| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 4 | | | |
| | | | | 17 | | | |
| | | | | 32 | | | |
| | | | | 63 | | | |
| | | | | 65 | | | |
| | | | | 70 | | | |
| | | | | 80 | | | |
| | | | | 82 | | | |
| | | | | 114 | | | |
| | | | | 117 | | | |
| | | | | 123 | | | |
| | | | | 124 | | | |
| | | | | 128 | | | |
| | | | | 133 | | | |
| | | | | 137 | | | |
| | | | | 138 | | | |
| | | | | 140 | | | |
| | | | | 149 | | | |
| | | | | 150 | | | |
| | | | | 153 | | | |
| | | | | 165 | | | |
| | | | | 167 | | | |
| | | | | 172 | | | |
| | | | | 174 | | | |
| | | | | 189 | | | |
| | | | | 193 | | | |
| | | | | 198 | | | |
| | | | | 202 | | | |
| | | | | 203 | | | |
| | | | | 206 | | | |
| | | | | 210 | | | |
| | | | | 211 | | | |
| | | | | 212 | | | |
| | | | | 213 | | | |
| | | | | F-1 | | |
| | |
Assuming No
Redemptions (Shares) |
| |
%
|
| |
Assuming
Maximum Redemptions (Shares) |
| |
%
|
| ||||||||||||
QualTek Shareholders
|
| | | | | | | | | | | | | | | | | | | | | ||||
Total QualTek Merger Shares
|
| | | | | | | | | | | | | | | | | | | | | | | | |
ROCR Public Shares
|
| | | | | | | | | | | | | | | | | | | | | | | | |
ROCR Founder and Private Shares
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Total ROCR Shares General and administrative
|
| | | | | | | | | | | | | | | | | | | | | | | | |
PIPE Investors
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Pro Forma Class A Common Stock at April 3, 2021
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
As of April 3, 2021
|
| |
As of March 31,
2021 |
| | | | | | | | | | |
As of April 3,
2021 |
| | | | | | | | | | |
As of April 3,
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) |
| ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Cash
|
| | | $ | 183 | | | | | | | | $ | (5,070) | | | |
A
|
| | | $ | (4,887) | | | | | $ | 984 | | | | | $ | 115,002 | | | |
C
|
| | | $ | 158,406 | | | | | | (111,170) | | | |
J
|
| | | $ | 47,236 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,100 | | | |
D
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (16) | | | |
E
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (18,777) | | | |
F
|
| | | | | | | | | | | | | | | | | | | | | |
Restricted Cash
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | 42,180 | | | |
D
|
| | | | 42,180 | | | | | | — | | | | | | | | | 42,180 | | |
Accounts receivable, net of allowance
|
| | | | 160,378 | | | | | | | | | — | | | | | | | | | 160,378 | | | | | | — | | | | | | — | | | | | | | | | 160,378 | | | | | | — | | | | | | | | | 160,378 | | |
Inventories, net
|
| | | | 5,988 | | | | | | | | | — | | | | | | | | | 5,988 | | | | | | — | | | | | | — | | | | | | | | | 5,988 | | | | | | — | | | | | | | | | 5,988 | | |
Prepaid expenses
|
| | | | 5,555 | | | | | | | | | — | | | | | | | | | 5,555 | | | | | | 301 | | | | | | — | | | | | | | | | 5,856 | | | | | | — | | | | | | | | | 5,856 | | |
Other current assets
|
| | | | 1,383 | | | | | | | | | — | | | | | | | | | 1,383 | | | | | | — | | | | | | — | | | | | | | | | 1,383 | | | | | | — | | | | | | | | | 1,383 | | |
Total current assets
|
| | | | 173,487 | | | | | | | | | (5,070) | | | | | | | | | 168,417 | | | | | | 1,285 | | | | | | 204,489 | | | | | | | | | 374,191 | | | | | | (111,170) | | | | | | | | | 263,021 | | |
Property and equipment, net
|
| | | | 44,732 | | | | | | | | | — | | | | | | | | | 44,732 | | | | | | — | | | | | | — | | | | | | | | | 44,732 | | | | | | — | | | | | | | | | 44,732 | | |
Intangible assets, net
|
| | | | 359,694 | | | | | | | | | — | | | | | | | | | 359,694 | | | | | | — | | | | | | — | | | | | | | | | 359,694 | | | | | | — | | | | | | | | | 359,694 | | |
Goodwill
|
| | | | 66,604 | | | | | | | | | — | | | | | | | | | 66,604 | | | | | | — | | | | | | — | | | | | | | | | 66,604 | | | | | | — | | | | | | | | | 66,604 | | |
Other long-term assets
|
| | | | 1,890 | | | | | | | | | — | | | | | | | | | 1,890 | | | | | | — | | | | | | — | | | | | | | | | 1,890 | | | | | | — | | | | | | | | | 1,890 | | |
Marketable securities held in Trust Account
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 115,002 | | | | | | (115,002) | | | |
C
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Deferred tax asset (liability)
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | |
K, L
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Total assets
|
| | | $ | 646,407 | | | | | | | | $ | (5,070) | | | | | | | | $ | 641,337 | | | | | $ | 116,287 | | | | | $ | 89,487 | | | | | | | | $ | 847,111 | | | | | $ | (111,170) | | | | | | | | $ | 735,941 | | |
Liabilities and Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt and capital
lease obligations |
| | | $ | 40,369 | | | | | | | | $ | (1,016) | | | |
A
|
| | | $ | 39,353 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 39,353 | | | | | $ | — | | | | | | | | $ | 39,353 | | |
Current portion of contingent consideration
|
| | | | 4,367 | | | | | | | | | — | | | | | | | | | 4,367 | | | | | | — | | | | | | — | | | | | | | | | 4,367 | | | | | | — | | | | | | | | | 4,367 | | |
Accounts payable
|
| | | | 52,027 | | | | | | | | | — | | | | | | | | | 52,027 | | | | | | — | | | | | | — | | | | | | | | | 52,027 | | | | | | — | | | | | | | | | 52,027 | | |
Accrued expenses
|
| | | | 55,932 | | | | | | | | | — | | | | | | | | | 55,932 | | | | | | — | | | | | | — | | | | | | | | | 55,932 | | | | | | — | | | | | | | | | 55,932 | | |
Accounts payable and accrued expenses
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 18 | | | | | | — | | | | | | | | | 18 | | | | | | — | | | | | | | | | 18 | | |
Accrued offering costs
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 16 | | | | | | (16) | | | |
E
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Convertible promissory note
|
| | | | — | | | | | | | | | — | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | — | | | | | | — | | | | | | | | | — | | | ||
Contract liabilities
|
| | | | 11,140 | | | | | | | | | — | | | | | | | | | 11,140 | | | | | | — | | | | | | — | | | | | | | | | 11,140 | | | | | | — | | | | | | | | | 11,140 | | |
Total current liabilities
|
| | | | 163,835 | | | | | | | | | (1,016) | | | | | | | | | 162,819 | | | | | | 34 | | | | | | (16) | | | | | | | | | 162,837 | | | | | | — | | | | | | | | | 162,837 | | |
Capital lease obligations, net of current portion
|
| | | | 19,563 | | | | | | | | | — | | | | | | | | | 19,563 | | | | | | — | | | | | | — | | | | | | | | | 19,563 | | | | | | — | | | | | | | | | 19,563 | | |
Long-term debt, net of current portion and deferred financing fees
|
| | | | 408,541 | | | | | | | | | — | | | | | | | | | 408,541 | | | | | | | | | | | | — | | | | | | | | | 408,541 | | | | | | — | | | | | | | | | 408,541 | | |
Contingent consideration, net of current
portion |
| | | | 12,189 | | | | | | | | | — | | | | | | | | | 12,189 | | | | | | | | | | | | — | | | | | | | | | 12,189 | | | | | | — | | | | | | | | | 12,189 | | |
Distributions payable
|
| | | | 11,409 | | | | | | | | | — | | | | | | | | | 11,409 | | | | | | — | | | | | | — | | | | | | | | | 11,409 | | | | | | — | | | | | | | | | 11,409 | | |
Warrant liability
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 83 | | | | | | — | | | | | | | | | 83 | | | | | | — | | | | | | | | | 83 | | |
Payable to related parties pursuant to tax receivable agreement
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | |
L
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Total liabilities
|
| | | | 615,537 | | | | | | | | | (1,016) | | | | | | | | | 614,521 | | | | | | 117 | | | | | | (16) | | | | | | | | | 614,622 | | | | | | — | | | | | | | | | 614,622 | | |
Commitments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Temporary Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 111,170 | | | | | | (111,170) | | | |
G
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Preferred units
|
| | | | 25,000 | | | | | | | | | (25,000) | | | |
B
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Class A units
|
| | | | 230,637 | | | | | | | | | (4,054) | | | |
A
|
| | | | 257,141 | | | | | | — | | | | | | (299,319) | | | |
H
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | | | | 30,558 | | | |
B
|
| | | | — | | | | | | — | | | | | | 42,178 | | | |
D
|
| | | | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income
|
| | | | 568 | | | | | | | | | — | | | | | | | | | 568 | | | | | | — | | | | | | — | | | | | | | | | 568 | | | | | | — | | | | | | | | | 568 | | |
Class A Common stock
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | 1 | | | |
D
|
| | | | 12 | | | | | | (11) | | | |
J
|
| | | | 1 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11 | | | |
G
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | |
H
|
| | | | | | | | | | | | | | | | | | | | | |
Additional paid-in-capital
|
| | | | — | | | | | | | | | — | | | | | | | | | — | | | | | | 5,031 | | | | | | 66,099 | | | |
D
|
| | | | 472,043 | | | | | | (111,159) | | | |
J
|
| | | | 360,884 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (9,534) | | | |
F
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 111,159 | | | |
G
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 299,319 | | | |
H
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (31) | | | |
I
|
| | | | | | | | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (225,335) | | | | | | | | | (5,558) | | | |
B
|
| | | | (230,893) | | | | | | (31) | | | | | | (9,243) | | | |
F
|
| | | | (240,134) | | | | | | — | | | | | | | | | (240,134) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | |
K
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2 | | | |
D
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31 | | | |
I
|
| | | | | | | | | | | | | | | | | | | | | |
Non-controlling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
M
|
| | | | | | | | | | | | | | | | | | | | | |
Total equity
|
| | | | 30,870 | | | | | | | | | (4,054) | | | | | | | | | 26,816 | | | | | | 116,170 | | | | | | 89,503 | | | | | | | | | 232,489 | | | | | | (111,170) | | | | | | | | | 121,319 | | |
Total liabilities and equity
|
| | | $ | 646,407 | | | | | | | | $ | (5,070) | | | | | | | | $ | 641,337 | | | | | $ | 116,287 | | | | | $ | 89,487 | | | | | | | | $ | 847,111 | | | | | $ | (111,170) | | | | | | | | $ | 735,941 | | |
| | |
For the Three Months Ended April 3,
2021 |
| |
For the Three
Months Ended March 31, 2021 |
| | | | | | | | | | |
For the Three
Months Ended April 3, 2021 |
| | | | | | | | | | | | | |
For the Three
Months Ended April 3, 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
|
| | | $ | 122,178 | | | | | $ | — | | | | | | | | $ | 122,178 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 122,178 | | | | | $ | — | | | | | | | | | | | $ | 122,178 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 107,359 | | | | | | — | | | | | | | | | 107,359 | | | | | | — | | | | | | — | | | | | | | | | 107,359 | | | | | | — | | | | | | | | | | | | 107,359 | | |
General and administrative
|
| | | | 12,606 | | | | | | — | | | | | | | | | 12,606 | | | | | | — | | | | | | 40 | | | |
EE
|
| | | | 18,204 | | | | | | — | | | | | | | | | | | | 18,204 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,558 | | | |
FF
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Transaction expenses
|
| | | | 549 | | | | | | — | | | | | | | | | 549 | | | | | | — | | | | | | — | | | |
BB
|
| | | | 549 | | | | | | — | | | | | | | | | | | | 549 | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Impairment of long-lived
assets |
| | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Impairment of goodwill
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Depreciation and amortization
|
| | | | 13,115 | | | | | | — | | | | | | | | | 13,115 | | | | | | — | | | | | | — | | | | | | | | | 13,115 | | | | | | — | | | | | | | | | | | | 13,115 | | |
Operating and formation costs
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | 40 | | | | | | (40) | | | |
EE
|
| | | | — | | | | | | — | | | | | | | | | | |
|
—
|
| |
Total costs and expenses
|
| | | | 133,629 | | | | | | — | | | | | | | | | 133,629 | | | | | | 40 | | | | | | 5,558 | | | | | | | | | 139,227 | | | | | | — | | | | | | | | | | | | 139,227 | | |
Loss from operations
|
| | | | (11,451) | | | | | | — | | | | | | | | | (11,451) | | | | | | (40) | | | | | | (5,558) | | | | | | | | | (17,049) | | | | | | — | | | | | | | | | | | | (17,049) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale/disposal of property and equipment
|
| | | | 190 | | | | | | — | | | | | | | | | 190 | | | | | | — | | | | | | — | | | | | | | | | 190 | | | | | | — | | | | | | | | | | | | 190 | | |
Interest expense
|
| | | | (9,988) | | | | | | 70 | | | |
AA
|
| | | | (9,918) | | | | | | — | | | | | | — | | | | | | | | | (9,918) | | | | | | — | | | | | | | | | | | | (9,918) | | |
Change in fair value of
warrants |
| | | | — | | | | | | — | | | | | | | | | — | | | | | | 9 | | | | | | — | | | | | | | | | 9 | | | | | | — | | | | | | | | | | | | 9 | | |
Interest earned on marketable securities held in Trust Account
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | 2 | | | | | | (2) | | | |
CC
|
| | | | — | | | | | | (2) | | | | | | | | | | | | (2) | | |
Total other income (expense)
|
