Technology
QualTek Announces Fourth Quarter and Annual 2021 Financial Results
Published
3 years agoon
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– Full year 2021 results include revenue of $612.2 million and adjusted EBITDA of $60.0 million
– Reported 24-month backlog at the end of Q4 2021 was $2.1 Billion, an increase of 22.0% over year end 2020
– Fourth quarter 2021 results include revenue of $147.1 million and adjusted EBITDA of $4.0 million
– Successfully completed four acquisitions and added significant new contract awards
BLUE BELL, Pa., March 31, 2022 /PRNewswire/ — QualTek Services Inc. (“QualTek” or the “Company”) (NASDAQ: QTEK), a leading turnkey provider of infrastructure services to the North American 5G wireless, telecom, power grid modernization, and renewable energy sectors, announced today a strong 2021 fourth quarter and full-year financial results of its subsidiary QualTek HoldCo, LLC.
Fourth quarter 2021 revenue was up 11.0% to $147.1 million, compared to $132.4 million for the fourth quarter of 2020. Net loss from continuing operations for the fourth quarter 2021 was $81.1 million compared to net loss from continuing operations of $56.3 million in the fourth quarter of 2020. Excluding one-time impairment of goodwill, Net loss from continuing operations for the fourth quarter 2021 was $28.6 million compared to a net loss from continuing operations of $27.5 million in the fourth quarter of 2020. Fourth quarter 2021 adjusted EBITDA was $4.0 million compared to a loss of $13.5 million for the fourth quarter of 2020. Backlog at the end of the fourth quarter was $2.1 billion which is a 22% increase over the fourth quarter 2020.
Full year 2021 revenue was $612.2 million, a decline of 6.7% from $656.5 million for the full year 2020. Net loss from continuing operations for 2021 was $101.6 million compared to net loss from continuing operations of $94.2 million in 2020. Excluding one-time impairment of goodwill, Net loss from continuing operations for 2021 improved to $49.1 million compared to a net loss from continuing operations of $65.4 million in 2020. Full year 2021 adjusted EBITDA increased 356.9% to $60.0 million, compared to $13.1 million for the full year 2020. The increase in adjusted EBITDA was driven primarily by margin improvement initiatives across both the Telecom and Renewables & Recovery segments. On a pro-forma basis, assuming the recently closed acquisitions had been owned for the full year ending December 31, 2021, QualTek estimates adjusted EBITDA would be approximately 72.0 million. For the full year 2022, guidance remains unchanged.
As QualTek has indicated in the past, strong industry tailwinds including grid modernization and infrastructure improvements along with the C-band spectrum deployment are expected to drive major 5G infrastructure buildouts and provide significant growth opportunities across the business. The company is also seeing reductions in COVID-19 health and safety protocols in key regions allowing for a return to pre-covid scale and efficiency. QualTek expects continued growth in both segments during 2022 and beyond.
Scott Hisey, QualTek’s Chief Executive Officer, said, “2021 was a critical year for the company. We successfully closed our SPAC transaction creating over $80 million of additional liquidity to allow us to execute on our strategic growth plan. Full year 2021 adjusted EBITDA grew to $60.0 million, a $47 million increase from 2020. QualTek remains on a path to be a significant industry player across the telecommunications and power industries. We successfully grew our rolling two-year backlog by 22% to $2.1 billion during the year. This growth is a testament to our strong performance and our customer’s reliance on QualTek to play a critical role in building out 5G networks and participating in the long-term grid modernization initiatives. We are very excited for the future of QualTek.”
Management will hold a conference call to discuss these results on Friday, April 1, 2022, at 9:00 a.m. Eastern Time. The call-in number for the conference call is 1 (888) 330 – 2454 or 1 (240) 789 – 2714 using passcode 2965812. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the investor relations section of the Company’s website at qualtekservices.com.
