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Smart Grid Technology Company Tantalus Systems Reports Financial Results for 2nd Quarter 2023, Q2 Revenue up 24% to $11.2 Million
Wednesday, August 23, 2023Company Profile | Follow Company
Delivers record results for revenue during a second quarter and gross profit margin while posting positive Adjusted EBITDA and investing in future growth
Burnaby, BC, August 23, 2023--(T-Net)--Tantalus Systems (TSX: GRID), a smart grid technology company focused on helping build sustainable utilities for the future, announced its financial and operating results for the quarter ended June 30, 2023 ("Q2").
Financial Highlights for Q2 [1]:
Peter Londa, President and CEO, Tantalus Systems Corp.
"Q2 represented another strong quarter for Tantalus, with a number of important milestones achieved by our team. We are pleased to remain on a favorable trajectory for our shareholders," said Peter Londa, President & CEO of Tantalus. "Our strong financial results put us in an excellent position to continue investing in the development and deployment of innovative solutions, such as our TRUSense Gateway, the Congruitive software platform and other data analytics capabilities. We believe these investments in our solutions represent a substantial near- and long-term opportunity for the company."
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 months ended June 30, 2023, 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.
About Tantalus Systems Holding Inc. (TSX: GRID)
Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of utilities and the communities they serve.
Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity.
All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at www.tantalus.com.
Non-IFRS and Other Financial Measures
This press release refers to the following non-IFRS measures:
"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 bank loan and contingent consideration on the Congruitive acquisition. 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 and other software as a service ("SaaS") offering, 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
Reconciliation of Net (Loss)/Income to Adjusted EBITDA
(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) General and administrative expenses pertaining to the Company's acquisition of Congruitive.
(e) Legal fees pertaining to the EDC Loan.
Adjusted Working Capital Reconciliation
[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 press release, an average foreign exchange rate of 0.7447 and 0.7421 for the three and six months ended June 30, 2023 (0.7834 and 0.7866 for three and six months ended June 30, 2022) for income statement items and a foreign exchange rate of 0.7553 as at June 30, 2023 (0.7760 as at June 30, 2022 and 0.7383 as of December 31, 2022) for balance sheet items has been applied.
[2] See "Non-IFRS and Other Financial Measures."
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