Kontrol Technologies Announces Q2 2021 Financial Results

Revenue growth of 83% year-over-year and Record earnings performance with positive net income

TORONTO, Aug. 16, 2021 /PRNewswire/ - Kontrol Technologies Corp. (NEO: KNR) (OTCQB: KNRLF) (FSE: 1K8) ("Kontrol Technologies" or "Kontrol" or the "Company") a leader in smart buildings and cities through IoT, Cloud and SaaS technology, announces the release of its financial results for the three- and six-month periods ended June 30, 2021.  A complete set of the Financial Statements and Management's Discussion & Analysis have been filed on SEDAR (www.sedar.com).

"Our execution on our strategic and operational priorities resulted in continued revenue growth as well as record EBITDA and positive net income," said Paul Ghezzi, CEO of Kontrol Technologies. "Kontrol's software, services, and project-based business enables our core business to expand organically across multiple revenue streams, and our financial discipline allows us to add accretive and synergistic acquisitions. Our team's focus on internal innovation makes Kontrol uniquely positioned to scale our patented smart building technologies and execute our go to market BioCloud technology rollout while expanding corporate partnerships. Supported by a strong balance sheet, with net working capital and total equity having increased to record levels in the second quarter, we look forward to continued growth in the latter half of 2021 as we work to generate sustainable value for our stakeholders."

Highlights

• Revenues for the second quarter of 2021 were $4.2 million, an increase of 83% from the same quarter in the prior year
• Revenues for the six months ended June 30, 2021, were $7.5 million, up 49% over the same period in the prior year
• Positive net income in the second quarter of 2021 for the first time in Kontrol's history
• Adjusted EBITDA* for the second quarter of 2021 was $1.1 million, an increase of 175% from the same quarter in the prior year
• Record Adjusted EBITDA* for the six months ended June 30, 2021, was $2.2 million, an increase of 246% from the same period in the prior year
• Strong net working capital position of $8.9 million as at June 30, 2021
• Kontrol provided BioCloud real-time viral detection technology for the Canadian Olympic Committee at Tokyo 2020
• Closed an $8.5 million private placement with institutional investors
• Paid off $3 million senior secured debt obligation in advance of maturity date
• Reduced debt levels and associated interest costs which have a direct benefit to net income
• Subsequent to Q2 2021, the Company announced the completion of the acquisition of Global HVAC & Automation Inc.
• Subsequent to Q2 2021, the Company received the final $800,000 from the Ontario Together Fund for its BioCloud technology

Corporate Outlook

Kontrol anticipates full year revenue for 2021 will be in the $38 million range, up from $13 million in 2020, and anticipates 2021 Adjusted EBITDA* of approximately $3.7 Million.

Q2 2021 Financial Summary

Second Quarter Conference Call

Paul Ghezzi, CEO and Claudio Del Vasto, CFO, will host a conference call on Monday, August 16^th, 2021, at 4:30 PM EST to discuss Kontrol's second quarter 2021 financial results. To participate, please use the following information:

Please dial in at least 5 minutes before the call start time to ensure timely participation.

A recording of the Q2 2021 financial results conference call is available here:

About Kontrol Technologies Corp.

Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. Kontrol Technologies provides a combination of software, hardware, and service solutions to its customers to improve energy management, air quality and continuous emission monitoring.

Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and by reviewing its profile on SEDAR at www.sedar.com

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Non-IFRS Financial Measures

The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, and acquisition related expenses. The Company believes Adjusted EBITDA is a useful measure as it provides information to management about the operating and financial performance of the Company and its ability to generate operating cash flow to fund future working capital needs, as well as future growth. Adjusted EBITDA may also be used by investors and analysts for the purpose of valuing the Company. Readers are cautioned that these non-IFRS definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to net earnings determined in accordance with IFRS or as indicators of performance, liquidity, or cash flows.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. 

Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that sufficient capital will be available to the Company and that technology will be as effective as anticipated.

However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking
statements. Such risks include, but are not limited to, that sufficient capital and financing cannot be obtained on reasonable terms, or at all, that technologies will not prove as effective as expected, that customers and potential customers will not be as accepting of the Company's product and service offering as expected, and government and regulatory factors impacting the energy conservation industry. Kontrol BioCloud is an air quality technology and not a medical device. The Company is not making any express or implied claims that its product has the ability to eliminate, cure or contain the COVID-19 (or SARS-2 Coronavirus).

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date.  Kontrol does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

SOURCE Kontrol Technologies Corp.

Related Links

https://kontrolcorp.com/