Legend Power Reports Q1 Fiscal 2020 Financial Results

VANCOUVER, British Columbia, Feb. 27, 2020 (GLOBE NEWSWIRE) -- Legend Power Systems Inc. (TSX.V: LPS) (“Legend Power” or the “Company”), a global leader in onsite energy management technology, today reported its Q1 fiscal 2020 financial results for the three months ended December 31, 2019. A conference call to discuss the results is set for 10:00am EST today (dial in details below). A complete set of Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.

Financial Highlights for the three months ending December 31, 2019

• Revenue of $1.0 million, a 149% year-over-year increase from $0.4 million reported in Q1 2019;
• Gross margin of 21% down from 81% in the quarter a year-ago, due to anticipated higher installation costs with our first several deals in New York City;
• Adjusted EBITDA loss of $1.3 million versus $1.0 million loss in Q1 2019;
• Net loss of $1.5 million versus the $1.1 million loss in Q1 2019;
• Cash of $4.2 million, no debt, and $6.4 million of working capital at December 31, 2019.

Management Commentary
“During the first quarter of 2020, 64% of revenues came from the U.S. with the remaining 36% from Canada,” said CEO Randy Buchamer. “This is evidence that we’ve overcome many of the challenges we faced selling into the U.S. market. We accomplished this in part by introducing SmartGATE Insights into our market in November, shifting our strategy from selling a product to selling an onsite energy management platform for commercial building portfolios. As a metering and data analytics solution, SmartGATE Insights provides building owners with visibility into their buildings’ power quality metrics. Customers and prospects have been very receptive to Insights, and initial interest suggests that we could see shortened sales cycles for our flagship SmartGATE units. Legend’s balance sheet remains strong, giving us the ability to drive platform adoption, which is anticipated to accelerate in the second half of the year.”

Financial summary for the three months ended December 31, 2019 and 2018.

	Three months ended December 31,
(Cdn$, unless noted otherwise)	2019	2018	Change
Revenue	1,003,329	403,400	149%
Cost of sales	789,229	76,832	927%
Gross margin1	214,100	326,568	(34)%
Gross margin %1	21%	81%	(60)%
Operating expenses	(1,620,431)	(1,484,843)	9%
Adjusted EBITDA2	(1,325,161)	(1,048,352)	(26)%
Net loss	(1,482,198)	(1,091,332)	36%

¹ Gross margin is based on a blend of both equipment and installation revenue.