ATLANTA, March 29,
2022 /PRNewswire/ -- KORE Group Holdings,
Inc. (NYSE: KORE, KORE WS) ("KORE" or the "Company"), a
global leader in Internet of Things (IoT) solutions and worldwide
IoT Connectivity-as-a-Service ("CaaS"), today reported financial
and operational results for the fourth quarter and full year ended
December 31, 2021.
"We have never been more excited about our
position as the only pure-play IoT company in the public markets,"
said Bahl.
"KORE had a great year in 2021," said Romil Bahl, President & CEO of KORE. "In our
20th year of existence, we not only delivered our
highest full-year revenue in the company's history, we also
executed well and achieved several key milestones, including the
maturing of our KORE One platform and related IP, the launch of our
leading global eSIM product suite named KORE OmniSIM, and our
public listing on the NYSE. We have showcased that we can take in
stride near-term headwinds related to the 2G and 3G sunsets in the
U.S., which is our largest market by far. As we move past these
sunsets, and with the Decade of IoT off and running, we have never
been more excited about our position as the only pure-play IoT
company in the public markets."
KORE: Company Highlights
- 2021 revenue of $248 million
exceeded previously increased guidance of at least $240 million, and exceeded the $219 million forecast in the Company's go-public
financial model.
- The Company expects 2022 revenue to be in the range of
$260 million to $265 million, compared to the Company's go-public
financial model forecast of $238
million.
- The 2022 revenue outlook increases the Company's 2021-2022
two-year revenue stack to a range of $508
million to $513 million, or
11% to 12% higher than its go-public forecast of $457 million.
- KORE continued its eSIM leadership by launching
OmniSIMTM Reach and OmniSIM Rush, delivering eUICC-based
IoT connectivity through approximately 600+ carriers in 198
countries.
- The Company launched KORE Developer PortalTM to
provide enterprises with the "IoT Building Blocks" needed to create
IoT solutions in a self-service environment.
Financial Performance for Fourth
Quarter 2021, compared to the same period of 2020:
- Total revenue increased 11.8% to $64.3
million, compared to $57.5
million.
- IoT Connectivity revenue decreased 0.9% to $43.2 million, compared to $43.6 million.
- IoT Solutions revenue increased 51.8% to $21.1 million, compared to $13.9 million.
- Connected Health revenue increased 44.1% to $25.8 million, compared to $17.9 million.
- Net loss decreased to $12.0
million, compared to $15.7
million.
- Adjusted EBITDA, a non-GAAP metric*, was $12.9 million, compared to $13.3 million.
Financial Performance for Fiscal Year
ending December 31, 2021, compared to
the same period of 2020:
- Total revenue increased 16.1% to $248.2
million, compared to $213.8
million.
- IoT Connectivity revenue increased 6.4% to $168.8 million, compared to $158.7 million.
- IoT Solutions revenue increased 44.4% to $79.4 million, compared to $55.0 million.
- Connected Health revenue increased 36.5% to $100.2 million, compared to $73.4 million.
- Net loss decreased to $24.5
million, compared to $35.2
million.
- Adjusted EBITDA, a non-GAAP metric*, was $59.9 million, compared to $57.8 million.
The table below summarizes our
revenue and certain key metrics:
(amounts in thousands USD, except for connections
counts)
|
|
Three Months
Ended
|
|
|
Full Year
Ended
|
|
|
|
December
31
|
|
|
December
31
|
|
Revenue
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
IoT
Connectivity
|
$
|
43,214
|
67.2
|
%
|
$
|
43,568
|
75.8
|
%
|
$
|
168,804
|
68.0
|
%
|
$
|
158,748
|
74.3
|
%
|
IoT
Solutions
|
|
21,084
|
32.8
|
|
|
13,895
|
24.2
|
|
|
79,413
|
32.0
|
|
|
55,012
|
25.7
|
|
Total
revenue
|
$
|
64,298
|
100.0
|
%
|
$
|
57,463
|
100.0
|
%
|
$
|
248,217
|
100.0
|
%
|
$
|
213,760
|
100.0
|
%
|
Period End Total
Connections***
|
|
14.6 million
|
|
|
11.8 million
|
|
|
14.6 million
|
|
|
11.8 million
|
|
Average Total
Connections***
for the Period
|
|
14.2 million
|
|
|
11.7 million
|
|
|
13.4 million
|
|
|
10.7 million
|
|
Fourth Quarter and Full Year 2021 Key
Metrics and Business Successes
- KORE grew subscriptions to approximately 14.6 million Total
Connections***, a year-over-year increase of 23.7%, despite supply
chain headwinds and network technology transitions.
