Monday, August 28, 2017 5:05:01 PM
Kontrol Energy Reports 36% Quarterly Revenue Growth and Provides Operational Update
Toronto, August 28, 2017 - Kontrol Energy Corp. (CSE:KNR) (the "Company") announces quarterly revenue growth of 36% for Q2 2017. Revenues for Q2 were $1.56 Million compared to $1.15 Million in Q1. Year to date Q2 revenues were $2.7 Million. The increase in revenue follows the acquisition of ORTECH Consulting Inc. (“ORTECH”) in February 2017, but does not reflect the acquisition of Efficiency Engineering Inc. (“EE”) which was completed in August 2017.
“We are very pleased with the acceleration of revenues and EBITDA,” says Paul Ghezzi, CEO Kontrol Energy. “As we look forward from Q3 2017 and 12 months out we anticipate a continuation of increased revenue generation and EBITDA growth with the current acquisitions completed and the multiple potential acquisitions in various stages of due diligence.”
EBITDA before non-cash expenses for Q2 was break-even, which is in line with the Company’s performance expectations and business plan. Factoring in non-cash amortization expense of $104K, stock based compensation of $200K and finance expenses of $169K the Company reports a net loss of $467,185 for the three months ended June 30, 2017.
Operational Update
ORTECH
For more than 30 years, ORTECH has been a leader in Greenhouse Gas Measurement, Air Quality testing and Renewable Energy power consulting in Ontario. The anticipated operating revenue for the next 12 months is approximately in the range of $5.5 Million with net earnings of approximately $1 Million. The macro-economics of Greenhouse Gas emission and stack testing remain strong which benefits ORTECH’s ongoing revenues.
Efficiency Engineering
Since 1990, Efficiency Engineering Inc. (EE) has been providing technical assessment, financial assessment, detailed design, and management for building upgrade projects. EE work with customers to provide thorough and cost-effective energy auditing, monitoring & verification (M&V), energy project assessment, mechanical, electrical and renewable design, and LEED facilitation. EE will design and manage facility systems solutions, with emphasis on economic feasibility and energy savings. The anticipated operating revenues for the next 12 months is in the range of $2.75 Million with $500,000 in net earnings.
Kontrol Technologies
The Kontrol Technologies operating division delivers turn-key retrofit and technology solutions to various commercial real estate owners and stakeholders. Included in the Kontrol Technologies division is the Kontrol EMS (smart energy thermostat). The anticipated operating revenues for the next 12 months is in the range of $2.25 Million with $450,000 in net earnings.
The Kontrol EMS is moving through an upgrade of hardware and software to be an Internet of Things (IOT) device. To date approximately $100,000 has been invested in the upgrade and over the next 6 months an additional $100,000 will be required. The majority of this eligible for SRED credits and various Federal grants for efficiency which Kontrol continues to explore.
Consolidated
The consolidated revenues are anticipated to be in the range of $10.5 Million over the next 12 months. The net EBITDA, after corporate overhead, is anticipated to be in the range of $1.3 Million. This is consistent with prior guidance but reflects a 12-month run rate as opposed to a calendar year.
According to the International Energy Association 2016 Report, energy efficiency is the first fuel of the global economy and continues to be the invisible powerhouse to improve energy security, lower energy bills and move us closer to reaching climate change goals. Each $1 invested in energy efficiency can displace up to $3 in transmission and distribution costs.
“The consolidated group of Kontrol operating subsidiaries has delivered over $100 million in electricity savings over their past combined operating history with a corresponding reduction in Greenhouse Gas emissions,” continues Paul Ghezzi.” With 4 acquisitions now completed we are well on our way to growing our consolidated operating footprint to take advantage of the significant opportunities in the global energy efficiency sector.”
About Kontrol Energy Corp.
Kontrol Energy Corp. (CSE:KNR) is a leader in energy efficiency solutions and technology. Through a disciplined mergers and acquisition strategy, combined with organic growth, Kontrol Energy Corp. provides market-based energy solutions to our customers designed to reduce their overall cost of energy while providing a corresponding reduction in Greenhouse Gas (GHG) emissions.
Additional information about Kontrol Energy Corp. can be found on its website at www.kontrolenergy.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.
FEATURED Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • Apr 25, 2024 8:52 AM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM