TORONTO, Aug. 13, 2019 /PRNewswire/ - Electrovaya Inc.
("Electrovaya" or the "Company") (TSX: EFL; OTCQX: EFLVF), a
lithium ion battery manufacturer with industry-leading performance
and substantial intellectual property, today reported its
financial results for the fiscal third quarter ended June 30, 2019 ("Q3 2019"). All dollar amounts are
in U.S. dollars unless otherwise noted.
Q3 2019 Financial Highlights:
- Revenue was $1.2 million
(C$1.6 million), a nearly 200%
increase compared to $0.4 million
(C$0.5 million) for the fiscal third
quarter ended June 30, 2018 ("Q3
2018") due to the fulfilment of orders and other projects. Revenue
for the nine months ended June 30,
2019 ("YTD 2019") was $4.4
million (C$5.8 million),
similar to the nine months ended June 30,
2018 ("YTD 2018").
- Gross profit was $0.4 million
(C$0.5 million), or 35% of revenue,
compared to a slightly negative balance in Q3 2018. Gross profit
for YTD 2019 was $1.6 million
(C$2.1 million), or 36% of revenue,
an increase of 35% from gross profit of $1.2
million (C$1.6 million), or
26% of revenue, in YTD 2018.
- Earnings before interest, tax, depreciation and amortization
("EBITDA") was negative $0.6 million
(C$0.8 million) for Q3 2019, as
compared to negative $1.7 million
(C$2.2 million) for Q3 2018, a 65%
reduction. The variance was due to a substantial reduction in
Research & Development expenses in Q3 2019, as these expenses
were applied to the direct cost of the electric bus project, and
lower General & Administrative expenses in Q3 2019 due to a
concerted effort to reduce overheads.
- Net loss from continued operations was $1.2 million (C$1.6
million) compared to a net loss from continued operations of
$2.5 million (C$3.3 million) in Q3 2018, a reduction in net
loss of 52%. Net loss from continued operations for YTD 2019 was
$0.4 million (C$0.5 million), compared to a net loss from
continued operations of $7.8 million
(C$10.3 million) in YTD 2018, a
reduction in net loss of about 95%. The net loss in YTD 2019 was
significantly impacted by a gain on the sale of capital assets of
$4.2 million (C$5.6 million).
Other Business Highlights:
- In the Materials Handling Electric Vehicle sector, Electrovaya
has sold and delivered batteries to-date to 26 commercial operating
sites in the United States,
Canada, Mexico and Costa
Rica with several customers making follow-on orders. The
majority of customers are large corporations, including several
Fortune 500 companies. These end users span all aspects of the
materials handling market and include major retail and distribution
centers, furniture industry, cold storage, manufacturing and
third-party logistics companies.
- In the electric bus sector, Electrovaya is working on a
$2.9 million (C$3.8 million) electric bus battery development
program. Electrovaya also received a purchase order for a 300kWh,
600V battery system to power an electric bus. The Electrovaya
modular battery system is expected to provide a 40-foot bus with a
range of more than 200 kilometers and capable of fast
charging.
- On June 11, 2019, the Company
announced that it has launched more than 25 different lithium ion
ceramic battery models for the electric forklift market. This
accelerated development was carried out over the last 20 months
after the initial launch of just two battery models in 2017. The
Company is now able to provide complete battery motive power
solutions for the vast majority of warehouse configurations. The
batteries currently available include 24V, 36V, 48V and most
recently 80V in energy capacities ranging from 6 kWh to 63
kWh.
- Subsequent to Q3 2019, the Company announced on July 9, 2019 that it had added certain advanced
features to its EV44 cell, including higher energy density and
lower cobalt content. The cell, which has more than 44Ah of
capacity and average output voltage of 3.7V, features improved
temperature tolerance and cycle life. It can operate at continuous
high charge/discharge rates and has been tested at 45ºC, over
hundreds of cycles, without external cooling. These advanced
features will be available later in 2019.
