On Tuesday, Kontrol Energy (CSE: KNR) announced their fourth quarter financials and the numbers are impressive. Kontrol reported annual revenues of CAD $10.7 million, up 56% over the prior year, or an increase of $3.8 million with gross profits of $6.4 million for the period ending December 31st 2018. Revenues for the fourth quarter totaling CAD $4.1 million, up 100% year over year with gross profits of $1.9 million for the quarter as compared to $1.3 million for the fourth quarter or an increase of 44% on gross profits for the same period last year for the quarter. These revenues are proving to investors that the business is growing and growing at a very rapid rate!
Here are some highlights from 2018:
- Two acquisitions in 2018 included the acquisition of CEM Specialties Inc. and MCW Dimax Ltd
- Revenue for the year ending December 31st, 2018 was $10.7 million, up 56% over the prior year.
- Revenue for the fourth quarter was $4.1 million, up 100% over the comparable quarter of the prior year.
- Kontrol Energy expansion of IoT Technology solutions to Global Asset Facilities Management
- Kontrol Energy and Toyota Tsusho Canada Inc. announce a Smart Factory Strategic Partnership for North American Markets
- Launch of SmartSuite® energy management technology for global commercial, multi-residential, and hospitality real estate market.
- Kontrol Energy enters global market with the launch of SmartMax® Energy Gateway
- U.S Listing granted on OTCQB Market under symbol (KNRLF)
- Private placement funding and exchange of debentures; holders of up to $5,245,000 can exchange their 2019 debentures for 2020 debentures bearing interest at 8% per annum
- Letter of intent executed for a $6.5 million revenue and $700,000 in EBITDA electrical efficiency company.
CEO of Kontrol Energy, Paul Ghezzi was quoted, “2018 was an important year of growth for Kontrol. In addition to delivering strong year over year revenue growth, we achieved record revenues in our Q4 2018 of $4.1 million and positive adjusted EBITDA,". Mr. Ghezzi further stated, “We exit 2018 with a revenue run rate of $16 million annualized. With our continued organic growth and next acquisition target announced we look forward to a robust fiscal 2019." With all the accomplishments and milestones met in 2018 through the Company’s series of organic growth and acquisitions, 2019 should continue this growth trajectory and shareholders should expect continued value creation!
Furthermore, the Company completed its first Conference Call to discuss with investors its quarterly results. The Company also provided some key points of information that investors should pay close attention to! Some highlights we believe are quite important that investors should note are: the Company anticipates receiving DTC Eligibility for its shares KNRLF on the OTCQB in the following weeks.
Receiving DTC Eligibility will help Kontrol Energy Inc. to increase its exposure to more investors in the United States and should also provide more liquidity for the Company. Kontrol also stated that in 2019, 5 – 10% of the Company’s revenues will come from the Cannabis sector. This is very interesting information because this tells us that Kontrol will continue to increase its cannabis vertical and more possible partnerships with cultivators are underway. Kontrol already has three clients in the cannabis space. Mr. Paul Ghezzi CEO of Kontrol Energy also stated that they anticipate the Company to be cash flow positive in 2019. The conference call revealed that the Toyota Tsusho partnership targets approximately 200 factories over 5 years across North America. This partnership is expected to generate $1,000,000 in CapEx for each facility and the company is currently operating 3 pilots with Toyota. Revenues are expected to be reflected during the Company’s third quarter.
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