| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 5 | | | |
| | | | | 20 | | | |
| | | | | 40 | | | |
| | | | | 79 | | | |
| | | | | 81 | | | |
| | | | | 87 | | | |
| | | | | 103 | | | |
| | | | | 105 | | | |
| | | | | 146 | | | |
| | | | | 149 | | | |
| | | | | 155 | | | |
| | | | | 157 | | | |
| | | | | 162 | | | |
| | | | | 167 | | | |
| | | | | 171 | | | |
| | | | | 172 | | | |
| | | | | 174 | | | |
| | | | | 184 | | | |
| | | | | 185 | | | |
| | | | | 189 | | | |
| | | | | 201 | | | |
| | | | | 204 | | | |
| | | | | 209 | | | |
| | | | | 211 | | | |
| | | | | 228 | | | |
| | | | | 232 | | | |
| | | | | 237 | | | |
| | | | | 241 | | | |
| | | | | 242 | | | |
| | | | | 245 | | | |
| | | | | 252 | | | |
| | | | | 253 | | | |
| | | | | 254 | | | |
| | | | | 255 | | | |
| | | | | F-1 | | |
| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | | |
| | | | | E-1 | | | |
| | | | | F-1 | | | |
| | | | | G-1 | | | |
| | | | | H-1 | | |
|
Assuming No
Redemptions |
| |
Assuming 25%
Redemptions |
| |
Assuming 50%
Redemptions |
| |
Assuming 75%
Redemptions |
| |
Assuming Maximum
Redemptions |
| |||||||||||||||
|
(Shares)
|
| |
Fee as a %
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a %
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a %
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a %
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a %
of IPO Proceds (net of Redemptions) |
|
|
11,500,000
|
| |
3.5%
|
| |
8,625,000
|
| |
4.7%
|
| |
5,750,000
|
| |
7.0%
|
| |
2,875,000
|
| |
100.0%
|
| |
0
|
| |
100.0%
|
|
|
Assuming No
Redemptions |
| |
Assuming 25%
Redemptions |
| |
Assuming 50%
Redemptions |
| |
Assuming 75%
Redemptions |
| |
Assuming Maximum
Redemptions |
| ||||||||||||||||||||||||||||||||||||||||||
|
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |||||||||||||||||||||||||||
| 11,500,000 | | | | | 3.5% | | | | | | 8,625,000 | | | | | | 4.7% | | | | | | 5,750,000 | | | | | | 7.0% | | | | | | 2,875,000 | | | | | | 100.0% | | | | | | 0 | | | | | | 100.0% | | |
Assuming
No Redemptions |
| |
Assuming
25% Redemptions |
| |
Assuming
50% Redemptions |
| |
Assuming
75% Redemptions |
| |
Assuming
Maximum Redemptions |
| ||||||||||||||||||||||||||||||||||||||||||
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |||||||||||||||||||||||||||
11,500,000
|
| | | | 3.5% | | | | | | 8,625,000 | | | | | | 4.7% | | | | | | 5,750,000 | | | | | | 7.0% | | | | | | 2,875,000 | | | | | | 100.0% | | | | | | 0 | | | | | | 100.0% | | |
| | |
Per Share
Value |
| |||
Trust Account fair value as of September 30,2021
|
| | | | 115,007,452 | | |
Total Public Shares
|
| | | | 11,500,000 | | |
Trust Account value per Public Share
|
| | | $ | 10.00 | | |
| | |
No
Redemptions |
| |
25%
Redemptions |
| |
50%
Redemptions |
| |
75%
Redemptions |
| |
Maximum
Redemptions |
| |||||||||||||||
Total Held in Trust
|
| | | $ | 115,007,452 | | | | | $ | 115,007,452 | | | | | $ | 115,007,452 | | | | | $ | 115,007,452 | | | | | $ | 115,007,452 | | |
Redemptions
|
| | | $ | — | | | | | $ | 28,751,863 | | | | | $ | 57,503,726 | | | | | $ | 86,255,589 | | | | | $ | 115,007,452 | | |
Cash left in Trust Account Post Redemptions
|
| | | $ | 115,007,452 | | | | | $ | 86,255,589 | | | | | $ | 57,503,726 | | | | | $ | 28,751,863 | | | | | $ | — | | |
Proceeds from Pre-PIPE Investment
|
| | | $ | 44,400,000 | | | | | $ | 44,400,000 | | | | | $ | 44,400,000 | | | | | $ | 44,400,000 | | | | | $ | 44,400,000 | | |
Proceeds from PIPE
Investment |
| | | $ | 43,100,000 | | | | | $ | 43,100,000 | | | | | $ | 43,100,000 | | | | | $ | 43,100,000 | | | | | $ | 43,100,000 | | |
Proceeds from Convertible Notes
Investment |
| | | $ | 93,042,500 | | | | | $ | 100,542,500 | | | | | $ | 108,042,500 | | | | | $ | 115,542,500 | | | | | $ | 123,042,500 | | |
Expenses from Pre-PIPE Investment, PIPE Investment, and Convertible Notes Investment
|
| | | $ | 12,060,850 | | | | | $ | 12,210,850 | | | | | $ | 12,360,850 | | | | | $ | 12,510,850 | | | | | $ | 12,660,850 | | |
Net Poceeds from Pre-PIPE, PIPE Investments and Convertible Notes Investment
|
| | | $ | 168,481,650 | | | | | $ | 175,831,650 | | | | | $ | 183,181,650 | | | | | $ | 190,531,650 | | | | | $ | 197,881,650 | | |
Cash left in Trust Account post redemptions plus Net Pre-PIPE, PIPE Investment and Convertible Notes proceeds
|
| | | $ | 283,489,102 | | | | | $ | 262,087,239 | | | | | $ | 240,685,376 | | | | | $ | 219,283,513 | | | | | $ | 197,881,650 | | |
Public Shares
|
| | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 11,500,000 | | |
Redemptions
|
| | | | — | | | | | | 2,875,000 | | | | | | 5,750,000 | | | | | | 8,625,000 | | | | | | 11,500,000 | | |
Public Shares Post
Redemptions |
| | | | 11,500,000 | | | | | | 8,625,000 | | | | | | 5,750,000 | | | | | | 2,875,000 | | | | | | — | | |
Pre-PIPE, PIPE and Convertible
Note Shares |
| | | | 21,123,563 | | | | | | 21,873,563 | | | | | | 22,623,563 | | | | | | 23,373,563 | | | | | | 24,123,563 | | |
Public Shares post redemptions plus Pre-PIPE, PIPE Shares and Convertible Notes Shares
|
| | | | 32,623,563 | | | | | | 30,498,563 | | | | | | 28,373,563 | | | | | | 26,248,563 | | | | | | 24,123,563 | | |
Per share value(1)
|
| | | | 8.69 | | | | | | 8.59 | | | | | | 8.48 | | | | | | 8.35 | | | | | | 8.2 | | |
| | |
Value of Non-Redeemed Shares
|
| |||||||||||||||||||||||||||
Per share value
|
| | | $ | 8.69 | | | | | $ | 8.59 | | | | | $ | 8.48 | | | | | $ | 8.35 | | | | | $ | 8.2 | | |
Value of one-quarter of one redeemable warrant held by Public Stockholders(2)
|
| | | $ | 1.19 | | | | | $ | 1.19 | | | | | $ | 1.19 | | | | | $ | 1.19 | | | | | $ | 1.19 | | |
Total value of non-redeemed
share |
| | | $ | 9.88 | | | | | $ | 9.78 | | | | | $ | 9.67 | | | | | $ | 9.54 | | | | | $ | 9.39 | | |
| | |
No
Redemptions |
| |
25%
Redemptions |
| |
50%
Redemptions |
| |
75%
Redemptions |
| |
Maximum
Redemptions |
| |||||||||||||||
| | |
Value of Redeemed Shares
|
| |||||||||||||||||||||||||||
Per share value
|
| | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 10.00 | | |
Value of one-quarter of one redeemable warrant held by Public Stockholders(2)
|
| | | $ | 1.19 | | | | | $ | 1.19 | | | | | $ | 1.19 | | | | | $ | 1.19 | | | | | $ | 1.19 | | |
Total value of redeemed share
|
| | | $ | 11.19 | | | | | $ | 11.19 | | | | | $ | 11.19 | | | | | $ | 11.19 | | | | | $ | 11.19 | | |
| | |
No
Redemptions |
| |
%
Ownership |
| |
25%
Redemptions |
| |
%
Ownership |
| |
50%
Redemptions |
| |
%
Ownership |
| |
75%
Redemptions |
| |
%
Ownership |
| |
Maximum
Redemptions |
| |
%
Ownership |
| ||||||||||||||||||||||||||||||
Current Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Shares issued in IPO
|
| | | | 11,500,000 | | | | | | 16.35% | | | | | | 11,500,000 | | | | | | 17.40% | | | | | | 11,500,000 | | | | | | 17.40% | | | | | | 11,500,000 | | | | | | 17.40% | | | | | | 11,500,000 | | | | | | 17.40% | | |
Redemptions in connection with the Business Combination
|
| | | | — | | | | | | — | | | | | | 2,875,000 | | | | | | 4.21% | | | | | | 5,750,000 | | | | | | 8.70% | | | | | | 8,625,000 | | | | | | 13.48% | | | | | | 11,500,000 | | | | | | 18.60% | | |
Shares held by Public
Stockholders post-redemptions |
| | | | 11,500,000 | | | | | | 16.35% | | | | | | 8,625,000 | | | | | | 13.05% | | | | | | 5,750,000 | | | | | | 8.70% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 0 | | | | | | 0.00% | | |
Founder Shares issued to Initial
Stockholders pre-IPO |
| | | | 2,875,000 | | | | | | 4.09% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 2,875,000 | | | | | | 4.35% | | |
Private Shares issued to Initial Stockholders at close of IPO
|
| | | | 408,000 | | | | | | 0.58% | | | | | | 408,000 | | | | | | 0.62% | | | | | | 408,000 | | | | | | 0.62% | | | | | | 408,000 | | | | | | 0.62% | | | | | | 408,000 | | | | | | 0.62% | | |
| | |
No
Redemptions |
| |
%
Ownership |
| |
25%
Redemptions |
| |
%
Ownership |
| |
50%
Redemptions |
| |
%
Ownership |
| |
75%
Redemptions |
| |
%
Ownership |
| |
Maximum
Redemptions |
| |
%
Ownership |
| ||||||||||||||||||||||||||||||
Shares issued in connection with
the Business Combination and assumed exercise of warrants |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common Stock issued
to current QualTek equityholders |
| | | | 12,682,382 | | | | | | 18.03% | | | | | | 12,682,382 | | | | | | 19.19% | | | | | | 12,682,382 | | | | | | 19.19% | | | | | | 12,682,382 | | | | | | 19.19% | | | | | | 12,682,382 | | | | | | 19.19% | | |
Class B Common Stock issued to current QualTek equityholders
|
| | | | 18,775,672 | | | | | | 26.69% | | | | | | 18,775,672 | | | | | | 28.41% | | | | | | 18,775,672 | | | | | | 28.41% | | | | | | 18,775,672 | | | | | | 28.41% | | | | | | 18,775,672 | | | | | | 28.41% | | |
Pre-PIPE Shares
|
| | | | 6,937,500 | | | | | | 9.86% | | | | | | 6,937,500 | | | | | | 10.50% | | | | | | 6,937,500 | | | | | | 10.50% | | | | | | 6,937,500 | | | | | | 10.50% | | | | | | 6,937,500 | | | | | | 10.50% | | |
PIPE Shares
|
| | | | 4,881,813 | | | | | | 6.94% | | | | | | 4,881,813 | | | | | | 7.39% | | | | | | 4,881,813 | | | | | | 7.39% | | | | | | 4,881,813 | | | | | | 7.39% | | | | | | 4,881,813 | | | | | | 7.39% | | |
Convertible Note Shares
|
| | | | 9,304,250 | | | | | | 13.23% | | | | | | 10,054,250 | | | | | | 15.21% | | | | | | 10,804,250 | | | | | | 16.35% | | | | | | 11,554,250 | | | | | | 17.48% | | | | | | 12,304,250 | | | | | | 18.62% | | |
Shares Underlying Public Warrants
|
| | | | 2,875,000 | | | | | | 4.09% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 2,875,000 | | | | | | 4.35% | | | | | | 2,875,000 | | | | | | 4.35% | | |
Shares Underlying Private Warrants
|
| | | | 102,000 | | | | | | 0.15% | | | | | | 102,000 | | | | | | 0.15% | | | | | | 102,000 | | | | | | 0.15% | | | | | | 102,000 | | | | | | 0.15% | | | | | | 102,000 | | | | | | 0.15% | | |
Total | | | | | 70,341,617 | | | | | | 100.00% | | | | | | 68,216,617 | | | | | | 100.00% | | | | | | 66,091,617 | | | | | | 100.00% | | | | | | 63,966,617 | | | | | | 100.00% | | | | | | 61,841,617 | | | | | | 100.00% | | |
|
|
Assuming No
Redemptions |
| |
Assuming 25%
Redemptions |
| |
Assuming 50%
Redemptions |
| |
Assuming 75%
Redemptions |
| |
Assuming Maximum
Redemptions |
| ||||||||||||||||||||||||||||||||||||||||||
|
(Shares)
|
| |
Fee as a%
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a%
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a%
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a%
of IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a%
of IPO Proceds (net of Redemptions) |
| |||||||||||||||||||||||||||
|
11,500,000
|
| | | | 3.5% | | | | | | 8,625,000 | | | | | | 4.7% | | | | | | 5,750,000 | | | | | | 7.0% | | | | | | 2,875,000 | | | | | | 100.0% | | | | | | 0 | | | | | | 100.0% | | |
Assuming
No Redemptions |
| |
Assuming
25% Redemptions |
| |
Assuming
50% Redemptions |
| |
Assuming
75% Redemptions |
| |
Assuming
Maximum Redemptions |
| ||||||||||||||||||||||||||||||||||||||||||
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |||||||||||||||||||||||||||
11,500,000
|
| | | | 3.5% | | | | | | 8,625,000 | | | | | | 4.7% | | | | | | 5,750,000 | | | | | | 7.0% | | | | | | 2,875,000 | | | | | | 100.0% | | | | | | 0 | | | | | | 100.0% | | |
| | |
Assuming
No Redemptions |
| | | | | | | |
Assuming
Maximum Redemptions |
| | | | | | | ||||||
| | |
(Shares)
|
| |
%
|
| |
(Shares)
|
| |
%
|
| ||||||||||||
Existing QualTek equityholders
|
| | | | 30,708,054 | | | | | | 48% | | | | | | 30,708,055 | | | | | | 59% | | |
ROCR Public Shares
|
| | | | 11,500,000 | | | | | | 18% | | | | | | — | | | | | | 0% | | |
Founder and Private Shares
|
| | | | 3,283,000 | | | | | | 5% | | | | | | 3,283,000 | | | | | | 6% | | |
Pre-PIPE Shares
|
| | | | 6,937,500 | | | | | | 11% | | | | | | 6,937,500 | | | | | | 13% | | |
PIPE Shares(1)
|
| | | | 4,881,813 | | | | | | 8% | | | | | | 4,881,813 | | | | | | 10% | | |
Earnout Shares
|
| | | | 6,111,111 | | | | | | 10% | | | | | | 6,111,111 | | | | | | 12% | | |
Total Common Stock
|
| | | | 63,421,478 | | | | | | | | | | | | 51,921,479 | | | | | | | | |
| | |
As of October 2, 2021
|
| |
As of
September 30, 2021 |
| | | | | | | | | | | | | |
As of
October 2, 2021 |
| |
Transaction
Accounting adjustments (Assuming Maximum Redemption) |
| | | | | | | |
As of
October 2, 2021 |
| |||||||||||||||||||||||||||||||||
| | |
QualTek
Historical |
| |
QualTek
Adjustments |
| | | | | | | |
QualTek
As Adjusted |
| |
ROCR
Historical |
| |
Transaction
Accounting adjustments (Assuming No Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming No Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 5,405 | | | | | $ | — | | | | | | | | | | | $ | 5,405 | | | | | $ | 94 | | | | | | 115,007 | | | | |
|
B
|
| | | | $ | 234,677 | | | | | | (115,000) | | | | |
|
J
|
| | | | $ | 149,077 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 43,058 | | | | |
|
C
|
| | | | | | | | | | | 29,400 | | | | |
|
O
|
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) | | | | |
|
E
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,018) | | | | |
|
F
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 86,132 | | | | |
|
O
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable, net of allowance
|
| | | | 249,264 | | | | | | — | | | | | | | | | | | | 249,264 | | | | | | — | | | | | | — | | | | | | | | | | | | 249,264 | | | | | | — | | | | | | | | | | | | 249,264 | | |
Inventories, net
|
| | | | 5,633 | | | | | | — | | | | | | | | | | | | 5,633 | | | | | | — | | | | | | — | | | | | | | | | | | | 5,633 | | | | | | — | | | | | | | | | | | | 5,633 | | |
Prepaid expenses
|
| | | | 7,446 | | | | | | — | | | | | | | | | | | | 7,446 | | | | | | 287 | | | | | | — | | | | | | | | | | | | 7,733 | | | | | | — | | | | | | | | | | | | 7,733 | | |
Other current assets
|
| | | | 1,952 | | | | | | — | | | | | | | | | | | | 1,952 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,952 | | | | | | — | | | | | | | | | | | | 1,952 | | |
Current assets of discontinued operations
|
| | | | 8,157 | | | | | | — | | | | | | | | | | | | 8,157 | | | | | | — | | | | | | — | | | | | | | | | | | | 8,157 | | | | | | — | | | | | | | | | | | | 8,157 | | |
Total current assets
|
| | | | 277,857 | | | | | | — | | | | | | | | | | | | 277,857 | | | | | | 381 | | | | | | 229,178 | | | | | | | | | | | | 507,416 | | | | | | (85,600) | | | | | | | | | | | | 421,816 | | |
Property and equipment, net
|
| | | | 42,187 | | | | | | — | | | | | | | | | | | | 42,187 | | | | | | — | | | | | | — | | | | | | | | | | | | 42,187 | | | | | | — | | | | | | | | | | | | 42,187 | | |
Intangible assets, net
|
| | | | 364,722 | | | | | | — | | | | | | | | | | | | 364,722 | | | | | | — | | | | | | — | | | | | | | | | | | | 364,722 | | | | | | — | | | | | | | | | | | | 364,722 | | |
Goodwill
|
| | | | 81,775 | | | | | | — | | | | | | | | | | | | 81,775 | | | | | | — | | | | | | — | | | | | | | | | | | | 81,775 | | | | | | — | | | | | | | | | | | | 81,775 | | |
Other long-term assets
|
| | | | 1,676 | | | | | | — | | | | | | | | | | | | 1,676 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,676 | | | | | | — | | | | | | | | | | | | 1,676 | | |
Marketable securities held in Trust Account
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 115,007 | | | | | | (115,007) | | | | |
|
B
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Deferred tax asset
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | |
|
K
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Non-current assets of discontinued operations
|
| | | | 1,348 | | | | | | — | | | | | | | | | | | | 1,348 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,348 | | | | | | — | | | | | | | | | | | | 1,348 | | |
Total assets
|
| | | $ | 769,565 | | | | | $ | — | | | | | | | | | | | $ | 769,565 | | | | | $ | 115,388 | | | | | $ | 114,171 | | | | | | | | | | | $ | 999,124 | | | | | $ | (85,600) | | | | | | | | | | | $ | 913,524 | | |
Liabilities and Equity (Deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt and capital lease obligations
|
| | | $ | 119,545 | | | | | $ | (30,568) | | | | |
|
A
|
| | | | $ | 52,075 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 52,075 | | | | | $ | — | | | | | | | | | | | $ | 52,075 | | |
| | | | | | | | | | | (36,902) | | | | |
|
D
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current portion of contingent consideration
|
| | | | 4,292 | | | | | | — | | | | | | | | | | | | 4,292 | | | | | | — | | | | | | — | | | | | | | | | | | | 4,292 | | | | | | — | | | | | | | | | | | | 4,292 | | |
Accounts payable
|
| | | | 74,217 | | | | | | — | | | | | | | | | | | | 74,217 | | | | | | — | | | | | | — | | | | | | | | | | | | 74,217 | | | | | | — | | | | | | | | | | | | 74,217 | | |
Accrued expenses
|
| | | | 60,713 | | | | | | — | | | | | | | | | | | | 60,713 | | | | | | — | | | | | | — | | | | | | | | | | | | 60,713 | | | | | | — | | | | | | | | | | | | 60,713 | | |
Accounts payable and accrued expenses
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 393 | | | | | | — | | | | | | | | | | | | 393 | | | | | | — | | | | | | | | | | | | 393 | | |
Accrued offering costs
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
E
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Convertible promissory note
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Contract liabilities
|
| | | | 14,950 | | | | | | — | | | | | | | | | | | | 14,950 | | | | | | — | | | | | | — | | | | | | | | | | | | 14,950 | | | | | | — | | | | | | | | | | | | 14,950 | | |
Current liabilities of discontinued operations
|
| | | | 3,941 | | | | | | | | | | | | | | | | | | 3,941 | | | | | | — | | | | | | — | | | | | | | | | | | | 3,941 | | | | | | — | | | | | | | | | | | | 3,941 | | |
Total current liabilities
|
| | | | 277,658 | | | | | | (67,470) | | | | | | | | | | | | 210,188 | | | | | | 394 | | | | | | (1) | | | | | | | | | | | | 210,581 | | | | | | — | | | | | | | | | | | | 210,581 | | |
Capital lease obligations, net of current portion
|
| | | | 16,471 | | | | | | — | | | | | | | | | | | | 16,471 | | | | | | — | | | | | | — | | | | | | | | | | | | 16,471 | | | | | | — | | | | | | | | | | | | 16,471 | | |
Long-term debt, net of current
portion and deferred financing fees |
| | | | 429,033 | | | | | | — | | | | | | | | | | | | 429,033 | | | | | | | | | | | | 86,132 | | | | |
|
O
|
| | | | | 515,165 | | | | | | 29,400 | | | | |
|
O
|
| | | | | 544,565 | | |
Contingent consideration, net of
current portion |
| | | | 24,137 | | | | | | — | | | | | | | | | | | | 24,137 | | | | | | | | | | | | — | | | | | | | | | | | | 24,137 | | | | | | — | | | | | | | | | | | | 24,137 | | |
Distributions payable
|
| | | | 11,409 | | | | | | — | | | | | | | | | | | | 11,409 | | | | | | — | | | | | | — | | | | | | | | | | | | 11,409 | | | | | | — | | | | | | | | | | | | 11,409 | | |
Warrant liability
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 217 | | | | | | — | | | | | | | | | | | | 217 | | | | | | — | | | | | | | | | | | | 217 | | |
| | |
As of October 2, 2021
|
| |
As of
