- Reported Revenues increased 41% for the quarter and 46% for the full year, compared with the prior year periods
- Reported Gross Profit more than doubled from a year ago
- Positioned to further expand best-in-class service for long-term growth
NEW YORK, NY / ACCESSWIRE / March 15, 2023 / Charge Enterprises, Inc. (NASDAQ:CRGE) ("Charge" or the "Company"), today reported fourth quarter and full year 2022 results. For the quarter, revenues were $168.0 million, compared with $119.3 million in the fourth quarter of 2021. For the full year, revenues were $697.8 million, compared with $477.0 million in the prior year period. Gross profit for the fourth quarter of 2022 increased to $8.5 million, compared with $3.9 million in the fourth quarter of 2021. For the full year, gross profit increased to $28.2 million, compared with $11.5 million in the prior year period.
"Charge's 2022 revenue of $697.8 million and gross profit of $28.2 million, allowed us to further expand our Electric Vehicle ("EV") charging infrastructure business and other key strategic initiatives," said Andrew Fox, Founder, Chairman and CEO. "We continue to execute on strategic initiatives with the goal of leveraging the talent of our business leaders to deliver operational excellence, seamless solutions for our clients, and consistent profitable growth for our stakeholders. Charge is positioned to capitalize on the next generation of the energy transition. Our initiatives within EV charging infrastructure and broadband continue to grow, and our white-glove, seamless solutions are designed to support and further enable the transition within these rapidly growing industry segments."
"Our EV charging infrastructure business, Charge Infrastructure ("CI"), which offers customized end-to-end services for EV charging ecosystems, is continually expanding its relationships with automotive dealerships, growing organically through current client referrals and working with multiple franchise operators across automotive OEM brands. We believe CI is well positioned to continue the Company's growth into 2023 and beyond and is currently servicing retail dealership locations across the nation representing more than 20 automotive OEM brands."
Mr. Fox concluded, "Everyone at Charge has a commitment to excellence, from our dedicated customer relationship teams, client service and retention, to the safety of our employees. We are dedicated to enhancing our strategic approach, focused on driving long-term value for both our clients and our shareholders. We expect 2023 to be a pivotal year as we execute our strategy to expand within the auto vertical, creating a business model with a seamless end-to-end solution to support the transition to EVs, and guiding clients to meet timing and infrastructure requirements while establishing a scalable plan for the future. At Charge, we make it simple to go electric. Our long term, scalable relationships are expected to support our growth strategy as we innovate infrastructure services and enable software solutions for our clients and their customers."
Selected Financial Information
|
As Reported Three months ended December 31, |
As Reported Years ended December 31, |
||||||||||||||||
|
|
|
Increase |
|
|
Increase | ||||||||||||
($ in thousands) |
2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | |||||||||||
Total Revenues |
$ | 167,957 | $ | 119,309 | $ | 48,648 | $ | 697,833 | $ | 477,018 | $ | 220,815 | |||||
Gross Profit |
8,467 | 3,886 | 4,581 | 28,213 | 11,515 | 16,698 | |||||||||||
Net Income / (Loss) |
(11,941) | (14,774) | 2,833 | (30,349) | (51,668) | 21,319 | |||||||||||
Adjusted EBITDA(1)
|
$ | (1,007) | $ | (2,962) | $ | 1,955 | $ | (6,136) | $ | (7,132) | $ | 996 | |||||
|
Proforma Three months ended December 31, |
Proforma Years ended December 31, |
||||||||||||||||
| Increase | Increase | ||||||||||||||||
($ in thousands) |
2022 | 2021 | (Decrease) | 2022 | 2021 | (Decrease) | |||||||||||
Total Revenues |
$ | 167,957 | $ | 128,062 | $ | 39,895 | $ | 698,065 | $ | 520,913 | $ | 177,152 | |||||
Gross Profit |
8,467 | 6,428 | 2,039 | 28,357 | 22,421 | 5,936 | |||||||||||
Net Income / (Loss) |
(11,941) | (13,921) | 1,980 | (30,275) | (47,016) | 16,741 | |||||||||||
Adjusted EBITDA(1)
|
$ | (1,007) | $ | (1,809) | $ | 802 | $ | (6,053) | $ | (4,007) | $ | (2,046) | |||||
- Adjusted EBITDA represents income (loss) before interest, income taxes, depreciation and amortization, and amortization of debt discount and debt issue costs adjusted for stock-based compensation, loss on impairment, (income) loss from investments, net, change in fair value of derivative liabilities, other (income) expense, net, and foreign exchange adjustments. Refer to Appendix for definition and complete non-GAAP reconciliation for Adjusted EBITDA.
