Kontrol Technologies Announces First Quarter 2024 Financial Results
In This Article:
TORONTO, May 15, 2024--(BUSINESS WIRE)--Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) ("Kontrol Technologies" or "Kontrol" or "Company") announces its results for the three months ended March 31, 2024. A complete set of the Financial Statements and Management's Discussion & Analysis have been filed on SEDAR (www.sedar.com).
"With a focus on growing recurring revenues and high margin building services the Company has improved EBITDA and net income on a comparative basis while reducing secured debt obligations," says Paul Ghezzi, CEO of Kontrol Technologies. "We delivered positive operating cash flows, and earnings, as the Company continued to strengthen its financial position."
First Quarter 2024 Highlights
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Revenues for the three months ended March 31, 2024 were $3.8 million.
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Income from continuing operations for the three months ended March 31, 2024 was $533,487 compared to a loss from continuing operations of $(469,463) for the same quarter in the prior year.
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Adjusted EBITDA* from continuing operations for the three months ended March 31, 2024 was $966,489 compared to $621,117 for the same quarter in the prior year.
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Gross margin for the three months ended March 31, 2024 was 62%, compared to 59% for the same quarter in the prior year.
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Cash flows from operating activities were $443,808 for the three months ended March 31, 2024, compared to cash flows used in operating activities of $507,538 for the same quarter in the prior year.
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Cash proceeds of $5.8 million were received in Q1 2024 from the December 2023 sale of ORTECH Consulting Inc. ("ORTECH").
In Q1 2024 the Company entered into an amended Credit Agreement with its secured lender, and exited from the Forbearance Agreement, thereby returning to regular commercial borrowing. On December 29, 2023, Kontrol completed the sale of its operating subsidiary ORTECH and in Q1 2024 received cash proceeds of $5.8 million. In Q4 2023, the Company recognized a gain on sale of assets of $2.5 million.
Q1 2024 Financial Summary
| Financial Results | Three months ended | ||
| (Unaudited) | March 31, 2024 | March 31, 2023 |
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| Revenue | $3,786,234 | $4,461,317 |
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| Gross profit | $2,332,075 | $2,638,224 |
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| Net income (loss) from continuing operations | $533,487 | $(469,463) |
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| Gain from discontinued operations | - | $21,786,635 |
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| Net income and comprehensive income | $533,487 | $21,317,172 |
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| Basic and Diluted EPS - continuing operations | $0.01 | $(0.01) |
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| Basic EPS - discontinued operations | - | $0.42 |
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| Diluted EPS - discontinued operations | - | $0.35 |
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| Add/Deduct for Adjusted EBITDA reconciliation - continuing operations: |
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| Amortization and depreciation | $222,383 | $358,894 |
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| Finance expense | $158,662 | $511,265 |
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| Share based compensation | $51,957 | $220,421 |
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| Adjusted EBITDA - continuing operations | $966,489 | $621,117 |
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* Adjusted EBITDA is a non-IFRS financial measure. The Company defines Adjusted EBITDA 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, and impairment of assets.