Kontrol Technologies Announces First Quarter 2022 Financial Results; Revenues Increase 702% YoY to $26.6 Million

TORONTO - 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 technology, provided financial results for the three months ended March 31st, 2022. A complete set of the Financial Statements and Management's Discussion & Analysis have been filed on SEDAR (www.sedar.com).

First Quarter 2022 Highlights

  • Record Q1 revenues of $26.6 million, up 702% year-over-year

  • Net income of $1.6 million, compared to net loss of $823,733 in Q1 2021

  • Adjusted EBITDA* of $2.5 million, up 123% year-over-year

  • Gross profit of $6.7 million, up 281% year-over-year

  • Working capital of $7.1 million, an increase of $3.4 million over the year end balance at December 31, 2021

  • Awarded contract and letter of intent totaling $25.7 million for HVAC and automation projects

  • Launched Kontrol Carbon to support customers in GHG monitoring, management, and carbon credit monetization

Management Commentary

“Our first quarter 2022 performance reflects our continued operational execution as we make progress toward realizing our strategic vision,” said Paul Ghezzi, CEO of Kontrol Technologies. “We are working diligently to scale the Kontrol platform while maintaining discipline in the management of our capital structure and remain deeply focused on growing profitability. As we look forward, we are well positioned for continued growth by bringing innovative solutions that enable our customer base to achieve greater sustainability across their businesses.”

Q1 2022 Financial Summary

* 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.

Conference Call

The Company will host a conference call on Monday, May 16th, 2022, at 8:30 AM Eastern Time to discuss Kontrol’s first quarter 2022 financial results. To participate, please use the following information:

Event Details:

Title: Kontrol Technologies Reports Q1 2022 Financial Results

Event Date and Time: May 16th, 2022 @ 8:30 AM Eastern

Event Duration: 45 Minutes

Audience URL: https://produceredition.webcasts.com/starthere.jsp?ei=1547812&tp_key=f302d39375

Call- in Numbers:
Confirmation #: 26299379
Local: 416-764-8609 (Toronto)
North American Toll Free: 888-390-0605

Please dial in at least 5 minutes before the call start time to ensure timely participation.

A recording of the Q1 2022 interim financial results conference call is available here:

Reply Local: 416-764-8677

Replay North American Toll Free: 1-888-390-0541

Replay Entry Code: 299379#

Replay Webcast Link: https://produceredition.webcasts.com/starthere.jsp?ei=1547812&tp_key=f302d39375

Replay Expiration Date: May 23, 2022

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 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.sedar.com

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.

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 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.

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.

Contacts

Kontrol Technologies Corp.
Paul Ghezzi
CEO
info@kontrolcorp.com
180 Jardin Drive, Unit 9, Vaughan, ON L4K 1X8
Tel: (905) 766.0400

Investor Relations:
Brooks Hamilton
MZ Group - MZ North America
KNRLF@mzgroup.us
Tel: +1 (949) 546.6326

Rody Lazar