Technology

QualTek Announces Fourth Quarter and Annual 2021 Financial Results

Published

3 years ago

March 31, 2022

– 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.

For the Fourth Quarter:

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.

For the Full Year:

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

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

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

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

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)

About QualTek

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.

Forward Looking Statements

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.

Technology

JSAUX joins Black Friday with big deals on their website and Amazon Store

Published

47 minutes ago

November 21, 2024

Visitors can enjoy discounts of up to 60% and Limited Flash Sales from November 21st to December 5th

HONG KONG, Nov. 21, 2024 /PRNewswire/ — After a whole month of deals, the discounts are only getting higher with Black Friday approaching. From November 21st to December 2nd, the JSAUX Amazon Store will offer big discounts ranging from 20% to 30% on their best-selling items. Meanwhile, the Black Friday event on their official website has already entered its second phase, featuring Flash Sales featuring ROG Ally products until November 25th.

During the Flash Sales, participating products will enjoy substantial discounts, along with other regular offers. Additionally, closer to the end of the month, JSAUX will host a Black Friday Mega Sale on their website from November 25th to December 5th, offering even more deals across a wide range of items.

Along with their sales, JSAUX is proud to announce the release of the white version of the 6-in-1 Multifunctional Docking Station (HB0609). This Docking Station is compatible with ROG Ally X, ROG Ally, Steam Deck, and Legion Go. However, it’s designed to fit with the new white Steam Deck OLED seamlessly. It supports speed charging and the following connectivity options:

4K@120Hz HDMI outputGigabit LAN EthernetUSB-C PD chargingUSB-C 3.2 Gen 1dual USB-A 3.2 Gen 1 ports

Another product that will be available soon is the RGB transparent back plate for the ROG Ally X (PC0112), adding 8 RGBs on each side of the ROG Ally X and offering three lighting modes.

The RGB backplate is designed to improve ventilation with an integrated aluminum cooling module and comes with a black silicone sleeve for better handling.

Here’s a detailed breakdown of JSAUX’s Black Friday sales:

JSAUX Amazon Store (November 21 – December 2) will offer discounts of up to 30% on products for digital nomads and gamers alike. Featuring the FlipGo Lite 15.6 with 20% off, the biggest discount to date; and accessories for handhelds.JSAUX Official website Flash Sales (November 21 – 25) will offer special flash sales on ROG Ally accessories with up to 60% discount.JSAUX Official website Black Friday Mega Sale (November 25th – December 5th) will offer customers who purchase a 13.5″ or 16″ FlipGo will receive a portable screen storage bag. Additionally, all orders will earn double points.

And here are some of the most significant discounts during JSAUX’s Black Friday sale:

Transparent Back Plate for ROG Ally (60% off) – $15.99Transparent Back Plate for ROG Ally — Heat Sink Plate (57% off) – $2.99Silicone Grip Case Set for ROG Ally (50% off) – $7.993-in-1 45W Charger Dock (35% off) – $29.99Battery Pack for Oculus Quest 3 2 (30% off) – $25.89Docking Station USB-C 6-in-1(25% off) – $29.99FlipGo Lite 15.6″ (20% off) – $239.99Steam Deck ModCase (20% off) – $23.99RGB Docking Station 12-in-1 (20% off) $68.79

ASSETS

All visual assets for JSAUX’s products can be found at this link.

CONTACT

For further information requests, feel free to contact us at melody@jsaux.com. Also, you can reach out to a brand representative and follow the new product updates on social media!

Twitter Facebook Instagram

ABOUT JSAUX

JSAUX, a pioneer brand in innovation and quality, boasts products that are best-sellers across over 100 countries and regions worldwide, serving more than 20 million consumers. Since 2016, multiple JSAUX product lines sold on Amazon have been designated as “#1 Best Sellers”, ranking first in several categories. This success has solidified JSAUX’s foothold in the electronics accessories market and has further established the brand as one of the top 100 Chinese brands on Amazon.

