|
Delaware
|
| |
6770
|
| |
83-3584928
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Mitchell Nussbaum, Esq.
Janeane R. Ferrari, Esq. Loeb & Loeb LLP 345 Park Avenue New York, NY 10154 Phone: (212) 407-4000 |
| |
Tim Cruickshank, Esq.
Kirkland & Ellis LLP 601 Lexington Avenue New York, New York 10022 (212) 446-4800 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☒
|
|
| | |
Page
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| | | | 137 | | | |
| | | | 137 | | | |
| | | | F-1 | | |
| | |
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 | | |
| | |
Assuming
No Redemptions |
| | | | | | | |
Assuming
Maximum Redemptions |
| | | | | | | ||||||
| | |
(Shares)
|
| |
%
|
| |
(Shares)
|
| |
%
|
| ||||||||||||
Existing QualTek equityholders
|
| | | | 30,688,837 | | | | | | 49% | | | | | | 30,688,837 | | | | | | 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 | | | | | | 14% | | |
PIPE Shares(1)
|
| | | | 4,676,500 | | | | | | 7% | | | | | | 4,676,500 | | | | | | 9% | | |
Earnout Shares
|
| | | | 6,111,111 | | | | | | 10% | | | | | | 6,111,111 | | | | | | 12% | | |
Total Common Stock
|
| | | | 63,196,948 | | | | | | | | | | | | 51,696,948 | | | | | | | | |
| | |
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
|
| | | | $ | 264,043 | | | | | | (115,000) | | | | |
|
J
|
| | | | $ | 149,043 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 41,415 | | | | |
|
C
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) | | | | |
|
E
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,018) | | | | |
|
F
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 117,141 | | | | |
|
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 | | | | | | 258,544 | | | | | | | | | | | | 536,782 | | | | | | (115,000) | | | | | | | | | | | | 421,782 | | |
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 | | | | | $ | 143,537 | | | | | | | | | | | $ | 1,028,490 | | | | | $ | (115,000) | | | | | | | | | | | $ | 913,490 | | |
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
|
| | | | | — | | | | | | — | | | | | | | | | | | | — | | |
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 | | | | | | | | | | | | 117,141 | | | | |
|
O
|
| | | | | 546,174 | | | | | | — | | | | | | | | | | | | 546,174 | | |
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
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 35,637 | | | | |
|
L
|
| | | | | 35,637 | | | | | | (263) | | | | |
|
L
|
| | | | | 35,374 | | |
Total liabilities
|
| | | | 758,708 | | | | | | (67,470) | | | | | | | | | | | | 691,238 | | | | | | 612 | | | | | | 152,777 | | | | | | | | | | | | 844,627 | | | | | | (263) | | | | | | | | | | | | 844,364 | | |
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 | | | | | | 41,414 | | | | |
|
C
|
| | | | | 378,782 | | | | | | (114,999) | | | | |
|
J
|
| | | | | 306,932 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (7,334) | | | | |
|
F
|
| | | | | | | | | | | 263 | | | | |
|
L
|
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 114,999 | | | | |
|
G
|
| | | | | | | | | | | 42,886 | | | | |
|
M
|
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 279,160 | | | | |
|
H
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,425) | | | | |
|
I
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
|
K
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 52,099 | | | | |
|
N
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (102,596) | | | | |
|
M
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (35,637) | | | | |
|
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
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 102,596 | | | | |
|
M
|
| | | | | 102,596 | | | | | | (42,886) | | | | |
|
M
|
| | | | | 59,710 | | |
Total equity (deficit)
|
