Legend Power Systems Reports Q3 F2023 Financial Results
- Late-stage deals could bring over $10 million in new potential bookings
- Completed a non-brokered private placement for gross proceeds of $2.5 million
- Gross margin in Q3 F2023 was 22%, compared to 5% in Q3 F2022
- Revenue decreased from $1.02 million in Q3 F2022 to $470k in Q3 F2023
- Adjusted EBITDA was negative $883,821
- Net loss for Q3 F2023 was $1,018,568
Conference Call Scheduled for 11am EST
Vancouver, British Columbia--(Newsfile Corp. - August 25, 2023) - Legend Power Systems Inc. (TSXV: LPS) (OTCQB: LPSIF) ("Legend Power" or the "Company"), a global leader in commercial electrical system solutions, reports its financial results for the three months ended June 30, 2023 ("Q3 F2023"). The Company has also scheduled a conference call to provide a business update to discuss its Q3 F2023 financial results today at 11:00 AM ET (8:00 AM PT) (details below). The call will be hosted by Randy Buchamer, President & Chief Executive Officer. A complete set of Financial Statements and Management's Discussion & Analysis has been filed at www.sedarplus.ca. All dollar figures are quoted in Canadian dollars.
Q3 F2023 Highlights
- Revenue of
$470 thousand versus$1.02 million in Q3 F2022 - Adjusted EBITDA loss of
$884 thousand versus a$1.24 million loss in Q3 F2022 - Net loss of
$1 million versus a$1.49 million loss in Q3 F2022 - Cash of
$522 thousand , no debt, and$2.22 million in working capital at June 30, 2023
Subsequent Events
- The Company completed a non-brokered private placement for gross proceeds of
$2,541,080. You can find the press release here.
"Our focus this quarter remained around advancing sales opportunities and we currently have new late-stage large deals with very strong financial viability," said Randy Buchamer, Legend Power Systems CEO. "The handful of late-stage deals could bring over
Q3 F2023 Operational Highlights
- Green Proving Ground program for the United States General Services Administration, which operates approximately 1,800 federally owned buildings is proceeding well. The deployment and evaluation schedule is well under way. Two initial sites have been selected and installations are expected in late 2023.
- The Company's channel sales team has grown reseller and ESCO relationships, furthering adoption of both Insights, Power Impact Reports and SmartGATE solutions. Target markets and reseller channels continue to respond positively to Legend's solutions and combined opportunities. The Company is engaged with more than 50 organizations interested in becoming Legend selling partners in the U.S. and Canada.
- In Q3, strategic direct sales efforts continued to grow with system bookings and new sales opportunities in the pipeline. The current sales booking pipeline is healthy and in-line to support booking target expectations. Continued progress on installation of Gen3 SmartGATE and positive Measurement and Verification Reports is expected to enable booking growth to expand.
- Preparation efforts continue for scaling production to handle increasing demand. Both local and international contractors have provided sub-assembly outsourcing proposals, and internally, plans have been established for increased product assembly and test capacity. Manufacturing Engineering and Production staff are undergoing reviews of existing procedures, documentation, and data collection requirements to further streamline production and error-proof the process. Significant improvements have been realized in material requirements planning, inventory management and production planning tools and processes.
Q3 F2023 Financial Highlights
Financial summary for the three and nine months ended June 30, 2023 and 2022
| Three months ended June 30, | Nine months ended June 30, | |||||
| (Cdn$, unless noted otherwise) | 2023 | 2022 | Change | 2023 | 2022 | Change |
| Revenue | 470,310 | 1,026,412 | (54)% | 946,979 | 1,539,205 | (38)% |
| Cost of sales | 366,307 | 977,765 | (63)% | 747,124 | 1,395,749 | (46)% |
| Gross margin1 | 104,003 | 48,647 | 199,855 | 143,456 | ||
| Gross margin %1 | ||||||
| Operating expenses | 1,128,015 | 1,542,575 | (27)% | 3,429,420 | 4,398,528 | (22)% |
| Adjusted EBITDA2 | (883,821) | (1,237,352) | (33)% | (2,769,341) | (3,560,766) | (22)% |
| Net loss | (1,018,568) | (1,492,181) | (32)% | (3,212,173) | (4,201,931) | (24)% |
1 Gross margin is based on a blend of both equipment and installation revenue.
2 Adjusted EBITDA is a non-IFRS financial measure. See EBDITA Reconciliation for details.
Revenue for the three months ended June 30, 2023, was
Gross margin in the third quarter of fiscal 2023 was
The Company's operating expenses for the third quarter of fiscal 2023 were
Adjusted EBITDA for the third quarter of fiscal 2023 was negative
Net loss for the third quarter of fiscal 2023 was
CONFERENCE CALL DETAILS:
| DATE: | Friday, August 25, 2023 |
| TIME: | 11:00 AM ET (8:00 AM PT) |
| DIAL-IN NUMBERS: | North America Toll Free Dial-in Number (888) 886-7786 |
| ONLINE LISTENING | Register for Webcast Participation |
| CONFERENCE ID: | 48101200 |
| REPLAY: | Available at: https://legendpower.com/ |
About Legend Power Systems Inc.
Legend Power Systems Inc. (https://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:
Jonathan Lansky, Director
+1 416 417 7664
lansky.j@icloud.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.sedarplus.ca. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/178442
