Conference Call Scheduled Today at 11am EST
Vancouver, B.C., Canada – December 20, 2024 – Legend Power Systems Inc. (TSX.V: LPS) (OTCQB: LPSIF) (“Legend Power” or the “Company”), a global leader in commercial electrical system solutions, reports its financial results for the three months ended September 30, 2024 (“Q4 F2024”). The Company has also scheduled a conference call to provide a business update to discuss its Q4 F2024 financial results today at 11:00 AM ET (8:00 AM PT) (details below). The call will be hosted by Randy Buchamer, President & Chief Executive Officer. A complete set of Financial Statements and Management’s Discussion & Analysis has been filed at www.sedarplus.ca. All dollar figures are quoted in Canadian dollars.
Q4 F2024 Highlights
- Revenue of $705 thousand versus $159 thousand in Q4 F2023
- Adjusted EBITDA loss of $763 thousand versus a $885 thousand loss in Q4 F2023
- Net loss of $832 thousand versus a $969 thousand loss in Q4 F2023
- Cash of $236 thousand, no debt, and $742 thousand in working capital at September 30, 2024
“The past year has been transformative for Legend Power Systems, with tangible wins across five strategic pillars that form the backbone of our growth strategy,” said Randy Buchamer, Legend Power Systems CEO. “Each of these pillars represents a standalone opportunity to drive significant revenue growth, but together, they form a synergistic foundation that will drive significant revenue growth for Legend over the next 3–5 years. We have passed the critical stage of having to prove our solutions work. We have successfully completed technology evaluations in numerous markets, and we are focusing on helping partners and prospects develop deployment plans. We have many prospects deciding on where and how to deploy SmartGATEs, and our order visibility is stronger than ever.”
Q4 F2024 Operational Highlights
- Green Proving Ground program for the United States General Services Administration, which operates approximately 1,800 federally owned buildings is proceeding well. Two sites have been selected, with the first unit shipped, and plans to ship the next system in the next quarter.
- Sales activity is continuing at a strong pace, as evidenced from customers, both repeat and new business, who continue engaging with deep and wide interest. The strength in viability is driven mainly by customers articulating power quality concerns and higher visible costs. Partner sales efforts also continue to grow in volume, dollars, and strength.
- Legend Power Systems is engaged in active sales processes with several of the top firms in the Commercial Real Estate space, with over 196 buildings in active sales cycles for over 400 plus potential SmartGATE’s.
Q4 F2024 Financial Highlights
Financial summary for the three and twelve months ended September 30, 2024 and 202
1 Gross margin is based on a blend of both equipment and installation revenue.
2 Adjusted EBITDA is a non-IFRS financial measure. See EBITDA Reconciliation for details.
Revenue for the fourth quarter of 2024 was $705,335 compared with $159,114 in the same quarter of fiscal 2023. The higher revenue during Q4 F2024 is primarily due to production and supply chain efficiencies and an increase in selling price of the SmartGATE units. Revenue for the year ended September 30, 2024, was $1,872,973 up from $1,106,093 in fiscal 2023. The higher revenue in fiscal 2024 is due to a higher number of units sold, with both deal size and average revenue per unit increasing.
Gross margin in the fourth quarter of fiscal 2024 was 21%, compared with negative 4% in the same quarter of fiscal 2023. Decreased margins in Q4 F2024, compared to prior quarters of this fiscal year, relate mainly to an inventory provision taken, and should sale of such inventory occur in the future, the Company expects to record a recovery. Gross margin for the year ended September 30, 2024, was 38% compared to 18% in fiscal 2023. The increase in gross margin experienced in fiscal 2024 was due to an increase in average selling price of the SmartGATE units.
The Company’s operating expenses for the fourth quarter of fiscal 2024 were $976,967, down from $1,001,073 in the same quarter of fiscal 2023. Operating expenses for the year ended September 30, 2024, was $4,014,333 versus $4,430,493 in fiscal 2023. The primary cause for the decrease was lower salaries and consulting costs as a result of internal cost-cutting measures.
Adjusted EBITDA for the fourth quarter of fiscal 2024 was negative $763,529, compared with negative $885,809 in the same quarter of fiscal 2023. For the year ended September 30, 2024, adjusted EBITDA was negative $2,938,539 compared to negative $3,655,150 in fiscal 2023.
Net loss for the fourth quarter of fiscal 2024 was $832,475, compared with a net loss of $969,729 in the same quarter of fiscal 2023. Higher gross margin, and cost-cutting measures taken resulted in a lower net loss year-over-year.
CONFERENCE CALL DETAILS:
DATE: Friday, December 20, 2024
TIME: 11:00 AM ET (8:00 AM PT)
WEBINAR: Legend Power Fiscal 2024 Financial Results Investor Webinar (via Zoom)
REPLAY: Available at: https://legendpower.com
About Legend Power Systems Inc.
Legend Power Systems Inc. (https://legendpower.com/) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend Power’s proven solutions support proactive executive decision-making in a complex and volatile business and energy environment. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend Power’s unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.
For further information, please contact:
Jonathan Lansky, Director
+1 416 417 7664
[email protected]
Sean Peasgood, Investor Relations
+ 1 647 503 1054
[email protected]
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.sedarplus.ca. 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 to 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.