KonaTel Reports Fiscal Year 2021 Results
KonaTel, Inc. (OTCQB: KTEL) reported a 37.1% revenue increase to $12.8 million for the fiscal year 2021, with a gross profit of $5.7 million, reflecting a 44.6% gross profit margin. The company achieved a GAAP net income of $623,000, or $0.01 per share, contrasting with a loss in the previous year. Notable growth was seen in Mobile Services, which surged 74.6%. Anticipating reduced amortization expenses and leveraging cash flow, KonaTel aims for continued profitability and potential Nasdaq uplisting.
- 37.1% revenue growth to $12.8 million in 2021.
- Gross profit increased 62.1% to $5.7 million.
- GAAP net income of $623,000 compared to a net loss the previous year.
- Non-GAAP net income rose 153.2% to $2.1 million.
- Operating income improved to $638,000 from a loss.
- Successful growth in Mobile Services segment, up 74.6%.
- Operating expenses increased 30.7% to $5.1 million.
- Still dependent on internal cash flow despite growth.
Revenue Increases
DALLAS, April 18, 2022 /PRNewswire/ -- KonaTel, Inc. (OTCQB: KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for the 12-month period ended December 31, 2021.
Full Year 2021 Financial Summary
- Revenues of
$12.8 million , up37.1% compared to the prior year. - Gross profit of
$5.7 million , or44.6% of revenues, compared to$3.5 million , or37.8% of revenues in the prior year, up62.1% on a dollar basis. - Operating income of
$638,000 compared to an operating loss of$(360,000) in the prior year. - GAAP net income of
$623,000 , or$0.01 per diluted share, compared to$239,000 , or$0.01 per diluted share, in the prior year. - Non-GAAP net income of
$2.1 million , or$0.05 per diluted share, compared to$814,000 , or$0.02 per diluted share, in the prior year.
Fourth Quarter 2021 Financial Summary
- Revenue of
$3.9 million , up49.6% compared to prior year quarter - GAAP net income of
$195,000 , or$0.01 per diluted share, compared to a net loss of$(24,000) , or ($0.01) per diluted share, in the prior year quarter. - Non-GAAP net income
$635,000 , or$0.02 per diluted share, compared to$138,000 , or less than$0.01 per diluted share, in the prior year quarter.
Business Highlights
- Accelerating sustainable and profitable recurring revenue growth, with the addition of new and enhanced services.
- Except for an FCC license, all intangible assets are fully amortized as of December 31, 2021, eliminating amortization expense going forward. Full-year 2021 amortization expense was approximately
$850,000 . - Chuck Griffin, veteran Telecom executive, appointed President and Chief Operating Officer of KonaTel.
- Jason Welch, veteran Telecom executive, appointed President of the wholly-owned subsidiary IM Telecom d/b/a Infiniti Mobile.
- Todd Murcer, veteran Telecom finance executive, appointed EVP of Finance and Corporate Secretary.
Chuck Griffin, President and COO of KonaTel, commented, "After nearly two years following our initial license submission, IM Telecom was unanimously approved by the California Public Utilities Commission in June 2021 to distribute wireless government subsidized Lifeline service to low-income families in California. The last national reseller wireless carrier to be approved was in 2017."
Sean McEwen, Chairman and CEO of KonaTel stated, "We grew our revenues, supported by internal cash flow, by
McEwen added, "Looking ahead, we expect our bottom-line earnings to benefit from reduced amortization expense beginning in the first quarter of 2022 since the majority of our intangible assets, about
Mr. Joshua Ploude, CEO of Apeiron Systems, a wholly-owned subsidiary of KonaTel, "Business communications is a substantially growing market that is evolving with workplace dynamics, the expansion of cloud-based solutions and rapidly increasing numbers of connected devices and volumes of data. In our Hosted Services segment, we are growing our network connectivity options using new 5G capabilities with our wireless network partners and launching new interfaces to our real-time communications voice and messaging suite. We continue enhancement of our existing IP product suite with the addition of new features that better leverage our cloud native infrastructure, necessary to capture a larger market share."
McEwen concluded, "As our current growth continues, we will explore additional accretive acquisition opportunities and anticipate qualifying for a Nasdaq up list this year. Furthermore, our diversified and profitable recurring revenue portfolio of Hosted Services and Mobile Service provides a defense against economic downturn. Considering current investor sentiment, we believe predictable and profitable growth is more important than revenue growth alone. Lastly, the addition of new members to our management team in the first quarter of 2022, including Chuck Griffin President/COO of KonaTel, Jason Welch President of IM Telecom and Todd Murcer EVP of Finance, who have all worked together previously, bring significant telecom management and M&A experience."
