Legend Power(R) Reports Q1 2021 Financial Results
Legend Power Systems Inc. (TSXV:LPS)(OTCQB:LPSIF) reported Q1 2021 financial results, revealing a revenue decline to $766k from $1 million in Q1 2020. Despite this, gross profit increased to $202k compared to $137k in the previous year, indicating improved efficiency. The net loss was reduced to $874k from $1.48 million. Operating expenses also decreased significantly by 34% to $1.08 million. The company continues to build its pipeline with over 50 new SmartGATE Insights engagements. Cash reserves stand at $2.04 million with no debt.
- Gross profit increased to $202k from $137k in Q1 2020.
- Net loss reduced to $874k from $1.48 million in Q1 2020.
- Operating expenses decreased by 34% to $1.08 million.
- Revenue declined by 24% to $766k from $1 million in Q1 2020.
- Adjusted EBITDA loss remains high at $678k.
VANCOUVER, BC / ACCESSWIRE / March 1, 2021 / Legend Power® Systems Inc. (TSXV:LPS)(OTCQB:LPSIF) ("Legend Power" or the "Company"), a global leader in commercial electrical system solutions, today reported its Q1 2021 financial results for the three months ended December 31, 2020. The Company has also scheduled a conference call to provide a business update and discuss its Q1 2021 financial results for Tuesday, March 2, 2021 at 11:00AM ET (8:00AM PT). The call will be hosted by Randy Buchamer, President & Chief Executive Officer and Steve Vanry, Chief Financial Officer (details below). A complete set of Financial Statements and Management's Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.
Financial Highlights for the quarter ending December 31, 2020 (Q1 2021)
- Revenue of
$766 k versus$1.00 million reported in Q1 2020; - Gross profit of
$202 k compared to$137 k in Q1 2020; - Adjusted EBITDA loss of
$678 k versus a$1.33 million loss in Q1 2020; - Net loss of
$874 k versus the$1.48 million loss in Q1 2020; and - Cash of
$2.04 million , no debt, and$2.99 million in working capital at December 31, 2020.
Quarterly Update
Legend's pipeline of opportunities - both with prospective and existing clients - continued to grow through the first quarter of fiscal 2021 ending December 31, 2020. The Company gained more access to senior decision-makers, especially those concerned with tenant safety and reducing costs by optimizing incoming grid power. The increase in commitments from building owners continues to scale. Some of these commitments include multi-building assessments with our SmartGATE Insights™ service and others for full SmartGATE Platforms. This resurgence in activity has been broad-based and includes engagements in the multi-family, schools, commercial office and ESCO verticals. During the first quarter of fiscal 2021, these resulted in:
- Verbal commitments for over 50 new SmartGATE Insights engagements for the first three months of calendar 2021;
- The first phase of SmartGATE Insights Service engagements resulted in customer commitments for SmartGATE platform purchases and follow-on requests to analyze more buildings;
- The Region of Peel in Ontario, Canada invested in SmartGATE platforms for four of its low-income multi-residential buildings;
- A joint project with the ESCO of a Fortune 100 Global Corporation entered the optimization and testing stage;
- Channel sales partner Haven Consultants International purchased an additional 3 SmartGATE platforms, and;
- An Ontario-based College purchased 2 SmartGATE™ platforms, becoming the 10th leading college or university to deploy SmartGATE.
Financial summary for the three months ended December 31, 2020 and 2019
Three months ended December 31, | ||||||||||||
(Cdn$, unless noted otherwise) | 2020 | 2019 | Change | |||||||||
Revenue | 766,226 | 1,003,329 | (24 | )% | ||||||||
Cost of sales | 564,180 | 866,237 | (35 | )% | ||||||||
Gross margin1 | 202,046 | 137,092 | 47 | % | ||||||||
Gross margin %1 | 26 | % | 14 | % | 12 | % | ||||||
Operating expenses | 1,077,392 | 1,620,431 | (34 | )% | ||||||||
Adjusted EBITDA2 | (677,607 | ) | (1,325,161 | ) | 49 | % | ||||||
Net loss | (873,792 | ) | (1,482,198 | ) | (41 | )% |
1 Gross margin is based on a blend of both equipment and installation revenue.
2 Adjusted EBITDA is a non-IFRS financial measure.
Revenue for the first quarter of 2021 was
Gross margin in the first quarter of fiscal 2021 was
The Company's operating expenses for the first quarter of fiscal 2021 were
Adjusted EBITDA for the first quarter of fiscal 2021 was negative
Net loss for the first quarter of fiscal 2021 was
CONFERENCE CALL DETAILS:
DATE: | Tuesday, March 2, 2021 |
TIME: | 11:00AM ET (8:00AM PT) |
DIAL-IN NUMBER: | North America Toll Free Dial-in Number (877) 201-0168 International Dial-in Number - (647) 788-4901 |
ONLINE LISTENING | |
CONFERENCE ID: | 3871453 |
REPLAY: | Available at: www.legendpower.com |
About Legend Power® Systems Inc.
Legend Power® Systems Inc. (www.legendpower.com) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend Power's proven solutions support proactive executive decision-making in a complex and volatile business and energy environment.
The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend Power's unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.
For further information, please contact:
Steve Vanry, CFO
+ 1 604 671 9522
svanry@legendpower.com
Sean Peasgood, Investor Relations
+ 1 647 503 1054
sean@sophiccapital.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This Press Release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results
to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.
SOURCE: Legend Power Systems Inc.
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