| | | | (9,798) | | | | | | 70 | | | | | | | | | (9,728) | | | | | | 11 | | | | | | (2) | | | | | | | | | (9,719) | | | | | | (2) | | | | | | | | | | | | (9,721) | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | — | | | |
DD
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | (21,249) | | | | | | 70 | | | | | | | | | (21,179) | | | | | | (29) | | | | | | (5,560) | | | | | | | | | (26,768) | | | | | | (2) | | | | | | | | | | | | (26,770) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | 172 | | | | | | — | | | | | | | | | 172 | | | | | | — | | | | | | — | | | | | | | | | 172 | | | | | | — | | | | | | | | | | | | 172 | | |
Comprehensive loss
|
| | | $ | (21,077) | | | | | $ | 70 | | | | | | | | $ | (21,007) | | | | | $ | (29) | | | | | $ | (5,560) | | | | | | | | $ | (26,596) | | | | | $ | (2) | | | | | | | | | | | $ | (26,598) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | |
GG
|
| | | | — | | | | | | — | | | | | | GG | | | | | | — | | |
Net income (loss) attributable to
controlling interest |
| | | $ | (21,077) | | | | | | | | | | | | | | $ | (21,007) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (26,598) | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings Per unit: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted earnings per unit
|
| | | $ | (10.38) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average common units outstanding
|
| | | | 2,133,179 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, common stock subject to redemption
|
| | | | — | | | | | | | | | | | | | | | | | | | | | 3,212,386 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income per
share, common stock subject to redemption |
| | | | — | | | | | | | | | | | | | | | | | | | | | 2,836,036 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | — | | | | | | | | | | | | | | | | | | | | | (0.01) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
For the Year Ended December 31, 2020
|
| | | | | | | | | | | | | |
For the
Year Ended December 31, 2020 |
| | | | | | | |
For the
Year Ended December 31, 2020 |
| |||||||||||||||||||||||||||||||||
| | |
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
|
| | | $ | 674,005 | | | | | $ | — | | | | | | | | | | | $ | 674,005 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 674,005 | | | | | $ | — | | | | | $ | 674,005 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Cost of revenues
|
| | | | 615,914 | | | | | | — | | | | | | | | | | | | 615,914 | | | | | | — | | | | | | — | | | | | | | | | | | | 615,914 | | | | | | — | | | | | | 615,914 | | |
General and administrative
|
| | | | 47,853 | | | | | | — | | | | | | | | | | | | 47,853 | | | | | | — | | | | | | 1 | | | | |
|
EE
|
| | | | | 47,854 | | | | | | — | | | | | | 47,854 | | |
Transaction expenses
|
| | | | 988 | | | | | | — | | | | | | | | | | | | 988 | | | | | | — | | | | | | 9,243 | | | | |
|
BB
|
| | | | | 10,231 | | | | | | — | | | | | | 10,231 | | |
Change in fair value of contingent consideration
|
| | | | (7,081) | | | | | | — | | | | | | | | | | | | (7,081) | | | | | | — | | | | | | — | | | | | | | | | | | | (7,081) | | | | | | — | | | | | | (7,081) | | |
Impairment of long-lived
assets |
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of goodwill
|
| | | | 28,802 | | | | | | — | | | | | | | | | | | | 28,802 | | | | | | — | | | | | | — | | | | | | | | | | | | 28,802 | | | | | | — | | | | | | 28,802 | | |
Depreciation and amortization
|
| | | | 48,497 | | | | | | — | | | | | | | | | | | | 48,497 | | | | | | — | | | | | | — | | | | | | | | | | | | 48,497 | | | | | | — | | | | | | 48,497 | | |
Operating and formation costs
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
EE
|
| | | | | — | | | | | | — | | | | | | — | | |
Total costs and expenses
|
| | | | 734,973 | | | | | | — | | | | | | | | | | | | 734,973 | | | | | | 1 | | | | | | 9,243 | | | | | | | | | | | | 744,217 | | | | | | — | | | | | | 744,217 | | |
Loss from operations
|
| | | | (60,968) | | | | | | — | | | | | | | | | | | | (60,968) | | | | | | (1) | | | | | | (9,243) | | | | | | | | | | | | (70,212) | | | | | | — | | | | | | (70,212) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Gain on sale/disposal of property and equipment
|
| | | | 729 | | | | | | — | | | | | | | | | | | | 729 | | | | | | — | | | | | | — | | | | | | | | | | | | 729 | | | | | | — | | | | | | 729 | | |
Interest expense
|
| | | | (37,848) | | | | | | — | | | | | | | | | | | | (37,848) | | | | | | — | | | | | | — | | | | | | | | | | | | (37,848) | | | | | | — | | | | | | (37,848) | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | (4,054) | | | | |
|
A
|
| | | | | (4,054) | | | | | | — | | | | | | — | | | | | | | | | | | | (4.054) | | | | | | — | | | | | | (4,054) | | |
Change in fair value of
warrants |
| | | | | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | |
Interest earned on marketable securities held in Trust
Account |
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | |
Total other income (expense)
|
| | | | (37,119) | | | | | | (4,054) | | | | | | | | | | | | (41,173) | | | | | | — | | | | | | — | | | | | | | | | | | | (41,173) | | | | | | — | | | | | | (41,173) | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | |
|
DD
|
| | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | | (98,087) | | | | | | (4,054) | | | | | | | | | | | | (102,141) | | | | | | (1) | | | | | | (9,243) | | | | | | | | | | | | (111,385) | | | | | | — | | | | | | (111,385) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | 239 | | | | | | — | | | | | | | | | | | | 239 | | | | | | — | | | | | | — | | | | | | | | | | | | 239 | | | | | | — | | | | | | 239 | | |
Comprehensive loss
|
| | | $ | (97,848) | | | | | $ | (4,054) | | | | | | | | | | | $ | (101,902) | | | | | $ | (1) | | | | | $ | (9,243) | | | | | | | | | | | $ | (111,146) | | | | | $ | — | | | | | $ | (111,146) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | GG | | | | | | — | | | | | | GG | | | | | | — | | |
Net income (loss) attributable to controlling
interest |
| | | $ | (97,848) | | | | | $ | (4,054) | | | | | | | | | | | $ | (101,902) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (111,146) | | |
Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Basic and diluted earning per unit
|
| | | | (50.54) | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average common units outsanding
|
| | | | 2,005,824 | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding basic and diluted
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 2,500,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per common share
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
For the three months ended
April 3, 2021 |
| |
For the year ended
December 31, 2020 |
| ||||||||||||||||||
(in thousands, except per share data)
|
| |
Assuming
No Redemption |
| |
Assuming
Maximum Redemption |
| |
Assuming
No Redemption |
| |
Assuming
Maximum Redemption |
| ||||||||||||
Pro forma net loss
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Weighted average shares outstanding of common stock
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share (Basic and Diluted attributable to common stockholder)
|
| | | $ | | | | | $ | | | | | $ | | | | |
$
|
|
| |
| | | | | | | | | | | | | | |
Combined Pro Forma
|
| |
QualTek Equivalent
Per Share Pro Forma(3) |
| ||||||||||||||||||
(in thousands except unit and
per share data) |
| |
QualTek
(Historical) |
| |
ROCR
(Historical) |
| |
Pro Forma
Combined (Assuming No Redemption) |
| |
Pro Forma
Combined (Assuming Maximum Redemption) |
| |
Pro Forma
Combined (Assuming No Redemption) |
| |
Pro-Forma
Combined (Assuming Maximum Redemption) |
| ||||||||||||||||||
As of and for the three months ended April 3, 2021
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share(1)
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||||
Weighted average share outstanding of common stock – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share of common stock – basic and diluted
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||||
As of and for the year ended December 31, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share(1)
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||||
Weighted average share outstanding of common stock – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share of common stock – basic and diluted
|
| | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | |
(in millions, except percentages and leverage)
|
| |
FY2019A
|
| |
FY2020A(1)
|
| |
FY2021E
|
| |
FY2022E
|
| |
FY2023E
|
| |||||||||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecommunications
|
| | | $ | 590 | | | | | $ | 605 | | | | | $ | 650 | | | | | $ | 791 | | | | | $ | 932 | | |
% Growth
|
| | | | | | | | | | 3% | | | | | | 7% | | | | | | 22% | | | | | | 18% | | |
% Total revenues
|
| | | | 95% | | | | | | 90% | | | | | | 80% | | | | | | 81% | | | | | | 82% | | |
Renewables & Recovery Logistics
|
| | | $ | 31 | | | | | $ | 69 | | | | | $ | 167 | | | | | $ | 184 | | | | | $ | 202 | | |
% Growth
|
| | | | | | | | | | 123% | | | | | | 143% | | | | | | 10% | | | | | | 10% | | |
% Total revenues
|
| | | | 5% | | | | | | 10% | | | | | | 20% | | | | | | 19% | | | | | | 18% | | |
Total revenues
|
| | | $ | 621 | | | | | $ | 674 | | | | | $ | 818 | | | | | $ | 975 | | | | | $ | 1,135 | | |
% Growth
|
| | | | | | | | | | 9% | | | | | | 21% | | | | | | 19% | | | | | | 16% | | |
EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecommunications
|
| | | $ | 38 | | | | | $ | 48 | | | | | $ | 67 | | | | | $ | 81 | | | | | $ | 97 | | |
% Growth
|
| | | | | | | | | | 28% | | | | | | 39% | | | | | | 21% | | | | | | 19% | | |
% Margin
|
| | | | 6% | | | | | | 8% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | |
Renewables & Recovery Logistics
|
| | | $ | 11 | | | | | $ | 29 | | | | | $ | 59 | | | | | $ | 65 | | | | | $ | 71 | | |
% Growth
|
| | | | | | | | | | 153% | | | | | | 104% | | | | | | 10% | | | | | | 10% | | |
% Margin
|
| | | | 37% | | | | | | 42% | | | | | | 35% | | | | | | 35% | | | | | | 35% | | |
Corporate SG&A
|
| | | | (16) | | | | | | (16) | | | | | | (21) | | | | | | (26) | | | | | | (32) | | |
Total EBITDA
|
| | | $ | 33 | | | | | $ | 61 | | | | | $ | 106 | | | | | $ | 120 | | | | | $ | 136 | | |
% Growth
|
| | | | | | | | | | 84% | | | | | | 72% | | | | | | 14% | | | | | | 13% | | |
% Margin
|
| | | | 5% | | | | | | 9% | | | | | | 13% | | | | | | 12% | | | | | | 12% | | |
Balance Sheet and Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported EBITDA
|
| | | $ | 33 | | | | | $ | 11 | | | | | $ | 106 | | | | | $ | 120 | | | | | $ | 136 | | |
Cash Capex
|
| | | | (8) | | | | | | (10) | | | | | | (14) | | | | | | (18) | | | | | | (23) | | |
Cash Interest Expense
|
| | | | (30) | | | | | | (35) | | | | | | (25) | | | | | | (11) | | | | | | (9) | | |
Cash Taxes(2)
|
| | | | (1) | | | | | | (1) | | | | | | (14) | | | | | | (19) | | | | | | (22) | | |
Change in Net Working Capital
|
| | | | (1) | | | | | | 41 | | | | | | 1 | | | | | | (31) | | | | | | (32) | | |
Earnouts(3) | | | | | (13) | | | | | | (6) | | | | | | — | | | | | | (10) | | | | | | (5) | | |
Levered Free Cash Flow
|
| | | $ | (20) | | | | | $ | (0) | | | | | $ | 54 | | | | | $ | 31 | | | | | $ | 45 | | |
% Margin
|
| | | | * | | | | | | * | | | | | | 51% | | | | | | 26% | | | | | | 33% | | |
Memo: Unlevered free cash flow
|
| | | $ | 11 | | | | | $ | 35 | | | | | $ | 79 | | | | | $ | 42 | | | | | $ | 54 | | |
% Margin
|
| | | | 32% | | | | | | * | | | | | | 75% | | | | | | 35% | | | | | | 40% | | |
Cash as of Period End
|
| | | $ | 0.3 | | | | | $ | 0.1 | | | | | $ | 38 | | | | | $ | 34 | | | | | $ | 33 | | |
Debt as of Period End
|
| | | $ | 431 | | | | | $ | 463 | | | | | $ | 240 | | | | | $ | 207 | | | | | $ | 160 | | |
Net Debt
|
| | | $ | 431 | | | | | $ | 463 | | | | | $ | 202 | | | | | $ | 173 | | | | | $ | 126 | | |
Net Leverage(4)
|
| | | | 5.0x | | | | | | 5.7x | | | | | | 1.9x | | | | | | 1.4x | | | | | | 0.9x | | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Name
|
| | “Roth CH Acquisition III Co.” | | | “QualTek Services Inc.” | | | The change in name will reflect the identity of ROCR’s business following the consummation of the Business Combination. | |
Provisions Specific to Special Purpose Acquisition Companies
|
| | The Current Charter sets forth various provisions related to its operations as a special purpose acquisition company prior to the consummation of an initial business combination. | | | The Proposed Certificate of Incorporation does not include these special purpose acquisition company provisions because, upon consummation of the Business Combination, ROCR will not be a special purpose acquisition | | | The provisions of the ROCR charter that relate to the operation of ROCR as a special purpose acquisition company prior to the consummation of the Business Combination would not be applicable to ROCR following the Business Combination | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
