Electric vehicle manufacturer Envirotech Vehicles Inc. reported third-quarter profit of $126,749, swinging around from a loss of $850,475 in the same period a year ago and generating the first profit in company history.
The company, based in Osceola, achieved a penny per share profit for the period ending Sept. 30 from a loss of 6 cents per share in 2021. Sales were $3.9 million, an increase from $709,092 last year and boosted by the sale of 37 vehicles in the third quarter of 2022 compared to eight vehicles the prior year.
"We are proud to have generated a profit in the quarter, the first in our company's history," Chief Executive Officer Philip Oldridge said on a conference call Tuesday discussing the results. "In our view this is an impressive feat for our size and given the various offerings and headwinds we are seeing across the industry."
The company has an inventory backlog of 57 vans and 51 trucks and will begin producing vehicles in the first quarter of next year in its updated Osceola plant with full manufacturing ramping up by mid-2024. Envirotech projects it will roll out five electric school buses in the coming months to Arkansas school districts.
"We are also seeing interest from numerous other states as well," Oldridge said, noting the company is expanding its grant-writing capabilities to help schools secure federal subsidies to pay for the buses. California, Florida and New Jersey are prime markets for electric school buses, officials said.
Envirotech's sales were slowed somewhat by supply-chain snarls, the company said.
"We believe we could have hit our target of doubling deliveries on a quarter-over-quarter basis if not for shipping delays, but are nonetheless very proud to have navigated the myriad of challenges presented by global supply chains to have delivered a total of 70 vehicles this year as of Sept. 30," Oldridge said.
Net operating expenses in the quarter were $1.7 million compared with $1.4 million a year ago. Expense increases followed the manufacturer's hiring increases and sales and marketing expenses. Operating expenses included non-cash charges of $69,093.
At the end of the quarter, the company had cash, cash equivalents, restricted cash and marketable securities of $4.7 million and working capital of $20.2 million.
Oldridge said Envirotech plans to build 10,000 electric vehicles at the 580,000-square-foot facility in Mississippi County by mid-2024.
"We are confident we have the right products, assets and business model to become a leader in the commercial-fleet market as enterprises big and small ramp up their electrification plans to meet the increase in societal and governmental pressures in the battle against climate change," he said.