Charge's CFO Leah Schweller commented, "Fourth quarter 2022 represented another solid performance for Charge and a strong end to the year, with our Advanced Network Services ("ANS") and BW Electrical Services ("BW") subsidiaries delivering their highest yearly revenues on record. These results are a validation of our business strategy and our teams' successes in capturing growth and optimizing our day-to-day operations. Moreover, our management team has shown the resilience to succeed in a dynamic environment. Our current Infrastructure segment backlog at $82 million remains strong. With the strength of our backlog and tailwinds supporting growth in the EV charging infrastructure space, we are well-positioned for the future. Additionally, during the quarter, we continued to prudently deploy our capital, always with an eye toward bolstering growth."
Reported financial results include operations from the date of acquisition: ANS acquired on May 21, 2021; BW acquired on December 27, 2021; and EV Group Holdings ("EV Depot") acquired on January 14, 2022. Due to the timing of certain acquisitions, current quarter results are not necessarily comparable to the prior periods.
Proforma financial results include: the full three- and twelve-months periods for all of the Company's operations, including 2021 and 2022 acquisitions, as if they happened on the first day of the respective period. Management believes that presenting proforma results is important to understanding the Company's financial performance and provides better analysis of trends in the Company's underlying businesses as it allows for comparability to prior period results.
Fourth Quarter 2022 Financial Results
Reported revenues for the fourth quarter of 2022 increased $48.6 million to $168.0 million, and proforma revenues increased $39.9 million to $168.0 million, compared with the fourth quarter of 2021. The increase in reported and proforma revenues was driven by higher revenues in both of the Company's business segments.
- Infrastructure: Reported revenues increased $23.0 million to $33.7 million, and proforma revenues increased $14.2 million to $33.7 million, compared with the fourth quarter of 2021. The increase in reported revenues was due to the Company's acquisitions of BW and EV Depot and organic growth in its ANS and CI businesses.
- Telecommunications: Reported and proforma revenues increased $25.7 million to $134.2 million, compared with the fourth quarter of 2021. The increase was driven by higher voice call volume.
Reported gross profit for the fourth quarter of 2022 increased $4.6 million to $8.5 million, and proforma gross profit increased $2.0 million to $8.5 million, compared with the fourth quarter of 2021. The increase in reported and proforma gross profit was primarily driven by higher revenues, partially offset by lower gross profit in the Company's Telecommunications segment due to customer mix. Reported gross margin percentage for the fourth quarter of 2022 increased, compared with the fourth quarter of 2021, due to an increase in revenue from its higher-margin Infrastructure segment, partially offset by a decline in gross margin in the Telecommunications segment. Proforma gross margin percentage was in line with the prior year fourth quarter.
Reported net loss for the fourth quarter of 2022 was $11.9 million, compared with a net loss of $ 14.8 million in the fourth quarter of 2021. Proforma net loss was $11.9 million, compared with a net loss of $13.9 million in the fourth quarter of 2021. On a reported basis, incremental expenses after gross margin were primarily related to continued investments the Company made during the quarter to support its growth strategy. The largest drivers over the fourth quarter of 2021 were:
- $7.1 million in stock-based compensation expense, which represented a decrease of $2.2 million, primarily due to lower stock option grants compared with 2021;
- $4.0 million in general and administrative expense, which represented a $1.3 million increase, due to costs related to growing the business;
- $4.8 million in salaries and related benefits, which represented a $1.2 million increase, driven by incremental headcount to support the growth of the Company;
- $4.6 million in amortization expense, which represented a $4.4 million increase, driven by the establishment of intangible assets associated with the acquisitions of ANS, BW and EV Depot; and
- $2.8 million in other (income) expense, net, which represented a $4.6 million increase in income. Included in the increase was a gain related to a derivative liability, partially offset by a write-off for donated equipment to an organization that addresses the needs on the ground immediately following natural disasters.
The reported net loss of $11.9 million in the fourth quarter of 2022, adjusted for non-cash and certain one-time items, resulted in an Adjusted EBITDA loss of $1.0 million, compared with Adjusted EBITDA loss of $3.0 million in the fourth quarter of 2021. The proforma net loss of $11.9 million in the fourth quarter of 2022, adjusted for non-cash and certain one-time items, resulted in an Adjusted EBITDA loss of $1.0 million, compared with Adjusted EBITDA loss of $1.8 million in the fourth quarter of 2021. See the Appendix for definition and a full reconciliation.
Full Year 2022 Financial Results
For the full year 2022, reported revenues increased $220.8 million to $697.8 million, and proforma revenues increased $177.2 million to $698.1 million, compared with the prior year period.
- Infrastructure: Reported revenues increased $81.3 million to $105.5 million, and proforma revenues increased $37.6 million to $105.8 million, compared with the prior year period.
- Telecommunications: Reported and proforma revenues increased $139.5 million to $592.3 million, compared with the prior year period.
Reported gross profit for the full year of 2022 increased $16.7 million to $28.2 million, and proforma gross profit increased $5.9 million to $28.4 million, compared with the prior year period.
Reported net loss for the full year of 2022 was $30.3 million, compared with a net loss of $51.7 million in the prior year period. Proforma net loss was $30.3 million, compared with a net loss of $47.0 million in the prior year period.