| | | | | | company. In addition, the provisions requiring that the proceeds from ROCR’s initial public offering be held in a trust account until a business combination or liquidation of the ROCR and the terms governing the ROCR’s consummation of a proposed business combination will not be applicable to ROCR following consummation of the Business Combination. | | | (such as the obligation to dissolve and liquidate if a business combination is not consummated in a certain period of time). | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Common stock
|
| | ROCR has 50,000,000 authorized shares of common stock. | | | ROCR will have [•] authorized [•] shares of Class A common stock, par value $0.0001 per share ; and (c) [•] shares of Class B common stock, par value $0.0001 per share | | | The Board believes that the greater number of authorized shares of capital stock is desirable for ROCR to have sufficient shares to issue to holders of [•] and to [•] in order to complete the Business Combination and have additional authorized shares for financing its business, for acquiring other businesses, for forming strategic partnerships and alliances and for stock dividends and stock splits. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Preferred stock
|
| | ROCR has no authorized shares of preferred stock. | | | ROCR will have [•] authorized shares of preferred stock, par value $0.0001 per share, which may be issued by the ROCR board of directors by resolution. | | | The Board believes that the flexibility afforded by authorization of a class of “blank check” preferred stock to public companies includes the ability to quickly access the capital markets when investors seek | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
| | | | | | | | | dividend-paying instruments such as straight or convertible preferred stock, and may in addition be used in connection with an undesirable takeover transaction, as more fully described below. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Stockholder Ability to Call Special Meetings
|
| | ROCR’s Current Charter contains no limitations on the ability to call special meetings of stockholders. | | | ROCR’s Proposed Certificate of Incorporation will provide that special meetings of stockholders may be called at any time only by the Chairman of the Board, or a majority of the directors. | | | The Board believes that eliminating the ability of ROCR’s stockholders to call a special meeting is a prudent corporate governance measure to reduce the possibility that a block of ROCR stockholders could take corporate actions that the Board deems undesirable, including for purposes of seeking to implement an opportunistic change in control of ROCR without the support of the then incumbent board of directors. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Classified Board
|
| | The directors of the Board are elected each year and serve a one-year term. | | | The Proposed Certificate of Incorporation states that ROCR’s board of directors will consist of three classes of directors, with only one class of directors being elected in each year and each class serving a three-year term. | | | The amendments to the classified board of directors are desirable for ROCR to enhance the likelihood of continuity and stability in the composition of ROCR’s board of directors, avoid costly takeover battles, reduce ROCR’s vulnerability to a hostile change of control and enhance the ability of the Board to maximize shareholder value in connection with any unsolicited offer to acquire ROCR. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Removal of Directors
|
| | ROCR’s Current Charter provides that any or all of the directors may be removed from office at any time, but only for cause and only by the affirmative vote of holders of 60% of the then outstanding shares of capital stock of ROCR entitled to vote generally in the election of directors, voting together as a single class. | | | Under the Proposed Certificate of Incorporation, ROCR’s directors may be removed only for cause and only upon the affirmative vote of the holders of a majority of the voting power of all the then outstanding shares of stock entitled to vote generally in the election of directors, voting together as a single class. | | | The Board believes that permitting stockholders to remove directors only for cause is a prudent corporate governance measure to reduce the possibility that a relatively small number of stockholders could seek to implement a sudden and opportunistic change in control of the Board without the support of the then incumbent board of directors. These changes will enhance the likelihood of continuity and stability in the composition of the Board, avoid costly takeover battles, reduce ROCR’s vulnerability to a hostile change of control and enhance the ability of the Board to maximize shareholder value in connection with any unsolicited offer to acquire ROCR. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
Absolve Certain Stockholders from Certain Competition and Corporate Opportunities Obligations
|
| | | | | Under the Proposed Certificate of Incorporation, none of the Sellers (as defined in the Investor Rights Agreement), the Sponsors (as defined in the Investor Rights Agreement), members of the Board who are not employees of the ROCR (“Non-Employee Directors”) or any of their Affiliates or Affiliated Entities (each as defined in the Proposed Certificate of Incorporation) (collectively, the “Identified Persons”) shall have any duty to refrain from directly or indirectly (1) engaging in or possessing interests in other business ventures of every type and description, including those engaged in the same or similar business activities or lines of business in which ROCR or any of its subsidiaries now engages or proposes to engage or (2) competing with ROCR or any of its subsidiaries, on its own account, or in partnership with, or as an employee, officer, director or shareholder of any other person, and, provide that no Identified Person shall be liable to ROCR or its stockholders or to any affiliate of ROCR for breach of any fiduciary duty solely by reason of the fact that such Identified Person engages in any such activities, and to provide that ROCR renounces any such business opportunity which may be a corporate opportunity for an | | | The Board believes that revising the existing waiver of the corporate opportunity doctrine so that such waiver is limited to the Identified Persons reflects a desirable and appropriate change in corporate governance for ROCR as it will no longer be a special purpose acquisition company and, as a result, a reasonable limitation on the advance waiver of business opportunities reflecting the changed circumstances of ROCR following the Business Combination is in the best interests of ROCR and its stockholders. | |
| | |
Current Charter
|
| |
Proposed Certificate of
Incorporation |
| |
Reason for the Proposed Change
|
|
| | | | | | Identified Person other than any corporate opportunity offered to any Non-Employee Director if such opportunity is expressly offered to such person solely and expressly in his or her capacity as a director or officer of ROCR, such opportunity is one the Board is legally permitted to undertake and would otherwise be reasonable for ROCR to pursue. | | | | |
Name
|
| |
Age
|
| |
Position
|
|
Andrew Weinberg | | |
47
|
| |
Chairman
|
|
Christopher S. Hisey | | |
56
|
| |
Chief Executive Officer and Director
|
|
Matthew Allard | | |
49
|
| |
Director
|
|
Sam Chawla | | |
46
|
| |
Director
|
|
Raul Deju | | |
74
|
| |
Director
|
|
Roger Bulloch | | |
48
|
| |
Director
|
|
Name
|
| |
Age
|
| |
Position
|
|
Byron Roth | | |
58
|
| |
Co-Chief Executive Officer and Chairman of the Board
|
|
Gordon Roth | | |
67
|
| | Chief Financial Officer | |
Rick Hartfiel | | |
57
|
| | Co-President | |
John Lipman | | |
44
|
| | Co-Chief Executive Officer and Director | |
Aaron Gurewitz | | |
52
|
| | Co-President | |
Molly Montgomery | | |
54
|
| | Director | |
Daniel M. Friedberg | | |
59
|
| | Director | |
Adam Rothstein | | |
49
|
| | Director | |
James Gold | | |
57
|
| | Director | |
Sam Chawla | | |
46
|
| | Director | |
| | |
Three Months Ended
March 31, 2021 |
| |
Three Months Ended
March 31, 2020 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Operating and formation costs
|
| | | $ | 39,751 | | | | | $ | 85 | | |
Loss from operations
|
| | | | (39,751) | | | | | | (85) | | |
Net loss
|
| | | $ | (28,740) | | | | | $ | (85) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 2,836,036 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share common share
|
| | | $ | (0.01) | | | | | $ | (0.00) | | |
Balance Sheet Data:
|
| |
March 31, 2021
(Unaudited) |
| |
December 31, 2020
(Audited) |
| ||||||
Cash
|
| | | $ | 983,708 | | | | | $ | 195,758 | | |
Prepaid expenses
|
| | | $ | 301,479 | | | | | $ | 1,500 | | |
Marketable securities held in Trust Account
|
| | | $ | 115,001,831 | | | | | | — | | |
Deferred offering costs
|
| | | | — | | | | | $ | 31,542 | | |
Total assets
|
| | | $ | 116,287,018 | | | | | $ | 228,800 | | |
Total liabilities
|
| | | $ | 116,970 | | | | | $ | 206,000 | | |
Total Stockholders’ Equity
|
| | | $ | 5,000,009 | | | | | $ | 22,800 | | |
Name
|
| |
Age
|
| |
Position
|
|
Christopher S. Hisey | | |
56
|
| | Chief Executive Officer (QualTek LLC) and Member of the Board of Managers of BCP QualTek HoldCo, LLC | |
Elizabeth Downey | | |
51
|
| | Chief Administrative Officer (QualTek LLC) | |
Michael B. Williams | | |
44
|
| | Chief Business Officer (QualTek LLC) | |
Adam Spittler | | |
41
|
| | Chief Financial Officer (QualTek LLC) | |
Matthew Allard | | |
49
|
| | Member of the Board of Managers | |
Andrew Weinberg | | |
47
|
| | Member of the Board of Managers | |
Name
|
| |
Principal Position
|
|
Christopher S. Hisey | | | Chief Executive Officer, QualTek LLC | |
Elizabeth Downey | | | Chief Administrative Officer, QualTek LLC | |
Kevin Doran | | |
Chief Executive Officer, QualTek Wireless LLC
|
|
Name and Principal Position (a)
|
| |
Year
|
| |
Salary
($)(2)(3) |
| |
Total
($)(4) |
| |||||||||
Christopher S. Hisey, Chief Executive Officer, QualTek LLC(1)
|
| | | | 2020 | | | | | $ | 501,154 | | | | | $ | 501,154 | | |
Elizabeth Downey, Chief Administrative Officer, QualTek LLC
|
| | | | 2020 | | | | | $ | 375,433 | | | | | $ | 375,433 | | |
Kevin Doran, Chief Executive Officer, QualTek Wireless LLC
|
| | | | 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
|
| | | | 12,305 | | | | | | 18,457(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 13,672 | | | | | | 20,508(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 15,280 | | | | | | 22,921(5) | | | | | | — | | | | | | — | | |
Elizabeth Downey
|
| |
April 15, 2019
|
| | | | 2,256 | | | | | | 3,384(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 2,506 | | | | | | 3,760(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 2,801 | | | | | | 4,202(5) | | | | | | — | | | | | | — | | |
Kevin Doran
|
| |
April 15, 2019
|
| | | | 2,871 | | | | | | 4,307(3) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 3,190 | | | | | | 4,785(4) | | | | | | — | | | | | | — | | |
| | |
April 15, 2019
|
| | | | 3,566 | | | | | | 5,348(5) | | | | | | — | | | | | | — | | |
| | |
For the Three Months Ended,
|
| |
For the Years Ended December 31,
|
| ||||||||||||||||||
(in thousands except unit and per unit data)
|
| |
April 3, 2021
|
| |
April 4, 2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Statements of Operations and Comprehensive Loss Data
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 122,178 | | | | | $ | 180,308 | | | | | $ | 674,005 | | | | | $ | 620,829 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 107,359 | | | | | | 161,666 | | | | | | 615,914 | | | | | | 545,208 | | |
General and administrative
|
| | | | 12,606 | | | | | | 12,646 | | | | | | 47,853 | | | | | | 43,606 | | |
Transaction expense
|
| | | | 549 | | | | | | 98 | | | | | | 988 | | | | | | 4,257 | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | — | | | | | | (7,081) | | | | | | 5,883 | | |
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | 840 | | |
Impairment of goodwill
|
| | | | — | | | | | | — | | | | | | 28,802 | | | | | | 13,251 | | |
Depreciation and amortization
|
| | | | 13,115 | | | | | | 11,824 | | | | | | 48,497 | | | | | | 42,115 | | |
Total costs and expenses
|
| | | | 133,629 | | | | | | 186,234 | | | | | | 734,973 | | | | | | 655,160 | | |
Loss from operations
|
| | | | (11,451) | | | | | | (5,926) | | | | | | (60,968) | | | | | | (34,331) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sales/disposal of property and equipment
|
| | | | 190 | | | | | | 35 | | | | | | 729 | | | | | | 130 | | |
Interest expense
|
| | | | (9,988) | | | | | | (10,271) | | | | | | (37,848) | | | | | | (33,593) | | |
Total other expense
|
| | | | (9,798) | | | | | | (10,236) | | | | | | (37,119) | | | | | | (33,463) | | |
Net loss
|
| | | $ | (21,249) | | | | | $ | (16,162) | | | | | $ | (98,087) | | | | | $ | (67,794) | | |
Accrued preferred return
|
| | | $ | 900 | | | | | $ | 815 | | | | | $ | 3,287 | | | | | $ | 742 | | |
Net loss attributable to Class A units
|
| | | $ | (22,149) | | | | | $ | (16,977) | | | | | $ | (101,374) | | | | | $ | (68,536) | | |
Net loss per unit:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (10.38) | | | | | $ | (8.46) | | | | | $ | (50.54) | | | | | $ | (34.93) | | |
