Again a very positive Quarter report plus significant futurescenario
laid out by management.Let's hope they achieve their goals.
/ Kontrol Energy Corp. (CSE:KNR)(OTCQB:KNRLF)(FSE:1K8) ("Kontrol" or "Company") a leader in the energy efficiency sector through IoT, Cloud and SaaS technology announces its financial results for the three months ended March 31st, 2020.
A complete set of Financial Statements and Management's Discussion & Analysis will be filed on SEDAR (www.sedar.com) on June 1st, 2020. A call to discuss the financial results has been scheduled for Monday, June 1st, 2020 at 4:30pm (EST). See details below.
"In a challenging business environment, we continue to execute on our vision and strategic plan," says Paul Ghezzi, CEO Kontrol Energy. "We have been operating as an essential service provider, through the COVID-19 crisis, meeting the needs of our existing customers and expanding into new markets. We have been very focused on managing our costs and ensuring fiscal discipline across our operating platform and are pleased that we have been able to deliver positive EBITDA in Q1. The Company does not require to raise capital for daily business operations and following Q1 has entered into a definitive Share Purchase Agreement for an accretive acquisition to continue our growth."
Highlights
• Revenue of $2.8 million
• EBITDA of $241,343
• Significant operating expense reductions of approximately $250K in Q1
• Gross margin increased to 61% up from 51% for the comparative quarter in prior year
• Announced signing of a new acquisition subsequent to Q1 with financial closing anticipated in Q2
• A portion of our Q1 revenues related to industrial customers were delayed and could not be completed in Q1 resulting in lower than anticipated revenues. As industrial facilities in Canada and the USA have commenced their re-opening in May 2020, following a period of shutdown related to COVID-19, these revenues are anticipated to be realized over the balance of 2020 calendar year.
• Q1 2020 Financial Highlights
• In Q1 the Company took decisive action to reduce all variable and discretionary costs associated with project delivery and on-site customer upgrades. This has allowed the Company to achieve approximately $250K in costs savings in Q1 to offset project revenues that have been impacted by plant shutdowns. A portion of our Q1 revenues related to industrial customers were delayed and could not be completed in Q1 resulting in lower than anticipated revenues. As industrial facilities in Canada and the USA have commenced their re-opening in May 2020, following a period of shutdown related to COVID-19, these revenues are anticipated to be realized over the balance of 2020 calendar year.
• FY 2020 Outlook
• Despite the challenges presented by COVID-19 in Q1 the Company anticipates continued growth and assuming we are successful in closing our target acquisition, we anticipate delivering our strongest year of revenue and earnings in fiscal year 2020. The Company is updating its previously 2020 anticipated revenue and earnings target to $18 to $20 Million in revenue and $1.5 Million to $2 million of EBITDA.
• In Q2 of 2020 the Company entered into a Memorandum of Understanding ("MOU") and 2 pilots with a European Original Equipment Manufacturer ("OEM") in the HVAC sector. The goal of the pilots is to establish Kontrol's enterprise software for energy and facilities management with the OEM and build a white label solution. The OEM has its HVAC technology deployed across 20,000 locations globally.
• In Q2 of 2020 the Company also announced that it will be working with its building owner clients to use its energy software to better manage heating, cooling and ventilation systems in real-time in relation to COVID-19. There is growing concern in the broader economy that poorly managed buildings could be spreading COVID-19 inadvertently through poor air quality, poor air circulation and dense population. Kontrol will be deploying software and hardware solutions which include ultra-violet light solutions and building automation managed in real-time.
• * Adjusted EBITDA is a non-IRFS financial measure. The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, and acquisition related expenses."