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Press release content from ACCESSWIRE. The AP news staff was not involved in its creation.

GreenPower Reports Record Quarterly Results of $5.4 million on Sales of 27 All-Electric Buses

October 30, 2019

VANCOUVER, BC / ACCESSWIRE / October 30, 2019 / GreenPower Motor Company Inc. (TSXV:GPV) (OTCQX:GPVRF) (“GreenPower” or the “Company”), a leading designer, manufacturer, and distributer of a range of all-electric buses, today announced results for its second quarter ended September 30, 2019.

Quarterly Highlights:

“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. “Through 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 nation-wide 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 September 30, 2019

For the three-month period ended September 30, 2019, the Company reported revenue of $5.4 million and gross profit of $1.4 million, or 26% of revenue. Top line 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 September 30, 2019

For the six-month period ended September 30, 2019, the Company reported revenue of $7.9 million and gross profit of $2.1 million, or 27% 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, 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.

For the three months endedFor the six months ended

Adjusted EBITDA Reconciliation

September 30,September 30,September 30,September 30,
2019201820192018

Net loss for the period

$(712,768)$(1,445,472)$(1,975,852)$(2,074,651)

Plus:

Depreciation

160,661114,672304,247229,362

Interest and accretion

510,042354,1801,010,654596,654

Share-based payments

53,02588,903146,569181,709

Warranty Accrual

188,554-227,41886,497

Adjusted EBITDA

$199,514$(887,717)$(286,964)$(980,429)

Conference Call:

A conference call will be held on October 30, 2019, at 1:30 p.m. PT/4:30 p.m. ET and will be available for replay after complete. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

Participant dial-in: (US) 1-877-270-2148; (Canada) 1-866-605-3852; (international) 1-412-902-6510

Please ask to be joined into the GreenPower Motor Company Inc. conference call

Replay: (US) 1-877-344-7529; (Canada) 1-855-669-9658; (international) 1-412-317-0088

Replay access code: 10136658

Webcast link: https://services.choruscall.com/links/gpvrf191030.html

For further information contact:

Fraser Atkinson

Chairman and CEO

(604) 220-8048

Michael Sieffert

CFO

(604) 563-4144

Brendan Riley

President

(510) 910-3377

GreenPower Investor Relations

Chris Witty

(646) 438-9385

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. Such forward-looking statements include, among other things that the Company is well positioned to continue to deliver robust growth going forward, that the Company will maximize operating efficiencies, expand margins and leverage its position in the market, that the Company will list its shares on NASDAQ and that such listing will be of great benefit to the Company’s shareholders, that the Company will receive approval for its 118 HVIP voucher request worth $12.3 million. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: the risk that government policies or laws may change and that additional governmental regulations may be implemented regarding the production and sale of electric vehicles; the risk that purchasers may not purchase the Company’s EV products; the risk that there may be additional competitors selling EV products; the risk that the Company will not be able to deliver completed buses on time; the risk that the Company’s clients will not default on their purchase terms; the risk that governmental regulations and taxation will change to adversely affect the Company’s business and financial results; the risk that government grants that reduce the cost of purchasing electric vehicles will be reduced, cancelled, or delayed, including the HVIP voucher requests relating to sales in California; the risk that the Company has a limited number of suppliers; the potential for supply-chain interruption due to factors beyond the Company’s control; the risk that there may be a recall of products; the inherent uncertainties associated with operating as an early-stage company; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; general economic conditions in Canada, the United States, China and globally; transportation industry conditions; potential delays or changes in plans with respect to deployment of services or capital expenditures; availability of sufficient financial resources to pay for the development and costs of the Company’s products; competition for, among other things, capital and skilled personnel; changes in economic and market conditions that could lead to reduced spending on green energy initiatives; competition in our target markets; management of future growth and expansion; the development, implementation and execution of the Company’s strategic vision; risk of third-party claims of infringement; legal and/or regulatory risks relating to the Company’s business and strategic acquisitions; protection of proprietary information; the success of the Company’s brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; the Company’s ability to hire and retain qualified employees and key management personnel. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files on SEDAR, available at www.sedar.com

