ATLANTA, Aug. 11,
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 quarter
ended June 30, 2022.
"In the second quarter, year-over-year,
KORE again generated strong growth," said Romil Bahl, President & CEO of
KORE.
"In the second quarter, year-over-year, KORE again generated
strong growth. Total revenue increased 16%, led by 47% growth in
IoT Solutions, and the number of connected devices on the KORE
platform increased to 15.2 million compared to 13.2 million," said
Romil Bahl, President and CEO of
KORE. "I am proud of the KORE team for their hard work in
delivering another quarter of strong results. As we have
consistently communicated since going public three quarters ago, we
expect the second half of 2022 to be down versus the first half due
to the LTE transition program at our largest customer ending, as
well as the ongoing 2G and 3G sunsets in the U.S. impacting our
business. However, based on our strong first half, and despite an
increasing headwind from foreign exchange, primarily against the
euro, we are maintaining our guidance for the year."
KORE: Company Highlights
- Second-quarter revenue of $70.4
million increased 16% year-over-year, driven by 47% growth
in IoT Solutions and a 3% increase in IoT Connectivity.
- DBNER1 increased to 114% in second quarter of 2022,
compared to 113% in second quarter of 2021.
- The Company is maintaining its fiscal 2022 revenue and adjusted
EBITDA, a non-GAAP metric2, guidance at
$260-265 million and $63-64 million, respectively.
- KORE generated $14.7 million in
cash flow from operations in the second quarter.
- On June 27, 2022, KORE was added
as a member of the broad-market Russell 3000® Index.
Financial Performance for Second Quarter 2022, Compared to
the Same Period of 2021:
- Total revenue increased 16% to $70.4
million, compared to $60.7
million.
- IoT Solutions revenue increased 47% to $25.7 million, compared to $17.4 million. Revenue growth in the second
quarter was primarily the result of the acquisition of Business
Mobility Partners Inc. and Simon IoT LLC (the "BMP-Simon
Acquisition").
- IoT Connectivity revenue increased 3% to $44.7 million, compared to $43.3 million.
- Net loss increased to $11.1
million, or $0.15 per share,
compared to $6.9 million, or
$0.46 per share.
- Adjusted EBITDA increased 8% to $15.9
million, compared to $14.7
million.
Financial Performance for Six Months Ending June 30, 2022, Compared to the Same Period of
2021:
- Total revenue increased 20% to $139.3
million, compared to $116.0
million.
- IoT Solutions revenue increased 58% to $50.5 million, compared to $32.0 million. Revenue growth in the six-month
period was primarily the result of the BMP-Simon Acquisition.
- IoT Connectivity revenue increased 6% to $88.8 million, compared to $84.0 million.
- Net loss increased to $22.0
million, or $0.29 per share,
compared to $8.0 million, or
$0.72 per share.
- Adjusted EBITDA increased 1% to $31.5
million, compared to $31.2
million.
The table below summarizes our revenue and certain key metrics
(amounts in thousands USD except for Total Connections):
|
For the three
months ended June 30,
|
Revenue
|
2022
|
|
2021
|
IoT
Connectivity
|
$
44,678
|
|
64 %
|
|
$
43,328
|
|
71 %
|
IoT
Solutions
|
25,675
|
|
36 %
|
|
17,415
|
|
29 %
|
Total
Revenue
|
$
70,353
|
|
100 %
|
|
$
60,743
|
|
100 %
|
Period End Total
Connections3
|
15.2 million
|
|
13.2 million
|
Average Total
Connections for the Period
|
15.2 million
|
|
13.1 million
|
|
For the six
months ended June 30,
|
Revenue
|
2022
|
|
2021
|
IoT
Connectivity
|
$
88,776
|
|
64 %
|
|
$
84,048
|
|
72 %
|
IoT
Solutions
|
50,518
|
|
36 %
|
|
31,992
|
|
28 %
|
Total
Revenue
|
$
139,294
|
|
100 %
|
|
$
116,040
|
|
100 %
|
Period End Total
Connections
|
15.2 million
|
|
13.2 million
|
Average Total
Connections for the Period
|
15.1 million
|
|
12.9 million
|
Second Quarter 2022 Key Metrics and Business
Successes
- KORE grew total connected devices to approximately 15.2 million
Total Connections, a year-over-year increase of 15%.
- DBNER was 114% for the second quarter of 2022, compared to 113%
in the second quarter 2021.
- KORE Fleet launched Pro AI™, the first "plug-and-play"
camera, to the integrated in-vehicle video platform. Pro AI
has been well received by customers and KORE expects this
innovative product to drive sales of its video telematics
solution.
