Lightning eMotors, Inc. (NYSE:ZEV) Q4 2022 Earnings Call Transcript

Michael Ward: Okay, so those 100 units that were produced but not delivered are expected to be delivered and counted as revenue in the first half, is that what you’re thinking?

Timothy Reeser: I think some of them will be.

Michael Ward: Okay, depending on when they get resolved? Okay. Then that has implications for cash flow, and that’s part of the unwind you see in that working capital, correct, in the revenue?

David Agatston: Correct.

Michael Ward: Then when I’m looking at the outlook for this year, so the production rate, you’re going from the 128, whatever it was in the fourth quarter, and for the full year next year you’re looking at a lower rate in the first half, is that because of these retrofits?

Timothy Reeser: Yes, it’s because of having to resolve the issues around the Romeo battery rebuilds, yes.

David Agatston: And the transition.

Timothy Reeser: And the transition – well stated, David. Yes, we are–the transition to a whole new product in terms of the GM does have–it created a time lag.

Michael Ward: So in Q1 and Q2, we can expect lower year-over-year production, but then the second half, look at it to expect higher production and accelerate as the full transition takes place?

David Agatston: Correct.

Michael Ward: Beautiful, thank you very much.

Operator: Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I’ll turn the floor back to Mr. Reeser for final comments.

Timothy Reeser: Thank you Operator, and thank you everyone for the time. This now concludes our call.

Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.