GreenPower Reports Record Quarterly Deliveries of 35 All-Electric Buses Generating Revenue of $5 million

VANCOUVER, BC / ACCESSWIRE / February 27, 2020 / GreenPower Motor Company Inc. (TSXV:GPV)(OTCQX:GPVRF) ("GreenPower" or the "Company"), a leading designer, manufacturer, and distributer of a diverse line of electric powered buses for the transit, shuttle, tourist and school sectors, today announced results for its third quarter ended December 31, 2019.

Quarterly Highlights:

Sold or leased a record 35 all-electric buses during the period, comprised of 33 EV Stars and two Synapse Type D School buses.
Reported quarterly revenue of $5 million compared to $1.1 million for the same quarter in the previous year, an increase of 350%.
Reported quarterly Adjusted EBITDA loss of $115,741 compared to an Adjusted EBITDA loss of $330,192 in the previous year
Gross profit margin during the quarter was 29.4%, compared to 25.6% in Q2.
For the nine months ended December 31, 2019 the Company generated revenue of $12.9 million compared to $3.6 million for the nine months ended December 31, 2018, an increase of 258%.
Delivered 30 EV Stars to Green Commuter, pursuant to an order for 100 EV Stars that was placed earlier in the year.
Delivered 3 EV Stars to Sacramento Regional Transit being a follow-on order from the 6 EV Stars delivered earlier in the summer.
The Synapse Type D School bus passed the California Highway Patrol certification and received the 292 card.
Currently there are 50 EV Stars in production and another 50 in pre-production.
At December 31, 2019 the Company had received approvals for 85 HVIP voucher requests relating to sales in California, for a total of approximately $9 million reserved from the 2019 allocation, subject to final delivery and approval.
Finished the quarter with inventory of $4.8 million, including $2.5 million of finished goods and $2.3 million of work in process and accounts receivable of $5.7 million.

"In the last two quarters the Company has delivered 62 all-electric buses which is substantially more than we had delivered up to that point. Given our current strong order book and nation-wide sales reach, we are well positioned to continue to deliver robust growth going forward," said Fraser Atkinson, Chairman and CEO of GreenPower Motor Company. "We are pursuing various initiatives to maximize our operating efficiencies, expand margins, and leverage our position in the market to meet increasing demand across North America. In addition, we continue to work towards uplisting to the NASDAQ stock exchange, which, we believe, will be of benefit to our shareholders."

Results for the Third Quarter Ended December 31, 2019

For the three-month period ended December 31, 2019 the Company recorded revenues of $4,977,548 compared to $1,106,530 for the three months ended December 31, 2018 an increase of 350%. Cost of sales for the quarter amounted to $3,511,990 yielding a gross profit of $1,465,558 or 29.4% of revenues compared to a gross profit of $590,309 for the same quarter in the previous year. Operating costs consisted of administrative fees of $1,055,706, transportation costs of $58,863; travel, accommodation, meals and entertainment costs of $52,792, product development costs of $348,583; sales and marketing costs of $109,731; professional fees of $87,953 and office expense of $41,549, as well as non-cash expenses including $34,885 of share-based compensation expense and depreciation of $157,970. Interest and accretion on the line of credit, convertible debentures and promissory notes totalled $574,031, and a foreign exchange gain of $418 resulted in a loss for the period of $1,056,087 or $0.01 per share. Non-cash expenses consisting of depreciation, accretion and accrued interest, share-based compensation, warranty accrual and amortization of deferred financing fees totaled $675,755 in the three-month period.

Results for the Nine Months Ended December 31, 2019

For the nine-month period ended December 31, 2019 the Company recorded revenues of $12,858,002 compared to $3,595,892 for the nine months ended December 31, 2018 an increase of 258%. Cost of sales for the period amounted to $9,276,910 generating a gross profit of $3,581,092 or 27.9% of revenues. Operating costs consisted of administrative fees of $2,505,075, transportation costs of $177,727, travel, accommodation, meals and entertainment costs of $240,542, product development costs of $864,309; sales and marketing costs of $256,211; professional fees of $201,585 and office expense of $135,157 as well as non-cash expenses including $181,454 of share-based compensation expense and depreciation of $462,217. Interest and accretion on the line of credit, convertible debentures and promissory notes totalled $1,584,685, and a foreign exchange loss of $4,069 resulted in a loss for the period of $3,031,939 or $0.03 per share.

