GreenPower Reports Revenue of $39.3 Million for Fiscal 2024

Rhea-AI Summary

GreenPower Motor Company (Nasdaq: GP) reported fiscal 2024 revenue of $39.3 million, a slight decrease from $39.7 million in the prior year. Gross profit stood at $5.36 million with a cost of sales totaling $33.91 million.

The company expanded its manufacturing capabilities in California and West Virginia, delivering its first all-electric school buses from the new West Virginia facility. GreenPower sold 222 electric vehicles, including various models of the EV Star and school buses. The company also secured a $5 million term loan and entered new markets through an expanded dealer network.

Significant investments were made in the GP Truck Body division, developing new truck designs like the EV Star Utility Truck and EV Star REEFERX. GreenPower aims to grow school bus deliveries in the current fiscal year based on existing backlog and demand.

The company earned the “2023 Green Car Product of Excellence” for its EV Star Cab & Chassis and completed a nine-month school bus pilot program in West Virginia.

Positive

• Generated $5.36 million in gross profit.
• Delivered 222 all-electric vehicles in fiscal 2024.
• Expanded manufacturing capabilities in California and West Virginia.
• Entered new markets including Arizona, Colorado, North Carolina, and Oregon.
• Secured a $5 million term loan to finance production.
• Won the “2023 Green Car Product of Excellence” award.

Negative

• Revenue decreased slightly from $39.7 million to $39.3 million.

Financial Analyst

GreenPower Motor Company's revenue for fiscal 2024 was $39.3 million, a slight decrease from the previous year. Despite this, the company maintained a gross profit of $5.36 million. This stability in gross profit, despite revenue pressures, suggests effective cost management, with cost of sales amounting to $33.91 million. The revenue figures indicate that while the company hasn't achieved growth, it managed to sustain its financial health.

However, the term loan facility and the employment incentive payments from the state of West Virginia are indicators of substantial reliance on external financing and state incentives. This could be a double-edged sword; while it provides necessary capital, it also signifies potential future liabilities and dependence on continued external support.

Retail investors should weigh GreenPower's ability to innovate with their financial resilience. The lack of revenue growth might be concerning, but maintained gross profit margins and external support could reassure stakeholders about the company's strategic direction.

Market Research Analyst

GreenPower’s expansion into new state markets, demonstrated by their first sales in Arizona, Colorado, North Carolina and Oregon, highlights the company’s strategy to diversify their revenue base geographically. This diversification could help mitigate risks associated with market saturation or regional economic downturns.

The successful completion of the first Type A Nano BEAST school buses in West Virginia and the anticipated growth in school bus deliveries indicate strong demand within the educational sector. This is a critical market for GreenPower and continued expansion could drive significant revenue growth in the future.

GreenPower’s ability to upfit and deliver various truck body designs, including the EV Star Utility Truck and EV Star REEFERX, shows their commitment to product innovation and market adaptation. Such flexibility is valuable in the ever-evolving electric vehicle market and could open new revenue streams.

Retail investors should recognize that GreenPower's market reach is expanding and its diverse product offerings can cater to a broad range of customer needs, positioning the company well for future growth.

Tech Expert

The successful build-out of the West Virginia manufacturing facility and the production of all-electric school buses there is a substantial operational milestone. This enables GreenPower to ramp up production efficiently, potentially lowering per-unit costs through economies of scale.

The development of new truck body designs, such as the EV Star Utility Truck and EV Star REEFERX, showcases GreenPower’s engineering prowess and adaptability. These innovations not only expand their product portfolio but also demonstrate their ability to meet diverse market needs.

Given the industry trend towards zero-emission vehicles, GreenPower’s technological advancements position them well. However, it's important to monitor whether their production capabilities can keep pace with demand and if their new product lines gain significant market traction.

Conference Call Scheduled for July 1, 2024 at 9:30 a.m. EDT/6:30 a.m. PDT

VANCOUVER, BC, June 28, 2024 /PRNewswire/ -- GreenPower Motor Company Inc. (Nasdaq: GP) (TSXV: GPV) ("GreenPower" and the "Company"), a leading manufacturer and distributor of purpose-built, all-electric, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today reported its results for the year ended March 31, 2024.

"Despite significant headwinds in the EV sector, GreenPower has made substantial strides with its plan to transition to a production plan driven by customer orders," said Fraser Atkinson, GreenPower Chairman and CEO. "This transition has required expanding our manufacturing capabilities both in California and West Virginia, as well as investments in GP Truck Body, and obtaining sources of production funding."

