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BURNABY, BC \u2013 February 8, 2022\u00a0\u2013 Tantalus Systems (TSX: GRID) (\u201cTantalus\u201d or the \u201cCompany\u201d), a company focused on helping build sustainable utilities for the future, is pleased to announce 2021 operating and preliminary financial results for 2021 along with an improving outlook going into 2022 as utilities accelerate smart grid investments.<\/p>\n
\u201cWe are extremely pleased to provide this update to our shareholders as Tantalus\u2019 business has never been stronger as evidenced by the year-over-year growth in our orders by 27.5%, expansion of our user community by 25 utilities in 2021, accessing over CAD$20 million through two financings as a public company and entering 2022 with our highest level of revenue backlog to commence a year,\u201d said Peter Londa, President & CEO of Tantalus. \u201cLooking forward to this year, we anticipate strong revenue growth with approximately US$27 million in revenue backlog for 2022, coupled with strong secular drivers that are requiring utilities to modernize their distribution grids. Our strong balance sheet enabled us to execute the recently announced acquisition of Congruitive which places Tantalus at the forefront of helping utilities prepare for the significant impact that electric vehicles and distributed energy resources will have on their resiliency and reliability. We believe Tantalus is well-positioned to provide our shareholders with a long trajectory of growth for our business.<\/p>\n
2021 BUSINESS HIGHLIGHTS<\/p>\n
Commercial Success<\/p>\n
The Company delivered US$37.5 million in orders converted from its sales pipeline, representing year-over-year growth of approximately 27.5%, an annual record for the Company.<\/p>\n<\/li>\n
\u00a0Transformation of Our Capital Structure<\/p>\n
Technology & Research and Development (\u201cR&D\u201d) Enhancements<\/p>\n
Financial Results<\/p>\n
Financial information is reported by Tantalus in United States dollars (\u201cUS$\u201d) unless otherwise specified and is presented in accordance with International Financial Reporting Standards (\u201cIFRS\u201d).<\/p>\n
STRONG MOMENTUM HEADING INTO 2022<\/p>\n
About Tantalus Systems Holding Inc. (TSX: GRID)<\/p>\n
Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of public power and electric cooperative utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at\u00a0www.tantalus.com<\/a>.<\/p>\n Non-IFRS References:<\/em><\/p>\n This news release includes references to Gross Profit. Gross Profit is a supplementary financial measure and is calculated as revenues less cost of sales.<\/em><\/p>\n This news release also includes reference to Adjusted EBITDA and Adjusted Working Capital. Adjusted EBITDA and Adjusted Working Capital are non-IFRS financial measures, which do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. Adjusted EBITDA is comprised of income (loss) less interest, income tax, depreciation, amortization, stock-based compensation, foreign exchange gain (loss) and other non-core business related income \/ expenses and is provided as a proxy for the cash earnings from the operations of the business. Management believes Adjusted Working Capital is a useful indicator for investors, and is used by management, for evaluating the operating liquidity available to the Company. Adjusted Working Capital is comprised of current assets less current liabilities, exclusive of the Company\u2019s bank loan.<\/em><\/p>\n Forward-Looking Statements:<\/em><\/p>\n This news release contains \u201cforward-looking information\u201d within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words \u201cbelieves\u201d, \u201cmay\u201d, \u201cplans\u201d, \u201cwill\u201d, \u201canticipates\u201d, \u201cintends\u201d, \u201ccould\u201d, \u201cestimates\u201d, \u201cexpects\u201d, \u201cforecasts\u201d, \u201cprojects\u201d and similar expressions, and the negative of such expressions.\u00a0 Forward-looking information in this news release includes statements regarding: we anticipate strong revenue growth with approximately US$27 million in revenue backlog and we continue to witness strong secular drives that are requiring utilities to modernize their distribution grids; our recently announced acquisition of Congruitive will place Tantalus at the forefront of helping utilities prepare for the significant impact that electric vehicles and distributed energy resources will have on their resiliency and reliability; we believe Tantalus is at the right place at the right time to provide our shareholders with a long trajectory of growth for our business; the Company has over 1.63 million available endpoints to deploy in the future that will drive revenue and additional data for its expanding software and analytics packages; preliminary estimated financial results for 2021; the Company\u2019s balance sheet continues to support a net positive cash balance, enabling Tantalus to accelerate strategic growth initiatives moving forward; the Company anticipates releasing its financial results for the three and twelve months ended December 31, 2021, during the week of March 21, 2022; the Company anticipates growing revenue year-over-year by 20% – 25% in 2022, targeting approximately US$38.5 to 40.0 million in 2022; demand for the Congruitive solution is expected to grow significantly as EV and DER adoption continues to expand rapidly in 2022; and, the Company is actively evaluating several other M&A opportunities along with additional strategic growth initiatives.<\/em><\/p>\n To the extent any forward-looking information in this news release constitutes a \u201cfinancial outlook\u201d within the meaning of securities laws, such information is being provided because management\u2019s estimate of the future financial performance of Tantalus is useful to investors, and readers are cautioned that this information may not be appropriate for any other purpose and that they should not place undue reliance on such information.<\/em><\/p>\n In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: the expected impact of COVID-19 and the expected timing of new product introductions.\u00a0 While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.\u00a0 Additionally, there are known and unknown risk factors which could cause Tantalus\u2019 actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading \u201cRisk Factors\u201d in the Tantalus\u2019 Annual Information Form dated May 18, 2021, as well as those risk factors included with Tantalus\u2019 continuous disclosure filings with Canadian securities regulatory authorities available at\u00a0www.sedar.com<\/a>.\u00a0 All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.<\/em><\/p>\n Contact Tantalus:<\/strong><\/p>\n Jacquie Hudson<\/em><\/p>\n Marketing Communications Manager<\/p>\n 613-552-4244<\/p>\n jhudson@tantalus.com<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n <\/p>\n\n\n\n\n