Envirotech Vehicles, the only auto manufacturer in Arkansas, posted third quarter net income of $126,749 in the first quarter as a publicly held company. The gain was a wide swing from the $850,475 loss in the same quarter of 2021.
Revenue in the quarter was $3.882 million, well ahead of the $809,092 in the same quarter of 2021. The sales increase was fueled by the sale of 37 vehicles as compared to eight vehicles in the prior year period.
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 is down from $4.846 million as of Dec. 31, 2021, to $2.623 million as of Sept. 30.
“In the third quarter, we generated a profit, the first in our company’s history. This achievement was driven by a more than 75% increase in vehicle deliveries relative to the second quarter, as we delivered 37 units, and is also a testament to our lean, cost-focused organization,” CEO Phillip Oldridge noted in the earnings report posted Tuesday (Nov. 15). “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.”
Revenue in the first three quarters was $7.078 million, also better than the $1.368 million in the same period of 2021. The company posted a loss of $3.41 million in the first nine months, more than the $2.402 million loss in the same period of 2021.
“On the manufacturing front, we continued to make progress on refurbishing our Osceola, Arkansas facility during the third quarter,” Oldridge said. “We performed extensive maintenance and upkeep inside and on the grounds of the facility. Further, we have secured our engineering, design and architecture teams as we pivot to commencement of construction inside the building to convert it to an electric vehicle manufacturing, production and assembly facility by 2024.”
The company also cited “legislative tailwinds and incentive programs” behind the expected growth in electric vehicle adoption, especially with respect to a push by the U.S. Environmental Protection Agency for more electric-powered school buses. The company said it has hired a “full-time grant writing firm” to capture as many government contracts as possible.
“More broadly, we remain excited about large scale government fleet electrification opportunities, and have seen growing inquiries from prospective international customers as well,” Oldridge noted in the report.
The thinly-traded company shares (NASDAQ: EVTV) closed Tuesday at $2.89, up 12 cents.