The reported net loss of $30.3 million for the full year of 2022, adjusted for non-cash and certain one-time items, resulted in an Adjusted EBITDA loss of $6.1 million, compared with an Adjusted EBITDA loss of $7.1 million in the prior year period. The proforma net loss of $30.3 million for the full year of 2022, adjusted for non-cash and certain one-time items, resulted in an Adjusted EBITDA loss of $6.1 million, compared with Adjusted EBITDA loss of $4.0 million in the prior year period. See the Appendix for definition and a full reconciliation.
As of December 31, 2022, Charge held $33.6 million in cash, cash equivalents and marketable securities.
For further details of the Company's financials, please see Charge Enterprises' Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 15, 2023 and available on Charge's website Charge | SEC Filings. Financial statements prior to December 31, 2021, were filed with the OTC Markets.
Webcast Data
Charge Enterprises, Inc. will host a webcast at 10:30 a.m. Eastern Time today to discuss the fourth quarter and full year 2022 financial results. The webcast can be accessed on the Company's website on the Investor Relations page at Charge Enterprises, Inc.
About Charge Enterprises, Inc.
Charge Enterprises, Inc. is an electrical, broadband and EV charging infrastructure company that provides clients with end-to-end project management services. We operate in two segments: Infrastructure, which has a primary focus on EV charging, broadband and wireless, and electrical contracting services; and Telecommunications, which provides connection of voice calls and data to global carriers. Our vision is to be a leader in enabling the next wave of transportation and connectivity. By building, designing, and operating seamless infrastructure for electric vehicles, we aim to create a future where transportation is clean, efficient, and connected and to empower individuals, communities, and businesses to thrive in a more sustainable world. Our plan is to cultivate repeat customers and recurring revenue by deploying a multi-phased strategy, initially where investment in the EV charging revolution is taking place, the nation's approximately 18,000 franchised auto dealers.
To learn more about Charge, visit Charge Enterprises, Inc.
Notice Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current expectations or beliefs regarding future events or Charge's future performance. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement. Although Charge believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include the business plans and strategies of Charge, Charge's future business development, market acceptance of electric vehicles, Charge's ability to generate profits and positive cash flow, changes in government regulations and government incentives, subsidies, or other favorable government policies, rising interest rates and the impact on investments by our customers, and other risks discussed in Charge's filings with the U.S. Securities and Exchange Commission ("SEC"). Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release or as of the date or dates specified in such statements. For more information on us, investors are encouraged to review our public filings with the SEC, including the factors described in the section captioned "Risk Factors" of Charge's Annual Report on Form 10-K to be filed with the SEC on March 15, 2023, as well as subsequent reports we file from time to time with the SEC which are available on the SEC's website at www.sec.gov. Charge disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Notice Regarding Non-GAAP Measures
The press release includes both financial measures in accordance with U.S. generally accepted accounting principles ("GAAP"), as well as non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. See the Appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
# # #
Contacts:
Investors
Christine Cannella (954) 298-6518
Ccannella@charge.enterprises
Carolyn Capaccio, CFA (212) 838-3777
Ccapaccio@lhai.com
APPENDIX
CHARGE ENTERPRISES, INC.
CONSOLIDATED RESULTS OF OPERATIONS
| As Reported | As Reported | |||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
|
|
|
Increase | % Increase |
|
|
Increase | % Increase | |||||||||||||||
(in thousands) |
2022 | 2021 | (Decrease) | (Decrease) | 2022 | 2021 | (Decrease) | (Decrease) | ||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||||||||
Infrastructure |
$ | 33,719 | $ | 10,737 | $ | 22,982 | 214% | $ | 105,523 | $ | 24,251 | $ | 81,272 | 335% | ||||||||