| | | | 10,857 | | | | | | 67,470 | | | | | | | | | | | | 78,327 | | | | | | 114,776 | | | | | | (9,240) | | | | | | | | | | | | 183,863 | | | | | | (114,737) | | | | | | | | | | | | 69,126 | | |
Total liabilities and equity (deficit)
|
| | | $ | 769,565 | | | | | $ | — | | | | | | | | | | | $ | 769,565 | | | | | $ | 115,388 | | | | | $ | 143,537 | | | | | | | | | | | $ | 1,028,490 | | | | | $ | (115,000) | | | | | | | | | | | $ | 913,490 | | |
|
| | |
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) | | |
Depreciation and amortization
|
| | | | 39,136 | | | | | | — | | | | | | | | | | | | 39,136 | | | | | | — | | | | | | — | | | | | | | | | | | | 39,136 | | | | | | — | | | | | | | | | | | | 39,136 | | |
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) | | | | | | — | | | | | | (11,652) | | | | |
|
HH
|
| | | | | (40,690) | | | | | | — | | | | | | | | | | | | (40,690) | | |
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) | | | | | | (11,659) | | | | | | | | | | | | (42,737) | | | | | | — | | | | | | | | | | | | (42,737) | | |
Income tax benefit (provision)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 883 | | | | |
|
DD
|
| | | | | 883 | | | | | | — | | | | | | | | | | | | 883 | | |
Loss from continuing operations
|
| | | | (20,441) | | | | | | 6,740 | | | | | | | | | | | | (13,701) | | | | | | (1,422) | | | | | | (9,217) | | | | | | | | | | | | (24,340) | | | | | | — | | | | | | | | | | | | (24,340) | | |
Loss from discontinued operations
|
| | | | (8,114) | | | | | | — | | | | | | | | | | | | (8,114) | | | | | | — | | | | | | — | | | | | | | | | | | | (8,114) | | | | | | — | | | | | | | | | | | | (8,114) | | |
Net loss
|
| | | | (28,555) | | | | | | 6,740 | | | | | | | | | | | | (21,815) | | | | | | (1,422) | | | | | | (9,217) | | | | | | | | | | | | (32,454) | | | | | | — | | | | | | | | | | | | (32,454) | | |
Other comprehensive income:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation
adjustment |
| | | | 75 | | | | | | — | | | | | | | | | | | | 75 | | | | | | — | | | | | | — | | | | | | | | | | | | 75 | | | | | | — | | | | | | | | | | | | 75 | | |
Comprehensive loss
|
| | | $ | (28,480) | | | | | $ | 6,740 | | | | | | | | | | | $ | (21,740) | | | | | $ | (1,422) | | | | | $ | (9,217) | | | | | | | | | | | $ | (32,379) | | | | | $ | — | | | | | | | | | | | $ | (32,379) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (11,789) | | | | |
|
FF
|
| | | | | (11,789) | | | | | | (2,623) | | | | |
|
FF
|
| | | | | (14,412) | | |
Net loss attributable to controlling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (20,590) | | | | | | | | | | | | | | | | | $ | (17,967) | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per
unit from continuing operations |
| | | $ | (10.21) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
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
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 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (0.61) | | | | | | | | | | | | (0.81) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 31,383,438 | | | | | | | | | | | | 19,883,438 | | |
| | |
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 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) | | | | | | — | | | | | | (15,536) | | | | |
|
HH
|
| | | | | (53,195) | | | | | | — | | | | | | | | | | | | (53,195) | | |
Loss on extinguishment of debt
|
| | | | | | | | | | (7,498) | | | | |
|
GG
|
| | | | | (7,498) | | | | | | — | | | | | | — | | | | | | | | | | | | (7,498) | | | | | | — | | | | | | | | | | | | (7,498) | | |
Total other income (expense)
|
| | | | (36,930) | | | | | | (7,498) | | | | | | | | | | | | (44,428) | | | | | | — | | | | | | (15,536) | | | | | | | | | | | | (59,964) | | | | | | — | | | | | | | | | | | | (59,964) | | |
Income tax benefit
(provision) |
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | 8,489 | | | | |