Non IFRS Financial Measures

"Adjusted EBITDA" reflects net income before interest, taxes, share-based payments, depreciation and amortization, and warranty accrual. Adjusted EBITDA is a measure used by analysts and investors as an indicator of operating cash flow since it excludes the impact of movements in working capital items, non-cash charges and financing costs. Therefore, Adjusted EBITDA gives the investor information as to the cash generated from the operations of a business. However, Adjusted EBITDA is not a measure of financial performance under IFRS and should not be considered a substitute for other financial measures of performance. Adjusted EBITDA as calculated by GreenPower may not be comparable to Adjusted EBITDA as calculated and reported by other companies.

 
For the three months ended
 
 
For the nine months ended
 

Adjusted EBITDA Reconciliation

 
December 31,
 
 
December 31,
 
 
December 31,
 
 
December 31,
 

 
2019
 
 
2018
 
 
2019
 
 
2018
 

Net loss for the period

 
$
(1,056,087
)
 
$
(915,734
)
 
$
(3,031,939
)
 
$
(2,990,385
)

Plus:

Depreciation

 
 
157,970
 
 
 
114,239
 
 
 
462,217
 
 
 
343,601
 

Interest and accretion

 
 
574,031
 
 
 
375,601
 
 
 
1,584,685
 
 
 
972,255
 

Share-based payments

 
 
34,885
 
 
 
57,282
 
 
 
181,454
 
 
 
239,991
 

Warranty Accrual

 
 
173,460
 
 
 
38,420
 
 
 
400,878
 
 
 
259,957
 

Adjusted EBITDA

 
$
(115,741
)
 
$
(330,192
)
 
$
(402,705
)
 
$
(1,174,581
)

(1) Please refer to Non IFRS Financial Measures for a description of Adjusted EBITDA.

Conference Call

A conference call will be held on February 27th, 2020, at 1:30 p.m. PT/4:30 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 1-877-270-2148 (US); 1-866-605-3852 (Canada); or 1-412-902-6510 (International) 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

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 is well. positioned to continue to deliver robust growth going forward, that the Company will maximize operating efficiencies, expand margins and leverage its position in the market, that the Company will list its shares on NASDAQ and that such listing will be of great benefit to the Company's shareholders, that the Company will receive approval for its 118 HVIP voucher request work $12.3 million. 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, 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; 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.

GREENPOWER MOTOR COMPANY INC.
Consolidated Condensed Interim Statements of Financial Position
As at September 30, 2019 and March 31, 2019
(Expressed in US Dollars)
(Unaudited – Prepared by Management)

 
December 31,
2019
 
 
March 31,
2019
 

 
(Unaudited)
 
 
(Audited)
 

Assets

Current

Cash and restricted cash

 
$
244,176
 
 
$
198,920
 

Accounts receivable

 
 
5,704,155
 
 
 
1,394,689
 

GST receivable

 
 
73,055
 
 
 
99,176
 

Current portion of finance lease receivable

 
 
47,681
 
 
 
21,101
 

Inventory

 
 
4,836,324
 
 
 
5,157,918
 

Prepaids & deposits

 
 
50,376
 
 
 
59,503
 

 
 
10,955,767
 
 
 
6,931,307
 

Non-current

Promissory note receivable

 
 
639,131
 
 
 
593,547
 

Finance lease receivable

 
 
1,585,085
 
 
 
303,802
 

Right of use assets

 
 
686,444
 
 
 
699,574
 

Property and equipment

 
 
1,723,337
 
 
 
1,692,127
 

Non current portion of prepaids & deposits

 
 
46,692
 
 
 
46,692
 

Deferred financing fees

 
 
1,175,377
 
 
 
1,643,249
 

Other assets

 
 
1
 
 
 
1
 

 
$
16,811,834
 
 
$
11,910,299
 

Liabilities

Current liabilities

Line of credit

 
$
4,974,045
 
 
$
4,419,907
 

Accounts payable & accrued liabilities

 
 
2,445,930
 
 
 
731,223
 

Note payable

 
 
284,601
 
 
 
268,946
 

Deposits from customers

 
 
132,197
 
 
 
234,177
 

Deferred revenue

 
 
303,354
 
 
 
589,727
 

Current portion of warranty liability

 
 
121,944
 
 
 
84,707
 

Current portion of promissory note payable

 
 
57,750
 
 
 
56,895
 

Current portion of lease liabilities

 
 
266,465
 
 
 
194,829
 

Current portion of loans payable to related parties

 
 
50,000
 
 
 
506,072
 

 
 
8,636,286
 
 
 
7,086,483
 

Non-current

Loans payable to related parties

 
 
2,796,024
 
 
 
