Segments and Related Information

3 Months Ended

Apr. 02, 2022

Segments and Related Information

Segments and Related Information

Note 14.Segments and Related Information

The Company manages its operation under two operating segments, which represent its two reportable segments: (1) Telecom and (2) Renewables and Recovery Logistics.

The Telecom segment performs site acquisition, engineering, project management, installation, testing, last mile installation, and maintenance solutions of communication infrastructure for telecommunication and cable providers, businesses, public venues, government facilities, and residential subscribers. The Renewables and Recovery Logistics segment derives its revenue from providing new fiber optic construction services, maintenance and repair services as well as businesses with continuity and disaster relief services to renewable energy, commercial, telecommunication and utility companies. The segment also provides business-as-usual services such as generator storage and repair and cell maintenance services.

The accounting policies of the reportable segments are the same as those described in Note 1 - Nature of Business and Summary of Significant Accounting Policies. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenue and costs between entities within a reportable segment are eliminated to arrive at segment totals. Corporate results include amounts

related to corporate functions such as administrative costs, professional fees, acquisition-related transaction costs and other discrete items.

We present adjusted EBITDA as the key metric used by our management to assess the operating and financial performance of our operations in order to make decisions on allocation of resources. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.

Summarized financial information for the Company’s reportable segments is presented and reconciled to the Company’s condensed consolidated financial information in the following tables, all of which are presented in thousands. Note the information below excludes amounts from discontinued operations.

	For The Three Months Ended
Revenue:	April 2, 2022		April 3, 2021
Telecom	$	132,664	$	106,480
Renewables and Recovery Logistics		15,497		12,633
Total consolidated revenue	$	148,161	$	119,113

	April 2,		December 31,
Total Assets:	2022		2021
Telecom	$	588,755	$	570,750
Renewables and Recovery Logistics		81,288		90,638
Corporate		2,541		10,371
Total consolidated assets	$	672,584	$	671,759

	For The Three Months Ended
Capital Expenditures:	April 2, 2022		April 3, 2021
Telecom	$	5,533	$	369
Renewables and Recovery Logistics		366		86
Corporate		166		515
Total consolidated capital expenditures	$	6,065	$	970

	For The Three Months Ended
Amortization and Depreciation:	April 2, 2022		April 3, 2021
Amortization and depreciation
Telecom	$	11,661	$	9,820
Renewables and Recovery Logistics		2,895		2,567
Corporate		210		235
Total consolidated amortization and depreciation	$	14,766	$	12,622

	For The Three Months Ended
Adjusted EBITDA Reconciliation:	April 2, 2022		April 3, 2021
Telecom adjusted EBITDA	$	4,812	$	4,814
Renewables and Recovery Logistics adjusted EBITDA		5,309		2,878
Corporate adjusted EBITDA		(6,094)		(3,929)
Total adjusted EBITDA	$	4,027	$	3,763
Less:
Management fees		126		497
Transaction expenses		9,268		549
Share based compensation		6,711		—
Depreciation and amortization		14,766		12,622
Interest expense		12,343		9,955
Integration, public company readiness and close out costs		1,360		—
Net loss from continuing operations	$	(40,547)	$	(19,860)

Revenue by Service Offerings

Revenue for each of the Company’s end-market services offerings is presented below:

	For The Three Months Ended
	April 2, 2022		April 3, 2021
Telecom Wireless	$	94,366	$	83,973
Telecom Wireline		31,431		22,507
Telecom Power		6,867		—
Renewables		2,267		2,280
Recovery Logistics		13,230		10,353
Total	$	148,161	$	119,113

Significant Customers

Revenue concentration information for significant customers as a percentage of total consolidated revenue was as follows (in thousands):

	For The Three Months Ended
	April 2, 2022				April 3, 2021
Customers:	Amount		% of Total		Amount		% of Total
AT&T	$	55,983	38	%	$	60,783	51	%
T-Mobile		19,183	13	%		17,321	15	%
Verizon		22,851	15	%		17,850	15	%
Total	$	98,017	66	%	$	95,954	81	%