|
DD
|
| | | | | 8,489 | | | | | | — | | | | | | | | | | | | 8,489 | | |
Loss from continuing
operations |
| | | | (94,222) | | | | | | (7,498) | | | | | | | | | | | | (101,720) | | | | | | (1) | | | | | | (16,290) | | | | | | | | | | | | (118,011) | | | | | | — | | | | | | | | | | | | (118,011) | | |
Loss from discontinued operations
|
| | | | (3,865) | | | | | | — | | | | | | | | | | | | (3,865) | | | | | | | | | | | | — | | | | | | | | | | | | (3,865) | | | | | | | | | | | | | | | | | | (3,865) | | |
Net loss
|
| | | | (98,087) | | | | | | (7,498) | | | | | | | | | | | | (105,585) | | | | | | (1) | | | | | | (16,290) | | | | | | | | | | | | (121,876) | | | | | | — | | | | | | | | | | | | (121,876) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | 239 | | | | | | — | | | | | | | | | | | | 239 | | | | | | — | | | | | | — | | | | | | | | | | | | 239 | | | | | | — | | | | | | | | | | | | 239 | | |
Comprehensive loss
|
| | | $ | (97,848) | | | | | $ | (7,498) | | | | | | | | | | | $ | (105,346) | | | | | $ | (1) | | | | | $ | (16,290) | | | | | | | | | | | $ | (121,637) | | | | | $ | — | | | | | | | | | | | $ | (121,637) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (59,127) | | | | |
|
FF
|
| | | | | (59,127) | | | | | | (13,153) | | | | |
|
FF
|
| | | | | (72,280) | | |
Net loss attributable to controlling
interest |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (62,510) | | | | | | | | | | | | | | | | | $ | (49,357) | | |
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) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average common shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | 2,500,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
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 net loss per share from continuing operations
|
| | | | | | | | | | | | | | | | | | | | | | | | $ | (1.86) | | | | | | | | | | | $ | (2.23) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | 31,383,438 | | | | | | | | | | | | 19,883,438 | | |
| | |
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)
|
| | | $ | 183,863 | | | | | $ | (114,737) | | | | | $ | 69,126 | | | | | | | | |
Adjustments to equity excluded from the calculation of noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Payable to related parties pursuant to tax receivable agreement
|
| | | | 35,637 | | | | | | (263) | | | | | | 35,374 | | | | | | (L) | | |
Adjusted total equity (deficit)
|
| | | $ | 219,500 | | | | | $ | (115,000) | | | | | $ | 104,500 | | | | | | | | |
Retained interest of Qualtek equityholders
|
| | | | 47% | | | | | | | | | | | | 57% | | | | | | | | |
Noncontrolling interest
|
| | | $ | 102,596 | | | | | $ | (42,886) | | | | | $ | 59,710 | | | | | | | | |
| | |
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
|
| | | $ | 100,000 | | | | | $ | — | | | | | $ | 100,000 | | |
Initial PIPE Investment expected to be funded through Convertible Note
|
| | | | 24,685 | | | | | | — | | | | | | 24,685 | | |
Less: Convertible Note financing fees
|
| | | | (7,544) | | | | | | — | | | | | | (7,544) | | |
Total pro forma adjustment
|
| | | $ | 117,141 | | | | | $ | — | | | | | $ | 117,141 | | |
| | |
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
|
| | | | (24,340) | | | | | | — | | | | | | (24,340) | | |
Pro Forma Combined Income tax provision
|
| | | | 883 | | | | | | — | | | | | | 883 | | |
Pro Forma Combined Pre-tax loss from continuing operations
|
| | | | (25,223) | | | | | | — | | | | | | (25,223) | | |
Retained interest of QualTek equityholders
|
| | | | 47% | | | | | | | | | | | | 57% | | |
Pro Forma Combined income/(loss) from continuing operations related to noncontrolling interest
|
| | | | (11,789) | | | | | | (2,623) | | | | | | (14,412) | | |
| | |
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
