- Gross Profit grew 23% to $7.7 million, compared with the prior
year period, driven by increases in the Infrastructure segment
- Second quarter revenues of $147.6 million; Infrastructure
segment revenues increased 18%, compared with the prior year
period
- Infrastructure segment backlog totaled $138.2 million at the
close of the second quarter 2023
- Reaffirms expected positive Adjusted EBITDA in the first
quarter 2024
- Recent acquisition of Greenspeed further solidifies the
Company’s focus on establishing itself as a go-to resource for
customers needing EV charging support
Charge Enterprises, Inc. (Nasdaq: CRGE) (“Charge” or the
“Company”), today reported second quarter 2023 results. For the
quarter, revenues were $147.6 million, compared with $181.0 million
in the second quarter of 2022. Gross profit for the second quarter
of 2023 increased to $7.7 million, compared with $6.3 million in
the second quarter of 2022.
“Charge’s second quarter revenue results were led by the strong
performance from our Infrastructure segment, which includes our
fast-growing Electric Vehicle (EV) charging infrastructure
business. The 18% growth in revenues in our Infrastructure segment
was offset by a decline in revenues in our Telecommunications
segment, which experienced lower wholesale voice volume. The
decline in revenues in the Telecommunications segment was expected
to occur over time due to technology dynamics in voice calling. We
have taken steps to mitigate this impact through new higher margin
SMS text product offerings. Most importantly, we delivered on
another significant milestone by achieving a second consecutive
quarter of record Infrastructure segment backlog, reaching
approximately $138 million at the end of the second quarter. We
believe the continued increase in our customer commitments to
engage Charge as their trusted resource in EV installations
supports our long-term growth strategy for our Infrastructure
segment. The expansion of our backlog also reflects the success we
are experiencing in winning new automotive retail dealership
customers nationwide," said Andrew Fox, Founder, Chairman and
CEO.
"Our auto dealer customers' multi-year programs to install EV
infrastructure is expected to continue to drive demand for our
services and create recurring revenue opportunities with our remote
monitoring and management software tool. At the end of the second
quarter, we achieved nearly 20% of our goal of project engagement
with 1,000 major market dealerships by 2025. Our recently announced
acquisition of Greenspeed, a leading provider of EV infrastructure
solutions, marks an important initiative for Charge that enhances
our capabilities to both execute and service customers as the
nation transitions to EVs. With Greenspeed’s skilled workforce, we
have significantly strengthened our capabilities to serve clients
directly, which is expected to enhance the quality of service and
drive higher gross margin opportunities with our customer
engagements. We believe that by leveraging Greenspeed’s success
with retail dealerships and other channels, along with its scale
and capacity, we can provide an even more compelling and complete
suite of services to meet the high customer demand for EV
infrastructure over the coming years.”
Fox added, “The strong demand for EV infrastructure, both from
private and public sectors, is boosted by increasing government
support for sustainable solutions, and auto OEM mandates for EV
infrastructure deployments across dealer networks, creating very
favorable market dynamics. We believe our robust growth in backlog,
together with our strategic EV infrastructure acquisition, provides
a positive outlook for the remainder of this year and that our
strategies for profitable growth in 2024 and beyond are gaining
momentum."
Selected Financial Information
Three months ended June
30,
Six months ended June
30,
($ in thousands)
2023
2022 (As Adjusted)(1)
Increase (Decrease)
2023
2022 (As Adjusted)
(Decrease)
Total Revenues
$
147,586
$
181,041
$
(33,455
)
$
341,135
$
344,019
$
(2,884
)
Gross Profit
7,748
6,274
1,474
14,037
11,636
2,401
Net Income (Loss)
(8,846
)
(17,160
)
8,314
(18,058
)
(27,186
)
9,128
Adjusted EBITDA(2)
$
(2,323
)
$
(1,602
)
$
(721
)
$
(4,831
)
$
(3,435
)
$
(1,396
)
(1)
As Adjusted represents the
Company's change in accounting principle for recognizing
stock-based compensation expense from a graded vesting attribution
method to a straight-line attribution method. The effects of the
change have been retrospectively applied to all periods effective
from January 1, 2023, as presented in the Management’s Discussion
and Analysis of Financial Condition and Results of Operations in
the Company’s 10-Q to be filed with the SEC on August 14, 2023.