- KORE generated full year revenue of $248.2 million, KORE's highest ever. The Company
reported full year 2021 Adjusted EBITDA, a non-GAAP metric*, of
$59.9 million and net loss of
$24.5 million.
- KORE's Dollar-Based Net Expansion Rate (DBNER***), which
measures the combined effect of cross-sales of IoT Solutions to
KORE's existing customers, customer retention and the growth of our
existing business, was 122% for the twelve months ended
December 31, 2021, compared to 106%
for the twelve months ended December 31,
2020.
- The Company continued momentum in eSIM leadership and launched
OmniSIM Reach and OmniSIM Rush – delivering IoT connectivity with
remote SIM provisioning to 600+ carriers in 198 countries and
shipped approximately 1 million eSIMs in 2021.
- KORE saw solid growth in the newer IoT Solutions line of
business, resulting in 32% of overall revenue in full year 2021,
compared to 26% in 2020.
- The company is accelerating investments in pre-configured
solutions for high-growth use cases in the Connected Health and
Fleet industries, and in cross-industry, high-bandwidth IoT
connectivity solutions.
- KORE announced the expansion of its IoT Managed Services
capacity in Rochester, N.Y., with
investment in a new operational facility designed for increased
high-touch volume production, and has more recently added a
low-touch IoT services center in Westbury, N.Y.
- KORE was selected by Frost & Sullivan as the winner of the
Best Practices Competitive Strategy Leadership Award in the IoT
Managed Services category.
- KORE collaborated with PAWS and Cesar
Milan to launch breakthrough pet technology. At Mobile World
Congress Americas, PAWS and KORE announced the launch of the Halo
Collar, which replaces the need for traditional and electric
fences, while providing smart training and activity monitoring for
dogs.
- The Company launched KORE Developer Portal to provide
enterprises with 'IoT Building Blocks' needed to integrate
development resources and tools quickly and efficiently in a
self-service environment.
2022 Financial Outlook
For the twelve months ending December 31,
2022, the Company expects:
- Revenue of $260 million to
$265 million, up from the go-public
financial model forecast of $238
million.
- Adjusted EBITDA, a non-GAAP metric*, of $63 million to $64
million, representing a margin of approximately 24%.
"Following an impressive year, we are reiterating our confidence
in organically meeting our original revenue forecast for 2022,"
Bahl continued. "More importantly, I am confident we can deliver
value through our exciting and expanding IoT portfolio of
Connectivity, Solutions, and Analytics in an ever-increasingly
connected world. We expect the IoT market's momentum will continue
well into the 2030s, fueled by the deployment of 5G infrastructure
all over the world and several other market tailwinds."
*See "Non-GAAP Financial Measures" and "Reconciliation of Net
Loss to EBITDA to Adjusted EBITDA" below for more
information.
***See "Key Metrics" below for
definitions.
Conference Call Details
KORE management will hold a conference call today (March 29, 2022) at 5:00
p.m. Eastern time (2:00 p.m. Pacific
time) to discuss its financial results, business highlights
and outlook.
President and CEO Romil Bahl and
CFO Paul Holtz will host the call,
followed by a question-and-answer session.
Webcast: Link
U.S. dial-in: (877) 407-3039
International dial-in: (215) 268-9922
Conference ID: 13726477
The conference call and a supplemental slide presentation to
accompany management's prepared remarks will be available via the
webcast link and for download via the investor relations section of
the Company's website at ir.korewireless.com.
For the conference call, please dial-in 5-10 minutes prior to
the start time and an operator will register your name and
organization, or you can register here. If you have any difficulty
with the conference call, please contact Gateway at (949)
574-3860.
About KORE
KORE is a pioneer, leader, and trusted advisor delivering
mission critical IoT solutions and services. We empower
organizations of all sizes to improve operational and business
results by simplifying the complexity of IoT. Our deep IoT
knowledge and experience, global reach, purpose-built solutions,
and deployment agility accelerate and materially impact our
customers' business outcomes. For more information, visit
www.korewireless.com.
