Kraken Expects to Report $40 Million in 2022 Revenue, up 56% Year-Over-Year
12 January 2023 - 10:00PM
Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF), is pleased to
announce a financial update for the year ended December 31, 2022.
While audited results will not be released until April, non-audited
preliminary results show that we have met the mid-point of our $38
million to $42 million revenue guidance for 2022. This represents
more than 50% top line growth year over year. We also expect to be
within the range of EBITDA guidance, previously announced at $5 to
$7 million.
Update on PanGeo Earnout
Further to the press release dated December 9,
2022, and in accordance with the share purchase agreement entered
into on July 20, 2021, the Company paid the first earnout amount of
$4,500,000 (the “First Earnout Amount”) to the
sellers of PanGeo Subsea on January 11, 2023. The Company elected
to satisfy 50% of the First Earnout Amount through the issuance of
an aggregate of 4,500,000 common shares (the “Consideration
Shares”) at a deemed price of $0.50 per Consideration
Share and the remaining 50% of the First Earnout Amount in cash.
The Consideration Shares are subject to a hold period of four
months from the date of issuance.
Management Comments
“2022 was a strong year for Kraken,” said Greg
Reid, Kraken President and CEO. “Against the headwinds of continued
supply chain tightness, inflationary pressures, and a tight labor
market, we still delivered record financial results. In addition,
we recently announced our largest award ever, a $50 million
contract for the Canadian Navy’s Remote Minehunting and Disposal
System and landed several other significant contracts, including a
$14 million subsea battery contract and a $9 million KATFISH
contract with a NATO navy customer. Based on our contract wins to
date and our visibility into our sales pipeline, we expect
continued strong growth in 2023 and beyond. In the defense market,
the macro environment is robust as countries adapt to the new
geopolitical norm to monitor and protect seabed assets and we are
winning new customers and selling more products and services to
existing customers. In the commercial market, we expect continued
growth driven by offering services to companies focused on offshore
wind and offshore energy.”
“We ended 2022 with a cash balance of $8.2
million, up from $5.7 million at the end of September and accounts
receivable/contract assets of $13.0 million,” said Joe MacKay,
Kraken Chief Financial Officer. “Combined with an expectation of
solid EBITDA margins again in 2023 and advances from customer
contracts, as well as a potential $6.0 million from warrants
exercises, we feel confident that our balance sheet has sufficient
flexibility to allow us to execute on our financial plan this year
and beyond. Financial guidance for 2023 will be provided in
conjunction with our audited year end results in April 2023,
consistent with past practice.”
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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 underwater robotic
systems. It provides high-resolution 3D acoustic imaging solutions
and services to enable clients to overcome the challenges in our
oceans - safely, efficiently, and sustainably. Kraken
Robotics is headquartered in Canada and has offices in North and
South America and Europe. 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:Stephen Griffin, Group Marketing
ManagerStephen.Griffin@krakenrobotics.com
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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