(2)
Adjusted EBITDA represents income
(loss) before interest, income taxes, depreciation and
amortization, and amortization of debt discount and debt issue
costs adjusted for stock-based compensation, loss on impairment,
(income) loss from investments, net, change in fair value of
derivative liabilities, other (income) expense, net, and foreign
exchange adjustments. Refer to Appendix for definition and complete
non-GAAP reconciliation for Adjusted EBITDA.
Charge’s CFO Leah Schweller commented, “Although our second
quarter revenues declined compared with the prior year period, this
was expected due to the ongoing decrease in wholesale voice volume
in our Telecommunications segment. However, we continued to benefit
from growth within our Infrastructure segment, primarily driven by
our BW and EV charging infrastructure businesses. We are encouraged
by our robust backlog and our recent acquisition of Greenspeed,
which we believe will enable us to serve our customers at an even
higher level. Our priorities remain focused on growing revenues and
EBITDA, maintaining strong controls over expenses, and driving
profitability. In pursuit of growth, we plan to continue to make
strategic investments, including proper staffing levels, technology
enabled tools, and the ongoing implementation of SMS technology,
while diligently seeking opportunities to reduce costs.”
As discussed last quarter, the Company changed its accounting
principle for recognizing stock-based compensation expense from a
graded vesting attribution method to a straight-line attribution
method. Additionally, subsequent to the change in accounting
principle, the Company reclassified its expense related to
stock-based compensation arrangements to present in the same
financial statement line item as cash compensation paid to the same
employees and nonemployees. As a result, the stock-based
compensation financial statement line item was eliminated, and
there was a corresponding change in expense reported in cost of
sales, general and administrative and salaries and related benefits
financial statement line items. Further details can be found within
Note 2, Summary of significant accounting policies, and in the
Management’s Discussion and Analysis of Financial Condition and
Results of Operations in the Company’s 10-Q to be filed with the
SEC on August 14, 2023.
Second Quarter 2023 Financial Results
Revenues for the second quarter of 2023 decreased $33.5 million
to $147.6 million, compared with $181.0 million in the second
quarter of 2022. The 18% decrease in revenues was the result of
lower revenues in the Company’s Telecommunications segment,
partially offset by increased revenues in its Infrastructure
segment.
- Infrastructure: Revenues increased
$4.5 million to $30.0 million, compared with $25.4 million in the
second quarter of 2022, driven by increased electrical contracting
services within BW, and continued execution within EV charging
infrastructure compared with the prior year. The increase was
partially offset by lower revenues in the Company’s ANS business,
as a result of reduced spending by the major wireless broadband
companies.
- Telecommunications: Revenues
decreased $38.0 million to $117.6 million, compared with $155.6
million in the second quarter of 2022, primarily attributable to
the expected lower wholesale voice volume.
Gross profit for the second quarter of 2023 increased $1.5
million to $7.7 million, compared with $6.3 million in the second
quarter of 2022. The increase in gross profit was primarily driven
by higher gross profit in the Company’s Infrastructure segment,
partially offset by lower gross profit in the Company’s
Telecommunications segment.
Consolidated gross margin percentage for the second quarter of
2023 increased versus the prior year period, driven by higher gross
margin in both of the Company’s business segments, as well as an
increasing proportion of revenues coming from the Company’s higher
margin Infrastructure segment.
Net loss for the second quarter of 2023 was $8.8 million,
compared with a net loss of $17.2 million in the second quarter of
2022. Expenses after gross profit were primarily related to
continued investments the Company made to support its growth
strategy. The largest drivers over the prior year period were:
- $5.4 million in general and administrative expense, which
represented a decrease of $1.0 million, attributable to a decrease
in stock-based compensation expense, partially offset by higher
investments in marketing;
- $9.2 million in salaries and related benefits, which
represented a $1.4 million increase, driven by incremental
headcount to support the growth of the Company over the past year,
partially offset by a decrease in stock-based compensation;
- $0.4 million in professional fees, which represented a $0.4
million decrease, primarily related to reduced legal fees in the
current period following the insourcing of legal counsel in the
fourth quarter of 2022, as well as higher fees incurred in the
prior year period to support the uplist to the Nasdaq; and
- $0.1 million in other income/(expense), net, which represented
an increase of $7.1 million, primarily driven by a $5.4 million
decrease in relation to debt amortization costs and an increase in
investment income, net, of $1.7 million.
