VANCOUVER, British Columbia – GreenPower Motor Company Inc. (TSX-V: GPV) (OTCQX: GPVRF) (“GreenPower” or the “Company”), a leading designer, manufacturer, and distributor of a diverse line of electric-powered buses for the transit, shuttle, tourist and school sectors, today announced results for its third quarter ended Dec. 31, 2019.
Quarterly Highlights:
- Sold or leased a record 35 all-electric buses during the period, comprised of 33 EV Stars and two Synapse Type D School buses.
- Reported quarterly revenue of $5 million compared to $1.1 million for the same quarter in the previous year, an increase of 350%.
- Reported quarterly Adjusted EBITDA loss of $115,741 compared to an Adjusted EBITDA loss of $330,192 in the previous year
- Gross profit margin during the quarter was 29.4%, compared to 25.6% in Q2.
- For the nine months ended December 31, 2019, the Company generated revenue of $12.9 million compared to $3.6 million for the nine months ended December 31, 2018, an increase of 258%.
- Delivered 30 EV Stars to Green Commuter, pursuant to an order for 100 EV Stars that was placed earlier in the year.
- Delivered 3 EV Stars to Sacramento Regional Transit being a follow-on order from the 6 EV Stars delivered earlier in the summer.
- The Synapse Type D School bus passed the California Highway Patrol certification and received the 292 card.
- Currently, there are 50 EV Stars in production and another 50 in pre-production.
- At Dec. 31, 2019, the Company had received approvals for 85 HVIP voucher requests relating to sales in California, for a total of approximately $9 million reserved from the 2019 allocation, subject to final delivery and approval.
- Finished the quarter with inventory of $4.8 million, including $2.5 million of finished goods and $2.3 million of work in process and accounts receivable of $5.7 million.
“In the last two quarters, the Company has delivered 62 all-electric buses which is substantially more than we had delivered up to that point. Given our current strong order book and nation-wide sales reach, we are well-positioned to continue to deliver robust growth going forward,” said Fraser Atkinson, chairman and CEO of GreenPower Motor Company. “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. In addition, we continue to work towards uplisting to the NASDAQ stock exchange, which, we believe, will be of benefit to our shareholders.”
Results for the Third Quarter Ended December 31, 2019
For the three-month period ended Dece. 31, 2019, the Company recorded revenues of $4,977,548 compared to $1,106,530 for the three months ended Dec. 31, 2018, an increase of 350 percent. Cost of sales for the quarter amounted to $3,511,990 yielding a gross profit of $1,465,558 or 29.4% of revenues compared to a gross profit of $590,309 for the same quarter in the previous year. Operating costs consisted of administrative fees of $1,055,706, transportation costs of $58,863; travel, accommodation, meals and entertainment costs of $52,792, product development costs of $348,583; sales and marketing costs of $109,731; professional fees of $87,953 and office expense of $41,549, as well as non-cash expenses including $34,885 of share-based compensation expense and depreciation of $157,970. Interest and accretion on the line of credit, convertible debentures and promissory notes totaled $574,031, and a foreign exchange gain of $418 resulted in a loss for the period of $1,056,087 or $0.01 per share. Non-cash expenses consisting of depreciation, accretion and accrued interest, share-based compensation, warranty accrual and amortization of deferred financing fees totaled $675,755 in the three-month period.
Results for the Nine Months Ended Dec. 31, 2019
For the nine-month period ended Dec. 31, 2019, the Company recorded revenues of $12,858,002 compared to $3,595,892 for the nine months ended Dec. 31, 2018, an increase of 258 percent. Cost of sales for the period amounted to $9,276,910 generating a gross profit of $3,581,092 or 27.9 percent of revenues. Operating costs consisted of administrative fees of $2,505,075, transportation costs of $177,727, travel, accommodation, meals and entertainment costs of $240,542, product development costs of $864,309; sales and marketing costs of $256,211; professional fees of $201,585 and office expense of $135,157 as well as non-cash expenses including $181,454 of share-based compensation expense and depreciation of $462,217. Interest and accretion on the line of credit, convertible debentures and promissory notes totaled $1,584,685, and a foreign exchange loss of $4,069 resulted in a loss for the period of $3,031,939 or $0.03 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, non-cash 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.
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. For further information go to www.greenpowerbus.com.
