VANCOUVER, British Columbia, July 29, 2019 (GLOBE NEWSWIRE) -- 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 fiscal fourth quarter and year ended March 31, 2019.
Fiscal and Recent Highlights:
- Reported revenue of $6.1 million for the fiscal year ended March 31, 2019, an increase of 73% over the previous year, and the largest in the Company’s history
- Commenced production of 30 EV Star min-eBuses in February, with deliveries beginning in June, and started production of another 50 EV Star min-eBuses in June
- Completed the set-up of a leased 50,000 square foot manufacturing and assembly facility in the City of Porterville, California which will focus on EV Star and EV Star Plus buses
- Booked, in aggregate, orders for over 220 of the Company’s buses in fiscal 2019, including follow-on orders from existing customers
- Expanded customer base with sales to several large fleet operators including: Sacramento Regional Transit, the University of California San Francisco, Green Commuter, the Port of Oakland, Creative Bus Sales, Airline Coach Services and the San Diego Airport Parking Authority
- Signed factory representative and distribution agreement with Creative Bus Sales, the largest bus distributor in the US, with an initial order of 100 buses
- Completed delivery of the majority of EV 350 forty-foot transit buses to the City of Porterville
- Filed the initial application to uplist to the NASDAQ stock exchange, on track to be completed this calendar year
- Increased access to capital to fund production with a $5 million operating line of credit with BMO Bank of Montreal
- Closed an equity financing for gross proceeds of $4 million in May 2019
“I am pleased to report that GreenPower completed fiscal 2019 with record revenue and many significant accomplishments that position us well for 2020 and beyond,” said Fraser Atkinson, Chairman and CEO of GreenPower Motor Company. “Not only did the Company book hundreds of orders for its advanced electric buses this past year, we expanded our manufacturing capacity in California, obtained a $5 million operating line of credit and subsequent to the year-end raised $4 million in an equity financing to fuel top line growth. With our buses becoming widely known for their ease of use, styling, and leading-edge technology, we feel optimistic about the outlook going forward towards higher production and a path to profitability. We are scaling the business and moving into our next phase of rapid expansion, and we look forward to uplisting to the NASDAQ stock exchange later this year.”
Results for the Fourth Quarter Ended March 31, 2019
The Company reported fourth quarter revenue of $2.5 million versus $3.4 million for the prior-year period, reflecting shipment timing. Gross profit for the fourth quarter was $0.4 million, which was negatively impacted by a $0.6 million charge related to a change in accounting estimates for expected timing of testing of an EV 350 and application of HVIP vouchers to reduce the carrying cost of leased assets, as compared to $1.2 million in fiscal 2018. The Company reported a consolidated net loss of $1.6 million in Q4 2019 versus net income of $0.7 million in the prior-year period, reflecting the aforementioned lower gross profit as well as higher operating expense tied to increased staffing and new business development initiatives. In addition, the fourth quarter of fiscal 2018 included a tax benefit of $0.6 million to offset a deferred income tax liability that arose from the issuance of convertible debentures.
Results for the Fiscal Year Ended March 31, 2019
The Company reported revenue of $6.1 million for the twelve months ended March 31, 2019 versus $3.5 million for the prior-year, reflecting higher shipments to customers in California. Gross profit for fiscal 2019 was $1.9 million, as compared to $1.2 million in fiscal 2018, with the year-over-year growth due to the increase in revenue. Gross margin declined to 31% in fiscal 2019 from 36% in 2018; however, gross profit in 2019 was negatively impacted by the aforementioned $0.6 million charge primarily related to a change in accounting estimates. The Company reported a consolidated net loss of $4.5 million, or $(0.05) per share, versus a net loss of $2.8 million, or $(0.03) per share, in the prior-year, reflecting higher operating expense tied to increased staffing and new business development initiatives, higher product R&D, and greater interest expense. In addition, fiscal 2018 included a tax benefit of $0.6 million.
For further information contact:
Fraser Atkinson
Chairman and CEO
(604) 220-8048
Michael Sieffert
CFO
(604) 563-4144
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 Press release contains “forward- looking statements.” Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward looking statements include, among other things, the following: that the Company will significantly increase its production capabilities, that the Company is positioned for rapid growth; and that the Company will complete a listing on NASDAQ. The material assumptions supporting these forward- looking statements include, among others, that the demand for the Company’s products will continue to significantly grow; that the production capacity of the Company can be increased as planned; that the suppliers of materials will be able to satisfy the increased demand; that there will not be interruptions on production of the Company’s products; that there will not be a significant increase in the direct production costs for the Company’s products; that the Company will not be faced with significant increases in its overhead, general and administrative costs; that there will not be a recall of products due to adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the financial requirements needed to list on NASDAQ. 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 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 with on the SEDAR, available at www.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.