Tantalus Systems Holding Inc. Reports First Quarter 2025 Financial Results

Yahoo

07-05-2025

"Our team at Tantalus got off to a solid start in 2025 by delivering a new milestone for revenue generated in the first quarter of a calendar year, and we are encouraged by the continued growth in our software and services segment as utilities embrace our data-centric approach to grid modernization," said Peter Londa, President & CEO of Tantalus. "Our data-driven platform offers utilities a secure, flexible and affordable path to make sustained progress with their modernization efforts amid the current economic uncertainty. Tantalus is helping utilities generate additional value from existing infrastructure to improve efficiency, reliability and resiliency regardless of the current economic headwinds, as evidenced by continued expansion of our TRUSense Gateway™ and analytics offerings."
Liquidity: At March 31, 2025, Tantalus had available liquidity of approximately $20.7 million as compared to $9.4 million as at March 31, 2024. The available liquidity was comprised of a cash balance of $15.9 million and borrowing availability of $4.8 million under its line of credit.
Cash Flow from Operations: The Company generated positive Cash Flow from Operating Activities of $3.2 million compared to negative $239,000 in the prior year period.
Adjusted EBITDA 1 : The Company delivered positive Adjusted EBITDA of $317,000, reflecting a strong improvement when compared to negative $536,000 in the prior year period.
Loss per Share: Diluted loss per share was $0.01 compared to a diluted loss per share of $0.03 from the prior year period.
Net Loss: The Company generated a net loss for the period of $651,000 reflecting an improvement on a comparative basis from the prior year period loss of $1.6 million.
Gross Profit Margin 1 : The Company generated 55% Gross Profit Margin, an increase of 130 basis points over the prior year as a result of the product mix within the Connected Devices segment and higher revenue contributions from the Software segment.
Revenue: The Company increased revenue by 27% year-over-year to $11.9 million. Revenue from Connected Devices and Infrastructure ("Connected Devices") increased by $2.0 million or 34% and Utility Software Applications & Services ("Software") revenue increased by $0.5 million or 14%. The increases in revenue are a result of adding new utility customers and continuing to expand deployments with existing accounts. Recurring Revenue represented 26% of total revenue in the quarter.
All amounts presented in this news release are in United States dollars ("U.S. dollars") and all amounts presented in the attached financial tables are in thousands of U.S. dollars, unless otherwise noted.
Burnaby, British Columbia--(Newsfile Corp. - May 7, 2025) - Tantalus Systems (TSX: GRID) (OTCQX: TGMPF) ("Tantalus" or the "Company"), a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data, is pleased to announce its financial and operating results for the three-month period ended March 31, 2025.
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OTHER KEY DEVELOPMENTS
Sales Order Conversion : The Company converted $19.5 million in orders from its sales pipeline, the second highest amount converted during a quarter in the Company's history.
Growth of User Community : The Company added 4 new utilities in Q1 2025.
TRUSense Gateway Progress : As of the date of this release, the Company has received initial orders from 33 utilities to trial, pilot and deploy the TRUSense Gateway.
Expansion of Leadership Team : During the quarter, Tantalus announced the appointments of Mr. Azim Lalani as Chief Financial Officer and Mr. Chris Allen as Chief Operating Officer and Executive Vice President of Solution Strategy.
Qualification for the OTCQX® Best Market: In February 2025, Tantalus began trading on the OTCQX® Best Market under the ticker symbol TGMPF.
SUBSEQUENT EVENTS
Tariffs: Certain of the Company's suppliers and contract manufacturers are located in the Philippines. On April 5, 2025, the United States ("U.S.") implemented tariffs of 10% on products imported from the Philippines and other jurisdictions into the U.S. The effect of these potential tariffs on our business and financial condition will be influenced by several unknown factors, including the duration of such tariffs and their scope and nature. Any further escalation of trade tensions, additional tariffs, retaliatory measures, or shifts in international trade policies could adversely impact our business and financial condition.
Extension of Credit Agreement: On April 17, 2025, the Company favorably amended its Line of Credit facility with Comerica Bank by extending the maturity date to June 30, 2027, reducing the interest rate spread, modifying or eliminating certain covenants, and incorporating other administrative changes. On April 22, 2025, Tantalus fully repaid the outstanding balance on the Comerica Line of Credit facility. The Company currently has access to the full availability under the $8.5 million Line of Credit facility to support its ongoing operations.
Q1 2025 CONFERENCE CALL
Management will hold a conference call and webcast to discuss the financial results on Thursday May 8, 2025 at 12:00 pm Eastern Time.
Participant Dial In (Toll Free): 1-844-854-4410
Participant International Dial In: 1-412-317-5791
Participants, please ask to be joined to the Tantalus Systems call.
