Vancouver, B.C., Canada – May 28, 2020 – Legend Power® Systems Inc. (TSX.V: LPS) (“Legend Power” or the “Company”), a global leader in onsite energy management technology, today reported its Q2 fiscal 2020 financial results for the six months ended March 31, 2020. A conference call to discuss the results is set for 4:15pm EST today (dial in details below). A complete set of Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.
Financial Highlights for the three months ending March 31, 2020
Working Capital Update to May 28, 2020
Objectives through fiscal year-end (September 30)
Financial summary for the three and six months ended March 31, 2020 and 2019
1 Gross margin is based on a blend of both equipment and installation revenue.
Revenue for the second quarter of 2020 was $676,359, a 12% decrease from $769,443 in the same quarter of 2019. Revenue for the six months ended March 31, 2020 was $1,679,688 a 43% increase from $1,172,843 in the same period 2019.
Gross margin in the second quarter of fiscal 2020 was 32%, a decrease from 54% in second quarter of fiscal 2019. Gross margin in the first half of fiscal 2020 was 26%, a decrease from 63% over the first half of 2019. The lower gross margins experienced in the first half of 2020 was due primarily to:
Adjusted EBITDA for the second quarter of fiscal 2020 was negative $1,467,805, compared with negative $1,285,984 in the second quarter of fiscal 2019. Adjusted EBITDA for the first half of fiscal 2020 decreased to negative $2,792,966, from negative $2,334,336 in the first half of fiscal 2019.
Net loss for the second quarter of fiscal 2020 was $1,516,627, compared with a net loss of $1,402,451 in the second quarter of fiscal 2019. Net loss for the first six months of 2020 was $2,998,825, an increase of 20% from a loss of $2,493,783 in the same period of 2019. Lower gross margins were the prime contributor to the increase in net loss compared with the same six-month period in fiscal 2019.
The Company’s operating expenses for the second quarter of 2020 were $1,736,091, down from $1,845,557 in the same quarter of 2019 and for the first six months of fiscal 2020 were $3,356,522 compared with $3,330,400 in the same six months of 2019.
CONFERENCE CALL DETAILS:
DATE: Thursday, May 28, 2020
About Legend Power® Systems Inc.
For further information, please contact:
Steve Vanry, CFO
Sean Peasgood, Investor Relations
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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