Electrovaya Inc. (“Electrovaya” or the “Company”) (TSX: EFL; OTCQX:
EFLVF) today reported its financial results for the fiscal third
quarter ended June 30, 2018 (“Q3 2018”). All numbers are in U.S.
dollars unless otherwise noted.
Electrovaya is focused on supplying lithium ion
batteries for the Materials Handling Electric Vehicle (MHEV)
sector, an emerging and rapidly growing market opportunity. Since
the start of Q3 2018, the Company has announced new and recurring
purchase orders worth more than $3.6 million. In order to provide
the working capital for fulfilment of these orders, the Company has
raised approximately CDN $2.2 million from insiders, including
directors and management. The Company has also entered into a
binding agreement for the sale and leaseback of its Mississauga,
Ontario headquarters for gross proceeds of Cdn $22.5 million.
Proceeds will be used to pay down debt and for working capital
purposes.
During Q3 2018, Electrovaya also completed
commissioning on the CDN $4.3 million purchase order from Walmart
Canada. The Company’s batteries were installed in forklifts in a
Walmart distribution centre, replacing lead acid batteries. This
distribution centre represents one of the single largest
installations of MHEVs powered by lithium ion batteries in North
America.
Electrovaya is encouraged by continued interest
in its lithium ion forklift battery systems from new and existing
customers. In addition to the Fortune 500 companies which have
issued initial and/or follow-up purchase orders, validation testing
is ongoing by major global companies, and Electrovaya is confident
that sales momentum for these products will increase during the
second half of fiscal 2018. Multiple manufacturers of MHEVs have
approved the use of the Company’s lithium ion batteries in certain
vehicles for the North American market.
Q3 2018 Financial HighlightsAll Q3 2018
financial highlights are from continuing operations
- Revenue was $0.4 million (Cdn $0.5
million), compared to $1.0 million (Cdn $1.3 million) for Q3
2017.
- Gross profit was slightly negative,
compared to gross profit of $0.1 million (Cdn $0.1 million) for Q3
2017.
- Net loss from continued operations
was $2.5 million (Cdn $3.2 million) compared to $1.9 million (Cdn
$2.4 million) for Q3 2017. The increased loss was primarily due to
a $0.8 million increase in general and administrative expenses in
Q3 2018, resulting from a reimbursement of expenses without the
corresponding inclusion of expenses from discontinued operations in
Q3 2017.
- The total comprehensive gain for
the period was $3.0 million (Cdn $3.8 million) after recognizing a
$5.1 million gain on loss of control of subsidiary. For Q3 2017 the
total comprehensive loss was $1.1 million (Cdn $1.4 million).
- For the nine months ended June 30,
2018, revenue was $4.4 million (Cdn $5.6 million) and gross profit
was $1.2 million (Cdn $1.5 million), while revenue and gross profit
were $2.1 million (Cdn $2.7 million) and $0.8 million (Cdn $1.0
million), respectively, for the nine months ended June 30,
2017.
- Cash and equivalents were $0.4
million as at June 30, 2018.
Q3
2018 Business Highlights
- Electrovaya completed commissioning
of lithium ion batteries on the Cdn $4.3 million purchase order
from Walmart Canada.
- The Company announced initial and
follow-up purchase orders from customers totalling approximately
$2.3 million (Cdn $2.9 million).
- Electrovaya showcased its forklift
battery products in a number of trade shows, including MODEX in
Atlanta, Georgia from April 9-12. MODEX is the leading
manufacturing and supply chain expo in the United States.
- Subsequent to Q3 2018, Electrovaya
announced follow-on purchase orders worth approximately $1.3
million (Cdn $1.7 million).
- Subsequent to Q3 2018, the Company
also entered into a binding agreement for the sale and partial
leaseback of its Mississauga, Ontario headquarters for gross
proceeds of Cdn $22.5 million.
The Company’s complete Q3 2018 Financial Statements and
Management Discussion and Analysis 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 Wednesday, August 15, 2018
at 8:00 a.m. Eastern Time (ET) to discuss the Q3 2018 financial
results and to provide a business update.
Conference ID: 13682563US 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 August 15, 2018 through August 29, 2018. 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
13682563.
For more information, please
contact:
Peter KovenBay Street CommunicationsTelephone:
1.647.496.7857Email: peterkoven@baystreetcommunications.com
About Electrovaya Inc.
Electrovaya Inc. (TSX:EFL) (OTCQX:EFLVF)
designs, develops and manufactures proprietary Lithium Ion Super
Polymer® batteries, battery systems, and battery-related products
for energy storage, clean electric transportation and other
specialized applications. Headquartered in Ontario, Canada,
Electrovaya is a technology focused company with extensive IP,
supplying leading global customers.
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, the Company’s need for commoditized contract manufacturing
facilities in its product development process, 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, revenue forecasts,anticipated orders and
deliveries in CY2018 and beyond, demand for the Company's products,
technology development progress, pre-launch plans, plans for
product development, plans to work with OEMs, plans to sell
directly to user, plans for shipment using the Company’s
technology, production plans, 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.
Material assumptions used to develop forward-looking information in
this news release include, among other things, 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,
the ability to sell the Company’s premises or to do so at a price
reflecting appropriate value, 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 (“AIF”) for the year ended September 30, 2017 and
in the Company’s most recent annual and interim Management’s
Discussion and Analysis under “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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