WEBCAST
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=DZVlbFfP
REPLAY INFORMATION
A conference call and webcast replay will be available until May 15, 2025. To access the conference call replay, please see details below:
US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 1-855-669-9658
Replay Access Code: 6524081
FINANCIAL STATEMENTS AND MANAGEMENT DISCUSSION & ANALYSIS
Information included in this press release is a summary of results and financial statement excerpts and should be read in conjunction with the Company's condensed consolidated financial statements for the three-month period ended March 31, 2025, audited financial statements for the year ended December 31, 2024 and related Management's Discussion & Analysis ("MD&A") for the three-month period ended March 31, 2025 and the year ended December 31, 2024 which can be found on SEDAR+ at www.sedarplus.ca and is also available on the Company's website at www.tantalus.com. All results are reported in U.S. dollars and all amounts included in the tables attached to this press release are reported in thousands of U.S. dollars, unless otherwise noted.
All comparisons presented in this press release are between the three-month periods ended March 31, 2025 and March 31, 2024, unless otherwise indicated.
The accompanying notes to the financial statements are an integral part of the following consolidated financial statements and can be found on the Company's website at www.tantalus.com or at www.sedarplus.ca.
March 31,
December 31,
Note
2025
2024
Assets
6
Current assets
Cash
$
15,937
$
13,219
Accounts receivable
3
10,087
10,011
Inventory
4
5,021
4,832
Prepaid expenses and other assets
1,518
1,829
Total current assets
32,562
29,891
Property and equipment
854
731
Right of Use assets
1,884
2,038
Intangible assets
5,251
5,443
Goodwill
3,445
3,445
Total assets
$
43,996
$
41,548
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities
5
$
15,519
$
15,629
Deferred revenue and deposits
9,440
6,055
Lease liabilities
813
843
Line of credit
6
3,679
3,679
Term loan - current portion
6
1,924
1,535
Total current liabilities
31,375
27,740
Deferred revenue and deposits
81
103
Lease liabilities
1,293
1,392
Term loan
6
4,821
5,372
Total liabilities
37,571
34,607
Total shareholders' equity
6,425
6,941
Total liabilities and shareholders' equity
$
43,996
$
41,548
See accompanying notes to consolidated financial statements.
Three months
Three months
ended March 31,
ended March 31,
Note
2025
2024
Revenues
10
$
11,904
$
9,395
Cost of sales
4, 10
5,397
4,384
6,506
5,011
Expenses
Sales and marketing
7(d)
2,751
2,043
Research and development
7(d)
1,531
2,057
General and administrative
7(d)
2,149
1,671
Depreciation and amortization
418
445
6,849
6,215
Operating loss
(343
)
(1,204
)
Other (expenses) earnings
Foreign exchange gain
54
86
Finance expenses
(362
)
(436
)
(308
)
(350
)
Loss before income taxes
(651
)
(1,554
)
Income tax expense
-
1
Total comprehensive loss for the period
$
(651
)
$
(1,555
)
Loss per share (basic and diluted)
$
(0.01
)
$
(0.03
)
Weighted average number of shares outstanding (basic and diluted)
8
50,848
44,596
See accompanying notes to consolidated financial statements.
Three months
Three months
ended March 31,
ended March 31,
Note
2025
2024
Cash (used in) provided by
Operating Activities
Loss for the period
$
(651
)
$
(1,555
)
Adjustments to reconcile loss for the period to net cash flows:
Unrealized foreign exchange (gain) loss
22
(35
)
Depreciation of equipment
72
92
Amortization of intangible assets
192
192
Amortization of right-of-use asset
154
160
Share-based compensation
7 (d)
242
223
Finance expenses
362
436
Amortization of deferred financing cost
21
-
Changes in Non-Cash Operating Working Capital
Accounts receivable
3
(75
)
(2,312
)
Inventory
4
(189
)
863
Prepaid expenses and other assets
311
(86
)
Accounts payable and accrued liabilities
5
(217
)
(1,868
)
Deferred revenue and deposits
3,363
4,086
Lease payments for interest
(43
)
(54
)
Interest paid on loans
6
(319
)
(381
)
Net Cash provided by (used in) Operating Activities
3,245
(239
)
Investing Activities
Purchase of equipment
(194
)
(51
)
Net Cash used in Investing Activities
(194
)
(51
)
Financing Activities
Repayment of indebtedness
6
(182
)
-
Proceeds from indebtedness
6
-
5
Change in restricted cash
-
673
Repayment of lease liabilities
(151
)
(138
)
Net Cash (used in) provided by Financing Activities
(333
)
541
Effect of foreign exchange on cash
-
(5
)
Increase in cash
2,718
245
Cash, beginning of period
13,219
5,154
Cash, end of period
$
15,937
$
5,399​
NON-IFRS AND OTHER FINANCIAL MEASURES
This press release contains certain financial measures that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, and cash determined in accordance with IFRS, as indicators of our performance.
