Workhorse Group Inc. (NASDAQ:WKHS) Q4 2022 Earnings Call Transcript

Rick Dauch: Great question. First thing we did was hire a dynamic leader and Chris Amy to take over our commercial vehicle sales responsibility. She has over 20 years of experience selling commercial trucks across the country, both on traditional ICE and EV. She’s built an outstanding team, both, we have three regional sales members who’ve got key customer contacts. All three of those people have over 20-plus years in the industry, and we’ve also built the back office now, both here from an administrative standpoint and also from service support to make sure we can take care of our customers. That’s number one. So, we have the systems in place or soon we’ll have the systems in place to build trucks and ship trucks and take care of trucks in the field.

I’d say this, the feedback I’ve got and I’ve been on the road quite a bit in the first quarter meeting with customers. We’ve hosted several up at Union City. They’re impressed by our facilities. We’re on track to have 11 certified dealers here in the second quarter of this year, and that will lead to quite a bit of sales. I think right now; Bob and I feel comfortable that we have 80% visibility into the low end of our $75 million sales range in 2023.

Operator: Our next questions come from the line of Greg Lewis with BTIG. Please proceed with your question.

Greg Lewis: Thank you, and good morning everybody. And just following up on that around the guidance. As we think about the kind of the puts and takes of that, is the high end of the guidance? Is that — or however you want to talk about it, is the delta to the high end and the low end, more a function of the timing of the rollout of the W750? Or is it maybe around the ability to scale the cabin chassis, what it sounds like is almost in the 40 to 50 per month range already?

Rick Dauch: Yes, I’d say a couple of things. We want to make sure we set a range that we can achieve. As I said, we have 80% visibility into the low end of the range. I’ve been in this industry now for over 30 years. Pilot and launches don’t always go perfect, right? If they do, great. If they don’t, we’ve got a little wiggle room, I’ll say, right now, right? The more we can get demos in the hands of customers, the more they’re going to like them, I think. We’ve had at least three customers in the last 60 days come to Unicity and they turned around and signed up as new dealers, almost within 30 days, okay? So, I think the more we get our products in the hands of customers, they can test drive them, they can think through all the different variations on the W4 CC of what they can put in the back, the better our sales will be.

I think we were surprised, we brought the W4 CC over in December of ’21 to show a couple of customers, thinking about we build the step van. And overwhelmingly, the customer said they really want the W4 CC cap chassis. That’s where the bigger opportunity that we didn’t see that when we first started looking at the market. So, I think that’s a big opportunity for us. You got to go through the update. I know we have four or five trucks sitting at up fitters right now. One is getting a dry van on it, one is getting a refurb, one is getting it configured for a shovel bus, one is getting put together for a flatbed. We’ve got a really important commercial partner that we’ve had, who has been helping us work our way through and better understand how these vehicles go to market.

We thank that.