Telecommunications |
134,238 | 108,572 | 25,666 | 24% | 592,310 | 452,767 | 139,543 | 31% | ||||||||||||||
Total revenues |
167,957 | 119,309 | 48,648 | 41% | 697,833 | 477,018 | 220,815 | 46% | ||||||||||||||
Cost of goods sold |
159,490 | 115,423 | 44,067 | 38% | 669,620 | 465,503 | 204,117 | 44% | ||||||||||||||
Gross profit |
8,467 | 3,886 | 4,581 | 118% | 28,213 | 11,515 | 16,698 | 145% | ||||||||||||||
Stock-based compensation |
7,097 | 9,272 | (2,175) | (23%) | 35,449 | 30,623 | 4,826 | 16% | ||||||||||||||
General and administrative |
3,972 | 2,670 | 1,302 | 49% | 14,392 | 7,995 | 6,397 | 80% | ||||||||||||||
Salaries and related benefits |
4,792 | 3,596 | 1,196 | 33% | 16,667 | 8,806 | 7,861 | 89% | ||||||||||||||
Professional fees |
710 | 582 | 128 | 22% | 3,290 | 1,846 | 1,444 | 78% | ||||||||||||||
Depreciation and amortization expense |
4,632 | 215 | 4,417 | 2054% | 6,377 | 529 | 5,848 | 1105% | ||||||||||||||
Income (loss) from operations |
(12,736) | (12,449) | (287) | (2%) | (47,962) | (38,284) | (9,678) | (25%) | ||||||||||||||
Other (income) expenses |
(2,843) | 1,709 | (4,552) | (266%) | (17,888) | 18,676 | (36,564) | (196%) | ||||||||||||||
Income tax expense (benefit) |
2,048 | 616 | 1,432 | 232% | 275 | (5,292) | 5,567 | 105% | ||||||||||||||
Net income (loss) |
$ | (11,941) | $ | (14,774) | $ | 2,833 | 19% | $ | (30,349) | $ | (51,668) | $ | 21,319 | 41% | ||||||||
| Proforma | Proforma | ||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||
|
|
|
Increase | % Increase |
|
|
Increase | % Increase | ||||||||||||||
(in thousands) |
2022 | 2021 | (Decrease) | (Decrease) | 2022 | 2021 | (Decrease) | (Decrease) | |||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|||||||||||||
Infrastructure |
$ | 33,719 | $ | 19,490 | $ | 14,229 | 73% | $ | 105,755 | $ | 68,146 | $ | 37,609 | 55% | |||||||
Telecommunications |
134,238 | 108,572 | 25,666 | 24% | 592,310 | 452,767 | 139,543 | 31% | |||||||||||||
Total revenues |
167,957 | 128,062 | 39,895 | 31% | 698,065 | 520,913 | 177,152 | 34% | |||||||||||||
Cost of goods sold |
159,490 | 121,634 | 37,856 | 31% | 669,708 | 498,492 | 171,216 | 34% | |||||||||||||
Gross profit |
8,467 | 6,428 | 2,039 | 32% | 28,357 | 22,421 | 5,936 | 26% | |||||||||||||
Stock-based compensation |
7,097 | 9,272 | (2,175 | (23%) | 35,449 | 30,623 | 4,826 | 16% | |||||||||||||
General and administrative |
3,972 | 3,023 | 949 | 31% | 14,440 | 10,123 | 4,317 | 43% | |||||||||||||
Salaries and related benefits |
4,792 | 4,547 | 245 | 5% | 16,680 | 14,171 | 2,509 | 18% | |||||||||||||
Professional fees |
710 | 667 | 43 | 6% | 3,290 | 2,134 | 1,156 | 54% | |||||||||||||
Depreciation and amortization expense |
4,632 | 241 | 4,391 | 1822% | 6,377 | 790 | 5,587 | 707% | |||||||||||||
Income (loss) from operations |
(12,736) | (11,322) | (1,414) | (12%) | (47,879) | (35,420) | (12,459) | (35%) | |||||||||||||
Other (income) expenses |
(2,843) | 1,729 | (4,572) | (264%) | (17,879) | 16,504 | (34,383) | (208%) | |||||||||||||
Income tax expense (benefit) |
2,048 | 870 | 1,178 | 135% | 275 | (4,908) | 5,183 | 106% | |||||||||||||
Net income (loss) |
$ | (11,941) | $ | (13,921) | $ | 1,980 | 14% | $ | (30,275) | $ | (47,016) | $ | 16,741 | 36% | |||||||
CHARGE ENTERPRISES, INC.
SEGMENT RESULTS OF OPERATIONS
Infrastructure
| As Reported | As Reported | ||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||
|
|
|
Increase | % Increase |
|
|
Increase | % Increase | ||||||||||||||
(in thousands) |
2022 | 2021 | (Decrease) | (Decrease) | 2022 | 2021 | (Decrease) | (Decrease) | |||||||||||||
Revenues |
$ | 33,719 | $ | 10,737 | $ | 22,982 | 214% | $ | 105,523 | $ | 24,251 | $ | 81,272 | 335% | |||||||
Cost of goods sold |
26,057 | 8,168 | 17,889 | 219% | 81,583 | 18,347 | 63,236 | 345% | |||||||||||||
Gross profit |
7,662 | 2,569 | 5,093 | 198% | 23,940 | 5,904 | 18,036 | 305% | |||||||||||||
General and administrative |
1,705 | 1,087 | 618 | 57% | 5,349 | 2,681 | 2,668 | 100% | |||||||||||||
Salaries and related benefits |
2,722 | 844 | 1,878 | 223% | 8,872 | 2,268 | 6,604 | 291% | |||||||||||||
Professional fees |
104 | (13) | 117 | 900% | 315 | 38 | 277 | 729% | |||||||||||||
Depreciation and amortization expense |
4,590 | 166 | 4,424 | 2665% | 6,207 | 331 | 5,876 | 1775% | |||||||||||||
Income (loss) from operations |
(1,459) | 485 | (1,944) | (401%) | 3,197 | 586 | 2,611 | 446% | |||||||||||||
Other (income) expenses |