|
| | | | (118,011) | | | | | | — | | | | | | (118,011) | | | | ||
Pro Forma Combined Income tax provision
|
| | | | 8,489 | | | | | | — | | | | | | 8,489 | | | | ||
Pro Forma Combined Pre-tax loss from continuing operations
|
| | | | (126,500) | | | | | | — | | | | | | (126,500) | | | | ||
Retained interest of QualTek equityholders
|
| | | | 47% | | | | | | | | | | | | 57% | | | | ||
Pro Forma Combined income/(loss) from continuing operations related to noncontrolling interest
|
| | | | (59,127) | | | | | | (13,153) | | | | | | (72,280) | | | |
| | |
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
|
| | | | 10,520 | | | | | | — | | | | | | 10,520 | | | | ||
Amortization of deferred financing fees
|
| | | | 1,132 | | | | | | — | | | | | | 1,132 | | | | ||
Total pro forma adjustment
|
| | | $ | 11,652 | | | | | $ | — | | | | | $ | 11,652 | | | |
| | |
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
|
| | | | 14,027 | | | | | | — | | | | | | 14,027 | | | | ||
Amortization of deferred financing fees
|
| | | | 1,509 | | | | | | — | | | | | | 1,509 | | | | ||
Total pro forma adjustment
|
| | | $ | 15,536 | | | | | $ | — | | | | | $ | 15,536 | | | |
| | |
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)
|
| | | $ | (20,590) | | | | | $ | (17,967) | | | | | $ | (62,510) | | | | | $ | (49,357) | | |
Less: undistributed earnings attributable to Class A Earnout Shares
|
| | | | (1,392) | | | | | | (1,845) | | | | | | (4,225) | | | | | | (5,067) | | |
Pro forma income (loss) from continuing operations attributable to common shareholders (in thousands) – basic
|
| | | $ | (19,198) | | | | | $ | (16,122) | | | | | $ | (58,285) | | | | | $ | (44,290) | | |
Weighted average common shares outstanding – basic
and diluted |
| | | | 31,383,439 | | | | | | 19,883,439 | | | | | | 31,383,439 | | | | | | 19,883,439 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.61) | | | | | $ | (0.81) | | | | | $ | (1.86) | | | | | $ | (2.23) | | |
Weighted average common shares calculation | | | | | | | | | | | | | | | | | | | | | | | | | |
Existing QualTek Equity Holders
|
| | | | 11,932,939 | | | | | | 11,923,939 | | | | | | 11,923,939 | | | | | | 11,923,939 | | |
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
|
| | | | 4,676,500 | | | | | | 4,676,500 | | | | | | 4,676,500 | | | | | | 4,676,500 | | |
Weighted average common shares outstanding, basic
and diluted |
| | | | 31,383,439 | | | | | | 19,883,439 | | | | | | 31,383,439 | | | | | | 19,883,439 | | |
| | |
Pro Forma Combined
(Assuming No Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| ||||||
Excluded from the calculation(1) | | | | | | | | | | | | | |
Class B Common Stock
|
| | | | 29,538,575 | | | | | | 29,538,575 | | |
Private Warrants
|
| | | | 102,000 | | | | | | 102,000 | | |
Public Warrants
|
| | | | 2,875,000 | | | | | | 2,875,000 | | |
Convertible Notes
|
| | | | 12,468,500 | | | | | | 12,468,500 | | |
Total potentially dilutive shares excluded from calculation
|
| | | | 44,984,075 | | | | | | 44,984,075 | | |
| | | | | | | | | | | | | | |
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) | | | | | $ | 5.46 | | | | | $ | 3.12 | | |
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
|
| | | | | | | | | | | | | | | | 31,383,439 | | | | | | 19,883,439 | | |
Net loss per share of common stock – basic and diluted
|
| | | | | | | | | | | | | | | $ | (0.61) | | | | | $ | (0.81) | | |
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 | | | | | | 31,383,439 | | | | | | 19,883,439 | | |
Net loss per share of common stock – basic and diluted
|
| | | | | | | | | $ | (0.00) | | | | | $ | (1.86) | | | | | $ | (2.23) | | |
Weighted average share common units outstanding – basic and diluted
|
| | | | 2,005,824 | | | | | | | | | | | | | | | | | | | | |