Non-GAAP financial data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(1)
|
| | | $ | 2,900 | | | | | $ | 6,156 | | | | | $ | 11,485 | | | | | $ | 32,686 | | |
| | |
As of April 3,
|
| |
As of December 31,
|
| ||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 183 | | | | | $ | 169 | | | | | $ | 328 | | |
Working capital(2)
|
| | | | 9,652 | | | | | | 15,775 | | | | | | 71,316 | | |
Total assets
|
| | | | 646,407 | | | | | | 640,868 | | | | | | 747,230 | | |
Total liabilities
|
| | | | 615,537 | | | | | | 611,234 | | | | | | 613,072 | | |
Total equity
|
| | | | 30,870 | | | | | | 29,634 | | | | | | 134,158 | | |
| | |
For the Three Months Ended
|
| |
For the Years Ended December 31,
|
| ||||||||||||||||||
(in thousands)
|
| |
April 3, 2021
|
| |
April 4, 2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenue
|
| | | $ | 122,178 | | | | | $ | 180,308 | | | | | $ | 674,005 | | | | | $ | 620,829 | | |
Net loss
|
| | | $ | (21,249) | | | | | $ | (16,162) | | | | | $ | (98,087) | | | | | $ | (67,794) | | |
Adjusted EBITDA(1)
|
| | | $ | 2,900 | | | | | $ | 6,156 | | | | | $ | 11,485 | | | | | $ | 32,686 | | |
| | |
For the Three Months Ended
|
| |
For the Years Ended December 31,
|
| ||||||||||||||||||
(in thousands)
|
| |
April 3, 2021
|
| |
April 4, 2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net loss
|
| | | $ | (21,249) | | | | | $ | (16,162) | | | | | $ | (98,087) | | | | | $ | (67,794) | | |
Management fees
|
| | | | 497 | | | | | | 125 | | | | | | 518 | | | | | | 541 | | |
Transaction expenses
|
| | | | 549 | | | | | | 98 | | | | | | 988 | | | | | | 4,257 | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | — | | | | | | (7,081) | | | | | | 5,883 | | |
Impairment of goodwill
|
| | | | — | | | | | | — | | | | | | 28,802 | | | | | | 13,251 | | |
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | 840 | | |
Depreciation and amortization
|
| | | | 13,115 | | | | | | 11,824 | | | | | | 48,497 | | | | | | 42,115 | | |
Interest expense
|
| | | | 9,988 | | | | | | 10,271 | | | | | | 37,848 | | | | | | 33,593 | | |
Adjusted EBITDA
|
| | | $ | 2,900 | | | | | $ | 6,156 | | | | | $ | 11,485 | | | | | $ | 32,686 | | |
| | |
For the Three Months Ended
|
| |||||||||||||||||||||
(in thousands)
|
| |
April 3, 2021
|
| |
April 4, 2020
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue
|
| | | $ | 122,178 | | | | | $ | 180,308 | | | | | $ | (58,130) | | | | | | (32.2)% | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 107,359 | | | | | | 161,666 | | | | | | (54,307) | | | | | | (33.6)% | | |
General and administrative
|
| | | | 12,606 | | | | | | 12,646 | | | | | | (40) | | | | | | (0.3)% | | |
Transaction expense
|
| | | | 549 | | | | | | 98 | | | | | | 451 | | | | | | 460.2% | | |
Depreciation and amortization
|
| | | | 13,115 | | | | | | 11,824 | | | | | | 1,291 | | | | | | 10.9% | | |
Total costs and expenses
|
| | | | 133,629 | | | | | | 186,234 | | | | | | (52,605) | | | | | | (28.2)% | | |
Loss from operations
|
| | | | (11,451) | | | | | | (5,926) | | | | | | (5,525) | | | | | | (93.2)% | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sales/disposal of property and equipment
|
| | | | 190 | | | | | | 35 | | | | | | 155 | | | | | | 442.9% | | |
Interest expense
|
| | | | (9,988) | | | | | | (10,271) | | | | | | 283 | | | | | | 2.8% | | |
Total other expense
|
| | | | (9,798) | | | | | | (10,236) | | | | | | 438 | | | | | | 4.3% | | |
Net loss
|
| | | $ | (21,249) | | | | | $ | (16,162) | | | | | $ | (5,087) | | | | | | (31.5)% | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue
|
| | | $ | 674,005 | | | | | $ | 620,829 | | | | | $ | 53,176 | | | | | | 8.6% | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 615,914 | | | | | | 545,208 | | | | | | 70,706 | | | | | | 13.0% | | |
General and administrative
|
| | | | 47,853 | | | | | | 43,606 | | | | | | 4,247 | | | | | | 9.7% | | |
Transaction expense
|
| | | | 988 | | | | | | 4,257 | | | | | | (3,269) | | | | | | (76.8)% | | |
Change in fair value of contingent consideration
|
| | | | (7,081) | | | | | | 5,883 | | | | | | (12,964) | | | | | | (220.4)% | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Impairment of long-lived assets
|
| | | | — | | | | | | 840 | | | | | | (840) | | | | | | (100.0)% | | |
Impairment of goodwill
|
| | | | 28,802 | | | | | | 13,251 | | | | | | 15,551 | | | | | | 117.4% | | |
Depreciation and amortization
|
| | | | 48,497 | | | | | | 42,115 | | | | | | 6,382 | | | | | | 15.2% | | |
Total costs and expenses
|
| | | | 734,973 | | | | | | 655,160 | | | | | | 79,813 | | | | | | 12.2% | | |
Loss from operations
|
| | | | (60,968) | | | | | | (34,331) | | | | | | (26,637) | | | | | | (77.6)% | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sales/disposal of property and equipment
|
| | | | 729 | | | | | | 130 | | | | | | 599 | | | | | | 460.8% | | |
Interest expense
|
| | | | (37,848) | | | | | | (33,593) | | | | | | (4,255) | | | | | | (12.7)% | | |
Total other expense
|
| | | | (37,119) | | | | | | (33,463) | | | | | | (3,656) | | | | | | (10.9)% | | |
Net loss
|
| | | $ | (98,087) | | | | | $ | (67,794) | | | | | $ | (30,293) | | | | | | (44.7)% | | |
|
| | |
For the Three Months Ended
|
| |||||||||||||||||||||
(in thousands)
|
| |
April 3, 2021
|
| |
April 4, 2020
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | $ | 109,545 | | | | | $ | 177,159 | | | | | $ | (67,614) | | | | | | (38.2)% | | |
Renewables and Recovery Logistics
|
| | | | 12,633 | | | | | | 3,149 | | | | | | 9,484 | | | | | | 301.2% | | |
Total revenue
|
| | | $ | 122,178 | | | | | $ | 180,308 | | | | | $ | (58,130) | | | | | | (32.2)% | | |
Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | | 3,951 | | | | | | 11,188 | | | | | | (7,237) | | | | | | (64.7)% | | |
Renewables and Recovery Logistics
|
| | | | 2,878 | | | | | | (254) | | | | | | 3,132 | | | | | | 1,233.1% | | |
Corporate & Eliminations
|
| | | | (3,929) | | | | | | (4,778) | | | | | | 849 | | | | | | (17.8)% | | |
Total Adjusted EBITDA
|
| | | $ | 2,900 | | | | | $ | 6,156 | | | | | $ | (3,256) | | | | | | (52.9)% | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
($) Change
|
| |
(%) Change
|
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | $ | 605,095 | | | | | $ | 589,903 | | | | | $ | 15,192 | | | | | | 2.6% | | |
Renewables and Recovery Logistics
|
| | | | 68,910 | | | | | | 30,926 | | | | | | 37,984 | | | | | | 122.8% | | |
Total revenue
|
| | | $ | 674,005 | | | | | $ | 620,829 | | | | | $ | 53,176 | | | | | | 8.6% | | |
Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | |
Telecom
|
| | | | 755 | | | | | | 37,879 | | | | | | (37,124) | | | | | | (98.0)% | | |
Renewables and Recovery Logistics
|
| | | | 28,943 | | | | | | 11,442 | | | | | | 17,501 | | | | | | 152.9% | | |
Corporate & Eliminations
|
| | | | (18,213) | | | | | | (16,635) | | | | | | (1,578) | | | | | | 9.5% | | |
Total Adjusted EBITDA
|
| | | $ | 11,485 | | | | | $ | 32,686 | | | | | $ | (21,201) | | | | | | (64.9)% | | |
| | |
For the Three Months Ended
|
| |
For the Years Ended December 31,
|
| ||||||||||||||||||
(in thousands)
|
| |
April 3, 2021
|
| |
April 4, 2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net cash (used in) provided by operating activites
|
| | | $ | (7,342) | | | | | $ | (2,477) | | | | | $ | 13,457 | | | | | $ | (3,002) | | |
Net cash used in investing activities
|
| | | | (20,646) | | | | | | (936) | | | | | | (3,963) | | | | | | (79,609) | | |
Net cash provided by (used in) financing activities
|
| | | | 28,010 | | | | | | 4,269 | | | | | | (9,712) | | | | | | 81,955 | | |
Effect of foreign currency exchange rate (translation)
on cash |
| | | | (8) | | | | | | (142) | | | | | | 59 | | | | | | 23 | | |
Net increase/decrease in cash
|
| | | $ | 14 | | | | | $ | 714 | | | | | $ | (159) | | | | | $ | (633) | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Total
|
| |
Less than 1 Year
|
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than 5 Years
|
| |||||||||||||||
Line of credit
|
| | | $ | 59,837 | | | | | | — | | | | | | 59,837 | | | | | | — | | | | | | — | | |
Term loan
|
| | | | 361,045 | | | | | | 9,564 | | | | | | 19,128 | | | | | | 332,353 | | | | | | — | | |
Capital lease obligations
|
| | | | 29,008 | | | | | | 9,437 | | | | | | 15,507 | | | | | | 4,064 | | | | | | — | | |
Operating leases
|
| | | | 38,420 | | | | | | 10,017 | | | | | | 14,561 | | | | | | 5,970 | | | | | | 7,872 | | |
Acquisition debt
|
| | | | 10,575 | | | | | | 10,575 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 498,885 | | | | | | 39,593 | | | | | | 109,033 | | | | | | 342,387 | | | | | | 7,872 | | |
Name
|
| |
Age
|
| |
Position
|
|
Christopher S. Hisey(1) | | |
56
|
| | Chief Executive Officer and Director | |
Elizabeth Downey | | |
51
|
| | Chief Administrative Officer | |
Michael B. Williams | | |
44
|
| | Chief Business Officer | |
Adam Spittler | | |
41
|
| | Chief Financial Officer | |
Andrew Weinberg(1) | | |
47
|
| | Chairman | |
Matthew Allard(1) | | |
49
|
| | Director | |
Sam Chawla(2) | | |
46
|
| | Director | |
Raul Deju(1) | | |
75
|
| | Director | |
Roger Bulloch(1) | | |
48
|
| | Director | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| |||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No Redemption
|
| |
Assuming 100% Redemption
|
| | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |||||||||||||||
Directors and Executive Officers of ROCR:
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
%
|
| | | | | | | | | | | | | |
Byron Roth(2)
|
| | | | 1,028,876 | | | | | | 7.0% | | | | | | 1,654,626 | | | | | | | | | | | | | | | 1,654,626 | | | | | | | | |
Aaron Gurewitz(3)
|
| | | | 119,540 | | | | | | 0.8% | | | | | | 119,540 | | | | | | | | | | | | | | | 119,540 | | | | | | | | |
Gordon Roth(2)
|
| | | | 672,956 | | | | | | 4.6% | | | | | | 1,298,706 | | | | | | | | | | | | | | | 1,298,706 | | | | | | | | |
John Lipman
|
| | | | 699,381 | | | | | | 4.7% | | | | | | 796,862 | | | | | | | | | | | | | | | 796,862 | | | | | | | | |
Rick Hartfiel
|
| | | | 89,577 | | | | | | * | | | | | | 102,062 | | | | | | | | | | | | | | | 102,062 | | | | | | | | |
Molly Montgomery
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | | | | | | | | | | 40,233 | | | | | | | | |
David M. Friedberg(4)
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | | | | | | | | | | 40,233 | | | | | | | | |
Adam Rothstein
|
| | | | 40,233 | | | | | | * | | | | | | 40,233 | | | | | | | | | | | | | | | 40,233 | | | | | | | | |
Sam Chawla
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | | | | | | | | | | 91,194 | | | | | | | | |
James Gold
|
| | | | 91,194 | | | | | | * | | | | | | 91,194 | | | | | | | | | | | | | | | 91,194 | | | | | | | | |
All Directors and Executive Officers of ROCR as a Group (8 Individuals)
|
| | | | 2,332,813 | | | | | | 15.8% | | | | | | 3,068,529 | | | | | | | | | | | | | | | 3,068,529 | | | | | | | | |
Five Percent Holders ROCR:
|
| | | | | | | | | | | | | | | | | | | | | | | | | % | | | | | | | | | | | | | | |
Byron Roth (5)
|
| | | | 1,028,876 | | | | | | 7.0% | | | | | | 1,654,626 | | | | | | | | | | | | | | | 1,654,626 | | | | | | | | |
Sanders Morris Harris LLC(6)
|
| | | | 873,035 | | | | | | 5.9% | | | | | | 1,991,535 | | | | | | | | | | | | | | | 1,991,535 | | | | | | | | |
Glazer Capital, LLC(7)
|
| | | | 740,954 | | | | | | 5.0% | | | | | | 740,954 | | | | | | | | | | | | | | | 740,954 | | | | | | | | |
Directors and Executive Officers of Combined Company After Consummation of the Business Combination:
|
| | | | | | | | |
|
%
|
| | | | | | | | | | | | |
|
%
|
| | | | | | | | | | | | | |
Christopher S. Hisey
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elizabeth Downey
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael B. Williams
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adam Spittler
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Andrew Weinberg
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Matthew Allard
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of Combined Company as a Group ([•] Individuals)
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
%
|
| | | | | | | | | | | | | |
Five Percent Holders of Combined
Company After Consummation of the Business Combination: |
| | | | | | | | | | | | | | | | | | | | | | | |
|
%
|
| | | | | | | | | | | | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| ||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No Redemption
|
| |
Assuming 100% Redemption
|
| | | | ||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| |
Number of
Shares of Class A Common Stock |
| |
Number of
Shares of Class B Common Stock |
| |
% of
Total Voting Power |
| ||||||
BCP AIV Investor Holdings-3,
L.P. |
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | |
BCP Strategic AIV Investor Holdings-2, L.P.
|
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | |
BCP QualTek Investor Holdings, L.P.
|
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | |
BCP QualTek, LLC.
|
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | |
BCP QualTekII, LLC.
|
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | |
BCP QualTek Management, LLC.
