In today’s article we will provide some insight into the upcoming fourth quarter financials and Financial Year End for Kontrol Energy (CSE: KNR) (OTCQB: KNRLF) which we believe are due at the end of April. In a previous article titled “Can Shares of Kontrol Energy Rise over 300% in 2020” we speculated that KNR would post revenues of $11.4 Million for their third quarter based on an average of quarterly revenues of CAD $3.8 Million. Using these numbers, we estimate that KNR’s fourth quarter earnings may be somewhere around $15.2M
On November 28th, 2019, Kontrol Announced that they had reported CAD $10.9 Million for the 9 months ending September 30th, 2019. This was an increase of 64% year over year and revenue for the 3 months were $3.3 Million for the quarter, up 36% year over year. As we calculated $11.4$ Million for the 9-month period with the company reporting $10.9 Million, we were only off by $500,000.
However it is important to note that in the Q3 press release, it is stated that an order from Toyota Tsusho had moved from Q3 to Q4 which should be reflected in the upcoming financials. Furthermore, KNR management stated that two heat and power projects have been moved from Q3 2019 to Q1 2020 and “This had an impact of approximately $600,000 of revenue difference in Q3”. With this in mind and the $600,000 impact, had the projects not been affected to seasonality and timing, this would have resulted in beating our estimates by $100,000 for a total in revenues of $11.5 Million.
Now we will add our estimations along with some previous contracts to allow us to predict the best possible estimate for KNR’s upcoming earnings report. If we use our estimated average of revenues per quarter of $3.8 Million and add the deferred contract of USD $200,000 (~CAD 260,000) and the additional Toyota order of USD 150,000 (~CAD 198,000) this would amount to a total of $15.65 Million. This increases our previous estimate of $15.2 Million for full year revenues by $465,000 and is in line with KNR’s current, publicly stated target which they expect its Q4 full year results to fall in between $15 - $16 Million in revenue.
With these calculations in mind, we feel confident that Kontrol Energy may report in between $15.2M - $15.65 Million full year revenues for 2019.
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