• Revenue: $5.3 million, a 78% increase over the first quarter.
• Cost of Sales: $4.9 million.
• Gross Profit: Approximately $460,000, or 8.6% of revenues.
• SG&A Costs: Declined by $630,000 or 12.1% compared to the same quarter last year.
• Available Liquidity: Approximately $850,000 remaining in the EDC revolving credit facility.
• Underwritten Offering: Raised gross proceeds of $3 million from 3 million common shares.

• Warning! GuruFocus has detected 10 Warning Signs with GP.

Release Date: November 15, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GreenPower Motor Co Inc (NASDAQ:GP) reported a 78% increase in revenue for the quarter, reaching $5.3 million.
• The company has over 300 live orders and qualified leads for its all-electric school buses, indicating strong demand.
• GreenPower is well-positioned to benefit from state-level policies promoting the electrification of school buses and commercial vehicles.
• The company is actively working on monetizing tradable credits, which could provide a significant revenue stream.
• GreenPower has made improvements in its manufacturing process, including adding a new large volume paint booth and increasing production capacity.

Negative Points

• The company's gross profit margin was lower than anticipated, primarily due to negative margins in the truck body division.
• There are uncertainties regarding changes in federal programs, which could impact the EV sector.
• GreenPower's financial performance is heavily reliant on external funding, including a recent underwritten offering of 3 million common shares.
• The medium and heavy-duty tradable credit market is still nascent, with only two trades completed to date, posing challenges for immediate monetization.
• The logistics and timing of receiving EPA funding for electric school buses remain a work in progress, adding uncertainty to cash flow.

Q & A Highlights

Q: Regarding the EPA funding for 50 electric school buses, what are the logistics of obtaining that funding? Does it go to the districts buying the buses, and is there a way to get that funding before delivery? A: The EPA contract is with our dealer, and our arrangement is with the dealer, making us one step removed from the EPA contract. The timing of funding is still a work in progress.

Q: Can you update on the cabin chassis units and inventory? Are these going to specific customers, and how should we view this delivery opportunity? A: We are using the cabin chassis for production of both Nano BEAST and EV Star Plus vehicles. We have qualified leads for Type A Nano BEAST, and production needs to increase to fulfill these orders.

Q: Regarding tradable credits, are there other companies besides Tesla that could monetize this effort? A: In the medium and heavy-duty space, no companies have disclosed the purchase or sale of tradable credits. In the light-duty space, companies like Tesla and Rivian have disclosed trades. The medium and heavy-duty market is still developing, with only two trades reported by CARB.

Q: What is the current status of your manufacturing process improvements? A: We have added a new large volume paint booth and reorganized our production floor to increase capacity. This is expected to improve gross profit margins and reduce costs per unit as throughput improves.

Q: How did GreenPower perform financially in the recent quarter? A: For the three months ended September 30, 2024, GreenPower generated $5.3 million in revenue, a 78% increase over the previous quarter. The gross profit was approximately $460,000, or 8.6% of revenues, with expectations for improved margins as throughput increases.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.