September 30, 2021 |
| | | | | | | | | | | | | |
As of
October 2, 2021 |
| |
Transaction
Accounting adjustments (Assuming Maximum Redemption) |
| | | | | | | |
As of
October 2, 2021 |
| |||||||||||||||||||||||||||||||||
| | |
QualTek
Historical |
| |
QualTek
Adjustments |
| | | | | | | |
QualTek
As Adjusted |
| |
ROCR
Historical |
| |
Transaction
Accounting adjustments (Assuming No Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming No Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||||||||||||||
Payable to related parties pursuant to tax receivable agreement
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 35,561 | | | | |
|
L
|
| | | | | 35,561 | | | | | | (180) | | | | |
|
L
|
| | | | | 35,381 | | |
Non-current liabilities of discontinued operations
|
| | | | — | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total liabilities
|
| | | | 758,708 | | | | | | (67,470) | | | | | | | | | | | | 691,238 | | | | | | 612 | | | | | | 121,692 | | | | | | | | | | | | 813,542 | | | | | | 29,220 | | | | | | | | | | | | 842,762 | | |
Commitments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Temporary Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 115,000 | | | | | | (115,000) | | | | |
|
G
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A units
|
| | | | 248,595 | | | | | | 30,568 | | | | |
|
A
|
| | | | | 279,163 | | | | | | — | | | | | | (279,163) | | | | |
|
H
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Accumulated other comprehensive income
|
| | | | 471 | | | | | | — | | | | | | | | | | | | 471 | | | | | | — | | | | | | — | | | | | | | | | | | | 471 | | | | | | — | | | | | | | | | | | | 471 | | |
Class A Common stock
|
| | | | — | | | | | | | | | | | | | | | | | | — | | | | | | 0 | | | | | | 1 | | | | |
|
C
|
| | | | | 3 | | | | | | (1) | | | | |
|
J
|
| | | | | 2 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1 | | | | |
|
G
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1 | | | | |
|
H
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
|
N
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Common Stock
|
| | | | — | | | | | | 1 | | | | |
|
D
|
| | | | | 1 | | | | | | — | | | | | | 2 | | | | |
|
H
|
| | | | | 3 | | | | | | — | | | | | | | | | | | | 3 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
|
N
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Additional paid-in-capital
|
| | | | — | | | | | | 36,901 | | | | |
|
D
|
| | | | | 36,901 | | | | | | 1,201 | | | | | | 43,057 | | | | |
|
C
|
| | | | | 384,099 | | | | | | (114,999) | | | | |
|
J
|
| | | | | 310,271 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (7,334) | | | | |
|
F
|
| | | | | | | | | | | 180 | | | | |
|
L
|
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 114,999 | | | | |
|
G
|
| | | | | | | | | | | 40,991 | | | | |
|
M
|
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 279,160 | | | | |
|
H
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,425) | | | | |
|
I
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
|
K
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 52,099 | | | | |
|
N
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (98,998) | | | | |
|
M
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (35,561) | | | | |
|
L
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (238,209) | | | | | | | | | | | | | | | | | | (238,209) | | | | | | (1,425) | | | | | | (7,684) | | | | |
|
F
|
| | | | | (297,992) | | | | | | — | | | | | | | | | | | | (297,992) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,425 | | | | |
|
I
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (52,099) | | | | |
|
N
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 98,998 | | | | |
|
M
|
| | | | | 98,998 | | | | | | (40,991) | | | | |
|
M
|
| | | | | 58,007 | | |
Total equity (deficit)
|
| | | | 10,857 | | | | | | 67,470 | | | | | | | | | | | | 78,327 | | | | | | 114,776 | | | | | | (7,521) | | | | | | | | | | | | 185,582 | | | | | | (114,820) | | | | | | | | | | | | 70,762 | | |
Total liabilities and equity (deficit)
|
| | | $ | 769,565 | | | | | $ | — | | | | | | | | | | | $ | 769,565 | | | | | $ | 115,388 | | | | | $ | 114,171 | | | | | | | | | | | $ | 999,124 | | | | | $ | (85,600) | | | | | | | | | | | $ | 913,524 | | |
|
| | |
For the Nine Months
Ended October 2, 2021 |
| |
For the Nine
Months Ended September 30, 2021 |
| | | | | | | | | | | | | |
For the Nine
Months Ended October 2, 2021 |
| | | | | | | | | | | | | |
For the Nine
Months Ended October 2, 2021 |
| ||||||||||||||||||||||||||||||
| | |
QualTek
Historical |
| |
QualTek
Adjustments |
| | | | | | | |
QualTek
As Adjusted |
| |
ROCR
Historical |
| |
Transaction
Accounting adjustments (Assuming No Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming No Redemption) |
| |
Transaction
Accounting adjustments (Assuming Maximum Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||||||||||||||||||||
Revenue
|
| | | $ | 465,184 | | | | | $ | — | | | | | | | | | | | $ | 465,184 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 465,184 | | | | | $ | — | | | | | | | | | | | $ | 465,184 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 372,496 | | | | | | — | | | | | | | | | | | | 372,496 | | | | | | — | | | | | | — | | | | | | | | | | | | 372,496 | | | | | | — | | | | | | | | | | | | 372,496 | | |
General and
administrative |
| | | | 37,962 | | | | | | — | | | | | | | | | | | | 37,962 | | | | | | 1,304 | | | | | | | | | | | | | | | | | | 39,266 | | | | | | — | | | | | | | | | | | | 39,266 | | |
Transaction expenses
|
| | | | 2,875 | | | | | | — | | | | | | | | | | | | 2,875 | | | | | | — | | | | | | (1,559) | | | | |
|
BB
|
| | | | | 1,316 | | | | | | — | | | | | | | | | | | | 1,316 | | |
Change in fair value of contingent
consideration |
| | | | (4,544) | | | | | | — | | | | | | | | | | | | (4,544) | | | | | | — | | | | | | — | | | | | | | | | | | | (4,544) | | | | | | — | | | | | | | | | | | | (4,544) | | |
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Impairment of goodwill
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Depreciation and amortization
|
| | | | 39,136 | | | | | | — | | | | | | | | | | | | 39,136 | | | | | | — | | | | | | — | | | | | | | | | | | | 39,136 | | | | | | — | | | | | | | | | | | | 39,136 | | |
Operating and formation costs
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total costs and expenses
|
| | | | 447,925 | | | | | | — | | | | | | | | | | | | 447,925 | | | | | | 1,304 | | | | | | (1,559) | | | | | | | | | | | | 447,670 | | | | | | — | | | | | | | | | | | | 447,670 | | |
Income from operations
|
| | | | 17,259 | | | | | | — | | | | | | | | | | | | 17,259 | | | | | | (1,304) | | | | | | 1,559 | | | | | | | | | | | | 17,514 | | | | | | — | | | | | | | | | | | | 17,514 | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale/disposal of property and
equipment |
| | | | 514 | | | | | | — | | | | | | | | | | | | 514 | | | | | | — | | | | | | — | | | | | | | | | | | | 514 | | | | | | — | | | | | | | | | | | | 514 | | |
Interest expense
|
| | | | (35,778) | | | | | | 6,740 | | | | |
|
AA
|
| | | | | (29,038) | | | | | | — | | | | | | (7,317) | | | | |
|
HH
|
| | | | | (36,355) | | | | | | (2,115) | | | | |
|
HH
|
| | | | | (38,470) | | |
Loss on extinguishment of convertible notes
|
| | | | (2,436) | | | | | | — | | | | | | | | | | | | (2,436) | | | | | | — | | | | | | — | | | | | | | | | | | | (2,436) | | | | | | — | | | | | | | | | | | | (2,436) | | |
Change in fair value of warrants
|
| | | | | | | | | | — | | | | | | | | | | | | | | | | | | (125) | | | | | | — | | | | | | | | | | | | (125) | | | | | | — | | | | | | | | | | | | (125) | | |
Interest earned on
marketable securities held in Trust Account |
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 7 | | | | | | (7) | | | | |
|
CC
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total other income
(expense) |
| | | | (37,700) | | | | | | 6,740 | | | | | | | | | | | | (30,960) | | | | | | (118) | | | | | | (7,324) | | | | | | | | | | | | (38,402) | | | | | | (2,115) | | | | | | | | | | | | (40,517) | | |
Income tax benefit (provision)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | (257) | | | | |
|
DD
|
| | | | | (257) | | | | | | 556 | | | | |
|
DD
|
| | | | | 299 | | |
Loss from continuing operations
|
| | | | (20,441) | | | | | | 6,740 | | | | | | | | | | | | (13,701) | | | | | | (1,422) | | | | | | (6,022) | | | | | | | | | | | | (21,145) | | | | | | (1,559) | | | | | | | | | | | | (22,704) | | |
Loss from discontinued operations
|
| | | | (8,114) | | | | | | — | | | | | | | | | | | | (8,114) | | | | | | — | | | | | | — | | | | | | | | | | | | (8,114) | | | | | | — | | | | | | | | | | | | (8,114) | | |
Net loss
|
| | | | (28,555) | | | | | | 6,740 | | | | | | | | | | | | (21,815) | | | | | | (1,422) | | | | | | (6,022) | | | | | | | | | | | | (29,259) | | | | | | (1,559) | | | | | | | | | | | | (30,818) | | |
Other comprehensive income:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | 75 | | | | | | — | | | | | | | | | | | | 75 | | | | | | — | | | | | | — | | | | | | | | | | | | 75 | | | | | | — | | | | | | | | | | | | 75 | | |
Comprehensive loss
|
| | | $ | (28,480) | | | | | $ | 6,740 | | | | | | | | | | | $ | (21,740) | | | | | $ | (1,422) | | | | | $ | (6,022) | | | | | | | | | | | $ | (29,184) | | | | | $ | (1,559) | | | | | | | | | | | $ | (30,743) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (9,350) | | | | |
|
FF
|
| | | | | (9,350) | | | | | | (3,220) | | | | |
|
FF
|
| | | | | (12,570) | | |
Net loss attributable to controlling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (19,834) | | | | | | | | | | | | | | | | | $ | (18,173) | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss
per unit from continuing operations |
| | | $ | (10.21) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
For the Nine Months
Ended October 2, 2021 |
| |
For the Nine
Months Ended September 30, 2021 |
| | | | | | | |
For the Nine
Months Ended October 2, 2021 |
| | | | | | | |
For the Nine
Months Ended October 2, 2021 |
| |||||||||||||||||||||
| | |
QualTek
Historical |
| |
QualTek
Adjustments |
| | | | |
QualTek
As Adjusted |
| |
ROCR
Historical |
| |
Transaction
Accounting adjustments (Assuming No Redemption) |
| | | | |
Pro Forma
Combined (Assuming No Redemption) |
| |
Transaction
Accounting adjustments (Assuming Maximum Redemption) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||||||||
Basic and diluted net loss per unit from discontinued
operations |
| | | | (3.75) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per unit
|
| | | $ | (13.96) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted
average common units outstanding |
| | | | 2,161,951 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per share, redeemable common stock
|
| | | | | | | | | | | | | | | | | | $ | (0.12) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted
average shares outstanding, redeemable common stock |
| | | | | | | | | | | | | | | | | | | 8,804,029 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per share, non-redeemable common stock
|
| | | | | | | | | | | | | | | | | | $ | (0.12) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted
average shares outstanding, non- redeemable common stock |
| | | | | | | | | | | | | | | | | | | 3,099,440 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss
per share from continuing operations |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (0.57) | | | | | | | | | | | | (0.77) | | |
Basic and diluted weighted
average common shares outstanding |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31,597,195 | | | | | | | | | | | | 20,120,675 | | |
| | |
For the Year Ended December 31, 2020
|
| |
Transaction
Accounting adjustments (Assuming No Redemption) |
| | | | | | | |
For the
Year Ended December 31, 2020 |
| |
Transaction
Accounting adjustments (Assuming Maximum Redemption) |
| | | | | | | |
For the Year Ended
December 31, 2020 |
| | |||||||||||||||||||||||||||||||||||||||||
| | |
QualTek
Historical |
| |
QualTek
Adjustments |
| | | | | | | |
QualTek
As Adjusted |
| |
ROCR
Historical |
| | | | | | | |
Pro Forma
Combined (Assuming No Redemption) |
| | | | | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| | ||||||||||||||||||||||||||||||||
Revenue
|
| | | $ | 656,524 | | | | | $ | — | | | | | | | | | | | $ | 656,524 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 656,524 | | | | | $ | — | | | | | | | | | | | $ | 656,524 | | | | ||
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 597,583 | | | | | | — | | | | | | | | | | | | 597,583 | | | | | | — | | | | | | — | | | | | | | | | | | | 597,583 | | | | | | — | | | | | | | | | | | | 597,583 | | | | ||
General and administrative
|
| | | | 47,049 | | | | | | — | | | | | | | | | | | | 47,049 | | | | | | — | | | | | | 1 | | | | |
|
EE
|
| | | | | 47,050 | | | | | | — | | | | | | | | | | | | 47,050 | | | | ||
Transaction expenses
|
| | | | 988 | | | | | | — | | | | | | | | | | | | 988 | | | | | | — | | | | | | 9,243 | | | | |
|
BB
|
| | | | | 10,231 | | | | | | — | | | | | | | | | | | | 10,231 | | | | ||
Change in fair value of contingent consideration
|
| | | | (7,081) | | | | | | — | | | | | | | | | | | | (7,081) | | | | | | — | | | | | | — | | | | | | | | | | | | (7,081) | | | | | | — | | | | | | | | | | | | (7,081) | | | | ||
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | ||
Impairment of goodwill
|
| | | | 28,802 | | | | | | — | | | | | | | | | | | | 28,802 | | | | | | — | | | | | | — | | | | | | | | | | | | 28,802 | | | | | | — | | | | | | | | | | | | 28,802 | | | | ||
Depreciation and
amortization |
| | | | 46,475 | | | | | | — | | | | | | | | | | | | 46,475 | | | | | | — | | | | | | — | | | | | | | | | | | | 46,475 | | | | | | — | | | | | | | | | | | | 46,475 | | | | ||
Operating and formation costs
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
EE
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | |
Total costs and expenses
|
| | | | 713,816 | | | | | | — | | | | | | | | | | | | 713,816 | | | | | | 1 | | | | | | 9,243 | | | | | | | | | | | | 723,060 | | | | | | — | | | | | | | | | | | | 723,060 | | | | ||
Loss from operations
|
| | | | (57,292) | | | | | | — | | | | | | | | | | | | (57,292) | | | | | | (1) | | | | | | (9,243) | | | | | | | | | | | | (66,536) | | | | | | — | | | | | | | | | | | | (66,536) | | | | ||
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Gain on sale/disposal of property and equipment
|
| | | | 729 | | | | | | — | | | | | | | | | | | | 729 | | | | | | — | | | | | | — | | | | | | | | | | | | 729 | | | | | | — | | | | | | | | | | | | 729 | | | | ||
Interest expense
|
| | | | (37,659) | | | | | | — | | | | | | | | | | | | (37,659) | | | | | | — | | | | | | (9,756) | | | | |
|
HH
|
| | | | | (47,415) | | | | | | (2,820) | | | | |
|
HH
|
| | | | | (50,235) | | | | ||
Loss on extinguishment of debt
|
| | | | | | | | | | (7,498) | | | | |
|
GG
|
| | | | | (7,498) | | | | | | — | | | | | | — | | | | | | | | | | | | (7,498) | | | | | | — | | | | | | | | | | | | (7,498) | | | | ||
Change in fair value of warrants
|
| | | | | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | ||
Interest earned on marketable
securities held in Trust Account |
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | ||
Total other income (expense)
|
| | | | (36,930) | | | | | | (7,498) | | | | | | | | | | | | (44,428) | | | | | | — | | | | | | (9,756) | | | | | | | | | | | | (54,184) | | | | | | (2,820) | | | | | | | | | | | | (57,004) | | | | ||
Income tax benefit
(provision) |
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 6,969 | | | | |
|
DD
|
| | | | | 6,969 | | | | | | 742 | | | | |
|
DD
|
| | | | | 7,711 | | | | ||
Loss from continuing
operations |
| | | | (94,222) | | | | | | (7,498) | | | | | | | | | | | | (101,720) | | | | | | (1) | | | | | | (12,030) | | | | | | | | | | | | (113,751) | | | | | | (2,078) | | | | | | | | | | | | (115,829) | | | | | |
Loss from discontinued operations
|
| | | | (3,865) | | | | | | — | | | | | | | | | | | | (3,865) | | | | | | | | | | | | — | | | | | | | | | | | | (3,865) | | | | | | | | | | | | | | | | | | (3,865) | | | | ||
Net loss
|
| | | | (98,087) | | | | | | (7,498) | | | | | | | | | | | | (105,585) | | | | | | (1) | | | | | | (12,030) | | | | | | | | | | | | (117,616) | | | | | | (2,078) | | | | | | | | | | | | (119,694) | | | | | |
Other comprehensive income:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Foreign currency translation adjustment
|
| | | | 239 | | | | | | — | | | | | | | | | | | | 239 | | | | | | — | | | | | | — | | | | | | | | | | | | 239 | | | | | | — | | | | | | | | | | | | 239 | | | | ||
Comprehensive loss
|
| | | $ | (97,848) | | | | | $ | (7,498) | | | | | | | | | | | $ | (105,346) | | | | | $ | (1) | | | | | $ | (12,030) | | | | | | | | | | | $ | (117,377) | | | | | $ | (2,078) | | | | | | | | | | | $ | (119,455) | | | | ||
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (54,042) | | | | |
|
FF
|
| | | | | (54,042) | | | | | | (13,472) | | | | |
|
FF
|
| | | | | (67,514) | | | | ||
Net loss attributable to controlling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (63,335) | | | | | | | | | | | | | | | | | $ | (51,941) | | | | ||
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted net loss per unit from continuing operations
|
| | | $ | (48.61) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted net loss per unit from discontinued operations
|
| | | | (1.93) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted net loss per unit
|
| | | $ | (50.54) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted weighted average common units outstanding
|
| | | | 2,005,824 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Basic and diluted net loss per share
|
| | | | | | | | | | | | | | | | | | | | | $ | (0.00) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
For the Year Ended December 31, 2020
|
| |
Transaction
Accounting adjustments (Assuming No Redemption) |
| | | | |
For the
Year Ended December 31, 2020 |
| |
Transaction
Accounting adjustments (Assuming Maximum Redemption) |
| | | | |
For the Year Ended
December 31, 2020 |
| |||||||||||||||||||||
| | |
QualTek
Historical |
| |
QualTek
Adjustments |
| | | | |
QualTek
As Adjusted |
| |
ROCR
Historical |
| | | | |
Pro Forma
Combined (Assuming No Redemption) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |||||||||||||||
Basic and diluted weighted average common shares outstanding
|
| | | | | | | | | | | | | 2,500,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per share from continuing operations
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (1.81) | | | | | | | | | | | $ | (2.21) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 31,597,195 | | | | | | | | | | | | 20,120,675 | | |
| | |
As of October 2, 2021
|
| | | | | | | |||||||||||||||
(in thousands except share and per share data)
|
| |
Pro Forma
Combined (Assuming No Redemption) |
| |
Incremental
Adjustment for Maximum Redemption |
| |
Pro Forma Combined