The following tables set forth the financial results for the periods ended December 31, 2021 and 2020:
BCP QUALTEK HOLDCO, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per unit information)
For the Years Ended December 31,
2021
2020
Revenue
$ 612,241
$ 656,524
Costs and expenses:
Cost of revenues
502,688
597,583
General and administrative
50,994
47,049
Transaction expenses
3,826
988
Loss on legal settlement
2,600
–
Change in fair value of contingent consideration
(4,780)
(7,081)
Impairment of goodwill
52,487
28,802
Depreciation and amortization
53,675
46,475
Total costs and expenses
661,490
713,816
Loss from operations
(49,249)
(57,292)
Other income (expense):
Gain on sale/ disposal of property and equipment
587
729
Interest expense
(50,477)
(37,659)
Loss on extinguishment of convertible notes
(2,436)
–
Total other expense
(52,326)
(36,930)
Loss from continuing operations
(101,575)
(94,222)
Loss from discontinued operations
(8,851)
(3,865)
Net loss
(110,426)
(98,087)
Other comprehensive income (loss):
Foreign currency translation adjustments
111
239
Comprehensive loss
$ (110,315)
$ (97,848)
Earnings per unit:
Basic earnings per unit from continuing operations
$ (47.24)
$ (48.61)
Basic earnings per unit from discontinued operations
(4.05)
(1.93)
Basic earnings per unit from net loss
$ (51.29)
$ (50.54)
Basic weighted average common units outstanding
2,184,696
2,005,824
BCP QUALTEK HOLDCO, LLC
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit information)
December 31,
2021
2020
Assets
Current assets
226,523
192,223
Property and equipment, net
50,682
33,794
Intangible assets, net
364,174
345,816
Goodwill
28,723
58,522
Other long-term assets
1,657
1,241
Non-current assets of discontinued operations
–
9,272
Total assets
$ 671,759
$ 640,868
Liabilities and (Deficit) / Equity
Current liabilities
$ 130,533
$ 139,231
Current portion of long-term debt and capital lease obligations
127,375
27,249
Current portion of contingent consideration
9,299
9,968
Capital lease obligations, net of current portion
19,851
15,959
Long-term debt, net of current portion and deferred financing fees
418,813
397,464
Contingent consideration, net of current portion
21,457
8,161
Distributions payable
11,409
11,409
Non-current liabilities of discontinued operations
–
1,793
Total (deficit) / equity
(66,978)
29,634
Total liabilities and equity
$ 671,759
$ 640,868
BCP QUALTEK HOLDCO, LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Years Ended December 31,
2021
2020
Net cash (used in) provided by operating activities
$ (17,942)
$ 13,457
Net cash used in investing activities
(43,532)
(3,963)
Net cash provided by (used in) financing activities
63,373
(9,712)
Effect of foreign currency exchange rate (translation) on cash
83
59
Net increase (decrease) in cash
1,982
(159)
Cash:
Beginning of year
169
328
End of year
$ 2,151
$ 169
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures
(in thousands)
For the Years Ended
December 31,
Revenue:
2021
2020
Telecom
$ 498,221
$ 587,614
Renewables and Recovery Logistics
114,020
68,910
Total consolidated revenue
$ 612,241
$ 656,524
For the Years Ended
December 31,
Adjusted EBITDA Reconciliation:
2021
2020
Telecom adjusted EBITDA
$ 32,542
$ 2,409
Renewables and Recovery Logistics adjusted EBITDA
44,869
28,943
Corporate adjusted EBITDA
(17,376)
(18,213)
Total adjusted EBITDA
$ 60,035
$ 13,139
Less:
Management fees
(889)
(518)
Transaction expenses
(3,826)
(988)
Loss on legal settlement
(2,600)
–
Change in fair value of contingent consideration
4,780
7,081
Impairment of goodwill
(52,487)
(28,802)
Depreciation and amortization
(53,675)
(46,475)
Interest expense
(50,477)
(37,659)
Loss on extinguishment of convertible notes
(2,436)
–
Loss from continuing operations
$ (101,575)
$ (94,222)
The following tables set forth the financial results for the three-month periods ended December 31, 2021 and 2020:
BCP QUALTEK HOLDCO, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per unit information)
(unaudited)
For the Three Months Ended December 31,
2021
2020
Revenue
$ 147,057
$ 132,444
Costs and expenses:
Cost of revenues
130,192
134,823
General and administrative
13,032
11,389
Transaction expenses
951
421
Loss on legal settlement
2,600
–
Change in fair value of contingent consideration
(236)
(7,081)
Impairment of goodwill
52,487
28,802
Depreciation and amortization
14,539
11,714
Total costs and expenses
213,565
180,068
Loss from operations
(66,508)
(47,624)
Other income (expense):
Gain on sale/ disposal of property and equipment
73
153
Interest expense
(14,699)
(8,835)
Total other expense
(14,626)
(8,682)
Loss from continuing operations
(81,134)
(56,306)
Loss from discontinued operations
