VANCOUVER, CANADA / ACCESSWIRE / July 20, 2020 / GreenPower Motor Company Inc. (TSXV:GPV) (OTCQB:GPVRF) ("GreenPower" or the "Company"), a leading designer, manufacturer, and distributer of zero emissions electric powered vehicles serving the delivery and cargo, micro-transit, private transportation and school bus markets, today announced results for its year and fourth quarter ended March 31, 2020.
Highlights for Fiscal Year Ended March 31, 2020:
- Reported annual revenue of $13.5 million compared to $6.1 million for the previous year, an increase of 122%.
- Sold or leased a record 68 all-electric buses, comprised of 62 EV Stars, four Synapse Type D School buses and two EV350 low floor transit buses.
- Delivered 33 EV Stars to Green Commuter during the year, with 70 units remaining to be delivered under Green Commuter's 100 EV Star order at year end.
- Delivered 7 EV Stars to Sacramento Regional Transit during the year, completing the initial and follow-on orders for use in SacRT's micro-transit service.
- Entered into partnerships with Perrone Robotics for the development of autonomous driving capabilities with the EV Star and Momentum Dynamics for the development of wireless charging.
- At March 31, 2020 the Company had 71 HVIP approved voucher requests pending relating to sales in California, for a total of $7,025,000 reserved from the 2019 allocation, subject to final delivery and approval.
- Finished the year with inventory of $6.6 million, including $3.8 million of finished goods and $2.8 million of work in process and accounts receivable of $1 million.
- Operating line of credit with BMO Bank of Montreal increased from $5 million to up to $8 million.
Operational Highlights Subsequent to Fiscal Year Ended March 31, 2020:
- Completed the Altoona test for the EV Star with a score of 92.2, the second highest ever attained. GreenPower can access markets relying on federal funding which requires that the vehicles have passed Altoona.
- In April, received $361,900 under the U.S. Small Business Administration's Paycheck Protection Program.
- In June delivered 18 EV Stars to Green Commuter and received $1.8 million in HVIP voucher proceeds with the remainder of the purchase price funded with lease financing.
- In July, Greenpower's national distributor Creative Bus Sales delivered two EV Stars to UCLA
- Fully autonomous EV Star under development with Perrone Robotics which is scheduled for delivery to Jacksonville Transportation Authority this fall
- Launched EV Star Cab and Chassis for the cargo and delivery market and conducted sales tours through key states
- The Company currently has EV 250's, EV Star, EV Star Plus and EV Star cab and chassis models in production or pre-production pursuant to customer orders.
"We had a record year more than doubling our revenue while maintaining a solid 30% gross profit," said Fraser Atkinson, Chairman and CEO of GreenPower Motor Company. "Prior to the fiscal year-end the Company followed recommended protocols and all non-essential personnel worked from home for almost three months. While this paused our sales and marketing activities, we were able to continue production. Since returning we've conducted demonstration tours across the U.S. in June and July in support of new market opportunities while also resuming deliveries to customers. In addition, we continue to make considerable progress towards uplisting to the NASDAQ stock exchange, which, we believe, will be of benefit to our shareholders."
Results for the Year Ended March 31, 2020
For the year ended March 31, 2020 the Company generated revenue of $13,500,403 compared to $6,082,561 for the previous year, an increase of 122%. Cost of revenues of $9,447,578 yielded a gross profit of $4,052,825 or 30% of revenue. Revenue for the year was generated from the sale of 38 EV Stars, 4 Synapse school buses, and 2 EV350s, the lease of 24 EV Stars, from lease income, and from the sale of parts and supplies. Operating costs consist of administrative fees of $3,710,618 relating to salaries, project management, accounting, and administrative services; transportation costs of $255,535 which relate to the use of trucks, trailers, tractors as well as other operational costs needed to transport company products around North America; travel, accommodation, meals and entertainment costs of $348,524 related to travel for project management, demonstration of company products, and trade shows; product development costs of $973,146; sales and marketing costs of $549,750; interest and accretion of $2,133,824; professional fees of $303,541 consisting of legal and audit fees; non-cash expenses totaled $2,521,271 and were comprised of depreciation, accretion and accrued interest, share based payments, amortization of deferred financing fees, warranty accrual and allowance for credit losses. The remaining operating costs for the period amounted to $206,035 in general corporate expenses, a foreign exchange gain of $439,209 and a write down of assets of $223,919 resulting in a consolidated net loss of $5,145,966 or $0.05 per share.
