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Ideanomics, Inc. (NASDAQ:IDEX) Q2 2023 Earnings Convention Name August 25, 2023 4:30 PM ET
Firm Individuals
Tony Sklar – SVP, IR
Alf Poor – CEO
Scott Morrison – CFO
Robin Mackie – COO
Convention Name Individuals
Operator
Welcome, everybody to the Ideanomics Second Quarter Earnings Convention Name. Becoming a member of me right now, I’m happy to have Mr. Alfred Poor, Chief Govt Officer; Mr. Scott Morrison, Chief Monetary Officer; and Mr. Robin Mackie, our Chief Working Officer. The recording of right now’s name can be archived and obtainable within the Occasions and Displays part of our company web site for no less than 30 days.
Throughout this name we’ll make forward-looking statements resembling dialogue relating to our income expectations or forecasts for the remaining quarters and the complete fiscal 12 months 2023 and 2024. These statements are primarily based on our present expectations and knowledge obtainable as of right now, and are topic to quite a lot of dangers, uncertainties and assumptions.
Precise outcomes could differ materially and because of varied danger components which were described in our periodic filings with the SEC. Consequently, we warning you in opposition to putting undue reliance on these forward-looking statements. We assume no obligation to replace any forward-looking statements because of new data or future occasions, besides as required by legislation.
As well as, different dangers are extra absolutely described within the Ideanomics public filings with the U.S. Securities and Change Fee, which could be seen at www.sec.gov. Right this moment, August 25, 2023, the corporate is filed with the SEC it is Type 10-Q for Q2, 2023 and afterwards issued a press launch asserting these monetary outcomes. So contributors of this name who could haven’t already completed so could have a look at these paperwork as we offer a abstract of the outcomes on this name.
The format of right now’s name can be as follows. Mr. Alf Poor will start our feedback right now, and communicate to the corporate’s progress and strategic developments. Mr. Scott Morrison will then communicate to the corporate’s working and monetary outcomes for the second quarter 2023. And Mr. Robin Mackie will communicate to the corporate’s operational actions. Mr. Poor will then make administration’s closing remarks.
I will now hand the ground over to Alf Poor, Ideanomics CEO.
Alf Poor
Thanks, Tony, and thanks to everybody becoming a member of our Q2, 2023 earnings name right now.
It is just been just a few weeks since our Q1 earnings name, so I do not wish to go over the identical materials that we lately lined. I will let Robin and Scott present the element and deal with the corporate’s working outcomes, and the current technique behind these outcomes.
As you will see in right now’s outcomes and heard on the Q1 name, we’re finalizing a reorganization of the enterprise to deal with the final mile, and native supply automobiles, and related charging merchandise. This implies we’re placing most of our emphasis on VIA Motors and the market alternative that affords the corporate, and its shareholders.
This market phase, now we have recognized with the Through Motors absolutely electrical skateboard and cab chassis configurations, will allow us to promote the three properly outlined buyer demographics: direct gross sales to fleet operators, gross sales of our skateboard and or cab chassis to physique builders and operators, and the licensing of our business main and price environment friendly electrical skateboard to OEM.
We consider that this renewed focus can be important to our success because it ensures we function in a disciplined method with your entire group, and assets centered on this purpose. To validate our technique and focus, we’re in late stage discussions or have already got agreements in place with a number of clients and companions in every of those classes. Our merchandise are extraordinarily properly acquired, which gives us with the conviction to execute on this technique, such that we start to display worth to our shareholders.
I’ll now hand you over to Scott Morrison who will take you thru our monetary outcomes for the quarter.
Scott Morrison
Thanks, Al, and thanks to everybody listening to this name.
As talked about beforehand, now we have taken steps to divest Timios and wind down our China operations. Due to this fact, throughout the second quarter of 2023, these enterprise parts met the factors for classification as discontinued operations and are now not introduced as persevering with operations on this 10-Q submitting.