- KORE was recently named a 2022 Global Competitive Strategy
Leader in the Internet of Things Professional Services Industry
by research and consulting firm Frost & Sullivan.
- Successfully completed the Pilot Phase with three customers for
KORE's Connected Health Telemetry Solution (CHTS), which was
recently awarded the IoT Evolution Product of the Year by
IoT Evolution World.
2022 Financial Outlook
For the twelve months ending December 31,
2022, the Company continues to expect:
- Revenue of $260 million to
$265 million.
- Adjusted EBITDA of $63 million to
$64 million, representing a margin of
approximately 24%.
"While the remainder of 2022 will be impacted by the transitory
factors we have previously communicated, I am excited that KORE's
growth prospects will become more evident next year. Following the
completion of the U.S. 2G/3G network sunsets this year, and against
a backdrop of stabilizing ARPU, our IoT Connectivity business is
poised to grow in a more exciting fashion in 2023 and beyond. And
with our largest customer's LTE transition project complete, our
IoT Solutions business will now reset to a normalized base from
which it too can grow," Bahl said.
Continued Bahl, "with our recurring revenue and industry-leading
IP, we are attacking a significant market opportunity. It is worth
noting that KORE has continued to grow in the face of a global
pandemic, network transitions, supply chain shortages, and global
economic uncertainty. We have proven the quality and resilience of
our business model and our ability to grow in a difficult
environment – and I am confident we have a tremendous opportunity
for shareholder value creation in front of us."
Conference Call Details
KORE management will hold a conference call today (August 11, 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: 13731223
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 measures Adjusted EBITDA and
Adjusted EBITDA margin 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
these non-GAAP guidance metrics to their 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 June 30, 2022, we divide
(i) revenue, for the trailing 12 months ended June 30, 2022, from go-forward customers that
started generating revenue on or before June
30, 2022, by (ii) revenue, for the trailing 12 months ended
June 30, 2021, 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 June 30, 2022, and
June 30, 2021, 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, 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
anticipates 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.
Contacts
KORE
Media and Investors:
Charley Brady
Vice President, Investor Relations
investors@korewireless.com
+1-678-392-2335
Investors:
Matt Glover, Alex Thompson
Gateway Group, Inc.
KORE@gatewayir.com
+1-949-574-3860
1
|
See "Key Metrics"
below for definitions.
|
2
|
See "Non-GAAP Financial
Measures" and "Reconciliation of Net Loss to EBITDA to Adjusted
EBITDA" below for more information.
|
3
|
See "Key Metrics"
below for definitions.
|
KORE Group
Holdings, Inc. and Subsidiaries
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands USD,
except share and per share amounts) (unaudited)
|
|
|
|
|
|
For the three
months ended
|
|
For the six
months ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
|
|
|
|
|
|
|
Services
|
$
47,778
|
|
$
46,375
|
|
$
95,284
|
|
$
91,437
|
Products
|
22,575
|
|
14,368
|
|
44,010
|
|
24,603
|
Total
revenue
|
70,353
|
|
60,743
|
|
139,294
|
|
116,040
|
Cost of
revenue
|
|
|
|
|
|
|
|
Cost of
services
|
16,577
|
|
17,826
|
|
34,105
|
|
34,037
|
Cost of
products
|
17,298
|
|
11,511
|
|
34,741
|
|
19,672
|
Total cost of
revenue (exclusive of
depreciation and amortization shown
separately below)
|
33,875
|
|
29,337
|
|
68,846
|
|
53,709
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general
and administrative