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP,
we believe the following non-GAAP measures are useful in evaluating
our operational performance. We use the following non-GAAP
financial information to evaluate our ongoing operations and for
internal planning and forecasting purposes. We believe that
non-GAAP financial information, when taken collectively, may be
helpful to investors in assessing our operating performance.
EBITDA and Adjusted EBITDA
"EBITDA" is defined as net income (loss) before other
non-operating expense or income, income tax expense or benefit, and
depreciation and amortization. "Adjusted EBITDA" is defined as
EBITDA adjusted for unusual and other significant items that
management views as distorting the operating results from period to
period. Such adjustments may include stock-based compensation,
integration and acquisition-related charges, tangible and
intangible asset impairment charges, certain contingent liability
reversals, transformation, and foreign currency transaction gains
and losses. EBITDA and Adjusted EBITDA are intended as supplemental
measures of our performance that are neither required by, nor
presented in accordance with, GAAP. We believe that the use of
EBITDA and Adjusted EBITDA provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing the Company's financial measures with those of
comparable companies, which may present similar non-GAAP financial
measures to investors. However, you should be aware that when
evaluating EBITDA and Adjusted EBITDA we may incur future expenses
similar to those excluded when calculating these measures. In
addition, our presentation of these measures should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items. Our computation of
Adjusted EBITDA may not be comparable to other similarly titled
measures computed by other companies, because all companies may not
calculate Adjusted EBITDA in the same fashion.
Because of these limitations, EBITDA and Adjusted EBITDA should
not be considered in isolation or as a substitute for performance
measures calculated in accordance with GAAP. We compensate for
these limitations by relying primarily on our GAAP results and
using EBITDA and Adjusted EBITDA on a supplemental basis. You
should review the reconciliation of net loss to EBITDA and Adjusted
EBITDA below and not rely on any single financial measure to
evaluate our business.
We have not provided the forward-looking GAAP equivalents for
the forward-looking non-GAAP financial measure Adjusted EBITDA or a
GAAP reconciliation as a result of the uncertainty regarding, and
the potential variability of, reconciling items including but not
limited to stock-based compensation expense, foreign currency loss
or gain and acquisition and integration-related expenses.
Accordingly, a reconciliation of this non-GAAP guidance metric to
its corresponding GAAP equivalents is not available without
unreasonable effort. However, it is important to note that material
changes to reconciling items could have a significant effect on
future GAAP results and, as such, we also believe that any
reconciliations provided would imply a degree of precision that
could be confusing or misleading to investors.
Key Metrics
KORE reviews a number of metrics to measure our performance,
identify trends affecting our business, prepare financial
projections, and make strategic decisions. The calculation of the
key metrics and other measures discussed below may differ from
other similarly titled metrics used by other companies, securities
analysts, or investors.
Number of Customer Connections
Total Customer Connections or "Total Connections" constitutes
the total of all KORE Connectivity services connections, including
both CaaS and CEaaS connections, but excluding certain connections
where mobile carriers license KORE's subscription management
platform from KORE. Total Connections include the contribution of
eSIMs and is the principal measure used by management to assess the
performance of the business on a periodic basis.
DBNER
DBNER (Dollar Based Net Expansion Rate) tracks the combined
effect of cross-sales of IoT Solutions to KORE's existing
customers, its customer retention and the growth of its existing
business. KORE calculates DBNER by dividing the revenue for a given
period ("given period") from existing go-forward customers by the
revenue from the same customers for the same period measured one
year prior ("base period"). The revenue included in the current
period excludes revenue from (i) customers that are non go-forward
customers, meaning customers that have either communicated to KORE
before the last day of the current period their intention not to
provide future business to KORE or customers that KORE has
determined are transitioning away from KORE based on a sustained
multi-year time period of declines in revenue and (ii) new
customers that started generating revenue after the end of the base
period. For example, to calculate our DBNER for the trailing 12
months ended December 31, 2021, we
divide (i) revenue, for the trailing 12 months ended December 31, 2021, from go-forward customers that
started generating revenue on or before December 31, 2020, by (ii) revenue, for the
trailing 12 months ended December 31,
2020, from the same cohort of customers. For the purposes of
calculating DBNER, if KORE acquires a company during the given
period or the base period, then the revenue of a customer before
the acquisition but during either the given period or the base
period is included in the calculation. Further, it is often
difficult to ascertain which customers should be deemed not to be
go-forward customers for purposes of calculating DBNER. Customers
are not required to give notice of their intention to transition
off of the KORE platform, and a customer's exit from the KORE
platform can take months or longer, and total connections of any
particular customer can at any time increase or decrease for any
number of reasons, including pricing, customer satisfaction or
product fit – accordingly, a decrease in total connections may not
indicate that a customer is intending to exit the KORE platform,
particularly if that decrease is not sustained over a period of
several quarters. DBNER would be lower if it were calculated using
revenue from non go-forward customers.