881 | 16 | 865 | 5406% | 1,787 | 18,119 | (16,332) | (90%) | |||||||||||||
Income tax expense (benefit) |
(3,823) | 194 | (4,017) | (2071%) | (3,837) | 127 | (3,964) | (3121%) | |||||||||||||
Net income (loss) |
$ | 1,483 | $ | 275 | $ | 1,208 | 439% | $ | 5,247 | $ | (17,660) | $ | 22,907 | 130% | |||||||
| Proforma | Proforma | ||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||
|
|
|
Increase | % Increase |
|
|
Increase | % Increase | ||||||||||||||
(in thousands) |
2022 | 2021 | (Decrease) | (Decrease) | 2022 | 2021 | (Decrease) | (Decrease) | |||||||||||||
Revenues |
$ | 33,719 | $ | 19,490 | $ | 14,229 | 73% | $ | 105,755 | $ | 68,146 | $ | 37,609 | 55% | |||||||
Cost of goods sold |
26,057 | 14,379 | 11,678 | 81% | 81,671 | 51,336 | 30,335 | 59% | |||||||||||||
Gross profit |
7,662 | 5,111 | 2,551 | 50% | 24,084 | 16,810 | 7,274 | 43% | |||||||||||||
General and administrative |
1,705 | 1,440 | 265 | 18% | 5,397 | 4,809 | 588 | 12% | |||||||||||||
Salaries and related benefits |
2,722 | 1,795 | 927 | 52% | 8,885 | 7,633 | 1,252 | 16% | |||||||||||||
Professional fees |
104 | 72 | 32 | 44% | 315 | 326 | (11) | (3%) | |||||||||||||
Depreciation and amortization expense |
4,590 | 192 | 4,398 | 2291% | 6,207 | 592 | 5,615 | 948% | |||||||||||||
Income (loss) from operations |
(1,459) | 1,612 | (3,071) | (191%) | 3,280 | 3,450 | (170) | (5%) | |||||||||||||
Other (income) expenses |
881 | 36 | 845 | 2347% | 1,796 | 15,947 | (14,151) | (89%) | |||||||||||||
Income tax expense (benefit) |
(3,823) | 448 | (4,271) | (953%) | (3,837) | 511 | (4,348) | (851%) | |||||||||||||
Net income (loss) |
$ | 1,483 | $ | 1,128 | $ | 355 | 31% | $ | 5,321 | $ | (13,008) | $ | 18,329 | 141% | |||||||
Telecommunications
| As Reported | As Reported | ||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||
|
|
|
Increase | % Increase |
|
|
Increase | % Increase | ||||||||||||||
(in thousands) |
2022 | 2021 | (Decrease) | (Decrease) | 2022 | 2021 | (Decrease) | (Decrease) | |||||||||||||
Revenues |
$ | 134,238 | $ | 108,572 | $ | 25,666 | 24% | $ | 592,310 | $ | 452,767 | $ | 139,543 | 31% | |||||||
Cost of goods sold |
133,433 | 107,255 | 26,178 | 24% | 588,037 | 447,156 | 140,881 | 32% | |||||||||||||
Gross profit |
805 | 1,317 | (512) | (39%) | 4,273 | 5,611 | (1,338) | (24%) | |||||||||||||
General and administrative |
513 | 563 | (50) | (9%) | 1,990 | 1,884 | 106 | 6% | |||||||||||||
Salaries and related benefits |
173 | 339 | (166) | (49%) | 803 | 1,811 | (1,008) | (56%) | |||||||||||||
Professional fees |
20 | 5 | 15 | 300% | 83 | 39 | 44 | 113% | |||||||||||||
Depreciation and amortization expense |
42 | 49 | (7) | (14%) | 170 | 198 | (28) | (14%) | |||||||||||||
Income (loss) from operations |
57 | 361 | (304) | (84%) | 1,227 | 1,679 | (452) | (27%) | |||||||||||||
Other (income) expenses |
(64) | 191 | (255) | (134%) | (132 | (694 | 562 | 81% | |||||||||||||
Income tax expense (benefit) |
(6) | 334 | (340) | (102%) | (3 | (903 | 900 | 100% | |||||||||||||
Net income (loss) |
$ | 127 | $ | (164) | $ | 291 | 177% | $ | 1,362 | $ | 3,276 | $ | (1,914) | (58%) | |||||||
Non-Operating Corporate
| As Reported | As Reported | |||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
|
|
|
Increase | % Increase |
|
|
Increase | % Increase | |||||||||||||||
(in thousands) |
2022 | 2021 | (Decrease) | (Decrease) | 2022 | 2021 | (Decrease) | (Decrease) | ||||||||||||||
Revenues |
$ | - | $ | - | $ | - |
|
$ | - | $ | - | $ | - |
|
||||||||
Cost of goods sold |
- | - | - |
|
- | - | - |
|
||||||||||||||
Gross profit |
- | - | - |
|
- | - | - |
|
||||||||||||||
Stock-based compensation |
7,097 | 9,272 | (2,175) | (23%) | 35,449 | 30,623 | 4,826 | 16% | ||||||||||||||
General and administrative |
1,754 | 1,020 | 734 | 72% | 7,053 | 3,430 | 3,623 | 106% | ||||||||||||||
Salaries and related benefits |
1,897 | 2,413 | (516) | (21%) | 6,992 | 4,727 | 2,265 | 48% | ||||||||||||||
Professional fees |
586 | 590 | (4) | (1%) | 2,892 | 1,769 | 1,123 | 63% | ||||||||||||||
Income (loss) from operations |
(11,334) | (13,295) | 1,961 | (0) | (52,386) | (40,549) | (11,837) | (29%) | ||||||||||||||
Other (income) expenses |
(3,660) | 1,502 | (5,162) | (344%) | (19,543) | 1,251 | (20,794) | (1,662%) | ||||||||||||||
Income tax expense (benefit) |
5,877 | 88 | 5,789 | 6578% | 4,115 | (4,516) | 8,631 | 191% | ||||||||||||||
Net income (loss) |
$ | (13,551) | $ | (14,885) | $ | 1,334 | 9% | $ | (36,958) | $ | (37,284) | $ | 326 | 1% | ||||||||
| CHARGE ENTERPRISES, INC. | |||||
