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Legend Power Systems Reports Q4 F2023 Financial Results
Wednesday, January 3, 2024Company Profile | Follow Company
Burnaby, BC, January 3, 2024--(T-Net)--Legend Power Systems (TSXV: LPS), a leader in commercial electrical system solutions, has reported its financial results for the three months ended September 30, 2023 ("Q4 F2023").
All dollar figures are quoted in Canadian dollars.
Q4 F2023 Highlights
Randy Buchamer, CEO, Director, Legend Power
"Our focus this quarter remained around advancing sales opportunities and we currently have new late-stage large deals with very strong financial viability," said Randy Buchamer, Legend Power Systems CEO.
"We have passed the critical stage of having to prove our solutions work. We have successfully completed technology evaluations in numerous markets, and we are focusing on helping partners and prospects develop deployment plans. We have many prospects deciding on where and how to deploy SmartGates and our order visibility is clearer and stronger than ever."
Q4 F2023 Operational Highlights
Q4 F2023 Financial Highlights
Financial summary for the three and nine months ended September 30, 2023 and 2022
|
Three months ended September 30, |
Years ended September 30, |
||||
(Cdn$, unless noted otherwise) |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
Revenue |
159,114 |
578,828 |
(73)% |
1,106,093 |
2,118,033 |
(48)% |
Cost of sales |
164,788 |
517,931 |
(68)% |
911,912 |
1,913,680 |
(52)% |
Gross margin1 |
(5,674) |
60,897 |
(109)% |
194,181 |
204,353 |
(5)% |
Gross margin %1 |
(4)% |
11% |
(15)% |
18% |
10% |
8% |
Operating expenses |
(1,001,073) |
(1,172,330) |
(15)% |
(4,430,493) |
(5,570,858) |
(20)% |
Adjusted EBITDA2 |
(926,030) |
(893,159) |
4% |
(3,695,371) |
(4,561,706) |
(19)% |
Net loss |
(969,729) |
(1,091,099) |
(11)% |
(4,181,902) |
(5,346,171) |
(22)% |
1 Gross margin is based on a blend of both equipment and installation revenue.
2 Adjusted EBITDA is a non-IFRS financial measure. See EBDITA Reconciliation for details.
Revenue for the fourth quarter of 2023 was $159,114 compared with $578,828 in the same quarter of fiscal 2022. The lower revenue during Q4 of fiscal 2023 was primarily due to a decrease in the number of completed installation of SmartGATE units.
Revenue for the year ended September 30, 2023, was $1,106,093 down from $2,118,033 in fiscal 2022. The lower revenue in fiscal 2023 is due to a lower number of units sold; however, both deal size and average revenue per unit are increasing.
Gross margin in the fourth quarter of fiscal 2023 was negative 4%, compared with 11% in the same quarter of fiscal 2022. Negative margins in Q4 of fiscal 2023, were the result of allocated fixed costs incurred. Gross margins normalized for these allocated fixed costs would've been 33%. Gross margin for the year ended September 30, 2023 was 18% compared to 10% in fiscal 2022. The increase in gross margin experienced in fiscal 2023 was due to an increase in average selling price of the SmartGATE units.
The Company's operating expenses for the fourth quarter of fiscal 2023 were $1,001,073, down from $1,172,330 in the same quarter of fiscal 2022. Operating expenses for the year ended September 30, 2023 was $4,430,493 versus $5,570,858 in fiscal 2022. The primary cause for the decrease was lower salaries and consulting costs as a result of internal cost cutting measures.
Adjusted EBITDA for the fourth quarter of fiscal 2023 was negative $885,809, compared with negative $893,159 in the same quarter of fiscal 2022. For the year ended September 30, 2023, adjusted EBITDA was negative $3,655,150 compared to negative $4,561,706 in fiscal 2022.
Net loss for the fourth quarter of fiscal 2023 was $969,729, compared with a net loss of $1,091,099 in the same quarter of fiscal 2022. Higher gross margin, and cost cutting measures taken resulted in a lower net loss year-over-year.
A complete set of Financial Statements and Management's Discussion & Analysis has been filed at www.sedarplus.ca.
About Legend Power Systems Inc.
Legend Power Systems Inc. (https://legendpower.com/) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance.
Legend Power's proven solutions support proactive executive decision-making in a complex and volatile business and energy environment. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend Power's unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.
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 information", 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. [ MORE ] |
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