{"id":492376,"date":"2021-05-12T16:08:39","date_gmt":"2021-05-12T20:08:39","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/kldiscovery-inc-announces-first-quarter-2021-financial-results\/"},"modified":"2021-05-12T16:08:39","modified_gmt":"2021-05-12T20:08:39","slug":"kldiscovery-inc-announces-first-quarter-2021-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/kldiscovery-inc-announces-first-quarter-2021-financial-results\/","title":{"rendered":"KLDiscovery Inc. Announces First Quarter 2021 Financial Results"},"content":{"rendered":"

<\/p>\n

KLDiscovery Inc. Announces First Quarter 2021 Financial Results<\/b><\/p>\n

\nCompany Continues Transformation of Comprehensive Platform\n<\/p>\n

MCLEAN, Va.–(BUSINESS WIRE<\/a>)–
\nKLDiscovery Inc. (\u201cKLDiscovery\u201d or the \u201cCompany\u201d), a leading global provider of electronic discovery, information governance and data recovery services, announced today that revenue for the first quarter ended March 31, 2021 was $75.5 million versus $78.3 million in the first quarter of 2020, a decrease of 3.6%. Net loss for the first quarter of 2021 was $14.9 million compared to $12.5 million in the first quarter of 2020, a change of 18.6%.\n<\/p>\n

\nEBITDA for the first quarter of 2021 was $15.1 million versus $12.5 million in the first quarter of 2020, an increase of 20.9%. Adjusted EBITDA (which excludes management fees and stock-based compensation, change in fair value of warrants, acquisition financing and transaction costs and other items as described below) for the first quarter of 2021 was $15.4 million compared to $15.0 million in the first quarter of 2020, an increase of 2.4%. Reconciliations of EBITDA and Adjusted EBITDA to their comparable GAAP measure are shown in detail below, along with definitions for those terms.\n<\/p>\n

\n\u201cOur first quarter 2021 results are approaching, and in some cases exceeding, our pre-pandemic levels achieved in the first quarter of 2020. This is truly a testament to the hard work of the global KLD team,\u201d said Christopher Weiler, CEO of KLDiscovery Inc. \u201cRevenue increased for the third consecutive quarter. In the fourth quarter of 2020, we recorded our lowest quarterly net loss in four years of $9.8 million. In the first quarter, 2021 our net loss was $14.9 million which included the negative impact of a $7.2 million charge in connection with the extinguishment of debt. This refinancing activity had the positive effect of lowering our amortization payments from $17 million to $3 million annually. Our $15.1 million EBITDA in the first quarter of 2021 was our best-ever. Both first quarter EBITDA and Adjusted EBITDA improved in the first quarter of 2021 compared to the first quarter of 2020 and increased as a percentage of revenue as well. We ended the first quarter of 2021 with $47.8 million in cash and cash equivalents and nothing drawn on our $40 million revolving credit facility. This is a $26.2 million improvement in cash and cash equivalents over the first quarter of 2020. We improved cash flow from operations by 76.5% compared to the first quarter of 2020 due to continued high cash receipts and cost reductions.\u201d\n<\/p>\n

\nMr. Weiler continued, \u201cWe have an enormous amount of momentum and steadfast commitment from the entire global team at KLD to transform the company\u2019s already successful product and service offering. I am pleased with the significant progress we are making by incorporating input from our clients and prospects to further improve our full suite of proprietary software\/hardware products and services. We are well on our way in executing our strategic plan to make KLD\u2019s technology platform, including the Nebula Ecosystem, accessible wherever, and however, the client desires. We are actively pursuing the expansion of our total addressable market beyond eDiscovery and data recovery needs of our customers by continuing to build upon, and capitalize on, the powerful combination of our unparalleled technology and commitment to customer service.\u201d\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Year 2019-2021 Quarterly Results – Unaudited<\/td>\n<\/tr>\n
\n\n\n

\n2020 (unaudited)\n<\/p>\n<\/td>\n

\n\n

\n2021 (unaudited)\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n

\nQ1\n<\/p>\n<\/td>\n

\n

\nQ2\n<\/p>\n<\/td>\n

\n

\nQ3\n<\/p>\n<\/td>\n

\n

\nQ4\n<\/p>\n<\/td>\n

\n\n

\nQ1\n<\/p>\n<\/td>\n<\/tr>\n

Revenue<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n78.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n64.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n72.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n74.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n75.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