(Assuming Maximum Redemption) |
| |
Adjustment
Tickmark |
| ||||||||||||
Total equity (deficit)
|
| | | $ | 185,582 | | | | | $ | (114,820) | | | | | $ | 70,762 | | | | | | | | |
Adjustments to equity excluded from the calculation of noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Payable to related parties pursuant to tax receivable agreement
|
| | | | 35,561 | | | | | | (180) | | | | | | 35,381 | | | | | | (L) | | |
Adjusted total equity (deficit)
|
| | | $ | 221,143 | | | | | $ | (115,000) | | | | | $ | 106,143 | | | | | | | | |
Retained interest of Qualtek equityholders
|
| | | | 45% | | | | | | | | | | | | 55% | | | | | | | | |
Noncontrolling interest
|
| | | $ | 98,998 | | | | | $ | (40,991) | | | | | $ | 58,007 | | | | | | | | |
| | |
As of October 2, 2021
|
| |||||||||||||||
(in thousands)
|
| |
Adjustment
Assuming No Redemption |
| |
Incremental
Adjustment for Maximum Redemption |
| |
Total Assuming
Maximum Redemption |
| |||||||||
Investment expected from current Convertible Note Subscribers
|
| | | $ | 70,000 | | | | | $ | 30,000 | | | | | $ | 100,000 | | |
Initial PIPE Investment expected to be funded through Convertible Note
|
| | | | 23,043 | | | | | | — | | | | | | 23,043 | | |
Less: Convertible Note financing fees
|
| | | | (6,911) | | | | | | (600) | | | | | | (7,511) | | |
Total pro forma adjustment
|
| | | $ | 86,132 | | | | | $ | 29,400 | | | | | $ | 115,532 | | |
| | |
For the nine months ended October 2, 2021
|
| |||||||||||||||
(in thousands)
|
| |
Adjustment
Assuming No Redemption |
| |
Incremental
Adjustment for Maximum Redemption |
| |
Total Assuming
Maximum Redemption |
| |||||||||
Pro Forma Combined Loss from continuing operations
|
| | | | (21,145) | | | | | | (1,559) | | | | | | (22,704) | | |
Pro Forma Combined Income tax provision
|
| | | | (257) | | | | | | 556 | | | | | | 299 | | |
Pro Forma Combined Pre-tax loss from continuing operations
|
| | | | (20,888) | | | | | | (2,115) | | | | | | (23,003) | | |
Retained interest of QualTek equityholders
|
| | | | 45% | | | | | | | | | | | | 55% | | |
Pro Forma Combined income/(loss) from continuing operations related to noncontrolling interest
|
| | | | (9,350) | | | | | | (3,220) | | | | | | (12,570) | | |
| | |
For the year ended December 31, 2020
|
| ||||||||||||||||||
(in thousands)
|
| |
Adjustment
Assuming No Redemption |
| |
Incremental
Adjustment for Maximum Redemption |
| |
Total Assuming
Maximum Redemption |
| | |||||||||||
Pro Forma Combined Loss from continuing operations
|
| | | | (113,751) | | | | | | (2,078) | | | | | | (115,829) | | | | ||
Pro Forma Combined Income tax provision
|
| | | | 6,969 | | | | | | 742 | | | | | | 7,711 | | | | ||
Pro Forma Combined Pre-tax loss from continuing operations
|
| | | | (120,270) | | | | | | (2,820) | | | | | | (123,540) | | | | ||
Retained interest of QualTek equityholders
|
| | | | 45% | | | | | | | | | | | | 55% | | | | ||
Pro Forma Combined income/(loss) from continuing operations related to noncontrolling interest
|
| | | | (54,042) | | | | | | (13,472) | | | | | | (67,514) | | | |
| | |
For the nine months ended October 2, 2021
|
| ||||||||||||||||||
(in thousands)
|
| |
Adjustment Assuming No
Redemption |
| |
Incremental Adjustment for
Maximum Redemption |
| |
Total Assuming
Maximum Redemption |
| | |||||||||||
Interest expense related to Convertible Note Investment
|
| | | | 6,280 | | | | | | 2,025 | | | | | | 8,305 | | | | ||
Amortization of deferred financing fees
|
| | | | 1,037 | | | | | | 90 | | | | | | 1,127 | | | | ||
Total pro forma adjustment
|
| | | $ | 7,317 | | | | | $ | 2,115 | | | | | $ | 9,432 | | | |
| | |
For the year ended December 31, 2021
|
| ||||||||||||||||||
(in thousands)
|
| |
Adjustment Assuming No
Redemption |
| |
Incremental Adjustment for
Maximum Redemption |
| |
Total Assuming
Maximum Redemption |
| | |||||||||||
Interest expense related to Convertible Note Investment
|
| | | | 8,374 | | | | | | 2,700 | | | | | | 11,074 | | | | ||
Amortization of deferred financing fees
|
| | | | 1,382 | | | | | | 120 | | | | | | 1,502 | | | | ||
Total pro forma adjustment
|
| | | $ | 9,756 | | | | | $ | 2,820 | | | | | $ | 12,576 | | | |
| | |
For the nine-months ended October 2, 2021
|
| |
For the year ended December 31, 2020
|
| ||||||||||||||||||
(in thousands except share and per share data)
|
| |
Pro Forma Combined
(Assuming No Redemption) |
| |
Pro Forma Combined
(Assuming Maximum Redemption) |
| |
Pro Forma Combined
(Assuming No Redemption) |
| |
Pro Forma Combined
(Assuming Maximum Redemption) |
| ||||||||||||
Pro forma net income (loss) attributable to the controlling interest (in thousands)
|
| | | $ | (19,834) | | | | | $ | (18,173) | | | | | $ | (63,335) | | | | | $ | (51,941) | | |
Less: undistributed earnings attributable to Class A Earnout Shares
|
| | | | (1,943) | | | | | | (2,644) | | | | | | (6,206) | | | | | | (7,558) | | |
Pro forma income (loss) from continuing operations attributable to common shareholders (in thousands) – basic
|
| | | $ | (17,891) | | | | | $ | (15,529) | | | | | $ | (57,129) | | | | | $ | (44,383) | | |
Weighted average common shares outstanding – basic
and diluted |
| | | | 31,597,195 | | | | | | 20,120,675 | | | | | | 31,597,195 | | | | | | 20,120,675 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.57) | | | | | $ | (0.77) | | | | | $ | (1.81) | | | | | $ | (2.21) | | |
Weighted average common shares calculation | | | | | | | | | | | | | | | | | | | | | | | | | |
Existing QualTek Equity Holders
|
| | | | 11,932,382 | | | | | | 11,955,862 | | | | | | 11,932,382 | | | | | | 11,955,862 | | |
ROCR Public Shareholders
|
| | | | 11,500,000 | | | | | | — | | | | | | 11,500,000 | | | | | | — | | |
Founder Shares
|
| | | | 3,283,000 | | | | | | 3,283,000 | | | | | | 3,283,000 | | | | | | 3,283,000 | | |
Pre-PIPE Investors
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
PIPE Investors
|
| | | | 4,881,813 | | | | | | 4,881,813 | | | | | | 4,881,813 | | | | | | 4,881,813 | | |
Weighted average common shares outstanding, basic
and diluted |
| | | | 31,597,195 | | | | | | 20,120,675 | | | | | | 31,597,195 | | | | | | 20,120,675 | | |
Excluded from the calculation | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Common Stock
|
| | | | 28,391,543 | | | | | | 28,374,695 | | | | | | 28,391,543 | | | | | | 28,374,695 | | |
Private Warrants
|
| | | | 102,000 | | | | | | 102,000 | | | | | | 102,000 | | | | | | 102,000 | | |
Public Warrants
|
| | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,875,000 | | |
Convertible Notes
|
| | | | 9,304,250 | | | | | | 12,304,250 | | | | | | 9,304,250 | | | | | | 12,304,250 | | |
Total potentially dilutive shares excluded from calculation
|
| | | | 40,672,793 | | | | | | 43,655,945 | | | | | | 40,672,793 | | | | | | 43,655,945 | | |
| | |
Pro Forma Combined
(Assuming No Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||
Excluded from the calculation(1) | | | | | | | | | | | | | |
Class B Common Stock
|
| | | | 28,391,543 | | | | | | 28,374,695 | | |
Private Warrants
|
| | | | 102,000 | | | | | | 102,000 | | |
Public Warrants
|
| | | | 2,875,000 | | | | | | 2,875,000 | | |
Convertible Notes
|
| | | | 9,304,250 | | | | | | 12,304,250 | | |
Total potentially dilutive shares excluded from calculation
|
| | | | 40,672,793 | | | | | | 43,655,945 | | |
| | | | | | | | | | | | | | |
Combined Pro Forma
|
| |||||||||
| | |
QualTek
(Historical) |
| |
ROCR
(Historical) |
| |
Pro Forma Combined
(Assuming No Redemption) |
| |
Pro Forma Combined
(Assuming Maximum Redemption) |
| ||||||||||||
As of and for the nine months ended October 2, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share(1)
|
| | | $ | 4.88 | | | | | $ | (0.07) | | | | | $ | 5.30 | | | | | $ | 3.01 | | |
Weighted average share outstanding, redeemable common stock – basic and diluted
|
| | | | | | | | | | 8,804,029 | | | | | | | | | | | | | | |
Net loss per share, redeemable common stock – basic and diluted
|
| | | | | | | | | $ | (0.12) | | | | | | | | | | | | | | |
Weighted average share outstanding non-redeemable common stock – basic and diluted
|
| | | | | | | | | | 3,099,440 | | | | | | | | | | | | | | |
Net loss per share, non-redeemable common stock – basic and diluted
|
| | | | | | | | | $ | (0.12) | | | | | | | | | | | | | | |
Weighted average share common units outstanding – basic and diluted
|
| | | | 2,161,951 | | | | | | | | | | | | | | | | | | | | |
Net loss per unit – basic and diluted
|
| | | $ | (13.96) | | | | | | | | | | | | | | | | | | | | |
Weighted average share outstanding of common stock – basic and diluted
|
| | | | | | | | | | | | | | | | 31,597,195 | | | | | | 20,120,675 | | |
Net loss per share of common stock – basic and diluted
|
| | | | | | | | | | | | | | | $ | (0.57) | | | | | $ | (0.77) | | |
As of and for the year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share(1)
|
| | | $ | 14.77 | | | | | $ | 0.01 | | | | | | N/A(2) | | | | | | N/A(2) | | |
Weighted average share outstanding of common stock – basic and diluted
|
| | | | | | | | | | 2,500,000 | | | | | | 31,597,195 | | | | | | 20,120,675 | | |
Net loss per share of common stock – basic and diluted
|
| | | | | | | | | $ | (0.00) | | | | | $ | (1.81) | | | | | $ | (2.21) | | |
Weighted average share common units outstanding – basic and diluted
|
| | | | 2,005,824 | | | | | | | | | | | | | | | | | | | | |
Net loss per unit – basic and diluted
|
| | | $ | (50.54) | | | | | | | | | | | | | | | | | | | | |
(in millions, except percentages and leverage)
|
| |
FY2019A
|
| |
FY2020A(1)
|
| |
FY2021E
|
| |
FY2022E
|
| |
FY2023E
|
| |||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecommunications
|
| | | $ | 590 | | | | | $ | 605 | | | | | $ | 650 | | | | | $ | 791 | | | | | $ | 932 | | |
% Growth
|
| | | | | | | | | | 3% | | | | | | 7% | | | | | | 22% | | | | | | 18% | | |
% Total revenues
|
| | | | 95% | | | | | | 90% | | | | | | 80% | | | | | | 81% | | | | | | 82% | | |
Renewables & Recovery Logistics
|
| | | $ | 31 | | | | | $ | 69 | | | | | $ | 167 | | | | | $ | 184 | | | | | $ | 202 | | |
% Growth
|
| | | | | | | | | | 123% | | | | | | 143% | | | | | | 10% | | | | | | 10% | | |
% Total revenues
|
| | | | 5% | | | | | | 10% | | | | | | 20% | | | | | | 19% | | | | | | 18% | | |
Total revenues
|
| | | $ | 621 | | | | | $ | 674 | | | | | $ | 818 | | | | | $ | 975 | | | | | $ | 1,135 | | |
% Growth
|
| | | | | | | | | | 9% | | | | | | 21% | | | | | | 19% | | | | | | 16% | | |
EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecommunications
|
| | | $ | 38 | | | | | $ | 48 | | | | | $ | 67 | | | | | $ | 81 | | | | | $ | 97 | | |
% Growth
|
| | | | | | | | | | 28% | | | | | | 39% | | | | | | 21% | | | | | | 19% | | |
% Margin
|
| | | | 6% | | | | | | 8% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | |
Renewables & Recovery Logistics
|
| | | $ | 11 | | | | | $ | 29 | | | | | $ | 59 | | | | | $ | 65 | | | | | $ | 71 | | |
% Growth
|
| | | | | | | | | | 153% | | | | | | 104% | | | | | | 10% | | | | | | 10% | | |
% Margin
|
| | | | 37% | | | | | | 42% | | | | | | 35% | | | | | | 35% | | | | | | 35% | | |
Corporate SG&A
|
| | | | (16) | | | | | | (16) | | | | | | (21) | | | | | | (26) | | | | | | (32) | | |
Total EBITDA
|
| | | $ | 33 | | | | | $ | 61 | | | | | $ | 106 | | | | | $ | 120 | | | | | $ | 136 | | |
% Growth
|
| | | | | | | | | | 84% | | | | | | 72% | | | | | | 14% | | | | | | 13% | | |
% Margin
|
| | | | 5% | | | | | | 9% | | | | | | 13% | | | | | | 12% | | | | | | 12% | | |
Balance Sheet and Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported EBITDA
|
| | | $ | 33 | | | | | $ | 11 | | | | | $ | 106 | | | | | $ | 120 | | | | | $ | 136 | | |
Cash Capex
|
| | | | (8) | | | | | | (10) | | | | | | (14) | | | | | | (18) | | | | | | (23) | | |
Cash Interest Expense
|
| | | | (30) | | | | | | (35) | | | | | | (25) | | | | | | (11) | | | | | | (9) | | |
Cash Taxes(2)
|
| | | | (1) | | | | | | (1) | | | | | | (14) | | | | | | (19) | | | | | | (22) | | |
Change in Net Working Capital
|
| | | | (1) | | | | | | 41 | | | | | | 1 | | | | | | (31) | | | | | | (32) | | |
Earnouts(3) | | | | | (13) | | | | | | (6) | | | | | | — | | | | | | (10) | | | | | | (5) | | |
Levered Free Cash Flow
|
| | | $ | (20) | | | | | $ | (0) | | | | | $ | 54 | | | | | $ | 31 | | | | | $ | 45 | | |
% Margin
|
| | | | * | | | | | | * | | | | | | 51% | | | | | | 26% | | | | | | 33% | | |
Memo: Unlevered free cash flow
|
| | | $ | 11 | | | | | $ | 35 | | | | | $ | 79 | | | | | $ | 42 | | | | | $ | 54 | | |
% Margin
|
| | | | 32% | | | | | | * | | | | | | 75% | | | | | | 35% | | | | | | 40% | | |
Cash as of Period End
|
| | | $ | 0.3 | | | | | $ | 0.1 | | | | | $ | 38 | | | | | $ | 34 | | | | | $ | 33 | | |
Debt as of Period End
|
| | | $ | 431 | | | | | $ | 463 | | | | | $ | 240 | | | | | $ | 207 | | | | | $ | 160 | | |
Net Debt
|
| | | $ | 431 | | | | | $ | 463 | | | | | $ | 202 | | | | | $ | 173 | | | | | $ | 126 | | |
Net Leverage(4)
|
| | | | 5.0x | | | | | | 5.7x | | | | | | 1.9x | | | | | | 1.4x | | | | | | 0.9x | | |
|
Leverage Ratio
|
| |
Applicable Interest Rate
|
|
|
Less than 4.5x
|
| |
9.00%
|
|
|
4.5x or greater but less than 5.0x
|
| |
9.50%
|
|
|
5.0x or greater but less than 5.5x
|
| |
10.25%
|
|
|
5.5x or greater
|
| |
11.25%
|
|
|
Assuming No
Redemptions |
| |
Assuming 25%
Redemptions |
| |
Assuming 50%
Redemptions |
| |
Assuming 75%
Redemptions |
| |
Assuming Maximum
Redemptions |
| ||||||||||||||||||||||||||||||||||||||||||
|
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |||||||||||||||||||||||||||
| 11,500,000 | | | | | 3.5% | | | | | | 8,625,000 | | | | | | 4.7% | | | | | | 5,750,000 | | | | | | 7.0% | | | | | | 2,875,000 | | | | | | 100.0% | | | | | | 0 | | | | | | 100.0% | | |
|
Assuming No
Redemptions |
| |
Assuming 25%
Redemptions |
| |
Assuming 50%
Redemptions |
| |
Assuming 75%
Redemptions |
| |
Assuming Maximum
Redemptions |
| ||||||||||||||||||||||||||||||||||||||||||
|
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |
(Shares)
|
| |
Fee as a % of
IPO Proceds (net of Redemptions) |
| |||||||||||||||||||||||||||
| 11,500,000 | | | | | 3.5% | | | | | | 8,625,000 | | | | | | 4.7% | | | | | | 5,750,000 | | | | | | 7.0% | | | | | | 2,875,000 | | | | | | 100.0% | | | | | | 0 | | | | | | 100.0% | | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Name
|
| | “Roth CH Acquisition III Co.” | | | “QualTek Services Inc.” | | | The change in name will reflect the identity of ROCR’s business following the consummation of the Business Combination. | |
Provisions Specific to Special Purpose Acquisition Companies
|
| | The Current Charter sets forth various provisions related to its operations as a special purpose acquisition company prior to the consummation of an initial business combination. | | | The Proposed Certificate of Incorporation does not include these special purpose acquisition company provisions because, upon consummation of the Business Combination, ROCR will not be a special purpose acquisition | | | The provisions of the ROCR charter that relate to the operation of ROCR as a special purpose acquisition company prior to the consummation of the Business Combination would not be applicable to ROCR following the Business Combination | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
| | | | | | company. In addition, the provisions requiring that the proceeds from ROCR’s initial public offering be held in a trust account until a business combination or liquidation of the ROCR and the terms governing the ROCR’s consummation of a proposed business combination will not be applicable to ROCR following consummation of the Business Combination. | | | (such as the obligation to dissolve and liquidate if a business combination is not consummated in a certain period of time). | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Common stock
|
| | ROCR has 50,000,000 authorized shares of common stock. | | | ROCR will have [•] authorized [•] shares of Class A common stock, par value $0.0001 per share; and (c) [•] shares of Class B common stock, par value $0.0001 per share | | | The Board believes that the greater number of authorized shares of capital stock is desirable for ROCR to have sufficient shares to issue to holders of [•] and to [•] in order to complete the Business Combination and have additional authorized shares for financing its business, for acquiring other businesses, for forming strategic partnerships and alliances and for stock dividends and stock splits. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Preferred stock
|
| | ROCR has no authorized shares of preferred stock. | | | ROCR will have [•] authorized shares of preferred stock, par value $0.0001 per share, which may be issued by the ROCR Board of Directors by resolution. | | | The Board believes that the flexibility afforded by authorization of a class of “blank check” preferred stock to public companies includes the ability to quickly access the capital markets when investors seek | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
| | | | | | | | | dividend-paying instruments such as straight or convertible preferred stock, and may in addition be used in connection with an undesirable takeover transaction, as more fully described below. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Stockholder Ability to Call Special Meetings
|
| | ROCR’s Current Charter contains no limitations on the ability to call special meetings of stockholders. | | | ROCR’s Proposed Certificate of Incorporation will provide that special meetings of stockholders may be called at any time only by the Chairman of the Board, or a majority of the directors. | | | The Board believes that eliminating the ability of ROCR’s stockholders to call a special meeting is a prudent corporate governance measure to reduce the possibility that a block of ROCR stockholders could take corporate actions that the Board deems undesirable, including for purposes of seeking to implement an opportunistic change in control of ROCR without the support of the then incumbent Board. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Classified Board
|
| | The directors of the Board are elected each year and serve a one-year term. | | | The Proposed Certificate of Incorporation states that the Board will consist of three classes of directors, with only one class of directors being elected in each year and each class serving a three-year term. | | | The amendments to the classified Board are desirable for ROCR to enhance the likelihood of continuity and stability in the composition of the Board, avoid costly takeover battles, reduce ROCR’s vulnerability to a hostile change of control and enhance the ability of the Board to maximize shareholder value in connection with any unsolicited offer to acquire ROCR. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Removal of Directors
|
