The Lion Electric Company (NYSE:LEV) Q3 2023 Earnings Conference Call November 7, 2023 8:30 AM ET
Company Participants
Isabelle Adjahi - VP, IR and Sustainable Development
Marc Bedard - CEO Founder
Nicolas Brunet - President
Richard Coulombe - CFO
Conference Call Participants
George Gianarikas - Canaccord Genuity
Michael Shlisky - D.A. Davidson
Benoît Poirier - Desjardins Capital Bank
Tamy Chen - BMO Capital Markets
Christopher Souther - B. Riley Securities
Rupert Merer - National Bank of Canada
Abhishek Sinha - Northland Capital Markets
Operator
Good morning, ladies and gentlemen, and welcome to Lion Electric’s Third 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.
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 third quarter 2023 results conference call. [Foreign Language] Today, I'm here with Marc Bedard, our CEO, Founder; Nicolas Brunet, our President and Richard Coulombe, our Chief Financial Officer.
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 report that in Q3, we achieved record deliveries, revenues, and gross margins, clearly showing that our focus remains our goal to profitability. Compared to Q3 2022, we basically doubled our revenues, with approximately the same SG&A expenses. And our gross margin went from negative 9% gross margin of over 6%, mostly driven by higher volume, favorable average selling price, and continued cash control. We had a significant EBITDA improvement as well, increasing from negative $15.1 million in Q3 2022 to negative $3.9 million in Q3 of this year. Also, we now have more than 1,600 vehicles on the road, with more than 19 million miles driven or 30 million kilometers, a significant achievement demonstrating our leadership position in the EV space.
It is also my pleasure to acknowledge recent leadership appointments. Nicolas, who got deeply acquainted with Lion's products, customers, and operations over the past four years, was named President, and works with me on the elaboration and execution of all strategic aspects of the business. His main focus being our commercial operations and the acceleration of sales across the United States and Canada. Richard who has been instrumental in driving our growth projects with a lot of success for the last two years was appointed Chief Financial Officer. Richard will leverage his 25 years in executive finance roles to support our objectives of profitability and positive free cash flow.