GreenPower Announces Results for the Second Quarter
GreenPower Announces Results for the Second Quarter
Vancouver, Canada November 29, 2018 – GreenPower Motor Company Inc. (TSXV: GPV) (OTCQX: GPVRF) (“GreenPower” or the “Company”) announces results for its second quarter ended September 30, 2018.
Highlights for the second quarter ended September 30, 2018 included:
- First delivery of an EV Star all-electric Min-eBus to the Port of Oakland as an employee shuttle for on-property transportation.
- The Company recorded $2.6 million of deferred revenue during the quarter.
- At the end of the quarter the Company had inventory of $5 million.
- Completed the primary production of 8 vehicles including 3 EV350 forty-foot low floor transit buses, 3 Synapse Type-D school buses and 2 EV Star Min-eBuses
- Conducted Synapse Type-D school bus demonstrations at 44 different school districts as well as demonstrations with the EV250 and EV350 low floor transit style buses.
- Commenced demonstration tours with the EV Star Min-eBus with a broad range of prospects with the transit, shuttle and tourism sectors.
- Porterville Transit EV350 forty-foot low floor transit bus featured at the Zero Emissions Bus Conference at the Los Angeles Metro Headquarters.
- EV Star featured at the Bay Area Air Quality Management District Technology Marketplace event in conjunction with the Global Climate Action Summit held by Governor Jerry Brown of California.
- The Company entered into a four-year lease with a three year option for a facility with over 50,000 square feet in the City of Porterville as a manufacturing and assembly center. Initial production will focus on EV Stars and then Synapse Type-D school buses.
“We experienced temporary delays with our production resulting in delayed deliveries this quarter. The Company expects to deliver 15 to 18 buses to customers with the products that were delayed, along with the planned deliveries for the third and fourth quarters,” said Fraser Atkinson, Chairman of GreenPower. “This will lead the Company to profitability and the goal that we set for the end of this fiscal year of generating quarterly positive cash flow from operations.”
Highlights subsequent to the second quarter included: (i) BMO Bank of Montreal increased its line of credit from $2 million to $3 million. This facility is primarily being used to fund the costs to produce all-electric buses, (ii) Additional orders for 9 EV Stars from Green Commuter and SacRT, (iii) order for 5 EV250 thirty-foot low floor transit, and (iv) lease for 2 EV350 forty-foot low floor transit buses.
For the three-month period ended September 30, 2018, the Company had revenues of $9,008 and operating costs for the period amounted to $1,454,480 consisting of administrative fees of $532,789, transportation costs of $74,503, travel, accommodation, meals and entertainment costs of $80,104, product development costs of $6,637; sales and marketing costs of $93,710; interest
and accretion on the convertible debentures and promissory note of $354,180; professional fees of $38,834 consisting of legal and audit fees; as well as $88,903 of non-cash share-based compensation expense and depreciation of $114,672, and other operating costs of $70,148 resulting in a net loss of $1,445,472.
For the six month period ended September 30, 2018, the Company generated revenues of $2,489,362 with cost of revenues of $1,612,229 resulting in a gross profit of $877,133 or 35% of revenues. Operating costs consisted of salaries and administrative fees of $1,009,427, transportation costs of $129,364, travel, accommodation, meals and entertainment costs of $146,816, product development costs of $170,259, sales and marketing costs of $220,084, interest and accretion on the convertible debentures and promissory note of $596,654; professional fees of $120,010, other operating costs of $148,099 as well as non-cash items of $181,709 for share-based compensation expense and depreciation of $229,362 resulting in a net loss of $2,074,651.
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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, 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
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 “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, such as the regulations and requirements in different jurisdictions. 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. © 2018 GreenPower Motor Company Inc. All rights reserved.