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Tantalus Systems Reports Financial Results for Q3 of 2023
Monday, November 27, 2023Company Profile | Follow Company
Continues to deliver revenue growth, strong gross profit margin and positive Adjusted EBITDA
Vancouver, BC, November 27, 2023--(T-Net)--Tantalus Systems (TSX: GRID), a smart grid technology company focused on helping build sustainable utilities for the future, has announced its financial and operating results for the quarter ended September 30, 2023.
Financial Highlights for Q3 [1]:
Peter Londa, CEO, Tantalus Systems
"Q3 represented another strong quarter for Tantalus," said Peter Londa, President & CEO of Tantalus. "We are pleased to maintain our trajectory of reverting back to positive Adjusted EBITDA while also investing in the commercialization of the TRUSense Gateway and the Congruitive software capabilities. We continue to believe these investments in R&D represent a substantial near- and long-term opportunity for the company."
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.
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 and nine months ended September 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.
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.
(f) United States Employee Retention Tax Credit (ERTC).
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 0.7457 and 0.7432 for the three and nine months ended September 30, 2023 (0.7662 and 0.7798 for three and nine months ended September 30, 2022) for income statement items and a foreign exchange rate of 0.7396 as at September 30, 2023 (0.7296 as at September 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."
Forward-Looking Statements:
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