Envirotech Vehicles Inc. of Osceola (Nasdaq: EVTV) on Tuesday reported the first quarterly profit in company history.
The electric vehicle maker posted net income of $126,749, up from a loss of $850,475 in the third quarter of 2021. On a per-share basis, the profit was 1 cent, up from a loss of 6 cents a year ago.
The company sold 37 vehicles in the period ending Sept. 30, compared to eight vehicles in the same quarter a year ago. Revenue was $3.9 million, up from $709,092 a year ago.
Expenses rose to $1.74 million, up from $1.4 million a year ago. The company attributed the increase to higher sales and marketing costs and operational investments.
CEO Phillip Oldridge said Envirotech's swing to profitability is "a testament to our lean, cost-focused organization." He said the company could've delivered more vehicles in the quarter if not for shipping delays.
Oldridge announced with the quarterly results that Envirotech has hired a full-time grant writing firm to take advantage of legislative tailwinds and incentive programs that he believes will spark a generational shift to electric vehicles.
The company expects to benefit from a U.S. Environmental Protection Agency program that provides nearly $1 billion in rebates for school districts to purchase electric school buses. Envirotech is bringing an electric school bus to market in the first half of 2023. "More broadly," Oldridge said in a statement, "we remain excited about large scale government fleet electrification opportunities, and have seen growing inquiries from prospective international customers as well."
Oldridge cautioned that the company's growth may not be linear moving forward due to holiday shutdowns and the impact of "inherently lumpy" state and federal funding programs on vehicle orders. He said that could result in falling deliveries in the fourth quarter, "but we remain excited about the continued growing interest in and demand for our vehicles as we look out to 2023 and beyond."
Envirotech in the quarter announced an order for three zero-emission vans from Coastal Marine Services Inc. of San Diego. It also announced that Jay Raber had been hired as national sales manager.
As of Sept. 30, the company had cash, cash equivalents, restricted cash and marketable securities of $4.7 million and working capital of $20.2 million.