|
| | | | [•] | | | | | | [•]% | | | | | | | | | | | | | | | | | | | | |
| | |
Current Charter
|
| |
Proposed Certificate of Incorporation
|
|
Number of Authorized Shares | | | | | | | |
a)
Common Stock
|
| | 50,000,000 | | | Class A Common Stock [•] | |
b)
Preferred Stock
|
| | 0 | | |
Class B Common Stock [•]
Preferred Stock [•]
|
|
Voting Power | | | | | | | |
a)
Director Removal
|
| | 60% of the voting power of the outstanding shares of capital stock | | | Majority of the voting power of the outstanding shares of capital stock | |
b)
Amend/Repeal Bylaws
|
| | Board of Directors, acting alone, without consent of the stockholders | | | Board of Directors, acting alone, without consent of the stockholders | |
c)
Amend/Repeal Certificate of Incorporation
|
| | Not specified | | | Majority of the voting power of the outstanding shares of capital stock | |
Liquidation, Dissolution and Winding Up | | | Redemption of the IPO Shares for cash and distribution of remaining assets to stockholders in accordance with DGCL | | | Assets to be distributed pro-rata to the holders of Class A Common Stock, after payment or provision for payment of the debts and other liabilities of the Company and of the preferential and other amounts, amounts, if any, to which the holders of Preferred Stock are entitled | |
| | |
PAGE
|
|
Roth CH Acquisition III Co. Audited Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
Roth CH Acquisition III Co. Unaudited Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
BCP QualTek Holdco, LLC and Subsidiary Audited Consolidated Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
BCP QualTek Holdco, LLC and Subsidiary Unaudited Consolidated Financial Statements | | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 195,758 | | | | | $ | 25,000 | | |
Other current asset
|
| | | | 1,500 | | | | | | — | | |
Total Current Assets
|
| | | | 197,258 | | | | | | 25,000 | | |
Deferred offering costs
|
| | | | 31,542 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 228,800 | | | | | $ | 25,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 1,000 | | | | | $ | 1,225 | | |
Accrued offering costs
|
| | | | 5,000 | | | | | | — | | |
Promissory note – related party
|
| | | | 200,000 | | | | | | — | | |
Total Current Liabilities
|
| | | | 206,000 | | | | | | 1,225 | | |
Commitments | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 2,875,000 shares issued and outstanding as of December 31, 2020 and December 31, 2019(1)
|
| | | | 288 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | 24,712 | | | | | | 24,712 | | |
Accumulated deficit
|
| | | | (2,200) | | | | | | (1,225) | | |
Total Stockholders’ Equity
|
| | | | 22,800 | | | | | | 23,775 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 228,800 | | | | | $ | 25,000 | | |
| | |
For the Year
Ended December 31, 2020 |
| |
For the Period
from February 13, 2019 (Inception) Through December 31, 2019 |
| ||||||
Formation and operating costs
|
| | | $ | 975 | | | | | $ | 1,225 | | |
Net Loss
|
| | | $ | (975) | | | | | $ | (1,225) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 2,500,000 | | | | | | 2,500,000 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.00) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | | | | | | | ||||||
Balance – February 13, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to Initial Stockholders(1)
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,225) | | | | | | (1,225) | | |
Balance – December 31, 2019
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | (1,225) | | | | | | 23,775 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (975) | | | | | | (975) | | |
Balance – December 31, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (2,200) | | | | | $ | 22,800 | | |
| | |
For the Year
ended December 31, 2020 |
| |
For the Period
from February 13, 2019 (Inception) Through December 31, 2019 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (975) | | | | | $ | (1,225) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Other current asset
|
| | | | (1,500) | | | | | | — | | |
Accrued expenses
|
| | | | (225) | | | | | | 1,225 | | |
Net cash used in operating activities
|
| | | | (2,700) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of common stock to Initial Stockholders
|
| | | | — | | | | | | 25,000 | | |
Proceeds from promissory note – related party
|
| | | | 200,000 | | | | | | — | | |
Payments of offering costs
|
| | | | (26,542) | | | | | | — | | |
Net cash provided by operating activities
|
| | | | 173,458 | | | | | | 25,000 | | |
Net Change in Cash
|
| | | | 170,758 | | | | |
|
25,000
|
| |
Cash – Beginning
|
| | | | 25,000 | | | | | | — | | |
Cash – Ending | | | | $ | 195,758 | | | | | $ | 25,000 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Deferred offering costs included in accrued offering costs
|
| | | $ | 5,000 | | | | | $ | — | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| ||||||
|
(Unaudited)
|
| | | | | | | |||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 983,708 | | | | | $ | 195,758 | | |
Prepaid expenses
|
| | | | 301,479 | | | | | | 1,500 | | |
Total Current Assets
|
| | | | 1,285,187 | | | | | | 197,258 | | |
Deferred offering costs
|
| | | | — | | | | | | 31,542 | | |
Marketable securities held in Trust Account
|
| | | | 115,001,831 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 116,287,018 | | | | | $ | 228,800 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 17,930 | | | | | $ | 1,000 | | |
Accrued offering costs
|
| | | | 16,420 | | | | | | 5,000 | | |
Promissory note – related party
|
| | | | — | | | | | | 200,000 | | |
Total Current Liabilities
|
| | | | 34,350 | | | | | | 206,000 | | |
Warrant liability
|
| | | | 82,620 | | | | | | — | | |
Total Liabilities
|
| | | | 116,970 | | | | | | 206,000 | | |
Commitments | | | | | | | | | | | | | |
Common stock subject to possible redemption 11,117,004 and no shares at redemption value at March 31, 2021 and December 31, 2020, respectively
|
| | | | 111,170,039 | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, no par value; no shares authorized; none issued or outstanding
|
| | | | — | | | | | | — | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,665,996 and 2,875,000 shares issued and outstanding (excluding 11,117,004 and no shares subject to possible redemption) as of March 31, 2021 and December 31, 2020, respectively
|
| | | | 366 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | 5,030,583 | | | | | | 24,712 | | |
Accumulated deficit
|
| | | | (30,940) | | | | | | (2,200) | | |
Total Stockholders’ Equity
|
| | | | 5,000,009 | | | | | | 22,800 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 116,287,018 | | | | | $ | 228,800 | | |
| | |
For the Three
Months Ended March 31, 2021 |
| |
For the Three
Months Ended March 31, 2020 |
| ||||||
Operating and formation costs
|
| | | $ | 39,751 | | | | | $ | 85 | | |
Loss from operations
|
| | | | (39,751) | | | | | | (85) | | |
Other income: | | | | | | | | | | | | | |
Change in fair value of warrants
|
| | | | 9,180 | | | | | | — | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 1,831 | | | | | | — | | |
Other income, net
|
| | | | 11,011 | | | | | | — | | |
Loss before income taxes
|
| | | | (28,740) | | | | | | (85) | | |
Net loss
|
| | | $ | (28,740) | | | | | $ | (85) | | |
Basic and diluted weighted average shares outstanding, Common stock subject
to redemption |
| | | | 3,212,386 | | | | | | — | | |
Basic and diluted net income per share, Common stock subject to redemption
|
| | | $ | 0.00 | | | | | $ | — | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 2,836,036 | | | | | | 2,500,000 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.01) | | | | | $ | — | | |
| | |
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 | | |
Sale of 11,500,000 Units, net of underwriting discount and offering expenses
|
| | | | 11,500,000 | | | | | | 1,150 | | | | | | 112,186,638 | | | | | | — | | | | | | 112,187,788 | | |
Sale of 408,000 Private Placement Units Private Placement Shares
|
| | | | 408,000 | | | | | | 41 | | | | | | 3,988,159 | | | | | | — | | | | | | 3,988,200 | | |
Common stock subject to possible redemption
|
| | | | (11,117,004) | | | | | | (1,113) | | | | | | (111,168,926) | | | | | | — | | | | | | (111,170,039) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (28,740) | | | | | | (28,740) | | |
Balance – March 31, 2021
|
| | | | 3,665,996 | | | | | $ | 366 | | | | | $ | 5,030,583 | | | | | $ | (30,940) | | | | | $ | 5,000,009 | | |
| | |
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 | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (28,740) | | | | | $ | (85) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Change in fair value of warrants
|
| | | | (9,180) | | | | | | — | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (1,831) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | (299,979) | | | | | | — | | |
Accounts payable and accrued expenses
|
| | | | 16,930 | | | | | | 85 | | |
Net cash used in operating activities
|
| | |
|
(322,800)
|
| | | | | — | | |
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
|
| | | | (469,250) | | | | | | — | | |
Net cash provided by financing activities
|
| | |
|
116,110,750
|
| | | | | — | | |
Net Change in Cash
|
| | |
|
787,950
|
| | | | | — | | |
Cash – Beginning of period
|
| | | | 195,758 | | | | | | — | | |
Cash – End of period
|
| | | $ | 983,708 | | | | | | — | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Offering costs included in accrued offering costs
|
| | | $ | 16,420 | | | | | | — | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 111,197,990 | | | | | | — | | |
Initial classification of warrant liability
|
| | | $ | 91,800 | | | | | | — | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (27,951) | | | | | | — | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As Revised
|
| |||||||||
Balance sheet as of March 5, 2021 (audited) | | | | | | | | | | | | | | | | | | | |
Warrant Liability
|
| | | $ | — | | | | | $ | 91,800 | | | | | $ | 91,800 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 111,289,790 | | | | | | (91,800) | | | | | | 111,197,990 | | |
Class A Common Stock
|
| | | | 365 | | | | | | 2 | | | | | | 366 | | |
Additional Paid-in Capital
|
| | | | 5,002,633 | | | | | | (2) | | | | | | 5,002,631 | | |
Accumulated Deficit
|
| | | | (2,990) | | | | | | — | | | | | | (2,990) | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Common stock subject to possible redemption | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | $ | 1,770 | | | | | $ | — | | |
Less: interest available to be withdrawn for payment of taxes
|
| | | | (1,770) | | | | | | — | | |
Net income allocable to Common Stock subject to possible redemption
|
| | |
|
4
|
| | | |
$
|
—
|
| |
Denominator: Weighted Average Common stock subject to possible
redemption |
| | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Common stock subject to
possible redemption |
| | |
|
3,212,386
|
| | | |
|
—
|
| |
Basic and diluted net income per share, Common stock subject to possible redemption
|
| | |
$
|
0.00
|
| | | |
$
|
—
|
| |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Loss minus Net income allocable to Common stock subject to possible redemption
|
| | | | | | | | | | | | |
Net loss
|
| | | $ | (28,740) | | | | | $ | (85) | | |
Less: Net income allocable to Common stock subject to possible redemption
|
| | | | — | | | | | | — | | |
Non-Redeemable Net Loss
|
| | | $ | (28,740) | | | | | $ | (85) | | |
Denominator: Weighted Average Non-redeemable Common stock | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common
stock |
| | | | 2,836,036 | | | | |
|
2,500,000
|
| |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (0.01) | | | | | $ | (0.00) | | |
| | |
Description
|
| |
March 31,
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
|
| | | | | | $ | 115,001,831 | | | | | $ | 115,001,831 | | | | | $ | — | | | | | $ | — | | |
Liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant Liability – Private
Placement Warrants |
| | | | | | $ | 82,620 | | | | | $ | — | | | | | $ | — | | | | | $ | 82,620 | | |
| | |
At
March 5,2021 (Initial Measurement) |
| |
As of
March 31, 2021 |
| ||||||
Stock price
|
| | | $ | 9.78 | | | | | $ | 9.90 | | |
Strike price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Volatility
|
| | | | 14.9% | | | | | | 13.1% | | |
Risk-free rate
|
| | | | 0.87% | | | | | | 0.99% | | |
Probability of Business Combination occurring
|
| | | | 75% | | | | | | 75% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
Fair value of warrants
|
| | | $ | 0.90 | | | | | $ | 0.81 | | |
| | |
Warrant Liabilities
|
| |||
Fair value as of March 5, 2021 (Initial Measurement)
|
| | | $ | 91,800 | | |
Change in valuation inputs or other assumptions
|
| | | | 9,180 | | |
Fair value as of March 31, 2021
|
| | | $ | 82,620 | | |
| | |
December 31,
|
| | | | |||||||||
| | |
2020
|
| |
2019
|
| | ||||||||
Assets | | | | | | | | | | | | | | | ||
Current assets: | | | | | | | | | | | | | | | ||
Cash
|
| | |
$
|
169
|
| | | | $ | 328 | | | | ||