| CONSOLIDATED BALANCE SHEETS | |||||
| (in thousands, except share data) | |||||
|
|
|||||
| December 31, | December 31, | ||||
| 2022 | 2021 | ||||
ASSETS |
|
|
|||
Current assets |
|
|
|||
Cash and cash equivalents |
$ | 26,837 | $ | 18,238 | |
Restricted cash |
886 | - | |||
Accounts receivable net of allowances of $322 in 2022 and $268 in 2021, respectively |
72,405 | 73,334 | |||
Inventory |
111 | 111 | |||
Deposits, prepaids and other current assets |
3,187 | 1,721 | |||
Investments in marketable securities |
6,757 | 9,619 | |||
Investments in non-marketable securities |
236 | 100 | |||
Cost in excess of billings |
6,090 | 4,812 | |||
Total current assets |
116,509 | 107,935 | |||
Property, plant and equipment, net |
732 | 2,012 | |||
Finance lease right-of-use asset |
341 | 470 | |||
Operating lease right-of-use asset |
4,028 | 1,558 | |||
Non-current assets |
240 | - | |||
Net deferred tax asset |
- | 5,580 | |||
Goodwill, net |
12,672 | 26,055 | |||
Intangible assets, net |
33,932 | - | |||
Total assets |
168,454 | 143,610 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current liabilities |
|||||
Accounts payable |
$ | 61,644 | $ | 71,428 | |
Accrued liabilities |
11,121 | 5,740 | |||
Deferred revenue |
13,741 | 7,018 | |||
Derivative liability |
6,521 | - | |||
Finance lease liability |
112 | 159 | |||
Operating lease liability |
1,579 | 125 | |||
Current portion of long-term debt |
29,180 | 4,598 | |||
Total current liabilities |
123,898 | 89,068 | |||
Non-current liabilities |
|||||
Finance lease liability, non-current |
146 | 219 | |||
Operating lease liability, non-current |
2,199 | 1,443 | |||
Net deferred tax liability |
1,389 | - | |||
Long-term debt, net of current portion |
- | 30,563 | |||
Total liabilities |
127,632 | 121,293 | |||
Mezzanine Equity |
|||||
Series B Preferred Stock (0 and 2,395,105 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively) |
- | 6,850 | |||
Series C Preferred Stock (6,226,370 shares issued and outstanding at December 31, 2022) |
16,572 | - | |||
Total Mezzanine Equity |
16,572 | 6,850 | |||
Commitments, contingencies and concentration risk |
|||||
Stockholders' Equity |
|||||
Preferred stock, $0.0001 par value, 20,000,000 shares authorized; |
|||||
Series C:2,370,370 shares issued and outstanding at December 31, 2021 |
- | - | |||
Series D: 1,177,023 shares issued and outstanding at December 31, 2022 |
- | - | |||
Common stock, $0.0001 par value; 750,000,000 shares authorized 206,844,580 and 184,266,934 issued and outstanding at December 31, 2022 and December 31, 2021, respectively |
20 | 18 | |||
Common stock to be issued, 0 shares at December 31, 2022 and 6,587,897 December 31, 2021 |
- | 1 | |||
Additional paid in capital |
197,816 | 126,870 | |||
Accumulated other comprehensive income (loss) |
- | (32) | |||
Accumulated deficit |
(173,586) | (111,390) | |||
Total stockholders' equity |
24,250 | 15,467 | |||
Total liabilities and stockholders' equity |
$ | 168,454 | $ | 143,610 | |
| CHARGE ENTERPRISES, INC. | |||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| (in thousands, except share and per share data) | |||||
|
|
|
||||
| Years Ended December 31, | |||||
| 2022 | 2021 | ||||
Revenues |
$ | 697,833 | $ | 477,018 | |
Cost of Goods Sold |
669,620 | 465,503 | |||
Gross Profit |
28,213 | 11,515 | |||
Operating expenses |
|||||
Stock-based compensation |
35,449 | 30,623 | |||
General and administrative |
14,392 | 7,995 | |||
Salaries and related benefits |
16,667 | 8,806 | |||
Professional fees |
3,290 | 1,846 | |||
Depreciation and amortization expense |
6,377 | 529 | |||
Total operating expenses |
76,175 | 49,799 | |||
(Loss) from operations |
(47,962) | (38,284) | |||
Other income (expenses): |
|||||
Loss on impairment |
(797) | (18,116) | |||
Income (loss) from investments, net |
(789) | 3,330 | |||
Change in fair value of derivative liabilities |
33,921 | - | |||
Interest expense |
(11,905) | (4,619) | |||
Other income (expense), net |
(2,482) | 1,063 | |||
Foreign exchange adjustments |
(60) | (334) | |||
Total other income (expenses), net |
17,888 | (18,676) | |||
Income (loss) before income taxes |
(30,074) | (56,960) | |||
Income tax benefit (expense) |
(275) | 5,292 | |||
Net (loss) |
$ | (30,349) | $ | (51,668) | |
Less: Deemed dividend |
(36,697) | (7,407) | |||
Less: Preferred dividends |
(1,349) | - | |||
Net (loss) available to common stockholders |
$ | (68,395) | $ | (59,075) | |
Basic income (loss) per share available to common stockholders |
