VANCOUVER, Canada — GreenPower Motor Company, Inc. (TSXV: GPV) (OTCQX: GPVRF), a leading designer, manufacturer and distributor of all-electric buses, has announced results for its second quarter that ended on Sept. 30, 2019.
GreenPower also reported that it delivered its first two school buses to a school district in California, demonstrating GreenPower’s diverse range of all-electric vehicles.
Quarterly Highlights
- Generated quarterly revenue of $5.4 million, a record for the company and more than double the first fiscal quarter of $2.4 million.
- Posted gross profit of $1.4 million and Adjusted EBITDA (defined below) of $0.2 million.
- Sold 27 all-electric buses during the period, comprised of 24 EV Stars, two Synapse Type D School buses and one EV 350.
- Delivered 20 EV Stars to Creative Bus Sales’ dealerships in Arizona, California, Oregon, Washington, Texas, Colorado, Indiana, Pennsylvania, and Georgia, expanding the company’s presence nationwide. Creative Bus Sales is North America’s largest bus dealer for sales, parts and service.
- Engaged in onsite presentations and training for Creative Bus Sales staff from 17 of their 18 locations to enhance product knowledge and facilitate the sales process.
- Expanded the EV Star platform including EV Star, EV Star Plus and EV Star Cargo models with enhanced product flexibility and customization.
- Ended the quarter with 118 HVIP approved voucher requests for orders in California, for a total of $12.3 million reserved from the 2019 allocation.
- Finished the quarter with an inventory of $6.9 million, including $2.6 million of finished goods and $4.3 million of work in process.
“I am excited to report the company achieved several significant milestones this quarter, including record sales and deliveries along with positive Adjusted EBITDA,” said Fraser Atkinson, chairman and CEO of GreenPower Motor Company.
Atkinson noted that “Through [the] execution of a comprehensive sales strategy and scaling of the business we are, as expected, producing improved financial results. Given our current strong order book and nationwide sales reach, we are well-positioned to continue to deliver robust growth going forward. We are pursuing various initiatives to maximize our operating efficiencies, expand margins, and leverage our position in the market to meet increasing demand across North America. We continue to work towards uplisting to the NASDAQ stock exchange, which, we believe, will be of benefit to our shareholders.”
Results for the Second Quarter Ended Sept. 30, 2019
For the three-month period ended Sept. 30, 2019, the company reported revenue of $5.4 million and gross profit of $1.4 million, or 26 percent of revenue. Topline growth represented sales of one EV 350, two Synapse Type D school buses, and 24 EV Stars, as well as revenue from finance and operating leases and other sources.
Selling, general, and administrative expenses (SG&A) were $1.6 million for the quarter, and the loss from operations before interest, accretion and foreign exchange was $0.2 million. The company’s Adjusted EBITDA (defined below) was $0.2 million, and GreenPower reported a consolidated net loss for the quarter of $0.7 million, or $(0.01) per share.
Results for the Six Months Ended Sept. 30, 2019
For the six-month period ended Sept. 30, 2019, the company reported revenue of $7.9 million and gross profit of $2.1 million, or 27 percent of revenue. The top-line performance represented the sale of two EV 350s, two Synapse Type D school buses, and 27 EV Stars, as well as revenue from finance and operating leases and other sources.
Selling, general, and administrative expenses (SG&A) were $3.1 million for the six months ended September 30, 2019, and the loss from operations before interest, accretion and foreign exchange was $1.0 million. The company’s Adjusted EBITDA was $(0.3 million), and GreenPower reported a consolidated net loss for the period of $2.0 million, or $(0.02) per share.
Non-IFRS Financial Measures
“Adjusted EBITDA” reflects net income before interest, taxes, share-based payments, depreciation and amortization, and warranty accrual. Adjusted EBITDA is a measure used by analysts and investors as an indicator of operating cash flow since it excludes the impact of movements in working capital items, noncash charges and financing costs. Therefore, Adjusted EBITDA gives the investor information as to the cash generated from the operations of a business.
However, Adjusted EBITDA is not a measure of financial performance under IFRS and should not be considered a substitute for other financial measures of performance. Adjusted EBITDA as calculated by GreenPower may not be comparable to Adjusted EBITDA as calculated and reported by other companies.
Conference Call
A conference call was held on Oct. 30, 2019, at 1:30 p.m. PT/4:30 p.m. ET and is available for replay. This call will contain forward-looking statements and other material information regarding the company’s financial and operating results.
- Participant dial-in: 877-270-2148; (Canada) 866-605-3852; (international) 412-902-6510
- Please ask to be joined into the GreenPower Motor Company, Inc. conference call
- Replay: 877-344-7529; (Canada) 855-669-9658; (international) 412-317-0088
- Replay access code: 10136658
- Webcast link: https://services.choruscall.com/links/gpvrf191030.html
About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor vehicles, including transit buses, school buses, shuttles, a cargo van, and a double-decker. GreenPower employs a clean-sheet design to manufacture all-electric buses that are purpose-built to be battery powered with zero emissions.
GreenPower integrates global suppliers for key components, such as Siemens or TM4 for the drive motors, Knorr for the brakes, ZF for the axles and Parker for the dash and control systems. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. www.greenpowerbus.com
