Latest news with #KORE
CBC
2 days ago
- Automotive
- CBC
Kootenay-based company looks to reduce waste in outdoor recreation industry
A mobile repair studio, called the re-hub, is touring B.C.'s Kootenays in an effort to keep outdoor gear out of landfills. Industry group Kootenay Outdoor Recreation Enterprise (KORE) Outdoors is behind the initiative, offering repairs of soft and hard goods, from ski jackets and hiking backpacks to tent poles.
Yahoo
15-05-2025
- Business
- Yahoo
KORE Reports First Quarter 2025 Results
Growth in Connections, Operating Cash and Free Cash Flow ATLANTA, May 15, 2025 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE: KORE) ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler and provider of IoT Connectivity, Solutions, and Analytics, today reported financial and operational results for the quarter ended March 31, 2025. Company Highlights Total Connections1 increased to 19.8 million, up 8% from 18.3 million in the same period last year. Cash provided by operations increased to $2.9 million, up 51% from the same period a year ago, positive for the second consecutive quarter. Free Cash Flow increased to $0.6 million, up 121% from the same period a year ago, positive for the second consecutive quarter. Operating Expense declined to $41.6 million, down 15% from $49.1 million in the same period last year directly related to restructuring efforts announced in August 2024. IoT Solutions Margin rose to 33.0%, up 210 basis points from the same period last year. IoT Solutions Non-GAAP Margin rose to 39.9%, up 370 basis points from the same period last year. "We had a solid quarter of operating performance with growth in cash provided by operations and Free Cash Flow, posting a consecutive quarter of positive cash flow. We added several exciting new customers in the quarter and continue to add new IoT connections as we approach 20 million Total Connections - an important milestone for KORE. We saw strong demand for new IoT connections that should convert to more Connectivity revenue as the year progresses," said Ron Totton, President and Chief Executive Officer of KORE. "We also expanded our indirect channel in the quarter as part of our focus on profitable growth and are encouraged by the opportunities we are seeing and leveraging the KORE brand," added Totton. ____________________________ 1 See "Key Operational Metrics" below for definitions. The tables below summarize the Company's revenue and specific key operational Months Ended March 31, ($ in thousands) 20252024 IoT Connectivity $53,91775 %$57,88476 % IoT Solutions $18,22525 %$18,09124 % Total Revenue $72,142100 %$75,975100 % Period End Total Connections 19.8 million18.3 million Average Total Connections for the Period 19.7 million18.1 million ARPU* $0.91 $1.05 DBNER* 99 %94 %* See "Key Operational Metrics" below for definitions. 2025 Financial Outlook For the twelve months ending December 31, 2025, the Company continues to expect the following: Revenue in the range of $288 million to $298 million; Adjusted EBITDA in the range of $62 million to $67 million; and Free Cash Flow in the range of $10 million to $14 million. Conference Call Details KORE management will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results, business highlights and outlook. Interim President and CEO Ron Totton and CFO Paul Holtz will host the call, followed by a question-and-answer session. Webcast: LinkU.S. dial-in: (877) 407-3039International dial-in: (215) 268-9922Conference ID: 13753735 The conference call and a supplemental slide presentation to accompany management's prepared remarks will be available via the webcast link and for download via the investor relations section of the Company's website, For the conference call, please dial in 5-10 minutes prior to the start time, and an operator will register your name and organization, or you may register here. If you have difficulty with the conference call, please contact KORE investor relations at (770) 280-0324. A replay of the conference call will be available approximately three hours after the conference call ends. It will remain on the investor relations section of the Company's website for 90 days. An audio replay of the conference call may be accessed by calling (877)-660-6853 or (201)-612-7415 using access code 13753735. About KORE KORE is a pioneer, leader, and trusted advisor delivering mission-critical IoT solutions and services. We empower organizations of all sizes to improve operational and business results by simplifying the complexity of IoT. Our deep IoT knowledge and experience, global reach, purpose-built solutions, and deployment agility accelerate and materially impact our customers' business outcomes. For more information, visit Non-GAAP Financial Measures In addition to our results as determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operational performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing our operating performance. EBITDA and Adjusted EBITDA "EBITDA" is defined as net income (loss) before other non-operating expenses or income, income tax expense or benefit, and depreciation and amortization. "Adjusted EBITDA" is defined as EBITDA adjusted for unusual and other significant items that management views as distorting the operating results from period to period. Such adjustments may include stock-based compensation, integration and acquisition-related charges, tangible and intangible asset impairment charges, certain contingent liability reversals, transformation, and foreign currency transaction gains and losses. EBITDA and Adjusted EBITDA are intended as supplemental measures of our performance that are neither required by nor presented in accordance with GAAP. We believe that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies may not calculate Adjusted EBITDA in the same fashion. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate our business. Free Cash Flow Free Cash Flow is a non-GAAP measure defined as net cash used in operating activities - continuing operations, reduced by capital expenditures (consisting of purchases of property and equipment), purchases of intangible assets and capitalization of internal use software. We believe Free Cash Flow is an important liquidity measure of the cash that is available for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases. Free Cash Flow is a key financial indicator used by management. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. The use of Free Cash Flow as an analytical tool has limitations because it does not represent the residual cash flow available for discretionary expenditures. Because of these limitations, Free Cash Flow should be considered along with other operating and financial performance measures presented in accordance with GAAP. Non-GAAP Margin Non-GAAP Margin is a non-GAAP measure defined as non-GAAP Gross Profit ("Non-GAAP Profit") divided by revenue, expressed as a percentage. Non-GAAP Profit is a non-GAAP measure defined as gross profit excluding certain (i) inventory adjustments that may not be indicative of ongoing operations, (ii) depreciation and (iii) amortization. We have not provided the forward-looking GAAP equivalents for the forward-looking non-GAAP financial measures Adjusted EBITDA and Free Cash Flow or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items including but not limited to stock-based compensation expense, foreign currency loss or gain and acquisition and integration-related expenses. