Q3 2023 Phoenix Motor Inc Earnings Call
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Welcome to the third quarter of 2023, Phoenix Motors, Inc. Earnings Conference call. My name is jail and I'll be your operator for today's call. As a reminder, this call is being recorded and all participants are in a listen only mode. It is now my pleasure to introduce Mark Hastings Senior Vice President of corporate development and strategy and head of Investor Relations. Please go ahead.
Thank you Danielle.
And welcome everyone to our third quarter 2023 earnings call.
I'll be joined for the Q&A session. After the call by Denton Palmer, our Chief Executive Officer.
For those of you who are new to our story Phoenix Motorcars is headquartered in Anaheim, California.
Our goal is to be a leader in sustainable and zero emission commercial transportation with a range of products available to our customers, including shuttle and transit buses school buses delivery bands and work trucks.
We market our medium duty vehicles through our brand Phoenix motor cars.
In addition, we offer a full range of EV Chargers in electric forklifts as well as telematics solutions for fleet.
The infrastructure solutions and electric vehicle maintenance and service programs.
We also are currently developing a light duty commercial vehicle line.
We'll offer pickup trucks delivery bands and SUV, which will be marketed under our Edison future brand.
We are not a pre revenue company like many others in our sector.
We were founded in 2003, we delivered our first trucks nearly a decade ago and our vehicles have logged more than 4 million zero emission I was on the road as it were.
Result, we have a stable and loyal customer base, and we offer our customers vehicles charging and telematics solutions and complete vehicle maintenance and service support.
For those of you who do not know CEO didn't upon yet he has a long history of more than 20 years in the renewable and clean energy and transportation space.
He was a pioneer in the solar business and is founded and led several New York stock Exchange and NASDAQ listed public companies, we will hear from Jeff later during our Q&A session.
I would first like just a few words about the exciting announcements. We made this morning as we March from a very lengthy and detailed process as the winning bidder for the assets of protest transit.
Next I'll spend a couple of minutes discussing our third quarter financial results and then we'll wrap up by taking your questions.
The protest transit acquisition will be an important milestone in our company's history and one that ensures that we remain highly competitive and the zero emission commercial vehicle industry.
Through this acquisition, we will gain ownership of World class technology, and the intellectual property for <unk> transit buses, a large order backlog significant assets and inventories and most importantly, a team that has successfully scaled operations have become the largest electric transit.
Manufacturer in North America.
Pro Terra accounts for over 40% of all electric transit buses delivered in North America with over 40 million real World Service models.
The 35 foot and 40 foot Dx five transit buses, which will become part of Phoenix's product portfolio are built on an innovative ground up platform using a lightweight composite body offering the longest driving range on a single charge.
Combination of Phoenix with pro terrorist Transit bus technology will provide significant market center based in terms of scale product offerings customer relationships and market expansion.
We still have much work to do before pro Terra seeks approval from the U S bankruptcy Court on November 28, but once approved we aim to close as soon as reasonably possible.
Phoenix will continue to operate criteria as transit bus manufacturing location in Greenville, South Carolina.
We will work towards ramping up production of the Dx five transit bus.
Our Anaheim facility will continue to be the hub for our Gen four product line.
Together with members of protests transit buses team.
We will benefit from the increased opportunity. This acquisition enables and the success of our integration will be driven by how effectively our employees worked together to deliver value to our customers and our results to our bottom line.
We are proud of the company, we've created and we want to thank our employees for their hard work and for staying focused on our goal to be the leading zero emission technology provider.
We also look forward to welcoming the amazing team at protests transit and Greenville to our family and the entire management team in Phoenix is excited about the opportunities that lie before us.
Part to providing more detailed information regarding our progress in the coming weeks and quarters, where not only the pro Terra transit acquisition, but also for our Gen. Four development, a retrofit solutions business and the many other exciting opportunities that we're pursuing.
Turning to the financials for the three months ended September 32023, our net revenues were zero point $3 million compared to zero point $4 million in the same period in 2022.
This represented a decrease of 30%.
Results in the quarter reflected lower EBIT lease and maintenance revenues as certain customer leases rolled off during the third quarter compared with a year ago.
Revenue from the sale of electric Forklifts also saw a modest decline.
Our cost of revenues in the third quarter was three.
$300000 essentially the same as in the third quarter of 2022.
Gross profit in the third quarter of this year was breakeven compared to gross profit of 120000 in the year ago quarter.
SG&A expenses in the third quarter declined to $2 5 million from $3 8 million in the year ago quarter.
This decrease was mainly due to cost cutting initiatives initiatives undertaken earlier this year.
As a result of all of the above factors just described the net loss for the third quarter of 2023 narrowed to $2 $7 million compared to a net loss of $3 9 million in the prior year period.
At our core Phoenix is an engineering focused company with patented technologies that address the market need for the next generation of zero emission vehicles.
We have constructed our company to be flexible and asset light.
We talk a lot about our asset light business model for those of you who know our company, which makes sense as it is central to everything that we do and something which we think that is.
Apart from other EV manufacturers.
We have an exciting road ahead with the expected acquisition of Portera transit the launches of Gen four and Gen five.
As well as added some future.
In the coming quarters and years.
We have built a scalable business that endeavors to maximize return on shareholders' capital, while also deploying industry leading technology.
We've put together a management team is seasoned and established in the EV sector, which puts us in an excellent position to execute and the high growth zero emission commercial vehicle sector.
Thanks.
Thank you to everyone who joined the call today. We appreciate your interest in our company and we look forward to sharing more about our progress in coming quarters. We now have a few minutes to answer your questions.
Thank you if you have a question. Please press star one on your telephone keypad, if you wish to remove yourself from the queue simply press Star One again one moment. Please for your first question.
Again, if you would like to ask a question press star and the number one on your telephone keypad.
Okay.
Yeah.
There are no questions at this time I will now turn the call back to Mark Hastings for some closing remarks.
Great well, thank you Danielle and thanks to everyone, who listened in today and who is on the webcast the webcast will be up.
On the site for some time. So you can go back and refer to it. Please let US know if you have any questions and we look forward to updating you on our progress both with.
The protest transit acquisition as well as with our exciting product launches in the coming quarters. Thank you so much.
Goodbye.
This concludes today's conference call you may now disconnect.
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