GREENPOWER MOTOR COMPANY INC. Consolidated Condensed Interim Statements of Financial Position As at September 30, 2019 and March 31, 2019 (Expressed in US Dollars) (Unaudited - Prepared by Management)

September 30, 2019March 31, 2019
(Unaudited)(Audited)

Assets

Current

Cash and restricted cash

$487,230$198,920

Accounts receivable

2,105,2721,394,689

GST receivable

104,70999,176

Current portion of finance lease receivable

43,49021,101

Inventory

6,940,3365,157,918

Prepaids & deposits

42,74259,503
9,723,7796,931,307

Non-current

Deposits

--

Promissory note receivable

617,214593,547

Finance lease receivable

447,769303,802

Right of use assets

752,697699,574

Property and equipment

1,592,0431,692,127

Non current portion of prepaids & deposits

46,69246,692

Deferred financing fees

1,335,0551,643,249

Other assets

11
$14,515,250$11,910,299

Liabilities

Current liabilities

Line of credit

$4,633,916$4,419,907

Accounts payable & accrued liabilities

1,331,480731,223

Note payable

267,414268,946

Deposits from customers

224,177234,177

Deferred revenue

61,374589,727

Current portion of warranty liability

121,94484,707

Current portion of promissory note payable

57,46456,895

Current portion of lease liabilities

260,607194,829

Current portion of loans payable to related parties

1,116,793506,072
8,075,1697,086,483

Non-current

Loans payable to related parties

219,699992,835

Convertible debentures

2,940,1762,737,054

Lease liabilities

526,125523,459

Warranty liability

427,035251,864

Promissory note payable

375,321404,240
12,563,52511,995,935

Equity (Deficit)

Share capital

16,792,85512,984,796

Equity portion of convertible debentures

379,506383,094

Reserves

5,540,3845,342,510

Accumulated other comprehensive loss

(78,500)(89,368)

Accumulated deficit

(20,682,520)(18,706,668)
1,951,725(85,636)
$14,515,250$11,910,299

GREENPOWER MOTOR COMPANY INC. Consolidated Condensed Interim Statements of Operations and Comprehensive Loss For the Three and Six Month Ended September 30, 2019 and 2018 (Expressed in US Dollars) (Unaudited - Prepared by Management)

For the three months endedFor the six months ended
September 30,September 30,September 30,September 30,
2019201820192018

Revenue

$5,430,503$9,008$7,880,454$2,489,362

Cost of Sales

4,038,365-5,764,9201,612,229

Gross Profit

1,392,1389,0082,115,534877,133

Administrative fees

780,466532,7891,449,3691,009,427

Depreciation

160,661114,672304,247229,362

Product development costs

301,3136,637515,726170,259

Office expense

36,12568,72493,608147,548

Professional fees

52,94038,834113,632120,010

Sales and marketing

49,32293,710146,480220,084

Share based payments

53,02588,903146,569181,709

Transportation costs

56,88474,503118,864129,364

Travel, accomodation, meals and entertainment

99,40380,104187,750146,816

Sales, general and administrative costs and other expenses

1,590,1391,098,8763,076,2452,354,579

Loss from operations before interest, accretion and foreign exchange

(198,001)(1,089,868)(960,711)(1,477,446)

Interest and accretion

510,042354,1801,010,654596,654

Foreign exchange loss

4,3251,4244,487551

Loss for the period

(712,368)(1,445,472)(1,975,852)(2,074,651)

Other comprehensive income/(loss)

Cumulative translation reserve

15,379(12,151)10,868(18,023)

Total comprehensive loss for the period

$(696,989)$(1,457,623)$(1,964,984)$(2,092,674)

Loss per common share, basic and diluted

$(0.01)$(0.02)$(0.02)$(0.02)

Weighted average number of common shares, basic and diluted

107,555,09093,472,453104,737,10893,264,675

Please refer to GreenPower’s Consolidated Condensed Interim Financial Statements and accompanying notes and Management Discussion and Analysis for the periods ended September 30, 2019 and September 30, 2018 as filed on SEDAR ( https://sedar.com/ ).

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. © 2019 GreenPower Motor Company Inc. All rights reserved.

SOURCE: GreenPower Motor Company, Inc.

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