ATLANTA, May 9, 2023
/PRNewswire/ -- KORE Group Holdings,
Inc. (NYSE: KORE, KORE WS) ("KORE"
or the "Company"), the global pure-play Internet of Things ("IoT")
hyperscaler, and provider of IoT Connectivity, Solutions and
Analytics, today reported financial and operational results for the
quarter ended March 31, 2023.
KORE: Company Highlights
- First quarter 2023 revenue of $66.0
million increased 5.7% sequentially from the fourth quarter
of 2022 and was ahead of expectations, primarily due to stronger
than expected growth in our Connected Health vertical and
sequential growth of 19.7% in IoT Solutions revenue.
- Gross margin in first quarter 2023 increased over 500 basis
points to 54.0% versus 48.9% in the first quarter of 2022 and was
up slightly on a sequential basis from fourth quarter 2022 due to
improved carrier optimization, the absence of LTE transition
project revenue from our largest customer, and lower hardware
sales.
- KORE's sales funnel, which KORE defines as opportunities the
KORE sales team is actively pursuing for new business, now includes
over 1,400 opportunities with an estimated potential Total Contract
Value (TCV)1 of over $500
million, a 15% sequential increase from fourth quarter 2022
estimated potential TCV of $434
million.
- KORE's eSIM solution, OmniSIM™ SAFE was selected as a winner of
the M2M Product of the Year by IoT Breakthrough. OmniSIM SAFE pairs
global zero-touch provisioning capabilities with our
industry-leading eSIM secured by the GSMA SAFE standards. This
allows KORE customers to meet the challenge of global connectivity
in a carrier and device agnostic, secure manner for Massive IoT use
cases.
- The Company is maintaining its 2023 revenue
guidance2 of a range of $300
million to $310 million and
maintaining adjusted EBITDA, a non-GAAP metric3,
guidance of $60 million to
$62 million.
"We are off to a solid start to the year with first quarter
revenue increasing sequentially from the fourth quarter and coming
in above our expectations. We expect continued quarterly sequential
growth through the remainder of 2023 and beyond, and year-over-year
revenue growth to begin in the second half of 2023, as we will no
longer face difficult comparisons from the one-time transitory
items we have previously discussed," said Romil Bahl, President and CEO of KORE. "Our
global sales pipeline continues to increase both in the number of
opportunities and TCV dollars, and our acquisition of Twilio's IoT
business is on track. With this backdrop, we remain confident in
our 2023 revenue and adjusted EBITDA guidance."
Financial Performance for First Quarter 2023, Compared to the
Same Period of 2022:
- Total revenue decreased by 4.4% to $66.0
million, compared to $69.0
million. In Q1 2022, KORE had a significant amount of 2G/3G
revenue and LTE transition project revenue from our largest
customer. The LTE project revenue alone was approximately
$8.6 million, which, as expected, did
not repeat in Q1 2023. Excluding LTE transition project revenue,
normalized revenue increased by 9.0%.
- IoT Connectivity revenue of $43.5
million declined by 1.3% compared to $44.1 million in the first quarter of 2022, which
was the highest Non-Core customer and 2G/3G revenue quarter in
2022, making for a difficult comparison. Excluding Non-Core
customers, IoT Connectivity revenue increased 7.0%.
- IoT Solutions revenue declined by 9.7% to $22.4 million, compared to $24.8 million one year ago as this segment also
faced a difficult year-over-year comparison, owing to the one-time
LTE transition engagement at our largest customer. Excluding this
one-time revenue, IoT Solutions revenue increased approximately 35%
year-over-year.
- Net loss increased to $18.5
million, or $0.24 per share,
compared to $11.6 million, or
$0.16 per share, one year ago. The
primary drivers for the increase in net loss were an increase in
SG&A, including non-recurring additional audit and accounting
costs of approximately $1.0 million,
and a $3.6 million increase in
interest expense.
- Adjusted EBITDA decreased by 12.8% to $13.3 million, compared to $15.3 million one year ago. The key drivers of
the decline were increased headcount costs to invest in the
Company's growth and to enhance public company processes and
systems, including SOX compliance. Additionally, and as mentioned
above, the Company incurred higher-than-normal, non-recurring
professional fees associated with the 2022 year-end audit
process.
