We’ll have an announcement shortly on one non-performing asset that we’re eliminating. We’ve successfully sold it. It is below the line right now, but there’s a significant net savings in terms of cash outlay on a monthly, quarterly, and yearly basis that will net. And we have at least one or two of those more to go. So when you add it all up, our team that monitors that, they have all these in the different slots and levers where they come in. We see ourselves right now at the current market rate and at the current revenue streams that are coming in, we see ourselves achieving the goal based on the cuts that we have planned, the spin-off, et cetera. So we still feel confident about that. Mr. Rama or Mr. Battaglia, any additional comments for Craig?
It’s a real good question that we expected.
Michael Battaglia: No, my only additional comment would be, Craig, that — and this is Michael Battaglia, that we continue to be focused on expense reduction across the business. The EBITDA positive goal is a number one goal of Blink. As long as the market cooperates with us on the top line, we have the plan in place to achieve.
Craig Irwin: Excellent. I really appreciate that answer. So just as a follow-up, it sounds like Blink Mobility is probably the biggest factor in the spin-off there. Can you maybe share with us what their expense burden was in ‘23 or what’s a good sort of rough number for us to be thinking in ‘24 as we look at that? Maybe not the forward-looking number, but the historical number is probably the easier one to give.
Brendan Jones: Michael?
Michael Rama: Yeah, I’ll jump in on that one. Yeah, historically, between the combination of Envoy as well as BlueLA, it was burning about $4 million, bottom line EBITDA. So there’s a good chunk that we’re looking at that’s going to be, once that gets solved, resolved, and all that stuff, that will be a positive impact to that EBITDA goal. And as we’ve mentioned, it’s really look at these non-performing assets and really be able to position ourselves to really benefit to the strengths of what we do best. And that’s an EV charging infrastructure.
Craig Irwin: Great, and then last question, if I could squeeze another one in, is the Post Office. You guys did a great job winning that contract. It looks like the two other vendors, well, they both outsourced, I guess. It depends on how you look at it. But it doesn’t look like either one of them has Buy in America compliant product. I think the Post Office is talking about 14,000 chargers this year. How ready are you to serve demand from the post office? Do you believe it’s accurate that the others do not have Buy in America compliant products to offer the Post Office at this time? Is there anything else we should probably look at to understand the potential in there?
Brendan Jones: So I’ll say this. We can’t comment on the other manufacturers and where they stand, right? We can say that we are in good standing in our relationship with the Post Office. We’re in contact with them and they’re in contact with us about what the future looks like for 2024. We have a lot of confidence in the communications that they’re delivering to us and what we need to do to fulfill the orders that will come in in 2024. The details of it, we haven’t got permission from the Post Office to release yet. So we have to kind of lay a little bit low on that. Mike Battaglia, any additional insight onto that other than what I just said?
Michael Battaglia: Yeah, the only thing I would add is, Craig, you asked about production capacity and to answer your question directly, yes, we have the production capacity to fulfill what they’re looking for.
Craig Irwin: Perfect. Thank you, gentlemen. Congrats on another really solid quarter. Impressive.
Operator: Thank you very much. Your next question is coming from Stephen Gengaro of Stifel. Stephen, your line is live.
Stephen Gengaro: Thanks, good afternoon everybody.
Brendan Jones: Hey, Stephen.
Stephen Gengaro: So a couple things for me. The first is when we think about the different pieces of revenue. I’m going to think of product sales, but then the charging service revenue. How should we think about the relative growth of those pieces as we go forward? And I’m talking about multiple quarters or even the next couple years. Like, should we think about products outgrowing that piece? Or do you think you’ll start to see the charging service revenue, because of EV density picking up, start to kind of accelerate?
Brendan Jones: Well, I’ll take a shot at it and then I’ll let the rest of the team try and answer it as well, Stephen. But certainly what we’ve seen on the trend analysis, and I’m going to focus on service revenue first, is that utilization in Europe continues to increase significantly, month over month, quarter-over-quarter, and year-over-year. And we continue in Europe to win awards to install more chargers under that model. So we’re going to see that revenue continue to grow, especially as we max out utilization on certain stations and have to add more. However, when we go back to the data and looking at the US alone and looking at who’s in the space today with full service solutions. Who is one-stop shop and can provide network installation, chargers and a flexible model to do that.
And that’s on the product side and we’re one of the most well positioned ones, plus the vertical integration that we have allows us to do that in high margins. So we do see product continuing to deliver a lot of revenue. And we see growth there, but we think the growth is going to be higher on the owner operator model than it will be on the product model over time. The difficult part is when does that inflection point come? And we haven’t — well, we’ve done some internal analysis on that. We have nothing substantial enough to report out as here’s when the inflection point will be and when it’s going to eclipse the other. Michael and Michael, any comments?
Michael Rama: This is Michael Rama. I would just add that we’ve seen just in Q1 itself this year is I think a little bit of a shift towards a little — mix on hardware or product sales to service, we’re on about 70% now, where we had used to be 75% to 80% on the product side, and now service is closer to 30%. So we’re starting to see an increase in that service side of it as a percentage of overall revenue trend.
Stephen Gengaro: Okay, that’s helpful. And then the one other question, and this is probably a sort of three year view plus, I mean, should we think about the growth in your business kind of just paralleling EV sales growth? I mean, is that a reasonable way to think about the North American business? Or do you think there are parts that either outpace or underperform that [Technical Difficulty]?
