Kontrol Technologies Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Rhea-AI Summary

Kontrol Technologies (KNRLF) has released its Q4 and fiscal year 2024 financial results. The company reported a significant gain of $13.3 million from selling air monitoring assets in H1 2024, which helped clear all interest-bearing bank debt. However, revenues declined to $1.7 million in Q4 2024 (vs $5.1M in Q4 2023) and $10.9 million for FY2024 (vs $18.8M in FY2023).

The company maintained a strong cash position of $12.6 million in cash and marketable securities as of December 31, 2024. Gross margin slightly decreased to 56% in FY2024 from 61% in FY2023. Net income from continuing operations reached $12.2 million in FY2024, though Adjusted EBITDA was negative at $(525,458) compared to $3.6M in FY2023.

The company continues to service approximately 400 buildings and implemented a share buyback program, repurchasing 1,846,500 common shares for $450,000 during 2024.

Positive

• Gained $13.3 million from sale of air monitoring assets
• Eliminated all interest-bearing bank debt
• Strong cash position of $12.6 million
• Net income from continuing operations of $12.2 million in FY2024
• Maintains high-margin service contracts with 400 buildings

Negative

• Q4 2024 revenue declined 66% to $1.7M from $5.1M in Q4 2023
• FY2024 revenue dropped 42% to $10.9M from $18.8M in FY2023
• Gross margin decreased to 56% from 61% year-over-year
• Negative Adjusted EBITDA of $(525,458) vs positive $3.6M in prior year

TORONTO--(BUSINESS WIRE)-- Kontrol Technologies Corp. (CBOE.CA:KNR) (OTCQB:KNRLF) (FSE:1K8) ("Kontrol Technologies" or "Kontrol" or "Company") announces its results for the three months and fiscal year ended December 31, 2024. A complete set of the Financial Statements and Management's Discussion & Analysis have been filed on SEDAR (www.sedarplus.ca).

Fourth Quarter and Fiscal Year 2024 Highlights

• As at December 31, 2024 the Company’s aggregate cash and marketable securities balance was $12.6 million.
• A gain on sale of $13.3 million was recognized during the first half of 2024 in connection with the sale of air monitoring and compliance related assets.
• In the first half of 2024, the Company paid off all interest-bearing bank debt and completed the sale of air testing, air monitoring and compliance related assets which raised significant internal cash.
• Revenues for the three months ended December 31, 2024 were $1.7 million, compared to $5.1 million for the same quarter in the prior year; Revenues for the year ended December 31, 2024 were $10.9 million, compared to $18.8 million in the prior year.
• Gross margin for the year ended December 31, 2024 was 56%, compared to 61% in the prior year.
• Net income from continuing operations for the year ended December 31, 2024 was $12.2 million compared to $(381) in the prior year. The current fiscal year includes gain on a sale of assets.
• Adjusted EBITDA from continuing operations for the year ended December 31, 2024 was negative $(525,458) compared to $3.6 million in the prior year.

Strategic Plan 2025

The Company’s operating platform continues to deliver high gross margins and sticky revenues in the service and maintenance of complex heating and cooling systems for approximately 400 buildings. The Company will focus on organic growth and acquisitions which are complimentary to the existing business.

Normal Course Issuer Bid

During the 2024 fiscal year, the Company announced that approvals were granted for a new Normal Course Issuer Bid program to buy back common shares of Kontrol through the Cboe Canada exchange. The Company repurchased 1,846,500 common shares for a total of $450,000 during the year ended December 31, 2024. The Normal Course Issuer Bid was announced on April 1, 2024, and will end on April 4, 2025.

2024 Financial Summary

Financial Results	Three months ended			For the years ended
	Dec 31, 2024	Dec 31, 2023		Dec 31, 2024	Dec 31, 2023
Revenue	$1,749,808	$5,145,668		$10,928,814	$18,828,380
Gross profit	$858,702	$2,872,762		$6,135,882	$11,562,668
Net income (loss) from continuing operations	$148,582	$(294,882)		$12,197,640	$(381)
Gain from discontinued operations	-	-		-	$21,786,635
Net income (loss) and comprehensive income (loss)	$148,582	$(294,882)		$12,197,640	$21,786,254
Basic and diluted EPS - continuing operations	$0.00	$(0.01)		$0.21	$0.00
Basic and diluted EPS - discontinued operations	-	-		-	$0.39
Add/Deduct for Adjusted EBITDA reconciliation - continuing operations:
Amortization and depreciation	$156,957	$733,487		$772,189	$1,814,382
Finance expense (income)	$(33,808)	$451,401		$173,021	$1,670,156
Impairment of assets	-	$2,268,753		-	$2,268,753
Gain on sale of assets	-	$(2,447,038)		$(13,281,812)	$(2,447,038)
Revaluation of marketable securities	$(21,738)	-		$(21,738)	-
Tax recovery	$(609,052)	$(88,914)		$(609,052)	$(88,914)
Share based compensation	$68,915	$133,679		$244,294	$380,684
Adjusted EBITDA - continuing operations	$(290,144)	$756,486		$(525,458)	$3,597,642

Adjusted EBITDA is a non-International Financial Reporting Standards ("IFRS") measure used by management that is not defined by IFRS. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA provides meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

"Adjusted EBITDA" is calculated as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, acquisition related expenses, listing expense, gain or loss on sale of assets, revaluation and impairment of assets.

Readers are cautioned that Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company's Adjusted EBITDA may not be comparable to similar measures used by any other company.

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 provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings. 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.sedarplus.ca.

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

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 Kontrol 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 those technologies will not prove as effective as expected; those 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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250331111819/en/

Kontrol Technologies Corp.

Paul Ghezzi, CEO

info@kontrolcorp.com

Tel: (905) 766.0400

Source: Kontrol Technologies Corp.

FAQ

What was Kontrol Technologies (KNRLF) revenue for Q4 2024?

Kontrol Technologies reported Q4 2024 revenue of $1.7 million, down from $5.1 million in Q4 2023.

How much did KNRLF gain from asset sales in 2024?

KNRLF recognized a $13.3 million gain from selling air monitoring and compliance related assets in the first half of 2024.

What is KNRLF's cash position as of December 31, 2024?

KNRLF held $12.6 million in cash and marketable securities as of December 31, 2024.

How many shares did KNRLF repurchase in 2024?

KNRLF repurchased 1,846,500 common shares for a total of $450,000 during 2024 under its Normal Course Issuer Bid program.

What was KNRLF's gross margin for fiscal year 2024?

KNRLF's gross margin was 56% for fiscal year 2024, compared to 61% in the previous year.