Net loss per unit – basic and diluted
|
| | | $ | (50.54) | | | | | | | | | | | | | | | | | | | | |
| | |
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
|
| |||||||||||||||||||||||||||
| | | | | | | | |
Less than
|
| | | | | | | | | | | | | |
More than
|
| ||||||
(in thousands)
|
| |
Total
|
| |
1 Year
|
| |
1 — 3 Years
|
| |
3 — 5 Years
|
| |
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
|
| | 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) | | |
49
|
| | Director | |
Maha Eltobgy(1) | | |
51
|
| | Director | |
Renee Noto(1) | | |
55
|
| | Director | |
Jigisha Desai(3) | | |
55
|
| | Director | |
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 ($)(2)(3)
|
| |
Total ($)(4)
|
| |||||||||
Christopher S. Hisey, Chief Executive Officer, QualTek LLC(1)
|
| | | | 2021 | | | | | $ | 500,000 | | | | | $ | 500,000 | | |
| | | | | 2020 | | | | | $ | 501,154 | | | | | $ | 501,154 | | |
Elizabeth Downey, Chief Administrative Officer, QualTek LLC
|
| | | | 2021 | | | | | $ | 375,000 | | | | | $ | 375,000 | | |
| | | | | 2020 | | | | | $ | 375,433 | | | | | $ | 375,433 | | |
Kevin Doran, Chief Executive Officer, QualTek Wireless LLC
|
| | | | 2021 | | | | | $ | 450,500 | | | | | $ | 450,500 | | |
| | | | | 2020 | | | | | $ | 450,520 | | | | | $ | 450,520 | | |
| | | | | |
Option Awards(1)
|
| |||||||||||||||||||||
| | |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($)(2) |
| |
Option
Expiration Date(2) |
| ||||||||||||
Christopher S, Hisey
|
| |
April 15, 2019
|
| | | | 18,457 | | | | | | 12,305(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 20,508 | | | | | | 13,672(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 22,921 | | | | | | 15,280(5) | | | | | | — | | | | | | — | | |
Elizabeth Downey
|
| |
April 15, 2019
|
| | | | 3,384 | | | | | | 2,256(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 3,760 | | | | | | 2,506(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 4,202 | | | | | | 2,801(5) | | | | | | — | | | | | | — | | |
| | | | | |
Option Awards(1)
|
| |||||||||||||||||||||
| | |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($)(2) |
| |
Option
Expiration Date(2) |
| ||||||||||||
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) | | | | | | — | | | | | | — | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| | ||||||||||||||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No Redemption
|
| |
Assuming 100% Redemption
|
| | | | |||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial
Owner |
| |
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(1)(2)
|
| | | | 1,028,876 | | | | | | 7.0% | | | | | | 1,623,464 | | | | | | — | | | | | | 2.8% | | | | | | 1,623,464 | | | | | | — | | | | | | 3.6% | | | | ||
Aaron Gurewitz(1)(3)
|
| | | | 119,540 | | | | | | 0.8% | | | | | | 136,202 | | | | | | — | | | | | | * | | | | | | 136,202 | | | | | | — | | | | | | * | | | | ||
Gordon Roth(1)(2)
|
| | | | 672,956 | | | | | | 4.6% | | | | | | 1,275,044 | | | | | | — | | | | | | 2.2% | | | | | | 1,275,044 | | | | | | — | | | | | | 2.8% | | | | ||
John Lipman(1)
|
| | | | 699,381 | | | | | | 4.7% | | | | | | 796,862 | | | | | | — | | | | | | 1.4% | | | | | | 796,862 | | | | | | — | | | | | | 1.7% | | | | ||
Rick Hartfiel(1)
|
| | | | 89,577 | | | | | | * | | | | | | 102,062 | | | | | | — | | | | | | * | | | | | | 102,062 | | | | | | — | | | | | | * | | | | ||
Molly Montgomery(1)
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | — | | | | | | * | | | | | | 40,233 | | | | | | — | | | | | | * | | | | ||
Daniel M. Friedberg(1)(4)
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | — | | | | | | * | | | | | | 40,233 | | | | | | — | | | | | | * | | | | ||
Adam Rothstein(1)
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | — | | | | | | * | | | | | | 40,233 | | | | | | — | | | | | | * | | | | ||