Accounts receivable, net of allowance
|
| | |
|
180,540
|
| | | | | 234,882 | | | | ||
Inventories, net
|
| | |
|
5,793
|
| | | | | 7,820 | | | | ||
Prepaid expenses
|
| | |
|
3,530
|
| | | | | 4,353 | | | | ||
Other current assets
|
| | |
|
2,191
|
| | | | | 1,631 | | | | ||
Total current assets
|
| | |
|
192,223
|
| | | | | 249,014 | | | | ||
Property and equipment, net
|
| | |
|
37,074
|
| | | | | 22,758 | | | | ||
Intangible assets, net
|
| | |
|
351,528
|
| | | | | 387,848 | | | | ||
Goodwill
|
| | |
|
58,522
|
| | | | | 86,503 | | | | ||
Other long-term assets
|
| | |
|
1,521
|
| | | | | 1,107 | | | | ||
Total assets
|
| | | $ | 640,868 | | | | |
$
|
747,230
|
| | | ||
Liabilities and Equity | | | | | ||||||||||||
Current liabilities: | | | | | | | | | | | | | | | ||
Current portion of long-term debt and capital lease obligations
|
| | |
$
|
28,169
|
| | | | $ | 14,525 | | | | ||
Current portion of contingent consideration
|
| | |
|
9,968
|
| | | | | 10,808 | | | | ||
Accounts payable
|
| | |
|
56,558
|
| | | | | 72,144 | | | | ||
Accrued expenses
|
| | |
|
66,808
|
| | | | | 61,751 | | | | ||
Contract liabilities
|
| | |
|
14,945
|
| | | | | 18,470 | | | | ||
Total current liabilities
|
| | |
|
176,448
|
| | | | | 177,698 | | | | ||
Capital lease obligations, net of current portion
|
| | |
|
17,752
|
| | | | | 9,364 | | | | ||
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 | | | | ||
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
|
| | |
$
|
674,005
|
| | | | $ | 620,829 | | | | ||
Costs and expenses: | | | | | | | | | | | | | | | ||
Cost of revenues
|
| | |
|
615,914
|
| | | | | 545,208 | | | | ||
General and administrative
|
| | |
|
47,853
|
| | | | | 43,606 | | | | ||
Transaction expenses
|
| | |
|
988
|
| | | | | 4,257 | | | | ||
Change in fair value of contingent consideration
|
| | |
|
(7,081)
|
| | | | | 5,883 | | | | ||
Impairment of long-lived assets
|
| | | | — | | | | | | 840 | | | | ||
Impairment of goodwill
|
| | |
|
28,802
|
| | | | | 13,251 | | | | ||
Depreciation and amortization
|
| | |
|
48,497
|
| | | | | 42,115 | | | | ||
Total costs and expenses
|
| | |
|
734,973
|
| | | | | 655,160 | | | | ||
Loss from operations
|
| | |
|
(60,968)
|
| | | | | (34,331) | | | | ||
Other income (expense): | | | | | | | | | | | | | | | ||
Gain on sale/ disposal of property and equipment
|
| | |
|
729
|
| | | | | 130 | | | | ||
Interest expense
|
| | |
|
(37,848)
|
| | | | | (33,593) | | | | ||
Total other expense
|
| | |
|
(37,119)
|
| | | | | (33,463) | | | | ||
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 earnings 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) |
| | | | |||||||||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Total
Equity |
| | | | | | | |||||||||||||||||||||||||||
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) | | |
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities: |
| | | | | | | | | | | | |
Depreciation, amortization and accretion of debt discount
|
| | |
|
48,497
|
| | | | | 42,115 | | |
Impairment of intangible assets, including goodwill
|
| | |
|
28,802
|
| | | | | 14,091 | | |
Amortization of debt issuance costs
|
| | |
|
3,090
|
| | | | | 2,269 | | |
Change in fair value of contingent consideration
|
| | |
|
(7,081)
|
| | | | | 5,883 | | |
Payments of acquisition related contingent consideration
|
| | | | — | | | | | | (5,238) | | |
Provision for bad debt expense
|
| | |
|
4,104
|
| | | | | (741) | | |
Gain on disposal of property and equipment
|
| | |
|
(729)
|
| | | | | (130) | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | |
|
52,592
|
| | | | | (18,026) | | |
Inventories
|
| | |
|
2,113
|
| | | | | (265) | | |
Prepaid expenses and other assets
|
| | |
|
(686)
|
| | | | | (1,363) | | |
Accounts payable and accrued liabilities
|
| | |
|
(15,633)
|
| | | | | 14,501 | | |
Contract liabilities
|
| | |
|
(3,525)
|
| | | | | 11,696 | | |
Net cash provided by (used in) operating activities
|
| | |
|
13,457
|
| | | | | (3,002) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | |
|
(4,844)
|
| | | | | (3,646) | | |
Proceeds from sale of property and equipment
|
| | |
|
881
|
| | | | | 379 | | |
Acquisitions of businesses, see Note 3
|
| | | | — | | | | | | (76,342) | | |
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
|
| | |
|
(6,121)
|
| | | | | (4,582) | | |
Proceeds from issuance of preferred equity
|
| | | | — | | | | | | 25,000 | | |
Tax distributions to members
|
| | |
|
(1,197)
|
| | | | | (843) | | |
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 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Interest paid
|
| | |
$
|
35,097
|
| | | | $ | 30,398 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Assets acquired under capital leases
|
| | |
$
|
18,289
|
| | | | $ | 9,587 | | |
| | |
2020
|
| |
2019
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (98,087) | | | | | $ | (67,794) | | |
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 | | |
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 tradenames
|
| | | | 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 tradenames
|
| | | | 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 tradenames
|
| | | | 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
|
| | | $ | 1,257 | | | | | $ | 906 | | |
Computers
|
| | | | 1,280 | | | | | | 1,109 | | |
Machinery, equipment and vehicles
|
| | | | 11,025 | | | | | | 7,231 | | |
Leasehold improvements
|
| | | | 3,643 | | | | | | 1,075 | | |
Software
|
| | | | 2,215 | | | | | | 1,918 | | |
Assets under capital lease
|
| | | | 37,688 | | | | | | 20,641 | | |
Construction in process
|
| | | | 605 | | | | | | 246 | | |
| | | | | 57,713 | | | | | | 33,126 | | |
Less: accumulated depreciation
|
| | | | (20,639) | | | | | | (10,368) | | |
Property and equipment, net
|
| | | $ | 37,074 | | | | | $ | 22,758 | | |
| | |
2020
|
| |
2019
|
| ||||||
Trade accounts receivable
|
| | | $ | 45,724 | | | | | $ | 63,040 | | |
Contract assets
|
| | | | 139,367 | | | | | | 178,879 | | |
| | | | | 185,091 | | | | | | 241,919 | | |
Less: allowance for doubtful accounts
|
| | | | (4,551) | | | | | | (7,037) | | |
Accounts receivable, net
|
| | | $ | 180,540 | | | | | $ | 234,882 | | |
| | |
2020
|
| |
2019
|
| ||||||
Contract assets
|
| | | $ | 139,367 | | | | | $ | 178,879 | | |
Contract liabilities
|
| | | | (14,945) | | | | | | (18,470) | | |
Contract assets, net
|
| | | $ | 124,422 | | | | | $ | 160,409 | | |
| | |
2020
|
| |
2019
|
| | ||||||||||||||||||||
| | |
Amount
|
| |
% of Total
|
| |
Amounts
|
| |
% of Total
|
| | ||||||||||||||
AT&T
|
| | | $ | 81,796 | | | | | | 44.2% | | | | | $ | 120,145 | | | | | | 49.7% | | | | ||
Verizon
|
| | | | 65,346 | | | | | | 35.3% | | | | | | 69,552 | | | | | | 28.8% | | | | ||
Total
|
| | | $ | 147,142 | | | | | | 79.5% | | | | | $ | 189,697 | | | | | | 78.5% | | | | | |
| | |
Renewables
and Recovery Logistics |
| |
Telecom
|
| |
Total
|
| |||||||||
Goodwill as of January 1, 2019
|
| | | $ | 13,598 | | | | | $ | 32,442 | | | | | $ | 46,040 | | |
Additions from acquisitions
|
| | | | — | | | | | | 53,552 | | | | | | 53,552 | | |
Impairment loss(a)
|
| | | | — | | | | | | (13,089) | | | | | | (13,089) | | |
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
|
| | | | 10.7 | | | | | $ | 374,399 | | | | | $ | (67,392) | | | | | $ | 307,007 | | |
Trade names
|
| | | | 10.0 | | | | | | 59,759 | | | | | | (15,238) | | | | | | 44,521 | | |
| | | | | | | | | | $ | 434,158 | | | | | $ | (82,630) | | | | | $ | 351,528 | | |
| | |
2019
|
| |||||||||||||||||||||
| | |
Weighted Average
Remaining Useful Life |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying amount
|
| ||||||||||||
Customer relationships
|
| | | | 11.7 | | | | | $ | 374,264 | | | | | $ | (37,667) | | | | | $ | 336,597 | | |
Trade names
|
| | | | 10.5 | | | | | | 59,732 | | | | | | (8,481) | | | | | | 51,251 | | |
| | | | | | | | | | $ | 433,996 | | | | | $ | (46,148) | | | | | $ | 387,848 | | |
| Years ending December 31: | | | | | | | |
|
2021
|
| | | $ | 36,284 | | |
|
2022
|
| | | | 36,284 | | |
|
2023
|
| | | | 34,993 | | |
|
2024
|
| | | | 32,944 | | |
|
2025
|
| | | | 31,988 | | |
|
Thereafter
|
| | | | 179,035 | | |
| | | | | $ | 351,528 | | |
| | |
2020
|
| |
2019
|
| ||||||
Line of credit
|
| | | $ | 59,837 | | | | | $ | 46,554 | | |
Term loan
|
| | | | 361,045 | | | | | | 370,609 | | |
Acquisition debt
|
| | | | 10,575 | | | | | | — | | |
Capital lease obligations
|
| | | | 29,008 | | | | | | 16,161 | | |
Less: amounts representing interest
|
| | | | (3,226) | | | | | | (1,836) | | |
Less: unamortized financing fees
|
| | | | (13,854) | | | | | | (16,830) | | |
| | | | | 443,385 | | | | | | 414,658 | | |
Less: current portion of long-term debt
|
| | | | (20,139) | | | | | | (9,564) | | |
Less: current portion of capital lease obligations, net of capital lease interest
|
| | | | (8,030) | | | | | | (4,961) | | |
| | | | $ | 415,216 | | | | | $ | 400,133 | | |
| | |
Line of
credit |
| |
Term
loan |
| |
Acquisition
debt |
| |
Capital
lease obligations |
| |
Total
|
| |||||||||||||||
2021
|
| | | $ | — | | | | | $ | 9,564 | | | | | $ | 10,575 | | | | | $ | 9,437 | | | | | $ | 29,576 | | |
2022
|
| | | | — | | | | | | 9,564 | | | | | | — | | | | | | 8,324 | | | | | | 17,888 | | |
2023
|
| | | | 59,837 | | | | | | 9,564 | | | | | | — | | | | | | 7,183 | | | | | | 76,584 | | |
2024
|
| | | | — | | | | | | 9,564 | | | | | | — | | | | | | 3,420 | | | | | | 12,984 | | |
2025
|
| | | | — | | | | | | 9,564 | | | | | | — | | | | | | 645 | | | | | | 10,209 | | |
Thereafter
|
| | | | — | | | | | | 313,225 | | | | | | — | | | | | | — | | | | | | 313,225 | | |
Total
|
| | | $ | 59,837 | | | | | $ | 361,045 | | | | | $ | 10,575 | | | | | $ | 29,008 | | | | | $ | 460,465 | | |
| | |
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
|
| | | $ | 10,386 | | |
|
Acquisitions (see Note 3)
|
| | | | 36,117 | | |
|
Payment of contingent consideration
|
| | | | (13,108) | | |
|
Accretion
|
| | | | 832 | | |
|
Change in fair value
|
| | | | 5,883 | | |
|
Foreign currency translation adjustments
|
| | | | 9 | | |
|
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
|
| | | $ | 605,095 | | | | | $ | 589,903 | | |
Renewables and Recovery Logistics
|
| | | | 68,910 | | | | | | 30,926 | | |
Total consolidated revenue
|
| | | $ | 674,005 | | | | | $ | 620,829 | | |
| | |
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
|
| | | $ | 8,867 | | | | | $ | 11,186 | | |
Renewables and Recovery Logistics
|
| | | | 12,251 | | | | | | 1,090 | | |
Corporate
|
| | | | 2,015 | | | | | | 957 | | |
Total consolidated capital expenditures
|
| | | $ | 23,133 | | | | | $ | 13,233 | | |
| | |
2020
|
| |
2019
|
| ||||||
Amortization and Depreciation: | | | | ||||||||||
Amortization and depreciation
|
| | | | | | | | | | | | |
Telecom
|
| | | $ | 42,610 | | | | | $ | 37,423 | | |
Renewables and Recovery Logistics
|
| | | | 5,259 | | | | | | 4,250 | | |
Corporate
|
| | | | 628 | | | | | | 442 | | |
Total consolidated amortization and depreciation
|
| | | $ | 48,497 | | | | | $ | 42,115 | | |
| | |
2020
|
| |
2019
|
| ||||||
EBITDA Reconciliation: | | | | ||||||||||
Telecom adjusted EBITDA
|
| | | $ | 755 | | | | | $ | 37,879 | | |
Renewables and Recovery Logistics adjusted EBITDA
|
| | | | 28,943 | | | | | | 11,442 | | |
Corporate adjusted EBITDA
|
| | | | (18,213) | | | | | | (16,635) | | |
Total adjusted EBITDA
|
| | | | 11,485 | | | | | | 32,686 | | |
Less: | | | | | | | | | | | | | |
Management fees
|
| | | | (518) | | | | | | (541) | | |
Transaction expenses
|
| | | | (988) | | | | | | (4,257) | | |
Change in fair value of contingent consideration
|
| | | | 7,081 | | | | | | (5,883) | | |
Impairment of goodwill
|
| | | | (28,802) | | | | | | (13,251) | | |
Impairment of long-lived assets
|
| | | | — | | | | | | (840) | | |
Depreciation and amortization
|
| | | | (48,497) | | | | | | (42,115) | | |
Interest expense
|
| | | | (37,848) | | | | | | (33,593) | | |
Net loss
|
| | | $ | (98,087) | | | | | $ | (67,794) | | |
| | |
2020
|
| |
2019
|
| ||||||
Revenue by Geography: | | | | ||||||||||
United States
|
| | | $ | 656,524 | | | | | $ | 599,268 | | |
Canada
|
| | | | 17,481 | | | | | | 21,561 | | |
Total
|
| | | $ | 674,005 | | | | | $ | 620,829 | | |
| | |
2020
|
| |
2019
|
| ||||||
Long-lived assets by Geography (excluding intangible assets with definite lives): | | | | ||||||||||
United States
|
| | | $ | 35,035 | | | | | $ | 19,014 | | |
Canada
|
| | | | 3,560 | | | | | | 4,851 | | |
Total
|
| | | $ | 38,595 | | | | | $ | 23,865 | | |
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of Total
|
| |
Amount
|
| |
% of Total
|
| ||||||||||||
Customers: | | | | | | ||||||||||||||||||||
AT&T
|
| | | $ | 356,026 | | | | | | 53% | | | | | $ | 318,913 | | | | | | 51% | | |
Verizon
|
| | | | 116,444 | | | | | | 17% | | | | | | 117,927 | | | | | | 19% | | |
Total
|
| | | $ | 472,470 | | | | | | 70% | | | | | $ | 436,840 | | | | | | 70% | | |
| Years ending December 31: | | | | | | | |
|
2021
|
| | | $ | 10,017 | | |
|
2022
|
| | | | 8,396 | | |
|
2023
