Kraken Reports First Quarter 2021 Results
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ST. JOHN’S, Newfoundland, May 27, 2021 (GLOBE NEWSWIRE) – Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF), the Canadian Oceanic Company, has announced that it has filed its financial results for the quarter ended on March 31, 2021. Additional information regarding the Company, including its consolidated financial statements and related MD&A (“MD&A”) for the quarter ended March 31, 2021, is available at: www.sedar.com. Unless otherwise indicated, all dollar amounts are in Canadian dollars.
Q1 2021 Financial Highlights
- Revenue for the quarter was $ 3.6 million compared to $ 6.4 million in the quarter last year. Sales for the quarter were driven by continued order growth from the Danish Navy as well as our third delivery of submarine batteries to a military customer. Sales for the previous year consisted of the delivery of a KATFISH ™ 180 system, the sale of underwater batteries, acoustic signal processing software for a defense contractor as well as Robotics as a Service and Data Analysis for Offshore Energy Customers.
- Adjusted EBITDA * for the quarter was positive at $ 0.1 million, compared to Adjusted EBITDA * of $ 1.3 million in the last year’s quarter.
- Net loss for the quarter was $ 0.6 million, compared to net income of $ 0.7 million in the quarter last year.
- Net working capital at the end of the first quarter of 2021 was $ 10.5 million, compared to $ 10.9 million at the end of 2020. Kraken ended the quarter with cash and restricted cash of 10.0 million dollars, compared to $ 13.9 million as of December 31, 2020.
- Including the federal funding we will receive for our OceanVision project, Kraken had $ 8.1 million in funding previously provided to government agencies. This amount is not recognized in our financial statements until cash is received.
“With a strong order book fueled by victories last year with the Danish and Polish navies, we are on track to meet our financial guidance for 2021. This would represent over 100% organic revenue growth. Due diligence and the finalization of the share purchase agreement with PanGeo Subsea are continuing, and we now expect to close this acquisition during the first half of June. We are very excited about the revenue synergies we expect from this acquisition. Together with PanGeo, we anticipate strong growth in providing robotics as a service to the offshore service market with a focus on offshore renewables and offshore oil and gas customers ”, said Karl Kenny, President and CEO of Kraken.
Financial guidelines 2021
- The financial forecast for fiscal year 2021 is unchanged from the forecast provided on May 11, 2021. Revenue for the fiscal year ended December 31, 2021 is expected to be between $ 24.0 million and $ 28.0 million. The expected growth in excess of 100% is due to recent contracts won for towed sonars KATFISH ™ 180 and ALARS for the Danish and Polish navies, as well as various orders and expected orders for AquaPix® MINSAS and SeaPower ™ batteries. We have high visibility in 2021, with contracts already signed representing over 80% of the $ 26 million midpoint of our 2021 revenue forecast range.
- Our revenue forecast excludes any contribution from the proposed acquisition of PanGeo which we announced on April 9, 2021. Upon completion of this proposed acquisition, we will update our forecast to reflect the expected results of PanGeo.
- Gross margins for 2021 are expected to be between 47% and 50% compared to 47% in 2020.
- Adjusted EBITDA * for 2021 is expected to be between $ 2.0 and $ 4.5 million compared to a loss in Adjusted EBITDA * of $ 2.7 million in 2020. The year-over-year improvement is expected due to higher revenues offset by increased headcount expenses. and infrastructure expenses and overall costs due to business growth.
- Net income for 2021 is expected to vary from a net loss of $ 1.5 million to net income of $ 1.5 million. This compares to a net loss of $ 5.5 million in 2020.
* Adjusted EBITDA and Adjusted EBITDA margin do not have any standardized meaning under IFRS and may not be comparable to similar measures used by other issuers. We define Adjusted EBITDA as revenues less cost of sales, administrative expenses, research and development expenses plus investment tax credits and equity compensation. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenues.
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ABOUT KRAKEN ROBOTICS INC.Kraken Robotics Inc. (TSX.V: PNG) (OTCQB: KRKNF) is a marine technology company dedicated to the production and sale of software sensors, underwater batteries and thrusters, and underwater robotic systems. The company is headquartered in Newfoundland with offices in Canada, the United States, Germany, Denmark and Brazil. Kraken is ranked among the Top 100 Marine Technology Companies by Marine Technology Reporter.
Certain information contained in this press release constitutes forward-looking statements. When used in this press release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek” “,” Propose “,” estimate “,” expect “and similar expressions, to the extent that they relate to the company, are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements concerning , among others, business objectives, expected growth, results of operations, performance, business plans and opportunities, and financial results.These statements involve risks, uncertainties and other known and unknown factors that may cause such that actual results or events differ materially from those anticipated in these forward-looking statements. These statements reflect the current opinions of the company regarding future events based on certain factors and hyp assumptions and are subject to certain risks and uncertainties, including, without limitation, market changes, competition, government or regulatory developments, general economic conditions and other defined factors. in the company’s public disclosure documents. There are many factors that could cause the Company’s actual results, performance or achievements to differ from those described in this press release, including, without limitation, those listed above. These factors should not be taken as exhaustive. If one or more of these risks or uncertainties materialize, or if the assumptions underlying the forward-looking statements prove to be incorrect, actual results may differ materially from those described in this press release and from such forward-looking statements included or incorporated by reference in this news. release, should not be unduly invoked. Such statements speak only as of the date of this press release. The Company does not intend and assumes no obligation to update these forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its regulatory departments (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved of its content. Press release.
For more information, please contact: Joe MacKay, Chief Financial Officer (416) 303-0605[email protected]
Greg Reid, Chief Operating Officer (416) 818-9822[email protected]
Sean Peasgood, Investor Relations (647) 955-1274[email protected]
Source: Kraken Robotics Inc.