Legend Power Reports Q1 Fiscal 2020 Financial Results - Seite 2

² Adjusted EBITDA is a non-IFRS financial measure. See EBDITA Reconciliation for details.

Revenue for the first quarter of 2020 was $1,003,329, a 149% increase from $403,400 in the first quarter of fiscal 2019. The increase is primarily due to a large number of installations reaching substantial completion during the three months ended December 31, 2019 and a comparatively low amount of revenue recognized in the same period of the prior year.

Gross margin in the first quarter of fiscal 2020 was 21%, down from 81% in the first quarter of fiscal 2019. The Company’s long-term average gross margin has been approximately 45%. The significantly lower gross margins experienced in the first quarter of 2020 were due primarily to two projects completed for an early adopter, marquee, New York City customer. Early projects in new regions typically involve higher overall install costs, in particular electrical contractor costs due to a significant learning curve in understanding the nuances of installing a new and unfamiliar technology. The lower margin is also due to a disproportionate amount of total revenue derived from installation services (89%), which has historically yielded lower gross margins. The gross margin achieved in Q1 of fiscal 2019 was significantly above the Company’s long-term average due to an inventory valuation adjustment which impacted cost of goods sold during the period.

Adjusted EBITDA for the first quarter of fiscal 2020 decreased by 26% to negative $1,325,161 from negative $1,048,352 in the first quarter of fiscal 2019. The decrease in EBITDA is due primarily to lower gross margin and higher operating costs incurred during Q1 of fiscal 2020.

Net loss for the first quarter of fiscal 2020 was $1,482,198, an increase of 36% from the $1,091,332 loss reported in the first quarter of 2019. In spite of significantly higher revenue in Q1 of fiscal 2020, the combination of lower gross margin, higher operating costs and an inventory write-down caused the increase in net loss compared with the same quarter in fiscal 2019. 

The Company’s operating expenses for the quarter ended December 31, 2020 were $1,620,431, up from $1,484,433 in the same period of 2019. The increase of $135,998 is due primarily to higher salaries and consulting fees, professional fees and foreign exchange loss offset by lower general and overhead and selling costs.

CONFERENCE CALL DETAILS:

The Company has scheduled a conference call to provide a business update and discuss its first quarter of fiscal 2020 financial results on Thursday, February 27, 2020 at 10:00AM EST (7:00AM PST). The call will be hosted by Randy Buchamer, President & Chief Executive Officer and Steve Vanry, Chief Financial Officer.