|
| | | | 6,165 | | |
|
2024
|
| | | | 3,903 | | |
|
2025
|
| | | | 2,067 | | |
|
Thereafter
|
| | | | 7,872 | | |
| | | | | $ | 38,420 | | |
| | |
April 3, 2021
|
| |
December 31, 2020
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 183 | | | | | $ | 169 | | |
Accounts receivable, net of allowance
|
| | | | 160,378 | | | | | | 180,540 | | |
Inventories, net
|
| | | | 5,988 | | | | | | 5,793 | | |
Prepaid expenses
|
| | | | 5,555 | | | | | | 3,530 | | |
Other current assets
|
| | | | 1,383 | | | | | | 2,191 | | |
Total current assets
|
| | | | 173,487 | | | | | | 192,223 | | |
Property and equipment, net
|
| | | | 44,732 | | | | | | 37,074 | | |
Intangible assets, net
|
| | | | 359,694 | | | | | | 351,528 | | |
Goodwill
|
| | | | 66,604 | | | | | | 58,522 | | |
Other long-term assets
|
| | | | 1,890 | | | | | | 1,521 | | |
Total assets
|
| | | $ | 646,407 | | | | | $ | 640,868 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Current portion of long-term debt and capital lease obligations
|
| | | | 40,369 | | | | | $ | 28,169 | | |
Current portion of contingent consideration
|
| | | | 4,367 | | | | | | 9,968 | | |
Accounts payable
|
| | | | 52,027 | | | | | | 56,558 | | |
Accrued expenses
|
| | | | 55,932 | | | | | | 66,808 | | |
Contract liabilities
|
| | | | 11,140 | | | | | | 14,945 | | |
Total current liabilities
|
| | | | 163,835 | | | | | | 176,448 | | |
Capital lease obligations, net of current portion
|
| | | | 19,563 | | | | | | 17,752 | | |
Long-term debt, net of current portion and deferred financing fees
|
| | | | 408,541 | | | | | | 397,464 | | |
Contingent consideration, net of current portion
|
| | | | 12,189 | | | | | | 8,161 | | |
Distributions payable
|
| | | | 11,409 | | | | | | 11,409 | | |
Total liabilities
|
| | | | 615,537 | | | | | | 611,234 | | |
Commitments and contingencies (Notes 7 and 11) | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | |
Preferred units, 25,000 units authorized, issued and outstanding (liquidation preference $29,929 as of April 3, 2021)
|
| | | | 25,000 | | | | | | 25,000 | | |
Class A units, 2,165,879 and 2,005,824 units authorized, issued and outstanding as of April 3, 2021 and December 31, 2020, respectively
|
| | | | 230,637 | | | | | | 208,324 | | |
Members’ deficit
|
| | | | (225,335) | | | | | | (204,086) | | |
Accumulated other comprehensive income
|
| | | | 568 | | | | | | 396 | | |
Total equity
|
| | | | 30,870 | | | | | | 29,634 | | |
Total liabilities and equity
|
| | | $ | 646,407 | | | | | $ | 640,868 | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Revenue
|
| | | $ | 122,178 | | | | | $ | 180,308 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 107,359 | | | | | | 161,666 | | |
General and administrative
|
| | | | 12,606 | | | | | | 12,646 | | |
Transaction expenses
|
| | | | 549 | | | | | | 98 | | |
Depreciation and amortization
|
| | | | 13,115 | | | | | | 11,824 | | |
Total costs and expenses
|
| | | | 133,629 | | | | | | 186,234 | | |
Loss from operations
|
| | | | (11,451) | | | | | | (5,926) | | |
Other income (expense): | | | | | | | | | | | | | |
Gain on sale/ disposal of property and equipment
|
| | | | 190 | | | | | | 35 | | |
Interest expense
|
| | | | (9,988) | | | | | | (10,271) | | |
Total other expense
|
| | | | (9,798) | | | | | | (10,236) | | |
Net loss
|
| | | | (21,249) | | | | | | (16,162) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | 172 | | | | | | (1,112) | | |
Comprehensive loss
|
| | |
$
|
(21,077)
|
| | | | $ | (17,274) | | |
Earnings per unit: | | | | | | | | | | | | | |
Basic and diluted earnings per unit
|
| | | $ | (10.38) | | | | | $ | (8.46) | | |
Basic and diluted weighted average common units outstanding
|
| | | | 2,133,179 | | | | | | 2,005,824 | | |
| | |
Preferred Units
|
| |
Class A Units
|
| | | | | | | |
Accumulated
Other Comprehensive Income (Loss) |
| | ||||||||||||||||||||||||||
For the Three Months Ended April 3, 2021
|
| |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Members’
Deficit |
| |
Total Equity
|
| ||||||||||||||||||||||||
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
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,946 | | | | | | — | | | | | | — | | | | | | 4,946 | | |
Acquisition (see Note 3)
|
| | | | — | | | | | | — | | | | | | 10,055 | | | | | | 2,000 | | | | | | — | | | | | | — | | | | | | 2,000 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 172 | | | | | | 172 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (21,249) | | | | | | — | | | | | | (21,249) | | |
Balance, April 3, 2021
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,165,879 | | | | | $ | 230,637 | | | | | $ | (225,335) | | | | | $ | 568 | | | | | $ | 30,870 | | |
For the Three Months Ended April 4, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2020
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,005,824 | | | | | $ | 208,324 | | | | | $ | (99,323) | | | | | $ | 157 | | | | | $ | 134,158 | | |
Tax distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,759) | | | | | | — | | | | | | (6,759) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,112) | | | | | | (1,112) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,162) | | | | | | — | | | | | | (16,162) | | |
Balance, April 4, 2020
|
| | | | 25,000 | | | | | $ | 25,000 | | | | | | 2,005,824 | | | | | $ | 208,324 | | | | | $ | (122,244) | | | | | $ | (955) | | | | | $ | 110,125 | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Cash flows from operating activities:
Net loss |
| | | $ | (21,249) | | | | |
$
|
(16,162)
|
| |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | ||||||||||
Depreciation, amortization and accretion of debt discount
|
| | |
|
14,076
|
| | | | | 11,824 | | |
Amortization of debt issuance costs
|
| | |
|
779
|
| | | | | 769 | | |
Provision for bad debt expense
|
| | |
|
371
|
| | | | | 523 | | |
Gain on disposal of property and equipment
|
| | |
|
(190)
|
| | | | | (35) | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | |
|
19,894
|
| | | | | 4,135 | | |
Inventories
|
| | |
|
(194)
|
| | | |
|
414
|
| |
Prepaid expenses and other assets
|
| | |
|
(1,573)
|
| | | | | (590) | | |
Accounts payable and accrued liabilities
|
| | |
|
(15,450)
|
| | | | | (3,006) | | |
Contract liabilities
|
| | |
|
(3,806)
|
| | | | | (349) | | |
Net cash used in operating activities
|
| | |
|
(7,342)
|
| | | | | (2,477) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | |
|
(808)
|
| | | | | (965) | | |
Proceeds from sale of property and equipment
|
| | |
|
221
|
| | | | | 29 | | |
Acquisition of business (see Note 3)
|
| | |
|
(20,059)
|
| | | | | — | | |
Net cash used in investing activities
|
| | |
|
(20,646)
|
| | | | | (936) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from line of credit, net of repayments
|
| | |
|
12,688
|
| | | | | 13,045 | | |
Proceeds from convertible notes — related party
|
| | |
|
5,000
|
| | | | | — | | |
Repayment of long-term debt
|
| | |
|
(2,391)
|
| | | | | (2,391) | | |
Payments of acquisition related contingent consideration
|
| | | | — | | | | | | (3,500) | | |
Repayment of capital leases
|
| | |
|
(2,654)
|
| | | | | (1,607) | | |
Proceeds from issuance of equity
|
| | |
|
15,367
|
| | | | | — | | |
Tax distributions to members
|
| | | | — | | | | | | (1,278) | | |
Net cash provided by financing activities
|
| | |
|
28,010
|
| | | | | 4,269 | | |
Effect of foreign currency exchange rate (translation) on cash
|
| | |
|
(8)
|
| | | | | (142) | | |
Net increase in cash
|
| | |
|
14
|
| | | | | 714 | | |
Cash: | | | | | | | | | | | | | |
Beginning of period
|
| | |
|
169
|
| | | |
|
328
|
| |
End of period
|
| | | $ | 183 | | | | |
$
|
1,042
|
| |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Interest paid
|
| | |
$
|
8,187
|
| | | | $ | 9,566 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Assets acquired under capital leases
|
| | | $ | 162 | | | | |
$
|
2,180
|
| |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (21,249) | | | | | $ | (16,162) | | |
Less: accrued preferred return
|
| | | | (900) | | | | | | (815) | | |
Net loss attributable to Class A Units (basic)
|
| | |
$
|
(22,149)
|
| | | | $ | (16,977) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average number of units outstanding, basic and diluted
|
| | | | | | | | | | | | |
Class A – basic and diluted
|
| | | | 2,133,179 | | | | | | 2,005,824 | | |
EPU:
|
| | | | | | | | | | | | |
Class A – basic and diluted
|
| | | $ | (10.38) | | | | | $ | (8.46) | | |
| Purchase consideration: | | | | | | | |
|
Cash paid
|
| | | $ | 20,059 | | |
|
Rollover equity
|
| | | | 2,000 | | |
|
Contingent consideration
|
| | | | 8,200 | | |
| | | | | $ | 30,259 | | |
| Purchase price allocations: | | | | | | | |
|
Property and equipment
|
| | | $ | 9,978 | | |
|
Customer relationships
|
| | | | 17,370 | | |
|
Trademarks and trade names
|
| | | | 270 | | |
|
Goodwill
|
| | | | 8,082 | | |
| | | | | | 35,700 | | |
|
Capital lease obligations
|
| | | | (5,441) | | |
| | | | | $ | 30,259 | | |
| | |
April 3,
2021 |
| |
December 31,
2020 |
| ||||||
Office furniture
|
| | | $ | 1,286 | | | | | $ | 1,257 | | |
Computers
|
| | | | 1,363 | | | | | | 1,280 | | |
Machinery, equipment and vehicles
|
| | | | 14,603 | | | | | | 11,025 | | |
land
|
| | | | 140 | | | | | | — | | |
Leasehold improvements
|
| | | | 4,105 | | | | | | 3,643 | | |
Software
|
| | | | 2,230 | | | | | | 2,215 | | |
As sets under capital lease
|
| | | | 43,989 | | | | | | 37,688 | | |
Construction in process
|
| | | | 914 | | | | | | 605 | | |
| | | | | 68,630 | | | | | | 57,713 | | |
Less: accumulated depreciation
|
| | | | (23,898) | | | | | | (20,639) | | |
Property and equipment, net
|
| | | $ | 44,732 | | | | | $ | 37,074 | | |
| | |
April 3,
2021 |
| |
December 31,
2020 |
| ||||||
Trade accounts receivable
|
| | | $ | 37,117 | | | | | $ | 45,724 | | |
Contract assets
|
| | | | 127,982 | | | | | | 139,367 | | |
| | | | | 165,099 | | | | | | 185,091 | | |
Less: allowance for doubtful accounts
|
| | | | (4,721) | | | | | | (4,551) | | |
Accounts receivable, net
|
| | | $ | 160,378 | | | | | $ | 180,540 | | |
| | |
April 3,
2021 |
| |
December 31,
2020 |
| ||||||
Contract assets
|
| | | $ | 127,982 | | | | | $ | 139,367 | | |
Contract liabilities
|
| | | | (11,140) | | | | | | (14,945) | | |
Contract assets, net
|
| | | $ | 116,842 | | | | | $ | 124,422 | | |
| | |
April 3, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||
| | |
Amounts
|
| |
% of Total
|
| |
Amounts
|
| |
% of Total
|
| ||||||||||||
AT&T
|
| | | $ | 64,460 | | | | | | 39.0% | | | | | $ | 81,796 | | | | | | 44.2% | | |
Verizon
|
| | | | 53,465 | | | | | | 32.4% | | | | | | 65,346 | | | | | | 35.3% | | |
T-Mobile
|
| | | | 22,828 | | | | | | 13.8% | | | | | | * | | | | | | * | | |
Total
|
| | | $ | 140,753 | | | | | | 85.4% | | | | | $ | 147,142 | | | | | | 79.5% | | |
| | |
Renewables and
Recovery Logistics |
| |
Telecom
|
| |
Total
|
| |||||||||
Goodwill as of January 1, 2020
|
| | | $ | 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 | | |
Addition from acquisition
|
| | | | 8,082 | | | | | | — | | | | | | 8,082 | | |
Goodwill as of April 3, 2021
|
| | | $ | 21,680 | | | | | $ | 44,924 | | | | | $ | 66,604 | | |
| | |
April 3, 2021
|
| | | | | | | | | | |||||||||||||||||||||
| | |
Weighted
Average Remaining Useful Life |
| |
Cross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| | | | ||||||||||||||||||
Customer relationships
|
| | | | 10.3 | | | | | $ | 391,881 | | | | | $ | (75,262) | | | | | $ | 316,619 | | | | | | ||||||
Trade names
|
| | | | 9.8 | | | | | | 60,051 | | | | | | (16,976) | | | | | | 43,075 | | | | | | ||||||
| | | | | | | | | | $ | 451,932 | | | | | $ | (92,238) | | | | | $ | 359,694 | | | | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Weighted
Average Remaining Useful Life |
| |
Cross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Customer relationships
|
| | | | 10.7 | | | | | $ | 374,399 | | | | | $ | (67,392) | | | | | $ | 307,007 | | |
Trade names
|
| | | | 10.0 | | | | | | 59,759 | | | | | | (15,238) | | | | | | 44,521 | | |
| | | | | | | | | | $ | 434,158 | | | | | $ | (82,630) | | | | | $ | 351,528 | | |
| | |
April 3, 2021
|
| |
December 31,
2020 |
| ||||||
Line of credit
|
| | | $ | 72,525 | | | | | $ | 59,837 | | |
Term loan
|
| | | | 358,654 | | | | | | 361,045 | | |
Acquisition debt
|
| | | | 20,575 | | | | | | 10,575 | | |
Convertible notes – related party
|
| | | | 5,000 | | | | | | — | | |
Capital lease obligations
|
| | | | 28,777 | | | | | | 25,782 | | |
Less: unamortized financing fees
|
| | | | (13,074) | | | | | | (13,854) | | |
Less: convertible debt discount
|
| | | | (3,984) | | | | | | — | | |
| | | | | 468,473 | | | | | | 443,385 | | |
Less: current maturities of long-term debt
|
| | | | (31,155) | | | | | | (20,139) | | |
Less: current portion of capital lease obligations, net of capital lease interest
|
| | | | (9,214) | | | | | | (8,030) | | |
| | | | $ | 428,104 | | | | | $ | 415,216 | | |
| | |
Fair Value at April 3, 2021
|
| |||||||||||||||||||||
(in thousands)
|
| |
Carrying Value
