Kraken Provides 2021 Guidance of 100%+ Revenue Growth and Preliminary Q1 Financial Results
May 11 2021 - 6:00AM
Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF), Canada’s Ocean
Company, is providing the following preliminary guidance on
estimated financial results for the three months ended March 31,
2021, as well as our financial guidance for the year ending
December 31, 2021. Our unaudited financial results for the three
months ending March 31, 2021, have not yet been finalized and are
subject to change.
2021 Financial Guidance
- Revenue for the year ended December
31, 2021 is expected to be $24.0 million to $28.0 million versus
$12.3 million in 2020. The greater than 100% expected growth is due
to recent contract wins for KATFISH™ 180 towed sonars and ALARS for
the Danish and Polish Navies, and various orders and expected
orders for AquaPix® MINSAS and SeaPower™ batteries. We have strong
visibility into 2021, with contracts already signed accounting for
more than 80% of the $26 million midpoint of our 2021 revenue
forecast range.
- Our revenue guidance 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 guidance to account for expected
PanGeo results.
- Gross margins for 2021 are expected
to be in the 47%-50% range versus 47% in 2020.
- Adjusted EBITDA for 2021 is
expected to be in the range of $2.0 million to $4.5 million
compared to an Adjusted EBITDA loss of $2.7 million in 2020. The
year over year improvement is expected as a result of higher
revenue offset by increased expenses on headcount and
infrastructure related spending, and overall costs due to the
growth of the business.
- Net income for 2021 is expected to
range 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.
Q1/2021 Preliminary Guidance
- Revenue for the three months ended
March 31, 2021 is expected to be approximately $3.6 million versus
$6.4 million in the prior year’s quarter. Key revenue components in
the quarter were initial work on the Danish and Polish Navy
KATFISH™ 180 towed sonar contracts and the shipment of SeaPower™
batteries to a Navy customer. Prior year revenue was driven by the
sale of a KATFISH™ 180 system and subsea batteries to a military
customer.
- Gross margins for Q1, 2021 are
expected to be 60% compared to 46% in Q1, 2020.
- Adjusted EBITDA for the quarter is
expected to be in the range of $0.1 million to $0.6 million,
compared to Adjusted EBITDA * of $1.3 million in the prior year.
The year over year change was due to lower revenue combined with an
increase in expenses as we ramped headcount, infrastructure related
spending, and overall costs to be able to shorten customer lead
times and deliver on larger program wins such as the Danish Navy
order.
- Net loss for the quarter is
expected to be $0.1 million to $0.6 million compared to a net
income of $0.7 million in the prior year quarter.
- Kraken expects to report final Q1,
2021, results on or about May 27th.
CEO Comments“Our product sales
pipeline is very robust and we expect more than 100% top line
growth in 2021,” said CEO Karl Kenny. “This, combined with the
maturing of Kraken’s service capabilities and the proposed
acquisition of PanGeo Subsea, provides a strong platform for growth
in 2021 and beyond. As our top line growth continues and we near
completion of major R&D programs in 2022 (multispectral SAS and
ThunderFish® XL), we expect to see an acceleration in operating
leverage with targeted EBITDA margins in the 30%-35% range from a
balance of product sales and recurring services revenue.”
*Adjusted EBITDA and Adjusted EBITDA margin do
not have standardized meaning under IFRS and may not be comparable
to similar measures used by other issuers. We define Adjusted
EBITDA as revenue less costs of sales, administrative expenses,
research and development costs plus investment tax credits. We
define Adjusted EBITDA margin as Adjusted EBITDA divided by
revenues.
LINKSwww.krakenrobotics.com
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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-centric sensors, subsea batteries and thrusters, and
underwater robotic systems. The company is headquartered in
Newfoundland with offices in Canada, U.S., Germany, Denmark, and
Brazil. Kraken is ranked as a Top 100 marine technology company by
Marine Technology Reporter.
Certain information in this news release
constitutes forward-looking statements. When used in this news
release, the words "may", "would", "could", "will", "intend",
"plan", "anticipate", "believe", "seek", "propose", "estimate",
"expect", and similar expressions, as they relate to the Company,
are intended to identify forward-looking statements. In particular,
this news release contains forward-looking statements with respect
to, among other things, business objectives, expected growth,
results of operations, performance, business projects and
opportunities and financial results. These statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. Such statements
reflect the Company's current views with respect to future events
based on certain material factors and assumptions and are subject
to certain risks and uncertainties, including without limitation,
changes in market, competition, governmental or regulatory
developments, general economic conditions and other factors set out
in the Company's public disclosure documents. Many factors could
cause the Company's actual results, performance or achievements to
vary from those described in this news release, including without
limitation those listed above. These factors should not be
construed as exhaustive. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying
forward-looking statements prove incorrect, actual results may vary
materially from those described in this news release and such
forward-looking statements included in, or incorporated by
reference in this news release, should not be unduly relied upon.
Such statements speak only as of the date of this news release. The
Company does not intend, and does not assume any obligation, to
update these forward-looking statements. The forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its
Regulation Services Provide (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 the contents of this press release.
For further information, please contact:Joe MacKay, Chief
Financial Officer(416) 303-0605jmackay@krakenrobotics.com
Greg Reid, Chief Operating Officer(416)
818-9822greid@krakenrobotics.com
Sean Peasgood, Investor Relations(647)
955-1274sean@sophiccapital.com
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