Sam Chawla(1)
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | — | | | | | | * | | | | | | 91,194 | | | | | | — | | | | | | * | | | | ||
James Gold(1)
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | — | | | | | | * | | | | | | 91,194 | | | | | | — | | | | | | * | | | | ||
All Directors and Executive Officers of ROCR as a Group (8 Individuals)
|
| | | | 2,332,813 | | | | | | 15.8% | | | | | | 3,061,529 | | | | | | — | | | | | | 5.4% | | | | | | 3,061,529 | | | | | | — | | | | | | 6.7% | | | | ||
Five Percent Holders ROCR:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Weiss Asset Management(5)
|
| | | | 1,253,902 | | | | | | 8.4% | | | | | | 1,253,902 | | | | | | — | | | | | | 2.2% | | | | | | 1,253,902 | | | | | | — | | | | | | 2.8% | | | | ||
Byron Roth(1)(6)
|
| | | | 1,028,876 | | | | | | 7.0% | | | | | | 1,623,464 | | | | | | — | | | | | | 2.8% | | | | | | 1,623,464 | | | | | | — | | | | | | 3.6% | | | | ||
Sanders Morris Harris LLC(7)
|
| | | | 873,035 | | | | | | 5.9% | | | | | | 873,035 | | | | | | — | | | | | | 3.5% | | | | | | 873,035 | | | | | | — | | | | | | 4.4% | | | | ||
Glazer Capital, LLC(8)
|
| | | | 740,954 | | | | | | 5.0% | | | | | | 740,954 | | | | | | — | | | | | | 1.3% | | | | | | 740,954 | | | | | | — | | | | | | 1.6% | | | | ||
Directors and Executive Officers of Combined Company After Consummation of the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Christopher S. Hisey(9)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 798,771 | | | | | | 1.4% | | | | | | — | | | | | | 798,771 | | | | | | 1.8% | | | | ||
Elizabeth Downey(9)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 157,441 | | | | | | * | | | | | | — | | | | | | 157,441 | | | | | | * | | | | ||
Michael B. Williams(9)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 70,449 | | | | | | * | | | | | | — | | | | | | 70,449 | | | | | | * | | | | ||
Adam Spittler(9)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 89,306 | | | | | | * | | | | | | — | | | | | | 89,306 | | | | | | * | | | | ||
Andrew Weinberg(10)(11)
|
| | | | — | | | | | | — | | | | | | 12,673,940 | | | | | | 13,939,005 | | | | | | 46.6% | | | | | | 12,673,940 | | | | | | 13,939,005 | | | | | | 58.4% | | | | ||
Matthew Allard(10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| | ||||||||||||||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No Redemption
|
| |
Assuming 100% Redemption
|
| | | | |||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial
Owner |
| |
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 |
| | ||||||||||||||||||||||||||
Sam Chawla(1)
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | — | | | | | | * | | | | | | 91,194 | | | | | | — | | | | | | * | | | | ||
Raul Deju(10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Roger Bulloch(10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Maha Eltobgy(10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Renee Noto(10)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Jigisha Desai(9)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
All Directors and Executive Officers of Combined Company as a Group
(12 Individuals) |
| | | | | | | | | | | | | | | | 12,765,134 | | | | | | 15,054,972 | | | | | | 48.7% | | | | | | 12,765,134 | | | | | | 15,054,972 | | | | | | 61.0% | | | | ||
Five Percent Holders of Combined Company After Consummation of the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Brightstar(10)(12)
|
| | | | — | | | | | | — | | | | | | 12,673,940 | | | | | | 13,939,005 | | | | | | 46.6% | | | | | | 12,673,940 | | | | | | 13,939,005 | | | | | | 58.4% | | | |
NAME OF SELLING SHAREHOLDER
|
| |
Number of
Shares of Class A Common Stock Owned Prior to the Offering |
| |
Maximum Number
of Shares of Class A Common Stock To Be Sold Pursuant to this Prospectus |