(737)
(2,157)
Net loss
(81,871)
(58,463)
Other comprehensive income (loss):
Foreign currency translation adjustments
36
483
Comprehensive loss
$ (81,835)
$ (57,980)
Earnings per unit:
Basic earnings per unit from continuing operations
$ (36.49)
$ (28.46)
Basic earnings per unit from discontinued operations
(0.33)
(1.08)
Basic earnings per unit from net loss
$ (36.82)
$ (29.54)
Basic weighted average common units outstanding
2,223,554
2,005,824
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures
(in thousands)
(unaudited)
For the Three Months Ended
December 31,
Revenue:
2021
2020
Telecom
$ 138,201
$ 118,885
Renewables and Recovery Logistics
8,856
13,559
Total consolidated revenue
$ 147,057
$ 132,444
For the Three Months Ended
December 31,
Adjusted EBITDA Reconciliation:
2021
2020
Telecom adjusted EBITDA
$ 5,635
$ (13,619)
Renewables and Recovery Logistics adjusted EBITDA
2,688
4,716
Corporate adjusted EBITDA
(4,279)
(4,585)
Total adjusted EBITDA
$ 4,044
$ (13,488)
Less:
Management fees
(138)
(127)
Transaction expenses
(951)
(421)
Loss on legal settlement
(2,600)
–
Change in fair value of contingent consideration
236
7,081
Impairment of goodwill
(52,487)
(28,802)
Depreciation and amortization
(14,539)
(11,714)
Interest expense
(14,699)
(8,835)
Loss from continuing operations
$ (81,134)
$ (56,306)
Founded in 2012, QualTek is a leading technology-driven provider of infrastructure services to the 5G wireless, telecom, power grid modernization, and renewable energy sectors across North America. QualTek has a national footprint with more than 80 operation centers across the U.S. and a workforce of over 5,000 people. QualTek has established a nationwide operating network to enable quick responses to customer demands as well as proprietary technology infrastructure for advanced reporting and invoicing. The Company will report within two operating segments: Telecommunications and Renewables and Recovery. For more information, please visit qualtekservices.com.
This communication contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, earnings outlook and prospects of QualTek. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of the management of QualTek and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by QualTek.
Should one or more of the risks or uncertainties materialize or should any of the assumptions made by the management of QualTek prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
All pro forma numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
All subsequent written and oral forward-looking statements concerning the matters addressed in this communication and attributable to QualTek or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this communication. Except to the extent required by applicable law or regulation, QualTek undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this communication to reflect the occurrence of unanticipated events.
Media Contact:
QualTek IR/Communications
Gianna Lucchesi
PR@qualtekservices.com
(484) 804 – 4585
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SOURCE QualTek Services Inc.
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Procare Solutions Celebrates 2024 Milestones with Key Achievements in Growth and Innovation
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DENVER, Dec. 30, 2024 /PRNewswire/ — Procare Solutions, a leader in child care management software, achieved several noteworthy milestones in our mission to help ensure the care, safety and education of children. These include many new product enhancements, partnerships and the addition of professional development training.
This year’s highlights include:
Updates to our digital curriculum that include earning approvals in several states ensuring compliance and ease of use for early childhood educators nationwideMobile app enhancements including new photo reactions and improved messaging to enhance staff communication, as well as new advanced registration features with custom forms and lead management to streamline administrative tasksIntegrations with our partners to help child care centers grow enrollment and improve their educational offerings, ensuring better outcomes for children and familiesThe acquisition of Bertelsen Education expanding Procare to include continuing education training for early childhood education and Head Start child care providers
“Our belief that every child deserves the best possible start is at the heart of everything we do,” said Procare Solutions CEO JoAnn Kintzel. “Each of these developments reflects our commitment to delivering robust, user-friendly solutions that support child care providers in achieving their goals.”
