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TORONTO — Kontrol Technologies Corp. ( NEO:KNR) ( OTCQB:KNRLF) ( FSE:1K8) (“Kontrol” or the “Company“) a leader in smart buildings and cities through IoT, Cloud and SaaS technology, provided financial results for the three months and nine months ended September 30th, 2022. A complete set of the Financial Statements and Management’s Discussion & Analysis have been filed on SEDAR (

Third Quarter and Year-to-Date 2022 Highlights

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  • Revenues for the three months ended September 30, 2022, were $19.9 million, down 7.5% over the same quarter in the prior year
  • Revenues for the nine months ended September 30, 2022, were $75.6 million, up 161% over the same period in the prior year
  • The Company suffered a net loss of $(5.2 million) for the three months ended September 30, 2022
  • Net loss for the nine months ended September 30, 2022, was $(2.4 million), compared to net income of $1.4 million for the same period in the prior year
  • Adjusted EBITDA* loss for the three months ended September 30, 2022, was $(4.0 million)
  • Adjusted EBITDA* for the nine months ended September 30, 2022, was $545,029, compared to adjusted EBITDA* of $5.0 million for the same period in the prior year
  • Gross profit for the nine months ended September 30, 2022, was $12.7 million, compared to $10.0 million over the same period in the prior year

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“This was a very challenging quarter, and we were impacted by a number of economic factors simultaneously, including tight labor markets, supply chain issues, lack of required materials and ongoing material shortages,” says Paul Ghezzi, CEO of Kontrol Technologies. “While our commercial and industrial service and solutions business performed in line with expectations, our operating subsidiary Global HVAC and Automation was most severely impacted. Adding to the overall market conditions the rapid rise in interest has created volatility for new construction opportunities in the multi-residential sector.”

Corporate Financial Outlook

Kontrol provided guidance for fiscal year 2022 in our press release of November 17, 2021, which included a revenue estimate for the fiscal year 2022 of $95 million to $105 million. Revenue for the nine months ended September 30, 2022 was $75.6 million, and therefore lower than the amount previously estimated. That press release also included an EBITDA estimate for the fiscal year 2022 of $10 million to $12 million, while the actual adjusted EBITDA for the nine months ended September 30, 2022 was $545,029.

We now expect that fiscal year 2022 targets will not be met. The expected miss is primarily related to the acquisition of Global HVAC and Automation (“Global”). Global’s large-scale HVAC operation is focussed primarily on the high growth multi-residential and condominium market. During Q3 2022 Global was significantly impacted by COVID disruptions, material shortages, supply chain disruptions and wage inflation. Collectively, these impacts caused a significant reduction in EBITDA and net income.

A number of factors contributed to a reduction in revenue and earnings:

  • As certain key construction projects neared completion, additional labour expenses were required and at higher rates due to overtime and hourly wage increases
  • Material shortages, supply chain disruptions, and increases in material costs have impacted overall costs and margins
  • The ongoing shutdowns related to COVID in China have added to supply chain disruptions have impacted the delivery of various HVAC equipment
  • In prior periods the Company was successful at working with some customers to get extra revenue related to material and labour increases. However, in the third quarter the Company was not able to secure offsetting revenue from every customer
  • The unprecedented rise in interest rates due to central bank tightening of monetary policy has impacted the ability to secure new projects in the multi-residential sector. This has caused a delay in the initiation of new projects that were previously anticipated.

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As at September 30, 2022, the Company was not in compliance with certain financial covenants in its existing credit facilities, which include the Company’s revolving credit facility and term facility. As a result, the Company’s term loan has been classified as a current liability at September 30, 2022. The Company is in discussions with the relevant financial institution to request a waiver with respect to the breached covenants but has not yet received written confirmation that such waiver will be granted.

Q3 2022 Financial Summary

Financial Results

Three months ended

Nine months ended


Sept 30, 2022

Sept 30, 2021

Sept 30, 2022

Sept 30, 2021






Gross profit (loss)





Net income (loss)





Basic EPS





Diluted EPS





Add for adjusted EBITDA reconciliation:

Amortization and depr.





Finance expense





Share based compensation





Listing expense





Adjusted EBITDA* (loss)





* Adjusted EBITDA is a non-IFRS financial measure. The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, acquisition related expenses, and listing expense.

Conference Call

The Company will host a conference call on Monday, November 14th, 2022, at 5:00 PM Eastern Time to discuss Kontrol’s third quarter 2022 financial results. To participate, please use the following information:

Event Details:


Kontrol Technologies Reports Q3 2022 Financial Results

Event Date and Time:

November 14th, 2022 @ 5:00 PM Eastern

Event Duration:

45 Minutes

Audience URL:

Call- in Numbers:

Confirmation #: 78640141

Local: 416-764-8609 (Toronto)

North American Toll Free: 888-390-0605

Please dial in at least 5 minutes before the call start time to ensure timely participation.

A recording of the Q1 2022 interim financial results conference call is available here:

Reply Local:


Replay North American Toll Free:


Replay Entry Code:


Replay Webcast Link:

Replay Expiration Date:

November 21st, 2022

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About Kontrol Technologies Corp.

Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

Additional information about Kontrol Technologies Corp. can be found on its website at and by reviewing its profile on SEDAR at

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Non-IFRS Financial Measures

The Company defines Adjusted EBITDA as net income or loss before interest, income taxes, amortization, and depreciation, share based compensation, and acquisition related expenses. The Company believes Adjusted EBITDA is a useful measure as it provides information to management about the operating and financial performance of the Company and its ability to generate operating cash flow to fund future working capital needs, as well as future growth. Adjusted EBITDA may also be used by investors and analysts for the purpose of valuing the Company. Readers are cautioned that these non-IFRS definitions are not recognized measures under IFRS, do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to net earnings determined in accordance with IFRS or as indicators of performance, liquidity, or cash flows.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy.

Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that sufficient capital will be available to the Company and that technology will be as effective as anticipated.

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However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to, that sufficient capital and financing cannot be obtained on reasonable terms, or at all, that technologies will not prove as effective as expected, that customers and potential customers will not be as accepting of the Company’s product and service offering as expected, and government and regulatory factors impacting the energy conservation industry.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. Kontrol does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

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Kontrol Technologies Corp.
Paul Ghezzi
[email protected]
601 Rowntree Dairy Road, Unit B
Woodbridge, ON L4L 5T8
Tel: (905) 766.0400




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