In This Article:
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Revenue: $7.2 million, a 35% increase over the prior quarter.
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Cost of Sales: $6.2 million.
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Gross Profit: Approximately $1.05 million or 14.6% of revenues.
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Sales Volume: 13 BEAST Type D all-electric school buses, 1 nano BEAST Type A school bus, and 14 EV Star model vehicles.
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SG&A Expenses: Declined by $443,000 or 7.8% compared to the same quarter last year.
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Available Liquidity: $1.2 million in the EDC revolving credit facility.
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Letters of Credit Capacity: Nearly $3.9 million for additional production funding.
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Capital Raised: $3 million from an underwritten offering of common shares.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GreenPower Motor Co Inc (NASDAQ:GP) reported a 35% increase in revenue for the third quarter, reaching $7.2 million.
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The company achieved a gross profit of approximately $1.05 million, or 14.6% of revenues, indicating improved profitability.
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GreenPower is expanding its manufacturing capabilities, with plans to increase production at its West Virginia facility to two BEAST units per week by April.
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The company is consolidating its California operations into a single facility, which is expected to lead to cost savings and increased efficiency.
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There is strong demand for electric school buses, supported by state-level funding programs in California and New York, which are expected to drive future sales.
Negative Points
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GreenPower's truck body division experienced lower than target gross profit margins, impacting overall profitability.
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The company faces challenges with federal funding for electric school buses, as the situation remains fluid and uncertain.
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General and administrative expenses increased to $2.9 million, up from $2.2 million in the previous quarter, due to higher headcount and consolidation efforts.
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The truck body division is facing overcapacity in the sector, leading to reduced demand and throughput.
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GreenPower's West Virginia manufacturing operations are still working on improving throughput and managing costs to enhance financial results.
Q & A Highlights
Q: Can you comment on the mix of state and federal funding for your electric vehicles, and how recent changes might impact your business? A: At the federal level, the situation is fluid, and we need more time to see how it will unfold. Some dealers have successfully drawn funds from the Clean School Bus program. At the state level, California's funding plan for 2025 focuses on sectors that struggle to get incentives, which benefits smaller fleets. The Zero-Emission School Bus Initiative has $500 million, with $375 million for electric school buses. New York also has a $500 million program to support electric school bus adoption.