Net loss of $8.8 million in the second quarter of 2023, adjusted
for non-cash and certain one-time items, resulted in an Adjusted
EBITDA loss of $2.3 million, compared with Adjusted EBITDA loss of
$1.6 million in the second quarter of 2022. See the Appendix for
definition and a full reconciliation.
As of June 30, 2023, the Company held $61.7 million in cash,
cash equivalents and marketable securities, most of which is used
for operations. On August 11, 2023, the Company entered into a
Securities Purchase Agreement with an existing stockholder pursuant
to which, beginning on October 15, 2023 and through March 31, 2024,
the Company has the right, but not the obligation, to sell, and to
require the purchaser to purchase, up to $5.0 million of shares of
the Company’s common stock, at a purchase price of $1.00 per
share.
For further details of the Company’s financials, please see
Charge Enterprises’ Form 10-Q to be filed on August 14, 2023, with
the Securities and Exchange Commission and available on Charge’s
website Charge | SEC Filings. Financial statements prior to
December 31, 2021, were filed with the OTC Markets.
Webcast Data
Charge Enterprises, Inc. will host a webcast at 10:30 a.m.
Eastern Time today to discuss the second quarter 2023 financial
results. The webcast can be accessed on the Company’s website on
the Investor Relations page at Charge Enterprises, Inc.
About Charge Enterprises, Inc.
Charge Enterprises, Inc. is an electrical, broadband and EV
charging infrastructure company that provides clients with
end-to-end project management services. We operate in two segments:
Infrastructure, which has a primary focus on EV charging, broadband
and wireless, and electrical contracting services; and
Telecommunications, which provides connection of voice calls, Short
Message Services (SMS) and data to global carriers. Our vision is
to be a leader in enabling the next wave of transportation and
connectivity. By building, designing, and operating seamless
infrastructure for electric vehicles, we aim to create a future
where transportation is clean, efficient, and connected and to
empower individuals, communities, and businesses to thrive in a
more sustainable world. Our plan is to cultivate repeat customers
and recurring revenues by deploying a multi-phased strategy,
initially where investment in the EV charging revolution is taking
place, the nation’s approximately 18,000 franchised auto
dealers.
To learn more about Charge, visit Charge Enterprises, Inc.
Notice Regarding Forward-Looking Information
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect
current expectations or beliefs regarding future events or Charge's
future performance. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
“potential”, "continues", "forecasts", "projects", "predicts",
"intends", "anticipates", "targets" or "believes", or variations
of, or the negatives of, such words and phrases or state that
certain actions, events or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved. All
forward-looking statements, including those herein, are qualified
by this cautionary statement. Although Charge believes that the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements involve risks and
uncertainties, and actual results may differ materially from any
future results expressed or implied by such forward-looking
statements. Such risks and uncertainties include the ability to
achieve the expected benefits of the Greenspeed acquisition,
including the risks that the Company’s synergy estimates are
inaccurate or that the Company faces higher than anticipated
integration or other costs in connection with the acquisition, the
business plans and strategies of Charge, Charge’s ability to
satisfy its debt payment obligations or extend the maturity or
refinance outstanding debt at or prior to maturity, Charge's future
business development, market acceptance of electric vehicles, the
success of Charge’s retail dealership initiative and the size,
scope and success of the related initial installation projects,
Charge's ability to generate profits and positive cash flow,
changes in government regulations and government incentives,
subsidies, or other favorable government policies, rising interest
rates and the impact on investments by our customers, and other
risks discussed in Charge's filings with the U.S. Securities and
Exchange Commission ("SEC"). Readers are cautioned that the
foregoing list of risks and uncertainties is not exhaustive of the
factors that may affect forward-looking statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. The forward-looking statements in this press release
speak only as of the date of this press release or as of the date
or dates specified in such statements. For more information on us,
investors are encouraged to review our public filings with the SEC,
including the factors described in the section captioned “Risk
Factors” of Charge’s Annual Report on Form 10-K filed with the SEC
on March 15, 2023, and Charge’s Quarterly Report on Form 10-Q to be
filed with the SEC on August 14, 2023, as well as subsequent
reports we file from time to time with the SEC which are available
on the SEC's website at www.sec.gov. Charge disclaims any intention
or obligation to update or revise any forward- looking information,
whether as a result of new information, future events or otherwise,
other than as required by law.
