GreenPower Motor Co(GP) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the three months ended December 31, 2024, GreenPower generated revenue of $7.2 million, a 35$6.2 million, resulting in a gross profit of approximately $1.05 million or 14.6$443,000 or 7.8% compared to the same quarter last year [27] Business Line Data and Key Metrics Changes - Revenue was generated from the sale of 13 BEAST Type D all-electric school buses, one Nano BEAST Type A school bus, and 14 EV Star model vehicles, along with revenue from leases and parts sales [25] - Gross profit improved due to contributions from BEAST and Nano BEAST sales in California and Oregon, partially offset by lower margins from the truck body division and new manufacturing operations in West Virginia [25] Market Data and Key Metrics Changes - Demand for all-electric school buses is at an all-time high, with a survey indicating that 65% of parents prefer electric school buses over diesel [10] - The school bus driver shortage is driving demand for electric school buses, as they are seen as a solution to attract and retain drivers [11] Company Strategy and Development Direction - GreenPower is focusing on B2G (business-to-government) vehicle-to-grid options, positioning electric school buses as a means to enhance grid stability [12] - The company is consolidating its California operations into a single facility to improve efficiency and reduce costs [20][26] - GreenPower aims to increase production output at its West Virginia facility, with plans to deliver one BEAST per week and ramping up to two units per week by April [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving gross profits as production ramps up at the West Virginia facility [8] - The company is closely monitoring federal funding opportunities, with some dealers successfully accessing funds from the Clean School Bus Program [36] - There is strong support for electric school buses in California and New York, with significant funding available for adoption [38] Other Important Information - GreenPower completed an underwritten offering of 3 million common shares, raising gross proceeds of $3 million for production and development [29] - The company continues to utilize EDC revolving credit facilities to fund production, with approximately$1.2 million in available liquidity at quarter-end [28] Q&A Session Summary Question: Can you comment on the opportunities for fiscal support for your customers? - Management noted that federal funding is fluid, but some dealers have successfully drawn down funds from the Clean School Bus Program. State-level funding in California and New York remains strong [36][38] Question: Can you explain the increase in general and administrative expenses? - The increase was primarily due to headcount, but management anticipates reductions in salary expenses over time due to consolidation efforts [42] Question: How many electric school buses are currently in operation? - GreenPower has delivered about 10 out of 100 vehicles from West Virginia, with plans to ramp up deliveries. Customer feedback has been positive [63][64] Question: What drives throughput in the truck body division? - The truck body division is primarily focused on third-party vehicles, and the consolidation of operations is expected to improve efficiencies and throughput [70][72]