Tantalus Systems Holding Inc. Reports Financial Results for Three and Nine Months Ended September 30, 2024
Tantalus Systems reported strong Q3 2024 financial results with record-breaking sales orders of $40.2 million for the first nine months, showing 46% growth year-over-year. Revenue increased 14% to $11.6 million, with the Utility Software Applications segment contributing 38%. The company maintained a healthy gross profit margin of 56% and generated Adjusted EBITDA of $0.6 million. Cash position improved to $10.3 million from $5.2 million at year-end 2023. The company expanded its utility customer base by 26 to reach 314 total users, while Annual Recurring Revenue grew 11% to $12.2 million. Notable product developments include UL and FCC certifications for TRUSense Gateway and launch of TRUFlex Protect software.
Tantalus Systems ha riportato risultati finanziari forti per il terzo trimestre del 2024, con ordini di vendita da record pari a 40,2 milioni di dollari per i primi nove mesi, mostrando una crescita del 46% rispetto all'anno precedente. I ricavi sono aumentati del 14% a 11,6 milioni di dollari, con il segmento delle Applicazioni Software per Utility che ha contribuito per il 38%. L'azienda ha mantenuto un sano margine di profitto lordo del 56% e ha generato un EBITDA rettificato di 0,6 milioni di dollari. La posizione di liquidità è migliorata a 10,3 milioni di dollari, rispetto ai 5,2 milioni di dollari di fine 2023. L'azienda ha ampliato il suo bacino di clienti utility di 26, raggiungendo un totale di 314 utenti, mentre il Ricavo Annuale Ricorrente è cresciuto dell'11%, raggiungendo 12,2 milioni di dollari. Sviluppi di prodotto significativi includono le certificazioni UL e FCC per il Gateway TRUSense e il lancio del software TRUFlex Protect.
Tantalus Systems informó resultados financieros sólidos para el tercer trimestre de 2024, con órdenes de ventas récord de 40,2 millones de dólares en los primeros nueve meses, mostrando un crecimiento del 46% en comparación al año anterior. Los ingresos aumentaron un 14% a 11,6 millones de dólares, con el segmento de Aplicaciones de Software para Utilidades contribuyendo con el 38%. La empresa mantuvo un saludable margen de beneficio bruto del 56% y generó un EBITDA ajustado de 0,6 millones de dólares. La posición de efectivo mejoró a 10,3 millones de dólares desde 5,2 millones de dólares a finales de 2023. La compañía amplió su base de clientes de utilidades en 26, alcanzando un total de 314 usuarios, mientras que los Ingresos Anuales Recurrentes crecieron un 11% hasta 12,2 millones de dólares. Los avances significativos en productos incluyen las certificaciones UL y FCC para el Gateway TRUSense y el lanzamiento del software TRUFlex Protect.
Tantalus Systems는 2024년 3분기 강력한 재무 실적을 보고했으며, 기록적인 판매 주문 4천2백만 달러로 지난 9개월 동안 전년 대비 46% 성장했습니다. 수익은 14% 증가하여 1천1백60만 달러에 이르렀으며, 공공 유틸리티 소프트웨어 애플리케이션 부문이 38% 기여했습니다. 회사는 건강한 56% 총 이익률을 유지했으며, 조정된 EBITDA는 60만 달러를 기록했습니다. 현금 보유액은 2023년 연말의 520만 달러에서 1천30만 달러로 증가했습니다. 고객 기반이 26명 확대되어 총 사용자 수가 314명에 도달했으며, 연간 지속적 수익은 11% 성장하여 1천2백20만 달러가 되었습니다. 주목할 만한 제품 개발로는 TRUSense 게이트웨이에 대한 UL 및 FCC 인증과 TRUFlex Protect 소프트웨어의 출시가 있습니다.
Tantalus Systems a rapporté de solides résultats financiers pour le troisième trimestre 2024, avec des commandes de vente record s'élevant à 40,2 millions de dollars pour les neuf premiers mois, affichant une croissance de 46% par rapport à l'année précédente. Le chiffre d'affaires a augmenté de 14% pour atteindre 11,6 millions de dollars, le segment des Applications de Logiciels Utilitaires contribuant à hauteur de 38%. L'entreprise a maintenu une marge brute de profit saine de 56% et a généré un EBITDA ajusté de 0,6 million de dollars. La position de liquidités s'est améliorée, atteignant 10,3 millions de dollars contre 5,2 millions de dollars à la fin de 2023. L'entreprise a élargi sa base de clients utilitaires de 26 pour atteindre un total de 314 utilisateurs, tandis que le Revenu Annuel Récurrent a augmenté de 11% pour atteindre 12,2 millions de dollars. Les développements de produits notables incluent les certifications UL et FCC pour le passerelle TRUSense et le lancement du logiciel TRUFlex Protect.