| | ROCR’s Current Charter provides that any or all of the directors may be removed from office at any time, but only for cause and only by the affirmative vote of holders of 60% of the then outstanding shares of capital stock of ROCR entitled to vote generally in the election of directors, voting together as a single class. | | | Under the Proposed Certificate of Incorporation, ROCR’s directors may be removed only for cause and only upon the affirmative vote of the holders of a majority of the voting power of all the then outstanding shares of stock entitled to vote generally in the election of directors, voting together as a single class. | | | The Board believes that permitting stockholders to remove directors only for cause is a prudent corporate governance measure to reduce the possibility that a relatively small number of stockholders could seek to implement a sudden and opportunistic change in control of the Board without the support of the then incumbent Board. These changes will enhance the likelihood of continuity and stability in the composition of the Board, avoid costly takeover battles, reduce ROCR’s vulnerability to a hostile change of control and enhance the ability of the Board to maximize shareholder value in connection with any unsolicited offer to acquire ROCR. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Absolve Certain Stockholders from Certain Competition and Corporate Opportunities Obligations
|
| | | | | Under the Proposed Certificate of Incorporation, none of the Sellers (as defined in the Investor Rights Agreement), the Sponsors (as defined in the Investor Rights Agreement), members of the Board who are not employees of the ROCR (“Non-Employee Directors”) or any of their Affiliates or Affiliated Entities (each as defined in the Proposed Certificate of Incorporation) (collectively, the “Identified Persons”) shall have any duty to refrain from directly or indirectly (1) engaging in or possessing interests in other business ventures of every type and description, including those engaged in the same or similar business activities or lines of business in which ROCR or any of its subsidiaries now engages or proposes to engage or (2) competing with ROCR or any of its subsidiaries, on its own account, or in partnership with, or as an employee, officer, director or shareholder of any other person, and, provide that no Identified Person shall be liable to ROCR or its stockholders or to any affiliate of ROCR for breach of any fiduciary duty solely by reason of the fact that such Identified Person engages in any such activities, and to provide that ROCR renounces any such business opportunity which may be a corporate opportunity for an | | | The Board believes that revising the existing waiver of the corporate opportunity doctrine so that such waiver is limited to the Identified Persons reflects a desirable and appropriate change in corporate governance for ROCR as it will no longer be a special purpose acquisition company and, as a result, a reasonable limitation on the advance waiver of business opportunities reflecting the changed circumstances of ROCR following the Business Combination is in the best interests of ROCR and its stockholders. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
| | | | | | Identified Person other than any corporate opportunity offered to any Non-Employee Director if such opportunity is expressly offered to such person solely and expressly in his or her capacity as a director or officer of ROCR, such opportunity is one the Board is legally permitted to undertake and would otherwise be reasonable for ROCR to pursue. | | | | |
Name
|
| |
Age
|
| |
Position
|
|
Andrew Weinberg | | |
47
|
| |
Chairman
|
|
Christopher S. Hisey | | |
56
|
| |
Chief Executive Officer and Director
|
|
Matthew Allard | | |
49
|
| |
Director
|
|
Sam Chawla | | |
47
|
| |
Director
|
|
Raul Deju | | |
75
|
| |
Director
|
|
Roger Bulloch | | |
48
|
| |
Director
|
|
Maha Eltobgy | | |
50
|
| |
Director
|
|
Renee Noto | | |
55
|
| |
Director
|
|
Jigisha Desai | | |
55
|
| |
Director
|
|
Name
|
| |
Age
|
| |
Position
|
|
Byron Roth | | |
59
|
| |
Co-Chief Executive Officer and Chairman of the Board
|
|
Gordon Roth | | |
67
|
| | Chief Financial Officer | |
Rick Hartfiel | | |
57
|
| | Co-President | |
John Lipman | | |
44
|
| | Co-Chief Executive Officer and Director | |
Aaron Gurewitz | | |
53
|
| | Co-President | |
Molly Montgomery | | |
54
|
| | Director | |
Daniel M. Friedberg | | |
60
|
| | Director | |
Adam Rothstein | | |
50
|
| | Director | |
James Gold | | |
57
|
| | Director | |
Sam Chawla | | |
47
|
| | Director | |
| | |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2020 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
General and administrative expenses
|
| | | $ | 1,304,440 | | | | | $ | 885 | | |
Loss from operations
|
| | | | (1,304,440) | | | | | | (885) | | |
Net loss
|
| | | $ | (1,422,448) | | | | | $ | (885) | | |
Basic and diluted weighted average shares outstanding, redeemable common stock
|
| | | | 8,804,029 | | | | | | — | | |
Basic and diluted weighted average shares outstanding,
non-redeemable common stock |
| | | | 3,099,440 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, redeemable common stock
|
| | | $ | (0.12) | | | | | $ | (0.00) | | |
Basic and diluted net loss per share, non-redeemable common
stock |
| | | $ | (0.12) | | | | | $ | (0.00) | | |
Balance Sheet Data:
|
| |
September 30, 2021
(Unaudited) |
| |
December 31, 2020
(Audited) |
| ||||||
Cash
|
| | | $ | 93,594 | | | | | $ | 195,758 | | |
Prepaid expenses
|
| | | $ | 286,946 | | | | | $ | 1,500 | | |
Marketable securities held in Trust Account
|
| | | $ | 115,007,452 | | | | | | — | | |
Deferred offering costs
|
| | | | — | | | | | $ | 31,542 | | |
Total assets
|
| | | $ | 115,387,992 | | | | | $ | 228,800 | | |
Total liabilities
|
| | | $ | 611,652 | | | | | $ | 206,000 | | |
Total Stockholders’ (Deficit) Equity
|
| | | $ | (223,660) | | | | | $ | 22,800 | | |
Name
|
| |
Age
|
| |
Position
|
|
Christopher S. Hisey | | |
56
|
| | Chief Executive Officer (QualTek LLC) and Member of the Board of Managers of BCP QualTek HoldCo, LLC | |
Kevin Doran | | |
63
|
| | Chief Executive Officer and President (QualTek Wireless LLC) | |
Elizabeth Downey | | |
52
|
| | Chief Administrative Officer (QualTek LLC) | |
Michael B. Williams | | |
44
|
| | Chief Business Officer (QualTek LLC) | |
Adam Spittler | | |
42
|
| | Chief Financial Officer (QualTek LLC) | |
Matthew Allard | | |
49
|
| | Member of the Board of Managers | |
Andrew Weinberg | | |
47
|
| | Member of the Board of Managers | |
Raul Deju | | |
75
|
| | Member of the Board of Managers | |
Name
|
| |
Principal Position
|
|
Christopher S. Hisey | | | Chief Executive Officer, QualTek LLC | |
Elizabeth Downey | | | Chief Administrative Officer, QualTek LLC | |
Kevin Doran | | |
Chief Executive Officer, QualTek Wireless LLC
|
|
Name and Principal Position (a)
|
| |
Year
|
| |
Salary
($)(2) |
| |
Total
($)(3) |
| |||||||||
Christopher S. Hisey, Chief Executive Officer, QualTek LLC(1)
|
| | | | 2021 | | | | | $ | 500,000 | | | | | $ | 500,000 | | |
Elizabeth Downey, Chief Administrative Officer, QualTek LLC
|
| | | | 2021 | | | | | $ | 375,000 | | | | | $ | 375,000 | | |
Kevin Doran, Chief Executive Officer, QualTek Wireless LLC
|
| | | | 2021 | | | | | $ | 450,500 | | | | | $ | 450,500 | | |
| | | | | |
Option Awards(1)
|
| |||||||||||||||||||||
| | |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($)(2) |
| |
Option
Expiration Date(2) |
| ||||||||||||
Christopher S. Hisey
|
| |
April 15, 2019
|
| | | | 18,457 | | | | | | 12,305(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 20,508 | | | | | | 13,672(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 22,921 | | | | | | 15,280(5) | | | | | | — | | | | | | — | | |
Elizabeth Downey
|
| |
April 15, 2019
|
| | | | 3,384 | | | | | | 2,256(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 3,760 | | | | | | 2,506(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 4,202 | | | | | | 2,801(5) | | | | | | — | | | | | | — | | |
Kevin Doran
|
| |
April 15, 2019
|
| | | | 4,307 | | | | | | 2,871(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 4,785 | | | | | | 3,190(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 5,348 | | | | | | 3,566(5) | | | | | | — | | | | | | — | | |
| | |
For the Nine Months Ended
|
| |
For the Years Ended
|
| ||||||||||||||||||
(in thousands except per unit data)
|
| |
October 2, 2021
|
| |
October 3, 2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Statement of Operations and Comprehensive Loss
Data |
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | | 465,184 | | | | | | 524,080 | | | | | | 656,524 | | | | | | 599,268 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 372,496 | | | | | | 462,760 | | | | | | 597,583 | | | | | | 525,403 | | |
General and administrative
|
| | | | 37,962 | | | | | | 35,660 | | | | | | 47,049 | | | | | | 42,665 | | |
Transaction expenses
|
| | | | 2,875 | | | | | | 567 | | | | | | 988 | | | | | | 4,257 | | |
Change in fair value of contingent consideration
|
| | | | (4,544) | | | | | | — | | | | | | (7,081) | | | | | | 6,149 | | |
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | 840 | | |
Impairment of goodwill
|
| | | | — | | | | | | — | | | | | | 28,802 | | | | | | 8,132 | | |
Depreciation and amortization
|
| | | | 39,136 | | | | | | 34,761 | | | | | | 46,475 | | | | | | 40,103 | | |
Total costs and expenses
|
| | | | 447,925 | | | | | | 533,748 | | | | | | 713,816 | | | | | | 627,549 | | |
Income (loss) from operations
|
| | | | 17,259 | | | | | | (9,668) | | | | | | (57,292) | | | | | | (28,281) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale/disposal of property and equipment
|
| | | | 514 | | | | | | 576 | | | | | | 729 | | | | | | 129 | | |
Interest expense
|
| | | | (35,778) | | | | | | (28,824) | | | | | | (37,659) | | | | | | (33,380) | | |
Loss on extinguishment of convertible notes
|
| | | | (2,436) | | | | | | — | | | | | | — | | | | | | — | | |
Total other expense
|
| | | | (37,700) | | | | | | (28,248) | | | | | | (36,930) | | | | | | (33,251) | | |
Loss from continuing operations
|
| | | | (20,441) | | | | | | (37,916) | | | | | | (94,222) | | | | | | (61,532) | | |
Loss from discontinued operations
|
| | | | (8,114) | | | | | | (1,708) | | | | | | (3,865) | | | | | | (6,262) | | |
Net loss
|
| | | | (28,555) | | | | | | (39,624) | | | | | | (98,087) | | | | | | (67,794) | | |
Accrued preferred return
|
| | | | 1,638 | | | | | | 2,508 | | | | | | 3,287 | | | | | | 742 | | |
Net loss attributable to Class A units
|
| | | | (30,193) | | | | | | (42,132) | | | | | | (101,374) | | | | | | (68,536) | | |
Net loss per unit: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per unit from continuing operations
|
| | | $ | (10.21) | | | | | $ | (20.15) | | | | | $ | (48.61) | | | | | $ | (31.74) | | |
Basic and diluted net loss per unit from discontinued operations
|
| | | | (3.75) | | | | | | (0.85) | | | | | | (1.93) | | | | | | (3.19) | | |
Basic and diluted net loss per unit
|
| | | $ | (13.96) | | | | | $ | (21.00) | | | | | $ | (50.54) | | | | | $ | (34.93) | | |
Basic and diluted weighted average common units outstanding
|
| | | | 2,161,951 | | | | | | 2,005,824 | | | | | | 2,005,824 | | | | | | 1,962,115 | | |
Non-GAAP financial data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(1)
|
| | | | 55,991 | | | | | | 26,627 | | | | | | 13,139 | | | | | | 31,870 | | |
| | |
As of October 2,
|
| |
As of December 31,
|
| ||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 5,405 | | | | | $ | 76 | | | | | $ | 91 | | |
Working capital(2)
|
| | | | 199 | | | | | | 15,775 | | | | | | 71,316 | | |
Total assets
|
| | | | 769,565 | | | | | | 640,868 | | | | | | 747,230 | | |
Total liabilities
|
| | | | 758,708 | | | | | | 611,234 | | | | | | 613,072 | | |
Total equity
|
| | | | 10,857 | | | | | | 29,634 | | | | | | 134,158 | | |
| | |
For the Nine Months Ended
|
| |||||||||
(in thousands)
|
| |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Revenue
|
| | | $ | 465,184 | | | | | $ | 524,080 | | |
Net loss
|
| | | $ | (28,555) | | | | | $ | (39,624) | | |
Adjusted EBITDA(1)
|
| | | $ | 55,991 | | | | | $ | 26,627 | | |
| | |
For the Nine Months Ended
|
| |||||||||
(in thousands)
|
| |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Net loss
|
| | | $ | (28,555) | | | | | $ | (39,624) | | |
Management fees
|
| | | | 751 | | | | | | 391 | | |
Transaction expenses
|
| | | | 2,875 | | | | | | 567 | | |
Change in fair value of contingent consideration
|
| | | | (4,544) | | | | | | — | | |
Depreciation and amortization
|
| | | | 39,136 | | | | | | 34,761 | | |
Interest expense
|
| | | | 35,778 | | | | | | 28,824 | | |
Loss on extinguishment of convertible notes
|
| | | | 2,436 | | | | | | — | | |
Loss from discontinued operations
|
| | | | 8,114 | | | | | | 1,708 | | |
Adjusted EBITDA
|
| | | $ | 55,991 | | | | | $ | 26,627 | | |
| | |
For the Nine Months Ended
|
| |||||||||||||||||||||
(in thousands)
|
| |
October 2, 2021
|
| |
October 3, 2020
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue
|
| | | $ | 465,184 | | | | | $ | 524,080 | | | | | ($ | 58,896) | | | | | | (11.2)% | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 372,496 | | | | | | 462,760 | | | | | | (90,264) | | | | | | (19.5)% | | |
General and administrative
|
| | | | 37,962 | | | | | | 35,660 | | | | | | 2,302 | | | | | | 6.5% | | |
Transaction expense
|
| | | | 2,875 | | | | | | 567 | | | | | | 2,308 | | | | | | 407.1% | | |
Change in fair value of contingent consideration
|
| | | | (4,544) | | | | | | — | | | | | | (4,544) | | | | | | (100)% | | |
Depreciation and amortization
|
| | | | 39,136 | | | | | | 34,761 | | | | | | 4,375 | | | | | | 12.6% | | |
Total costs and expenses
|
| | | | 447,925 | | | | | | 533,748 | | | | | | (85,823) | | | | | | (16.1)% | | |
Income / (loss) from operations
|
| | | | 17,259 | | | | | | (9,668) | | | | | | 26,927 | | | | | | 278.5% | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sales/disposal of property and equipment
|
| | | | 514 | | | | | | 576 | | | | | | (62) | | | | | | (10.8)% | | |
Interest expense
|
| | | | (35,778) | | | | | | (28,824) | | | | | | (6,954) | | | | | | 24.1% | | |
Loss on extinguishment of convertible notes
|
| | | | (2,436) | | | | | | — | | | | | | (2,436) | | | | | | (100.0)% | | |
Total other expense
|
| | | $ | (37,700) | | | | | $ | (28,248) | | | | | $ | (9,452) | | | | | | (33.5)% | | |
Net loss from continuing operations
|
| | | | (20,441) | | | | | | (37,916) | | | | | | 17,475 | | | | | | 46.1% | | |
Net loss from discontinued operations
|
| | | | (8,114) | | | | | | (1,708) | | | | | | (6,406) | | | | | | (375)% | | |
Net loss
|
| | | $ | (28,555) | | | | | $ | (39,624) | | | | | $ | 11,069 | | | | | | 27.9% | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue
|
| | | $ | 656,524 | | | | | $ | 599,268 | | | | | | 57,256 | | | | | | 9.6% | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 597,583 | | | | | | 525,403 | | | | | | 72,180 | | | | | | 13.7% | | |
General and administrative
|
| | | | 47,049 | | | | | | 42,665 | | | | | | 4,384 | | | | | | 10.3% | | |
Transaction expense
|
| | | | 988 | | | | | | 4,257 | | | | | | (3,269) | | | | | | (76.8)% | | |
Change in fair value of contingent consideration
|
| | | | (7,081) | | | | | | 6,149 | | | | | | (13,230) | | | | | | (215.2)% | | |
Impairment of long-lived assets
|
| | | | — | | | | | | 840 | | | | | | (840) | | | | | | (100.0)% | | |
Impairment of goodwill
|
| | | | 28,802 | | | | | | 8,132 | | | | | | 20,670 | | | | | | 254.2% | | |
Depreciation and amortization
|
| | | | 46,475 | | | | | | 40,103 | | | | | | 6,372 | | | | | | 15.9% | | |
Total costs and expenses
|
| | | | 713,816 | | | | | | 627,549 | | | | | | 86,267 | | | | | | 13.7% | | |
Loss from operations
|
| | | | (57,292) | | | | | | (28,281) | | | | | | (29,011) | | | | | | (102.6)% | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sales/disposal of property and equipment
|
| | | | 729 | | | | | | 129 | | | | | | 600 | | | | | | 465.1% | | |
Interest expense
|
| | | | (37,659) | | | | | | (33,380) | | | | | | (4,279) | | | | | | 12.8% | | |
Total other expense
|
| | | | (36,930) | | | | | | (33,251) | | | | | | (3,679) | | | | | | 11.1% | | |
Net loss from continuing operations
|
| | | $ | (94,222) | | | | | $ | (61,532) | | | | | $ | (32,690) | | | | | | (53.1)% | | |
Net loss from discontinued operations
|
| | | $ | (3,865) | | | | | $ | (6,262) | | | | | $ | 2,397 | | | | | | 38.3% | | |
Net loss
|
| | | $ | (98,087) | | | | | $ | (67,794) | | | | | $ | (30,293) | | | | | | 44.7% | | |
| | |
For the Nine Months Ended
|
| |||||||||||||||||||||
(in thousands)
|
| |
October 2, 2021
|
| |
October 3, 2020
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Telecom
|
| | | $ | 360,020 | | | | | $ | 468,729 | | | | | | (108,709) | | | | | | -23.2% | | |
Renewables and Recovery Logistics
|
| | | | 105,164 | | | | | | 55,351 | | | | | | 49,813 | | | | | | 90.0% | | |
Total revenue
|
| | | $ | 465,184 | | | | | $ | 524,080 | | | | | | (58,896) | | | | | | -11.2% | | |
Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | | 26,907 | | | | | | 16,028 | | | | | | 10,879 | | | | | | 67.9% | | |
Renewables and Recovery Logistics
|
| | | | 42,181 | | | | | | 24,227 | | | | | | 17,954 | | | | | | 74.1% | | |
Corporate & Eliminations
|
| | | | (13,097) | | | | | | (13,628) | | | | | | 531 | | | | | | -3.9% | | |
Total Adjusted EBITDA
|
| | | $ | 55,991 | | | | | $ | 26,627 | | | | | | 29,364 | | | | | | 110.3% | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | $ | 587,614 | | | | | $ | 568,342 | | | | | $ | 19,272 | | | | | | 3.4% | | |
Renewables and Recovery Logistics
|
| | | | 68,910 | | | | | | 30,926 | | | | | $ | 37,984 | | | | | | 122.8% | | |
Total revenue
|
| | | $ | 656,524 | | | | | $ | 599,268 | | | | | $ | 57,256 | | | | | | 9.6% | | |
Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | $ | 2,409 | | | | | $ | 37,063 | | | | | $ | (34,654) | | | | | | (93.5)% | | |
Renewables and Recovery Logistics
|
| | | | 28,943 | | | | | | 11,442 | | | | | $ | 17,501 | | | | | | 153.0% | | |
Corporate & Eliminations
|
| | | | (18,213) | | | | | | (16,635) | | | | | $ | (1,578) | | | | | | 9.5% | | |
Total Adjusted EBITDA
|
| | | | 13,139 | | | | | | 31,870 | | | | | $ | (18,731) | | | | | | (58.8)% | | |
| | |
For the Nine Months Ended
|
| |
For the Years Ended December 31,
|
| | ||||||||||||||||||||
(in thousands)
|
| |
October 2, 2021
|
| |
October 3, 2020
|
| |
2020
|
| |
2019
|
| | ||||||||||||||
Net cash (used in) provided by operating Activities from continuing operations
|
| | | $ | (32,959) | | | | | $ | (7,576) | | | | | $ | 14,557 | | | | | $ | (2.541) | | | | ||
Net cash used in investing activities from continuing operations
|
| | | | (38,533) | | | | | | (3,218) | | | | | | (3,927) | | | | | | (79,117) | | | | ||
Net cash provided by (used in) financing Activities from continuing operations
|
| | | | 79,779 | | | | | | 14,495 | | | | | | (8,751) | | | | | | 83,112 | | | | ||
Effect of foreign currency exchange rate (translation) on cash .
