FAIRFIELD, Conn., Feb. 2, 2022 /PRNewswire/ --
Fourth Quarter Highlights:
- Expects Fourth Quarter Revenue of approximately $44 million
- Expects GAAP Net Loss of $(51)
to $(41) million, including a noncash
goodwill impairment charge related to the Support.com business of
$42 to $47
million
- Expects Adjusted EBITDA1 of $18 to $20
million
- Mined 609 bitcoin
- Mining capacity of approximately 1.4 EH/s from 17,300 miners
as of December 31, 2021
- $85 million of cash,
short-term investments and fair market value of cryptocurrency
holdings at year end
Full Year Highlights:
- Expects Full Year Revenue of approximately $107 million
- Expects GAAP Net Loss of $(54)
to $(44) million, including the
$42 to $47
million noncash goodwill impairment charge
- Expects Adjusted EBITDA1 of $51 to $54
million
- Mined 1,866 bitcoin
Greenidge Generation Holdings Inc. (NASDAQ: GREE) ("Greenidge")
today announced selected preliminary financial and operating
results for the three months and year ended December 31, 2021.
For the three months ended December 31,
2021, Greenidge expects to report revenues of approximately
$44 million, net loss in a range of
$(51) million to $(41) million, and Adjusted EBITDA in a range of
$18 million to $20 million. The net loss includes an estimated
noncash impairment of goodwill associated with the Support.com
business of $42 to $47 million. Cryptocurrency mining revenue is
expected to be approximately $34
million, Power and capacity revenue is expected to be
approximately $2 million, and
Services and other revenue is expected to be approximately
$8 million for the fourth quarter of
2021.
For the year ended December 31,
2021, Greenidge expects to report revenues of approximately
$107 million, net loss in a range of
$(54) million to $(44) million, including the previously mentioned
estimated $42 to $47 million noncash impairment of goodwill, and
Adjusted EBITDA in a range of $51
million to $54 million.
Cryptocurrency mining revenue is expected to be approximately
$88 million, Power and capacity
revenue is expected to be approximately $9
million, and Services and other revenue is expected to be
approximately $10 million for the
full year 2021.
Greenidge produced 609 and 1,866 bitcoin during the fourth
quarter and full year 2021, respectively. As of December 31, 2021, Greenidge had approximately
17,300 miners with approximately 1.4 EH/s of combined capacity.
Greenidge ended the year with $85
million of cash, short-term investments and fair market
value of cryptocurrency holdings, of which, less than $2 million was cryptocurrency holdings.
Preliminary Financial and Operating Results
The
preliminary financial and operating results set forth above for the
three months and year ended December 31,
2021 reflect preliminary estimates with respect to such
results based solely on currently available information, which is
subject to change. Readers are cautioned not to place undue
reliance on such preliminary results which are unaudited and
constitute forward-looking statements. Greenidge has not completed
its standard closing process, including the completion of all of
its controls procedures, which could identify adjustments causing
the actual results to be different from the expectations presented
in this release. Additionally, Greenidge has not completed its
impairment analysis associated with the acquisition of Support.com,
including the finalization of the valuation of the associated
assets and liabilities of Support.com and has not completed its
review of the tax implications of the merger and related costs.
Additionally, Greenidge has not completed its analyses of estimated
projections associated with its environmental liabilities and asset
retirement obligations, which may result in additional adjustments
to Greenidge's results. These estimates should not be viewed as a
substitute for Greenidge's full quarterly financial statements for
the three months ended December 31,
2021 and its audited financial statements for the year ended
December 31, 2021 which will be
prepared in accordance with U.S. GAAP. The financial results for
the year ended December 31, 2021 are
also subject to the completion of the audit of Greenidge's annual
financial statements.
About Greenidge Generation Holdings Inc.
Greenidge
Generation Holdings Inc. (NASDAQ: GREE) is a vertically
integrated cryptocurrency datacenter and power generation company.
Greenidge is committed to 100% carbon-neutral datacenter operations
at all of its locations by utilizing low-carbon sources of energy
and offsetting its carbon footprint. Greenidge currently operates a
vertically integrated facility in upstate New York and a facility in South
Carolina, which sources the majority of its electricity from
zero-carbon sources.
Forward-Looking Statements
This press release includes
certain statements that may constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are forward-looking statements for purposes of federal and state
securities laws. These forward-looking statements involve
uncertainties that could significantly affect Greenidge's financial
or operating results. These forward-looking statements may be
identified by terms such as "anticipate," "believe," "continue,"
"foresee," "expect," "intend," "plan," "may," "will," "would,"
"could," and "should," and the negative of these terms or other
similar expressions. Forward-looking statements are based on
current beliefs and assumptions that are subject to risks and
uncertainties and are not guarantees of future performance.
