Vancouver, Canada August 26, 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 first quarter ended June 30, 2019.
Quarterly and Recent Highlights:
- Reported revenue of $2.4 million for the quarter and a gross profit of $0.7 million – representing a gross margin of 30%
- During the quarter the Company delivered three EV Stars to Sacramento Regional Transit and received a follow-on order for three EV Star Plus buses with wheelchair lifts and other ADA features. The Company also delivered one EV350 to Porterville and two EV Stars to San Diego Airport Parking Company
- Finished the first quarter with $7.9 million of inventory due to a record level of production with 88 all-electric buses in various stages of production or in finished goods
- Improved working capital to $2.8 million at the end of the quarter
- In April filed the initial application to uplist to the NASDAQ stock exchange
- In May closed an equity financing for gross proceeds of $4 million
- In July delivered the first ten EV Stars to Creative Bus Sales, the largest bus distributor in the US, delivered the first three EV Stars to Green Commuter, and delivered an EV Star to Sacramento Regional Transit
- In August GreenPower delivered another five all-electric buses
“I am pleased to report that GreenPower had a record number of 88 all-electric buses in production at the end of the quarter,” said Fraser Atkinson, Chairman and CEO of GreenPower Motor Company. “The Company continued to execute on its previously stated goals during the quarter as we increased the utilization of our manufacturing facilities in California, raised $4 million in an equity financing to fuel top line growth, and significantly increased production. Moving forward, we remain optimistic about the company’s prospects as we are focused on ramping up vehicle deliveries, rapidly scaling the business, improving our financial position and continue to work towards uplisting to the NASDAQ stock exchange later this year.”
Results for the Quarter Ended June 30, 2019
The Company reported quarterly revenue of over $2.4 million versus $2.5 million for the prior-year period. Revenue from vehicle sales and vehicle leases was generated from the sale of one EV 350 and five EV Stars, two of which were accounted for as finance leases, as well as revenue from the sale of vehicle chargers and other sources. Gross profit for the quarter was $0.7 million or 30% of revenues. The Company reported a consolidated net loss for the quarter of $1.3 million or $0.01 per share.
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.greenpowermotor.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 ramp up vehicle deliveries, rapidly scale our business, improve our financial prospects and continue to work towards uplisting to the NASDAQ stock exchange. 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 government grants that reduce the cost of purchasing electric vehicles will be reduced, cancelled, or delayed; 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.
