TORONTO, May 14, 2019 /CNW/ - Electrovaya Inc.
("Electrovaya" or the "Company") (TSX: EFL; OTCQX: EFLVF), a
lithium ion battery manufacturer with industry-leading performance
and substantial intellectual property, today reported its
financial results for the fiscal second quarter ended March 31, 2019 ("Q2 2019"). All dollar amounts
are in U.S. dollars unless otherwise noted.
Q2 2019 Financial Highlights:
- Revenue was $1.3 million
(C$1.8 million), compared to
$3.3 million (C$4.4 million) for the fiscal second quarter
ended March 31, 2018 ("Q2 2018"). The
revenue decline was attributable to the fulfillment of a single
large order in Q2 2018. Q2 2019 revenue was derived entirely from
deliveries of lithium ion batteries to multiple customers in the
electric forklift and Automated Guided Vehicle ("AGV") markets.
Revenues for the six months ended March 31,
2019 ("YTD 2019") and March 31,
2018 ("YTD 2018") were $3.2
million (C$4.3 million) and
$4.0 million (C$5.4 million), respectively.
- Gross profit was $0.4 million
(C$0.5 million), or 35% of revenue,
compared to gross profit of $0.9
million (C$1.2 million), or
28% of revenue, in Q2 2018. Gross profit for YTD 2019 was
$1.2 million (C$1.6 million), or 36% of revenue, compared to
gross profit of $1.2 million
(C$1.6 million), or 29% of revenue,
in YTD 2018.
- Net loss from continued operations was $1.9 million (C$2.6
million) compared to a net loss from continued operations of
$2.7 million (C$3.6 million) in Q2 2018. Net earnings from
continued operations for YTD 2019 were $0.9
million (C$1.2 million),
compared to a net loss from continued operations of $5.4 million (C$7.3
million) in YTD 2018. The net profit in YTD 2019 was
primarily due to a gain on the sale of capital assets of
$4.2 million (C$5.7 million).
Other Business Highlights:
- Electrovaya's batteries continue to gain substantial traction
in the Materials Handling Electric Vehicle ("MHEV") market. The
Company received both new and repeat purchase orders during the
quarter. Electrovaya now has a total of more than $3.3 million (C$4.4
million) of open orders for its MHEV, AGV and energy storage
battery products.
- To date, Electrovaya has sold and delivered batteries to
commercial operations at 23 customer sites in the United States and Canada, with several customers making
follow-up orders. The majority of customers are large corporations,
including several Fortune 500 companies. These end users span all
aspects of the materials handling market and include major retail,
furniture distribution, cold storage, manufacturing and third-party
logistics companies.
- Electrovaya has established a close working relationship with
leading original equipment manufacturers ("OEMs") in the MHEV and
AGV sectors:
-
- Badger Technologies™, a product division of Jabil Inc.,
displayed its fully autonomous robot and corresponding lithium ion
battery at Electrovaya's booth at the ProMat 2019 conference in
Chicago's McCormick Place in
April 2019. Each of Badger's
autonomous robots is powered by Electrovaya's lithium ion battery
system. The Electrovaya battery system features a high energy
density design with an advanced battery management system, and
lithium ion cells with advanced ceramic separators. These systems
are optimized to maximize energy, cycle life and safety.
- Electrovaya has completed a sales agreement with The Raymond
Corporation, a Toyota Industries Group company. The sales agreement
will allow The Raymond Corporation's Sales and Service Centers
network to sell Electrovaya battery systems to customers that have
compatible Raymond lift trucks. Electrovaya's Elivate battery
system was on display at the Raymond booth at ProMat 2019.
- Electrovaya continues to make progress in developing
high-voltage battery packs for use in the electric bus market. The
company is working with two bus companies as part of its
$2.9 million (C$3.8 million) contract with Sustainable
Development Technology Canada.
- During Q2 2019, a Canadian chartered bank provided a loan to
finance specific purchase orders. The loan is cash collaterized
with a $187K (C$250K) cash deposit. The first tranche of
$374K (C$500K) has been drawn, and the Company and bank
are now in negotiation to add second and third tranches.
- The Company has reduced operating expenses over each of the
last three sequential quarters. Operating expenses were
$3.0 million (C$4.0 million) in the fourth quarter of fiscal
2018, $2.5 million (C$3.4 million) in the first quarter of fiscal
2019, and $2.2 million (C$3.0 million) in Q2 2019. Management will
continue to focus on cost-saving opportunities.