$ | (0.35) | $ | (0.38) | |
Diluted income (loss) per share available to common stockholders |
$ | (0.35) | $ | (0.38) | |
Weighted average number of shares outstanding, basic |
197,712 | 156,365 | |||
Weighted average number of shares outstanding, diluted |
197,712 | 156,365 | |||
| CHARGE ENTERPRISES, INC. | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| (in thousands) | |||||
| Years Ended December 31, | |||||
| 2022 | 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|||
Net loss |
$ | (30,349) | $ | (51,668) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||
Amortization |
5,483 | - | |||
Depreciation |
894 | 529 | |||
Stock-based compensation |
35,449 | 30,623 | |||
Stock issued for services |
- | 354 | |||
Change in fair value of derivative liabilities |
(33,921) | - | |||
Amortization of debt discount |
9,346 | 3,056 | |||
Amortization of debt discount, related party |
- | 95 | |||
Amortization of debt issue costs |
- | 10 | |||
Loss on foreign currency exchange |
60 | 363 | |||
Loss on impairment |
797 | 18,116 | |||
Net loss (gain) from investments |
789 | (3,330) | |||
Other expense, net |
2,482 | (1,126) | |||
Change in deferred income taxes |
(690) | (5,292) | |||
Changes in working capital requirements: |
|||||
Accounts receivable |
773 | 4,345 | |||
Deposits, prepaids and other current assets |
(916) | 1,478 | |||
Other assets |
(47) | 183 | |||
Costs in excess of billings |
(1,278) | (2,222) | |||
Accounts payable |
(9,411) | (4,198) | |||
Other current liabilities |
2,445 | 1,123 | |||
Deferred revenue |
6,724 | 4,746 | |||
Other comprehensive income |
- | (93) | |||
Net cash (used in) operating activities |
(11,370) | (2,908) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
Acquisition of fixed assets |
(239) | (1,355) | |||
Disposal of fixed assets |
- | 910 | |||
Sale of intellectual property |
179 | - | |||
Purchase of marketable securities |
(55,983) | (67,440) | |||
Sale of marketable securities |
57,980 | 66,681 | |||
Purchase of non-marketable securities |
- | (100) | |||
Acquisition of ANS |
(363) | (12,948) | |||
Acquisition of EV Depot |
(1,231) | - | |||
Acquisition of BW |
(2,459) | (13,500) | |||
Cash acquired in acquisitions |
104 | 2,785 | |||
Net cash provided by (used in) investing activities |
(2,012) | (24,967) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
Cash receipts from issuance of notes payable |
- | 23,333 | |||
Cash receipts from issuance of convertible notes payable |
- | 5,000 | |||
Proceeds from sale of common stock |
10,000 | - | |||
Proceeds from sale of Series C preferred stock |
10,845 | 6,667 | |||
Proceeds from exercise of warrants |
1,122 | - | |||
Proceeds from exercise of stock options |
363 | - | |||
Draws from revolving line of credit, net |
3,126 | 113 | |||
Employee taxes paid for stock-based compensation |
(434) | - | |||
Cash paid for contingent liability |
- | (61) | |||
Payment on financing lease |
(167) | (133) | |||
Payment of dividends |
(1,177) | - | |||
Redemption of Series B preferred stock |
(685) | - | |||
Net cash provided by financing activities |
22,993 | 34,919 | |||
Foreign currency adjustment |
(126) | (435) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
9,485 | 6,609 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
18,238 | 11,629 | |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
$ | 27,723 | $ | 18,238 | |
Supplemental disclosure of cash flow information |
|||||
Cash paid for interest expense |
$ | 2,695 | $ | 965 | |
Cash paid for income taxes |
$ | 786 | $ | - | |
Non-cash investing and financing activities: |
|||||
Issuance of Series B Preferred Stock for acquisition |
$ | - | $ | 6,850 | |
Issuance of common stock for acquisition |
$ | 17,530 | $ | - | |
Debt discount associated with promissory notes |
$ | - | $ | 7,717 | |
Non-GAAP Measures
In this press release, the Company has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles ("GAAP") with the following financial measures that are not calculated in accordance with GAAP: EBITDA and Adjusted EBITDA. Management uses both GAAP and non-GAAP measures to assist in making business decisions and assessing overall performance. The Company's measurement of these non-GAAP financial measures may be different from similarly titled financial measures used by others and therefore may not be comparable. These non-GAAP financial measures should not be considered superior to the GAAP measures in the tables included within this material.