Notice Regarding Non-GAAP Measures
The press release includes both financial measures in accordance
with U.S. generally accepted accounting principles (“GAAP”), as
well as non-GAAP financial measures. These non-GAAP financial
measures are in addition to, and not a substitute for or superior
to, measures of financial performance prepared in accordance with
GAAP. See the Appendix for a reconciliation of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures. These non-GAAP financial measures may be different from
non-GAAP financial measures used by other companies.
APPENDIX
CHARGE ENTERPRISES,
INC.
CONSOLIDATED RESULTS OF
OPERATIONS
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Increase
% Increase
Increase
% Increase
(in thousands)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
Revenues:
Infrastructure
$
29,954
$
25,433
$
4,521
18
%
$
57,451
$
45,051
$
12,400
28
%
Telecommunications
117,632
155,608
(37,976
)
(24
%)
283,684
298,968
(15,284
)
(5
%)
Total revenues
147,586
181,041
(33,455
)
(18
%)
341,135
344,019
(2,884
)
(1
%)
Cost of Sales
139,838
174,767
(34,929
)
(20
%)
327,098
332,383
(5,285
)
(2
%)
Gross profit
7,748
6,274
1,474
23
%
14,037
11,636
2,401
21
%
General and administrative
5,433
6,452
(1,019
)
(16
%)
10,539
12,059
(1,520
)
(13
%)
Salaries and related benefits
9,156
7,799
1,357
17
%
18,283
15,747
2,536
16
%
Professional fees
446
848
(402
)
(47
%)
912
1,912
(1,000
)
(52
%)
Depreciation and amortization expense
1,192
1,103
89
8
%
2,402
1,312
1,090
83
%
Income (loss) from operations
(8,479
)
(9,928
)
1,449
15
%
(18,099
)
(19,394
)
1,295
7
%
Other income (expenses)
(125
)
(7,187
)
7,062
98
%
393
(9,120
)
9,513
104
%
Income tax (expense) benefit
(242
)
(45
)
(197
)
(438
%)
(352
)
1,328
(1,680
)
(127
%)
Net income (loss)
$
(8,846
)
$
(17,160
)
$
8,314
48
%
$
(18,058
)
$
(27,186
)
$
9,128
34
%
Infrastructure
CHARGE ENTERPRISES,
INC.
SEGMENT RESULTS OF
OPERATIONS
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Increase
% Increase
Increase
% Increase
(in thousands)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
Revenues
$
29,954
$
25,433
$
4,521
18
%
$
57,451
$
45,051
$
12,400
28
%
Cost of Sales
23,114
20,247
2,867
14
%
45,019
35,931
9,088
25
%
Gross profit
6,840
5,186
1,654
32
%
12,432
9,120
3,312
36
%
General and administrative
1,527
1,612
(85
)
(5
%)
2,933
2,746
187
7
%
Salaries and related benefits
4,733
4,066
667
16
%
9,883
8,147
1,736
21
%
Professional fees
75
81
(6
)
(7
%)
108
142
(34
)
(24
%)
Depreciation and amortization expense
1,183
1,062
121
11
%
2,373
1,227
1,146
93
%
Income (loss) from operations
(678
)
(1,635
)
957
59
%
(2,865
)
(3,142
)
277
9
%
Other income (expenses)
29
(365
)
394
108
%
175
(814
)
989
121
%
Income tax (expense) benefit
(242
)
15
(257
)
(1713
%)
(352
)
105
(457
)
(435
%)
Net income (loss)
$
(891
)
$
(1,985
)
$
1,094
55
%
$
(3,042
)
$
(3,851
)
$
809
21
%
Telecommunications
Three Months Ended June 30,
Six Months Ended June 30,
Increase
% Increase
Increase
% Increase
(in thousands)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
Revenues
$
117,632
$
155,608
$
(37,976
)
(24
%)
$
283,684
$
298,968
$
(15,284
)
(5
%)
Cost of Sales
116,724
154,520
(37,796
)
(24
%)
282,079
296,452
(14,373
)
(5
%)
Gross profit
908
1,088
(180
)
(17
%)
1,605
2,516
(911
)
(36
%)
General and administrative
598
566
32
6
%
1,163
1,163
-
0
%
Salaries and related benefits
293
229
64
28
%
525
607
(82
)
(14
%)
Professional fees
5
11
(6
)
(55
%)
25
36
(11
)
(31
%)
Depreciation and amortization expense