|
| | | | (35) | | | | | | 21 | | | | | | 59 | | | | | | 23 | | | | | |
Net increase/(decrease) in cash
|
| | | $ | 6,508 | | | | | $ | 2,034 | | | | | $ | (159) | | | | | $ | (633) | | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
Line of credit
|
| | | $ | 59,837 | | | | | | — | | | | | | 59,837 | | | | | | — | | | | | | — | | |
Term loan
|
| | | | 361,045 | | | | | | 9,564 | | | | | | 19,128 | | | | | | 332,353 | | | | | | — | | |
Capital lease obligations
|
| | | | 25,751 | | | | | | 8,287 | | | | | | 13,715 | | | | | | 3,749 | | | | | | — | | |
Operating leases
|
| | | | 35,219 | | | | | | 9,673 | | | | | | 13,855 | | | | | | 5,223 | | | | | | 6,468 | | |
Acquisition debt
|
| | | | 10,575 | | | | | | 10,575 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 492,427 | | | | | | 38,099 | | | | | | 106,535 | | | | | | 341,325 | | | | | | 6,468 | | |
Name
|
| |
Age
|
| |
Position
|
|
Christopher S. Hisey(1) | | |
56
|
| | Chief Executive Officer and Director | |
Elizabeth Downey | | |
52
|
| | Chief Administrative Officer | |
Michael B. Williams | | |
44
|
| | Chief Business Officer | |
Adam Spittler | | |
42
|
| | Chief Financial Officer | |
Andrew Weinberg(1) | | |
47
|
| | Chairman | |
Matthew Allard(1) | | |
49
|
| | Director | |
Sam Chawla(2) | | |
47
|
| | Director | |
Raul Deju(1) | | |
75
|
| | Director | |
Roger Bulloch(1) | | |
48
|
| | Director | |
Maha Eltobgy(1) | | |
50
|
| | Director | |
Renee Noto(1) | | |
55
|
| | Director | |
Jigisha Desai(3) | | |
[•]
|
| | Director | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| |||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No Redemption
|
| |
Assuming 100% Redemption
|
| | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |||||||||||||||
Directors and Executive Officers of ROCR:
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
%
|
| | | | | | | | | | | | | |
Byron Roth(2)
|
| | | | 1,028,876 | | | | | | 7.0% | | | | | | 1,654,626 | | | | | | | | | | | | | | | 1,654,626 | | | | | | | | |
Aaron Gurewitz(3)
|
| | | | 119,540 | | | | | | 0.8% | | | | | | 119,540 | | | | | | | | | | | | | | | 119,540 | | | | | | | | |
Gordon Roth(2)
|
| | | | 672,956 | | | | | | 4.6% | | | | | | 1,298,706 | | | | | | | | | | | | | | | 1,298,706 | | | | | | | | |
John Lipman
|
| | | | 699,381 | | | | | | 4.7% | | | | | | 796,862 | | | | | | | | | | | | | | | 796,862 | | | | | | | | |
Rick Hartfiel
|
| | | | 89,577 | | | | | | * | | | | | | 102,062 | | | | | | | | | | | | | | | 102,062 | | | | | | | | |
Molly Montgomery
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | | | | | | | | | | 40,233 | | | | | | | | |
David M. Friedberg(4)
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | | | | | | | | | | 40,233 | | | | | | | | |
Adam Rothstein
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | | | | | | | | | | 40,233 | | | | | | | | |
Sam Chawla
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | | | | | | | | | | 91,194 | | | | | | | | |
James Gold
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | | | | | | | | | | 91,194 | | | | | | | | |
All Directors and Executive Officers of ROCR as a Group (8 Individuals)
|
| | | | 2,332,813 | | | | | | 15.8% | | | | | | 3,068,529 | | | | | | | | | | | | | | | 3,068,529 | | | | | | | | |
Five Percent Holders ROCR:
|
| | | | | | | | | | | | | | | | | | | | | | | | | % | | | | | | | | | | | | | | |
Byron Roth (5)
|
| | | | 1,028,876 | | | | | | 7.0% | | | | | | 1,654,626 | | | | | | | | | | | | | | | 1,654,626 | | | | | | | | |
Sanders Morris Harris LLC(6)
|
| | | | 873,035 | | | | | | 5.9% | | | | | | 1,991,535 | | | | | | | | | | | | | | | 1,991,535 | | | | | | | | |
Glazer Capital, LLC(7)
|
| | | | 740,954 | | | | | | 5.0% | | | | | | 740,954 | | | | | | | | | | | | | | | 740,954 | | | | | | | | |
Directors and Executive Officers of Combined Company After Consummation of the Business Combination:
|
| | | | | | | | |
|
%
|
| | | | | | | | | | | | |
|
%
|
| | | | | | | | | | | | | |
Christopher S. Hisey
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elizabeth Downey
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael B. Williams
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adam Spittler
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Andrew Weinberg
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Matthew Allard
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sam Chawla
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Raul Deju
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Roger Bulloch
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Maha Eltobgy
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| |||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No Redemption
|
| |
Assuming 100% Redemption
|
| | | | |||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |||||||||
Renee Noto
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | |
Jigisha Desai
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of Combined Company as a Group
(12 Individuals) |
| | | | | | | | | | | | | | | | | | | | |
|
%
|
| | | | | | | | | | |
Five Percent Holders of Combined
Company After Consummation of the Business Combination: |
| | | | | | | | | | | | | | | | | | | | |
|
%
|
| | | | | | | | | | |
Brightstar(8)
|
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Current Charter
|
| |
Proposed Certificate of Incorporation
|
|
Number of Authorized Shares | | | | | | | |
a)
Common Stock
|
| | 50,000,000 | | | Class A Common Stock [•] | |
b)
Preferred Stock
|
| | 0 | | |
Class B Common Stock [•]
Preferred Stock [•]
|
|
Voting Power | | | | | | | |
a)
Director Removal
|
| | 60% of the voting power of the outstanding shares of capital stock | | | Majority of the voting power of the outstanding shares of capital stock | |
b)
Amend/Repeal Bylaws
|
| | Board of Directors, acting alone, without consent of the stockholders | | | Board of Directors, acting alone, without consent of the stockholders | |
c)
Amend/Repeal Certificate of Incorporation
|
| | Not specified | | | Majority of the voting power of the outstanding shares of capital stock | |
Liquidation, Dissolution and Winding Up | | | Redemption of the IPO Shares for cash and distribution of remaining assets to stockholders in accordance with DGCL | | | Assets to be distributed pro-rata to the holders of Class A Common Stock, after payment or provision for payment of the debts and other liabilities of the Company and of the preferential and other amounts, amounts, if any, to which the holders of Preferred Stock are entitled | |
| | |
PAGE
|
|
Roth CH Acquisition III Co. Audited Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
Roth CH Acquisition III Co. Unaudited Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
BCP QualTek Holdco, LLC and Subsidiary Audited Consolidated Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
BCP QualTek Holdco, LLC and Subsidiary Unaudited Consolidated Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 195,758 | | | | | $ | 25,000 | | |
Other current asset
|
| | | | 1,500 | | | | | | — | | |
Total Current Assets
|
| | | | 197,258 | | | | | | 25,000 | | |
Deferred offering costs
|
| | | | 31,542 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 228,800 | | | | | $ | 25,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 1,000 | | | | | $ | 1,225 | | |
Accrued offering costs
|
| | | | 5,000 | | | | | | — | | |
Promissory note – related party
|
| | | | 200,000 | | | | | | — | | |
Total Current Liabilities
|
| | | | 206,000 | | | | | | 1,225 | | |
Commitments | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 2,875,000 shares issued and outstanding as of December 31, 2020 and December 31, 2019(1)
|
| | | | 288 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | 24,712 | | | | | | 24,712 | | |
Accumulated deficit
|
| | | | (2,200) | | | | | | (1,225) | | |
Total Stockholders’ Equity
|
| | | | 22,800 | | | | | | 23,775 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 228,800 | | | | | $ | 25,000 | | |
| | |
For the Year
Ended December 31, 2020 |
| |
For the Period
from February 13, 2019 (Inception) Through December 31, 2019 |
| ||||||
Formation and operating costs
|
| | | $ | 975 | | | | | $ | 1,225 | | |
Net Loss
|
| | | $ | (975) | | | | | $ | (1,225) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 2,500,000 | | | | | | 2,500,000 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.00) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | | | | | | | ||||||
Balance – February 13, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to Initial Stockholders(1)
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,225) | | | | | | (1,225) | | |
Balance – December 31, 2019
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,225) | | | | | | 23,775 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (975) | | | | | | (975) | | |
Balance – December 31, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (2,200) | | | | | $ | 22,800 | | |
| | |
For the Year
ended December 31, 2020 |
| |
For the Period
from February 13, 2019 (Inception) Through December 31, 2019 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (975) | | | | | $ | (1,225) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Other current asset
|
| | | | (1,500) | | | | | | — | | |
Accrued expenses
|
| | | | (225) | | | | | | 1,225 | | |
Net cash used in operating activities
|
| | | | (2,700) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of common stock to Initial Stockholders
|
| | | | — | | | | | | 25,000 | | |
Proceeds from promissory note – related party
|
| | | | 200,000 | | | | | | — | | |
Payments of offering costs
|
| | | | (26,542) | | | | | | — | | |
Net cash provided by operating activities
|
| | | | 173,458 | | | | | | 25,000 | | |
Net Change in Cash
|
| | | | 170,758 | | | | |
|
25,000
|
| |
Cash – Beginning
|
| | | | 25,000 | | | | | | — | | |
Cash – Ending | | | | $ | 195,758 | | | | | $ | 25,000 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Deferred offering costs included in accrued offering costs
|
| | | $ | 5,000 | | | | | $ | — | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 93,594 | | | | | $ | 195,758 | | |
Prepaid expenses
|
| | | | 286,946 | | | | | | 1,500 | | |
Total Current Assets
|
| | | | 380,540 | | | | | | 197,258 | | |
Deferred offering costs
|
| | | | — | | | | | | 31,542 | | |
Marketable securities held in Trust Account
|
| | | | 115,007,452 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 115,387,992 | | | | | $ | 228,800 | | |
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 393,287 | | | | | $ | 1,000 | | |
Accrued offering costs
|
| | | | 1,105 | | | | | | 5,000 | | |
Promissory note – related party
|
| | | | — | | | | | | 200,000 | | |
Total Current Liabilities
|
| | | | 394,392 | | | | | | 206,000 | | |
Warrant liability
|
| | | | 217,260 | | | | | | — | | |
Total Liabilities
|
| | | | 611,652 | | | | | | 206,000 | | |
Commitments | | | | | | | | | | | | | |
Common stock subject to possible redemption 11,500,000 and no shares at redemption value at September 30, 2021 and December 31, 2020, respectively
|
| | | | 115,000,000 | | | | | | — | | |
Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,283,000 and 2,875,000 shares issued and outstanding (excluding 11,500,000 and no shares subject to possible redemption) as of September 30, 2021 and December 31, 2020, respectively
|
| | | | 328 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | 1,200,660 | | | | | | 24,712 | | |
Accumulated deficit
|
| | | | (1,424,648) | | | | | | (2,200) | | |
Total Stockholders’ (Deficit) Equity
|
| | | | (223,660) | | | | | | 22,800 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
|
| | | $ | 115,387,992 | | | | | $ | 228,800 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
General and administrative expenses
|
| | | $ | 909,139 | | | | | $ | 800 | | | | | $ | 1,304,440 | | | | | $ | 885 | | |
Loss from operations
|
| | | | (909,139) | | | | | | (800) | | | | | | (1,304,440) | | | | | | (885) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liability
|
| | | | 97,920 | | | | | | — | | | | | | (125,460) | | | | | | — | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 1,479 | | | | | | — | | | | | | 7,452 | | | | | | — | | |
Other income (expense), net
|
| | | | 99,399 | | | | | | — | | | | | | (118,008) | | | | | | — | | |
Net loss
|
| | | $ | (809,740) | | | | | $ | (800) | | | | | $ | (1,422,448) | | | | | $ | (885) | | |
Basic and diluted weighted average shares outstanding, redeemable common stock
|
| | | | 11,500,000 | | | | | | — | | | | | | 8,804,029 | | | | | | — | | |
Basic and diluted net loss per share, redeemable common stock
|
| | | $ | (0.05) | | | | | $ | (0.00) | | | | | $ | (0.12) | | | | | $ | (0.00) | | |
Basic and diluted weighted average shares outstanding, non-redeemable common stock
|
| | | | 3,283,000 | | | | | | 2,500,000 | | | | | | 3,099,440 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, non-redeemable
common stock |
| | | $ | (0.05) | | | | | $ | (0.00) | | | | | $ | (0.12) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2021
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (2,200) | | | | | $ | 22,800 | | |
Accretion for common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | (2,812,212) | | | | | | — | | | | | | (2,812,212) | | |
Sale of 408,000 Private Units
|
| | | | 408,000 | | | | | | 40 | | | | | | 3,988,160 | | | | | | — | | | | | | 3,988,200 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (28,740) | | | | | | (28,740) | | |
Balance – March 31, 2021 (Restated)
|
| | | | 3,283,000 | | | | | | 328 | | | | | | 1,200,660 | | | | | | (30,940) | | | | | | 1,170,048 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (583,968) | | | | | | (583,968) | | |
Balance – June 30, 2021 (Restated)
|
| | | | 3,283,000 | | | | | | 328 | | | | | | 1,200,660 | | | | | | (614,908) | | | | | | 586,080 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (809,740) | | | | | | (809,740) | | |
Balance – September 30, 2021
|
| | | | 3,283,000 | | | | | $ | 328 | | | | | $ | 1,200,660 | | | | | $ | (1,424,648) | | | | | $ | (223,660) | | |
| | |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (1,225) | | | | | $ | 23,775 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (85) | | | | | | (85) | | |
Balance – March 31, 2020
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,310) | | | | | | 23,690 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance – June 30, 2020
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,310) | | | | | | 23,690 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (800) | | | | | | (800) | | |
Balance – September 30, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (2,110) | | | | | $ | 22,890 | | |
| | |
Nine Months Ended
|
| |||||||||
| | |
September 30,
2021 |
| |
September 30,
2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,422,448) | | | | | $ | (885) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Change in fair value of warrants
|
| | | | 125,460 | | | | | | — | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (7,452) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | (285,446) | | | | | | — | | |
Accounts payable and accrued expenses
|
| | | | 392,287 | | | | | | (225) | | |
Net cash used in operating activities
|
| | |
|
(1,197,599)
|
| | | | | (1,110) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | $ | (115,000,000) | | | | | $ | — | | |
Net cash used in investing activities
|
| | |
|
(115,000,000)
|
| | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | $ | 112,700,000 | | | | | $ | — | | |
Proceeds from sale of Private Placement Units
|
| | | | 4,080,000 | | | | | | — | | |
Repayment of promissory note – related party
|
| | | | (200,000) | | | | | | — | | |
Payment of offering costs
|
| | | | (484,565) | | | | | | (723) | | |
Net cash provided by (used in) financing activities
|
| | |
|
116,095,435
|
| | | | | (723) | | |
Net Change in Cash
|
| | |
|
(102,164)
|
| | | | | (1,833) | | |
Cash – Beginning of period
|
| | | | 195,758 | | | | | | 25,000 | | |
Cash – End of period
|
| | | $ | 93,594 | | | | | $ | 23,167 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Offering costs included in accrued offering costs
|
| | | $ | 1,105 | | | | | $ | — | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 115,000,000 | | | | | $ | — | | |
Balance Sheet as of March 05, 2021 (unaudited)
|
| |
As Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Common stock subject to possible redemption
|
| | | $ | 111,197,990 | | | | | $ | 3,802,010 | | | | | $ | 115,000,000 | | |
Common stock
|
| | | $ | 366 | | | | | $ | (38) | | | | | $ | 328 | | |
Additional paid-in capital
|
| | | $ | 5,002,631 | | | | | $ | (3,801,972) | | | | | $ | 1,200,659 | | |
Balance Sheet as of March 05, 2021 (unaudited)
|
| |
As Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total Stockholders’ Equity
|
| | | $ | 5,000,008 | | | | | $ | (3,802,010) | | | | | $ | 1,197,998 | | |
Number of shares subject to redemption
|
| | | | 11,119,799 | | | | | | 380,201 | | | | | | 11,500,000 | | |
Number of shares, non-redeemable common stock
|
| | | | 3,663,201 | | | | | | (380,201) | | | | | | 3,283,000 | | |
Balance Sheet as of March 31, 2021 (unaudited) | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption
|
| | | $ | 111,170,039 | | | | | $ | 3,829,961 | | | | | $ | 115,000,000 | | |
Common stock
|
| | | $ | 366 | | | | | $ | (38) | | | | | $ | 328 | | |
Additional paid-in capital
|
| | | $ | 5,030,583 | | | | | $ | (3,829,923) | | | | | $ | 1,200,660 | | |
Total Stockholders’ Equity
|
| | | $ | 5,000,009 | | | | | $ | (3,829,961) | | | | | $ | 1,170,048 | | |
Number of shares subject to redemption
|
| | | | 11,117,004 | | | | | | 382,996 | | | | | | 11,500,000 | | |
Number of shares, non-redeemable common stock
|
| | | | 3,665,996 | | | | | | (382,996) | | | | | | 3,283,000 | | |
Balance Sheet as of June 30, 2021 (unaudited) | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption
|
| | | $ | 110,586,069 | | | | | $ | 4,413,931 | | | | | $ | 115,000,000 | | |
Common stock
|
| | | $ | 372 | | | | | $ | (44) | | | | | $ | 328 | | |
Additional paid-in capital
|
| | | $ | 5,614,547 | | | | | $ | (4,413,887) | | | | | $ | 1,200,660 | | |
Total Stockholders’ Equity
|
| | | $ | 5,000,011 | | | | | $ | (4,413,931) | | | | | $ | 586,080 | | |
Number of shares subject to redemption
|
| | | | 11,058,607 | | | | | | 441,393 | | | | | | 11,500,000 | | |
Number of shares, non-redeemable common stock
|
| | | | 3,724,393 | | | | | | (441,393) | | | | | | 3,283,000 | | |
Statement of Operations for the Three Months Ended March 31, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption
|
| | | | 3,212,386 | | | | | | 109,836 | | | | | | 3,322,222 | | |
Basic and diluted net loss per share, Common stock subject to possible redemption
|
| | | $ | (0.00) | | | | | $ | — | | | | | $ | (0.00) | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 2,836,036 | | | | | | (109,836) | | | | | $ | 2,726,200 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.01) | | | | | $ | 0.01 | | | | | $ | (0.00) | | |
Statement of Operations for the Three Months Ended June 30, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption
|
| | | | 11,117,004 | | | | | | 382,996 | | | | | | 11,500,000 | | |
Basic and diluted net loss per share, Common stock subject to possible redemption
|
| | | $ | 0.00 | | | | | $ | (0.04) | | | | | $ | (0.04) | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 3,665,996 | | | | | | (382,996) | | | | | | 3,283,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.16) | | | | | $ | 0.12 | | | | | $ | (0.04) | | |
Statement of Operations for the Six Months Ended June 30, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption
|
| | | | 11,117,625 | | | | | | (3,683,923) | | | | | | 7,433,702 | | |
Balance Sheet as of March 05, 2021 (unaudited)
|
| |
As Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Basic and diluted net loss per share, Common stock subject to possible redemption
|
| | | $ | 0.00 | | | | | $ | (0.06) | | | | | $ | (0.06) | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 3,253,309 | | | | | | (247,171) | | | | | | 3,006,138 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.19) | | | | | $ | 0.13 | | | | | $ | (0.06) | | |
Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 111,197,990 | | | | | $ | 3,802,010 | | | | | $ | 115,000,000 | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (27,591) | | | | | $ | 27,591 | | | | | $ | — | | |
Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 111,197,990 | | | | | $ | 3,802,010 | | | | | $ | 115,000,000 | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (611,921) | | | | | $ | 611,921 | | | | | $ | — | | |
Statement of Changes in Stockholders’ (Deficit) Equity for
the Three Months Ended March 31, 2021 (unaudited) |
| | | | | | | | | | | | | | | | | | |
Sale of 11,500,000 Units, net of underwriting discounts and offering expenses
|
| | | $ | 112,187,788 | | | | | $ | (112,187,788) | | | | | $ | — | | |
Common stock subject to redemption
|
| | | $ | (111,170,139) | | | | | $ | 111,170,039 | | | | | $ | — | | |
Accretion for common stock subject to redemption
|
| | | $ | — | | | | | $ | (2,812,212) | | | | | $ | (2,812,212) | | |
Total shareholders’ equity
|
| | | $ | 5,000,009 | | | | | $ | (3,829,961) | | | | | $ | 1,170,048 | | |
Shares of common stock
|
| | | | 3,665,996 | | | | | | 382,996 | | | | | | 3,283,000 | | |
Common stock
|
| | | $ | 366 | | | | | $ | (38) | | | | | $ | 328 | | |
Statement of Changes in Stockholders’ (Deficit) Equity for
the Three Months Ended June 30, 2021 (unaudited) |
| | | | | | | | | | | | | | | | | | |
Change in value of common stock subject to redemption
|
| | | $ | 583,970 | | | | | $ | (583,970) | | | | | $ | — | | |
Total shareholders’ equity
|
| | | $ | 5,000,011 | | | | | $ | (4,413,931) | | | | | $ | 586,080 | | |
Shares of common stock
|
| | | | 3,724,393 | | | | | | 441,393 | | | | | | 3,283,000 | | |
Common stock
|
| | | $ | 372 | | | | | $ | (44) | | | | | $ | 328 | | |
|
Gross proceeds
|
| | | $ | 115,000,000 | | |
| Less: | | | | | | | |
|
Common stock issuance costs
|
| | | | (2,812,212) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 2,812,212 | | |
|
Common stock subject to possible redemption
|
| | | $ | 115,000,000 | | |
| | |
Three Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2021 |
| |
For the Period from 2/13/19
(Inception) Through September 30, 2020 |
| |||||||||||||||||||||
| | |
Redeemable
common stock |
| |
Non-redeemable
common stock |
| |
Redeemable
common stock |
| |
Non-redeemable
common stock |
| |
Non-redeemable
common stock |
| |||||||||||||||
Basic and diluted net loss
per common share |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net loss, as
adjusted |
| | | $ | (629,913) | | | | | $ | (179,827) | | | | | $ | (1,052,069) | | | | | $ | (370,379) | | | | | $ | (800) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding
|
| | | | 11,500,000 | | | | | | 3,283,000 | | | | | | 8,804,029 | | | | | | 3,099,440 | | | | | | 2,500,000 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.05) | | | | | $ | (0.05) | | | | | $ | (0.12) | | | | | $ | (0.12) | | | | | $ | (0.00) | | |
| | |
Three Months Ended
September 30, 2020 |
| |
Nine Months Ended
September 30, 2020 |
| ||||||
| | |
Non-redeemable
common stock |
| |
Non-redeemable
common stock |
| ||||||
Basic and diluted net loss per common share | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Allocation of net loss, as adjusted
