VANCOUVER, BC - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a North American supplier of commercial electric vehicles, announced a revenue increase to $5.1 million for the fourth quarter of 2023. This rise is primarily attributed to the sale of 11 Vicinity™ Classic transit buses.
The company's order backlog as of December 31, 2023, surpassed $125 million, with electric vehicles representing over 75% of this figure. Despite the increase in revenue, the company experienced a net loss of $9.1 million for the quarter.
In December 2023, Vicinity Motor Corp invoiced 71 EV trucks to dealers, which are scheduled for upfitting and delivery in 2024. These transactions were not recognized in the 2023 revenue results. The company also secured new orders for twenty Vicinity™ Classic Clean Diesel Buses from Autobus La Québécoise for delivery in 2024 in Quebec, Canada.
Moreover, Vicinity Motor Corp partnered with ADASTEC to develop the Vicinity Autonomous Lightning EV, an SAE Level-4 automated electric transit bus. Agreements have been signed to deploy this vehicle at Michigan State University and the Buffalo Niagara Medical Campus in mid-2024.
William Trainer, CEO of Vicinity Motor Corp, highlighted the growing sales momentum and expansion of the company's dealer network in Canada. He emphasized the importance of government incentives and the declining cost of ownership in driving the adoption of commercial electric vehicles.
For the full year ended December 31, 2023, the company reported a revenue of $19.1 million, up from $18.5 million in the previous year. The gross loss for the fourth quarter improved to $0.4 million compared to the previous year's $0.6 million. The net loss for the year improved to $16.6 million from $18.0 million in the previous year.
The company ended the year with cash and cash equivalents totaling $2.0 million, a slight increase from $1.6 million at the end of 2022.
The financial results and operational highlights were disclosed in a press release statement from Vicinity Motor Corp.
InvestingPro Insights
Vicinity Motor Corp. (NASDAQ:VEV) has shown a dynamic mix of financial metrics and market performance that investors should consider. With a market capitalization of $42.4 million, the company's size is a critical factor in its risk and return profile.
Despite a challenging period, VEV reported a significant quarterly revenue growth of 328.45% in Q1 2023, which aligns with the reported sales momentum in the article. This growth is a testament to the company's ability to capitalize on market opportunities despite the broader challenges it faces.
Still, the company's financial health reveals some concerns. A negative P/E ratio of -3.23 for the last twelve months as of Q1 2023 and an operating income margin of -57.07% indicate that profitability remains elusive.
This is further supported by the InvestingPro Tips that highlight the company's significant debt burden and analysts' predictions that VEV may not be profitable this year. Additionally, a gross profit margin of 12.62% underscores the struggles with profitability, especially when considering the competitive landscape of the commercial electric vehicle industry.
Investors looking for short-term gains might note the company's impressive one-week price total return of 20.53%. Nevertheless, the lack of dividends, as pointed out by the InvestingPro Tips, suggests that VEV is not an income-generating asset for those seeking regular payouts. For more in-depth analysis and additional tips on Vicinity Motor Corp., investors can explore https://www.investing.com/pro/VEV, where there are 10 more InvestingPro Tips available. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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