The tables below summarize our revenue and specific key
metrics:
|
Three months ended
March 31,
|
(In thousands,
USD)4
|
2023
|
|
2022
|
IoT
Connectivity
|
$
43,545
|
|
66 %
|
|
$
44,135
|
|
64 %
|
IoT
Solutions
|
22,430
|
|
34 %
|
|
24,843
|
|
36 %
|
Total
Revenue
|
$
65,975
|
|
100 %
|
|
$
68,978
|
|
100 %
|
Period End Total
Connections5
|
15.1
million
|
|
15.3
million
|
Average Total
Connections for the Period
|
15.1
million
|
|
15.1
million
|
First Quarter 2023 Key Metrics and Business Successes
- KORE's Total Connections were approximately 15.1 million as of
March 31, 2023, a sequential increase
of approximately 100,000 connections from the fourth quarter of
2022.
- DBNER6 was 107% for the twelve-month period ending
March 31, 2023, compared to 122% for
the twelve months ending March 31,
2022. Excluding our largest customer, DBNER was 126% vs.
114%.
- KORE added $28 million of new
business TCV in the first quarter, and the Company's new business
sales funnel now includes over 1,400 opportunities with an
estimated potential TCV of $501
million as of March 31,
2023.
- KORE launched MODGo™, a SaaS solution that provides visibility
across IoT device deployment and helps manage logistics. In effect,
MODGo makes it easy to Manage, Order, and Deploy IoT on the Go,
providing organizations with a single solution for managing their
entire IoT ecosystem.
- KORE was named a Leader in the 2023 Gartner Magic Quadrant for
Managed IoT Connectivity Services for the fourth consecutive
year.
- KORE had several notable new business wins in the first quarter
including:
-
- KORE was selected by a leader in the advertising technology
market for its OmniSIM technology. KORE's unique eSIM solution
resulted in the customer transferring 100% of its North American
business to KORE, adding over $10
million in TCV.
- KORE secured an approximately $2
million TCV contract to provide a comprehensive set of
hardware, connectivity services, and forward and reverse logistics
managed services to a new remote patient monitoring (RPM)
customer.
- KORE will provide fixed wireless access services to a major
restaurant chain with over 700 locations and will upgrade these
locations to 5G technology as part of a contract with a TCV of over
$1 million, and KORE has the
potential to add an additional approximately $1 million in TCV for IoT Managed Services at the
same customer.
Maintaining 2023 Financial Outlook
For the twelve months ending December 31,
2023, assuming that the acquisition of Twilio's IoT business
unit closes on June 1, 2023, the
Company continues to expect the following:
- Revenue in the range of $300
million to $310 million;
and
- Adjusted EBITDA in the range of $60
million to $62 million,
representing a margin of approximately 20%.
Bahl concluded, "We have kicked off 2023 by continuing to
deliver on our commitments. As I look to the remainder of the year,
I am encouraged by our growth story becoming evident and our
innovative product introductions such as OmniSIM and, most
recently, MODGo, continuing to differentiate KORE from our
competitors. I am also excited by the prospect of having Twilio's
IoT business become a part of KORE. As a global pure play provider
of IoT connectivity, solutions, and analytics with over 80%
recurring revenue and a robust and growing sales pipeline against a
backdrop of increasing IoT adoption, KORE is well-positioned to
grow through this decade of IoT."
Conference Call Details
KORE management will hold a conference call today (May 9, 2023) 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: 13732888
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, 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 KORE
investor relations at (678) 392-2386. A replay of the conference
call will be available approximately three hours after the
conference call end time and may be accessed by calling (877)
660-6853 or (201) 612-7415 using access code 13732888.
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 March 31, 2023, we
divide (i) revenue, for the trailing 12 months ended March 31, 2023, from go-forward customers that
started generating revenue on or before March 31, 2022, by (ii) revenue, for the trailing
12 months ended March 31, 2022, 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 March 31, 2023, and
March 31, 2022, 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.
Total Contract Value (TCV)
Total Contract Value (TCV) represents KORE's estimated value of
a revenue opportunity. TCV for an IoT Connectivity opportunity is
calculated by multiplying by forty the estimated revenue expected
to be generated during the twelfth month of production. TCV for an
IoT Solutions opportunity is either the actual total expected
revenue opportunity, or if it is a longer-term "programmatically
recurring revenue" program, calculated for the first 36 months of
the delivery period.
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," "target" 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 the proposed acquisition of Twilio's IoT
business and its expected consummation, as well as its timing and
benefits, estimates and forecasts of revenue, adjusted EBITDA and
other financial and performance metrics, future capital
availability, projections regarding recent customer engagements,
projections of market opportunity and conditions, the total
contract value (TCV) of signed contracts and potential revenue
opportunities in KORE's sales funnel, 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 the expected
acquisition of Twilio's IoT business, changes in the assumptions
underlying KORE's expectations regarding its future business; our
ability to negotiate and sign a definitive contract with a customer
in our sales funnel; our ability to realize some or all of the TCV
of customer contracts as revenue, including any contractual options
available to customers or contractual periods that are subject to
termination for convenience provisions; 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.