Results for the Three Months Ended March 31, 2020
For the three-month period ended March 31, 2020 the Company generated revenues of $642,401, cost of revenues of $170,669 yielding a gross profit of $471,732, related to the sale of 8 EV Stars that were previously on lease. Operating costs consist of administrative fees of $1,205,543 relating to salaries, project management, accounting, and administrative services; transportation costs of $77,808 which related to the use of trucks, trailers, contractors as well as other operational costs needed to transport company products around North America; travel, accommodation, meals and entertainment costs of $107,982 related to travel for project management, demonstration of company products, and trade shows; product development costs of $108,837; sales and marketing costs of $293,539; interest and accretion of $549,139; professional fees of $101,956 consisting of legal and audit fees; non-cash expenses totaled $651,350 and were comprised of depreciation, accretion and accrued interest, share based payments, amortization of deferred financing fees, warranty accrual and allowance for credit losses. Excluding a foreign exchange gain of $439,209, the remaining operating costs for the period amounted to $70,878 in general corporate expenses and a write down of assets of $223,919, resulting in a consolidated net loss of $2,130,787. During the fourth quarter we increased the credit limit on our operating line of credit from $5 million to up to $8 million, and ended the quarter with a cash and restricted cash balance of approximately $0.5 million and approximately $1.7 million available on our operating line of credit.
Conference Call
A conference call will be held on July 20, 2020, at 2 p.m. PT/5 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. To participate, interested parties should dial (US) 1-844-739-3982 (Canada) 1-866-605-3852; (International) 1-412-317-5718 and ask to be joined to the GreenPower Motor Company earnings call.
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
Michael Cole
(949) 444-1341
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
GREENPOWER MOTOR COMPANY INC.
Consolidated Statements of Financial Position
As at March 31, 2020 and 2019
(Expressed in US Dollars)
| March 31, 2020 | March 31, 2019 | |||||||
Assets | ||||||||
Current | ||||||||
Cash and restricted cash | $ | 451,605 | $ | 198,920 | ||||
Accounts receivable | 943,812 | 1,394,689 | ||||||
GST receivable | 33,393 | 99,176 | ||||||
Current portion of finance lease receivables | 82,501 | 21,101 | ||||||
Inventory | 6,590,600 | 5,157,918 | ||||||
Prepaids and deposits | 22,083 | 59,503 | ||||||
| 8,123,994 | 6,931,307 | |||||||
Non-current | ||||||||
Promissory note receivable | 384,261 | 593,547 | ||||||
Finance lease receivables | 1,247,790 | 303,802 | ||||||
Right of use assets | 620,191 | 699,574 | ||||||
Property and equipment | 1,739,529 | 1,692,127 | ||||||
Non current portion of prepaids and deposits | 46,692 | 46,692 | ||||||
Deferred financing fees | 1,045,221 | 1,643,249 | ||||||
Other assets | 1 | 1 | ||||||
| $ | 13,207,679 | $ | 11,910,299 | |||||
Liabilities | ||||||||
Current | ||||||||
Line of credit | $ | 5,469,944 | $ | 4,419,907 | ||||
Accounts payable and accrued liabilities | 1,021,738 | 731,223 | ||||||
Note payable | 10,574 | 268,946 | ||||||
Deferred revenue | 426,157 | 823,904 | ||||||
Current portion of warranty liability | 121,944 | 84,707 | ||||||
Current portion of promissory note payable | 58,038 | 56,895 | ||||||
Current portion of lease liabilities | 272,468 | 194,829 | ||||||
Current portion of loans payable to related parties | - | 506,072 | ||||||
| 7,380,863 | 7,086,483 | |||||||
Non-current | ||||||||
Loans payable to related parties | 2,700,625 | 992,835 | ||||||
Convertible debentures | 2,995,136 | 2,737,054 | ||||||
Lease liabilities | 386,650 | 523,459 | ||||||
Warranty liability | 573,203 | 251,864 | ||||||
Promissory note payable | 346,158 | 404,240 | ||||||
| 14,382,635 | 11,995,935 | |||||||
Equity (Deficit) | ||||||||
Share capital | 16,892,725 | 12,984,796 | ||||||
Equity portion of convertible debentures | 379,506 | 383,094 | ||||||
Reserves | 5,515,639 | 5,342,510 | ||||||
Accumulated other comprehensive loss | (110,192 | ) | (89,368 | ) | ||||
Accumulated deficit | (23,852,634 | ) | (18,706,668 | ) | ||||
| (1,174,956 | ) | (85,636 | ) | |||||
| $ | 13,207,679 | $ | 11,910,299 | |||||
GREENPOWER MOTOR COMPANY INC.