992,835
 

Convertible debentures

 
 
3,091,701
 
 
 
2,737,054
 

Lease liabilities

 
 
457,150
 
 
 
523,459
 

Warranty liability

 
 
593,697
 
 
 
251,864
 

Promissory note payable

 
 
360,776
 
 
 
404,240
 

 
 
15,935,634
 
 
 
11,995,935
 

Equity (Deficit)

Share capital

 
 
16,753,464
 
 
 
12,984,796
 

Equity portion of convertible debentures

 
 
379,506
 
 
 
383,094
 

Reserves

 
 
5,575,269
 
 
 
5,342,510
 

Accumulated other comprehensive loss

 
 
(93,432
)
 
 
(89,368
)

Accumulated deficit

 
 
(21,738,607
)
 
 
(18,706,668
)

 
 
876,200
 
 
 
(85,636
)

 
$
16,811,834
 
 
$
11,910,299
 

GREENPOWER MOTOR COMPANY INC.
Consolidated Condensed Interim Statements of Operations and Comprehensive Loss
For the Three and Six Month Ended September 30, 2019 and 2018
(Expressed in US Dollars)
(Unaudited – Prepared by Management)

 
For the three months ended
 
 
For the six months ended
 

 
December 31,
 
 
December 31,
 
 
December 31,
 
 
December 31,
 

 
2019
 
 
2018
 
 
2019
 
 
2018
 

Revenue

 
$
4,977,548
 
 
$
1,106,530
 
 
$
12,858,002
 
 
$
3,595,892
 

Cost of Sales

 
 
3,511,990
 
 
 
516,221
 
 
 
9,276,910
 
 
 
2,128,450
 

Gross Profit

 
 
1,465,558
 
 
 
590,309
 
 
 
3,581,092
 
 
 
1,467,442
 

Administrative fees

 
 
1,055,706
 
 
 
516,432
 
 
 
2,505,075
 
 
 
1,525,859
 

Depreciation

 
 
157,970
 
 
 
114,239
 
 
 
462,217
 
 
 
343,601
 

Product development costs

 
 
348,583
 
 
 
108,157
 
 
 
864,309
 
 
 
278,416
 

Office expense

 
 
41,549
 
 
 
87,093
 
 
 
135,157
 
 
 
234,641
 

Professional fees

 
 
87,953
 
 
 
67,872
 
 
 
201,585
 
 
 
187,882
 

Sales and marketing

 
 
109,731
 
 
 
90,618
 
 
 
256,211
 
 
 
310,702
 

Share based payments

 
 
34,885
 
 
 
57,282
 
 
 
181,454
 
 
 
238,991
 

Transportation costs

 
 
58,863
 
 
 
58,780
 
 
 
177,727
 
 
 
188,144
 

Travel, accomodation, meals and entertainment

 
 
52,792
 
 
 
48,281
 
 
 
240,542
 
 
 
195,097
 

Sales, general and administrative costs and other expenses

 
 
1,948,032
 
 
 
1,148,754
 
 
 
5,024,277
 
 
 
3,503,333
 

Loss from operations before interest, accretion and foreign exchange

 
 
(482,474
)
 
 
(558,445
)
 
 
(1,443,185
)
 
 
(2,035,891
)

Interest and accretion

 
 
574,031
 
 
 
375,601
 
 
 
1,584,685
 
 
 
972,255
 

Foreign exchange loss

 
 
(418
)
 
 
(18,312
)
 
 
4,069
 
 
 
(17,761
)

Loss for the period

 
 
(1,056,087
)
 
 
(915,734
)
 
 
(3,031,939
)
 
 
(2,990,385
)

Other comprehensive income/(loss)

Cumulative translation reserve

 
 
(14,932
)
 
 
(20,840
)
 
 
(4,064
)
 
 
(38,863
)

Total comprehensive loss for the period

 
$
(1,071,019
)
 
$
(936,574
)
 
$
(3,036,003
)
 
$
(3,029,248
)

Loss per common share, basic and diluted

 
$
(0.01
)
 
$
(0.01
)
 
$
(0.03
)
 
$
(0.03
)

Weighted average number of common shares, basic and diluted

 
 
108,207,251
 
 
 
93,511,801
 
 
 
105,972,210
 
 
 
93,404,253
 

Please refer to GreenPower's Consolidated Condensed Interim Financial Statements and accompanying notes and Management Discussion and Analysis for the periods ended December 31, 2019 and December 31, 2018 as filed on SEDAR (https://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.

ReleaseID: 578123