As of December 31, 2021, and
December 31, 2020, DBNER excludes
connections from non go-forward customers, the vast majority of
which are connections from Non-Core Customers. KORE defines
"Non-Core Customers" to be customers that management has judged to
be lost as a result of the integration of Raco Wireless, Wyless and
other acquisitions completed during in the 2014-2017 period, but
which continue to have some connections (and account for some
revenue) each year with KORE. Non-Core Customers are a subset of
non go-forward customers.
DBNER is used by management as a measure of growth at KORE's
existing customers (i.e., "same store" growth). It is not intended
to capture the effect of either new customer wins or the declines
from non go-forward customers on KORE's total revenue growth. This
is because DBNER excludes new customers which started generating
revenue after the base period, and also excludes any customers
which are non go-forward customers on the last day of the current
period. Revenue increases from new customer wins, and a decline in
revenue from non go-forward customers are also important factors in
assessing KORE's revenue growth, but these factors are independent
of DBNER.
Cautionary Note on Forward-Looking
Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "should," "would," "plan," "predict," "potential,"
"seem," "seek," "future," "outlook," and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding estimates and
forecasts of revenue and other financial and performance metrics,
future capital availability, product and service availability,
projections regarding recent customer engagements, projections of
market opportunity and conditions and related expectations. These
statements are based on various assumptions and on the current
expectations of KORE's management. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as and must not be relied on by any investor or other person
as, a guarantee, an assurance, a prediction or a definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and will differ from
assumptions. Many actual events and circumstances are beyond the
control of KORE. These forward-looking statements are subject to a
number of risks and uncertainties, including general economic,
financial, legal, political and business conditions and changes in
domestic and foreign markets; the potential effects of COVID-19;
risks related to the rollout of KORE's business and the timing of
expected business milestones; risks relating to the integration of
KORE's acquired companies, including Business Mobility Partners Inc
and SIMON IoT LLC, changes in the assumptions underlying KORE's
expectations regarding its future business; the effects of
competition on KORE's future business; and the outcome of judicial
proceedings to which KORE is, or may become a party. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. There may be additional risks that KORE presently does
not know or that KORE currently believes are immaterial that could
also cause actual results to differ materially from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect KORE's expectations, plans or forecasts of
future events and views as of the date of this press release. KORE
anticipate that subsequent events and developments will cause these
assessments to change. However, while KORE may elect to update
these forward-looking statements at some point in the future, KORE
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing KORE's assessments as of any date subsequent to the
