Electrovaya Reports Q3 FY2021 Financial Results
Financial Highlights:
- Revenue for Q3 FY2021 was
$1.9 million (C$2.4 million ), compared to$4.8 million (C$6.0 million ) in the fiscal third quarter endedJune 30, 2020 ("Q3 FY2020"). Management believes that the year-over-year decline was primarily due to a reduced order volume resulting from a transition to the OEM Strategic Supply Agreement, which was signed inDecember 2020 . This agreement brought a new corporate sales team focused on large corporations, and management believes the sales cycle is relatively long for these customers. Continued disruptions to the supply chain caused by the COVID-19-pandemic, as well as component shortages, also impacted the Company. -
Revenue for YTD FY2021 was
$7.4 million (C$9.3 million ), compared to$7.6 million (C$9.5 million ) for the nine months endedJune 30, 2020 ("YTD FY2020"). - It appears that the delays discussed above are being mitigated, as the Company received a number of significant purchase orders late in Q3 FY2021 and early in the fiscal fourth quarter, as noted in the business highlights below. The majority of the new orders were generated through the OEM sales channel, but the Company also received a significant new order through its direct sales channel. Orders were received from both new and repeat customers.
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As at
June 30, 2021 , the Company had$0.9 million (C$1.1 million ) of cash and had drawn$2.8 million (C$3.5 million ) from its$5.6 million (C$7 million ) working capital facility, leaving a further$2.8 million (C$3.5 million ) undrawn. The Company also had$2.5 million (C$3.1 million ) of accounts receivable and$4.9 million (C$6.1 million ) of inventory. -
The Company's financial position improved during YTD FY2021. As at
June 30, 2021 , current assets increased by 40% compared to the end of the 2020 fiscal year, while current liabilities were reduced by 12% and the equity deficiency was reduced by 61%.
Business Highlights:
- On
June 16, 2021 ,Electrovaya announced that the Company and its officers reached an agreement with the Administrator ofLitarion GmbH ("Litarion") to mutually settle all potential claims as part of the termination of Litarion's insolvency proceedings.Electrovaya agreed to pay €221,000 as full and final settlement, which includes payment for certain intellectual property received by the Company. The payment is to be made in instalments over a nine-month period. -
On
June 23, 2021 , the Company announced that it has established a new operating division:Electrovaya Labs .Electrovaya Labs will focus on research, development, and commercialization of some of the fundamental technologies and intellectual property atElectrovaya . One key area of focus is the development of a solid-state battery. -
On
July 14, 2021 ,Electrovaya announced that it has extended the term to maturity of itsC$6 million promissory notes with a Canadian financial institution fromJune 30, 2021 toDecember 31, 2021 . The effective interest rate was reduced from 11% to 10%. -
On
July 20, 2021 , the Company announced the following business updates:Electrovaya received its first purchase orders from one of the world's largest e-commerce companies. The orders were valued at more thanUS$2 million and received throughElectrovaya's OEM channel under its Strategic Supply Agreement.-
The Company received repeat orders valued at approximately
US$1.5 million through its OEM partner from two of the world's largest food manufacturing firms, headquartered inthe United States andEurope , respectively; and -
The Company received a purchase order worth approximately
C$1 million from one ofNorth America's largest food processing firms, headquartered inCanada . This order came throughElectrovaya's direct sales channel.
- The Company continues to make significant progress in the e-bus market and anticipates increased revenue from this segment in the 2022 fiscal year.
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The Company is making progress with its capital market initiatives in
Canada andthe United States . Management and the Board of Directors will carefully monitor the capital markets and the benefits and risks to the Company before a decision is made regarding the next steps toward a potential listing on theNASDAQ Stock Market .
FY2021 Financial Outlook and Impact of COVID-19:
Notwithstanding short-term challenges, management believes its business outlook is strong and intends to build on the progress to date in FY2021. Uncertainty surrounding the duration and potential outcomes of the COVID-19 pandemic appears to be diminishing as vaccinations increase, but management is currently unable to predict the future impacts of the pandemic on the Company's operations and financial results. Furthermore, while demand for lithium ion batteries from the materials handling electric vehicle sector is emerging, there is associated uncertainty with the future rate of growth as early adopters start their purchasing decisions. . Management will therefore not be providing a short-term financial outlook at this time.
A revised financial outlook will not be provided unless and until such a time as it is possible to make reasonable estimates of the Company's financial results. See "Forward-Looking Statements".
Summary Financial Results
(Expressed in thousands of
1 Non-IFRS Measure: Adjusted EBITDA is defined as gain (loss) from operations, plus finance costs, stock-based compensation costs and depreciation.Management believes Adjusted EBITDA is a useful measure in providing investors with information regarding financial performance and is an accepted measure in our industry. It is not a measure of financial performance under IFRS, and may not be defined and calculated in the same manner by other companies and should not be considered in isolation or as an alternative to Income (loss) from operations.
Summary Operating Results - Nine Months Ended
(Expressed in thousands of
Summary Financial Position
(Expressed in thousands of
The Company's complete Financial Statements and Management Discussion and Analysis for the third quarter ended
Conference Call Details:
The Company will hold a conference call on
Time (ET) to discuss the
US and
International: + 1(201) 689-8345
Direct webcast:
https://78449.themediaframe.com/dataconf/productusers/eflvf/mediaframe/46287/indexl.html
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
For more information, please contact:
Investor Contact:
Telephone: 905-855-4618
Email: jroy@electrovaya.com
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Forward-Looking Statements
This press release contains forward-looking statements, including statements that relate to, among other things, the length of customers' sale cycle in the OEM sales channel and the potential increase in future revenue from that channel as sales are consummated, the effect of the ongoing global COVID-19 public health emergency on the Company's operations, its employees and other stake holders, including on customer demand, supply chain, and delivery schedule, the operations and strategic direction of
SOURCE:
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