The Lion Electric Company (NYSE:LEV) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET

Company Participants

Isabelle Adjahi - Vice President, Investor Relations & Sustainable Development

Marc Bedard - Founder & Chief Executive Officer

Nicolas Brunet - Executive Vice President & Chief Financial Officer

Conference Call Participants

Michael Shlisky - D.A. Davidson

Trevor Young - Barclays

Rupert Merer - National Bank Financial

Chris Souther - B. Riley

Craig Irwin - ROTH MKM

Operator

Good morning, ladies and gentlemen, and welcome to Lion Electric Second Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded. [Operator Instructions]

I would now like to turn the call over to Isabelle Adjahi, Vice President, Investor Relations and Sustainable Development. Please go ahead, Mr. Adjahi.

Isabelle Adjahi

Good morning, everyone. Welcome to Lion's second quarter 2023 results conference call. [Foreign Language] Today, I'm here with Marc Bedard, our CEO, Founder; and Nicolas Brunet, our EVP and CFO.

Please note that our discussion may include estimates and other forward-looking information and that our actual results could differ materially from those implied in any such statements. We invite you to review the cautionary language in this morning's press release and in our MD&A, which contains important information regarding various factors, assumptions and risks that could impact our actual results.

With that, let me turn it over to Marc to begin. Marc?

Marc Bedard

Thank you, Isabelle. Good morning, everyone. Today, we are pleased to share our Q2 2023 results and key updates that will shape our path to continued growth and profitability.

First and foremost, we successfully closed earlier in July a $142 million financing round, providing us with the flexibility needed to execute our growth plans for the foreseeable future.

Second, we posted positive gross margins in Q2, which was largely driven by higher revenues and an increase in average selling prices. This also highlights our continuous tight control over the bill of material and other expenses.

And finally, not only was Q2 a record quarter in terms of revenues, but we also improved truck deliveries. We will now provide color on each of these items before we open the line for questions.

Let's start with our recently announced financing transactions. On July 19th, we closed concurrent financing transactions, resulting in gross proceeds of $142 million. Simultaneously with these financings, we extended the term of our $200 million senior credit facility to August 2025. And we also canceled our ATM program. With this key liquidity milestone behind us, we now have the required flexibility to execute our growth plans for the foreseeable future and continue our path to achieving profitability.