date of this press release. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
KORE Group
Holdings, Inc. and Subsidiaries
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands USD,
except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Full Year
Ended
|
|
|
|
December
31, 2021
|
|
December 31,
2020
|
|
December 31,
2021
|
|
December 31,
2020
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Services
|
$
|
48,096
|
$
|
45,732
|
$
|
187,962
|
$
|
172,845
|
|
Products
|
|
16,202
|
|
11,731
|
|
60,255
|
|
40,915
|
|
Total revenue
|
|
64,298
|
|
57,463
|
|
248,217
|
|
213,760
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
18,450
|
|
16,926
|
|
69,867
|
|
64,520
|
|
Cost of
products
|
|
15,099
|
|
10,489
|
|
52,357
|
|
33,410
|
|
Total cost of revenue
(exclusive of depreciation
and amortization shown
separately below)
|
|
33,549
|
|
27,415
|
|
122,224
|
|
97,930
|
|
Gross
profit
|
|
30,749
|
|
30,048
|
|
125,993
|
|
115,830
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
25,208
|
|
22,976
|
|
91,733
|
|
72,883
|
|
Depreciation and
amortization
|
|
12,467
|
|
13,604
|
|
50,414
|
|
52,488
|
|
Total operating
expenses
|
|
37,675
|
|
36,580
|
|
142,147
|
|
125,371
|
|
Operating
loss
|
|
(6,926)
|
|
(6,532)
|
|
(16,154)
|
|
(9,541)
|
|
Interest expense,
including
amortization of deferred
financing costs, net
|
|
7,105
|
|
5,134
|
|
23,260
|
|
23,493
|
|
Change in fair value
of
warrant liability
|
|
14
|
|
4,003
|
|
(5,267)
|
|
7,485
|
|
Loss before income
taxes
|
|
(14,045)
|
|
(15,669)
|
|
(34,147)
|
|
(40,519)
|
|
Income tax expense
(benefit)
|
|
|
|
|
|
|
|
|
|
Current
|
|
(392)
|
|
340
|
|
177
|
|
1,051
|
|
Deferred
|
|
(1,674)
|
|
(282)
|
|
(9,871)
|
|
(6,369)
|
|
Total income tax
benefit
|
|
(2,066)
|
|
58
|
|
(9,694)
|
|
(5,318)
|
|
Net loss
attributable to the
Company
|
$
|
(11,979)
|
$
|
(15,727)
|
$
|
(24,453)
|
$
|
(35,201)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.17)
|
$
|
(0.70)
|
$
|
(1.03)
|
$
|
(1.96)
|
|
Diluted
|
$
|
(0.17)
|
$
|
(0.70)
|
$
|
(1.03)
|
$
|
(1.96)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in Number):
|
Basic
|
|
72,003,811
|
|
31,647,131
|
|
41,933,050
|
|
31,650,173
|
|
Diluted
|
|
72,003,811
|
|
31,647,131
|
|
41,933,050
|
|
31,650,173
|
|
KORE Group
Holdings, Inc. and Subsidiaries
|
CONSOLIDATED BALANCE
SHEETS
|
(In thousands USD,
except share and per share amounts)
|
|
|
|
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash equivalents
|
$
|
85,976
|
$
|
10,321
|
Accounts receivable, net of allowances for credits
and doubtful accounts of $1,800 and $2,804,
at
December 31, 2021, and 2020,
respectively
|
|
51,304
|
|
40,661
|
Inventories, net
|
|
15,470
|
|
5,842
|
Income taxes receivable
|
|
954
|
|
-
|
Prepaid expenses and other receivables
|
|
7,448
|
|
5,429
|
Total current assets
|
|
161,152
|
|
62,253
|
Non-current
assets
|
|
|
|
|
Restricted cash
|
|
367
|
|
372
|
Property and equipment, net
|
|
12,240
|
|
13,709
|
Intangibles assets, net
|
|
203,474
|
|
240,203
|
Goodwill
|
|
381,962
|
|
382,749
|
Deferred tax assets
|
|
-
|
|
122
|
Other long-term assets
|
|
407
|
|
611
|
Total assets
|
$
|
759,602
|
$
|
700,019
|
Liabilities, temporary equity and stockholders'
equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
$
|
16,004
|
$
|
22,978
|
Accrued liabilities
|
|
21,311
|
|
17,209
|
Income taxes payable
|
|
467
|
|
244
|
Current portion of capital lease obligations
|
|
191
|
|
856
|
Deferred revenue
|
|
6,889
|
|
7,772
|
Current portion of long-term debt and other
borrowings,
net
|
|