Full Year Financial Detail (2021 vs. 2020)
Revenues increased
Gross profit was
Total operating expenses were
Net income was
Non-GAAP Net income was up
Quarterly Financial Summary (Q4 2021 vs. Q4 2020)
Revenue of
Gross profit was
Net income was
Non-GAAP Net income was
Balance Sheet
The Company ended the year with
About KonaTel
KonaTel provides a variety of retail and wholesale telecommunications services including mobile voice/text/data service supported by national U.S. mobile networks, mobile numbers, SMS/MMS services, IoT mobile data service, and a range of hosted cloud services. KonaTel's subsidiary, Apeiron Systems (www.apeiron.io), is a global cloud communications service provider employing a dynamic "as a service" (CPaaS/UCaaS/CCaaS/PaaS) platform. Apeiron provides voice, messaging, SD-WAN, and platform services using its national cloud network. All Apeiron's services can be accessed through legacy interfaces and rich communications APIs. KonaTel's other subsidiary, Infiniti Mobile (www.infinitimobile.com), is an FCC authorized wireless Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, authorized to provide government subsidized cellular service to low-income American families. KonaTel is headquartered in Plano, Texas.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of the disclosures contained in the filings of KonaTel and its "forward-looking statements" in such filings that are contained in the EDGAR Archives of the SEC at www.sec.gov.
-- Tables Follow –
KonaTel, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 932,785 | $ | 715,195 | ||||
Accounts Receivable, net | 1,274,687 | 434,801 | ||||||
Inventory, Net | 566,839 | 17,786 | ||||||
Prepaid Expenses | 79,467 | 2,365 | ||||||
Other Current Asset | 164 | 194 | ||||||
Total Current Assets | 2,853,942 | 1,170,341 | ||||||
Property and Equipment, Net | 48,887 | 79,571 | ||||||
Other Assets | ||||||||
Intangible Assets, Net | 807,775 | 1,517,163 | ||||||
Other Assets | 154,297 | 172,065 | ||||||
Investments | 10,000 | — | ||||||
Total Other Assets | 972,072 | 1,689,228 | ||||||
Total Assets | $ | 3,874,901 | $ | 2,939,140 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Accounts Payable and Accrued Expenses | $ | 930,449 | $ | 1,042,567 | ||||
Note Payable - current portion | — | 94,339 | ||||||
Right of Use Operating Lease Obligation - current | 50,672 | 66,323 | ||||||
Deferred Revenue | — | 37,677 | ||||||
Total Current Liabilities | 981,121 | 1,240,906 | ||||||
Long Term Liabilities | ||||||||
Right of Use Operating Lease Obligation - long term | 136,445 | 15,399 | ||||||
Note Payable - long term | 150,000 | 150,000 | ||||||
Total Long Term Liabilities | 286,445 | 165,399 | ||||||
Total Liabilities | $ | 1,267,566 | $ | 1,406,305 | ||||
Commitments and contingencies - Footnote 8 | ||||||||
Stockholders' Equity | ||||||||
Common stock, $.001 par value, 50,000,000 shares authorized, 41,615,406 | 41,615 | 40,692 | ||||||
Additional Paid In Capital | 7,911,224 | 7,460,632 | ||||||
Accumulated Deficit | (5,345,504) | (5,968,489) | ||||||
Total Stockholders' Equity | 2,607,335 | 1,532,835 | ||||||
Total Liabilities and Stockholders' Equity | $ | 3,874,901 | $ | 2,939,140 | ||||
KonaTel, Inc. | ||||||||
Consolidated Statements of Operations | ||||||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 12,834,844 | $ | 9,358,999 | ||||
Cost of Revenue | 7,105,464 | 5,823,552 | ||||||
Gross Profit | 5,729,380 | 3,535,447 | ||||||
Operating Expenses | ||||||||
Payroll and Related Expenses | 2,702,495 | 2,117,713 | ||||||
Professional and Other Expenses | 965,671 | 553,940 | ||||||
Bad Debt | 31,318 | 2,313 | ||||||
Utilities and Facilities | 146,254 | 129,396 | ||||||
Depreciation and Amortization | 833,016 | 848,865 | ||||||
General and Administrative | 157,344 | 117,570 | ||||||
Marketing and Advertising | 89,678 | 15,840 | ||||||
Taxes and Insurance | 165,257 | 109,829 | ||||||
Total Operating Expenses | 5,091,033 | 3,895,466 | ||||||
Operating Income/(Loss) | $ | 638,347 | $ | (360,019) | ||||
Other Income and Expense | ||||||||
Other Income | — | 625,591 | ||||||
Interest Expense | (15,361) | (26,954) | ||||||
Other Expenses | — | — | ||||||
Total Other Income and Expenses | (15,361) | 598,637 | ||||||
Net Income | 622,986 | 238,618 | ||||||
Earnings per Share | ||||||||
Basic | $ | 0.02 | $ | 0.01 | ||||
Diluted | $ | 0.01 | $ | 0.01 | ||||
Weighted Average Outstanding Shares | ||||||||
Basic | 40,909,085 | 40,692,286 | ||||||
Diluted | 42,891,011 | 44,092,286 | ||||||
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SOURCE KonaTel, Inc.
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