9
41
(32
)
(78
%)
29
85
(56
)
(66
%)
Income (loss) from operations
3
241
(238
)
(99
%)
(137
)
625
(762
)
(122
%)
Other income (expenses)
344
201
143
71
%
625
73
552
756
%
Income tax (expense) benefit
-
67
(67
)
(100
%)
-
252
(252
)
(100
%)
Net income (loss)
$
347
$
509
$
(162
)
(32
%)
$
488
$
950
$
(462
)
(49
%)
Non-Operating Corporate
Three Months Ended June 30,
Six Months Ended June 30,
Increase
% Increase
Increase
% Increase
(in thousands)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
2023
2022 (As Adjusted)
(Decrease)
(Decrease)
Revenues
$
-
$
-
$
-
$
-
$
-
$
-
Cost of Sales
-
-
-
-
-
-
Gross profit
-
-
-
-
-
-
General and administrative
3,308
4,274
(966
)
(23
%)
6,443
8,150
(1,707
)
(21
%)
Salaries and related benefits
4,130
3,504
626
18
%
7,875
6,993
882
13
%
Professional fees
366
756
(390
)
(52
%)
779
1,734
(955
)
(55
%)
Income (loss) from operations
(7,804
)
(8,534
)
730
9
%
(15,097
)
(16,877
)
1,780
11
%
Other income (expenses)
(498
)
(7,023
)
6,525
93
%
(407
)
(8,379
)
7,972
95
%
Income tax (expense) benefit
-
(127
)
127
100
%
-
971
(971
)
(100
%)
Net income (loss)
$
(8,302
)
$
(15,684
)
$
7,382
47
%
$
(15,504
)
$
(24,285
)
$
8,781
36
%
Charge Enterprises,
Inc.
Consolidated Balance
Sheets
(Unaudited)
June 30,
December 31,
In thousands, except share and per share
data
2023
2022 (As Adjusted)
Assets
Current assets
Cash and cash equivalents
$
50,142
$
26,837
Restricted cash
886
886
Accounts receivable net of allowances of
$184 in 2023 and $322 in 2022
74,036
72,405
Inventory
118
111
Deposits, prepaids and other current
assets
2,298
3,187
Investments in marketable securities
11,597
6,757
Investments in non-marketable
securities
236
236
Contract assets
7,290
6,090
Total current assets
146,603
116,509
Property, plant and equipment, net
553
732
Finance lease right-of-use asset
600
341
Operating lease right-of-use asset
3,323
4,028
Non-current assets
248
240
Goodwill
12,672
12,672
Intangible assets, net
31,865
33,932
Total Assets
195,864
168,454
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable
$
87,946
$
61,644
Accrued liabilities
7,801
11,121
Contract liabilities
24,765
13,741
Derivative liability
59
6,521
Finance lease liability
163
112
Operating lease liability
1,336
1,579
Current portion of long-term debt
26,136
29,180
Total current liabilities
148,206
123,898
Non-current liabilities
Finance lease liability, non-current
374
146
Operating lease liability, non-current
1,809
2,199
Net deferred tax liability
1,170
1,410
Total Liabilities
151,559
127,653
Mezzanine Equity
Series C Preferred Stock (6,226,370 shares
issued and outstanding at June 30, 2023, and December 31, 2022)
16,572
16,572
Total Mezzanine Equity
16,572
16,572
Commitments, contingencies and
concentration risk
Stockholders' Equity
Preferred stock, $0.0001 par value,
20,000,000 shares authorized;
Series D: 1,177,023 shares issued and
outstanding at June 30, 2023, and December 31, 2022
-
-
Series E: 3,200,000 shares issued and
outstanding at June 30, 2023, and 0 shares outstanding at December
31, 2022
-
-
Common stock, $0.0001 par value;
750,000,000 shares authorized 212,899,281 and 206,844,580 issued
and outstanding at June 30, 2023 and December 31, 2022,
respectively
21
20
Additional paid in capital
201,989
179,723
Accumulated other comprehensive income
(loss)
-
-
Accumulated deficit
(174,277
)
(155,514
)
Total Stockholders' Equity
27,733
24,229
Total Liabilities and Stockholders'
Equity
$
195,864
$
168,454
Charge Enterprises,
Inc.
