VANCOUVER, Feb. 29, 2016 /CNW/ - Legend Power Systems Inc.
(TSXV: LPS) today reported its first-quarter 2016 financial results
for the three-months ended December 31,
2015. Currency amounts are in Canadian Dollars.
Q1 was a breakthrough quarter in many respects as we achieved
our highest ever quarterly revenue, secured several "brand" name
accounts in existing and new verticals, and closed a $1.66 million equity financing.
Product acceptance has continued to grow in the Ontario marketplace and Legend received
product endorsements from many new "key influencers" who advise
decision makers in our target markets as to which energy savings
products they should adopt.
Fiscal Q1 2016 Financial and Business Highlights:
- $778,352 in revenue; (record
sales quarter)
- 8 unique transactions
- 12 units sold
- $64,500 average deal size
- 55% gross margin (product and installation)
- received customer orders in all "sweet spot" verticals;
commercial real estate (2), retail (1), education (2), hospitality
(2), condo (1)
- Achieved excellent results as one of the largest Canadian
property management firms realized 8% energy savings with Legend's
Harmonizer in their first building.
- New business development managers (sales) all secured at least
their first new order.
- Secured new initial orders with accounts having potential for
national rollouts within their network.
- Obtained "Market Partners Network" status for Con Edison's
Commercial & Industrial Energy Efficiency Program, which
provides Legend the opportunity to communicate our skills and
project experience to Con Edison's significant customer base. Con
Edison is a top 10 U.S. utility serving the boroughs of
New York and Westchester
County.
- Now have over 8 "key influencers" working with Legend to market
the Harmonizer in the Ontario
marketplace.
The financial highlights for the quarter are provided
below:
|
Three-months
ended
December 31
|
|
|
(Cdn$, unless noted
otherwise)
|
2015
|
2014
|
Change
|
|
Revenue
|
778,352
|
152,665
|
409.8%
|
|
Cost of
sales
|
350,936
|
87,422
|
301.4%
|
|
Gross
margin
|
427,416
|
65,243
|
555.1%
|
|
Gross margin
%
|
54.9%
|
42.7%
|
12.2%
|
|
Operating
expenses2
|
(675,597)
|
(656,875)
|
2.9%
|
|
Operating expenses as
% of sales
|
86.8%
|
430.3%
|
(343.5)%
|
|
Net (loss)
|
(247,940)
|
(689,226)
|
(64.0)%
|
|
EBITDA1
|
(87,491)
|
(498,874)
|
82.5%
|
|
1 EBITDA;
for the three-months ended December 31, 2015 and 2014, we are
disclosing EBITDA, which is a non-IFRS financial measure, as a
supplementary indicator of operating performance. We define EBITDA
as net income or loss before interest, income taxes, amortization,
foreign exchange amounts and non-cash stock based
compensation.
|
|
2 Before other items.
|
A complete set of the December 31,
2015 Interim Financial Statements and Management's
Discussion & Analysis are available on Legend's corporate
website. To view these documents, visit:
http://legendpower.com/investors/financial-statements/. Both
documents are also filed on SEDAR (www.sedar.com (link is
external)).
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legendpower.com) markets a
proprietary device, the 'Harmonizer' that helps individual
buildings reduce energy consumption through the utility-proven
concept of Conservation Voltage Reduction, (CVR). Legend provides
customers risk free energy savings, improves the value of their
physical assets, and enhances their sustainability efforts. As an
application with demand side benefits, Legend is also a key
contributor toward utility conservation goals. Legend was
recognized as the top performing cleantech company on the TSX
Venture Exchange in 2015.
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, 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.sedar.com. 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 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.
SOURCE Legend Power Systems Inc.