Tantalus Systems berichtete über starke Finanzergebnisse für das dritte Quartal 2024 mit rekordverdächtigen Verkaufsaufträgen von 40,2 Millionen US-Dollar in den ersten neun Monaten, was einem Anstieg von 46% im Jahresvergleich entspricht. Der Umsatz stieg um 14% auf 11,6 Millionen US-Dollar, wobei das Segment der Utility-Software-Anwendungen 38% des Umsatzes beitrug. Das Unternehmen hielt eine gesunde Bruttomarge von 56% und erzielte ein bereinigtes EBITDA von 0,6 Millionen US-Dollar. Die Liquiditätsposition verbesserte sich auf 10,3 Millionen US-Dollar, gegenüber 5,2 Millionen US-Dollar zum Jahresende 2023. Das Unternehmen erweiterte seine Utility-Kundenbasis um 26 auf insgesamt 314 Nutzer, während der Jahreswiederkehrende Umsatz um 11% auf 12,2 Millionen US-Dollar wuchs. Zu den bemerkenswerten Produktentwicklungen gehören die UL- und FCC-Zertifizierungen für das TRUSense-Gateway sowie die Einführung der TRUFlex Protect-Software.
- Record sales orders of $40.2M, up 46% YoY
- Revenue increased 14% to $11.6M
- Strong gross profit margin of 56%
- Cash position doubled to $10.3M from $5.2M
- Added 26 new utility customers
- Annual Recurring Revenue grew 11% to $12.2M
- Adjusted EBITDA improved to $0.6M from $0.1M YoY
- Significant investment of $1.1M in TRUSense Gateway commercialization impacting EBITDA
- Net loss of $361,358 for Q3 2024
Burnaby, British Columbia--(Newsfile Corp. - November 13, 2024) - Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data, is pleased to announce its financial and operating results for the quarter and nine months ended September 30, 2024.
Financial & Operating Highlights for Q3 20241:
- Sales Orders: The Company converted
$7.3 million (CND$10.0 million ) from its sales pipeline during the quarter, bringing total orders through the first nine months of the year to$40.2 million (CND$54.7 million ). This dollar amount sets a new corporate record for orders converted within the first nine months of a calendar year and represents more than46% growth over the prior year period. The Company added 26 new utility customers through Q3 2024, bringing its user community to 314 utilities.
- Revenue: The Company generated revenue of
$11.6 million (CND$15.8 million ) during the quarter, representing a14% increase over the prior year period. Revenue contributions of$4.4 million (CND$6.0 million ) from the Utility Software Applications and Services segment represented38% of total revenue in the quarter.
- Annual Recurring Revenue (ARR)2: ARR stands at approximately
$12.2 million (CND$16.5 million ) as of September 30, 2024, representing approximately11% growth over the prior year period. Recurring Revenue recognized during the three months ended September 30, 2024 was approximately$3.4 million (CND$4.6 million ), representing approximately29% of total revenue for the quarter.
- Gross Profit Margin2: The Company delivered Gross Profit Margin of
56% in Q3 2024, continuing its trend of exceeding50% for this financial measure.
- Adjusted EBITDA2: The Company generated Adjusted EBITDA of
$0.6 million (CND$0.8 million ) during Q3 2024 compared to Adjusted EBITDA of$0.1 million (CND$0.1 million ) for the prior year period. The Adjusted EBITDA result included approximately$1.1 million (approximately CND$1.5 million ) of additional investment to commercialize the TRUSense Gateway™ product offerings.
- Balance Sheet: The Company ended Q3 2024 with
$10.3 million in cash (CND$13.9 million ) which increased from$5.2 million (CDN$6.8 million ) as at December 31, 2023.