Forward-looking statements in this press release include, among
other things, statements regarding the business plan, business
strategy and operations of Greenidge in the future. In addition,
all statements that address operating performance and future
performance, events or developments that are expected or
anticipated to occur in the future, such as statements concerning
the preliminary financial and operating results for the three
months and year ended December 31,
2021, including the preliminary estimates of Greenidge's
fourth quarter and full year 2021 revenue and ranges of net loss
and Adjusted EBITDA, are forward-looking
statements. Forward-looking statements are subject to a number
of risks, uncertainties and assumptions. Matters and factors that
could cause actual results to differ materially from those
expressed or implied in such forward-looking statements include but
are not limited to the matters and factors described in Part II,
Item 1A. "Risk Factors" of Greenidge's Quarterly Reports on Form
10-Q, and its other filings with the Securities and Exchange
Commission, as well as statements about or relating to or otherwise
affected by: (i) the completion of management's final review of the
financial results and Greenidge's other closing procedures; the
completion of the audit of Greenidge's annual financial statements;
(iii) the ability to recognize the anticipated objectives and any
benefits, including the anticipated tax treatment, of the
acquisition of Support.com; (iv) changes in applicable laws,
regulations or permits affecting Greenidge's operations or the
industries in which it operates, including regulation regarding
power generation, cryptocurrency usage and/or cryptocurrency
mining; and (v) the potential of cryptocurrency market
manipulation. Consequently, all of the forward-looking statements
made in this press release are qualified by the information
contained under this caption. No assurance can be given that these
are all of the factors that could cause actual results to vary
materially from the forward-looking statements in this press
release. You should not put undue reliance on forward-looking
statements. No assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do occur, the actual results, performance,
or achievements of Greenidge could differ materially from the
results expressed in, or implied by, any forward-looking
statements. All forward-looking statements speak only as of the
date of this press release and Greenidge does not assume any duty
to update or revise any forward-looking statements included in this
press release, whether as a result of new information, the
occurrence of future events, uncertainties or otherwise, after the
date of this press release.
Non-GAAP Financial Measures
From time to time
Greenidge utilizes certain financial measures that are not prepared
or calculated in accordance with GAAP to assess financial
performance and profitability.
"EBITDA" is defined as earnings before interest, taxes, and
depreciation and amortization. "Adjusted EBITDA" is defined as
EBITDA adjusted for stock-based compensation and other special
items determined by management, including, but not limited to,
acquisition related expenses, business development, fair value
adjustments for certain financial liabilities (including asset
retirement obligations), costs associated with debt and equity
transactions, and impairment charges as they are not indicative of
business operations. Adjusted EBITDA is intended as a supplemental
measure of Greenidge's performance that is not presented in
accordance with GAAP. Greenidge believes 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
its 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, Greenidge may incur future expenses similar to
those excluded when calculating these measures. In addition,
Greenidge's presentation of these measures should not be construed
as an inference that its future results will be unaffected by
unusual or non-recurring items. Greenidge's 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. Greenidge compensates
for these limitations by relying primarily on its 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 Greenidge's business.
The following table reconciles the expected ranges of net loss
to the expected ranges of EBITDA and Adjusted EBITDA for the three
months and year ended December 31,
2021 (in millions, unaudited):
|
Three Months
Ended
December 31, 2021
|
|
Year Ended
December 31, 2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net loss
|
$ (51)
|
|
$ (41)
|
|
$ (54)
|
|
$ (44)
|
Provision for income
taxes
|
8
|
|
7
|
|
4
|
|
3
|
Interest expense,
net
|
2
|
|
2
|
|
4
|
|
4
|
Depreciation and
amortization
|
3
|
|
3
|
|
9
|
|
9
|
EBITDA
|
$ (38)
|
|
$ (29)
|
|
$ (37)
|
|
$ (28)
|
Stock-based
compensation
|
2
|
|
2
|
|
4
|
|
4
|
Impairment of
goodwill (1)
|
47
|
|
42
|
|
47
|
|
42
|
Merger and other
costs (2)
|
1
|
|
1
|
|
32
|
|
32
|
Expansion costs
(3)
|
2
|
|
2
|
|
2
|
|
2
|
ARO, environmental
and other (4)
|
4
|
|
2
|
|
3
|
|
2
|
Adjusted
EBITDA
|
$ 18
|
|
$ 20
|
|
$ 51
|
|
$ 54
|
|
|
(1)
|
Greenidge has not yet
completed its impairment analysis associated with the acquisition
of Support.com but has included a range of estimates based on
initial analyses. The final impairment amount may vary based on a
number of factors including the finalization of the valuation of
the associated assets and liabilities of Support.com.
|
(2)
|
Merger and other
costs are associated with the merger with Support.com and
non-recurring charges associated with the issuance of equity
instruments that were contingent upon closure of the merger, as
well as legal and other professional fees associated with the
merger and becoming a public company.
|
(3)
|
Expansion costs are
costs associated with Greenidge's expansion into its property in
South Carolina and studies associated with potential expansion
opportunities in Texas.
|
(4)
|
ARO &
environmental adjustments are associated with the remeasurement of
asset retirement obligations and environmental liabilities
associated with updated projections of costs.
|
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SOURCE Greenidge Generation Holdings Inc.