3,326
|
|
3,161
|
Total current
liabilities
|
|
48,188
|
|
52,220
|
Non-current
liabilities
|
|
|
|
|
Deferred tax liabilities
|
|
36,722
|
|
42,840
|
Due
to related parties
|
|
-
|
|
1,615
|
Warrant liability
|
|
286
|
|
15,944
|
Capital lease obligations
|
|
264
|
|
508
|
Long-term debt and other borrowings, net
|
|
399,115
|
|
298,404
|
Other long-term liabilities
|
|
2,884
|
|
4,377
|
Total liabilities
|
$
|
487,459
|
$
|
415,908
|
KORE Group
Holdings, Inc. and Subsidiaries
|
CONSOLIDATED BALANCE
SHEETS - CONTINUED
|
(In thousands USD,
except share and per share amounts)
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Temporary
equity
|
|
|
|
|
Series A Preferred
Stock; par value $1,000 per share; none
authorized, issued and outstanding on December 31, 2021;
7,765,229 shares authorized, and 7,756,158 shares issued
and outstanding on December 31, 2020
|
$
|
-
|
$
|
77,562
|
Series A-1 Preferred
Stock; par value $1,000 per share; none
authorized, issued and outstanding on December 31, 2021;
10,480,538 shares authorized, 7,862,107 shares issued and
outstanding on December 31, 2020
|
|
-
|
|
78,621
|
Series B Preferred
Stock; par value $1,000 per share; none
authorized, issued and outstanding on December 31, 2021;
9,090,975 shares authorized, 9,090,975 shares issued and
outstanding on December 31, 2020
|
|
-
|
|
90,910
|
Series C Convertible
Preferred Stock; par value $1,000 per
share; none authorized, issued and outstanding on December
31, 2021; 6,872,894 shares authorized, 2,566,186 shares
issued and outstanding on December 31, 2020
|
|
-
|
|
16,802
|
Total temporary
equity
|
$
|
-
|
$
|
263,895
|
Stockholders'
equity
|
|
|
|
|
Common stock, voting;
par value $0.0001 per share;
315,000,000 shares authorized, 72,027,743 shares issued and
outstanding at December 31, 2021; 55,659,643 shares
authorized, 30,281,520 shares issued and outstanding at
December 31, 2020
|
$
|
7
|
$
|
3
|
Additional paid-in
capital
|
|
413,646
|
|
135,616
|
Accumulated other
comprehensive loss
|
|
(3,331)
|
|
(1,677)
|
Accumulated
deficit
|
|
(138,179)
|
|
(113,726)
|
Total stockholders'
equity
|
|
272,143
|
|
20,216
|
Total liabilities,
temporary equity and stockholders' equity
|
$
|
759,602
|
$
|
700,019
|
KORE Group Holdings, Inc. and
Subsidiaries
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(In thousands USD)
|
|
|
|
|
|
|
|
For the years ended
|
|
December 31,
2021
|
|
December 31, 2020
|
|
December 31, 2019
|
Cash flows from operating
activities
|
|
|
|
|
|
|
Net
loss
|
$
|
(24,453)
|
$
|
(35,201)
|
$
|
(23,443)
|
Adjustments to
reconcile net loss to net
cash (used in) provided by operating
activities
|
|
|
|
|
|
|
Depreciation and amortization
|
|
50,414
|
|
52,488
|
|
48,131
|
Intangible asset impairment loss
|
|
-
|
|
-
|
|
3,892
|
Amortization of deferred financing costs
|
|
2,097
|
|
2,313
|
|
2,063
|
Amortization of discount on Backstop Notes
|
|
424
|
|
-
|
|
-
|
Deferred income taxes
|
|
(9,871)
|
|
(6,178)
|
|
(11,419)
|
Non-cash foreign currency loss
|
|
344
|
|
233
|
|
1,440
|
Share-based compensation
|
|
4,564
|
|
1,161
|
|
1,682
|
Provision for doubtful accounts
|
|
322
|
|
640
|
|
905
|
Change in fair value of warrant liability
|
|
(5,267)
|
|
7,485
|
|
(235)
|
Settlement gain on carrier commitment liability
|
|
-
|
|
-
|
|
(2,269)
|
Change in operating
assets and liabilities, net of operating assets and liabilities
acquired:
|
|
|
|
Accounts receivable
|
|
(11,884)
|
|
(6,072)
|
|
860
|
Inventories
|
|
(9,875)
|
|
(3,027)
|
|
(566)
|
Prepaid expenses and other receivables