In 2022, JSAUX swiftly rose to become one of the most popular brands in gaming accessories, firmly establishing itself as the premier brand for Steam Deck accessories. The brand’s strong product innovation, superior quality, robust supply chain, and consumer-centric brand strategy have enabled it to continuously design and produce outstanding products over the past seven years. This accomplishment is the result of seamless coordination within our internal teams, spanning from research and development to product manufacturing and global marketing.

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SOURCE JSAUX

Technology

Healthy Together Partners with The Florida Department of Agriculture and Consumer Services to Modernize and Expand Access to Fresh Produce

Published

47 minutes ago

November 21, 2024

MIAMI, Nov. 21, 2024 /PRNewswire/ — Healthy Together is proud to announce its partnership with the Florida Department of Agriculture and Consumer Services to enhance the WIC Farmers Market Nutrition Program (FMNP) through an innovative digital solution. The solution is designed to improve access to fresh, locally grown produce for low-income Florida families participating in WIC. This initiative addresses the unique challenges posed by Florida’s diverse farmers market landscape, ensuring an efficient experience for all participants.

Florida’s farmers markets vary in size, location, and technological capabilities. While urban markets are more equipped to adapt to electronic payment systems, rural markets often face obstacles such as limited internet access and technological infrastructure. Healthy Together’s FMNP solution is designed with market diversity in mind, offering a flexible platform that can be customized to meet the needs of all Florida markets.

The transition from a paper-based coupon system to Healthy Together’s digital platform marks a major advancement in Florida. By adopting digital payment methods, farmers can efficiently process transactions using in-app QR codes, leading to faster and more secure exchanges. This change modernizes the purchasing experience for participants and improves operational efficiency, allowing them to utilize benefits more effectively and access fresh produce with greater convenience.

“We’ve developed an e-solution that accommodates the full spectrum of Florida’s farmers markets needs.” said Jared Allgood, CEO of Healthy Together. “By providing a seamless user interface, we can ensure that all staff, farmers and shoppers can more easily engage and participate in the program.”

Key Objectives for Florida’s Healthy Together FMNP Solution

Transition to a Single Electronic Solution: Streamline Florida’s Farmers Market Nutrition Program by consolidating various systems into one comprehensive electronic platform.Accommodate Diverse Markets: Ensure the solution can be adapted to Florida’s varied farmers markets, from urban to rural settings.User-Friendly Experience: Provide an intuitive interface that makes the transition to an electronic solution simple and accessible for all Florida participants.Hybrid Solution: Offer flexible options for users to access their benefits via a mobile app or a card with QR code functionality.Simplify Administrative Work: Reduce the administrative burden for staff by minimizing manual tasks.Flexible Purchasing Options: Allow participants to purchase produce based on actual amounts instead of fixed increments, enhancing their buying experience.Integrated Communication Services: Enhance communication through integrated features that support alerts, confirmations, and reminders.Efficient Reporting Capabilities: Provide better reporting and insights into program performance and effectiveness.

Healthy Together also deployed its digital FMNP solution with the Maryland Department of Agriculture, supporting farmers and low-income shoppers across the state. This collaboration expands a growing portfolio and illustrates Healthy Together’s commitment to making fresh produce more accessible in diverse communities across the nation.

By embracing innovative technology and addressing the specific challenges of Florida’s farmers markets, Healthy Together and the Florida Department of Agriculture and Consumer Services are committed to fostering healthier communities and supporting local agriculture.

For more information about Healthy Together’s FMNP solution, please visit www.healthytogether.co.

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SOURCE Healthy Together

Technology

Sorenson Forum Named to Fast Company’s 2024 Next Big Things in Tech

Published

47 minutes ago

November 21, 2024

Sorenson has been recognized alongside brands such as Adobe, Amazon, Disney, Samsung, and others for groundbreaking technology that profoundly impacts consumers, industries, and society

SALT LAKE CITY, Nov. 21, 2024 /PRNewswire/ — Sorenson, a global leader in communication solutions, is honored to announce that its groundbreaking AI-powered language solution for events, Sorenson Forum, was named to Fast Company’s 2024 Next Big Things in Tech in the Enterprise award category for “hardware, software, and services that change how business gets done.”