|
29,413
|
|
23,004
|
|
57,402
|
|
40,525
|
Depreciation and
amortization
|
13,774
|
|
12,393
|
|
26,970
|
|
25,507
|
Total operating
expenses
|
43,187
|
|
35,397
|
|
84,012
|
|
66,032
|
Operating income
(loss)
|
(6,709)
|
|
(3,991)
|
|
(13,564)
|
|
(3,701)
|
Interest expense,
including amortization of
deferred financing costs, net
|
7,297
|
|
5,506
|
|
13,921
|
|
10,565
|
Change in fair value
of warrant liability
|
(106)
|
|
41
|
|
(133)
|
|
(2,383)
|
Loss before income
taxes
|
(13,900)
|
|
(9,538)
|
|
(27,352)
|
|
(11,883)
|
Income tax expense
(benefit)
|
|
|
|
|
|
|
|
Current
|
1,056
|
|
289
|
|
2,362
|
|
391
|
Deferred
|
(3,815)
|
|
(2,942)
|
|
(7,666)
|
|
(4,308)
|
Total income tax
benefit
|
(2,759)
|
|
(2,653)
|
|
(5,304)
|
|
(3,917)
|
Net
loss
|
$
(11,141)
|
|
$
(6,885)
|
|
$
(22,048)
|
|
$
(7,966)
|
Loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.15)
|
|
$
(0.46)
|
|
$
(0.29)
|
|
$
(0.72)
|
Diluted
|
$
(0.15)
|
|
$
(0.46)
|
|
$
(0.29)
|
|
$
(0.72)
|
Weighted average number
of shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
76,239,989
|
|
31,647,131
|
|
75,146,201
|
|
31,647,131
|
Diluted
|
76,239,989
|
|
31,647,131
|
|
75,146,201
|
|
31,647,131
|
KORE Group
Holdings, Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands USD,
except share and per share amounts) (unaudited)
|
|
|
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
40,441
|
|
$
85,976
|
Accounts receivable,
net of allowances for credits and doubtful accounts of $2,978
and $1,800, at June 30, 2022 and December 31, 2021,
respectively
|
50,767
|
|
51,304
|
Inventories,
net
|
9,897
|
|
15,470
|
Income taxes
receivable
|
712
|
|
954
|
Prepaid expenses and
other receivables
|
9,089
|
|
7,448
|
Total current
assets
|
110,906
|
|
161,152
|
Non-current
assets
|
|
|
|
Restricted
cash
|
363
|
|
367
|
Property and
equipment, net
|
11,890
|
|
12,240
|
Intangibles assets,
net
|
211,829
|
|
203,474
|
Goodwill
|
426,126
|
|
381,962
|
Operating lease
right-of-use assets
|
7,914
|
|
—
|
Other long-term
assets
|
381
|
|
407
|
Total
assets
|
$
769,409
|
|
$
759,602
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
19,288
|
|
$
16,004
|
Accrued
liabilities
|
15,348
|
|
21,502
|
Current portion of
operating lease liabilities
|
1,764
|
|
—
|
Income taxes
payable
|
502
|
|
467
|
Deferred
revenue
|
7,698
|
|
6,889
|
Current portion of
long-term debt and other borrowings, net
|
3,165
|
|
3,326
|
Total current
liabilities
|
47,765
|
|
48,188
|
Non-current
liabilities
|
|
|
|
Deferred tax
liabilities
|
32,618
|
|
36,722
|
Warrant
liability
|
153
|
|
286
|
Non-current portion of
operating lease liabilities
|
6,852
|
|
—
|
Long-term debt and
other borrowings, net
|
413,788
|
|
399,115
|
Other long-term
liabilities
|
4,349
|
|
3,148
|
Total
liabilities
|
$
505,525
|
|
$
487,459
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock, voting;
par value $0.0001 per share; 315,000,000 shares authorized,
76,239,989 and 72,027,743 shares issued and outstanding at June 30,
2022 and
December 31, 2021, respectively
|
$
8
|
|
$
7
|
Additional paid-in
capital
|
429,879
|
|
413,646
|
Accumulated other
comprehensive loss
|
(6,074)
|
|
(3,331)
|
Accumulated
deficit
|
(159,929)
|
|
(138,179)
|
Total stockholders'
equity
|
263,884
|
|
272,143
|
Total liabilities
and stockholders' equity
|
$
769,409
|
|
$
759,602
|
KORE Group
Holdings, Inc. and Subsidiaries
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
(In thousands USD)
(unaudited)
|
|
|
|
|
|
For the six
months ended
|
|
|
June
30,
|
|
|
2022
|
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
|
|
Net loss
|
$
|
(22,048)
|
|
$
|
(7,966)
|
Adjustments to
reconcile net loss to net cash provided by (used) in operating
activities
|
|
|
|
|
|
Depreciation and
amortization
|
|
26,970
|
|
|
25,507
|
Amortization of
deferred financing costs
|
|
1,188
|
|
|
1,047
|
