Envirotech posts positive net income in the third quarter
Envirotech Vehicles, Arkansas’ only automaker, posted net income of $126,749 in the first quarter as a publicly traded company. The gain was a significant variance from the loss of $850,475 in the same quarter of 2021.
Revenue for the quarter was $3.882 million, well above the $809,092 in the same quarter of 2021. The increase in sales was fueled by the sale of 37 vehicles, compared to eight vehicles in the period of the previous year.
Total net operating expenses were $1.738 million compared to $1.381 million for the same period in 2021. The Company’s cash and cash equivalents decreased from $4.846 million at December 31, 2021 to $2.623 million as of September 30.
“In the third quarter, we generated a profit, the first in the history of our company. This achievement was driven by a more than 75% increase in vehicle deliveries compared to the second quarter, when we delivered 37 units, and is also a testament to our lean and cost-focused organization,” noted CEO Phillip Oldridge in the published results report. Tuesday (November 15). “We believe we could have achieved our goal of doubling deliveries quarter-over-quarter without the shipping delays, but nonetheless we are very proud to have overcome the myriad challenges presented by supply chains. for delivering a total of 70 vehicles this year as of September 30.
Revenue for the first three quarters was $7.078 million, also higher than the $1.368 million for the same period of 2021. The company recorded a loss of $3.41 million in the first nine months, more than the loss of $2.402 million from the same period of 2021.
“On the manufacturing front, we continued to make progress on the renovation of our Osceola, Arkansas plant during the third quarter,” Oldridge said. “We have carried out extensive maintenance and upkeep inside and on the grounds of the facility. Additionally, we have secured our engineering, design and architecture teams as we pivot to the start of construction inside the building to convert it into a manufacturing, production and assembly facility for electric vehicles by 2024.”
The company also cited “legislative tailwinds and incentive programs” behind the expected growth in electric vehicle adoption, particularly regarding pressure from the U.S. Environmental Protection Agency for more. electric school buses. The company said it hired a “full-time grant writing firm” to capture as many government contracts as possible.
“More generally, we remain excited about opportunities for large-scale government fleet electrification, and have also seen an increase in inquiries from potential international customers,” Oldridge noted in the report.
Shares of the thinly traded company (NASDAQ: EVTV) closed Tuesday at $2.89, up 12 cents.