Mr. Peter Londa reports

TANTALUS SYSTEMS HOLDING INC. REPORTS FINANCIAL RESULTS FOR Q4 AND FISCAL YEAR OF 2023

Tantalus Systems Holding Inc. has released its financial and operating results for the quarter (Q4) and fiscal year (FY) ended Dec. 31, 2023.

Financial highlights for FY 2023 and Q4 2023:

• Revenue: The company generated the highest annual revenue in its history of $42.1-million (U.S.) ($56.8-million), inclusive of $10.4-million (U.S.) ($14-million) in Q4, representing a 6-per-cent increase over 2022. Revenue contributions from the utility software applications and services segment (software and services) in 2023 and Q4 hit 35 per cent, representing the highest percentage contribution in the company's history.
• Annual recurring revenue (ARR): The company hit another record by growing ARR to approximately $11.5-million (U.S.) ($15.2-million) as of Dec. 31, 2023, representing 17-per-cent growth year-over-year. Recurring revenue recognized in the Q4 represented approximately 24 per cent of total revenue generated.
• Gross profit margin: The company delivered 52 per cent for 2023 and 51 per cent for Q4, compared with 48 per cent and 45 per cent, respectively, over the prior-year periods. The gross profit margin percentage in 2023 is the highest percentage in the company's history and reflects the achievement of an important milestone to drive operating leverage as the business continues to scale.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): The company delivered positive adjusted EBITDA of $350,000 (U.S.) (approximately $500,000) in Q4, compared with positive adjusted EBITDA of $100,000 (U.S.) (approximately $100,000) for the prior-year period. Adjusted EBITDA for FY 2023 approached a point of neutrality at negative $29,000 (U.S.) (approximately negative $40,000) compared with negative $2.4-million (U.S.) (negative $3.1-million) for the prior year. The adjusted EBITDA result for 2023 includes approximately $5-million (U.S.) (approximately $6.8-million) of further investment in the TRUSense Gateway product offering made throughout the year.
• Total assets: The company ended Q4 with $34.8-million (U.S.) ($46-million) as compared with $37.4-million (U.S.) ($50.7-million) as of Dec. 31, 2022.
• Sales orders: The company converted $35.1-million (U.S.) ($47.8-million) in orders through 2023 and added 17 new utilities to its user community, which stands at 288 as of Dec. 31, 2023.

"Delivering record results for revenue, percentage contributions from software and services, gross profit margin percentage, and annual recurring revenue are a testament to the hard work and collaboration of our entire team," said Peter Londa, president and chief executive officer of Tantalus. "We are pleased to maintain a favourable trajectory for our shareholders by delivering another year of growth and reverting back to neutral adjusted EBITDA for the year. We continue to invest heavily in the development and commercialization of the TRUSense Gateway and our TRUSync grid data management software. As we gather feedback from the industry, we believe these investments in R&D [research and development] represent a substantial near- and long-term opportunity for the company, and will ensure Tantalus is well positioned to help utilities accelerate their grid modernization efforts."

The company will hold a conference call and webcast to discuss the financial results on Wednesday, March 27, 2024, at 11 a.m. Eastern Time.

Conference call

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:  access the webcast on-line

Replay information

A conference call and webcast replay will be available until April 3, 2024. To access the conference call replay, please see details below.

United States toll-free:  1-877-344-7529

International toll:  1-412-317-0088

Canada toll-free:  1-855-669-9658

Replay access code:  1490543

Financial statements, and management's discussion and analysis

Please see the company's consolidated financial statements, and related management's discussion and analysis (MD&A) for more details. The financial statements for the three and 12 months ended Dec. 31, 2023, and related MD&A, have been reviewed and approved by Tantalus's audit committee and board of directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed on SEDAR+ and is also available on the company's website.

About Tantalus Systems Holding Inc.

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. Tantalus offers a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. The company's 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.

We seek Safe Harbor.