Legend Power Q3 2016 Financial Results and Business Highlights
Vancouver, Canada, August 24, 2016 – Legend Power Systems Inc. (TSXV: LPS) today reported its third-quarter 2016 financial results for the nine-months ended June 30, 2016. Currency amounts are in Canadian Dollars.
Results for the third quarter of 2016 were again positive with the Company achieving a new record of 15-units sold. The Company has now achieved sales and testimonial accounts in each of our 12 targeted market verticals.
We continue to see growth in our sales funnel and anticipate a continuing trend of converting prospects to customers and are optimistic that follow-on orders will be generated with significant accounts.
Purchase orders received during Q3 were materially higher than revenue recognized as some orders were delayed due to a 3rd party component challenge.
Fiscal Q3 2016 Financial and Highlights:
- achieved revenue of $658,143
- gross profit margin of 9%
- 9 unique customer transactions
- total of 15-units sold (record)
- $45,875 average unit sales price
The financial highlights for the three and nine-months ended June 30, 2106, provided below:
| Three-months ended June 30, 2016 | Nine-months ended June 30, 2016 | |||||
| (Cdn$, unless noted otherwise) | 2016 | 2015 | Change | 2016 | 2015 | Change |
| Revenue | 658,143 | 150,824 | 336.4% | 2,454,818 | 417,817 | 487.5% |
| Cost of sales | 303,431 | 70,121 | 332.7% | 1,163,800 | 194,522 | 498.3% |
| Gross margin | 354,712 | 80,703 | 339.5% | 1,291,018 | 223,295 | 478.2% |
| Gross margin % | 53.9% | 53.5% | 0.4% | 52.59% | 53.4% | (0.8)% |
| Operating expenses1 | (881,240) | (632,962) | 39.2% | (2,274,861) | (2,045,552) | 11.2% |
| Operating expense as % of sales | 133.9% | 419.7% | (285.8)% | 92.67% | 489.6% | (396.9)% |
| EBITDA2 | (280,728) | (462,120) | 39.3% | (432,695) | (1,392,121) | 68.9% |
| Net (loss) | (526,378) | (610,621) | (13.8)% | (983,081) | (2,012,716) | (51.2)% |
1 Before other items.
2 EBITDA; for the three and nine-months ended June 30, 2016 and 2015, 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.
A complete set of the June 30, 2016 Condensed Interim Consolidated 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 information”, 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.