VANCOUVER, BC, Aug. 15,
2022 /CNW/ -- GreenPower Motor Company
Inc. (NASDAQ: GP) (TSXV: GPV) ("GreenPower" or the "Company"),
a leading manufacturer and distributor of zero-emission,
electric-powered, medium and heavy-duty vehicles, today announced
the results for its quarter ended June 30,
2022.
"We've achieved a number of milestones across various segments
of our business including the first deliveries of our EV Star Cab
and Chassis (EV Star CC) to Workhorse in July, expansion of the
dealer network for our all-electric school buses, the acquisition
of Lion Truck Body and entering into a Contract of Lease-Purchase
for the facility in West
Virginia," said Fraser
Atkinson, CEO of GreenPower. "Our investment in
inventory supports the deliveries we're making this summer and
through this fall of our all-electric school buses, cargo vans and
other EV Star models in addition to the build-up for the Workhorse
contract."
Financial Highlights for the quarter:
- Recorded revenues of $3,851,105
for the current quarter an increase of 29% over the revenue of
$2,980,086 for the same quarter last
year,
- Gross profit of 28.8% of revenue,
- Cash including restricted cash of $5.4
million at the end of the period,
- Inventory of $39.7 million
including finished goods of $24.6
million, and
- Working capital at the end of the quarter of $28.3 million.
Acquisition of Lion Truck Body:
During the quarter, GreenPower was engaged in the due diligence
and negotiation of the acquisition of Lion Truck Body, a truck body
manufacturer located near the port of Long Beach in Los
Angeles. Lion Truck Body manufactures and instals a complete
line of truck bodies including dry-freight aluminum, refrigerated
box, aluminum beds, stake bed, flat bed and service body. With the
successful closing of the acquisition in July, GreenPower is
vertically integrating an important component of its supply chain,
as the company is now able to send EV Star CCs to Lion Truck Body
for body installation for customers, which captures another revenue
stream that is currently being sent to third-party body
manufacturers.
"The combination of GreenPower's EV expertise and the advanced
body building experience of Lion Truck Body gives GreenPower a
competitive advantage with shortened lead time as well as truck
bodies that are optimized for EV Trucks. We've collaborated
with Lion Truck Body to develop our new EV Star Cargo+ refrigerated
truck, which is slated for delivery to our first customer this
quarter with more payload, longer range and lower cost factor than
any competitive EV refrigerated truck in its class on the market"
stated Brendan Riley, President of
GreenPower.
Supply Agreement with Workhorse:
GreenPower began manufacturing its first few tranches of EV Star
CC's for the 1,500 unit purchase and sale contract with Workhorse.
During the quarter, GreenPower coordinated with its suppliers for
the delivery of key components and initiated production of 100
vehicle tranches of EV Star CC's. By the end of the quarter the
first 100 EV Star CC's were near completion, the next tranche had
entered production and key components for additional tranches had
been ordered. The first deliveries to Workhorse began in July, with
follow-on deliveries made in August. GreenPower's team is working
closely with Workhorse to assist with the integration on the EV
Star CC's.
Dealer Network Expansion for GreenPower's School
Buses:
GreenPower presently has more than 40 Type D BEAST and Type A
Nano BEAST school buses in finished goods inventory with
substantially all of these expected to be sold and delivered by the
end of this calendar year. GreenPower has ongoing discussions
with dealers in the Mid-West, North-East and Pacific North West.
GreenPower anticipates that initial deliveries across its dealer
network will expand this sales channel, and better position the
company to leverage significant local, state and federal funding
for all-electric school buses.
EV Star Cargo
vans:
During the quarter, GreenPower delivered its first five 22'
cargo vans. Presently, GreenPower has approximately 40 EV
Star Cargos in finished goods inventory and customers that have
approved vouchers from the California Air Resource Board HVIP
program or the New Jersey ZIP program for substantially all of
these.
West Virginia Facility:
During the quarter, GreenPower entered into a lease-purchase
agreement with the state for an 80,000 square foot facility on six
acres of land to manufacture all-electric school buses for the U.S.
market. As part of this partnership the state will provide worker
training and hiring support, up to $3.5
million in employment incentive payments in exchange for
meeting hiring targets and has agreed to purchase up to
$15 million of GreenPower vehicles
produced at the facility.
Results for the three months ended June 30, 2022
For the three-month period ended June 30,
2022 the Company recorded revenues of $3,851,105 and cost of sales of $2,743,431 generating a gross profit of
$1,107,674 or 28.8% of revenues.
Revenue was generated from the sale of 3 BEAST Type D all-electric
school buses, 2 EV Star Plus, 1 EV Star Cargo+, 5 EV Star 22-foot
cargo, 6 EV Stars and 4 EV Star Cab and Chassis, as well as revenue
from finance and operating leases and other sources. Operating
costs consisted of administrative fees of $1,754,768 relating to salaries, project
management, accounting, and administrative services; transportation
costs of $62,035 which relate 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 $162,605
related to travel for project management, demonstration of company
products, and trade shows; product development costs of
$245,118; sales and marketing costs
of $366,871; insurance expense of
$350,534; professional fees of
$312,840 consisting of legal and
audit fees; and office expense of $144,484 consisting of rent and other office
expenses, as well as non-cash expenses including $1,709,175 of share-based compensation expense
and depreciation of $195,608,
generating a loss from operations before interest, accretion and
foreign exchange of $4,225,321.
Interest and accretion of $121,936
and a foreign exchange gain of $1,072
resulted in a loss for the period of $4,346,185.
Media and Investor Contacts:
Fraser Atkinson, CEO
(604) 220-8048
Michael Sieffert, CFO
(604) 563-4144
Brendan Riley, President
(510) 910-3377
Mike Cole, IR
(949) 444-1341
Allie Potter
Skyya PR for GreenPower
(218) 766-8856
allie@skyya.com
About GreenPower Motor Company
GreenPower
designs, builds and distributes a full suite of high-floor and
low-floor all-electric medium and heavy-duty vehicles, including
transit buses, school buses, shuttles, cargo van, and a cab and
chassis. GreenPower employs a clean-sheet design to manufacture
all-electric vehicles that are purpose built to be battery powered
with zero emissions while integrating global suppliers for key
components. 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. GreenPower was founded in Vancouver, Canada with primary operational
facilities in southern California.
Listed on the Toronto exchange
since November 2015, GreenPower
completed its U.S. IPO and NASDAQ listing in August 2020. 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 "upon", "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. 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 expressed in U.S. dollars
© 2022 GreenPower Motor Company Inc. All rights
reserved.
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SOURCE GreenPower Motor Company