Certain information presented in this press release reflects adjustments to GAAP measures such as EBITDA and Adjusted EBITDA as an additional way of assessing certain aspects of the Company's operations that, when viewed with the GAAP financial measures, provide a more complete understanding of its on-going business. EBITDA is defined as income (loss) before interest, income taxes, depreciation and amortization, and amortization of debt discount and debt issue costs. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation, income (loss) from investments, net, other (income) expense, net, and foreign exchange adjustments.
CHARGE ENTERPRISES, INC.
NON-GAAP RECONCILIATION
|
As Reported Three months ended December 31, |
As Reported Years ended December 31, |
||||||||||
($ in thousands) |
2022 | 2021 | 2022 | 2021 | |||||||
Adjusted EBITDA: |
|
|
|
|
|||||||
Net income (loss) |
$ | (11,941) | $ | (14,774) | $ | (30,349) | $ | (51,668) | |||
Income tax expense (benefit) |
2,048 | 616 | 275 | (5,292) | |||||||
Interest expense |
1,965 | 1,431 | 11,905 | 4,619 | |||||||
Depreciation & Amortization |
4,632 | 215 | 6,377 | 529 | |||||||
EBITDA |
(3,296) | (12,512) | (11,792) | (51,812) | |||||||
Adjustments: |
|||||||||||
Stock based compensation |
7,097 | 9,272 | 35,449 | 30,623 | |||||||
Loss on impairment |
797 | (4) | 797 | 18,116 | |||||||
(Income) loss from investments, net |
(351) | 90 | 789 | (3,330) | |||||||
Change in fair value of derivative liabilities |
(5,252) | - | (33,921) | - | |||||||
Other (income) expense, net |
49 | 119 | 2,482 | (1,063) | |||||||
Foreign exchange adjustments |
(51) | 73 | 60 | 334 | |||||||
Adjusted EBITDA |
$ | (1,007) | $ | (2,962) | $ | (6,136) | $ | (7,132) | |||
|
Proforma Three months ended December 31, |
Proforma Years ended December 31, |
||||||||||
($ in thousands) |
2022 | 2021 | 2022 | 2021 | |||||||
Adjusted EBITDA: |
|
|
|
|
|||||||
Net income (loss) |
$ | (11,941) | $ | (13,921) | $ | (30,275) | $ | (47,016) | |||
Income tax expense (benefit) |
2,048 | 870 | 275 | (4,908) | |||||||
Interest expense |
1,965 | 1,452 | 11,914 | 4,662 | |||||||
Depreciation & Amortization |
4,632 | 241 | 6,377 | 790 | |||||||
EBITDA |
(3,296) | (11,358) | (11,709) | (46,472) | |||||||
Adjustments: |
|||||||||||
Stock based compensation |
7,097 | 9,272 | 35,449 | 30,623 | |||||||
Loss on impairment |
797 | (4) | 797 | 18,116 | |||||||
(Income) loss from investments, net |
(351) | 90 | 789 | (3,330) | |||||||
Change in fair value of derivative liabilities |
(5,252) | - | (33,921) | - | |||||||
Other (income) expense, net |
49 | 118 | 2,482 | (3,278) | |||||||
Foreign exchange adjustments |
(51) | 73 | 60 | 334 | |||||||
Adjusted EBITDA |
$ | (1,007) | $ | (1,809) | $ | (6,053) | $ | (4,007) | |||
SOURCE: Charge Enterprises Inc.
View source version on accesswire.com:
https://www.accesswire.com/743768/Charge-Enterprises-Reports-Fourth-Quarter-and-Full-Year-2022-Financial-Results