- TRUSense Gateway™: The Company announced Underwriters Laboratories ("UL®") certification for the TRUSense Ethernet Gateway (July 22, 2024) and Federal Communications Commission ("FCC") certification for the TRUSense Cellular Gateway (September 23, 2024). The TRUSense Gateway is is an innovative, multi-purpose device that is installed in any existing ANSI meter socket to create a secure utility communication path into the premise, provide advanced power quality measurements and support broadband initiatives. Additionally, the Company received orders from 21 utilities to commence field trials, pilots and deployments of the TRUSense Gateway as of November 13, 2024. The Company began generating revenue from the TRUSense Gateway offering during Q3 2024.
- TRUFlex™ Protect: On July 31, 2024, the Company announced the launch of TRUFlex Protect, an advanced software application that is designed to help utilities navigate imbalances between the supply and demand of electricity resulting from extreme weather or emergency events. With TRUFlex Protect, a utility can mitigate the risks and impacts of rolling blackouts by keeping its distribution grid energized while selectively shedding electric load through edge intelligence.
"We continue to build momentum and were pleased to expand our user community by 26 utilities through the first nine months of 2024," said Peter Londa, President & CEO of Tantalus Systems. "We believe the
The Company will hold a conference call and webcast to discuss the financial results on Thursday, November 14, 2024, at 11:00 am Eastern Time.
Conference Call
Participant Dial In (Toll Free): 1-844-854-4410
Participant International Dial In: 1-412-317-5791
Participants, please ask to join the Tantalus Systems call.
Webcast
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ZwokXeQX
Replay Information
A conference call and webcast replay will be available until December 14, 2024. To access the conference call replay, please see details below:
US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 1-855-669-9658
Replay Access Code: 9695607
Financial Statements and Management Discussion & Analysis
Please see the Company's consolidated financial statements ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for more details. The Financial Statements for the three and nine months ended September 30, 2024, and related MD&A have been reviewed and approved by Tantalus' Audit Committee and Board of Directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed on SEDAR+ at www.sedarplus.ca and is also available on the Company's website at www.tantalus.com.
Non-IFRS and Other Financial Measures
This press release refers to the following non-IFRS measures:
"Adjusted EBITDA" is comprised as income (loss) less interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. "Adjusted EBITDA" is comprised as income (loss) less interest, income tax, depreciation, amortization, stock-based compensation, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Reconciliation of Net (Loss) / Income to Adjusted EBITDA" for a quantitative reconciliation of Adjusted EBITDA to the most directly comparable financial measure.
"Gross Profit" is comprised as the Company's revenues less cost of sales. Management believes that Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Gross Profit Reconciliation" for a quantitative reconciliation of Gross Profit to the most directly comparable financial measure. This press release refers to "Gross Profit Margin" which is a non-IFRS ratio. Gross Profit Margin is comprised of Gross Profit expressed as a percentage of the Company's revenues. Management believes that Gross Profit Margin is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.
"Adjusted Working Capital" is comprised as current assets less current liabilities exclusive of the Company's loans. Management believes Adjusted Working Capital is a useful indicator for investors, and is used by management, for evaluating the operating liquidity to the Company. See "Adjusted Working Capital Reconciliation" for a quantitative reconciliation of Adjusted Working Capital to the most directly comparable financial measure.
"Recurring Revenue" is comprised of the Company's revenues that are recurring in nature and attributable to its analytics, subscription and software as a service ("SaaS") offerings, hosting services and software maintenance and technical support agreement services. "Annual Recurring Revenue" or "ARR" is comprised of the Company's Recurring Revenue as expressed on an annualized revenue basis attributable to its customer agreements at a point in time.