|
| | | $ | (800) | | | | | $ | (885) | | |
Denominator: | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding
|
| | | | 2,500,000 | | | | | | 2,500,000 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.00) | | | | | $ | (0.00) | | |
| | |
Description
|
| |
September 30,
2021 |
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| ||||||||||||
Assets:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and marketable securities held in Trust Account
|
| | | | | | $ | 115,007,452 | | | | | $ | 115,007,452 | | | | | $ | — | | | | | $ | — | | |
Liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant Liability – Private Placement Warrants
|
| | | | | | $ | 217,260 | | | | | $ | — | | | | | $ | — | | | | | $ | 217,260 | | |
| | |
At
March 5, 2021 (Initial Measurement) |
| |
At
September 30, 2021 |
| ||||||
Stock price
|
| | | $ | 9.78 | | | | | $ | 9.94 | | |
Strike price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Volatility
|
| | | | 14.9% | | | | | | 19.8% | | |
Risk-free rate
|
| | | | 0.87% | | | | | | 0.95% | | |
Probability of Business Combination occurring
|
| | | | 75% | | | | | | 90.0% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
Fair value of Private Placement Warrants
|
| | | $ | 0.90 | | | | | $ | 2.13 | | |
| | |
Warrant Liabilities
|
| |||
Fair value as of March 5, 2021 (Initial Measurement)
|
| | | $ | 91,800 | | |
Change in fair value
|
| | | | (9,180) | | |
Fair value as of March 31, 2021
|
| | | | 82,620 | | |
Change in fair value
|
| | | | 232,560 | | |
Fair value as of June 30, 2021
|
| | | $ | 315,180 | | |
Change in fair value
|
| | | | (97,920) | | |
Fair value as of September 30, 2021
|
| | | $ | 217,260 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | |
$
|
76
|
| | | | $ | 91 | | |
Accounts receivable, net of allowance
|
| | |
|
174,797
|
| | | | | 228,659 | | |
Inventories, net
|
| | |
|
5,765
|
| | | | | 7,790 | | |
Prepaid expenses
|
| | |
|
3,459
|
| | | | | 4,130 | | |
Other current assets
|
| | |
|
1,592
|
| | | | | 1,608 | | |
Current assets of discontinued operations
|
| | |
|
6,534
|
| | | | | 6,736 | | |
Total current assets
|
| | |
|
192,223
|
| | | | | 249,014 | | |
Property and equipment, net
|
| | |
|
33,794
|
| | | | | 18,173 | | |
Intangible assets, net
|
| | |
|
345,816
|
| | | | | 381,573 | | |
Goodwill
|
| | |
|
58,522
|
| | | | | 86,503 | | |
Other long-term assets
|
| | |
|
1,241
|
| | | | | 842 | | |
Non-current assets of discontinued operations
|
| | |
|
9,272
|
| | | | | 11,125 | | |
Total assets
|
| | | $ | 640,868 | | | | |
$
|
747,230
|
| |
Liabilities and Equity | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | |
Current portion of long-term debt and capital lease obligations
|
| | |
$
|
27,249
|
| | | | $ | 13,466 | | |
Current portion of contingent consideration
|
| | |
|
9,968
|
| | | | | 10,808 | | |
Accounts payable
|
| | |
|
55,749
|
| | | | | 70,964 | | |
Accrued expenses
|
| | |
|
65,172
|
| | | | | 61,144 | | |
Contract liabilities
|
| | |
|
14,945
|
| | | | | 18,470 | | |
Current liabilities of discontinued operations
|
| | |
|
3,365
|
| | | | | 2,846 | | |
Total current liabilities
|
| | |
|
176,448
|
| | | | | 177,698 | | |
Capital lease obligations, net of current portion
|
| | |
|
15,959
|
| | | | | 6,730 | | |
Long-term debt, net of current portion and deferred financing fees
|
| | |
|
397,464
|
| | | | | 390,769 | | |
Contingent consideration, net of current portion
|
| | |
|
8,161
|
| | | | | 29,311 | | |
Distributions payable
|
| | |
|
11,409
|
| | | | | 5,930 | | |
Non-current liabilities of discontinued operations
|
| | |
|
1,793
|
| | | | | 2,634 | | |
Total liabilities
|
| | |
|
611,234
|
| | | | | 613,072 | | |
Commitments and contingencies (Notes 7 and 11) | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | |
Preferred units, 25,000 units authorized, issued and outstanding (liquidation preference $29,029 as of December 31, 2020)
|
| | |
|
25,000
|
| | | | | 25,000 | | |
Class A units, 2,005,824 units authorized, issued and outstanding
|
| | |
|
208,324
|
| | | | | 208,324 | | |
Members’ deficit
|
| | |
|
(204,086)
|
| | | | | (99,323) | | |
Accumulated other comprehensive income
|
| | |
|
396
|
| | | | | 157 | | |
Total equity
|
| | |
|
29,634
|
| | | | | 134,158 | | |
Total liabilities and equity
|
| | | $ | 640,868 | | | | |
$
|
747,230
|
| |
| | |
For the Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue
|
| | |
$
|
656,524
|
| | | | $ | 599,268 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenues
|
| | |
|
597,583
|
| | | | | 525,403 | | |
General and administrative
|
| | |
|
47,049
|
| | | | | 42,665 | | |
Transaction expenses
|
| | |
|
988
|
| | | | | 4,257 | | |
Change in fair value of contingent consideration
|
| | |
|
(7,081)
|
| | | | | 6,149 | | |
Impairment of long-lived assets
|
| | |
|
—
|
| | | | | 840 | | |
Impairment of goodwill
|
| | |
|
28,802
|
| | | | | 8,132 | | |
Depreciation and amortization
|
| | |
|
46,475
|
| | | | | 40,103 | | |
Total costs and expenses
|
| | |
|
713,816
|
| | | | | 627,549 | | |
Loss from operations
|
| | |
|
(57,292)
|
| | | | | (28,281) | | |
Other income (expense): | | | | | | | | | | | | | |
Gain on sale/ disposal of property and equipment
|
| | |
|
729
|
| | | | | 129 | | |
Interest expense
|
| | |
|
(37,659)
|
| | | | | (33,380) | | |
Total other expense
|
| | |
|
(36,930)
|
| | | | | (33,251) | | |
Loss from continuing operations
|
| | | | (94,222) | | | | | | (61,532) | | |
Loss from discontinued operations
|
| | | | (3,865) | | | | | | (6,262) | | |
Net loss
|
| | |
|
(98,087)
|
| | | | | (67,794) | | |
Other comprehensive income: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | |
|
239
|
| | | | | 685 | | |
Comprehensive loss
|
| | |
$
|
(97,848)
|
| | | | $ | (67,109) | | |
Earnings per unit: | | | | | | | | | | | | | |
Basic and diluted net loss per unit from continuing operations
|
| | |
$
|
(48.61)
|
| | | | $ | (31.74) | | |
Basic and diluted net loss per unit from discontinued operations
|
| | |
|
(1.93)
|
| | | | | (3.19) | | |
Basic and diluted net loss per unit
|
| | |
$
|
(50.54)
|
| | | | $ | (34.93) | | |
Basic and diluted weighted average common units outstanding……………
|
| | |
|
2,005,824
|
| | | | | 1,962,115 | | |
| | |
Preferred Units
|
| |
Class A Units
|
| |
Members’
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
Equity |
| |||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance, January 1, 2019
|
| | | | — | | | | | $ | — | | | | | | 1,948,237 | | | | | $ | 194,824 | | | | | $ | (14,925) | | | | | $ | (528) | | | | | $ | 179,371 | | |
Adoption of Accounting Standards Codification Topic 606
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,831) | | | | | | — | | | | | | (9,831) | | |
Acquisitions (Note 3)
|
| | | | — | | | | | | — | | | | | | 57,587 | | | | | | 13,500 | | | | | | — | | | | | | — | | | | | | 13,500 | | |
Issuance of preferred equity
|
| | | | 25,000 | | | | | | 25,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,000 | | |
Tax distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,773) | | | | | | — | | | | | | (6,773) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 685 | | | | | | 685 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (67,794) | | | | | | — | | | | | | (67,794) | | |
Balance, December 31, 2019
|
| | | | 25,000 | | | | | | 25,000 | | | | | | 2,005,824 | | | | | | 208,324 | | | | | | (99,323) | | | | | | 157 | | | | | | 134,158 | | |
Tax distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,676) | | | | | | — | | | | | | (6,676) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 239 | | | | | | 239 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (98,087) | | | | | | — | | | | | | (98,087) | | |
Balance, December 31, 2020
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,005,824 | | | | | $ | 208,324 | | | | | $ | (204,086) | | | | | $ | 396 | | | | | $ | 29,634 | | |
| | |
For the Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | |
$
|
(98,087)
|
| | | | $ | (67,794) | | |
Loss from discontinued operations
|
| | |
|
3,865
|
| | | | | 6,262 | | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Depreciation, amortization and accretion of debt discount
|
| | |
|
46,474
|
| | | | | 40,103 | | |
Impairment of intangible assets, including goodwill
|
| | |
|
28,802
|
| | | | | 8,972 | | |
Amortization of debt issuance costs
|
| | |
|
3,090
|
| | | | | 2,269 | | |
Change in fair value of contingent consideration
|
| | |
|
(7,081)
|
| | | | | 6,148 | | |
Payments of acquisition related contingent consideration
|
| | |
|
—
|
| | | | | (5,238) | | |
Provision for bad debt expense
|
| | |
|
3,619
|
| | | | | (1,139) | | |
Gain on disposal of property and equipment
|
| | |
|
(729)
|
| | | | | (130) | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | |
|
52,524
|
| | | | | (17,897) | | |
Inventories
|
| | |
|
2,111
|
| | | | | (296) | | |
Prepaid expenses and other assets
|
| | |
|
(262)
|
| | | | | (1,043) | | |
Accounts payable and accrued liabilities
|
| | |
|
(16,244)
|
| | | | | 15,546 | | |
Contract liabilities
|
| | |
|
(3,525)
|
| | | | | 11,696 | | |
Net cash provided by (used in) operating activities from continuing operations
|
| | |
|
14,557
|
| | | | | (2,541) | | |
Net cash used in operating activities from discontinued
operations |
| | |
|
(1,100)
|
| | | | | (461) | | |
Net cash provided by (used in) operating activities
|
| | |
|
13,457
|
| | | | | (3,002) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | |
|
(4,808)
|
| | | | | (3,153) | | |
Proceeds from sale of property and equipment
|
| | |
|
881
|
| | | | | 378 | | |
Acquisitions of businesses, see Note 3
|
| | |
|
—
|
| | | | | (76,342) | | |
Net cash used in investing activities from continuing operations
|
| | |
|
(3,927)
|
| | | | | (79,117) | | |
Net cash used in investing activities from discontinued operations
|
| | |
|
(36)
|
| | | | | (492) | | |
Net cash used in investing activities
|
| | |
|
(3,963)
|
| | | |
|
(79,609)
|
| |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from line of credit, net of repayments
|
| | |
|
13,283
|
| | | | | (14,844) | | |
Proceeds from long-term debt
|
| | |
|
—
|
| | | | | 100,000 | | |
Payments for financing fees
|
| | |
|
(113)
|
| | | | | (6,215) | | |
Repayment of long-term debt
|
| | |
|
(9,564)
|
| | | | | (8,691) | | |
Proceeds from subordinated related party note
|
| | |
|
—
|
| | | | | 25,100 | | |
Repayment of subordinated related party note
|
| | |
|
—
|
| | | | | (25,100) | | |
Payments of acquisition related contingent consideration
|
| | |
|
(6,000)
|
| | | | | (7,870) | | |
Repayment of capital leases
|
| | |
|
(5,160)
|
| | | | | (3,425) | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Proceeds from issuance of preferred equity
|
| | |
|
—
|
| | | | | 25,000 | | |
Tax distributions to members
|
| | |
|
(1,197)
|
| | | | | (843) | | |
Net cash (used in) provided by financing activities from continuing operations
|
| | |
|
(8,751)
|
| | | | | 83,112 | | |
Net cash used in financing activities from discontinued
operations |
| | |
|
(961)
|
| | | | | (1,157) | | |
Net cash (used in) provided by financing activities
|
| | |
|
(9,712)
|
| | | | | 81,955 | | |
Effect of foreign currency exchange rate (translation) on cash
|
| | |
|
59
|
| | | | | 23 | | |
Net decrease in cash
|
| | | | (159) | | | | | | (633) | | |
Cash: | | | | | | | | | | | | | |
Beginning of year
|
| | |
|
328
|
| | | | | 961 | | |
End of year
|
| | |
$
|
169
|
| | | | $ | 328 | | |
Balances included in the Condensed Consolidated Balance Sheets: | | | | | | | | | | | | | |
Cash
|
| | |
|
76
|
| | | | | 91 | | |
Cash included in current assets of discontinued operations
|
| | |
|
93
|
| | | | | 237 | | |
Cash at end of period
|
| | |
$
|
169
|
| | | | $ | 328 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Interest paid – continuing operations
|
| | |
$
|
34,908
|
| | | | $ | 30,185 | | |
Interest paid – discontinued operations
|
| | |
$
|
189
|
| | | | $ | 213 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Assets acquired under capital leases from continuing operations
|
| | |
$
|
18,289
|
| | | | $ | 9,587 | | |
|
| | |
2020
|
| |
2019
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Loss from continuing operations
|
| | | $ | (94,222) | | | | | $ | (61,532) | | |
Loss from discontinued operations
|
| | | | (3,865) | | | | | | (6,262) | | |
Net loss
|
| | | | | | | | | | | | |
Less: accrued preferred return
|
| | | | (3,287) | | | | | | (742) | | |
Net loss attributable to Class A Units
|
| | | | (101,374) | | | | | | (68,536) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average number of units outstanding, basic and diluted
|
| | | | 2,005,824 | | | | | | 1,962,115 | | |
Continuing operations, basic and diluted
|
| | | $ | (48.61) | | | | | $ | (31.74) | | |
Discontinued operations, basic and diluted
|
| | | | (1.93) | | | | | | (3.19) | | |
Net loss per unit, basic and diluted
|
| | | $ | (50.54) | | | | | $ | (34.93) | | |
| Purchase consideration: | | | | | | | |
|
Cash paid
|
| | | $ | 16,250 | | |
|
Contingent consideration
|
| | | | 7,677 | | |
| | | | | $ | 23,927 | | |
| Purchase price allocations: | | | | | | | |
|
Accounts receivable
|
| | | $ | 14,815 | | |
|
Inventories
|
| | | | 65 | | |
|
Property and equipment
|
| | | | 1,195 | | |
|
Prepaid expenses
|
| | | | 72 | | |
|
Trademarks and trade names
|
| | | | 1,900 | | |
|
Customer relationships
|
| | | | 6,100 | | |
|
Goodwill
|
| | | | 7,093 | | |
|
Other long-term assets
|
| | | | 46 | | |
| | | | | | 31,286 | | |
|
Accounts payable
|
| | | | (5,621) | | |
|
Accrued expenses
|
| | | | (1,688) | | |
|
Capital lease obligations
|
| | | | (50) | | |
| | | | | $ | 23,927 | | |
| Purchase consideration: | | | | | | | |
|
Cash paid
|
| | | $ | 43,595 | | |
|
Rollover equity
|
| | | | 12,500 | | |
|
Contingent consideration
|
| | | | 22,615 | | |
| | | | | $ | 78,710 | | |
| Purchase price allocations: | | | | | | | |
|
Accounts receivable
|
| | | $ | 37,574 | | |
|
Inventories
|
| | | | 1,668 | | |
|
Prepaid expenses
|
| | | | 318 | | |
|
Property and equipment
|
| | | | 990 | | |
|
Trademarks and trade names
|
| | | | 4,500 | | |
|
Customer relationships
|
| | | | 35,100 | | |
|
Goodwill
|
| | | | 32,581 | | |
|
Other long-term assets
|
| | | | 79 | | |
| | | | | | 112,810 | | |
|
Accounts payable
|
| | | | (14,830) | | |
|
Accrued expenses
|
| | | | (12,706) | | |
|
Contract liabilities
|
| | | | (6,190) | | |
|
Capital lease obligations
|
| | | | (374) | | |
| | | | | $ | 78,710 | | |
| Purchase consideration: | | | | | | | |
|
Cash paid
|
| | | $ | 16,497 | | |
|
Rollover equity
|
| | | | 1,000 | | |
|
Contingent consideration
|
| | | | 5,825 | | |
|
Timing payments
|
| | | | 1,447 | | |
| | | | | $ | 24,769 | | |
| Purchase price allocations: | | | | | | | |
|
Accounts receivable
|
| | | $ | 8,847 | | |
|
Inventories
|
| | | | 150 | | |
|
Prepaid expenses
|
| | | | 167 | | |
|
Property and equipment
|
| | | | 1,446 | | |
|
Trademarks and trade names
|
| | | | 340 | | |
|
Customer relationships
|
| | | | 3,800 | | |
|
Goodwill
|
| | | | 14,698 | | |
|
Other long-term assets
|
| | | | 28 | | |
| | | | | | 29,476 | | |
|
Accounts payable
|
| | | | (2,254) | | |
|
Accrued expenses
|
| | | | (789) | | |
|
Contract liabilities
|
| | | | (648) | | |
|
Capital lease obligations
|
| | | | (1,016) | | |
| | | | | $ | 24,769 | | |
| | |
2020
|
| |
2019
|
| ||||||
Office furniture
|
| | | $ | 1,249 | | | | | $ | 898 | | |
Computers
|
| | | | 1,217 | | | | | | 1,051 | | |
Machinery, equipment and vehicles
|
| | | | 10,275 | | | | | | 6,532 | | |
Leasehold improvements
|
| | | | 3,354 | | | | | | 792 | | |
Software
|
| | | | 2,199 | | | | | | 1,903 | | |
Assets under capital lease
|
| | | | 32,153 | | | | | | 15,226 | | |
Construction in process
|
| | | | 605 | | | | | | 246 | | |
| | | | | 51,052 | | | | | | 26,648 | | |
Less: accumulated depreciation
|
| | | | (17,258) | | | | | | (8,475) | | |
Property and equipment, net
|
| | | $ | 33,794 | | | | | $ | 18,173 | | |
| | |
2020
|
| |
2019
|
| ||||||
Trade accounts receivable
|
| | | $ | 44,419 | | | | | $ | 61,365 | | |
Contract assets
|
| | | | 134,311 | | | | | | 173,734 | | |
| | | | | 178,730 | | | | | | 235,099 | | |
Less: allowance for doubtful accounts
|
| | | | (3,933) | | | | | | (6,440) | | |
Accounts receivable, net
|
| | | $ | 174,797 | | | | | $ | 228,659 | | |
| | |
2020
|
| |
2019
|
| ||||||
Contract assets
|
| | | $ | 134,311 | | | | | $ | 173,734 | | |
Contract liabilities
|
| | | | (14,945) | | | | | | (18,470) | | |
Contract assets, net
|
| | | $ | 119,366 | | | | | $ | 155,264 | | |
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of Total
|
| |
Amounts
|
| |
% of Total
|
| ||||||||||||
AT&T
|
| | | $ | 81,796 | | | | | | 45.8% | | | | | $ | 120,145 | | | | | | 51.1% | | |
Verizon
|
| | | | 65,346 | | | | | | 36.6% | | | | | | 69,552 | | | | | | 29.6% | | |
Total
|
| | | $ | 147,142 | | | | | | 82.3% | | | | | $ | 189,697 | | | | | | 80.8% | | |
| | |
Renewables
and Recovery Logistics |
| |
Telecom
|
| |
Total
|
| |||||||||
Goodwill as of January 1, 2019
|
| | | $ | 13,598 | | | | | $ | 27,485 | | | | | $ | 41,083 | | |
Additions from acquistions
|
| | | | — | | | | | | 53,552 | | | | | | 53,552 | | |
Impairment loss
|
| | | | — | | | | | | (8,132) | | | | | | (8,132) | | |
Goodwill as of December 31, 2019
|
| | | $ | 13,598 | | | | | $ | 72,905 | | | | | $ | 86,503 | | |
Measurement period adjustments, net
|
| | | | — | | | | | | 821 | | | | | | 821 | | |
Impairment loss
|
| | | | — | | | | | | (28,802) | | | | | | (28,802) | | |
Goodwill as of December 31, 2020
|
| | | $ | 13,598 | | | | | $ | 44,924 | | | | | $ | 58,522 | | |
| | |
2020
|
| |||||||||||||||||||||
| | |
Weighted Average
Remaining Useful Life |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Customer relationships
|
| | | | 10.8 | | | | | $ | 368,200 | | | | | $ | (65,868) | | | | | $ | 302,332 | | |
Trade names
|
| | | | 9.9 | | | | | | 58,519 | | | | | | (15,035) | | | | | | 43,484 | | |
| | | | | | | | | | $ | 426,719 | | | | | $ | (80,903) | | | | | $ | 345,816 | | |
| | |
2019
|
| |||||||||||||||||||||
| | |
Weighted Average
Remaining Useful Life |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Customer relationships
|
| | | | 11.8 | | | | | $ | 368,200 | | | | | $ | (36,782) | | | | | $ | 331,418 | | |
Trade names
|
| | | | 10.5 | | | | | | 58,519 | | | | | | (8,364) | | | | | | 50,155 | | |
| | | | | | | | | | $ | 426,719 | | | | | $ | (45,146) | | | | | $ | 381,573 | | |
| Years ending December 31: | | | | | | | |
|
2021
|
| | | $ | 35,585 | | |
|
2022
|
| | | | 35,585 | | |
|
2023
|
| | | | 34,294 | | |
|
2024
|
| | | | 32,245 | | |
|
2025
|
| | | | 31,289 | | |
|
Thereafter
|
| | | | 176,818 | | |
| | | | | $ | 345,816 | | |
| | |
2020
|
| |
2019
|
| ||||||
Line of credit
|
| | | $ | 59,837 | | | | | $ | 46,554 | | |
Term loan
|
| | | | 361,045 | | | | | | 370,609 | | |
Acquistion debt
|
| | | | 10,575 | | | | | | — | | |
Capital lease obligations
|
| | | | 25,751 | | | | | | 11,959 | | |
Less: amounts representing interest
|
| | | | (2,682) | | | | | | (1,327) | | |
Less: unamortized financing fees
|
| | | | (13,854) | | | | | | (16,830) | | |
| | | | | 440,672 | | | | | | 410,965 | | |
Less: current portion of long-term debt
|
| | | | (20,139) | | | | | | (9,564) | | |
Less: current portion of capital lease obliations, net of capital lease interest
|
| | | | (7,110) | | | | | | (3,902) | | |
| | | | $ | 413,423 | | | | | $ | 397,499 | | |
| | |
Line of
credit |
| |
Term
loan |
| |
Acquistion
debt |
| |
Capital
lease obligations |
| |
Total
|
| |||||||||||||||
2021
|
| | | $ | — | | | | | $ | 9,564 | | | | | $ | 10,575 | | | | | $ | 8,287 | | | | | $ | 28,426 | | |
2022
|
| | | | — | | | | | | 9,564 | | | | | | — | | | | | | 7,318 | | | | | | 16,882 | | |
2023
|
| | | | 59,837 | | | | | | 9,564 | | | | | | — | | | | | | 6,397 | | | | | | 75,798 | | |
2024
|
| | | | — | | | | | | 9,564 | | | | | | — | | | | | | 3,105 | | | | | | 12,669 | | |
2025
|
| | | | — | | | | | | 9,564 | | | | | | — | | | | | | 644 | | | | | | 10,208 | | |
Thereafter
|
| | | | — | | | | | | 313,225 | | | | | | — | | | | | | — | | | | | | 313,225 | | |
Total
|
| | | $ | 59,837 | | | | | $ | 361,045 | | | | | $ | 10,575 | | | | | $ | 25,751 | | | | | $ | 457,208 | | |
| | |
Fair Value at December 31, 2020
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying
Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Financial liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration – Vertical Limit
|
| | | $ | 4,711 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,711 | | |
Contingent consideration – Vinculums
|
| | | | 13,418 | | | | | | — | | | | | | — | | | | | | 13,418 | | |
| | | | $ | 18,129 | | | | | $ | — | | | | | $ | — | | | | | $ | 18,129 | | |
| | |
Fair Value at December 31, 2019
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying
Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Financial liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration – RLI
|
| | | $ | 2,075 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,075 | | |
Contingent consideration – Vertical Limit
|
| | | | 9,195 | | | | | | — | | | | | | — | | | | | | 9,195 | | |
Contingent consideration – Vinculums
|
| | | | 22,973 | | | | | | — | | | | | | — | | | | | | 22,973 | | |
Contingent consideration – Aerial
|
| | | | 5,876 | | | | | | — | | | | | | — | | | | | | 5,876 | | |
| | | | $ | 40,119 | | | | | $ | — | | | | | $ | — | | | | | $ | 40,119 | | |
|
January 1, 2019
|
| | | $ | 10,130 | | |
|
Acquisitions (see Note 3)
|
| | | | 36,117 | | |
|
Payment of contingent consideration
|
| | | | (13,108) | | |
|
Accretion
|
| | | | 832 | | |
|
Change in fair value
|
| | | | 6,148 | | |
|
December 31, 2019
|
| | | | 40,119 | | |
|
Payment of contingent consideration
|
| | | | (6,000) | | |
|
Accretion
|
| | | | 1,666 | | |
|
Reclassification to acquisition debt
|
| | | | (10,575) | | |
|
Change in fair value
|
| | | | (7,081) | | |
|
December 31, 2020
|
| | | $ | 18,129 | | |
| | |
2020
|
| |
2019
|
| ||||||
Revenue: | | | | ||||||||||
Telecom
|
| | | $ | 587,614 | | | | | $ | 568,342 | | |
Renewables and Recovery Logistics
|
| | | | 68,910 | | | | | | 30,926 | | |
Total consolidated revenue
|
| | | $ | 656,524 | | | | | $ | 599,268 | | |
| | |
2020
|
| |
2019
|
| ||||||
Total Assets: | | | | | | | | | | | | | |
Telecom
|
| | | $ | 579,147 | | | | | $ | 697,991 | | |
Renewables and Recovery Logistics
|
| | | | 55,370 | | | | | | 45,642 | | |
Corporate
|
| | | | 6,351 | | | | | | 3,597 | | |
Total consolidated assets
|
| | | $ | 640,868 | | | | | $ | 747,230 | | |
| | |
2020
|
| |
2019
|
| ||||||
Capital Expenditures: | | | | | | | | | | | | | |
Telecom
|
| | | $ | 8,831 | | | | | $ | 10,693 | | |
Renewables and Recovery Logistics
|
| | | | 12,251 | | | | | | 1,090 | | |
Corporate
|
| | | | 2,015 | | | | | | 957 | | |
Total consolidated capital expenditures
|
| | | $ | 23,097 | | | | | $ | 12,740 | | |
| | |
2020
|
| |
2019
|
| ||||||
Amortization and Depreciation: | | | | | | | | | | | | | |
Amortization and depreciation
|
| | | | | | | | | | | | |
Telecom
|
| | | $ | 40,588 | | | | | $ | 35,411 | | |
Renewables and Recovery Logistics
|
| | | | 5,259 | | | | | | 4,250 | | |
Corporate
|
| | | | 628 | | | | | | 442 | | |
Total consolidated amortization and depreciation
|
| | | $ | 46,475 | | | | | $ | 40,103 | | |
| | |
2020
|
| |
2019
|
| ||||||
EBITDA Reconciliation: | | | | | | | | | | | | | |
