Kontrol Technologies to Ship Highest Level of Replacement Cartridges for Globally Deployed BioCloud Units; Drives Increase in Recurring Revenue Base
Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) ("Kontrol" or the "Company"), a leader in smart buildings and cities through IoT, Cloud and SaaS (News - Alert) technology, will ship a record level of replacement cartridges for BioCloud units deployed in Europe, North America, and Australia. As a result of the Company's expanding order book and ongoing execution of its organic and strategic growth objectives, the Company raised its revenue and adjusted EBITDA* outlook for fiscal year 2022.
Kontrol management estimates the Company will ship up to 500 replacement cartridges prior to year-end, at an average value of U.S. $400 per cartridge, based on current customer demand and the number of BioCloud units installed. The Company estimates the number of expected replacement cartridges to increase as more BioCloud units are installed. Customers who order in higher quantities and in advance can receive discounts which will reduce the cost of each replacement cartridge by up to 25%. The BioCloud replacement cartridges represents recurring revenue and as the installed base grows so will the recurring revenues associated with BioCloud.
Following a successful uplisting to the NEO Exchange in Canada, the Company has begun to execute its procedures for an anticipated uplisting to a senior U.S. exchange, which it is targeting for the first half of 2022. The Company intends to take all actions to meet the listing requirements of the national exchange. However, there can be no assurance that the Company's application will be approved and if it is approved that the Company will continue to meet the listing requirements of a national exchange.
"We are moving through the fourth quarter with increasing momentum as we position Kontrol for substantial growth over the coming year," said Paul Ghezzi, CEO of Kontrol. "The corporate partnerships we continue to secure highlight the global demand for advanced technologies for energy management, emission reduction, and air quality solutions that ultimately enable sustainable buildings. Due to the continued expansion of our blue-chip customer base and the strategic partnerships we continue to accelerate, we now anticipate delivering annual revenue of approximately $100 million at the midpoint of our guidance range for full year 2022. This continued execution on our operational strategy and visibility into our business provides a strong foundation for Kontrol as we work toward an uplisting to a senior U.S. exchange in 2022, which we believe will increase visibility of our Company to the institutional investment community and help create long-term value for our shareholders."
Kontrol updated its guidance for fiscal year 2022 as follows:
Revenue is estimated to be in the range of $95 million to $105 million, up from the Company's previous $85 million to $90 million estimate range.
Adjusted EBITDA* is estimated o be in the range of $10 million to $12 million, up from the Company's previous $7 million to $8 million estimate range.
Kontrol affirmed its recently updated guidance for fiscal year 2021 as follows:
Revenue is estimated to be in the range of $43 million to $46 million, up from the Company's previous $38 million estimate, and compared to $13 million in 2020.
Adjusted EBITDA* is estimated to be in the range of $6 million to $7 million, up from the Company's previous $3.7 million estimate, and compared to $2.0 million in 2020.
*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, and listing expense.
About Kontrol BioCloud
Kontrol BioCloud ("BioCloud") is an operating subsidiary of Canadian public company Kontrol Technologies. The BioCloud technology is a real-time analyzer designed to detect airborne viruses and pathogens. BioCloud is an air quality technology and not a medical device. BioCloud has been designed to operate as a safe space technology by sampling the air quality continuously. With a proprietary detection chamber that can be replaced as needed, viruses are detected, and a silent notification system is created. BioCloud can be applied to any space where individuals gather.
Additional information about Kontrol BioCloud can be found on its website at www.kontrolbiocloud.com.
About 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 a combination of software, hardware, and service solutions to its customers to improve energy management, air quality and continuous emission monitoring.
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Non-IFRS Financial Measures
The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, and acquisition related expenses. The Company believes Adjusted EBITDA is a useful measure as it provides information to management about the operating and financial performance of the Company and its ability to generate operating cash flow to fund future working capital needs, as well as future growth. Adjusted EBITDA may also be used by investors and analysts for the purpose of valuing the Company. Readers are cautioned that these non-IFRS definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to net earnings determined in accordance with IFRS or as indicators of performance, liquidity, or cash flows.
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 the Company 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 technologies will not prove as effective as expected, that 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. Kontrol BioCloud is an air quality technology and not a medical device. The Company is not making any express or implied claims that its product has the ability to eliminate, cure or contain the COVID-19 (or SARS-2 Coronavirus).
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.
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