- The Company has reduced operating expenses over each of the
last four sequential quarters. Operating expenses were $1.5 million (C$2.0
million) in Q3 2019, $2.2
million (C$2.9 million) in the
second quarter of fiscal 2019, $2.5
million (C$3.3 million) in the
first quarter of fiscal 2019, and $3.0
million (C$4.0 million) in the
fourth quarter of fiscal 2018. Management will continue to focus on
cost-saving opportunities.
- John Macdonald recently joined
the Electrovaya Board of Directors. Mr. Macdonald, in various CEO
roles, has raised more than $2.5
billion in financing, 27 acquisitions and 4 divestitures in
his career. He has launched four businesses that each created more
than $100 million of value. As CEO of
Enercare, he was instrumental in the company being acquired by
Brookfield for $4.3 billion in 2018.
The Company's complete Q3 2019 Financial Statements and
Management Discussion and Analysis for the quarter ended
June 30, 2019 are available at
www.sedar.com or on the Company's website at
www.electrovaya.com.
Conference Call Details:
The Company will hold a
conference call on Wednesday, August 14,
2019 at 8:00 a.m. Eastern Time
(ET) to discuss the Q3 2019 financial results and to provide a
business update.
Conference ID: 13693692
US and Canada toll free: (877)
407-8291
International: + 1(201) 689-8345
To help ensure that the conference begins in a timely manner,
please dial in 10 minutes prior to the start of the call.
For those unable to participate in the conference call, a
replay will be available for two weeks beginning on August 14, 2019 through August 27, 2019. To access the replay, the U.S.
dial-in number is (877) 660-6853 and the non-U.S. dial-in number is
+1 (201) 612-7415. The replay conference ID is 13693692.
About Electrovaya Inc.
Electrovaya Inc. (TSX:EFL) (OTCQX:EFLVF) designs,
develops and manufactures proprietary lithium ion batteries,
battery systems, and battery-related products for energy storage,
clean electric transportation and other specialized applications.
Electrovaya is a technology focused company with extensive IP.
Headquartered in Ontario, Canada,
Electrovaya has production facilities in Canada with customers around the globe.
To learn more about how Electrovaya is powering mobility and
energy storage, please explore www.electrovaya.com.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements that relate to, among other
things, expected delivery times for new product
features, the successful completion of negotiations to
provide the Corporation with of additional loan capital to finance
specific purchase orders, Management's ability to continue to
achieve costs savings to reduce operating expenses, anticipated
continued increase in sales momentum in fiscal 2019 through OEMs
and directly to large global companies, including Fortune 500
companies, the future direction of the Company's business and
products, the Company's ability to source supply to satisfy demand
for its products and satisfy current order volume, the Company's
markets, objectives, goals, strategies, intentions, beliefs,
expectations and estimates, and can generally be identified by the
use of words such as "may", "will", "could", "should", "would",
"likely", "possible", "expect", "intend", "estimate", "anticipate",
"believe", "plan", "objective" and "continue" (or the negative
thereof) and words and expressions of similar import. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are
applied in making forward-looking statements, and actual results
may differ materially from those expressed or implied in such
statements. Important factors that could cause actual results to
differ materially from expectations include but are not limited to:
that current customers will continue to make and increase orders
for the Company's products and that the Company's alternate supply
chain will be adequate to replace material supply and
manufacturing. Important factors that could cause actual results to
differ materially from expectations include but are not limited to:
general business and economic conditions (including but not limited
to currency rates and creditworthiness of customers), Company
liquidity and capital resources, including the availability of
additional capital resources to fund its activities, level of
competition, changes in laws and regulations, legal and regulatory
proceedings, the ability to adapt products and services to the
changing market, the ability to attract and retain key executives,
and the ability to execute strategic plans. Additional information
about material factors that could cause actual results to differ
materially from expectations and about material factors or
assumptions applied in making forward-looking statements may be
found in the Company's Annual Information Form for the year ended
September 30, 2018 under "Risk
Factors", and in the Company's most recent annual and interim
Management's Discussion and Analysis under "Qualitative and
Quantitative Disclosures about Risks and Uncertainties" as well as
in other public disclosure documents filed with Canadian securities
regulatory authorities. The Company does not undertake any
obligation to update publicly or to revise any of the
forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise, except as
required by law.
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SOURCE Electrovaya Inc.