Telecom adjusted EBITDA
|
| | | $ | 2,409 | | | | | $ | 37,063 | | |
Renewables and Recovery Logistics adjusted EBITDA
|
| | | | 28,943 | | | | | | 11,442 | | |
Corporate adjusted EBITDA
|
| | | | (18,213) | | | | | | (16,635) | | |
Total adjusted EBITDA
|
| | | | 13,139 | | | | | | 31,870 | | |
Less: | | | | | | | | | | | | | |
Management fees
|
| | | | (518) | | | | | | (541) | | |
Transaction expenses
|
| | | | (988) | | | | | | (4,257) | | |
Change in fair value of contingent consideration
|
| | | | 7,081 | | | | | | (6,149) | | |
Impairment of goodwill
|
| | | | (28,802) | | | | | | (8,132) | | |
Impairment of long-lived assets
|
| | | | — | | | | | | (840) | | |
Depreciation and amortization
|
| | | | (46,475) | | | | | | (40,103) | | |
Interest expense
|
| | | | (37,659) | | | | | | (33,380) | | |
Net loss
|
| | | $ | (94,222) | | | | | $ | (61,532) | | |
| | |
2020
|
| |
2019
|
| ||||||
Revenue by Service Offerings: | | | | | | | | | | | | | |
Telecom Wireless
|
| | | $ | 458,155 | | | | | $ | 397,203 | | |
Welecom Wireline
|
| | | | 129,459 | | | | | | 171,139 | | |
Recovery Logistics
|
| | | | 68,910 | | | | | | 30,926 | | |
Total
|
| | | $ | 656,524 | | | | | $ | 599,268 | | |
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of Total
|
| |
Amount
|
| |
% of Total
|
| ||||||||||||
Customers: | | | | | | ||||||||||||||||||||
AT&T
|
| | | $ | 356,026 | | | | | | 54% | | | | | $ | 318,913 | | | | | | 53% | | |
Verizon
|
| | | | 116,444 | | | | | | 18% | | | | | | 117,927 | | | | | | 20% | | |
Total
|
| | | $ | 472,470 | | | | | | 72% | | | | | $ | 436,840 | | | | | | 73% | | |
| Years ending December 31: | | | | | | | |
|
2021
|
| | | $ | 9,673 | | |
|
2022
|
| | | | 8,048 | | |
|
2023
|
| | | | 5,807 | | |
|
2024
|
| | | | 3,534 | | |
|
2025
|
| | | | 1,689 | | |
|
Thereafter
|
| | | | 6,468 | | |
| | | | | $ | 35,219 | | |
| | |
2020
|
| |
2019
|
| ||||||
Carrying amounts of assets included as part of discontinued operations: | | | | | | | | | | | | | |
Cash
|
| | | $ | 93 | | | | | $ | 237 | | |
Accounts receivable, net of allowance
|
| | | | 5,743 | | | | | | 6,223 | | |
Inventories, net
|
| | | | 28 | | | | | | 30 | | |
Prepaid expenses
|
| | | | 71 | | | | | | 223 | | |
Other current assets
|
| | | | 599 | | | | | | 23 | | |
Total current assets of discontinued operations
|
| | | $ | 6,534 | | | | | $ | 6,736 | | |
Property and equipment, net
|
| | | | 3,280 | | | | | | 4,585 | | |
Intangible assets, net
|
| | | | 5,712 | | | | | | 6,275 | | |
Other long-term assets
|
| | | | 280 | | | | | | 265 | | |
Total non-current assets of discontinued operations
|
| | | $ | 9,272 | | | | | $ | 11,125 | | |
Carrying amounts of liabilities included as part of discontinued operations: | | | | | | | | | | | | | |
Current portion of long-term debt and capital lease obligations
|
| | | $ | 920 | | | | | $ | 1,059 | | |
Accounts payable
|
| | | | 809 | | | | | | 1,180 | | |
Accrued expenses
|
| | | | 1,636 | | | | | | 607 | | |
Total current liabilities of discontinued operations
|
| | | $ | 3,365 | | | | | $ | 2,846 | | |
Capital lease obligations, net of current portion
|
| | | | 1,793 | | | | | | 2,634 | | |
Total non-current liabilities of discontinued operations
|
| | | $ | 1,793 | | | | | $ | 2,634 | | |
| | |
2020
|
| |
2019
|
| ||||||
Revenue
|
| | | $ | 17,481 | | | | | $ | 21,561 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 18,331 | | | | | | 19,807 | | |
General and administrative
|
| | | | 804 | | | | | | 939 | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | (266) | | |
Impairment of goodwill
|
| | | | — | | | | | | 5,119 | | |
Depreciation and amortization
|
| | | | 2,022 | | | | | | 2,012 | | |
Total costs and expenses
|
| | | | 21,157 | | | | | | 27,611 | | |
Loss from operations of discontinued operations
|
| | | | (3,676) | | | | | | (6,050) | | |
Other income (expense): | | | | | | | | | | | | | |
Gain on sale/ disposal of property and equipment
|
| | | | — | | | | | | 1 | | |
Interest expense
|
| | | | (189) | | | | | | (213) | | |
Loss from discontinued operations
|
| | | $ | (3,865) | | | | | $ | (6,262) | | |
| | |
October 2, 2021
|
| |
December 31, 2020
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 5,405 | | | | | $ | 76 | | |
Accounts receivable, net of allowance
|
| | | | 249,264 | | | | | | 174,797 | | |
Inventories, net
|
| | | | 5,633 | | | | | | 5,765 | | |
Prepaid expenses
|
| | | | 7,446 | | | | | | 3,459 | | |
Other current assets
|
| | | | 1,952 | | | | | | 1,592 | | |
Current assets of discontinued operations
|
| | | | 8,157 | | | | | | 6,534 | | |
Total current assets
|
| | | | 277,857 | | | | | | 192,223 | | |
Property and equipment, net
|
| | | | 42,187 | | | | | | 33,794 | | |
Intangible assets, net
|
| | | | 364,722 | | | | | | 345,816 | | |
Goodwill
|
| | | | 81,775 | | | | | | 58,522 | | |
Other long-term assets
|
| | | | 1,676 | | | | | | 1,241 | | |
Non-current assets of discontinued operations
|
| | | | 1,348 | | | | | | 9,272 | | |
Total assets
|
| | | $ | 769,565 | | | | | $ | 640,868 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Current portion of long-term debt and capital lease obligations
|
| | | $ | 119,545 | | | | | $ | 27,249 | | |
Current portion of contingent consideration
|
| | | | 4,292 | | | | | | 9,968 | | |
Accounts payable
|
| | | | 74,217 | | | | | | 55,749 | | |
Accrued expenses
|
| | | | 60,713 | | | | | | 65,172 | | |
Contract liabilities
|
| | | | 14,950 | | | | | | 14,945 | | |
Current liabilities of discontinued operations
|
| | | | 3,941 | | | | | | 3,365 | | |
Total current liabilities
|
| | | | 277,658 | | | | | | 176,448 | | |
Capital lease obligations, net of current portion
|
| | | | 16,471 | | | | | | 15,959 | | |
Long-term debt, net of current portion and deferred financing fees
|
| | | | 429,033 | | | | | | 397,464 | | |
Contingent consideration, net of current portion
|
| | | | 24,137 | | | | | | 8,161 | | |
Distributions payable
|
| | | | 11,409 | | | | | | 11,409 | | |
Non-current liabilities of discontinued operations
|
| | | | — | | | | | | 1,793 | | |
Total liabilities
|
| | | | 758,708 | | | | | | 611,234 | | |
Commitments and contingencies (Notes 8 and 12) | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | |
Preferred units, 25,000 units authorized, issued and outstanding as of December 31, 2020
|
| | | | — | | | | | | 25,000 | | |
Class A units, 2,223,555 and 2,005,824 units authorized, issued and outstanding as of October 2, 2021 and December 31, 2020, respectively
|
| | | | 248,595 | | | | | | 208,324 | | |
Members’ deficit
|
| | | | (238,209) | | | | | | (204,086) | | |
Accumulated other comprehensive income
|
| | | | 471 | | | | | | 396 | | |
Total equity
|
| | | | 10,857 | | | | | | 29,634 | | |
Total liabilities and equity
|
| | | $ | 769,565 | | | | | $ | 640,868 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Revenue
|
| | | $ | 465,184 | | | | | $ | 524,080 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 372,496 | | | | | | 462,760 | | |
General and administrative
|
| | | | 37,962 | | | | | | 35,660 | | |
Transaction expenses
|
| | | | 2,875 | | | | | | 567 | | |
Change in fair value of contingent consideration
|
| | | | (4,544) | | | | | | — | | |
Depreciation and amortization
|
| | | | 39,136 | | | | | | 34,761 | | |
Total costs and expenses
|
| | | | 447,925 | | | | | | 533,748 | | |
Income / (loss) from operations
|
| | | | 17,259 | | | | | | (9,668) | | |
Other income (expense): | | | | | | | | | | | | | |
Gain on sale/ disposal of property and equipment
|
| | | | 514 | | | | | | 576 | | |
Interest expense
|
| | | | (35,778) | | | | | | (28,824) | | |
Loss on extinguishment of convertible notes
|
| | | | (2,436) | | | | | | — | | |
Total other expense
|
| | | | (37,700) | | | | | | (28,248) | | |
Loss from continuing operations
|
| | | | (20,441) | | | | | | (37,916) | | |
Loss from discontinued operations
|
| | | | (8,114) | | | | | | (1,708) | | |
Net loss
|
| | | | (28,555) | | | | | | (39,624) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | 75 | | | | | | (244) | | |
Comprehensive loss
|
| | | $ | (28,480) | | | | | $ | (39,868) | | |
Earnings per unit: | | | | | | | | | | | | | |
Basic and diluted net loss per unit from continuing operations
|
| | | $ | (10.21) | | | | | $ | (20.15) | | |
Basic and diluted net loss per unit from discontinued operations
|
| | | | (3.75) | | | | | | (0.85) | | |
Basic earnings net loss per unit
|
| | | $ | (13.96) | | | | | $ | (21.00) | | |
Basic and diluted weighted average common units outstanding
|
| | | | 2,161,951 | | | | | | 2,005,824 | | |
| | |
Preferred Units
|
| |
Class A Units
|
| |
Members’
Deficit |
| |
Accumulated Other
Comprehensive Income (Loss) |
| |
Total
Equity |
| |||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
For the Nine Months Ended October 2, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2021
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,005,824 | | | | | $ | 208,324 | | | | | $ | (204,086) | | | | | $ | 396 | | | | | $ | 29,634 | | |
Issuance of class A units
|
| | | | — | | | | | | — | | | | | | 150,000 | | | | | | 15,000 | | | | | | — | | | | | | — | | | | | | 15,000 | | |
Issuance of class A units – non-return
|
| | | | — | | | | | | — | | | | | | — | | | | | | 367 | | | | | | — | | | | | | — | | | | | | 367 | | |
Beneficial conversion feature on
convertible notes |
| | | | — | | | | | | — | | | | | | — | | | | | | 16,904 | | | | | | — | | | | | | — | | | | | | 16,904 | | |
Acquisitions (see Note 4)
|
| | | | — | | | | | | — | | | | | | 67,731 | | | | | | 8,000 | | | | | | — | | | | | | — | | | | | | 8,000 | | |
Paid in kind preferred unit distribution
|
| | | | — | | | | | | 5,568 | | | | | | — | | | | | | — | | | | | | (5,568) | | | | | | — | | | | | | — | | |
Preferred units exchanged for convertible notes
|
| | | | (25,000) | | | | | | (30,568) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (30,568) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 75 | | | | | | 75 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (28,555) | | | | | | — | | | | | | (28,555) | | |
Balance, October 2, 2021
|
| | | | — | | | | | $ | — | | | | | | 2,223,555 | | | | | $ | 248,595 | | | | | $ | (238,209) | | | | | $ | 471 | | | | | $ | 10,857 | | |
For the Nine Months Ended October 3, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2020
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,005,824 | | | | | $ | 208,324 | | | | | $ | (99,323) | | | | | $ | 157 | | | | | $ | 134,158 | | |
Tax distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,694) | | | | | | — | | | | | | (6,694) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (244) | | | | | | (244) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (39,624) | | | | | | — | | | | | | (39,624) | | |
Balance, October 3, 2020
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,005,824 | | | | | $ | 208,324 | | | | | $ | (145,641) | | | | | $ | (87) | | | | | $ | 87,596 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (28,555) | | | | | $ | (39,624) | | |
Loss from discontinued operations
|
| | | | 8,114 | | | | | | 1,708 | | |
Adjustments:
|
| | | | | | | | | | | | |
Depreciation, amortization and accretion of debt discount
|
| | | | 46,106 | | | | | | 34,761 | | |
Loss on extinguishment of convertible notes
|
| | | | 2,436 | | | | | | — | | |
Amortization of debt issuance costs
|
| | | | 3,201 | | | | | | 2,308 | | |
Change in fair value of contingent consideration
|
| | | | (4,544) | | | | | | — | | |
Provision for bad debt expense
|
| | | | 2,539 | | | | | | 2,295 | | |
Gain on disposal of property and equipment
|
| | | | (514) | | | | | | (576) | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (63,484) | | | | | | 5,717 | | |
Inventories
|
| | | | 290 | | | | | | 2,483 | | |
Prepaid expenses and other assets
|
| | | | (4,586) | | | | | | (1,278) | | |
Accounts payable and accrued liabilities
|
| | | | 8,729 | | | | | | (9,639) | | |
Contract liabilities
|
| | | | (2,691) | | | | | | (5,731) | | |
Net cash used in operating activities from continuing operations
|
| | | | (32,959) | | | | | | (7,576) | | |
Net cash used in operating activities from discontinued operations
|
| | | | (3,011) | | | | | | (885) | | |
Net cash used in operating activities
|
| | | | (35,970) | | | | | | (8,461) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (2,202) | | | | | | (3,863) | | |
Proceeds from sale of property and equipment
|
| | | | 726 | | | | | | 645 | | |
Acquisition of businesses, net of cash acquired (see Note 4)
|
| | | | (37,057) | | | | | | — | | |
Net cash used in investing activities from continuing operations
|
| | | | (38,533) | | | | | | (3,218) | | |
Net cash provided by (used in) investing activities from discontinued
operations |
| | | | 2,178 | | | | | | (36) | | |
Net cash used in investing activities
|
| | | | (36,355) | | | | | | (3,254) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from line of credit, net of repayments
|
| | | | 36,405 | | | | | | 32,575 | | |
Proceeds from convertible notes – related party
|
| | | | 5,000 | | | | | | — | | |
Repayment of convertible notes – related party
|
| | | | (5,000) | | | | | | — | | |
Proceeds from convertible notes
|
| | | | 44,400 | | | | | | — | | |
Repayment of long-term debt
|
| | | | (7,173) | | | | | | (7,173) | | |
Payments for financing fees
|
| | | | (2,220) | | | | | | — | | |
Payments of acquisition related contingent consideration
|
| | | | — | | | | | | (6,000) | | |
Repayment of capital leases
|
| | | | (7,000) | | | | | | (3,694) | | |
Proceeds from issuance of equity
|
| | | | 15,367 | | | | | | — | | |
Tax distributions to members
|
| | | | — | | | | | | (1,213) | | |
Net cash provided by financing activities from continuing operations
|
| | | | 79,779 | | | | | | 14,495 | | |
Net cash used in financing activities from discontinued operations
|
| | | | (911) | | | | | | (767) | | |
Net cash provided by financing activities
|
| | | | 78,868 | | | | | | 13,728 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Effect of foreign currency exchange rate (translation) on cash
|
| | | | (35) | | | | | | 21 | | |
Net increase in cash
|
| | | | 6,508 | | | | | | 2,034 | | |
Cash: | | | | | | | | | | | | | |
Beginning of period
|
| | | | 169 | | | | | | 328 | | |
End of period
|
| | | $ | 6,677 | | | | | $ | 2,362 | | |
Balances included in the condensed consolidated balance sheets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 5,405 | | | | | $ | 195 | | |
Cash included in current assets of discontinued operations
|
| | | | 1,272 | | | | | | 2,167 | | |
Cash at end of period
|
| | | $ | 6,677 | | | | | $ | 2,362 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for:
|
| | | | | | | | | | | | |
Interest from continuing operations
|
| | | $ | 24,041 | | | | | $ | 27,147 | | |
Interest from discontinued operations
|
| | | $ | 98 | | | | | $ | 150 | | |
Non-cash investing and financing activities:
|
| | | | | | | | | | | | |
Assets acquired under capital leases from continuing operations
|
| | | $ | 948 | | | | | $ | 11,630 | | |
|
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Loss from continuing operations
|
| | | $ | (20,441) | | | | | $ | (37,916) | | |
Loss from discontinued operations
|
| | | | (8,114) | | | | | | (1,708) | | |
Net loss
|
| | | | (28,555) | | | | | | (39,624) | | |
Less: accrued preferred return
|
| | | | (1,638) | | | | | | (2,508) | | |
Net loss attributable to Class A Units (basic)
|
| | | $ | (30,193) | | | | | $ | (42,132) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average number of units outstanding, basic and diluted
|
| | | | | | | | | | | | |
Class A – basic and diluted
|
| | | | 2,161,951 | | | | | | 2,005,824 | | |
EPU:
|
| | | | | | | | | | | | |
Continuing operations – Class A – basic and diluted
|
| | | $ | (10.21) | | | | | $ | (20.15) | | |
Discontinued operations – Class A – basic and diluted
|
| | | $ | (3.75) | | | | | $ | (0.85) | | |
Net loss – Class A – basic and diluted
|
| | | $ | (13.96) | | | | | $ | (21.00) | | |
| | |
October 2,
2021 |
| |
December 31,
2020 |
| ||||||
Carrying amounts of assets included as part of discontinued operations:
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 1,272 | | | | | $ | 93 | | |
Accounts receivable, net of allowance
|
| | | | 4,663 | | | | | | 5,743 | | |
Inventories, net
|
| | | | — | | | | | | 28 | | |
Prepaid expenses
|
| | | | 177 | | | | | | 71 | | |
Other current assets
|
| | | | 2,045 | | | | | | 599 | | |
Total current assets of discontinued operations
|
| | | $ | 8,157 | | | | | $ | 6,534 | | |
Property and equipment, net
|
| | | | 1,348 | | | | | | 3,280 | | |
Intangible assets, net
|
| | | | — | | | | | | 5,712 | | |
Other long-term assets
|
| | | | — | | | | | | 280 | | |
Total non-current assets of discontinued operations
|
| | | $ | 1,348 | | | | | $ | 9,272 | | |
Carrying amounts of liabilities included as part of discontinued operations:
|
| | | | | | | | | | | | |
Current portion of long-term debt and capital lease obligations
|
| | | $ | 1,832 | | | | | $ | 920 | | |
Accounts payable
|
| | | | 519 | | | | | | 809 | | |
Accrued expenses
|
| | | | 1,590 | | | | | | 1,636 | | |
Total current liabilities of discontinued operations
|
| | | $ | 3,941 | | | | | $ | 3,365 | | |
Capital lease obligations, net of current portion
|
| | | | — | | | | | | 1,793 | | |
Total non-current liabilities of discontinued operations
|
| | | $ | — | | | | | $ | 1,793 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Revenue
|
| | | $ | 5,850 | | | | | $ | 13,923 | | |
Costs and expenses:
|
| | | | | | | | | | — | | |
Cost of revenues
|
| | | | 8,025 | | | | | | 13,222 | | |
General and administrative
|
| | | | 275 | | | | | | 693 | | |
Depreciation and amortization
|
| | | | 6,667 | | | | | | 1,566 | | |
Total costs and expenses
|
| | | | 14,967 | | | | | | 15,481 | | |
Loss from operations of discontinued operations
|
| | | | (9,117) | | | | | | (1,558) | | |
Other income (expense): | | | | | | | | | | | | | |
Gain on sale/ disposal of property and equipment
|
| | | | 1,101 | | | | | | — | | |
Interest expense
|
| | | | (98) | | | | | | (150) | | |
Loss from discontinued operations
|
| | | $ | (8,114) | | | | | $ | (1,708) | | |
| | |
FNS
|
| |
Broken Arrow
|
| |
Concurrent
|
| |||||||||
Purchase consideration: | | | | | | | | | | | | | | | | | | | |
Cash paid
|
| | | $ | 20,059 | | | | | $ | 5,000 | | | | | $ | 13,828 | | |
Rollover equity
|
| | | | 2,000 | | | | | | — | | | | | | 6,000 | | |
Contingent consideration
|
| | | | 8,200 | | | | | | 5,735 | | | | | | 10,210 | | |
Acquisition debt
|
| | | | — | | | | | | — | | | | | | 14,143 | | |
| | | | $ | 30,259 | | | | | $ | 10,735 | | | | | $ | 44,181 | | |
Purchase price allocations: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,830 | | |
Accounts receivable
|
| | | | — | | | | | | 5,121 | | | | | | 8,402 | | |
Inventories
|
| | | | — | | | | | | 133 | | | | | | 25 | | |
Prepaid expenses
|
| | | | — | | | | | | 94 | | | | | | — | | |
Other current assets
|
| | | | — | | | | | | — | | | | | | 10 | | |
Property and equipment
|
| | | | 9,978 | | | | | | 219 | | | | | | 4,164 | | |
Other long-term assets
|
| | | | — | | | | | | 32 | | | | | | 60 | | |
Customer relationships
|
| | | | 17,370 | | | | | | 4,690 | | | | | | 24,186 | | |
Trademarks and trade names
|
| | | | 270 | | | | | | 80 | | | | | | 1,330 | | |
Goodwill
|
| | | | 8,082 | | | | | | 4,433 | | | | | | 10,738 | | |
| | | | | 35,700 | | | | | | 14,802 | | | | | | 50,745 | | |
Accounts payable
|
| | | | — | | | | | | (1,853) | | | | | | (1,932) | | |
Accrued expenses
|
| | | | — | | | | | | (156) | | | | | | (830) | | |
Contract liabilities
|
| | | | — | | | | | | (2,058) | | | | | | (639) | | |
Capital lease obligations
|
| | | | (5,441) | | | | | | — | | | | | | (3,163) | | |
| | | | $ | 30,259 | | | | | $ | 10,735 | | | | | $ | 44,181 | | |
| | |
October 2,
2021 |
| |
December 31,
2020 |
| ||||||
Office furniture
|
| | | $ | 1,331 | | | | | $ | 1,249 | | |
Computers
|
| | | | 1,591 | | | | | | 1,217 | | |
Machinery, equipment and vehicles
|
| | | | 15,482 | | | | | | 10,275 | | |
Land
|
| | | | 140 | | | | | | — | | |
Leasehold improvements
|
| | | | 4,695 | | | | | | 3,354 | | |
Software
|
| | | | 2,281 | | | | | | 2,199 | | |
Assets under capital lease
|
| | | | 41,349 | | | | | | 32,153 | | |
Construction in process
|
| | | | 1,263 | | | | | | 605 | | |
| | | | | 68,132 | | | | | | 51,052 | | |
Less: accumulated depreciation
|
| | | | (25,945) | | | | | | (17,258) | | |
Property and equipment, net
|
| | | $ | 42,187 | | | | | $ | 33,794 | | |
| | |
October 2,
2021 |
| |
December 31,
2020 |
| ||||||
Trade accounts receivable
|
| | | $ | 97,506 | | | | | $ | 44,419 | | |
Contract assets
|
| | | | 157,155 | | | | | | 134,311 | | |
| | | | | 254,661 | | | | | | 178,730 | | |
Less: allowance for doubtful accounts
|
| | | | (5,397) | | | | | | (3,933) | | |
Accounts receivable, net
|
| | | $ | 249,264 | | | | | $ | 174,797 | | |
| | |
October 2,
2021 |
| |
December 31,
2020 |
| ||||||
Contract assets
|
| | | $ | 157,155 | | | | | $ | 134,311 | | |
Contract liabilities
|
| | | | (14,950) | | | | | | (14,945) | | |
Contract assets, net
|
| | | $ | 142,205 | | | | | $ | 119,366 | | |
| | |
October 2, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||
| | |
Amounts
|
| |
% of Total
|
| |
Amounts
|
| |
% of Total
|
| ||||||||||||
AT&T
|
| | | $ | 61,797 | | | | | | 24.3% | | | | | $ | 81,796 | | | | | | 45.8% | | |
Entergy
|
| | | | 67,776 | | | | | | 26.6% | | | | | | * | | | | | | * | | |
T-Mobile
|
| | | | 34,447 | | | | | | 13.5% | | | | | | * | | | | | | * | | |
Verizon
|
| | | | 47,892 | | | | | | 18.8% | | | | | | 65,346 | | | | | | 36.6% | | |
Total
|
| | | $ | 211,911 | | | | | | 83.2% | | | | | $ | 147,142 | | | | | | 82.3% | | |
| | |
Renewables and
Recovery Logistics |
| |
Telecom
|
| |
Total
|
| |||||||||
Goodwill as of December 31, 2020(a)
|
| | | $ | 13,598 | | | | | $ | 44,924 | | | | | $ | 58,522 | | |
Additions from acquisitions (Note 4)
|
| | | | 8,082 | | | | | | 15,171 | | | | | | 23,253 | | |
Goodwill as of October 2, 2021(a)
|
| | | $ | 21,680 | | | | | $ | 60,095 | | | | | $ | 81,775 | | |
| | |
October 2, 2021
|
| |||||||||||||||||||||
| | |
Weighted
Average Remaining Useful Life |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Customer relationships
|
| | | | 9.7 | | | | | $ | 414,446 | | | | | $ | (89,681) | | | | | $ | 324,765 | | |
Trade names
|
| | | | 9.7 | | | | | | 60,200 | | | | | | (20,243) | | | | | | 39,957 | | |
| | | | | | | | | | $ | 474,646 | | | | | $ | (109,924) | | | | | $ | 364,722 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Weighted
Average Remaining Useful Life |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Customer relationships
|
| | | | 10.8 | | | | | $ | 368,200 | | | | | $ | (65,868) | | | | | $ | 302,332 | | |
Trade names
|
| | | | 9.9 | | | | | | 58,519 | | | | | | (15,035) | | | | | | 43,484 | | |
| | | | | | | | | | $ | 426,719 | | | | | $ | (80,903) | | | | | $ | 345,816 | | |
| | |
October 2,
2021 |
| |
December 31,
2020 |
| ||||||
Line of credit
|
| | | $ | 96,242 | | | | | $ | 59,837 | | |
Term loan
|
| | | | 353,872 | | | | | | 361,045 | | |
Acquisition debt
|
| | | | 34,718 | | | | | | 10,575 | | |
Convertible notes – related party
|
| | | | 30,568 | | | | | | — | | |
Convertible notes – June 2021
|
| | | | 44,400 | | | | | | — | | |
Capital lease obligations
|
| | | | 25,620 | | | | | | 23,069 | | |
Less: unamortized financing fees