|
|
(1,700)
|
|
(2,020)
|
|
169
|
Accounts payable and accrued liabilities
|
|
(8,371)
|
|
13,100
|
|
(2,458)
|
Deferred revenue
|
|
(805)
|
|
1,583
|
|
(44)
|
Income taxes payable
|
|
(697)
|
|
(34)
|
|
(1,158)
|
Change in minimum carrier commitment liability
|
|
-
|
|
-
|
|
(3,297)
|
Cash (used in) provided
by operating activities
|
$
|
(14,758)
|
$
|
26,471
|
$
|
14,253
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
Additions
to intangible assets
|
|
(9,247)
|
|
(10,135)
|
|
(10,491)
|
Additions
to property and equipment
|
|
(4,172)
|
|
(1,834)
|
|
(2,391)
|
Acquisition of Integron LLC, net of cash acquired
|
|
-
|
|
366
|
|
(37,488)
|
Net cash used in
investing activities
|
$
|
(13,419)
|
$
|
(11,603)
|
$
|
(50,370)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Proceeds
from revolving credit facility
|
|
25,000
|
|
-
|
|
8,135
|
Repayment
on revolving credit facility
|
|
(25,000)
|
|
(8,300)
|
|
-
|
Repayment
of term loan
|
|
(3,161)
|
|
(3,526)
|
|
(2,888)
|
Repayment
of other borrowings – notes payable
|
|
(173)
|
|
-
|
|
-
|
Proceeds
from term loan
|
|
-
|
|
-
|
|
35,000
|
Proceeds
from convertible debt
|
|
104,167
|
|
-
|
|
-
|
Proceeds
from equity portion of
convertible debt, net of issuance
costs
|
|
15,697
|
|
-
|
|
-
|
Payment of
deferred financing costs
|
|
(1,579)
|
|
-
|
|
(2,089)
|
Repayment
of related party note
|
|
(1,538)
|
|
-
|
|
-
|
Repurchase
of common stock
|
|
-
|
|
(200)
|
|
(80)
|
Proceeds
from CTAC and PIPE
financing, net of issuance costs
|
|
223,688
|
|
-
|
|
-
|
Settlements of preferred shares
|
|
(229,915)
|
|
-
|
|
-
|
Payment of
capital lease obligations
|
|
(828)
|
|
(692)
|
|
(1,080)
|
Payment of
stock option share
employee withholding taxes
|
|
(2,305)
|
|
-
|
|
-
|
Cash
provided by/(used in) financing
activities
|
$
|
104,053
|
$
|
(12,718)
|
$
|
36,998
|
Effect of Exchange
Rate Change on
Cash and Cash Equivalents
|
|
(226)
|
|
(149)
|
|
(162)
|
Change in Cash and
Cash Equivalents
and Restricted Cash
|
|
75,650
|
|
2,001
|
|
719
|
Cash and Cash
Equivalents and
Restricted Cash, beginning of period
|
|
10,693
|
|
8,692
|
|
7,973
|
Cash and Cash
Equivalents and
Restricted Cash, end of period
|
$
|
86,343
|
$
|
10,693
|
$
|
8,692
|
KORE Group
Holdings, Inc. and Subsidiaries
|
RECONCILIATION OF
NET LOSS TO EBITDA TO ADJUSTED EBITDA
|
(In thousands
USD)
|
|
Three Months Ended
Dec. 31,
|
Years Ended Dec.
31,
|
|
2021
|
2020
|
2021
|
2020
|
Net
loss
|
$ (11,979)
|
$ (15,727)
|
$ (24,453)
|
$(35,201)
|
Income tax expense (benefit)
|
(2,066)
|
58
|
(9,694)
|
(5,318)
|
Interest expense
|
7,105
|
5,134
|
23,260
|
23,493
|
Depreciation and amortization
|
12,467
|
13,604
|
50,414
|
52,488
|
EBITDA
|
5,527
|
3,069
|
39,527
|
35,462
|
Change in FV of warrant liabilities
(non-cash)
|
14
|
4,003
|
(5,267)
|
7,485
|
Transformation expenses
|
2,763
|
1,906
|
8,937
|
7,354
|
Acquisition and integration-related
restructuring
costs
|
3,997
|
2,310
|
11,287
|
5,709
|
Stock-based compensation (non-
cash)
|
-
|
315
|
4,564
|
1,161
|
Other income tax liability reversal
(non-cash)
|
-
|
80
|
-
|
80
|
Foreign currency loss (non-cash)
|
507
|
1,589
|
344
|
233
|
Other
|
88
|
46
|
478
|
335
|
Adjusted
EBITDA
|
$12,896
|
$13,318
|
$59,870
|
$57,819
|
Contacts
KORE
Media and Investors:
Vik Vijayvergiya
Vice President, Investor Relations
investors@korewireless.com
+1-770-280-0324
or
Investors:
Matt Glover, Alex Thompson
Gateway Group, Inc.
KORE@gatewayir.com
+1-949-574-3860
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SOURCE KORE Wireless