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 first quarter ended December
31, 2018 (“Q1 2019”). All dollar amounts are in U.S. dollars unless
otherwise noted.
Q1 2019 Financial Highlights:
- Revenue was $2.0 million (C$2.6
million), compared to $0.7 million (C$0.9 million) for the fiscal
first quarter ended December 31, 2017 (“Q1 2018”), an increase of
approximately 164%. Q1 2019 revenue was derived entirely from
deliveries of lithium ion batteries to customers in the electric
forklift and Automated Guided Vehicle (“AGV”) markets.
- Gross profit was $0.7 million
(C$0.9 million), or 37% of revenue, compared to gross profit of
$0.3 million (C$0.4 million), or 37% of revenue, in Q1 2018.
- Revenue on a sequential basis has
grown significantly, from $0.4 million (C$0.5 million) in Q3 2018
to $1.2 million (C$1.6 million) in Q4 2018 to $2.0 million (C$2.6
million) in Q1 2019, reflecting increased order and delivery
volumes.
- Net earnings from continued
operations for Q1 2019 were $2.8 million (C$3.7 million) compared
to a net loss from continued operations $2.7 million (C$3.6
million) for Q1 2018. The net profit was primarily due to a gain on
the sale of capital assets of $4.2 million (C$5.5 million).
Other Business Highlights:
- Electrovaya’s batteries continue to gain substantial traction
in the Materials Handling Electric Vehicle (“MHEV”) market. To
date, Electrovaya has sold and delivered batteries to commercial
operations at 18 customer sites in the United States and Canada,
with several customers making follow-up 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, furniture distribution,
cold storage, manufacturing and third-party logistics
companies.
- Electrovaya continues to make progress in launching additional
product configurations in order to target a greater portion of the
market. For MHEV vehicles, Electrovaya is currently able to provide
solutions for a variety of 24V, 36V, 48V and 80V vehicles and
already has batteries powering Class I, Class II and Class III
vehicles in commercial operation.
- Electrovaya has established a close working relationship with
one leading MHEV original equipment manufacturer (“OEM”), which is
leading to additional sales through that OEM’s dealership network.
Q1 2019 represented the first quarter of deliveries through this
OEM’s sales channels. In addition, Electrovaya maintains close
relationships with other leading MHEV OEMs in North America and has
worked through their engineering approval processes.
- Electrovaya continues to make progress in developing
high-voltage battery packs for use in the electric bus market. The
company is working with two bus companies as part of its $2.9
million (C$3.8 million) contract with Sustainable Development
Technology Canada.
- The Company continued to make deliveries to an AGV OEM during
Q1 2019, as that firm’s product has achieved significant commercial
interest. There are currently several hundred AGVs powered by
Electrovaya’s batteries in commercial operations in the United
States.
- During the quarter, the Company made progress with R&D and
received a new U.S. patent.
Electrovaya’s sales growth in Q1 2019 reflects growing customer
demand for its products. The Company made deliveries to a wide
variety of customers in the MHEV sector. Q1 2019 also represented
the first quarter in which deliveries were made through a major
OEM’s sales channel, and these deliveries are expected to
accelerate during fiscal 2019. Customers have been very pleased
with the product performance, leading to repeat orders. Continued
sales momentum, combined with recent cost reductions, positions
Electrovaya for stronger financial performance.
The Company’s complete Q1 2019 Financial
Statements and Management Discussion and Analysis for the quarter
ended December 31, 2018 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 Thursday, February 7, 2019
at 7:30 a.m. Eastern Time (ET) to discuss the Q1 2019 financial
results and to provide a business update.
Conference ID: 13687460US and Canada toll free:
(877) 407-8291International: + 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 February 7, 2019 through February 21, 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
13687460.
For more information, please
contact:
Peter KovenBay Street CommunicationsTelephone:
647-496-7857Email: peterkoven@baystreetcommunications.com
Jason RoyDirector, Investor Relations &
CommunicationElectrovaya Inc.905-855-4618jroy@electrovaya.com
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, anticipated increased collaboration with OEMs in fiscal
2019, anticipated continued increase in sales momentum in fiscal
2019 through OEMs and directly to large global companies, including
Fortune 500 companies, the effect of Litarion’s insolvency filing
on the Company’s financial position and performance, the future
direction of the Company’s business and products, the effect of a
structured sale of Litarion, including on the Company’s overhead
and operations, 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, that the Company’s
alternate supply chain will be adequate to replace material supply
and manufacturing, that the Company’s interpretation of the effect
of any comfort given to Litarion’s auditors of the Company’s
financial support for Litarion’s operations is correct, and that
Litarion’s insolvency process will proceed in an orderly fashion
that will satisfy Litarion’s debt without a significant negative
effect on the Company or its assets. Important factors that could
cause actual results to differ materially from expectations include
but are not limited to: actions taken by creditors and remedies
granted by German courts in the Litarion insolvency proceedings and
their effect on the Company’s business and assets, negative
reactions of the Company’s existing customers to Litarion’s
insolvency process, 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 Risk 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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