Vancouver-based GreenPower Motor Company Inc. (NASDAQ: GP) on Friday painted a robust revenue and deliveries picture with its third-quarter financial report to investors.
“During the quarter, we delivered units across a variety of product lines while considerably expanding our sales pipeline,” said Brendan Riley, president of GreenPower. “We continue to prioritize deliveries with a focus on our inventory of 30 BEAST school buses, 60 EV Stars and 50 EV Star CC's. … During the quarter and subsequently, we have made significant progress adding the resources and strategic relationships that will accelerate our growth, reach and brand momentum going forward."
One of those relationships, announced in January, is the plan to enter a lease/purchase agreement with the state of West Virginia to put an 80,000-square-foot school bus manufacturing facility in South Charleston. The state is expected to buy $15 million worth of GreenPower vehicles as part of the deal.
“The establishment of GreenPower's new production facility in the state of West Virginia is one of the most significant events in the company's history,” said GreenPower CEO Fred Atkinson. “This allows us to substantially increase our domestic school bus production capabilities, tap new markets and significantly increase our footprint, all with minimal additional capital expenditure. Our goal is to be producing upward of 1,000 all-electric, purpose-built school buses in the state annually in three to four years. The state of West Virginia and the local South Charleston community have been extremely supportive, and we expect this will be a substantial growth driver for GreenPower in the near future."
Highlights of the quarter, which ended on Dec. 31, 2021:
- GreenPower generated $5.3 million in revenues, more than double the $2.39 million reported in the previous fiscal year’s third quarter.
- Gross profit of 27.8%, up from 21.5% the last quarter.
- Working capital of more than $29 million and an unused line of credit of about $3.9 million.
- Inventory increased to $28.6 million at the end of the quarter, compared to $12.5 million in March 2021. According to a news release, GreenPower is close to the targeted inventory level where future sales offset additions.