Consolidated Statements of Operations and Comprehensive Loss
For the Years Ended March 31, 2020, 2019, and 2018
(Expressed in US Dollars)
| March 31, | March 31, | March 31, | ||||||||||
| 2020 | 2019 | 2018 | ||||||||||
Revenue | $ | 13,500,403 | $ | 6,082,561 | $ | 3,516,156 | ||||||
Cost of Sales | 9,447,578 | 4,224,419 | 2,267,765 | |||||||||
Gross Profit | 4,052,825 | 1,858,142 | 1,248,391 | |||||||||
Sales, general and administrative costs | ||||||||||||
Administrative fees | 3,710,618 | 2,144,423 | 1,231,041 | |||||||||
Depreciation | 578,555 | 516,208 | 525,228 | |||||||||
Product development costs | 973,146 | 437,208 | 251,826 | |||||||||
Office expense | 206,035 | 241,824 | 185,847 | |||||||||
Professional fees | 303,541 | 324,577 | 170,153 | |||||||||
Sales and marketing | 549,750 | 417,111 | 404,610 | |||||||||
Share-based payments | 308,106 | 332,741 | 744,801 | |||||||||
Transportation costs | 255,535 | 263,164 | 229,637 | |||||||||
Travel, accomodation, meals and entertainment | 348,524 | 298,328 | 315,556 | |||||||||
Allowance for credit losses | 46,447 | - | - | |||||||||
Total sales, general and administrative costs | 7,280,257 | 4,975,584 | 4,058,699 | |||||||||
Loss from operations before interest, accretion and foreign exchange | (3,227,432 | ) | (3,117,442 | ) | (2,810,308 | ) | ||||||
Interest and accretion | (2,133,824 | ) | (1,400,923 | ) | (563,411 | ) | ||||||
Foreign exchange gain | 439,209 | 52,445 | 18,396 | |||||||||
Loss from operations for the year | (4,922,047 | ) | (4,465,920 | ) | (3,355,323 | ) | ||||||
Other item | ||||||||||||
Write down of assets | (223,919 | ) | (78,231 | ) | (28,817 | ) | ||||||
Loss before income tax | (5,145,966 | ) | (4,544,151 | ) | (3,384,140 | ) | ||||||
Income tax recovery | - | - | 610,000 | |||||||||
Loss for the year | (5,145,966 | ) | (4,544,151 | ) | (2,774,140 | ) | ||||||
Other comprehensive income / (loss) | ||||||||||||
Cumulative translation reserve | (20,824 | ) | (23,691 | ) | 21,314 | |||||||
Total comprehensive loss for the year | $ | (5,166,790 | ) | $ | (4,567,842 | ) | $ | (2,752,826 | ) | |||
Loss per common share, basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.03 | ) | |||
Weighted average number of common shares outstanding, basic and diluted | 106,542,125 | 93,496,658 | 92,262,206 | |||||||||
Please refer to GreenPower's year-end financial statements and MD&A for the periods ending March 31, 2020, March 31, 2019 and March 31, 2018 for more information on our financial results, available at available at www.sedar.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 intends to uplist its shares on NASDAQ and that such listing will benefit the Company's shareholders, that the Company will be able to deliver vehicles and meet the final requirements in order to receive the 71 approved HVIP voucher requests totalling $7,025,000, that the fully autonomous EV Star under development with Perrone Robotics will be delivered to Jacksonville Transportation Authority this fall, that the Company will complete current vehicles under production or pre-production pursuant to customer orders. Actual results could differ from those projected in any forward looking statements due to numerous factors. Such factors include, among others: the risk from the COVID-19 global pandemic which is expected to negatively impact the financial ability of our customers to purchase vehicles from us, of our suppliers' ability to deliver products to us, our employees ability to manufacture our vehicles and carry out their other duties in order to sustain our business, and other factors; 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; the potential for increased tariffs or restrictions that inhibit or prevent the Company from importing key components and vehicles from China or other countries; 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. © 2020 GreenPower Motor Company Inc. All rights reserved.
SOURCE: GreenPower Motor Company Inc
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