ST. JOHN’S, NEWFOUNDLAND, May 11, 2021 /GLOBE NEWSWIRE/ — 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 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.
President & 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.
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
Greg Reid, Chief Operating Officer
Sean Peasgood, Investor Relations
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