GreenPower Motor Company Inc. Q4 FY2024 earnings call

• GreenPower has two fully operational production facilities on coast-to-coast. It has transitioned to a production plan driven by customer orders, moving from manufacturing to inventory. • Completed build-out of South Charleston, WV facility, delivered first all-electric school buses from there. Commenced manufacturing of BEAST Type D school buses. • GP Truck Body made investments to improve delivery time of upfitting EV Star Cab & Chassis with truck bodies, developing new truck body designs like REEFERX. • School bus sales saw a fourfold increase in 2024 fiscal year, with live orders for over 100 school buses and a qualified lead pipeline of over 160, representing potential $100 million in revenue. • Introduced Mega BEAST school bus with class-leading range, V2G capability, etc.

For the year ended March 31, 2024, GreenPower generated revenues of $39.3 million with cost of sales of $33.9 million, yielding a gross profit of $5.4 million. The company has two production facilities: one in Porterville, California, and one in South Charleston, West Virginia. In the school bus segment, GreenPower delivered 31 Type D school buses, 10 Type A Nano BEAST and Nano BEAST Access school buses, etc. In the commercial vehicle segment, sales of upfitted EV Star line increased by nearly 50% during the fiscal year from 79 to 117 vehicle deliveries. Revenue contribution breakdown isn't explicitly given in detail but focuses on school buses and commercial vehicles.

• Anticipates school bus deliveries to continue growing in the current fiscal year with live orders for over 100 school buses. • Expect EPA contract activity in the current fiscal year. • Working on production financing through revolving loan facility and EDC guarantees to support production pursuant to customer orders. • Aim to have deliveries of the 37 incremental school buses ordered from West Virginia within the current fiscal year.

• Delays in EPA contract awards which have impacted revenue from EPA-funded deals in the past year. • Charging infrastructure challenges faced by school districts which can impede delivery of school buses. • Disconnect between EPA announcements and actual contract issuance, causing delays in revenue realization from certain initiatives.

Q: Talk about tangible steps in shifting to customer order-driven production.

A: In West Virginia, managing supply chain for CKD production, and obtaining production financing like revolving loan facility and EDC guarantees.

Q: Update on order book, timing of deliveries for the 88 incremental school buses.

A: 37 are well in process and expected to be delivered within the current fiscal year, with live orders over 100 and qualified leads having funding identified but sometimes waiting on contracts or infrastructure.

Q: Challenges in medium-term with school bus contracts, especially charging infrastructure and capital access.

A: Charging infrastructure is a big impediment, with some school districts lacking proper scoping and installation, and delays in EPA contracts causing disconnect.

Q: Capacity to serve demand for school buses, especially Type A school bus.

A: Type A school bus is a purpose-built category with EV Star Cab & Chassis platform, using Level 2 chargers which are easier to install and less power-intensive.

Q: Balance sheet and working capital for ramping school bus opportunity.

A: Expect continued reduction in finished goods proportion and lower accounts receivable percentage due to customer order-driven production.