Today's News

Burnaby, BC, January 30, 2023--(T-Net)--Tantalus Systems (TSX: GRID), a company focused on helping build sustainable utilities for the future, announced preliminary financial results for the quarter and year ended December 31, 2022.

Tantalus said in a release that it believes that it will be reporting strong quarterly and annual performance (as highlighted below) and is ending the year well-positioned for continued growth in 2023 as utilities accelerate smart grid investments.

Peter Londa, President and CEO, Tantalus Systems Corp.

"We started 2022 with the transformative acquisition of Congruitive to position Tantalus at the forefront of helping utilities prepare for the integration of microgrids, roof-top solar, storage and electric vehicle charging infrastructure and ended the year with strong financial results including a record level of revenue generated in a quarter," said Peter Londa, President & CEO of Tantalus Systems.

"As we turn our sights towards 2023, we continue to witness improving visibility into our financial position, strong demand for our new TRUSense Gateway product offering and favorable tailwinds across the utility industry," said Mr. Londa.

Summary of Highlights

• Q4 Revenue: Estimated at US$12.0 million to US$12.2 million ($16 milion CDN), representing the highest quarterly revenue in Tantalus' history and approximately 60% growth over the prior year.
  
  
• 2022 Revenue: Estimated at US$39.5 million to US$39.7 million ($53 million CDN), representing approximately 23% growth over the prior year.
  
  
• Annual Recurring Revenue (ARR)[1] : Estimated at approximately US$9.8 million as at December 31, 2022, representing approximately 13% growth over the prior year.
  
  
• Q4 Adjusted EBITDA[2] : Estimated at positive US$0.075 million to US$0.15 million.
  
  
• 2022 Adjusted EBITDA[3] : Estimated at (US$2.3) million to (US$2.5) million reflecting the Company's investments in R&D initiatives.
  
  
• Cash: US$5.9 million as of December 31, 2022 which is estimated to be sufficient to support ongoing operations and R&D investments, exclusive of US$0.7 million restricted cash.
  
  
• Orders: The Company converted approximately US$42 million in orders from its sales pipeline, representing the highest order conversion for a calendar year in the Company's history and year-over-year growth of approximately 12%.

Financial information is reported in United States dollars ("US$") unless otherwise specified and is presented in accordance with International Financial Reporting Standards ("IFRS"). The financial information contained in this press release is preliminary and subject to finalization and audit.

The Company anticipates releasing its financial results for the three and twelve months ended December 31, 2022 during the week of March 13, 2023.

About Tantalus Systems Holding Inc. (TSX: GRID)

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 www.tantalus.com.

Non-IFRS and Other Financial Measures:

This press release refers to the following non-IFRS measures:

"Adjusted EBITDA" is comprised as income (loss) less interest, income tax, depreciation, amortization, stock-based compensation, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

"Recurring Revenue" is comprised of the Company's revenues that are recurring in nature and attributable to its analytics and other software as a service ("SaaS") offerings, hosting services and software maintenance and technical support agreement services. "Annual Recurring Revenue" or "ARR" is comprised of the Company's Recurring Revenue as expressed on an annualized revenue basis attributable to its customer agreements at a point in time.

Such non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to a similar measure disclosed by other issuers.