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Financial liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | $ | 16,556 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,556 | | |
| | | | $ | 16,556 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,556 | | |
| | |
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, 2020
|
| | | $ | 40,119 | | |
|
Payment of contingent consideration
|
| | | | (3,500) | | |
|
Accretion
|
| | | | 499 | | |
|
April 4, 2020
|
| | | $ | 37,118 | | |
|
January 1, 2021
|
| | | | 18,129 | | |
|
Acquistion (see Note 3)
|
| | | | 8,200 | | |
|
Accretion
|
| | | | 227 | | |
|
Reclassification to acquisition debt
|
| | | | (10,000) | | |
|
April 3, 2021
|
| | | $ | 16,556 | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Revenue: | | | | ||||||||||
Telecom
|
| | | $ | 109,545 | | | | | $ | 177,159 | | |
Renewables and Recovery Logistics
|
| | | | 12,633 | | | | | | 3,149 | | |
Total consolidated revenue
|
| | | $ | 122,178 | | | | | $ | 180,308 | | |
| | |
April 3, 2021
|
| |
December 31,
2020 |
| ||||||
Total Assets: | | | | ||||||||||
Telecom
|
| | | $ | 545,592 | | | | | $ | 579,147 | | |
Renewables and Recovery Logistics
|
| | | | 92,884 | | | | | | 55,370 | | |
Corporate
|
| | | | 7,931 | | | | | | 6,351 | | |
Total consolidated assets
|
| | | $ | 646,407 | | | | | $ | 640,868 | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Capital Expenditures: | | | | ||||||||||
Telecom
|
| | | $ | 369 | | | | | $ | 2,776 | | |
Renewables and Recovery Logistics
|
| | | | 86 | | | | | | 144 | | |
Corporate
|
| | | | 515 | | | | | | 225 | | |
Total consolidated capital expenditures
|
| | | $ | 970 | | | | | $ | 3,145 | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Amortization and Depreciation: | | | | | | | | | | | | | |
Amortization and depreciation | | | | | | | | | | | | | |
Telecom
|
| | | $ | 10,314 | | | | | $ | 10,687 | | |
Renewables and Recovery Logistics
|
| | | | 2,566 | | | | | | 998 | | |
Corporate
|
| | | | 235 | | | | | | 139 | | |
Total consolidated amortization and depreciation
|
| | | $ | 13,115 | | | | | $ | 11,824 | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
EBITDA Reconciliation: | | | | ||||||||||
Telecom adjusted EBITDA
|
| | | $ | 3,951 | | | | | $ | 11,188 | | |
Renewables and Recovery Logistics adjusted EBITDA
|
| | | | 2,878 | | | | | | (254) | | |
Corporate adjusted EBITDA
|
| | | | (3,929) | | | | | | (4,778) | | |
Total adjusted EBITDA
|
| | | $ | 2,900 | | | | | $ | 6,156 | | |
Less: | | | | | | | | | | | | | |
Management fees
|
| | | | (497) | | | | | | (125) | | |
Transaction expenses
|
| | | | (549) | | | | | | (98) | | |
Depreciation and amortization
|
| | | | (13,115) | | | | | | (11,824) | | |
Interest expense
|
| | | | (9,988) | | | | | | (10,271) | | |
Net loss
|
| | | $ | (21,249) | | | | | $ | (16,162) | | |
| | |
For The Three Months Ended
|
| |||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||
Revenue by Geography: | | | | ||||||||||
United States
|
| | | $ | 119,113 | | | | | $ | 175,015 | | |
Canada
|
| | | | 3,065 | | | | | | 5,293 | | |
Total
|
| | | $ | 122,178 | | | | | $ | 180,308 | | |
| | |
April 3, 2021
|
| |
December 31,
2020 |
| | ||||||||
Long-lived Assets by Geography (excluding intangibleassets with definite lives): | | | | | ||||||||||||
United States
|
| | | $ | 43,320 | | | | | $ | 35,035 | | | | ||
Canada
|
| | | | 3,302 | | | | | | 3,560 | | | | ||
Total
|
| | | $ | 46,622 | | | | | $ | 38,595 | | | | | |
| | |
For The Three Months Ended
|
| |||||||||||||||||||||
| | |
April 3, 2021
|
| |
April 4, 2020
|
| ||||||||||||||||||
| | |
Amount
|
| |
% of Total
|
| |
Amount
|
| |
% of Total
|
| ||||||||||||
Customers: | | | | | | ||||||||||||||||||||
AT&T
|
| | | $ | 60,783 | | | | | | 50% | | | | | $ | 103,077 | | | | | | 57% | | |
Verizon
|
| | | | 17,850 | | | | | | 15% | | | | | | 37,710 | | | | | | 21% | | |
T-Mobile
|
| | | | 17,321 | | | | | | 14% | | | | | | * | | | | | | * | | |
Total
|
| | | $ | 95,954 | | | | | | 79% | | | | | $ | 140,787 | | | | | | 78% | | |
| | |
Page
|
| |||
| | | | A-6 | | | |
| | | | A-6 | | | |
| | | | A-21 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
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|
| |
| EXHIBITS | | | | |
|
Exhibit A
Form of Company A&R LLCA
|
| | | |
|
Exhibit B
Form of Tax Receivable Agreement
|
| | | |
|
Exhibit C
Form of Investor Rights Agreement
|
| | | |
|
Exhibit D
Form of Second A&R Buyer Certificate of Incorporation
|
| | | |
|
Exhibit E
Form of A&R Buyer Bylaws
|
| | | |
|
ACA
|
| |
Section 4.15(c)
|
|
|
Acquisition
|
| |
Section 7.1(b)
|
|
|
Additional Buyer Filings
|
| |
Section 8.9(f)
|
|
|
Additional Financial Information
|
| |
Section 8.9
|
|
|
Affiliated Transactions
|
| |
Section 4.19
|
|
|
Agreement
|
| |
Introduction
|
|
|
AIV Distributions
|
| |
Recitals
|
|
|
Antitrust Laws
|
| |
Section 8.8(c)
|
|
|
Attorney-Client Communications
|
| |
Section 13.16(b)
|
|
|
Audited Financial Statements
|
| |
Section 4.4(a)(i)
|
|
|
Authorized Action
|
| |
Section 14.1(b)
|
|
|
BCP NEA
|
| |
Recitals
|
|
|
BCP Note
|
| |
Recitals
|
|
|
BCP Note Amount
|
| |
Recitals
|
|
|
BCP Note Exchange
|
| |
Recitals
|
|
|
BCP QualTek
|
| |
Recitals
|
|
|
BCP QualTek Distributions
|
| |
Recitals
|
|
|
BCP QualTek II
|
| |
Recitals
|
|
|
Blocker
|
| |
Introduction
|
|
|
Blocker Affiliated Transactions
|
| |
Section 5.9
|
|
|
Blocker Bring-Down Certificate
|
| |
Section 11.2(d)
|
|
|
Blocker Certificate of Merger
|
| |
Section 2.2(b)
|
|
|
Blocker Effective Time
|
| |
Section 2.2(b)
|
|
|
Blocker Merger
|
| |
Recitals
|
|
|
Blocker Merger Closing
|
| |
Section 2.2(a)
|
|
|
Blocker Merger Sub
|
| |
Introduction
|
|
|
Blocker Owned AIV Partnership Equity Interests
|
| |
Section 5.4(b)
|
|
|
Blocker Voting and Support Agreement
|
| |
Recitals
|
|
|
Buyer
|
| |
Introduction
|
|
|
Buyer Balance Sheet
|
| |
Section 6.11(c)
|
|
|
Buyer Bring-Down Certificate
|
| |
Section 11.3(d)
|
|
|
Buyer Certificate of Merger
|
| |
Section 2.2(c)
|
|
|
Buyer Contribution Amount
|
| |
Section 3.2(c)(i)
|
|
|
Buyer Effective Time
|
| |
Section 2.2(c)
|
|
|
Buyer Merger
|
| |
Recitals
|
|
|
Buyer Merger Closing
|
| |
Section 2.2(a)
|
|
|
Buyer Parties
|
| |
Introduction
|
|
|
Buyer Public Securities
|
| |
Section 6.9
|
|
|
Buyer SEC Documents
|
| |
Section 6.8(a)
|
|
|
Buyer Voting and Support Agreement
|
| |
Recitals, Recitals
|
|
|
Buyer Warrants
|
| |
Section 6.3(a)
|
|
|
Cancelled Equity Interests
|
| |
Section 3.1(d)
|
|
|
CBA
|
| |
Section 4.9(a)(i)
|
|
|
Certificates of Merger
|
| |
Section 2.2(d)
|
|
|
Closing
|
| |
Section 2.2(a)
|
|
|
closing agreement
|
| |
Section 4.8(g)
|
|
|
Closing Date
|
| |
Section 2.2(a)
|
|
|
Closing Form 8-K
|
| |
Section 8.9(g)
|
|
|
Closing Press Release
|
| |
Section 8.9(g)
|
|
|
Company
|
| |
Introduction
|
|
|
Company A&R LLCA
|
| |
Recitals
|
|
|
Company Bring-Down Certificate
|
| |
Section 11.2(d)
|
|
|
Company Certificate of Merger
|
| |
Section 2.2(d)
|
|
|
Company Effective Time
|
| |
Section 2.2(d)
|
|
|
Company Merger
|
| |
Recitals
|
|
|
Company Merger Closing
|
| |
Section 2.2(a)
|
|
|
Company Merger Sub
|
| |
Introduction
|
|
|
Company Voting and Support Agreement
|
| |
Recitals
|
|
|
Competing Buyer
|
| |
Section 8.16(a)
|
|
|
Contribution Common Units
|
| |
Section 3.2(c)(i)
|
|
|
D&O Provisions
|
| |
Section 8.12(a)
|
|
|
DGCL
|
| |
Recitals
|
|
|
DLLCA
|
| |
Recitals
|
|
|
Earnout Notice
|
| |
Section 3.7(b)(ii)
|
|
|
Earnout Period
|
| |
Section 3.7(c)(i)
|
|
|
Earnout Restrictions
|
| |
Section 3.7(b)(iv)
|
|
|
Effective Date
|
| |
Introduction
|
|
|
Environmental Permits
|
| |
Section 4.18
|
|
|
Equityholder Representative
|
| |
Introduction
|
|
|
Equityholders Prepared Returns
|
| |
Section 10.1(a)
|
|
|
Financial Statements
|
| |
Section 4.4(a)
|
|
|
Founder Shares Agreement
|
| |
Recitals
|
|
|
Indemnified Persons
|
| |
Section 8.12(a)
|
|
|
Initial Financial Information
|
| |
Section 8.9(h)
|
|
|
Insurance Policies
|
| |
Section 4.16
|
|
|
Intended Tax Treatment
|
| |
Section 10.1(d)
|
|
|
Internal Controls
|
| |
Section 4.4(c)
|
|
|
Investor Rights Agreement
|
| |
Recitals
|
|
|
IRS
|
| |
Section 4.15(a)
|
|
|
JOBS Act
|
| |
Section 8.3(b)
|
|
|
Kirkland
|
| |
Section 13.16(a)
|
|
|
LLCA Amendment and Restatement
|
| |
Section 3.1(e)
|
|
|
Material Contract
|
| |
Section 4.9(b)
|
|
|
Material Customer
|
| |
Section 4.9(c)
|
|
|
Material Leases
|
| |
Section 4.7(b)
|
|
|
Material Supplier
|
| |
Section 4.9(d)
|
|
|
Mergers
|
| |
Recitals
|
|
|
Non-Party Affiliate
|
| |
Section 13.14
|
|
|
NPAs
|
| |
Recitals
|
|
|
Outside Date
|
| |
Section 12.1(c)
|
|
|
Other Pre-PIPE Securities
|
| |
Recitals
|
|
|
Parties
|
| |
Introduction
|
|
|
Party
|
| |
Introduction
|
|
|
PCAOB Financial Statements
|
| |
Section 8.9(h)
|
|
|
Permits
|
| |
Section 4.17(b)
|
|
|
PIPE Investment
|
| |
Recitals
|
|
|
PIPE Investors
|
| |
Recitals
|
|
|
Pre-Closing Period
|
| |
Section 7.1
|
|
|
Pre-Closing Reorganization
|
| |
Recitals
|
|
|
Pre-PIPE Investment
|
| |
Recitals
|
|
|
Pre-PIPE Investors
|
| |
Recitals
|
|
|
Pre-PIPE Notes
|
| |
Recitals
|
|
|
Pre-PIPE Registration Rights Agreements
|
| |
Recitals
|
|
|
Registration Rights Agreements
|
| |
Recitals
|
|
|
Signing Form 8-K
|
| |
Section 8.9(b)
|
|
|
Signing Press Release
|
| |
Section 8.9(b)
|
|
|
Subscription Agreements
|
| |
Recitals
|
|
|
Surviving Blocker
|
| |
Section 2.1(a)
|
|
|
Surviving Blocker Interests
|
| |
Section 3.1(a)(i)
|
|
|
Surviving Buyer
|
| |
Section 2.1(b)
|
|
|
Surviving Company
|
| |
Section 2.1(c)
|
|
|
Tail Policy
|
| |
Section 8.12(b)(ii)
|
|
|
Tax Contest
|
| |
Section 10.1(f)
|
|
|
Tax Positions
|
| |
Section 10.1(e)
|
|
|
Tax Receivable Agreement
|
| |
Recitals
|
|
|
Triggering Event
|
| |
Section 3.7(c)
|
|
|
Trust Amount
|
| |
Section 6.7
|
|
|
Trust Distributions
|
| |
Section 13.9
|
|
|
Unaudited Balance Sheet
|
| |
Section 4.4(a)(ii)
|
|
|
Unaudited Financial Statements
|
| |
Section 4.4(a)(ii)
|
|
|
Warrant Accounting Issue
|
| |
Section 6.3(d)
|
|
|
Notices to Equityholder Representative, the Blocker and the Company:
BCP QualTek Holdco, LLC 475 Sentry Parkway E Blue Bell, PA 19422 Attention: Scott Hisey E-mail:
and
BCP QualTek, LLC
650 5th Avenue New York, New York 10019 Attention: Andrew Weinberg Matthew Allard E-mail: |
| |
with copies to (which shall not constitute notice):
Kirkland & Ellis LLP
601 Lexington Avenue New York, New York 10022 Attention: Michael E. Weisser, P.C. Matthew S. Arenson, P.C. Timothy Cruickshank, P.C. Erika P. López E-mail: |
|
| | | | ROTH CH ACQUISITION III CO. | |
| | | |
By:
|
|
| | | | Name: | |
| | | | Title: | |
| | |
Page
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| | | | F-33 | | | |
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| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-40 | | | |
| | | | F-40 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-42 | | | |
| | | | F-42 | | | |
| | | | F-42 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | F-43 | | | |
| | | | F-43 | | | |
| | | | F-43 | | | |
| | | | F-43 | | | |
| | | | F-44 | | | |
| | | | F-44 | | | |
| | | | F-44 | | | |
| | | | F-45 | | | |
| | | | F-45 | | | |
| | | | F-45 | | | |
| | | | F-45 | | | |
| | | | F-45 | | | |
| | | | F-46 | | |
| | |
Page
|
|
Exhibits | | | | |
Exhibit A: Capitalization
|
| | | |
Exhibit B: Exchange Notice
|
| | | |
Exhibit C: Officers
|
| | | |
Exhibit D: Joinder
|
| | | |
|
Legal Name of Unitholder:
|
|
|
Address:
|
|
|
Number of Common Units to be Exchanged:
|
|
|
Cash Exchange Payment instructions:
|
|
| | | |
Legal Name for Certificate Delivery:
|
|
| | | |
Address for Certificate Delivery:
|
|
| | | | [Unitholder] | |
| | | |
By:
|
|
| | | |
Name:
|
|
| | | |
Title:
|
|
| | | | [TRANSFEROR] | |
| | | |
By:
|
|
| | | |
Name:
|
|
| | | |
Title:
|
|
| | | | [TRANSFEREE] | |
| | | |
By:
|
|
| | | |
Name:
|
|
| | | |
Title:
|
|
| | | | Address for notices: | |
| | |
Page
|
| | | | |||
| | | | G-2 | | | | |||
| | | | G-2 | | | | |||
| | | | G-8 | | | | |||
| | | | G-8 | | | | |||
| | | | G-8 | | | | |||
| | | | G-9 | | | | |||
| | | | G-9 | | | | |||
| | | | G-10 | | | | |||
| | | | G-11 | | | | |||
| | | | G-11 | | | | |||
| | | | G-13 | | | | |||
| | | | G-13 | | | | |||
| | | | G-14 | | | | |||
| | | | G-14 | | | | |||
| | | | G-15 | | | | |||
| | | | G-15 | | | | |||
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| | | | G-23 | | | | |||
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| | | | G-24 | | | | |||
| | | | G-25 | | | | |||
| | | | G-25 | | | |
By: |
|
By: |
|
Common Stock Beneficially Owned by the Sellers
as a Percentage of the Common Stock Beneficially Owned by the Sellers on the Closing Date |
| |
Number of
Seller Directors |
| |||
70% or greater
|
| | | | 7 | | |
60% or greater, but less than 70%
|
| | | | 6 | | |
50% or greater, but less than 60%
|
| | | | 5 | | |
40% or greater, but less than 50%
|
| | | | 4 | | |
30% or greater, but less than 40%
|
| | | | 3 | | |
20% or greater, but less than 30%
|
| | | | 2 | | |
Greater than 10%, but less than 20%
|
| | | | 1 | | |