Kontrol Technologies (KNRLF) Q2 2024 earnings summary

Executive summary

• Revenues for Q2 2024 were $3.7 million, down from $4.7 million in Q2 2023; six-month revenues were $7.4 million, down from $9.1 million year-over-year.

• Gross margin for the six months ended June 30, 2024 was 58%, compared to 61% for the same period last year.

• Income from continuing operations for the six months was $12.9 million, a significant turnaround from a loss of $371,057 in the prior year.

• A $13.3 million gain on sale of air monitoring and compliance assets was recognized in Q2 2024.

• All interest-bearing bank debt was paid off, with $11.1 million in principal payments during the first half of 2024.

Financial highlights

• Q2 2024 gross profit was $2.0 million, down from $2.9 million in Q2 2023; six-month gross profit was $4.4 million, down from $5.5 million year-over-year.

• Net income and comprehensive income for the six months was $21.4 million, driven by the asset sale.

• Basic EPS from continuing operations was $0.22 for the six months, up from $(0.01) year-over-year.

• Adjusted EBITDA from continuing operations for the six months was $440,037, down from $1.5 million in the prior year.

Outlook and guidance

• Positioned to accelerate organic growth and pursue strategic acquisitions following balance sheet improvements.

• Acquisition targets under review focus on sustainable buildings, recurring revenues, and established customer bases.