Q3 2024 Lion Electric Co Earnings Call Transcript
Key Points
- The Lion Electric Co (LEV) has implemented cost reduction initiatives expected to result in annualized savings of approximately $65 million.
- The company has launched a formal process to sublease a substantial portion of its joint production facility, aiming to reduce expenditures while maintaining production capacity.
- LEV has seen positive movements in both the ZETF and EPA programs, which are expected to support future revenue growth.
- The company achieved a $15 million inventory reduction in Q3 and a $35 million year-to-date reduction, aligning with its goal of a $50 million reduction in 2024.
- LEV continues to ramp up production of its LionC school buses with proprietary battery packs, receiving positive feedback from customers.
- LEV is facing significant cash flow and liquidity challenges, with a growing concern note indicating uncertainty about its ability to continue as a going concern over the next 12 months without additional funding.
- The company experienced a decline in deliveries due to delays with the ZETF program and timing of EPA-related deliveries, impacting revenues.
- LEV's order book decreased due to the withdrawal of 515 bus orders related to the ZETF program and delays in the Lion8T truck production.
- Q3 gross margins were negative $16 million, and EBITDA was negative $19.5 million, reflecting lower revenues and increased manufacturing costs.
- The company is actively seeking additional financing and working with debt holders to strengthen its financial position, indicating ongoing financial instability.
Good afternoon. Ladies and gentlemen, Welcome to the Lion Electrics third quarter, 2024 results.
(Operator Instructions) This conference call is being recorded.
I would now like to turn the call over to Dominique Perron, Chief Legal Officer and Corporate Secretary. Please go ahead, Miss Perron.
Good afternoon, everyone. Welcome to Lions third quarter, 2024 results conference call, [the telephonic. So, he is the Wass Zaat Dli]
Today, I am here with Marc Bedard, our CEO-Founder, Nicolas Brunet, our President, and Richard Coulombe, our Chief Financial Officer.
Please note that our discussion may include estimates and other forward-looking information and that our actual results could differ materially from those implied in any such statement.
We invite you to review the cautionary language in this afternoon's press release and an [R&D NE] which contain important information regarding various factors, assumptions and risks that could
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
