Vancouver, Canada February 28, 2019 – GreenPower Motor Company Inc. (TSXV: GPV) (OTCQX: GPVRF) (“GreenPower” or the “Company”) announces results for its third quarter ended December 31, 2018.
Highlights for the third quarter ended December 31, 2018:
- Delivery of two EV Stars to UC San Francisco for shuttle operations.
- San Joaquin Valley Equipment Leasing Inc., a subsidiary of GreenPower, provided lease financing for one EV 250 and two EV350 forty-foot electric buses. GreenPower also received an order for four EV250 thirty-foot all-electric buses from this same customer.
- The Company reported quarterly revenue of $1,106,530 and had $2,471,334 of deferred revenue at the end of the quarter.
- Completed the primary production of EV350 forty-foot low floor transit buses, Synapse Type-D school buses and eight EV Star Min-eBuses.
- At the end of the quarter the Company had inventory of $5,235,989.
- Increased the line of credit to $5 million with BMO Bank of Montreal.
- Awarded a contract for six EV Stars from Sacramento Regional Transit for deployment on its SmaRT Ride service.
- Received an order for three EV Stars from Green Commuter for deployment for Vanpooling and Sharing services.
- Conducted demonstration tours with the EV Star all-electric Min-eBus with transit operators, private tour operators and government organizations in Victoria, Burnaby and Vancouver, Canada.
- Attended the NPA Conference in Las Vegas and provided demonstrations of the EV Star.
- Presented at the Green California Schools and Community College Summit and showcased the Synapse Type D all-electric school bus.
- Completed preparation of a 50,000 square foot leased facility in the City of Porterville, California. This facility is set up as a manufacturing and assembly center with an initial focus on the production of EV Stars and EV Star Plus buses.
For the three-month period ended December 31, 2018 the Company recorded revenues of $1,106,530 and cost of revenues of $516,221 generating a gross profit of $590,309 or 53% of revenues. The revenue was generated from the sale of two EV Star’s and from the sale of three vehicles for which GreenPower provided lease financing: an EV 250 and two EV 350’s. Operating costs for the period amounted to $1,506,043 consisting of administrative fees of $516,432; transportation costs of $58,780; travel, accommodation, meals and entertainment costs of $48,281; product development costs of $108,157; sales and marketing costs of $90,618; interest and accretion of $375,601; professional fees of $67,872; non-cash share-based compensation expense of $57,282 and depreciation of $114,239. The remaining operating costs for the period amounted to $68,781 in general corporate expenses resulting in a consolidated net loss of $915,734 or $0.01 per share. Non-cash expenses consisting of depreciation, share-based compensation, and accretion totaled 298,841 in the three-month period.
For the nine month period ended December 31, 2018, The Company recorded revenues of $3,595,892 which related to income generated from the sale of EV 350s to the City of Porterville, the sale of EV Stars, and from lease transactions with a customer for one EV 250 and 2 EV 350s. Cost of sales amounted to $2,128,450 generating a gross profit of $1,467,442 or 40.8% of revenues. Operating costs consisted of administrative fees of $1,525,859; transportation costs of $188,144; travel, accommodation, meals and entertainment costs of $195,097; product development costs of $278,416; sales and marketing costs of $310,702; interest and accretion of $972,255; professional fees of $187,882; as well as $238,991 of share-based compensation expense and depreciation of $343,601. The remaining operating costs for the period amounted to approximately $216,880 in general corporate expenses resulting in a consolidated net loss of $2,990,385 or $0.03 per share.
For further information contact:
Fraser Atkinson Chairman
(604) 220-8048
Michael Sieffert CFO
(604) 563-4144
Brendan Riley President
(510) 910-3377
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.greenpowermotor.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 “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. © 2019 GreenPower Motor Company Inc. All rights reserved.