Non-cash reduction to
the operating lease right-of-use assets
|
|
1,129
|
|
|
—
|
Deferred income
taxes
|
|
(7,666)
|
|
|
(4,308)
|
Non-cash foreign
currency loss
|
|
489
|
|
|
77
|
Share-based
compensation
|
|
4,551
|
|
|
630
|
Provision for doubtful
accounts
|
|
183
|
|
|
11
|
Change in fair value
of warrant liability
|
|
(133)
|
|
|
(2,383)
|
Change in operating
assets and liabilities, net of operating assets and liabilities
acquired:
|
|
|
|
|
|
Accounts
receivable
|
|
2,421
|
|
|
(7,049)
|
Inventories
|
|
6,661
|
|
|
(4,089)
|
Prepaid expenses and
other receivables
|
|
(769)
|
|
|
(9,016)
|
Accounts payable and
accrued liabilities
|
|
(2,674)
|
|
|
(6,103)
|
Deferred
revenue
|
|
872
|
|
|
(671)
|
Income taxes
payable
|
|
269
|
|
|
(32)
|
Operating lease
liabilities
|
|
(752)
|
|
|
—
|
Net cash provided by
(used in) operating activities
|
$
|
10,691
|
|
$
|
(14,345)
|
Cash flows used in
investing activities
|
|
|
|
|
|
Additions to
intangible assets
|
|
(5,610)
|
|
|
(4,754)
|
Additions to property
and equipment
|
|
(1,589)
|
|
|
(1,219)
|
Payments for
acquisitions, net of cash acquired
|
|
(46,002)
|
|
|
—
|
Net cash used in
investing activities
|
$
|
(53,201)
|
|
$
|
(5,973)
|
Cash flows from
financing activities
|
|
|
|
|
|
Proceeds from
revolving credit facility
|
|
—
|
|
|
22,000
|
Repayment of term
loan
|
|
(1,576)
|
|
|
(1,584)
|
Repayment of other
borrowings—notes payable
|
|
(148)
|
|
|
—
|
Equity financing
fees
|
|
(126)
|
|
|
(1,373)
|
Payment of deferred
financing costs
|
|
(453)
|
|
|
—
|
Payment of financing
lease obligations
|
|
(151)
|
|
|
—
|
Payment of capital
lease obligations
|
|
—
|
|
|
(668)
|
Net cash provided
by/(used in) financing activities
|
$
|
(2,454)
|
|
$
|
18,375
|
Effect of exchange rate
change on cash and cash equivalents
|
|
(575)
|
|
|
(82)
|
Change in cash and cash
equivalents and restricted cash
|
|
(45,539)
|
|
|
(2,025)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
|
86,343
|
|
|
10,693
|
Cash and cash
equivalents and restricted cash, end of period
|
$
|
40,804
|
|
$
|
8,668
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
$
|
12,778
|
|
$
|
9,329
|
Interest
paid
|
|
1,129
|
|
|
—
|
Taxes paid
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Fair value of KORE
common stock issued pursuant to acquisitions
|
|
23,295
|
|
|
|
ASU 2020-06
Adoption
|
|
15,163
|
|
|
—
|
Operating lease
right-of-use assets obtained in exchange for new operating
lease
liabilities upon the adoption of ASC 842
|
|
9,604
|
|
|
|
Operating lease
right-of-use assets obtained in exchange for new operating
lease
liabilities
|
|
420
|
|
|
—
|
Capital
leases
|
|
—
|
|
|
346
|
Equity financing fees
accrued
|
|
—
|
|
|
1,648
|
KORE Group
Holdings, Inc. and Subsidiaries
|
RECONCILIATION OF
NET LOSS TO EBITDA TO ADJUSTED EBITDA
|
(In thousands USD)
(unaudited)
|
|
|
|
|
|
For the three
months ended June 30,
|
|
For the six
months ended June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
loss
|
$
(11,141)
|
(22,048)
|
$
(6,885)
|
|
$
(22,048)
|
|
$
(7,966)
|
Income tax
benefit
|
(2,759)
|
|
(2,653)
|
|
(5,304)
|
|
(3,917)
|
Interest
expense
|
7,297
|
|
5,506
|
|
13,921
|
|
10,565
|
Depreciation and
amortization
|
13,774
|
|
12,393
|
|
26,970
|
|
25,507
|
EBITDA
|
7,171
|
|
8,361
|
|
13,539
|
|
24,189
|
Change in Fair value
of warrant liabilities
(non-cash)
|
(106)
|
|
41
|
|
(133)
|
|
(2,383)
|
Transformation
expenses
|
1,901
|
|
1,947
|
|
3,466
|
|
3,750
|
Acquisition and
integration-related
restructuring costs
|
3,791
|
|
3,667
|
|
9,084
|
|
4,518
|
Stock-based
compensation (non-cash)
|
2,501
|
|
315
|
|
4,551
|
|
630
|
Foreign currency loss
(non-cash)
|
480
|
|
147
|
|
477
|
|
77
|
Other
|
151
|
|
181
|
|
546
|
|
396
|
Adjusted
EBITDA
|
$
15,888
|
|
$
14,659
|
|
$
31,530
|
|
$
31,177
|
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SOURCE KORE Wireless