Such non-IFRS measures and non-IFRS ratio do not have a standardized meaning under IFRS and may not be comparable to a similar measure disclosed by other issuers
Gross Profit Margin Reconciliation
| Three months | Three months | Nine months | Nine months | |||||||||||||||||||||
| ended | ended | ended | ended | |||||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
| 2024 | % | 2023 | % | 2024 | % | 2023 | % | |||||||||||||||||
| Revenue | $ | 11,588,961 | $ | 10,143,287 | $ | 31,722,129 | $ | 31,776,890 | ||||||||||||||||
| Cost of sales | 5,044,192 | 4,718,621 | 14,294,243 | 15,245,911 | ||||||||||||||||||||
| Gross Profit | $ | 6,544,769 | $ | 5,424,666 | $ | 17,427,886 | $ | 16,530,979 | ||||||||||||||||
Reconciliation of Net (Loss)/Income to Adjusted EBITDA
| Three months | Three months | Nine months | Nine months | |||||||||
| ended | ended | ended | ended | |||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Loss for the period | $ | (361,358 | ) | $ | (797,319 | ) | $ | (2,917,179 | ) | $ | (3,376,028 | ) |
| Finance expense (a) | 400,848 | 396,646 | 1,235,259 | 1,140,412 | ||||||||
| Income taxes | 101 | - | 21,522 | 23,725 | ||||||||
| Depreciation and amortization | | 438,264 | 461,728 | 1,323,238 | 1,380,112 | |||||||
| EBITDA | 477,855 | 61,055 | (337,160 | ) | (831,779 | ) | ||||||
| Stock-based compensation (b) | 73,798 | 105,302 | 383,254 | 330,249 | ||||||||
| Foreign exchange (c) | 32,896 | (58,456 | ) | (171,370 | ) | 88,977 | ||||||
| EDC Loan related legal costs (d) | - | - | - | 80,000 | ||||||||
| Government subsidy (e) | - | (44,681 | ) | - | (44,681 | ) | ||||||
| Adjusted EBITDA | $ | 584,549 | $ | 63,220 | $ | (125,276 | ) | $ | (377,234 | ) | ||
(a) Finance expense comprised of interest and related finance expense on bank loans and lease liabilities.
(b) Share-based non-cash compensation expense.
(c) Foreign exchange comprised of unrealized (gain) / loss from non-functional currency assets and liabilities.
(d) Legal fees pertaining to the EDC Loan which were capitalized to the face value of the EDC Loan.
(e) Government assistance relating to ERTC credit received and recognized against research and development expenses to which it pertains in the prior year period.
Adjusted Working Capital Reconciliation
| September 30, | December 31, | |||||
| Adjusted Working Capital | 2024 | 2023 | ||||
| Total current assets | $ | 25,353,919 | $ | 21,798,349 | ||
| Less: current liabilities | | (26,514,089 | ) | (27,268,936 | ) | |
| (1,160,170 | ) | (5,470,587 | ) | |||
| Add: Bank Loan - current portion | 7,679,000 | 8,500,000 | ||||
| Add: EDC Loan - current portion | 479,222 | - | ||||
| Adjusted Working Capital | $ | 6,998,052 | $ | 3,029,413 | ||
About Tantalus Systems Holding Inc. (TSX: GRID)
Tantalus is a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data across all their devices and systems deployed throughout the entire distribution grid. We offer a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. Our solutions provide utilities with the flexibility they need to get the most value from existing infrastructure investments while leveraging advanced capabilities to plan for future requirements. Learn more at http://www.tantalus.com/.
Forward-Looking Statements:
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements such as those relating to increasing demand for the Company's solutions in connection with the existence of several macroeconomic, environmental and technological trends, how those trends are leading to the expansion of the number of utilities placing initial orders for the TRUSense Gateway, the commercialization and adoption of the Company's offerings, the trajectory of the Company's business, and the ability to execute the Company's plan.
To the extent any forward-looking information in this news release constitutes a "financial outlook" within the meaning of securities laws, such information is being provided because management's estimate of the future financial performance of Tantalus is useful to investors, and readers are cautioned that this information may not be appropriate for any other purpose and that they should not place undue reliance on such information.
In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: the expected impact of supply chain constraints, the expected impact of inflationary pressures on costs and the expected timing of new product introductions, and the ongoing R&D investments and commercialization of the TRUSense Gateway. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading "Risk Factors" in Tantalus' Annual Information Form dated March 31, 2024, as well as those risk factors included with Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
Contact Tantalus:
Deborah Honig
Investor Relations
647-203-8793 | deborah@adcap.ca
Website: www.tantalus.com
LinkedIn: LinkedIn/company/tantalus
X (formerly Twitter): @TantalusCorp
1 Financial information is reported in United States dollars ("$") unless otherwise stated and in accordance with International Financial Reporting Standards ("IFRS"). Where balances are also expressed in Canadian dollars ("CND$") in this news release, an average foreign exchange rate of 0.7332 and 0.7351 for the three and nine months ended September 30, 2024 (0.7457 and 0.7432 for the three and nine months ended September 30, 2023) for income statement items and a foreign exchange rate of 0.7408 as at September 30, 2024 (0.7396 as at September 30, 2023 and 0.7561 as at December 31, 2023) for balance sheet items has been applied. Certain dollar amounts in this news release have been rounded to the nearest millions or thousands of dollars.
2 See "Non-IFRS and Other Financial Measures."
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229861
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