Net loss<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(12.5\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(14.9\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(12.7\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(9.8\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(14.9\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Net loss per share (basic and diluted)<\/td>\n\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.29\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.35\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.30\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.23\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.35\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n<\/tr>\n

Weighted average outstanding shares (basic and diluted)<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
EBITDA<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n12.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n10.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n12.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n14.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n15.1\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

Adjusted EBITDA<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n15.0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n12.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n16.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n19.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n15.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

(in millions except per share data)<\/i><\/td>\n\n\n\n\n\n\n<\/tr>\n<\/table>\n

2021 Outlook<\/b><\/p>\n

\nAs previously announced, KLDiscovery is currently limited in its ability to accurately predict what the financial impact will be from the COVID-19 pandemic. KLDiscovery is not providing full-year 2021 guidance until it gains additional data points about the total operational impact of this global pandemic.\n<\/p>\n

Earnings Conference Call<\/b><\/p>\n

\nManagement will conduct a conference call at 8:30 AM ET on Thursday, May 13, 2021 to discuss results for the first quarter of 2021. The audio portion of the conference call will be broadcast live over the Internet in the Investors section of KLDiscovery’s website https:\/\/investors.kldiscovery.com<\/a>.\n<\/p>\n

\nTo join the conference call by telephone, please register via the following link: http:\/\/www.directeventreg.com\/registration\/event\/1096198<\/a><\/p>\n

\nOnce registered, you will receive an email with Direct Entry and Registrant ID along with dial-in details. An audio recording of the conference call will be available for replay shortly after the call’s completion and will remain available for two weeks following the call. To access the recorded conference call, please dial (800) 585-8367 (from the U.S. and Canada) or (416) 621-4642 (from all other countries) using access code 1096198 or visit the Investors section of the KLDiscovery website at https:\/\/investors.kldiscovery.com<\/a>.\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
KLDiscovery Inc.<\/td>\n<\/tr>\n
Consolidated Statements of Comprehensive Loss<\/td>\n<\/tr>\n
(in thousands, except share and per share amounts)<\/td>\n<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
\n\n\n

Three Months Ended March 31,<\/b><\/p>\n<\/td>\n

<\/tr>\n
\n\n\n

2021<\/b><\/p>\n<\/td>\n

\n\n

2020<\/b><\/p>\n<\/td>\n

<\/tr>\n
\n\n\n

\n(unaudited)\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Revenues<\/td>\n\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n75,450\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n78,271\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Cost of revenues<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n37,422\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n39,520\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Gross profit<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n38,028\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n38,751\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Operating expenses<\/td>\n\n\n\n\n<\/tr>\n
General and administrative<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n15,440\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n15,853\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Research and development<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n2,171\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n1,667\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Sales and marketing<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n9,457\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n11,645\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Depreciation and amortization<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n7,641\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n8,916\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Total operating expenses<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n34,709\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n38,081\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Income from operations<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n3,319\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n670\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Other expenses<\/td>\n\n\n\n\n<\/tr>\n
Other expense<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n14\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n28\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Change in fair value of warrants<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(1,969\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n–\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Interest expense<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n12,257\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n12,962\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Loss on debt extinguishment<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n7,257\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n–\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
Loss before income taxes<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(14,240\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(12,320\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

<\/tr>\n
Income tax provision<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n616\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n206\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Net loss<\/td>\n\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(14,856\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(12,526\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Other comprehensive loss, net of tax<\/td>\n\n\n\n\n<\/tr>\n
Foreign currency translation<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(2,462\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(4,428\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

<\/tr>\n
Total other comprehensive loss, net of tax<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(2,462\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(4,428\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

<\/tr>\n
Comprehensive loss<\/td>\n\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(17,318\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(16,954\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Net loss per share – basic and diluted<\/td>\n\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.35\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.29\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

<\/tr>\n
\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
Weighted average shares outstanding – basic and diluted<\/td>\n\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42,532,915\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n42,529,017\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

<\/tr>\n<\/table>\n