Vancouver, Canada, February 29, 2016 – Legend Power Systems Inc. (TSXV: LPS) today reported its first-quarter 2016 financial results for the three-months ended December 31, 2015. Currency amounts are in Canadian Dollars.
Q1 was a breakthrough quarter in many respects as we achieved our highest ever quarterly revenue, secured several “brand” name accounts in existing and new verticals, and closed a $1.66 million equity financing.
Product acceptance has continued to grow in the Ontario marketplace and Legend received product endorsements from many new “key influencers” who advise decision makers in our target markets as to which energy savings products they should adopt.
Fiscal Q1 2016 Financial and Business Highlights:
- $778,352 in revenue; (record sales quarter)
- 8 unique transactions
- 12 units sold
- $64,500 average deal size
- 55% gross margin (product and installation)
- received customer orders in all “sweet spot” verticals; commercial real estate (2), retail (1), education (2), hospitality (2), condo (1)
- Achieved excellent results as one of the largest Canadian property management firms realized 8% energy savings with Legend’s Harmonizer in their first building.
- New business development managers (sales) all secured at least their first new order.
- Secured new initial orders with accounts having potential for national rollouts within their network.
- Obtained “Market Partners Network” status for Con Edison’s Commercial & Industrial Energy Efficiency Program, which provides Legend the opportunity to communicate our skills and project experience to Con Edison’s significant customer base. Con Edison is a top 10 U.S. utility serving the boroughs of New York and Westchester County.
- Now have over 8 “key influencers” working with Legend to market the Harmonizer in the Ontario marketplace.
The financial highlights for the quarter are provided below:
| Three-months ended December 31 | |||
| (Cdn$, unless noted otherwise) | 2015 | 2014 | Change |
| Revenue | 778,352 | 152,665 | 409.8% |
| Cost of sales | 350,936 | 87,422 | 301.4% |
| Gross margin | 427,416 | 65,243 | 555.1% |
| Gross margin % | 54.9% | 42.7% | 12.2% |
| Operating expenses2 | (675,597) | (656,875) | 2.9% |
| Operating expenses as % of sales | 86.8% | 430.3% | (343.5)% |
| Net (loss) | (247,940) | (689,226) | (64.0)% |
| EBITDA1 | (87,491) | (498,874) | 82.5% |
1 EBITDA; for the three-months ended December 31, 2015 and 2014, we are disclosing EBITDA, which is a non-IFRS financial measure, as a supplementary indicator of operating performance. We define EBITDA as net income or loss before interest, income taxes, amortization, foreign exchange amounts and non-cash stock based compensation.2 Before other items.
A complete set of the December 31, 2015 Interim Financial Statements and Management’s Discussion & Analysis are available on Legend’s corporate website. To view these documents, visit: https://legendpower.com/investors/financial-statements/. Both documents are also filed on SEDAR (www.sedar.com (link is external)).
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legend20.wpengine.com) markets a proprietary device, the ‘Harmonizer’ that helps individual buildings reduce energy consumption through the utility-proven concept of Conservation Voltage Reduction, (CVR). Legend provides customers risk free energy savings, improves the value of their physical assets, and enhances their sustainability efforts. As an application with demand side benefits, Legend is also a key contributor toward utility conservation goals. Legend was recognized as the top performing cleantech company on the TSX Venture Exchange in 2015.
For further information, please contact:
Randy Buchamer, CEO and President
+ 1 778 945 1501
Steve Vanry, CFO
+ 1 604 671 9522
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This Press Release may contain statements which constitute ‘forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.