Kraken Expects to Report $40 Million in 2022 Revenue, up 56% Year-Over-Year
ST. JOHN’S, Newfoundland and Labrador, Jan. 12, 2023 (GLOBE NEWSWIRE) -- 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.
“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.”
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.
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For further information:
Stephen Griffin, Group Marketing Manager
Joe MacKay, Chief Financial Officer
Greg Reid, Chief Operating Officer
Sean Peasgood, Investor Relations