This year, a panel of judges evaluated over 1,300 applications to select the top 138 honorees.

Sorenson Forum is revolutionizing real-time communication by providing remote simultaneous interpreting and captioning across 25 languages and 45 dialects. This innovative solution empowers organizations to create fully inclusive, accessible events that bridge language barriers and connect diverse language audiences in real-time.

“We are honored to be recognized by Fast Company for our work to develop cutting-edge language solutions,” said Paget Alves, CEO of Sorenson, which connects more than 140 million conversations across all business lines each year. “Sorenson Forum is a testament to our commitment to innovation and our dedication to creating a more inclusive world.”

Sorenson Forum is designed to be user-friendly and accessible. Participants can easily join a session and select their preferred language, and the platform will automatically produce interpreted audio, captions, and transcripts in real-time. Whether it’s a global conference, a multinational team meeting, or a classroom setting, Sorenson Forum ensures that everyone can participate and understand.

“Sorenson Forum represents a significant leap forward in making real-time communication accessible to a global audience,” explained Ryan Sullivan, Chief Product Officer of Sorenson. “This innovative tool, with its intuitive design, user-friendly interface, and powerful AI model, paves the way for a more inclusive and connected world.”

Sullivan believes that accessibility goes beyond technical prowess – it’s about user experience. Unlike other multilingual tools, Sorenson Forum offers a more seamless experience for meeting hosts. Participation is effortless, with users simply joining a session using a PIN or QR code displayed by the host. And unlike other multilingual CART or interpretation tools, Sorenson Forum eliminates cost and complexity for both organizers and participants. Organizers simply share a link to a virtual meeting room, accessible on any browser, iOS, or Android device.

“In today’s globalized environment, communication transcends language barriers, empowering individuals to participate, learn, and thrive,” Sullivan said. “Sorenson is proud to be at the forefront of this technology.”

Sorenson Forum will be officially unveiled at the Language Lounge, a media-only event on Jan. 7, during CES 2025 in Las Vegas. This immersive experience will showcase the power of Sorenson’s language solutions and provide tech media with a firsthand look at the future of communication. The Language Lounge is a by-invitation-only event offering a rare, hands-on experience that will include:

Real-time demos: See Sorenson’s newest translation tools in action.Exclusive access: Meet Sorenson CPO Ryan Sullivan and uncover exclusive insights behind our innovations.Intrigue and connection: Enjoy cocktails, conversation, and the latest in tech to break language barriers.

Please note that space is limited, so be sure to register early for your invitation to the Language Lounge: Learn More.

View this announcement in Spanish or ASL.

About Sorenson

Sorenson is one of the world’s leading language services providers, combining patented technology with human-centric solutions. We strive to increase diversity, equity, inclusion, and accessibility for underrepresented people through communication solutions for all. We provide call captioning and video relay services, video remote and in-person sign language and spoken language interpreting, translation, real-time captioning, and post-production language services. Our company impact extends beyond the 140 million conversations we facilitate annually— Sorenson fosters inclusive workplaces and job creation through communication accessibility and saves lives through interpreted emergency and health services. Sorenson is a portfolio company of Ariel Alternatives LLC’s Project Black Fund®, which aims to scale sustainable minority-owned businesses to serve as leading vendors to Fortune 500 companies, and we strive to manage and minimize our environmental impact. To learn more about our responsible business practices and efforts to advance human connection, visit sorenson.com or es.sorenson.com.

Sorenson Press Contact
Denisse Tamez
Director of Public Relations
Sorenson – (801) 287-9400
dtamez@sorenson.com

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SOURCE Sorenson