Supporting Early Childhood Education (ECE) Curriculum
Helping centers improve the education of young learners has always been, and continues to be, a top priority of Procare Solutions.
Our 2024 Child Care Management Software Industry Trends Report found that about 30% of survey respondents said each teacher spends between three and five hours a week doing lesson planning and a similar percentage noted their centers create their own curriculum.
Procare Early Learning powered by Learning Beyond Paper, an all-digital curriculum designed for ECE that is embedded into Procare, was updated and gained approval in several states. Aligning with state-approved ECE curriculum is essential for securing grant funding and providing high-quality education.
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Making ECE Professional Development Simpler
The Procare Solutions 2024 trends report also found that nearly one-third of respondents need more professional development for teachers and staff.
Through the acquisition of Bertelsen Education, a leader in professional development training, ECE providers using Procare gained access to professional development and continuing education courses.
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Improving Learning in Child Care Classrooms While Helping Grow Enrollment
ECE teachers in child care centers using Procare also can benefit from educational videos from MarcoPolo Learning, the award-winning global developer of educational products and instructional resources. In 2024, MarcoPolo Learning’s comprehensive library of developmentally appropriate short videos, educator guides and activities became available in Procare, making it easier for educators to incorporate the resources into their lesson plans.
And a new partnership with Lakeshore Learning, a leading developer and retailer of educational materials, supports child care providers by offering them access to high-quality educational materials at discounted rates.
Procare customers have access to a dedicated Lakeshore Learning eStore with hundreds of curated educational materials and resources specifically tailored for early childhood programs with a discount and free shipping.
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Messaging features for child care center staff got a boost – staff can send and receive messages via Procare or text messages. The option to send text alerts allows administrators to communicate with staff members without a Procare account. These messages are sent as a text message to a staff member’s mobile device.
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About Procare Solutions:
For over 30 years, Procare Solutions has been dedicated to empowering early childhood educators by providing products and services that enable them to focus on the care, safety and education of children.
We recognize the responsibility that comes with nurturing and educating children, which is why our child care management solutions are designed to automate business processes, help ensure safety and compliance, communicate with families and provide educational resources and training to help teachers and children thrive.
Over 40,000 satisfied customers have chosen Procare Solutions as their trusted partner in providing exceptional care for young minds.
For more information, visit ProcareSolutions.com
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SOURCE Procare Solutions
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IBN Technologies Steps Up to Support Small Businesses Following Bench Accounting’s Sudden Shutdown
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MIAMI, Dec. 30, 2024 /PRNewswire/ — The unexpected closure of Bench Accounting has left thousands of small businesses scrambling to find reliable financial and accounting outsourcing services. This sudden disruption has created a significant gap, leaving many businesses without the external support they once relied on. Announced under the leadership of Bench’s CEO, the closure has forced countless organizations to seek dependable alternatives to manage their financial operations effectively.
In response to this void, IBN Technologies LLC, a global leader in finance and accounting outsourcing, is stepping up to provide tools, expertise, and support small businesses need. With their proven track record and tailored solutions, IBN Technologies ensures that businesses can maintain financial stability and focus on growth during this challenging time.
IBN technologies are a Bench Accounting Alternative
With over 25 years of experience delivering cutting-edge finance and accounting solutions, IBN Technologies is uniquely positioned to provide comprehensive support for businesses impacted by this industry disruption. The company’s scalable and technology-driven services are designed to empower small businesses, enabling them to overcome challenges and achieve long-term stability.
“At IBN Technologies, we empathize with the concerns of small businesses following the recent closure of Bench Accounting,” stated Ajay Mehta, CEO of IBN Technologies. “Our utmost priority is to stand beside these businesses as a reliable partner, offering them the necessary financial expertise to overcome their challenges and forge ahead with confidence.”
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IBN Technologies offers a comprehensive suite of finance and accounting services customized to meet the unique needs of small businesses, including:
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Rebuilding confidence in financial management begins with IBN Technologies. They provide expertise and tools that are needed to streamline business processes, ensure accuracy, and take full control of your finances. Trust IBN Technologies customized solutions to bring stability and drive growth for your business.