| |
Number of
Shares of Class A Common Stock Owned After the Offering |
| |
Percent
of Shares of Class A Common Stock Owned After the Offering(1) |
| ||||||||||||
Victoria Partner LP(2)
|
| | | | 2,656,250 | | | | | | 2,656,250 | | | | | | — | | | | | | — | | |
ZCA Private Investments Fund II, LP(3)
|
| | | | 468,750 | | | | | | 468,750 | | | | | | — | | | | | | — | | |
CVI Investments, Inc.(4)
|
| | | | 781,250 | | | | | | 781,250 | | | | | | — | | | | | | — | | |
DS Liquid Div RVA MON LLC(5)
|
| | | | 439,453 | | | | | | 439,453 | | | | | | — | | | | | | — | | |
Monashee Solitario Fund LP(6)
|
| | | | 263,672 | | | | | | 263,672 | | | | | | — | | | | | | — | | |
Pacera Larson Ventures LLC(7)
|
| | | | 546,875 | | | | | | 546,875 | | | | | | — | | | | | | — | | |
ACT Capital Partners, LP(8)
|
| | | | 156,250 | | | | | | 156,250 | | | | | | — | | | | | | — | | |
The Ecker Family Partnership(9)
|
| | | | 31,250 | | | | | | 31,250 | | | | | | — | | | | | | — | | |
Gingko Fund, LLC(10)
|
| | | | 228,125 | | | | | | 228,125 | | | | | | — | | | | | | — | | |
Whitethorne Fund, LLC(11)
|
| | | | 131,250 | | | | | | 131,250 | | | | | | — | | | | | | — | | |
Granite Point Capital Master Fund, LP(12)
|
| | | | 156,250 | | | | | | 156,250 | | | | | | — | | | | | | — | | |
Granite Point Capital Scorpion Focused Ideas Fund(13)
|
| | | | 78,125 | | | | | | 78,125 | | | | | | — | | | | | | — | | |
Emerson 1993 Family Trust(14)
|
| | | | 343,750 | | | | | | 343,750 | | | | | | — | | | | | | — | | |
Emerson Partners(15)
|
| | | | 93,750 | | | | | | 93,750 | | | | | | — | | | | | | — | | |
SNP Family Partnership(16)
|
| | | | 187,500 | | | | | | 187,500 | | | | | | — | | | | | | — | | |
David S. Zelman(17)
|
| | | | 78,125 | | | | | | 78,125 | | | | | | — | | | | | | — | | |
NAME OF SELLING SHAREHOLDER
|
| |
Number of
Shares of Class A Common Stock Owned Prior to the Offering |
| |
Maximum Number
of Shares of Class A Common Stock To Be Sold Pursuant to this Prospectus |
| |
Number of
Shares of Class A Common Stock Owned After the Offering |
| |
Percent
of Shares of Class A Common Stock Owned After the Offering(1) |
| ||||||||||||
Millrace Capital, LP(18)
|
| | | | 45,704 | | | | | | 45,704 | | | | | | — | | | | | | — | | |
Millrace Fund, LP(19)
|
| | | | 488,672 | | | | | | 488,672 | | | | | | — | | | | | | — | | |
BCP QualTek, LLC(20)
|
| | | | 750,000 | | | | | | 750,000 | | | | | | — | | | | | | — | | |
Casing & Co. F/B/O Wasatch Micro Cap
Fund(21) |
| | | | 2,125,000 | | | | | | 2,125,000 | | | | | | — | | | | | | — | | |
Roth Capital Partners, LLC(22)
|
| | | | 607,231 | | | | | | 594,588 | | | | | | 12,643 | | | | | | * | | |
Aaron M. Gurewitz, as Trustee of the AMG Trust
established January 23, 2007(23) |
| | | | 136,202 | | | | | | 16,662 | | | | | | 119,540 | | | | | | * | | |
Gordon J. Roth(24)
|
| | | | 99,852 | | | | | | 7,500 | | | | | | 92,352 | | | | | | * | | |
Matthew Day(25)
|
| | | | 16,093 | | | | | | 2,000 | | | | | | 14,093 | | | | | | * | | |
Theodore D. Roth(26)
|
| | | | 57,298 | | | | | | 5,000 | | | | | | 52,298 | | | | | | * | | |
Mike Anderson(27)
|
| | | | 51,031 | | | | | | 6,243 | | | | | | 44,788 | | | | | | * | | |
Brad Baker(28)
|
| | | | 102,062 | | | | | | 12,485 | | | | | | 89,577 | | | | | | * | | |
Craig-Hallum Capital Group LLC(29)
|
| | | | 589,761 | | | | | | 450,235 | | | | | | 139,526 | | | | | | * | | |
Steve Dyer(30)
|
| | | | 51,031 | | | | | | 6,243 | | | | | | 44,788 | | | | | | * | | |
Kevin Harris(31)
|
| | | | 102,062 | | | | | | 12,485 | | | | | | 89,577 | | | | | | * | | |
William F. Hartfiel III(32)
|
| | | | 102,062 | | | | | | 12,485 | | | | | | 89,577 | | | | | | * | | |
Donald Ryan Hultstrand(33)
|
| | | | 76,547 | | | | | | 9,364 | | | | | | 67,183 | | | | | | * | | |