KORE Investor
Contact:
|
KORE Media
Contact:
|
Charley
Brady
|
Alisa
Moloney
|
Vice President,
Investor Relations
|
Senior Director of
Marketing
|
cbrady@korewireless.com
|
amoloney@korewireless.com
|
+1-678-392-2386
|
+1-678-367-0658
|
1
|
See "Key Metrics"
below for more information.
|
2
|
2023 Revenue and
Adjusted EBITDA guidance assumes the acquisition of Twilio's IoT
business will close on June 1, 2023.
|
3
|
See "Non-GAAP
Financial Measures" and "Reconciliation of Net Loss to EBITDA to
Adjusted EBITDA: below for more information.
|
4
|
Except for Total
Connections
|
5
|
Period end
connections in Q1'22 included approximately 0.4 million connections
related to Non-Core customers, which no longer contribute to
revenue at the end of Q1'23.
|
6
|
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)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
Services
|
$
47,550
|
|
$
47,543
|
Products
|
18,425
|
|
21,435
|
Total
revenue
|
65,975
|
|
68,978
|
Cost of
revenue
|
|
|
|
Cost of
services
|
16,543
|
|
17,550
|
Cost of
products
|
13,774
|
|
17,723
|
Total cost of
revenue (exclusive of depreciation and amortization shown
separately below)
|
30,317
|
|
35,273
|
Operating
expenses
|
|
|
|
Selling, general and
administrative
|
30,200
|
|
27,717
|
Depreciation and
amortization
|
14,125
|
|
13,175
|
Total operating
expenses
|
44,325
|
|
40,892
|
Operating
loss
|
(8,667)
|
|
(7,187)
|
Interest expense,
including amortization of deferred financing costs, net
|
10,195
|
|
6,624
|
Change in fair value
of warrant liability
|
(3)
|
|
(27)
|
Loss before income
taxes
|
(18,859)
|
|
(13,784)
|
Income tax
benefit
|
(369)
|
|
(2,212)
|
Net
loss
|
$
(18,490)
|
|
$
(11,572)
|
Loss per
share:
|
|
|
|
Basic
|
$
(0.24)
|
|
$
(0.16)
|
Diluted
|
$
(0.24)
|
|
$
(0.16)
|
Weighted average
number of shares outstanding:
|
|
|
|
Basic
|
76,524,735
|
|
74,040,261
|
Diluted
|
76,524,735
|
|
74,040,261
|
KORE Group Holdings,
Inc. and Subsidiaries
Consolidated
Balance Sheets
(In thousands USD,
except share and per share amounts)
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
30,600
|
|
$
34,645
|
Accounts receivable,
net respectively
|
48,055
|
|
44,538
|
Inventories,
net
|
8,774
|
|
10,051
|
Income taxes
receivable
|
424
|
|
502
|
Prepaid expenses and
other current assets
|
12,625
|
|
13,484
|
Total current
assets
|
100,478
|
|
103,220
|
Non-current
assets
|
|
|
|
Restricted
cash
|
361
|
|
362
|
Property and
equipment, net
|
12,137
|
|
11,899
|
Intangibles assets,
net
|
183,252
|
|
192,504
|
Goodwill
|
369,870
|
|
369,706
|
Operating lease
right-of-use assets
|
9,501
|
|
10,019
|
Deferred tax
assets
|
54
|
|
55
|
Other long-term
assets
|
876
|
|
971
|
Total
assets
|
$
676,529
|
|
$
688,736
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
23,264
|
|
$
17,835
|
Accrued
liabilities
|
15,850
|
|
15,793
|
Current portion of
operating lease liabilities
|
1,649
|
|
1,811
|
Income taxes
payable
|
1,212
|
|
207
|
Deferred
revenue
|
7,732
|
|
7,817
|
Current portion of
long-term debt and other borrowings, net
|
5,370
|
|
5,345
|
Total current
liabilities
|
55,077
|
—
|
48,808
|
Non-current
liabilities
|
|
|
|
Deferred tax
liabilities
|
23,272
|
|
25,248
|
Warrant
liability
|
30
|
|
33
|
Non-current portion of
operating lease liabilities
|
8,961
|
|
9,275
|
Long-term debt and
other borrowings, net
|
413,090
|
|
413,910
|
Other long-term
liabilities
|
11,404
|
|
10,790
|
Total
liabilities
|
$
511,834
|
|
$
508,064
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock, voting;
par value $0.0001 per share; 315,000,000 shares authorized,