|
| | | | (12,873) | | | | | | (13,854) | | |
Less: convertible debt discount
|
| | | | (7,498) | | | | | | — | | |
| | | | | 565,049 | | | | | | 440,672 | | |
Less: current maturities of long-term debt
|
| | | | (110,395) | | | | | | (20,139) | | |
Less: current portion of capital lease obligations, net of capital lease
interest |
| | | | (9,150) | | | | | | (7,110) | | |
| | | | $ | 445,504 | | | | | $ | 413,423 | | |
| | |
Fair Value at October 2, 2021
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying Value
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | $ | 28,429 | | | | | $ | — | | | | | $ | — | | | | | $ | 28,429 | | |
| | | | $ | 28,429 | | | | | $ | — | | | | | $ | — | | | | | $ | 28,429 | | |
| | |
Fair Value at December 31, 2020
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying Value
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | $ | 18,129 | | | | | $ | — | | | | | $ | — | | | | | $ | 18,129 | | |
| | | | $ | 18,129 | | | | | $ | — | | | | | $ | — | | | | | $ | 18,129 | | |
|
January 1, 2021
|
| | | | 18,129 | | |
|
Acquisitions (see Note 4)
|
| | | | 24,145 | | |
|
Accretion
|
| | | | 699 | | |
|
Change in fair value
|
| | | | (4,544) | | |
|
Reclassification to acquisition debt
|
| | | | (10,000) | | |
|
October 2, 2021
|
| | | $ | 28,429 | | |
|
January 1, 2020
|
| | | $ | 40,119 | | |
|
Payment of contingent consideration
|
| | | | (6,000) | | |
|
Accretion
|
| | | | 1,306 | | |
|
October 3, 2020
|
| | | $ | 35,425 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Revenue: | | | | ||||||||||
Telecom
|
| | | $ | 360,020 | | | | | $ | 468,729 | | |
Renewables and Recovery Logistics
|
| | | | 105,164 | | | | | | 55,351 | | |
Total consolidated revenue
|
| | | $ | 465,184 | | | | | $ | 524,080 | | |
| | |
October 2, 2021
|
| |
December 31,
2020 |
| ||||||
Total Assets: | | | | ||||||||||
Telecom
|
| | | $ | 602,749 | | | | | $ | 579,147 | | |
Renewables and Recovery Logistics
|
| | | | 151,926 | | | | | | 55,370 | | |
Corporate
|
| | | | 14,890 | | | | | | 6,351 | | |
Total consolidated assets
|
| | | $ | 769,565 | | | | | $ | 640,868 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Capital Expenditures: | | | | ||||||||||
Telecom
|
| | | $ | 1,843 | | | | | $ | 6,712 | | |
Renewables and Recovery Logistics
|
| | | | 248 | | | | | | 7,936 | | |
Corporate
|
| | | | 1,059 | | | | | | 845 | | |
Total consolidated capital expenditures
|
| | | $ | 3,150 | | | | | $ | 15,493 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Amortization and Depreciation: | | | | ||||||||||
Amortization and depreciation | | | | | | | | | | | | | |
Telecom
|
| | | $ | 29,767 | | | | | $ | 30,539 | | |
Renewables and Recovery Logistics
|
| | | | 8,644 | | | | | | 3,734 | | |
Corporate
|
| | | | 726 | | | | | | 487 | | |
Total consolidated amortization and depreciation
|
| | | $ | 39,136 | | | | | $ | 34,761 | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Adjusted EBITDA Reconciliation: | | | | ||||||||||
Telecom adjusted EBITDA
|
| | | $ | 26,907 | | | | | $ | 16,028 | | |
Renewables and Recovery Logistics adjusted EBITDA
|
| | | | 42,181 | | | | | | 24,227 | | |
Corporate adjusted EBITDA
|
| | | | (13,097) | | | | | | (13,628) | | |
Total adjusted EBITDA
|
| | | $ | 55,991 | | | | | $ | 26,627 | | |
Less: | | | | | | | | | | | | | |
Management fees
|
| | | | (751) | | | | | | (391) | | |
Transaction expenses
|
| | | | (2,875) | | | | | | (567) | | |
Change in fair value of contingent consideration
|
| | | | 4,544 | | | | | | — | | |
Depreciation and amortization
|
| | | | (39,136) | | | | | | (34,761) | | |
Interest expense
|
| | | | (35,778) | | | | | | (28,824) | | |
Loss on extinguishment of convertible notes
|
| | | | (2,436) | | | | | | — | | |
| | | | $ | (20,441) | | | | | $ | (37,916) | | |
| | |
For the Nine Months Ended
|
| |||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||
Revenue by Service Offerings: | | | | ||||||||||
Telecom Wireless
|
| | | $ | 278,125 | | | | | $ | 359,792 | | |
Telecom Wireline
|
| | | | 73,296 | | | | | | 108,937 | | |
Telecom Power
|
| | | | 8,598 | | | | | | — | | |
Renewables
|
| | | | 25,086 | | | | | | — | | |
Recovery Logistics
|
| | | | 80,079 | | | | | | 55,351 | | |
Total
|
| | | $ | 465,184 | | | | | $ | 524,080 | | |
| | |
For the Nine Months Ended
|
| |||||||||||||||||||||
| | |
October 2, 2021
|
| |
October 3, 2020
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of Total
|
| |
Amountl
|
| |
% of Total
|
| ||||||||||||
Customers: | | | | | | ||||||||||||||||||||
AT&T
|
| | | $ | 189,381 | | | | | | 41% | | | | | $ | 282,807 | | | | | | 54% | | |
Entergy
|
| | | | 67,776 | | | | | | 15% | | | | | | * | | | | | | * | | |
T-Mobile
|
| | | | 59,369 | | | | | | 13% | | | | | | * | | | | | | * | | |
Verizon
|
| | | | 51,773 | | | | | | 11% | | | | | | 98,165 | | | | | | 19% | | |
Total
|
| | | $ | 368,299 | | | | | | 80% | | | | | $ | 380,972 | | | | | | 73% | | |
| | |
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| EXHIBITS | | | | |
|
Exhibit A
Form of Company A&R LLCA
|
| | | |
|
Exhibit B
Form of Tax Receivable Agreement
|
| | | |
|
Exhibit C
Form of Investor Rights Agreement
|
| | | |
|
Exhibit D
Form of Second A&R Buyer Certificate of Incorporation
|
| | | |
|
Exhibit E
Form of A&R Buyer Bylaws
|
| | | |
|
ACA
|
| |
Section 4.15(c)
|
|
|
Acquisition
|
| |
Section 7.1(b)
|
|
|
Additional Buyer Filings
|
| |
Section 8.9(f)
|
|
|
Additional Financial Information
|
| |
Section 8.9
|
|
|
Affiliated Transactions
|
| |
Section 4.19
|
|
|
Agreement
|
| |
Introduction
|
|
|
AIV Distributions
|
| |
Recitals
|
|
|
Antitrust Laws
|
| |
Section 8.8(c)
|
|
|
Attorney-Client Communications
|
| |
Section 13.16(b)
|
|
|
Audited Financial Statements
|
| |
Section 4.4(a)(i)
|
|
|
Authorized Action
|
| |
Section 14.1(b)
|
|
|
BCP NEA
|
| |
Recitals
|
|
|
BCP Note
|
| |
Recitals
|
|
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BCP Note Amount
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Recitals
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BCP Note Exchange
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Recitals
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BCP QualTek
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Recitals
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BCP QualTek Distributions
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Recitals
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BCP QualTek II
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Recitals
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Blocker
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Introduction
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Blocker Affiliated Transactions
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Section 5.9
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Blocker Bring-Down Certificate
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Section 11.2(d)
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Blocker Certificate of Merger
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Section 2.2(b)
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Blocker Effective Time
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Section 2.2(b)
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Blocker Merger
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Recitals
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Blocker Merger Closing
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Section 2.2(a)
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Blocker Merger Sub
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Introduction
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Blocker Owned AIV Partnership Equity Interests
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Section 5.4(b)
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Blocker Voting and Support Agreement
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Recitals
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Buyer
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Introduction
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Buyer Balance Sheet
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Section 6.11(c)
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Buyer Bring-Down Certificate
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Section 11.3(d)
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Buyer Certificate of Merger
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Section 2.2(c)
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Buyer Contribution Amount
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Section 3.2(c)(i)
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Buyer Effective Time
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Section 2.2(c)
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Buyer Merger
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Recitals
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Buyer Merger Closing
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Section 2.2(a)
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Buyer Parties
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Introduction
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Buyer Public Securities
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Section 6.9
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Buyer SEC Documents
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Section 6.8(a)
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Buyer Voting and Support Agreement
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Recitals, Recitals
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Buyer Warrants
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Section 6.3(a)
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Cancelled Equity Interests
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Section 3.1(d)
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CBA
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Section 4.9(a)(i)
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Certificates of Merger
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Section 2.2(d)
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Closing
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Section 2.2(a)
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closing agreement
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Section 4.8(g)
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Closing Date
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Section 2.2(a)
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Closing Form 8-K
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Section 8.9(g)
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Closing Press Release
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Section 8.9(g)
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Company
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Introduction
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Company A&R LLCA
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Recitals
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Company Bring-Down Certificate
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Section 11.2(d)
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Company Certificate of Merger
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Section 2.2(d)
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Company Effective Time
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Section 2.2(d)
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Company Merger
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Recitals
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Company Merger Closing
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Section 2.2(a)
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Company Merger Sub
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Introduction
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Company Voting and Support Agreement
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Recitals
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Competing Buyer
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Section 8.16(a)
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Contribution Common Units
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Section 3.2(c)(i)
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D&O Provisions
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Section 8.12(a)
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DGCL
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Recitals
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DLLCA
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Recitals
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Earnout Notice
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Section 3.7(b)(ii)
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Earnout Period
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Section 3.7(c)(i)
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Earnout Restrictions
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Section 3.7(b)(iv)
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Effective Date
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Introduction
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Environmental Permits
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Section 4.18
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Equityholder Representative
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Introduction
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Equityholders Prepared Returns
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Section 10.1(a)
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Financial Statements
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Section 4.4(a)
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Founder Shares Agreement
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Recitals
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Indemnified Persons
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Section 8.12(a)
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Initial Financial Information
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Section 8.9(h)
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Insurance Policies
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Section 4.16
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Intended Tax Treatment
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Section 10.1(d)
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Internal Controls
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Section 4.4(c)
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Investor Rights Agreement
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Recitals
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IRS
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Section 4.15(a)
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JOBS Act
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Section 8.3(b)
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Kirkland
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Section 13.16(a)
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LLCA Amendment and Restatement
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Section 3.1(e)
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Material Contract
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Section 4.9(b)
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Material Customer
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Section 4.9(c)
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Material Leases
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Section 4.7(b)
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Material Supplier
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Section 4.9(d)
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Mergers
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Recitals
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Non-Party Affiliate
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Section 13.14
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NPAs
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Recitals
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Outside Date
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Section 12.1(c)
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Other Pre-PIPE Securities
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| |
Recitals
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Parties
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| |
Introduction
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Party
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| |
Introduction
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PCAOB Financial Statements
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Section 8.9(h)
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Permits
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Section 4.17(b)
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PIPE Investment
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Recitals
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PIPE Investors
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Recitals
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Pre-Closing Period
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Section 7.1
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Pre-Closing Reorganization
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Recitals
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Pre-PIPE Investment
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Recitals
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Pre-PIPE Investors
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Recitals
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Pre-PIPE Notes
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Recitals
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Pre-PIPE Registration Rights Agreements
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Recitals
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Registration Rights Agreements
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Recitals
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Signing Form 8-K
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Section 8.9(b)
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Signing Press Release
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Section 8.9(b)
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Subscription Agreements
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Recitals
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Surviving Blocker
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Section 2.1(a)
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Surviving Blocker Interests
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Section 3.1(a)(i)
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Surviving Buyer
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Section 2.1(b)
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Surviving Company
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Section 2.1(c)
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Tail Policy
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Section 8.12(b)(ii)
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Tax Contest
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Section 10.1(f)
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Tax Positions
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Section 10.1(e)
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Tax Receivable Agreement
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Recitals
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Triggering Event
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Section 3.7(c)
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Trust Amount
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Section 6.7
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Trust Distributions
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Section 13.9
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Unaudited Balance Sheet
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Section 4.4(a)(ii)
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Unaudited Financial Statements
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Section 4.4(a)(ii)
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Warrant Accounting Issue
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Section 6.3(d)
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Notices to the Buyer Parties:
CR Financial Holdings, Inc. 888 San Clemente Drive, Suite 400 Newport Beach, CA 92660 Attention: Byron Roth E-mail: |
| |
with a copy to (which shall not constitute notice):
Loeb & Loeb LLP 345 Park Avenue New York, New York 10154 Attention: Mitchell Nussbaum, Esq. E-mail: |
|
|
Notices to Equityholder Representative, the Blocker and the Company:
BCP QualTek Holdco, LLC 475 Sentry Parkway E Blue Bell, PA 19422 Attention: Scott Hisey E-mail:
and
BCP QualTek, LLC
650 5th Avenue New York, New York 10019 Attention: Andrew Weinberg Matthew Allard E-mail: |
| |
with copies to (which shall not constitute notice):
Kirkland & Ellis LLP
601 Lexington Avenue New York, New York 10022 Attention: Michael E. Weisser, P.C. Matthew S. Arenson, P.C. Timothy Cruickshank, P.C. Erika P. López E-mail: |
|
| | | | ROTH CH ACQUISITION III CO. | |
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By:
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Exhibits | | | | |
Exhibit A: Capitalization
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Exhibit B: Exchange Notice
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Exhibit C: Officers
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Exhibit D: Joinder
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| | | | [Unitholder] | |
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| | | | [TRANSFEROR] | |
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| | | | [TRANSFEREE] | |
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| | | | Address for notices: | |
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By: |
|
By: |
|
Common Stock Beneficially Owned by the Sellers
as a Percentage of the Common Stock Beneficially Owned by the Sellers on the Closing Date |
| |
Number of
Seller Directors |
| |||
70% or greater
|
| | | | 7 | | |
60% or greater, but less than 70%
|
| | | | 6 | | |
50% or greater, but less than 60%
|
| | | | 5 | | |
40% or greater, but less than 50%
|
| | | | 4 | | |
30% or greater, but less than 40%
|
| | | | 3 | | |
20% or greater, but less than 30%
|
| | | | 2 | | |
Greater than 10%, but less than 20%
|
| | | | 1 | | |
Common Stock Beneficially Owned by the Sponsors and the Other Holders and their respective Permitted
Transferees as a Percentage of the Common Stock Beneficially Owned by the Sponsors or the Other Holders and their respective Permitted Transferees on the Closing Date |
| |
Number of Sponsors
Directors |
| |||
40% or greater
|
| | | | 1 | | |
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