ConnectM Files 10-Q, Announces Third Quarter 2024 Financial Results

Results In-Line with Previously Announced Third Quarter Preliminary Results

Third Quarter Revenue Increased 39% to $6.1 Million YoY and 11% from Second Quarter 2024

FY2024 Projected Revenue of $20.0 Million, Representing a 20% YoY Increase

On Track to Achieve Operating Cash Flow Breakeven by The First Quarter of 2025

MARLBOROUGH, Mass., Dec. 16, 2024 (GLOBE NEWSWIRE) -- ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) ("ConnectM" or the "Company"), a technology company focused on the electrification economy, has filed its 10-Q with the Securities and Exchange Commission (the "SEC") and released its financial results for the quarter ended September 30, 2024.

Third Quarter and First Nine Months 2024 Financial Results

   -- Revenue for the third quarter of 2024 increased to $6.1 million compared 
      to $4.4 million in the same year ago period. Revenue in the first nine 
      months of 2024 increased 12% to $17.3 million, when compared to $15.5 
      million in the same prior year period. 
 
          -- Cost of revenue for the third quarter of 2024 increased to $4.2 
             million compared to $3.7 million in the same year ago period. Cost 
             of revenue in the first nine months of 2024 was $11.0 million, in 
             line with $11.0 million in the same prior year period. 
 
   -- Net loss attributable to shareholders for the third quarter of 2024 was 
      $12.2 million compared to $2.6 million in the comparable prior year 
      period. For the first nine months of 2024, net loss attributable to 
      shareholders increased to $17.0 million, as compared to a net loss of 
      $5.0 million in the comparable prior year period. 

2024 Operational Updates

   -- Successfully completed De-SPAC and began trading on the Nasdaq Global 
      Market in July 2024. 
 
   -- Launched AI-powered heat pump integrated with ConnectM's Energy 
      Intelligence Network powered by the Company's proprietary data model, for 
      residential and light commercial use, optimized for performance, energy 
      efficiency and reducing customer costs. 
 
   -- Entered into agreement to acquire a controlling interest in 
      DeliveryCircle, a nationwide technology enabled final mile delivery 
      company which connects businesses looking for a last-mile delivery 
      solution. This strategic acquisition expands ConnectM's Transportation & 
      Logistics segment in the United States. 
 
   -- Eliminated $13.7 million of debt with debt-to-equity swap to deleverage 
      the balance sheet. 

Subsequent Events

   -- Entered into Managed Services Agreement ("MSA") with Devlin Energy, 
      expanding ConnectM's business portfolio mix and revenue generation with 
      an array of residential and commercial distributed energy capabilities. 
 
   -- Completed acquisition of Green Energy Gains Inc., a Massachusetts Home 
      Performance Contractor of energy and weatherization assessments, and 
      instrumental in the distribution and installation of ConnectM's electric 
      heat pumps, augmenting the Company's Building Electrification segment. 
 
   -- ConnectM's AI-powered heat pump received AHRI's (Air-Conditioning Heating 
      and Refrigeration Institute) Cold Climate Certification, awarded to 
      products that demonstrate superior heating efficiency. 

Outlook

For the fourth quarter and full year 2024, the Company expects revenues of approximately $7 million and $24 million respectively.

About ConnectM Technology Solutions, Inc.

ConnectM is a technology company focused on advancing the electrification economy by integrating electrified energy assets with its AI-powered technology solutions platform. The Company provides residential and light commercial buildings and all-electric original equipment manufacturers with a proprietary Energy Intelligence Network platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. Leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, ConnectM aims to make electrification more user-friendly, affordable, precise, and socially impactful. As a vertically integrated company with wholly owned service networks and a comprehensive technology stack, ConnectM empowers customers to reduce their reliance on fossil fuels, lower overall energy costs, and minimize their carbon footprint.

For more information, please visit: https://www.connectm.com/

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this press release, regarding our future financial performance and our strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," "project" or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control.

In addition, we caution you that the forward-looking statements regarding the Company contained in this press release are subject to the risks and uncertainties described in the "Cautionary Note Regarding Forward-Looking Statements" section of the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2024. Such filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ConnectM is under no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:

MZ North America

(203) 741-8811

ConnectM@mzgroup.us

 
                  CONNECTM TECHNOLOGY SOLUTIONS, INC. 
         (SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION) 
                  CONDENSED CONSOLIDATED BALANCE SHEETS 
            AS OF SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER 
                           31, 2023 (AUDITED) 
           (in thousands, except share and per share amounts) 
 
                                        September 30,     December 31, 
                                            2024              2023 
                                       ---------------  ---------------- 
Assets 
Current assets 
   Cash                                 $       1,882    $      1,160 
   Accounts receivable, net                     1,863             685 
   Contract asset                                  --             344 
   Convertible note receivable                     --             445 
   Inventory                                      320             277 
   Deferred offering costs                         --           1,297 
   Due from Monterey Capital 
    Acquisition Corporation                        --           2,491 
   Forward purchase agreement                   2,196              -- 
   Prepaid expenses and other assets            1,191             651 
                                           ----------       --------- 
      Total current assets                      7,452           7,350 
Right-of-use asset - operating lease              199             284 
Right-of-use asset - finance lease                167             252 
Property, plant and equipment, net                996           1,138 
Goodwill                                        3,037           2,247 
Intangible assets, net                          1,851           1,841 
Investment recorded at cost                        45              45 
                                           ----------       --------- 
Total Assets                            $      13,747    $     13,157 
                                           ==========       ========= 
 
Liabilities and Stockholders' 
Deficit 
Current liabilities 
   Accounts payable                     $      10,357    $      3,860 
   Accrued expenses                             4,631           1,718 
   Due to Libertas                              1,057              -- 
   Due to related party                           686              -- 
   Current portion of debt, related 
    party                                          85              85 
   Current portion of debt, net of 
    debt discount                              15,966          11,935 
   Current portion of convertible 
    debt, at fair value                         4,392           2,179 
   Current portion of operating lease 
    liability                                     114             115 
   Current portion of finance lease 

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