NEXTNRG, INC. Q1 FY2022 earnings call

• Secured new commercial fleet agreements with companies like SERVPRO, Easyscripts, 1-800 JUNK, Alto, Cool Air USA, 9/11 restoration of Miami, and Chef Nissen Catering.
• Entered new sectors such as healthcare (Floridian Clinical Research) and education (Monsignor, Edward Pace High School).
• Acquired assets of a mobile fuel company affiliate of Palmdale Oil Company, leveraging Palmdale's fuel supply and vehicle parking locations.
• Plan to expand across Florida with new accounts, focusing on markets like Palm Beach County and targeting marinas and other specialty sectors.

Revenue for the first quarter of 2022 increased 54% year-over-year to $2.3 million. This was due to a 9% increase in gallons delivered and an increase in the average price per gallon. Total gallons delivered in Q1 2022 were $591,505. Cost of sales was $2.3 million in Q1 2022 compared to $1.2 million in the prior year, a 67% increase due to higher sales and additional drivers. Operating expenses were $2.9 million in Q1 2022 vs. $1.2 million prior year, driven by payroll, marketing, insurance, technology, and public company expenses. Average fuel margin per gallon was $0.47 in Q1 2022, a 31% increase from $0.36 in Q1 2021. Adjusted EBITDA loss for Q1 2022 was $2.5 million vs. $0.7 million in Q1 2021. Cash position at quarter end was $13.9 million, including investments.

• Expect strong top line growth reflecting new fleet contracts signed in Q1 and accelerating in April/May.
• Anticipate having close to 50 fuel trucks by year-end based on current commitments.
• Will continue to spend on hiring additional drivers, sales reps, and marketing to support consumer business expansion.

Q: Tate Sullivan asked about fleet customers and what drove new fleet sign-ups.

A: Mike McConnell said it's a combination of converting fuel card users, dissatisfaction with previous providers, and the value of EZFill's technology and fleet portal giving more insight into fueling activity.

Q: Tate Sullivan asked about marketing efforts.

A: Arthur Levine said most future marketing spending will be consumer-related, with Mike adding it'll be via social media and outdoor campaigns.

Q: Unidentified Analyst asked about stock-based compensation.

A: Mike McConnell explained that higher stock-based compensation in 2020 was due to paying consultants in stock pre-IPO, and now it's mostly for directors, officers, and occasional consultants.

Q: Unidentified Analyst asked about cash flow positivity.

A: Mike McConnell stated it would take time as the business is low-margin and needs scale over $100 million to be cash flow positive.