76,289,741 and 72,027,743 shares issued and outstanding at March
31, 2023 and
December 31, 2022, respectively
|
$
8
|
|
$
8
|
Additional paid-in
capital
|
$
437,677
|
|
435,292
|
Accumulated other
comprehensive loss
|
$
(6,262)
|
|
(6,390)
|
Accumulated
deficit
|
(266,728)
|
|
(248,238)
|
Total stockholders'
equity
|
164,695
|
|
180,672
|
Total liabilities
and stockholders' equity
|
$
676,529
|
|
$
688,736
|
KORE Group Holdings,
Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(In thousands USD)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2023
|
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
|
Net loss
|
$
|
(18,490)
|
|
$
|
(11,572)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities
|
|
|
|
|
|
Depreciation and
amortization
|
|
14,125
|
|
|
13,175
|
Amortization of
deferred financing costs
|
|
625
|
|
|
587
|
Non-cash reduction to
the operating lease right-of-use assets
|
|
539
|
|
|
587
|
Deferred income
taxes
|
|
(1,994)
|
|
|
(3,296)
|
Non-cash foreign
currency loss (gain)
|
|
(395)
|
|
|
(3)
|
Stock-based
compensation
|
|
2,570
|
|
|
2,050
|
Allowance for credit
losses
|
|
(129)
|
|
|
55
|
Change in fair value
of warrant liability
|
|
(3)
|
|
|
(27)
|
Change in operating
assets and liabilities, net of operating assets and liabilities
acquired:
|
|
|
|
|
|
Accounts
receivable
|
|
(3,227)
|
|
|
(2,635)
|
Inventories
|
|
1,302
|
|
|
4,994
|
Prepaid expenses and
other current assets
|
|
926
|
|
|
1,591
|
Accounts payable and
accrued liabilities
|
|
5,589
|
|
|
(8,511)
|
Deferred
revenue
|
|
(108)
|
|
|
132
|
Income taxes
payable
|
|
1,079
|
|
|
(213)
|
Operating lease
liabilities
|
|
(496)
|
|
|
(894)
|
Net cash provided by
(used in) operating activities
|
$
|
1,912
|
|
$
|
(3,980)
|
Cash flows used in
investing activities
|
|
|
|
|
|
Additions to
intangible assets
|
|
(3,814)
|
|
|
(2,790)
|
Additions to property
and equipment
|
|
(1,025)
|
|
|
(635)
|
Payments for
acquisitions, net of cash acquired
|
|
—
|
|
|
(45,078)
|
Net cash used in
investing activities
|
$
|
(4,839)
|
|
$
|
(48,503)
|
Cash flows from
financing activities
|
|
|
|
|
|
Repayment of term
loan
|
|
(788)
|
|
|
(788)
|
Repayment of other
borrowings—notes payable
|
|
(536)
|
|
|
(118)
|
Equity financing
fees
|
|
—
|
|
|
(126)
|
Payment of deferred
financing costs
|
|
—
|
|
|
(452)
|
Payment of financing
lease obligations
|
|
—
|
|
|
(66)
|
Net cash used in
financing activities
|
$
|
(1,324)
|
|
$
|
(1,550)
|
Effect of exchange
rate changes on cash
|
|
202
|
|
|
(26)
|
Change in cash and
restricted cash
|
|
(4,049)
|
|
|
(54,059)
|
Cash and restricted
cash, beginning of period
|
|
35,007
|
|
|
86,343
|
Cash and restricted
cash, end of period
|
$
|
30,961
|
|
$
|
32,284
|
KORE Group Holdings,
Inc. and Subsidiaries
RECONCILIATION OF
NET LOSS TO EBITDA TO ADJUSTED EBITDA
(In thousands USD)
(unaudited)
|
|
|
Three months ended
March 31,
|
(In thousands,
USD)
|
2023
|
|
2022
|
Net
loss
|
$
(18,490)
|
|
$
(11,572)
|
Income tax
benefit
|
(369)
|
|
(2,212)
|
Interest
expense
|
10,195
|
|
6,624
|
Depreciation and
amortization
|
14,125
|
|
13,175
|
EBITDA
|
5,461
|
|
6,015
|
Change in Fair value
of warrant liability (non-cash)
|
(3)
|
|
(27)
|
Transformation
expenses
|
1,864
|
|
1,565
|
Acquisition and
integration-related restructuring costs
|
3,207
|
|
5,293
|
Stock-based
compensation (non-cash)
|
2,570
|
|
2,050
|
Foreign currency loss
(non-cash)
|
112
|
|
(3)
|
Other
|
117
|
|
395
|
Adjusted
EBITDA
|
$
13,328
|
|
$
15,288
|
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SOURCE KORE Wireless