Legend Power Systems Reports Q3 F2024 Financial Results

Rhea-AI Summary

Legend Power Systems Inc. (TSXV: LPS) (OTCQB: LPSIF) reported its Q3 F2024 financial results, showing significant improvements. Revenue increased 122% to $1.04 million compared to Q3 F2023. The company's gross margin improved to 50%, up from 22% in the same quarter last year. Net loss decreased by 53% to $482,386, while Adjusted EBITDA loss improved by 56% to $392,191.

Operational highlights include progress with the City of New York's DCAS IDEA program, advancement in the Green Proving Ground program for the U.S. General Services Administration, and a strong pipeline in government and commercial real estate sectors. The company reported $806,000 in cash, no debt, and $1.5 million in working capital as of June 30, 2024.

Positive

• Revenue increased 122% year-over-year to $1.04 million in Q3 F2024
• Gross margin improved significantly from 22% to 50%
• Net loss decreased by 53% to $482,386
• Adjusted EBITDA loss improved by 56% to $392,191
• Strong cash position with $806,000 and no debt
• $1.5 million in working capital as of June 30, 2024
• Received initial orders and deliveries of Gen3 systems
• Secured LOI for additional $3 million from DOD, bringing order visibility to $5.5 million

Negative

• Despite improvements, the company still reported a net loss of $482,386
• Adjusted EBITDA remains negative at $392,191

Conference Call Scheduled for August 23, 2024 at 11am EST

Vancouver, British Columbia--(Newsfile Corp. - August 22, 2024) - 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, 2024 ("Q3 F2024"). The Company has also scheduled a conference call to provide a business update to discuss its Q3 F2024 financial results tomorrow 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 F2024 Highlights

• Revenue of $1.04 million versus $470 thousand in Q3 F2023
• Adjusted EBITDA loss of $392 thousand versus a $884 thousand loss in Q3 F2023
• Net loss of $482 thousand versus a $1.02 million loss in Q3 F2023
• Cash of $806 thousand, no debt, and $1.5 million in working capital at June 30, 2024

"The third quarter of fiscal 2024 illustrated several key milestones we have been talking about over the last few quarters," said Randy Buchamer, Legend Power Systems CEO. "These include, gross margin improvement to 50% illustrating the power of our financial model, initial orders and deliveries of our Gen3 systems and an LOI for another $3 million from the DOD, bringing order visibility to $5.5 million over the last few quarters. As we work to close additional deals, our pipeline continues to grow. We continue to manage our cash carefully and expect that with deposits and working capital we have the funds necessary to execute on our business model. I look forward to being able to update investors as additional deals are finalized in the coming quarters."

Q3 F2024 Operational Highlights

• Progress continues with the City of New York's Department of Citywide Administrative Services (DCAS) IDEA program. The City of New York has closed its first round of bids for school projects, which includes the SmartGATE solution in the specification and the award is expected to result in bookings in the near future. The first order from DCAS was received during the quarter, with the expectation of additional orders to follow.

• The second site for the Green Proving Ground program for the United States General Services Administration has been selected, which operates approximately 1,800 federally owned buildings is proceeding well. This second unit will be commissioned and shipped in the coming months. The Company continues to build upon key milestones achieved in the prior year, the deployment and evaluation schedule continues to progress.

• The pipeline remains very strong with opportunities into government and commercial real estate including residential, hospitality, big box retail and commercial office. Currently Legend Power Systems is engaged in active sales processes with several of the top firms in the Commercial Real Estate space, with large building portfolios.

Q3 F2024 Financial Highlights

Financial summary for the three and nine months ended June 30, 2024 and 2023

	Three months ended June 30,			Nine months ended June 30,
(Cdn$, unless noted otherwise)	2024	2023	Change	2024	2023	Change
Revenue	1,042,412	470,310	122%	1,167,638	946,979	23%
Cost of sales	522,274	366,307	43%	611,845	747,124	(18)%
Gross margin1	520,138	104,003		555,793	199,855
Gross margin %1	50%	22%		48%	21%
Operating expenses	999,539	1,128,015	(11)%	3,037,366	3,429,420	(11)%
Other income	(2,985)	5,444	(155)%	10,539	17,392	(39)%
Net loss	(482,386)	(1,018,568)	53%	(2,471,034)	(3,212,173)	23%
Adjusted EBITDA2	(392,191)	(883,821)	56%	(2,175,010)	(2,769,341)	21%

 

¹ Gross margin is based on a blend of both equipment and installation revenue.
² Adjusted EBITDA is a non-IFRS financial measure. See EBITDA Reconciliation for details.

Revenue for the three months ended June 30, 2024, was $1,042,412 compared with $470,310 in the same quarter of fiscal 2023. The increase in revenue during Q3 of fiscal 2024 was primarily due to an increase in the number of SmartGATE units delivered during the period.

Gross margin in the third quarter of fiscal 2024 was $520,138 (50%), compared with $104,003 (22%) in same quarter of fiscal 2023. The increase in gross margins in Q3 of fiscal 2024 was due to an increase in the average selling price of SmartGATE units.

The Company's operating expenses for the third quarter of fiscal 2024 were $999,539, down from $1,128,015 in the same quarter of fiscal 2023. The primary cause for the decrease was lower salaries and consulting costs as a result of internal cost cutting measures.

Adjusted EBITDA for the third quarter of fiscal 2024 was negative $392,191, compared with negative $883,821 in same quarter of fiscal 2023.

Net loss for the third quarter of fiscal 2024 was $482,386, compared with a net loss of $1,018,568 in the same quarter of fiscal 2023. Increase in gross margins and decreased operating costs in Q3 of fiscal 2024 compared with the same quarter of fiscal 2023 resulted in a lower net loss.

CONFERENCE CALL DETAILS:

DATE: Friday, August 23, 2024
TIME: 11:00 AM ET (8:00 AM PT)
WEBINAR: Legend Power Q3 Fiscal 2024 Financial Results Investor Webinar (via Zoom)

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/220869

FAQ

What was Legend Power Systems' (LPSIF) revenue in Q3 F2024?

Legend Power Systems reported revenue of $1.04 million in Q3 F2024, a 122% increase from $470,000 in Q3 F2023.

How did Legend Power Systems' (LPSIF) gross margin change in Q3 F2024?

Legend Power Systems' gross margin improved significantly to 50% in Q3 F2024, up from 22% in the same quarter of the previous year.

What was Legend Power Systems' (LPSIF) net loss for Q3 F2024?

Legend Power Systems reported a net loss of $482,386 for Q3 F2024, which is a 53% improvement from the $1,018,568 loss in Q3 F2023.

How much cash did Legend Power Systems (LPSIF) have as of June 30, 2024?

As of June 30, 2024, Legend Power Systems had $806,000 in cash, with no debt and $1.5 million in working capital.