Consolidated Statement of
Operations
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
In thousands, except per share data
2023
2022 (As Adjusted)
2023
2022 (As Adjusted)
Revenues
$
147,586
$
181,041
$
341,135
$
344,019
Cost of sales
139,838
174,767
327,098
332,383
Gross profit
7,748
6,274
14,037
11,636
Operating expenses
General and administrative
5,433
6,452
10,539
12,059
Salaries and related benefits
9,156
7,799
18,283
15,747
Professional fees
446
848
912
1,912
Depreciation and amortization expense
1,192
1,103
2,402
1,312
Total operating expenses
16,227
16,202
32,136
31,030
(Loss) from operations
(8,479
)
(9,928
)
(18,099
)
(19,394
)
Other income (expenses):
Income (loss) from investments, net
666
(973
)
962
(1,143
)
Change in fair value of derivative
liabilities
280
-
1,656
-
Interest expense
(1,488
)
(7,160
)
(3,026
)
(8,924
)
Loss on impairment
(58
)
-
(58
)
-
Other income (expense), net
637
776
1,028
1,034
Foreign exchange adjustments
(162
)
170
(169
)
(87
)
Total other income (expenses), net
(125
)
(7,187
)
393
(9,120
)
(Loss) before income taxes
(8,604
)
(17,115
)
(17,706
)
(28,514
)
Income tax (expense) benefit
(242
)
(45
)
(352
)
1,328
Net (loss)
$
(8,846
)
$
(17,160
)
$
(18,058
)
$
(27,186
)
Less: Deemed dividend
-
(32,841
)
-
(36,697
)
Less: Preferred dividends
(362
)
(353
)
(724
)
(620
)
Net (loss) available to common
stockholders
$
(9,208
)
$
(50,354
)
$
(18,782
)
$
(64,503
)
Basic income (loss) per share available to
common stockholders
$
(0.04
)
$
(0.26
)
$
(0.09
)
$
(0.34
)
Diluted income (loss) per share available
to common stockholders
$
(0.04
)
$
(0.26
)
$
(0.09
)
$
(0.34
)
Weighted average number of shares
outstanding, basic
212,858
193,508
209,974
190,966
Weighted average number of shares
outstanding, diluted
212,858
193,508
209,974
190,966
Charge Enterprises,
Inc.
Consolidated Statement of Cash
Flows
(Unaudited)
Six Months Ended June
30,
2023
2022 (As Adjusted)
In thousands
Cash flows from Operating
Activities:
Net loss
$
(18,058
)
$
(27,186
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Amortization
2,067
861
Depreciation
335
451
Stock-based compensation
10,866
14,228
Change in fair value of derivative
liabilities
(1,656
)
-
Amortization of debt discount
1,980
7,444
Loss on foreign currency exchange
169
87
Loss on impairment
58
-
Net loss (gain) from investments
(962
)
1,143
Other expense, net
(794
)
(855
)
Change in deferred income taxes
(219
)
(1,328
)
Changes in working capital
requirements:
Accounts receivable
(1,776
)
(1,856
)
Inventory
(6
)
(57
)
Deposits, prepaids and other current
assets
112
(304
)
Other assets / liabilities
124
(30
)
Contract assets
(1,200
)
(3,445
)
Accounts payable
26,477
27,162
Other current liabilities
186
1,062
Contract liabilities
11,024
(1,741
)
Net cash provided by operating
activities
28,727
15,636
Cash flows from Investing
Activities:
Acquisition of property, plant and
equipment
(102
)
(70
)
Sale of intellectual property
794
159
Purchase of marketable securities
(22,530
)
(43,255
)
Sale of marketable securities
18,612
34,901
Acquisition of EV Depot
1
(1,231
)
Cash acquired in acquisitions
-
104
Net cash provided by (used in) investing
activities
(3,225
)
(9,392
)
Cash flows from Financing
Activities:
Proceeds from sale of common stock
-
10,000
Proceeds from sale of Series C preferred
stock
-
10,845
Proceeds from issuance of Series E
preferred stock
1,600
-
Proceeds from exercise of warrants
2,200
1,072
Proceeds from exercise of stock
options
41
20
Draws from revolving line of credit
4,717
10,409
Payments on revolving line of credit
(9,741
)
(9,550
)
Payment on financing lease
(141
)
(102
)
Payment of dividends on preferred
