VANCOUVER, B.C., Nov. 12, 2020 /CNW/ -- GreenPower Motor
Company Inc. (Nasdaq:GP) (TSXV:GPV) ("GreenPower"), a leading
manufacturer and distributor of zero emission electric powered
vehicles serving the cargo and delivery, shuttle, transit and
school bus markets, today announced financial results for its
fiscal second quarter ended September 30,
2020.
"With cash in the bank from our equity raise and uplisting to
Nasdaq we've launched a multi-faceted effort to increase production
and pursue relationships that can drive repeat orders," said
Fraser Atkinson, CEO of GreenPower.
"Historically we've produced vehicles for sales from specific
customer orders. Now we can accelerate production, shorten
timelines for deliveries, improve cost and terms from suppliers to
support larger purchase orders which will be the drivers for
GreenPower to attain profitability."
Highlights of the second quarter:
- Completed the Company's uplisting to the Nasdaq stock exchange
under the symbol "GP" and raised gross proceeds of $37.7 million before underwriting fees and
expenses;
- Reported revenue of $2.8 million
generating a gross profit of 31.2% of revenue;
- Cash expenditures of $1.7 million
before sales in line with prior four quarters;
- Completed and delivered a total of 21 buses, including 20 EV
Stars to Green Commuter, and one all-electric school bus to
Creative Bus Sales;
- Received orders for 100 EV Stars and 10 all-electric BEAST
school buses;
- Increased production of EV Stars to 20 per month, expected to
start delivering in two quarters, representing potential quarterly
revenue of over $8million;
- Initiated production of 5
B.E.A.S.T school buses per month, expected to start
delivering in mid-2021, represents potential quarterly sales of
over $5 million;
- The EV Star was selected as an eligible vehicle for the MBTA
and Calact purchasing co-operative contract, which covers the
purchase of up to 150 zero-emission vehicles per year;
- Entered into a dealership agreement with ABC Bus, Inc. covering
the state of New York providing
for the purchase of up to 100 vehicles over three years;
- Announced the launch of the EV Star CC "Cab and Chassis" for
cargo and delivery market;
- Completed the first EV Star Cargo+ vehicle to serve the cargo
and delivery market;
- Progressed production of various models, including EV Stars, EV
Star cab and chassis, EV Star+, BEAST school buses, and EV 250
thirty-foot low floor transit buses;
- Continued the development of an autonomous EV Star with Perrone
Robotics for Jacksonville Transit Authority;
- Conducted demonstrations of a range of Greenpower vehicles to
potential customers across several US states, laying the groundwork
for potential future sales;
- Continued to effectively manage our business operations to
navigate impacts from the COVID-19 pandemic.
Brendan Riley, President of
GreenPower commented, "The quarter was a very active time for our
sales force performing in person demonstrations while we expand our
production capabilities and supply chain. Despite the
challenges of a pandemic backdrop, there is undoubtedly a sense of
commitment at both the end user and OEM level to accelerate the
transition to EV and we are ideally positioned to satisfy
both. We have the purpose built EV platform customers want,
now we also have the balance sheet to support it."
Results for the three months ended September 30, 2020
For the three-month period ended September 30, 2020 the Company recorded revenues
of $2,835,411 and cost of revenues of
$1,951,692 generating a gross profit
of $883,719 or 31.2% of revenues.
Revenue was generated from the delivery of 20 EV Stars for which
the Company provided lease financing, from the sale of one
all-electric school bus, from the sale of parts, and other sources.
Operating costs consisted of administrative
fees of $860,243; transportation
costs of $26,755; travel,
accommodation, meals and entertainment costs of $68,008; product development costs of
$235,699; sales and marketing costs
of $62,574; professional fees of
$61,650; and office expense of
$149,589, as well as non-cash
expenses including $117,737 of
share-based compensation expense and depreciation of $117,471, generating a loss from operations
before interest, accretion and foreign exchange of $836,391. Interest and accretion on the line of
credit, convertible debentures and promissory notes totalled
$505,589, and a foreign exchange loss
of $144,179 resulted in a loss for
the period of $1,486,160
Non-cash expenses consisting of depreciation, accretion and
accrued interest, share-based compensation, warranty accrual and
amortization of deferred financing fees totaled $667,415 in the three-month period resulting in
total cash expenses of $1,702,463
Results for the six months ended September 30, 2020
For the six-month period ended September
30, 2020 the Company recorded revenues of $5,107,666 and cost of revenues of $3,605,364 generating a gross profit of
$1,502,302 or 29.4% of revenues.
Revenue was generated from the sale of 38 EV Stars for which the
Company provided lease financing, from the sale of one all-electric
school bus, from the sale of parts, and other sources. Operating
costs consisted of administrative
fees of $1,718,173;
transportation costs of $53,496;
travel, accommodation, meals and entertainment costs of
$104,861; product development costs
of $456,808; sales and marketing
costs of $53,044; professional fees
of $158,076; and office expense of
$200,548, as well as non-cash
expenses including $249,769 of
share-based compensation expense and depreciation of $232,232, generating a loss from operations
before interest, accretion and foreign exchange of $1,711,536. Interest and accretion on the line of
credit, convertible debentures and promissory notes totalled
$1,060,908, and a foreign exchange
loss of $143,053 resulted in a loss
for the period of $2,915,497.
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.
Forward-Looking Statements
This document
contains forward-looking statements relating to, among other
things, GreenPower's business and operations and the environment in
which it operates, which are based on GreenPower's operations,
estimates, forecasts and projections. Forward-looking
statements are not based on historical facts, but rather on current
expectations and projections about future events, and are therefore
subject to risks and uncertainties which could cause actual results
to differ materially from the future results expressed or implied
by the forward-looking statements. These statements generally can
be identified by the use of forward-looking words such as "upon",
"may", "should", "will", "could", "intend", "estimate", "plan",
"anticipate", "expect", "believe" or "continue", or the negative
thereof or similar variations. These statements are not guarantees
of future performance and involve risks and uncertainties that are
difficult to predict or are beyond GreenPower's control. A number
of important factors including those set forth in other public
filings (filed under the Company's profile on
www.sedar.com) could cause actual outcomes and results to
differ materially from those expressed in these forward-looking
statements. Consequently, readers should not place any undue
reliance on such forward-looking statements. In addition, these
forward-looking statements relate to the date on which they are
made. GreenPower disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. All amounts in U.S. dollars.© 2020
GreenPower Motor Company Inc. All rights reserved.
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SOURCE GreenPower Motor Company