“Our mission is to simplify financial management for small businesses while delivering unmatched value,” added by Ajay Mehta. “During this challenging time of Bench Accounting crunch base, we want to extend our unwavering support to all affected businesses. At IBN Technologies, we are committed to being your guiding light throughout this journey, providing the assistance you need at every step.”
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Coro Medical Prepares to Roll Out Project AED365 Nationwide Donation Initiative
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Project AED365 Aims to Empower Communities, Youth Organizations, First Responders, and more by Providing Lifesaving Automated External Defibrillators (AEDs) Alongside Comprehensive Emergency Training and Equipment to Address Sudden Cardiac Arrest
FRANKLIN, Tenn., Dec. 30, 2024 /PRNewswire/ — Coro Medical, the leading provider of life-saving medical devices, today announced it is preparing to roll out Project AED365—a nationwide effort to donate 365 automated external defibrillators (AEDs) over the next year.
“At Coro Medical, we believe every second counts in a cardiac emergency. Project AED365 reflects our commitment to making life-saving technology accessible to communities across the nation,” said Travis Harris, CEO, Coro Medical. “By partnering with industry leaders and local organizations, we aim to ensure that no community is left unprepared when it matters most.”
Project AED365 is a national initiative dedicated to enhancing public safety, with Coro Medical committing to donate one AED each day for the next 365 days to selected organizations, communities, and individuals. Coro Medical is partnering with ZOLL Medical to provide ZOLL AED 3s for Project AED365. This collaboration ensures the availability of high-quality defibrillators to support the initiative’s mission of equipping communities with life-saving devices.
“ZOLL is proud to participate in the life-saving Project AED365, to help make our AEDs accessible to more youth programs and communities in need. During an emergency, ZOLL AEDs are designed so anyone can follow the step-by-step instructions to administer high-quality CPR and deliver a shock to a victim, with real-time feedback that helps deliver the best outcome. Getting more AEDs in more public places where emergencies could happen and increasing the public’s understanding that these devices are designed to help them, help others in an emergency, is critical to protecting the heartbeat of our communities. Providing the resources, education and equipping more of our communities with AEDs, empowering unexpected, ordinary people with the confidence to act is a life-saving legacy that we are humbled and proud to be a part of.” Said Troy Pflugner, Group Vice President, ZOLL Medical.
In addition, Coro Medical is collaborating with HSI to donate one free Remote Skill Verification (RSV) training with every AED. RSV is a revolutionary new way to get full certification training in CPR, AED, and First Aid from a live, authorized HSI Instructor. Furthermore, LifeVac, the creators of the innovative, non-powered, non-invasive airway clearance device, will also be donating one airway clearance device with every donated AED. This initiative ensures recipients have access to life-saving devices and emergency medical training.
“The HSI team is excited to collaborate with CoroMed and ZOLL Medical on Project AED365. It’s well known that effective bystander CPR and defibrillation with an AED immediately after sudden cardiac arrest can more than double a victim’s chance of survival, said Anthony Corwin, HSI General Manager, Emergency Care. “This is one of the reasons HSI is donating Remote Skills Verification (RSV) training with every donated AED. RSV is fully remote CPR, AED, and First Aid certification training with a live, authorized HSI Instructor. At HSI, we believe having AEDs and quality training should be part of every organization’s emergency plan.”
“LifeVac is honored to partner with Coro Medical to make donations to the community that can save a life. It’s organizations such as these that change the world,” Arthur Lih, CEO & Inventor, LifeVac.
According to the Sudden Cardiac Arrest Foundation, sudden cardiac arrest is a leading cause of death among adults over the age of 40 in the United States, and studies have shown that survival rates can be as high as 70% if an AED is used within 2 minutes of collapse, highlighting the urgent need for accessible AEDs in public spaces.
Communities, organizations, and individuals are encouraged to visit Project AED365 to submit AED donation requests. This initiative underscores Coro Medical’s commitment to advancing public safety and equipping communities with essential tools and knowledge to save lives, solidifying their role as a trusted leader in health and safety.
For more information about Project AED365 or to apply for an AED donation, please visit https://www.aed.us/project-aed365.
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Price analysis 12/25: BTC, ETH, XRP, SOL, BNB, DOGE, ADA, AVAX, LINK, TON