stock
(724
)
(498
)
Net cash (used in) provided by financing
activities
(2,048
)
22,196
Effect of foreign exchange rate
changes
(149
)
(97
)
Net Increase in Cash and Cash
Equivalents
23,305
28,343
Cash, Cash Equivalents, and Restricted
Cash, Beginning of Period
27,723
18,238
Cash, Cash Equivalents, and Restricted
Cash, End of Period
$
51,028
$
46,581
Cash paid for interest expense
$
969
$
1,477
Cash paid for income taxes
$
718
$
-
Non-cash investing and financing
activities:
Issuance of common stock for
acquisition
$
-
$
17,530
Non-GAAP Measures
In this press release, the Company has supplemented the
presentation of its financial results calculated in accordance with
U.S. generally accepted accounting principles (“GAAP”) with the
following financial measures that are not calculated in accordance
with GAAP: EBITDA and Adjusted EBITDA. Management uses both GAAP
and non-GAAP measures to assist in making business decisions and
assessing overall performance. The Company’s measurement of these
non-GAAP financial measures may be different from similarly titled
financial measures used by others and therefore may not be
comparable. These non-GAAP financial measures should not be
considered superior to the GAAP measures in the tables included
within this material.
Certain information presented in this press release reflects
adjustments to GAAP measures such as EBITDA and Adjusted EBITDA as
an additional way of assessing certain aspects of the Company’s
operations that, when viewed with the GAAP financial measures,
provide a more complete understanding of its on-going business.
EBITDA is defined as income (loss) before interest, income taxes,
depreciation and amortization, and amortization of debt discount
and debt issue costs. Adjusted EBITDA represents EBITDA adjusted
for stock-based compensation, income (loss) from investments, net,
change in fair value of derivative liabilities, other (income)
expense, net, and foreign exchange adjustments.
As it related to future projections for the Company’s Adjusted
EBITDA described above, the Company has not provided guidance for
comparable GAAP measure or a quantitative reconciliation of
forward-looking non-GAAP financial measures because it is unable to
determine with reasonable certainty the ultimate outcome of certain
significant items necessary to calculate such measures without
unreasonable effort. These items include, but are not limited to
income or loss from investments, change in fair value of derivative
liabilities and foreign exchange adjustments.
CHARGE ENTERPRISES,
INC.
NON-GAAP
RECONCILIATION
Three months ended June
30,
Six months ended June
30,
($ in thousands)
2023
2022 (As Adjusted)
2023
2022 (As Adjusted)
Adjusted
EBITDA:
Net income (loss)
$
(8,846
)
(17,160
)
$
(18,058
)
(27,186
)
Income tax expense (benefit)
242
45
352
(1,328
)
Interest expense
1,488
7,160
3,026
8,924
Depreciation & Amortization
1,192
1,103
2,402
1,312
EBITDA
(5,924
)
(8,852
)
(12,278
)
(18,278
)
Adjustments:
Stock based compensation
4,964
7,223
10,866
14,647
(Income) loss from investments, net
(666
)
973
(962
)
1,143
Change in fair value of derivative
liabilities
(280
)
-
(1,656
)
-
Loss on impairment
58
-
58
-
Other (income) expense, net
(637
)
(776
)
(1,028
)
(1,034
)
Foreign exchange adjustments
162
(170
)
169
87
Adjusted EBITDA
$
(2,323
)
$
(1,602
)
$
(4,831
)
$
(3,435
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230814199166/en/
Investors Christine Cannella
(954) 298-6518 ccannella@charge.enterprises
Kevin McGrath (646) 418-7002 kevin@tradigitalir.com
Media: Kristopher Conesa
(305) 975-5934 kconesa@csuitepr.com
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