The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matt Koranda - ROTH Capital Partners, LLC - Analyst
: Maybe just wanted to start with the Blue Arc. So could you just clarify exactly when you went into production officially? And then how do we think
about unit capacity as we ramp production in the program?
And then you guys said sort of financial breakeven is the goal for '25, but just could you unpack what that means exactly? Is that EBITDA breakeven?
And then what does that require in terms of unit deliveries for next year if we kind of pencil in some kind of rough gross margin for the units?
Question: Matt Koranda - ROTH Capital Partners, LLC - Analyst
: Okay. That's super helpful, Jon. And then just in terms of the visibility into the units for next year, it sounds like between sort of the Randy Marion
agreement that you guys announced a long time ago and maybe some of the incremental unit orders that you've gotten from fleets. I would
assume you already have visibility into those units? Are we counting on additional orders from the fleets that are in trial currently?
Maybe just give us some context around sort of what we require to hit that breakeven mark for '25.
Question: Matt Koranda - ROTH Capital Partners, LLC - Analyst
: Okay. Fair enough. And then just on FVS, wanted to see if you could maybe just unpack the moving pieces within margin there. It looks like you're
seeing some pretty good margin improvement despite the revenue headwinds that you're experiencing. And I know you touched on it a little bit
in the prepared remarks, but maybe if you could just unpack sort of what's going on underneath the surface, the work you're doing to improve
margins in FVS and how sustainable the sort of EBITDA margin rate is from the third quarter is.
Question: Matt Koranda - ROTH Capital Partners, LLC - Analyst
: Okay. Got it. Maybe just last one. In terms of implied order flow and FVS looked reasonably healthy, just given the environment we're in, and I would
assume parcel fleet just has not really come back in full force yet, but maybe if you could talk about some of the order book trends you're seeing
in FVS. Any signs of life in terms of just maybe preliminary discussions with parcel fleet customers.
Maybe just a little bit more detail about what you're seeing on sort of the demand front in the early stages here.
Question: Mike Shlisky - D.A. Davidson & Company - Analyst
: Maybe to follow up on Matt's question, just to go over to the SV side. I was a little surprised, if I heard correctly, that orders were actually going to
be down a little bit over the prior year. The people who make the chassis certainly aren't cutting production. They were all-time highs for production,
and supply chain seems to be no longer an issue for them.
So if they're going to make so many chassis, I'm a little surprised that there's not a lot of orders to match those chassis. I just wanted to get a feel
for whether you think there's a good runway into 2025 or maybe you can maybe comment on the orders for October for that business, for the
service bodies and vocational.
Question: Mike Shlisky - D.A. Davidson & Company - Analyst
: Okay. And then just wanted to talk -- I just want to ask about Blue Arc as well. I don't want to get too ahead of myself, as you look to '26 -- so you
had mentioned a few hundred in '25. That's all you need to kind of break even. I know it's early, but do you feel like you've got a positive EBITDA
expectation for '26 for Blue Arc?
Question: Mike Shlisky - D.A. Davidson & Company - Analyst
: Okay. And then maybe one last one for me on the FVS side, non-Blue Arc EVs, just the upswing pieces, whether E-transit or what have you, how
has that gone recently? Has the share been any larger maybe this quarter than you saw at the time last quarter or last year? Or have volumes --
again, you still do diesel and it's almost the same product, it doesn't really matter, but just curious whether volumes have flattened out or if they're
still on the upswing here.
Question: Mike Shlisky - D.A. Davidson & Company - Analyst
: Yes. I was just curious to see if you have a higher EV mix now than last quarter or is it the same? And then the same question for the -- over the prior
year.
| 