Property and liabilities related to these parts are introduced in our consolidated stability sheets as discontinued operations. The outcomes of operations associated to those parts are included within the consolidated statements of operations as loss from discontinued operations web of tax. The money flows of those parts are additionally introduced individually in our consolidated statements of money flows. All corresponding prior 12 months intervals introduced in our monetary statements and associated data within the accompanying notes have been reclassified to mirror a discontinued operations presentation.
Income for persevering with operations within the quarter was $8.2 million, 13% decrease than the identical time final 12 months. Income for persevering with operations for the primary half of ’23 was $13.8 million, 19% increased than the identical interval final 12 months.
As we have exited the Timios’ title and escrow enterprise, and the China market, basically all of this income is from gross sales of EV-related and charging-related services and products in our core markets of North America and Europe.
Gross revenue from persevering with operations was $0.7 million, representing a gross margin of 8.4%. This is a rise of roughly $1.2 million in comparison with a lack of $0.5 million final 12 months.
Working bills excluding impairments from persevering with operations for the quarter was $32.7 million, down 15% from the $38.4 million within the first quarter. That is largely because of the value discount and operational effectivity measures Robin spoke of throughout our earlier convention calls.
I would like handy this over to Robin Mackie, Chief Working Officer who will talk about our operations in additional element.
Robin Mackie
Thanks, Scott.
As talked about just a few weeks in the past, our quarter one earnings name, while market situations have remained difficult, my focus stays on bettering effectivity throughout the enterprise to make progress on product improvement and order books regardless of the capital constraints. We proceed to cut back prices at each the company and working firm ranges. That is beginning to turn into obvious in our quarter two outcomes, with the steep discount in working bills, as talked about by Scott earlier. It’s our intent to proceed to evaluate, our prices regularly.
As talked about earlier than, whether or not our strategic and monetary instances to take action, we intend to promote or search direct funding in our operational companies to return worth to our shareholders. We have initiated this course of with a number of of the companies already. On condition that we have spoken about our focus being on last-mile supply automobiles and the related charging merchandise, companies like Energica and Solectrac fall exterior of that focus.
We have begun work with advisors and potential buyers to judge if the sale of these companies would produce appropriate returns for our shareholders. With WAVE charging and U.S. Hybrid being extra aligned to our future technique, we have begun talking with potential strategic buyers to supply non-dilutive capital to allow additional progress.
Specifically, following the beforehand talked about consolidation of our charging belongings and IP into WAVE charging, we see a chance with strategic buyers with in depth data of the worldwide charging market, complimentary merchandise and synergistic IP to strengthen WAVE’s place as a worldwide chief within the excessive automobile inductive charging market.
Regardless of market situations and the capital constraints, the administration groups at every of our companies have labored diligently to make sure they proceed to make progress.
Now, again to Alf for closing remarks.
Alf Poor
Thanks, Robin.
2023 has been a difficult 12 months for all the industrial EV business, and the choices now we have taken this 12 months, see Ideanomics as a a lot leaner, extra environment friendly group which is ready to execute on its enterprise goals, and place us for fulfillment.
Thanks all for tuning in right now and from everybody at Ideanomics, thanks in your continued curiosity and assist.
Tony Sklar
That is on a regular basis now we have for right now. This concludes the Ideanomics Q2, 2023 Traders Incomes Convention Name. We encourage our neighborhood to proceed to succeed in out so we are able to reply any questions that you’ve individually. You may ship these inquiries to ir@ideanomics.com.
We want to thank our listeners, shareholders, and analysts, and others who’ve taken the time to hearken to our earnings name. We urge you to confer with the SEC’s newest submitting for any data that you simply want. This name can be obtainable on the web site within the Traders part and you’ll find the hyperlink there.
To be alerted to information, occasions and different data in a well timed method, we suggest you following us on social media, signal as much as our e-newsletter and discover our web site at www.ideanomics.com.
Thanks, everybody, for taking part and listening to the decision right now.
Query-and-Reply Session
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