ACCESS Newswire
16 May 2022, 16:43 GMT+10
Reported Revenues Increased $51.9 Million to $163.0 Million
Reported Gross Margin Increased $4.9 Million to $6.5 Million
Executing Consistently on Leading Edge 5G and Electric Vehicle Charging Infrastructure Strategy in Key Markets, Benefiting from Diversified Revenue Streams
NEW YORK, NY / ACCESSWIRE / May 16, 2022 / Charge Enterprises, Inc. (Nasdaq:CRGE) ('Charge' or the 'Company'), consisting of a portfolio of global businesses with the vision of connecting people everywhere with communications and electric vehicle ('EV') charging infrastructure, today reported its financial results for the three-month period ended March 31, 2022.
Andrew Fox, Founder, Chairman and Chief Executive Officer of Charge, commented, 'Our strategy is to leverage our existing businesses and invest in the high growth areas of EV charging and 5G infrastructure to drive sustainable revenue expansion that will benefit all stakeholders.
'In keeping with our strategy, we are proud to continue to be working with numerous individual dealers and dealer groups on planning and meeting the automotive OEM driven timelines and infrastructure needs, including the highly respected Berkshire Hathaway Automotive Group which has selected Charge as its preferred installation partner.'
Mr. Fox added, 'There are significant investments being made by the public and private sectors in the 5G broadband infrastructure space. During the quarter, our Infrastructure business, which includes technology upgrades for private long-term evolution (LTE) networks, proprietary software inside our network operation center (NOC) for monitoring, tower upgrades, distributed antenna systems, and electrical infrastructure, continued to harness growing demand and capitalize on opportunities. Our goal is to be the trusted global infrastructure provider and capture market share in the expansive EV charging and 5G broadband space. Our progress to date confirms our optimism of a robust pipeline and our ability to capture new customers and revenues in the future.'
First Quarter 2022 Results - Selected Financial Information
Reported revenues increased $51.9 million to $163.0 million, and proforma revenues increased $37.7 million to
$163.2 million, compared with the first quarter of 2021, driven by increased revenues on a reported and proforma basis in both of the Company's business segments.
Reported gross margin increased $4.9 million to $6.5 million, and proforma gross margin increased $1.6 million to $6.6 million, compared with the first quarter of 2021. The increase in reported and proforma gross margin was primarily driven by higher revenues and margin expansion in the Infrastructure business segment, partially offset by lower gross margin in the Telecommunications business segment.
Reported net loss was $13.1 million, compared with a net loss of $1.6 million, and proforma net loss was $13.1 million, compared with a net loss of $1.0 million in the first quarter of 2021. On a reported basis the expenses after gross margin are related to the investments the Company is making in its people, the largest of which are as follows:
As of March 31, 2022, Charge held $50.1 million in cash, cash equivalents and marketable securities.
Charge's CFO Leah Schweller commented, 'Our strategy over the last 18 months of acquiring profitable businesses has allowed us to invest in the high growth areas of 5G and EV charging installation within our Infrastructure segment, as well as our corporate structure to support our public company status and recent uplist to the Nasdaq Global Market.'
Charge continues to execute on its acquisition strategy. Reported results include: TransWorld Enterprises, Inc., acquired on May 8, 2020; GetCharged, Inc., acquired on October 12, 2020; PTGI International Carrier Services, Inc. ('PTGI') acquired on October 31, 2020; ANS acquired on May 21, 2021; BW acquired on December 27, 2021; and EV Depot acquired on January 14, 2022. Due to the timing of certain acquisitions, current quarter results, are not comparable to the year-ago periods.
Proforma results include: the full three-month period for all operations, including acquisitions, for 2021 and 2022 as if they happened on the first day of the respective period. Management believes that presenting pro forma results is important to understanding the Company's financial performance and provides better analysis of trends in the Company's underlying businesses as it allows for comparability to prior period results.
For further details of the financials, please see Charge Enterprises' Form 10-Q dated May 16, 2022, filed with the Securities and Exchange Commission and available on Charge's website Charge | SEC Filings. Financial statements prior to December 31, 2021 were filed with the OTC Markets.
Focused on Strategic Execution
Charge possesses a large, unique market opportunity to develop and deploy infrastructure to address the electrical infrastructure requirements of today and meet the demands of tomorrow. Strong momentum in the current investment and economic environment is driving both demand and investment in Charge's total addressable EV charging / 5G Infrastructure market, totaling $224 billion[1], from private, enterprise, and public sectors, including $72.5 billion from the Bipartisan Infrastructure Deal earmarked for EV charging, including a national network of 500,000 EV charging stations, and significant additional investment in the private sector, by 2028.
Charge is continuing to execute its strategy to integrate high-quality assets with growing recurring revenue streams across its core competencies of building infrastructure for 5G wireless networks and EV charging ecosystem solutions:
Telecommunications
Infrastructure
Charge will continue to invest in talent with world class industry experience at both the divisional and corporate levels to drive future growth.
Berkshire Hathaway Automotive
Berkshire Hathaway Automotive is one of the largest dealership groups in America, with over 100 franchises in 10 states, including Arizona, California, Florida, Georgia, Illinois, Indiana, Missouri, Nebraska, New Mexico and Texas.2
2Berkshirehathawayautomotive.com
About Charge Enterprises, Inc.
Telecommunications
Our Telecommunications business ('Telecommunications') has provided routing of both voice and data to Carriers and Mobile Network Operators ('MNOs') globally for over two decades and we will selectively add profitable products and services to this long-established business.
Infrastructure
Our Infrastructure business ('Infrastructure') has a primary focus on two fast growing sectors: electric vehicle ('EV') charging, and Telecommunications Network 5G, including cell tower, small cell, and in-building applications. Solutions for these two sectors include: Design and Engineering, Equipment Specification and Sourcing, Installation, Data and Software Solutions, and Service and Maintenance.
To learn more about Charge, visit Charge Enterprises, Inc.
Notice Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current expectations or beliefs regarding future events or Charge's future performance. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'continues', 'forecasts', 'projects', 'predicts', 'intends', 'anticipates', 'targets' or 'believes', or variations of, or the negatives of, such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'should', 'might' or 'will' be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement.
Although Charge believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include the business plans and strategies of Charge, Charge's future business development, market acceptance of electric vehicles, Charge's ability to generate profits and positive cash flow, changes in government regulations and government incentives, subsidies, or other favorable government policies, and other risks discussed in Charge's filings with the U.S. Securities and Exchange Commission ('SEC'). Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release or as of the date or dates specified in such statements. For more information on us, investors are encouraged to review our public filings with the SEC which are available on the SEC's website at www.sec.gov. Charge disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Media Contacts:
Steve Keyes (248) 952-7022
[email protected]
Investor Relations:
Christine Cannella (954) 298-6518
[email protected]|
Carolyn Capaccio, CFA (212) 838-3777
[1] The White House | President Biden Announces Support for the Bipartisan Infrastructure Framework
The White House | Remarks of President Joe Biden - State of the Union Address As Prepared for Delivery
CHARGE ENTERPRISES, INC.
CONSOLIDATED RESULTS OF OPERATIONS
CHARGE ENTERPRISES, INC.
SEGMENT RESULTS OF OPERATIONS
Telecommuinications
Infrastructure
Non-Operating Corporate
CHARGE ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
CHARGE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
CHARGE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
SOURCE: Charge Enterprises Inc.
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