Burnaby, British Columbia--(Newsfile Corp. - March 23, 2022) - Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce its financial results for the fourth quarter and year ended December 31, 2021.
"2021 was a historic year for Tantalus as we successfully migrated to the public markets, secured over CAD$20 million through two financings and continued to witness strong growth in our user community of utilities throughout the year," said Peter Londa, President & CEO of Tantalus. "During 2021, we delivered year-over-year growth of 27.5% in orders from our sales pipeline, expanded our user community to over 210 utilities by adding 25 new customers and launched our first AI-enabled data analytics tool to help utilities improve their resiliency. Looking forward to 2022, we anticipate strong revenue growth with approximately US$27 million in backlog that is expected to be shipped during the year. We are also witnessing strong secular drivers that are motivating utilities to modernize their distribution grids."
Extreme weather continues to challenge the resiliency of distribution grids while the availability and accelerating adoption of electric vehicles is stressing existing grid infrastructure by increasing the amount of power consumers require, changing the location where electricity needs to be delivered and altering the timing of peak load profiles that utilities are required to manage. Coupled with investments being made by homeowners and businesses to install roof-top solar panels that are expected to deliver power from the edge of the grid, the utility industry is facing an unprecedented number of challenges that require upgrades to distribution grids across North America. "These challenges create urgency among utilities to digitize their grids. By doing so, utilities gain situational awareness and the necessary command and control of critical assets," said Mr. Londa. "Our strong balance sheet enabled us to execute the recently announced acquisition of Congruitive which places Tantalus at the forefront of helping utilities prepare for the significant impact that electric vehicles and distributed energy resources will have on their resiliency and reliability."
Q4, 2021 and Year-to-Date Financial Summary
(Financial information is reported in United States dollars ("$") unless otherwise stated and in accordance with International Financial Reporting Standards ("IFRS")).
Key financial results for the quarter are compared to the same timeframe in the previous year unless otherwise stated.
Operating Highlights for the Fourth Quarter of 2021
Strong Momentum Heading Into 2022
While the growth horizon remains favorable for Tantalus, management is mindful of the ongoing worldwide disruption to the availability of electronic components, particularly with respect to semiconductors, and is actively implementing appropriate strategies to mitigate disruptions to project deployments. Management is also prioritizing the health and safety of Tantalus' employees due to the continued impact of the COVID-19 pandemic. Additionally, Tantalus is actively managing inflationary pressures that may impact costs across our business.
The Company will hold a conference call and webcast to discuss the financial results on Wednesday, March 23, 2022 at 2:00 p.m. Eastern Time.
Conference Call
Participant Dial In (Toll Free) 1-844-854-4410
Participant International Dial In 1-412-317-5791
Webcast
https://services.choruscall.com/mediaframe/webcast.html?webcastid=tgsu6HTG
Replay Information
A conference call replay will be available until March 31, 2022. The webcast will be available until March, 23, 2023 at the link set out above. 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 5067892
Financial Statements and Management Discussion & Analysis
Please see the consolidated financial statements ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for more details. The consolidated financial statements for the year ended December 31, 2021 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.sedar.com 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 public power and electric cooperative 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. See "Reconciliation of Net (Loss) / Income to Adjusted EBITDA" for a quantitative reconciliation of EBITDA to the most directly comparable financial measure. "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 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. 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.
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 Reconciliation
Table 1: Gross Profit Reconciliation
To view an enhanced version of Table 1, please visit:
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Reconciliation of Net (Loss) / Income to Adjusted EBITDA
Table 2: Reconciliation of Net (Loss) / Income to Adjusted EBITDA
To view an enhanced version of Table 2, please visit:
https://orders.newsfilecorp.com/files/7752/117710_75d53cee04445801_003full.jpg
a) Finance expense comprised of interest and related finance expense on bank loan and lease liabilities (see Financial Statements).
b) Stock-based compensation comprised of non-cash compensation (see Financial Statements).
c) Foreign exchange comprised of unrealized loss from non-functional currency assets and liabilities (see Financial Statements).
d) Other income comprised of the gain on Energate Inc. acquisition arbitration share cancellation and government assistance benefit received pertaining to the COVID-19 Pandemic (see Financial Statements inclusive of note 21).
e) General and administrative expenses pertaining to the Company's acquisition of Congruitive completed on January 31, 2022 (see notes 20 and 25 to the Financial Statements).
f) General and administrative expenses pertaining to the Company's acquisition of Energate Inc. arbitration (see notes 14(g) and 20 of the Financial Statements).
g) Reverse acquisition listing expense comprised of excess purchase price over RiseTech Capital Corp. net assets acquired (see notes 4 and 20 in the Financial Statements).
h) Reverse acquisition costs comprised of legal and professional fees (see notes 4 and 20 in the Financial Statements).
Adjusted Working Capital Reconciliation
Table 3: Adjusted Working Capital Reconciliation
To view an enhanced version of Table 3, please visit:
https://orders.newsfilecorp.com/files/7752/117710_75d53cee04445801_004full.jpg
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: we anticipate strong revenue growth with approximately US$27 million in backlog that is expected to be shipped during the year; we are also witnessing strong secular drivers that are motivating utilities to modernize their distribution grids; the recently announced acquisition of Congruitive which places Tantalus at the forefront of helping utilities prepare for the significant impact that electric vehicles and distributed energy resources will have on their resiliency and reliability; the Company has over 1.6 million available endpoints to deploy in the future that will drive revenue and access to additional data for its expanding software and analytics packages; ; the Company anticipates growing revenue year-over-year by 20% - 25% in 2022, targeting approximately $38.5 to $40.0 million in 2022; demand for the Congruitive solution is expected to grow significantly as EV and DER adoption continues to expand rapidly in 2022; and, the acquisition of Congruitive also enables Tantalus to pursue investor-owned utilities (IOUs) and additional verticals, thereby increasing the Company's total addressable market opportunity.
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 COVID-19 and the expected timing of new product introductions. 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 the Tantalus' Annual Information Form dated March 23, 2022, as well as those risk factors included with Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. 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:
Jacquie Hudson
Marketing Communications Manager
613-552-4244 | [email protected]
Linda Armstrong
Investor Relations
647-456-9223 | [email protected]
Website: www.tantalus.com
LinkedIn: LinkedIn/company/tantalus
Twitter: @TantalusCorp
[1] See "Non-IFRS and Other Financial Measures".
[2] See "Non-IFRS and Other Financial Measures".
[3] See "Non-IFRS and Other Financial Measures".
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/117710