GreenPower Motor Company (NASDAQ: GP), manufacturer and distributor of zero-emission, electric-powered medium- and heavy-duty vehicles, reported higher revenues and working capital of $28.3 million at the end of its first quarter.
"We've achieved a number of milestones across various segments of our business including the first deliveries of our EV Star Cab and Chassis (EV Star CC) to Workhorse in July, expansion of the dealer network for our all-electric school buses, the acquisition of Lion Truck Body and entering into a Contract of Lease-Purchase for the facility in West Virginia," said Fraser Atkinson, CEO of GreenPower. "Our investment in inventory supports the deliveries we're making this summer and through this fall of our all-electric school buses, cargo vans, and other EV Star models in addition to the build-up for the Workhorse contract."
Financial highlights for Q1:
- Recorded revenues of $3,851,105 for the current quarter an increase of 29% over the revenue of $2,980,086 for the same quarter last year.
- Gross profit of 28.8% of revenue.
- Cash including restricted cash of $5.4 million at the end of the period.
- Inventory of $39.7 million including finished goods of $24.6 million.
- Working capital at the end of the quarter of $28.3 million.
During the quarter, GreenPower was engaged in the due diligence and negotiation of the acquisition of Lion Truck Body, a truck body manufacturer located near the port of Long Beach in Los Angeles. Lion Truck Body manufactures and installs a complete line of truck bodies including dry-freight aluminum, refrigerated box, aluminum beds, stake bed, flat bed, and service body. With the successful closing of the acquisition in July, GreenPower is vertically integrating an important component of its supply chain, as the company is now able to send EV Star CCs to Lion Truck Body for body installation for customers, which captures another revenue stream that is currently being sent to third-party body manufacturers.
Said Brendan Riley, president of GreenPower: "The combination of GreenPower's EV expertise and the advanced body building experience of Lion Truck Body gives GreenPower a competitive advantage with shortened lead time as well as truck bodies that are optimized for EV trucks. We've collaborated with Lion Truck Body to develop our new EV Star Cargo+ refrigerated truck, which is slated for delivery to our first customer this quarter with more payload, longer range and lower cost factor than any competitive EV refrigerated truck in its class on the market."
GreenPower presently has more than 40 Type D BEAST and Type A Nano BEAST school buses in finished goods inventory with substantially all of these expected to be sold and delivered by the end of this calendar year. GreenPower has ongoing discussions with dealers in the Midwest, Northeast and Pacific Northwest. GreenPower anticipates that initial deliveries across its dealer network will expand this sales channel, and better position the company to leverage significant local, state and federal funding for all-electric school buses.
During the quarter, GreenPower entered into a lease-purchase agreement with the state for an 80,000-square-foot facility on six acres of land to manufacture all-electric school buses for the U.S. market. As part of this partnership, the state will provide worker training and hiring support, up to $3.5 million in employment incentive payments in exchange for meeting hiring targets, and has agreed to purchase up to $15 million of GreenPower vehicles produced at the facility.