Beam Global (NASDAQ:BEEM) Q3 2023 Earnings Call Transcript

Desmond Wheatley : I’m really glad you brought that up because there was so much to talk about this quarter that I did not include those things. in my prepared comments, but it can’t be denied that they’re very important. EVR [ph] is now flood proof to 9.5p. And just to put that in context for everybody, in general, the kind of flooding that you see in city environments is usually 60 or less. It’s very rare to see more than that level of it. So what that’s basically telling you is that EVR will survive almost any anticipatable flooding. And of course, the plotting is better than 9.5 feet probably got other things to worry about whether or not the EV chargers are working. So that is — and it’s amazing how many because it Sacramento, California, for example, is very, very far in line.

You wouldn’t really think that was a flooding risk, but actually Sacramento in a flood places at C level and prone to point. So as New York and source so many other customers. So that’s a huge benefit. Then also on top of that, we made the – we improved the products win rating from 125 miles per hour to 160 miles per. Actually, we know it will survive a lot more than that, but this is the independent stamp that we are – we received from an outsourced facility and are able to publish. And again, that’s not with the vehicle or anything. It’s just sitting on its own 160-mile power ratings right now. These things are important because we’re seeing increasingly violent weather events. We’re seeing rising sea levels, we’re seeing flooding, we’re seeing all these other things.

And we’re becoming more reliant on electricity than we’ve ever been at any time in our history. Vulnerability is a very serious problem. It’s not just me that saying that now. Now you’re hearing that in the halls of government in Washington and in city capitals across the country. To answer your question, we are not going to stop improving on point that point would be wider. I mean, I think that now we’ve reached 169.5 feet, probably wind rating and flooding is not going to be an area of major focus for us. But there are other things that we’re integrating into our products, which will make them more reliable, which will make them better to forecast. I mean we still haven’t even got into AI or learning or any other things that are part of our future.

But yes, you expect to see them get more resilient. And again, because of that add more value and become more vital to our customer segments.

Noel Parks: Great. And it’s been really encouraging to hear about just the enthusiasm you have from the new European team. And I’m just sort of trying to extrapolate a bit on that. Of course, the ECR product is striking. And of course, the videos you see of the deployment and how fast it is and in such small spaces. I’m just wondering, do you – how do you prepare for what might be an extremely enthusiastic uptake in the acceptance of the product in Europe as your capacity expands there?

Desmond Wheatley : Good. And again, thank you for pointing out how enthusiastic I am. I’m bound to say again, the only thing that’s more impressive than my enthusiasm is our results because I have not become almost 300% more enthusiastic that since – since we last talked, but we certainly produced almost 300% more product. But yes, look, we’ve got a great deal of room for expansion in Europe. We’ve got 6.5 acres. 225,000 square feet under roof. We are producing what we’re producing in North America and 53,000 square feet on a much smaller piece of property. So we’ve got a huge amount of room for expansion in Europe. Huge. We can get over $300 million in revenue of our San Diego facility, multiply that by several times. That’s what the European facility is taken.

And again, I can stress it strongly enough. We own it. You take a look at our P&L and look at how much rent is an impact on us in the United States. There’s no rent in Europe. We own it outright. We own the land. We own the buildings. We will not have the ongoing cost of rent anything else there to deal with. It’s also very inexpensive for us to expand the roof over. As I say, we’ve got 220,000 square feet under roof on 6.5 acres. But Amiga and Beam Europe as it now is very capable of self-performing much of the – what’s required to roof over other areas of it. So listen, I believe we are going to see that dramatic increase in requirement. Much of it will come from the EV standard product and the EV standard product requires a lot less square footage to produce.

You can also ship a lot more of them in – we only put 2 EVR in a pre-put-shipping container, we can put countless EV standards in the portico shipping container. So I’m happy with where we are. And of course, if we are expanding at those type of breathtaking rates, and I expect that we will, and I intend that we will, then we will add more facilities. I’ve always said that, too, in the United States, and my belief is that we’re going to need 4 or 5 of such facilities we have in San Diego. And Europe will not be fully served by what we now have in Serbia. One other thing you should know, we’re in 17 nations of Serbia and several of those are in Africa. And Africa is not a huge market for EV right now, but it certainly is a huge market for renewable energy and that type of infrastructure.

And we believe that just as Africans went from no telephone straight to wireless telephonic, they never did the wired phone time. We also believe that as they adopt vehicles in the future, they will largely go straight to electrification. And there will be a massive requirement for our products down there, and we’ve got our sights on that, not for next year or the year after, but as part of our future growth without a doubt Africa will be a massive market. And actually, don’t [indiscernible] see some wins pretty early on from that because there’s a lot of European and even North American aid money moving into that market looking for products like ours.

Noel Parks: Great. Thanks a lot.

Operator: Thank you. I think we’re coming to the end of our time here. Operator, if you have another question, I’m happy to answer it, but I’m also mindful of people’s time.

Operator: Okay. Yes. There seems to be one last question, Chris Pierce with Needham & Company. Please go ahead.