The Company's complete Q2 2019 Financial Statements and
Management Discussion and Analysis for the quarter ended
March 31, 2019 are available at
www.sedar.com or on the Company's website at
www.electrovaya.com.
Conference Call Details:
The Company will hold a conference call on Wednesday, May 15, 2019 at 8:00 a.m. Eastern Time (ET) to discuss the Q2
2019 financial results and to provide a business update.
Conference ID: 13690810
US and Canada toll free: (877)
407-8291
International: + 1(201) 689-8345
To help ensure that the conference begins in a timely manner,
please dial in 10 minutes prior to the start of the call.
For those unable to participate in the conference call, a
replay will be available for two weeks beginning on May 15, 2019 through May
28, 2019. To access the replay, the U.S. dial-in number is
(877) 660-6853 and the non-U.S. dial-in number is +1 (201)
612-7415. The replay conference ID is 13690810.
About Electrovaya Inc.
Electrovaya Inc. (TSX:EFL) (OTCQX:EFLVF) designs,
develops and manufactures proprietary lithium ion batteries,
battery systems, and battery-related products for energy storage,
clean electric transportation and other specialized applications.
Electrovaya is a technology focused company with extensive IP.
Headquartered in Ontario, Canada,
Electrovaya has production facilities in Canada with customers around the globe.
To learn more about how Electrovaya is powering mobility and
energy storage, please explore www.electrovaya.com.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements that relate to, among other things, the
potential realization of revenue from the Company's open orders
including the potential realization of revenue from the sales
agreement that will allow The Raymond Corporation's Sales and
Service Centres network to sell the Company's products, the
successful completion of negotiations to provide the Corporation
with second and third tranches of a loan to finance specific
purchase orders, Management's ability to continue to achieve costs
savings to reduce operating expenses, anticipated continued
increase in sales momentum in fiscal 2019 through OEMs and directly
to large global companies, including Fortune 500 companies, the
effect of Litarion's insolvency filing on the Company's financial
position and performance, the future direction of the Company's
business and products, the effect of a structured sale of Litarion,
including on the Company's overhead and operations, the Company's
ability to source supply to satisfy demand for its products and
satisfy current order volume, the Company's markets, objectives,
goals, strategies, intentions, beliefs, expectations and estimates,
and can generally be identified by the use of words such as "may",
"will", "could", "should", "would", "likely", "possible", "expect",
"intend", "estimate", "anticipate", "believe", "plan", "objective"
and "continue" (or the negative thereof) and words and expressions
of similar import. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, such statements involve risks and uncertainties, and
undue reliance should not be placed on such statements. Certain
material factors or assumptions are applied in making
forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ
materially from expectations include but are not limited to: that
current customers will continue to make and increase orders for the
Company's products, that the Company's alternate supply chain will
be adequate to replace material supply and manufacturing, that the
Company's interpretation of the effect of any comfort given to
Litarion's auditors of the Company's financial support for
Litarion's operations is correct, and that Litarion's insolvency
process will proceed in an orderly fashion that will satisfy
Litarion's debt without a significant negative effect on the
Company or its assets. Important factors that could cause actual
results to differ materially from expectations include but are not
limited to: actions taken by creditors and remedies granted by
German courts in the Litarion insolvency proceedings and their
effect on the Company's business and assets, negative reactions of
the Company's existing customers to Litarion's insolvency process,
general business and economic conditions (including but not limited
to currency rates and creditworthiness of customers), Company
liquidity and capital resources, including the availability of
additional capital resources to fund its activities, level of
competition, changes in laws and regulations, legal and regulatory
proceedings, the ability to adapt products and services to the
changing market, the ability to attract and retain key executives,
and the ability to execute strategic plans. Additional information
about material factors that could cause actual results to differ
materially from expectations and about material factors or
assumptions applied in making forward-looking statements may be
found in the Company's Annual Information Form for the year ended
September 30, 2018 under "Risk
Factors", and in the Company's most recent annual and interim
Management's Discussion and Analysis under "Qualitative and
Quantitative Disclosures about Risks and Uncertainties" as well as
in other public disclosure documents filed with Canadian securities
regulatory authorities. The Company does not undertake any
obligation to update publicly or to revise any of the
forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise, except as
required by law.
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SOURCE Electrovaya Inc.