During the year, the Company completed the build-out of the West Virginia manufacturing facility and delivered the first all-electric school buses produced at the facility with the first deliveries of four Nano BEAST and Nano BEAST Access school buses in December 2023. "The Company enjoyed a four-fold increase in the number of GreenPower school buses sold in the year and is currently manufacturing Type D BEAST and Type A Nano BEAST school buses at the West Virginia facility pursuant to customer orders and anticipates that school bus deliveries will continue to grow in the current fiscal year based on existing backlog, demand and manufacturing activity," said Brendan Riley, GreenPower President.

GreenPower made significant investment with its in-house truck body division, GP Truck Body. The focus has been to improve the delivery time of upfitting EV Star Cab & Chassis with truck bodies for customers, providing a seamless one-stop-shop opportunity. Through GP Truck Body, GreenPower has continued to develop new truck body designs, including the EV Star Utility Truck and EV Star REEFER^X. "These new designs open up exciting new markets for GreenPower and demonstrate the flexibility of the EV Star platform," said Riley.

Fiscal Year 2024 Highlights:

• Generated revenues of $39.3 million in the 2024 fiscal year compared to $39.7 million in the prior year. Cost of sales of $33,914,237 yielding a gross profit of $5,357,602.
• Delivered 222 GreenPower all-electric, purpose-built, zero-emission vehicles consisting of 122 EV Star Cab & Chassis, 18 EV Star Cargo, 6 EV Star Cargo Plus, 32 EV Star Passenger Vans, 31 Type D BEAST school buses, 10 Type A Nano BEAST school buses and 2 EV250s.
• Manufactured and delivered the first four Type A Nano BEAST and Nano BEAST Access school buses manufactured in West Virginia and commenced production of the first Type D BEAST school buses in the facility in South Charleston.
• Expanded its dealer network during the year and through the dealer channel was able to generate its first sales in new markets, including Arizona, Colorado, North Carolina and Oregon.
• Entered into a revolving $5 million term loan facility with EDC to finance the production of GreenPower all-electric vehicles pursuant to existing customer orders. EDC is also providing a guarantee on Letters of Credit for up to $5 million.
• Completed a nine-month school bus pilot program with the state of West Virginia covering 18 counties, representing more than one-third of the school districts in the state with more than 100 professional drivers.
• Won the "2023 Green Car Product of Excellence" for the EV Star Cab & Chassis. Green Car Journal said the award honors commercial vehicles that feature greater environmental performance through higher efficiency, the integration of advanced technology and electronics and innovative powertrains that achieve decarbonization goals with low or no carbon emissions.

During the fiscal year GreenPower commenced monthly lease payments on a lease/purchase agreement with the state of West Virginia for a production facility located in South Charleston, West Virginia with more than six acres and an 80,000 square foot building. Lease payments totalled $600,000 for the year and will be applied in full to the purchase of the property. The state will also provide up to $3.5 million in employment incentive payments to GreenPower for jobs created in the state as production increases over time. Title to the property will be transferred to GreenPower once total lease and incentive payments reach $6.7 million.

For additional information on the results of operations for the year ended March 31, 2024 review the audited financial statements and related reports posted on GreenPower's website as well as on www.sedar.com or filed on EDGAR.

Conference Call Information

Date: Monday July 1, 2024 
Time: 6:30 a.m. PDT / 9:30 a.m. EDT

Participant dial-in: (US) 1-844-739-3982 (Canada); 1-866-605-3852; (International) 1-412-317-5718. Ask to be joined into the GreenPower Motor Company Inc. conference call.

Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=QRlnUqlT 

Replay: (US) 1-877-344-7529; (Canada) 1-855-669-9658; (International) 1-412-317-0088

Replay access code: 3507472

For further information contact

Fraser Atkinson, CEO
(604) 220-8048

Brendan Riley, President
(510) 910-3377

Michael Sieffert, CFO
(604) 563-4144

About GreenPower Motor Company Inc.
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. 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. ©2024 GreenPower Motor Company Inc. All rights reserved.

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SOURCE GreenPower Motor Company

FAQ

What were GreenPower Motor's revenues for fiscal 2024?

GreenPower Motor reported revenues of $39.3 million for fiscal 2024.

What is the gross profit for GP in fiscal 2024?

GreenPower Motor reported a gross profit of $5.36 million.

How many electric vehicles did GreenPower deliver in fiscal 2024?

GreenPower delivered 222 all-electric vehicles in fiscal 2024.

What new markets did GreenPower enter in fiscal 2024?

GreenPower entered new markets including Arizona, Colorado, North Carolina, and Oregon.

What was the amount of the term loan secured by GreenPower?

GreenPower secured a $5 million term loan.

What award did GreenPower's EV Star Cab & Chassis win?

The EV Star Cab & Chassis won the “2023 Green Car Product of Excellence” award.