VANCOUVER, BC - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of mid-size buses and Class 3 electric work trucks in North America, announced today the appointment of Brent Phillips as President. This strategic move aims to bolster the company's growth and enhance its operational initiatives.
Phillips, who joined Vicinity in 2021, has over three decades of experience in the commercial transportation industry, including leadership roles at Alliance Bus Group and REV Group (NYSE:REVG). His expertise in sales, marketing, and operations is expected to drive the company's strategic plan forward.
The plan includes the onshoring of production for the Vicinity Lightning electric bus in Ferndale, WA, expanding the Canadian dealer network for the VMC 1200 electric trucks, and launching the VMC 1200 in the U.S. market. These initiatives are part of Vicinity's efforts to optimize product availability and sales.
Phillips expressed his commitment to continue the company's legacy as a trusted supplier while driving profitable revenue growth across both transit bus and EV business units. He also highlighted the company's current backlog, which exceeds $125 million, and the significant market opportunities that lie ahead.
Vicinity Motor Corp. leverages its dealer network and manufacturing partnerships to supply its flagship electric, CNG, and clean-diesel buses, as well as the VMC 1200 electric truck to various markets.
The information in this article is based on a press release statement from Vicinity Motor Corp.
InvestingPro Insights
As Vicinity Motor Corp. (NASDAQ:VEV) welcomes Brent Phillips as President, the company's financial health and market performance provide a backdrop to the challenges and opportunities he will face. With a market capitalization of $28.88 million, Vicinity operates with a notable debt burden and analysts are skeptical about its ability to become profitable this year.
InvestingPro Data shows a revenue growth of 3.11% over the last twelve months as of Q4 2023, with a significant quarterly increase of 150.27% in Q4 2023. Despite this, the company's gross profit margin remains weak at 11.21%, reflecting operational challenges. The stock has experienced high volatility and is currently trading near its 52-week low, with its price having declined by 17.22% over the past month.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, Vicinity's financials indicate it may struggle with making interest payments on its debt and is quickly burning through cash. The company's valuation also implies a poor free cash flow yield, which could impact its ability to invest in growth initiatives like those Phillips aims to implement.
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