We provide these additional non-IFRS measures, non-IFRS ratios and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities.
"EBITDA" is calculated as income (loss) adjusted for interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors and is used by management in evaluating the operating performance of the Company.
"Adjusted EBITDA" is calculated as income (loss) adjusted for 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. Beginning in the fourth quarter of 2024, the Company excludes non-recurring items such as restructuring expenses, financing costs, government subsidies and recovery of contingent liability in our presentation of Adjusted EBITDA as these expenses are not representative of ongoing operating performance.
This news release also refers to the following non-IFRS ratios:
"Gross Profit" is calculated as revenues less cost of sales. Management believes that Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.
"Gross Profit Margin" is calculated as Gross Profit expressed as a percentage of the Company's revenues. Management believes that Gross Profit Margin is a useful indicator for investors and is used by management in evaluating the operating performance of the Company.
"Adjusted EBITDA Margin" is calculated as Adjusted EBITDA expressed as a percentage of the Company's revenues. Management believes that Adjusted EBITDA Margin is a useful indicator for investors and is used by management in evaluating the operating performance of the Company.
This news release also refers to the following supplementary financial measures:
"Recurring Revenue" is comprised of the Company's revenues recognized in a period that are recurring in nature and attributable to its analytics, subscriptions and software as a service ("SaaS") offerings, hosting services, software maintenance and technical support agreement services.
SELECTED FINANCIAL INFORMATION
Three months
ended
March 31, 2025
Three months
ended
March 31, 2024
Revenue
$
11,904
$
9,395
Gross Profit
6,506
5,011
Gross Profit Margin % 1
55%
53%
Operating expenses
6,849
6,215
Adjusted EBITDA 1
317
(536
)
Adjusted EBITDA Margin 1
3%
-6%
Loss for the period
(651
)
(1,555
)
Loss per share -diluted
$
(0.01
)
$
(0.03
)
Weighted average number of shares outstanding:
Basic and diluted
50,848
44,596
Cash
15,937
5,399
GROSS PROFIT1 AND GROSS PROFIT MARGIN1 CALCULATIONS
Connected Devices and Infrastructure
Utility Software Applications and Services
Three months ended March 31, 2025
%
%
Total
%
Revenue
$
7,789
100%
$
4,114
100%
$
11,904
100%
Cost of sales
4,326
56%
1,072
26%
5,397
45%
Gross Profit
$
3,463
44%
$
3,043
74%
$
6,506
55%
Percentage of Total Gross Profit
53%
47%
100%
Connected Devices and Infrastructure
Utility Software Applications and Services
Three months ended March 31, 2024
%
%
Total
%
Revenue
$
5,797
100%
$
3,598
100%
$
9,395
100%
Cost of sales
3,370
58%
1,014
28%
4,384
47%
Gross Profit
$
2,427
42%
$
2,585
72%
$
5,011
53%
Percentage of Total Gross Profit
48%
52%
100%
RECONCILIATION OF LOSS TO ADJUSTED EBITDA1
Three months ended March 31, 2025
Three months ended March 31, 2024
Loss for the period
$
(651
)
$
(1,555
)
Finance expense
362
436
Income tax expense
-
1
Depreciation and amortization
418
445
EBITDA
129
(674
)
Stock-based compensation
242
223
Foreign exchange
(54
)
(86
)
Adjusted EBITDA
$
317
$
(536​
)
ABOUT TANTALUS SYSTEMS HOLDING INC. (TSX: GRID) (OTCQX: TGMPF)
Tantalus is a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data across all their devices and systems deployed throughout the entire distribution grid. We offer a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. Our solutions provide utilities with the flexibility they need to get the most value from existing infrastructure investments while leveraging advanced capabilities to plan for future requirements. Learn more at www.tantalus.com.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements such as those relating to the ability of Tantalus' solutions, including the TRUSense Gateway and analytics offerings, to assist customers in addressing issues relating to grid modernization and in generating additional value from existing infrastructure to improve efficiency, reliability and resiliency regardless of economic factors, the continuing adoption of the Company's product offerings by customers, and the Company's ability to execute on its plan.
To the extent any forward-looking information in this news release constitutes a "financial outlook" within the meaning of securities laws, such information is being provided because management's 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.
In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: increasing demand for the Company's solutions in support of utilities' grid modernization efforts, the commercialization and adoption of the TRUSense Gateway, and the ability of the Company to execute on its plan. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus' 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 "Risk Factors" in the Company's Annual Information Form filed on March 31, 2025, as well as those risk factors included with Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. 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.
CONTACT TANTALUS
Deborah Honig
Investor Relations
647-203-8793 | [e-mail]
Website: www.tantalus.com
LinkedIn: LinkedIn/company/tantalus
X (formerly Twitter): @TantalusCorp
1 See definitions for Non-IFRS and Other Financial Measures below.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251197