- Formerly known as Grande West Transportation Group
- Supplies electric, compressed natural gas, gasoline, and clean-diesel buses
- Started 2021 with a $50 million backlog
What Vicinity Motors does:
Vicinity Motor Corp (CVE:VMC) (OTCQX:BUSXF) (FRA:6LG) is a leading supplier of electric, compressed natural gas (CNG), gasoline, and clean-diesel buses for both public and commercial enterprise use in the US and Canada.
The company was formerly known as Grande West Transportation Group Inc and changed its name to Vicinity Motor in March 2021.
The company’s line of Vicinity buses, which maintain a dominant market share in Canada (90%), are produced by the company’s world-class manufacturing partners whom the company says can ramp up production to 2,000 units per year. Currently, more than 500 of its buses, which carry an average sales price of $400,000, are in operation.
The company has three bus models -- heavy-duty (diesel and CNG), medium-duty (electric vehicle EV), and light-duty (gasoline, diesel, and CNG). A fourth heavy-duty EV bus is currently under development.
Its flagship Vicinity Lightning medium-duty EV bus, enabled through a tier-1 strategic supply agreement with BMW batteries and components, seeks to lead the global transition to more sustainable transit vehicles in the private and public markets. The first deliveries are expected in the second half of 2021.
To meet demand, Vicinity is currently developing a Buy America Act-compliant assembly facility and US headquarters in Washington State that will be capable of producing 1,000 units annually across all sizes and power systems.
The company has finalized the design specifications and is wrapping up the permitting for the facility, which is not too far from its Aldergrove, British Columbia location. Operations are expected to commence in 2021.
How is it doing:
Halfway through 2021, Vicinity Motor has seen its sales activity accelerate while receiving significant governmental support with statewide purchasing contracts, rebate eligibility, and grant awards.
The company also has started trading on the Nasdaq, expanding its exposure and stature to a wider base of US investors.
In July, Washington State Governor Jay Inslee attended Vicinity's groundbreaking ceremony for its new manufacturing facility and US headquarters in Ferndale, about a 30-minute drive across the border from Vicinity’s mothership in Vancouver.
Washington State has been instrumental in helping the company expand its US footprint. Vicinity recently received US$300,000 from the state's Department of Commerce Economic Development Strategic Reserve Fund to help fund the facility.
Also in Washington State, Vicinity buses also have been selected for a statewide purchasing contract that gives state transit agencies the right to purchase buses from the company's diverse portfolio. Down in California, Vicinity recently won a similar purchasing contract with the Golden State's largest transit association.
In Canada, Vicinity Lightning EV bus and EV trucks received eligibility for customer rebates of up to 33% of the purchase price through British Columbia's CleanBC Go Electric Program.
Vicinity also is added EV trucks to its portfolio, It recently entered into the medium-duty truck market with the development of a fully electric Class 3 vehicle, with initial deliveries expected to begin in 1Q 2022. The truck will be built at its Washington State facility.
Meanwhile, in June, the company received a new purchase order from Québec private transit operator Le Groupe Transbus for its Vicinity Classic buses.
Le Groupe Transbus has ordered three of Vicinity Motor's 30-foot Clean-Diesel Vicinity Classic buses. The Vicinity buses are in service with Canadian public transit agency EXO, serving the city of Varennes, a suburb of Montreal. Transbus currently owns and operates nine Vicinity Classic buses, and with this order, takes the total to 12 in its fleet.
Earlier in the month, the company announced it had partnered with Danfoss Editron to utilize its drivetrain systems in the medium-duty, fully electric Vicinity Lightning EV bus. Danfoss Editron specializes in hybrid and electric drivetrain systems for the marine, off-highway, and on-highway markets.
The systems feature a Buy America Compliant 220 kilowatt (kW) motor with an Eaton multi-speed transmission. They are also fitted with a digital AVIONICS controller and inverter to enable the intelligent management of all the vehicle's operations.
Also in June, Vicinity Motor reported it had received an initial order from Calgary Transit, the city of Calgary's transit authority, for 14 Vicinity Lightning EV buses valued at more than C$6 million. The initial 14 EV bus order is for delivery in 2022, with Calgary Transit having the option to purchase supplemental vehicles at a set price over a five-year period.
In April, Vicinity Motor announced it received a purchase agreement worth more than $1.6 million from Simcoe County in Ontario for four of its buses, with delivery expected in the first half of 2022.
In the same month, the company struck a new purchase order with a leading Canadian provincial public transportation provider for 15 buses valued at more than $6 million. Delivery for that deal is also expected in 1H 2022.
On the financial front, Vicinity reported that its 2Q revenue jumped by triple digits. For the quarter ended June 30, 2021, revenue increased 119% year-over-year to $19.1 million -- primarily driven by the delivery of 46 buses in the quarter, versus 23 buses in 2Q 2020.
For the six months of 2021, revenue grew 266% year-over-year to $46.4 million. Vicinity delivered 113 buses in the first half of 2021, as compared to 29 buses in the year-ago period.
Vicinity's 2Q net loss decreased to $0.4 million, or ($0.01) per share, as compared to a net loss of $0.8 million, or ($0.03) per share, in the same year-ago quarter. Net income for the six months was $1.7 million, as compared to a net loss of $2.5 million for the six months ended June 30, 2020.
Also, the company ended the quarter with working capital of $24.4 million, as compared to $16.7 million as of December 31, 2020.
- Commence operations at Washington State facility in 2021
- Obtain dealer licensed coverage in every state
- Transition with EVs to sustainable public transit system deliveries in 2H 2021
What the boss says:
The second quarter of 2021 was highlighted by ongoing sales momentum, and validation of our strategy from enterprise customers, state and government agencies, and the broader capital markets," said CEO William Trainer in a statement.
"We delivered twice as many buses in the second quarter as compared to the same year-ago quarter. This traction in the marketplace is a testament to the incredible support we are receiving from state transit authorities, such as our recent approval from the California Association for Coordinated Transportation - creating a significant opportunity in the largest addressable market within the United States.”
Trainer added: "Looking ahead to the remainder of 2021, we will be anything but complacent with our recent successes - continuing to enhance our product offering with the goal of further strengthening our position in the next-generation electric vehicle space. We expect our relationships with North American transit agencies to further expand, propelled by government support and the consumer desire for a transition to a more sustainable public transportation system."
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