Dan Kapke(34)
|
| | | | 25,515 | | | | | | 3,121 | | | | | | 22,394 | | | | | | * | | |
John Lipman(35)
|
| | | | 796,862 | | | | | | 97,481 | | | | | | 699,381 | | | | | | 2.23% | | |
Christian Schwab(36)
|
| | | | 25,515 | | | | | | 3,121 | | | | | | 22,394 | | | | | | * | | |
George Sutton(37)
|
| | | | 51,031 | | | | | | 6,243 | | | | | | 44,788 | | | | | | * | | |
James Zavoral(38)
|
| | | | 51,031 | | | | | | 6,243 | | | | | | 44,788 | | | | | | * | | |
Patriot Strategy Partners LLC(39)
|
| | | | 250,000 | | | | | | 250,000 | | | | | | — | | | | | | — | | |
Harbour Holdings Ltd.(40)
|
| | | | 6,250 | | | | | | 6,250 | | | | | | — | | | | | | — | | |
Skylands Special Investment LLC(41)
|
| | | | 46,875 | | | | | | 46,875 | | | | | | — | | | | | | — | | |
Skylands Special Investment II LLC(42)
|
| | | | 9,375 | | | | | | 9,375 | | | | | | — | | | | | | — | | |
| | |
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 | | |
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) | | |
Balance Sheet as of March 05, 2021 (unaudited)
|
| |
As Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
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 | | |
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% | | |
| | |
Amount
to be paid |
| |||
SEC registration fee
|
| | | $ | 10,744.65 | | |
Accounting fees and expenses
|
| | | | * | | |
Legal fees and expenses
|
| | | | * | | |
Printing and miscellaneous expenses
|
| | | | * | | |
Total
|
| | | | * | | |
Exhibit
Number |
| |
Description of Exhibit
|
|
10.11 | | | Form of Investor Rights Agreement, by and among (i) Roth CH Acquisition III Co.; (ii) each of the parties listed on Schedule 1 attached thereto; (iii) the Equityholder Representative; (iv) the Sponsors; the Sponsor Representative; and (v) the Persons listed as Other Holders on the signature pages thereto and other Persons who execute a joinder as an “Other Holder”.(2) | |
10.12 | | | | |
10.13 | | | | |
10.14 | | | | |
10.15 | | | | |
10.16 | | | | |
10.17 | | | Form of Acknowledgement, Waiver and Consent Agreement, dated as of January 14, 2022, by and between BCP QualTek HoldCo, LLC, Roth CH Acquisition III Co. and Pre-PIPE Investors.(7) | |
10.18 | | | Form of Waiver and Amendment No. 1, dated as of January 14, 2022, by and between ROTH CH Acquisition III Co. and PIPE Investors.(7) | |
10.19 | | | Form of Acknowledgement, Waiver and Consent Agreement, by and among BCP QualTek HoldCo, LLC, the purchasers of the Notes listed as signatories thereto, and Roth CH Acquisition III Co.(7) | |
21.1 | | | | |
23.1 | | | | |
23.2 | | | | |
23.3 | | | | |
24.1 | | | | |
101.INS | | | Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | | | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | | | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | | | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | | | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | | | Cover Page Interactive Data File — the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
107 | | | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Byron Roth
Byron Roth
|
| |
Co-Chief Executive Officer and Chairman of the Board
(Principal Executive Officer) |
| |
February 14, 2022
|
|
|
/s/ Gordon Roth
Gordon Roth
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
| |
February 14, 2022
|
|
|
/s/ *
John Lipman
|
| | Co-Chief Executive Officer and Director | | |
February 14, 2022
|
|
|
/s/ *
Molly Montgomery
|
| | Director | | |
February 14, 2022
|
|
|
/s/ *
Daniel M. Friedberg
|
| | Director | | |
February 14, 2022
|
|
|
/s/ *
Adam Rothstein
|
| | Director | | |
February 14, 2022
|
|
|
/s/ *
James Gold
|
| | Director | | |
February 14, 2022
|
|
|
/s/ *
Sam Chawla
|
| | Director | | |
February 14, 2022
|
|
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