter, and law and a loss of $7 1 million in the fourth quarter of 2021, representing a sequential improvement of approximately two.
Nine minutes.
Net loss in the first quarter was $4 6 million, which was an improvement from the net loss of $5 6 million in the third quarter of 2021, and a net loss of $7 8 million in the fourth quarter of 2021, the improved year over year net loss in the first quarter is primarily attributable.
To the decrease in total operating expenses following management's strategic review and implementation of cost reduction measures.
Cash and marketable securities at March 31, 2022 was $63 5 million versus $69 2 million at the end of 2021 total debt was zero at March 31, 2022 as it was at December 31, 2021 as of March 31 2022.
The company had $36 million 909956 common shares outstanding.
That concludes my prepared remarks, and I'd like to turn the call back over to Tom for any remaining remarks.
Hey, Thank you Dave.
In summary, our team is executing our strategy quite efficiently.
As indicated by our first quarter results.
Revenue surpassed $1 billion for the first time.
And reached a record in the first quarter expenses are down dramatically. Our net loss has been reduced by 62% from the quarter before I arrived.
The most recent quarter and we're in the thick of developing a new vehicle with new components that would be sourced in North America and manufactured at our own facility right here in round rock, Texas.
We expect sequentially higher revenue in the second quarter of 2022 and improved net loss sequentially and we will continue to maintain discipline.
In our total expenses.
I'd like to thank our shareholders for their support.
I look forward to sharing additional accomplishments and developments as they unfold and with that I'd like to turn the call over to the operator. So we can begin the question and answer session. Operator, yes. Thank you.
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Alright at this time, then I would like to return the floor back over to Tom Vince longer for any closing comments.
I'd like to thank all of you for participating on today's call and for your interest in Arrow we.
We look forward to sharing our progress on our next quarterly conference call. When we report our second quarter results in August thanks.
Thanks to all have a great day.
Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Okay.