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that could be confusing or misleading to investors. Key Operational Metrics KORE reviews a number of operational metrics to measure our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. The calculation of the key operational metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts, or investors. Number of Customer Connections Our "Total Number of Connections" or "Total Connections" with respect to any financial period constitutes the total of all our IoT Connectivity services connections for such period, which includes the contribution of eSIMs but excludes certain connections where mobile carriers license our subscription management platform from us. The "Average Connections Count" with respect to any financial period is the simple average of the total connections for such period. These metrics are the principal measures used by management to assess the growth of the business on a periodic basis, on a SIM and/or device-based perspective. We believe that investors also use these metrics for similar purposes. Dollar-Based Net Expansion Rate (DBNER) Dollar-Based Net Expansion Rate (DBNER) tracks the combined effect of cross-sales of IoT Solutions to KORE's existing customers, its customer retention and the growth of its existing business. KORE calculates DBNER by dividing the revenue for a given period ("given period") from existing go-forward customers by the revenue from the same customers for the same period measured one year prior ("base period"). The revenue included in the current period excludes revenue from (i) customers that are "non-go-forward" customers, meaning customers that have either communicated to KORE before the last day of the current period their intention not to provide future business to KORE or customers that KORE has determined are transitioning away from KORE based on a sustained multi-year time period of declines in revenue and (ii) new customers that started generating revenue after the end of the base period. For the purposes of calculating DBNER, if KORE acquires a company during the given period or the base period, then the revenue of a customer before the acquisition but during either the given period or the base period is included in the calculation. For example, to calculate our DBNER for the trailing 12 months ended March 31, 2025, we divide (i) revenue, for the trailing 12 months ended March 31, 2025, from go-forward customers that started generating revenue on or before March 31, 2024, by (ii) revenue, for the trailing 12 months ended March 31, 2024, from the same cohort of customers. It is often difficult to ascertain which customers should be deemed not to be go-forward customers for purposes of calculating DBNER. Customers are not required to give notice of their intention to transition off of the KORE platform, and a customer's exit from the KORE platform can take months or longer, and total connections of any particular customer can at any time increase or decrease for any number of reasons, including pricing, customer satisfaction or product fit—accordingly, a decrease in total connections may not indicate that a customer is intending to exit the KORE platform, particularly if that decrease is not sustained over a period of several quarters. DBNER would be lower if it were calculated using revenue from non-go-forward customers. DBNER is used by management as a measure of growth of KORE's existing customers (i.e., "same store" growth) and as a measure of customer retention, from a revenue perspective. It is not intended to capture the effect of either new customer wins or the declines from non-go-forward customers on KORE's total revenue growth. This is because DBNER excludes new customers who started generating revenue after the base period and also excludes any customers who are non-go-forward customers on the last day of the current period. Revenue increases from new customer wins, and a decline in revenue from non-go-forward customers are also important factors in assessing KORE's revenue growth, but these factors are independent of DBNER. Estimated Annual Recurring Revenue (eARR) eARR, or Estimated Annual Recurring Revenue, multiplies the estimated monthly recurring revenue in the twelfth month of the contract by twelve to estimate the annual recurring revenue. We believe that this key performance metric is useful to both management and investors for forecasting purposes and also for understanding the financial health of our subscription-based businesses. Average Revenue Per User (ARPU) Average Revenue Per User (ARPU) is used by management as a measure to assess the revenue generated per connection per month. It is calculated by dividing the total IoT Connectivity Revenue during the period by the total number of connections during that same period. We believe that ARPU is an important metric for both management and investors to help in understanding the financial performance and effectiveness of the company's monetization per connection. ARPU is calculated on a three-month (current quarter) basis only, as longer periods are not meaningful. Cautionary Note on Forward-Looking Statements This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "guidance," "project," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding expected financial and other risks, statements regarding future operational performance and efficiency, statements regarding the expected cost savings, revenue growth and profitability from the Company's restructuring plan, 2025 guidance, estimates and forecasts of revenue, Adjusted EBITDA, Free Cash Flow and other financial and performance metrics, statements regarding growth from the Company's indirect channel partner relationships, projections regarding recent customer engagements, projections of market opportunity and conditions, the impact of SGP.32 eSIM architecture, and the Estimated Annual Recurring Revenue ("eARR") of contracts and potential revenue opportunities in KORE's sales funnel. These statements are based on various assumptions and on the current expectations of KORE's management. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor or other person as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of KORE. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; risks related to the rollout of KORE's business and the timing of expected business milestones; risks relating to the integration of KORE's acquired companies, including the acquisition of Twilio's IoT business, changes in the assumptions underlying KORE's expectations regarding its future business; our ability to negotiate and sign a definitive contract with a customer in our sales funnel; our ability to realize some or all of the eARR of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; the effects of competition on KORE's future business; and the outcome of judicial proceedings to which KORE is, or may become a party. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that KORE presently does not know or that KORE currently believes are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect KORE's expectations, plans or forecasts of future events and views as of the date of this press release. KORE anticipates that subsequent events and developments will cause these assessments to change. However, while KORE may elect to update these forward-looking statements at some point in the future, KORE specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing KORE's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. KORE Investor Contact: Vik VijayvergiyaVice President, IR, Corporate Development and Strategy vvijayvergiya@ 280-0324 KORE GROUP HOLDINGS, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (UNAUDITED) Three Months Ended March 31, (in thousands) 20252024 Net loss $ (14,908)$ (17,587) Income tax expense (benefit) 1,109(420) Interest expense, net 12,83312,640 Depreciation and amortization 13,91113,606 EBITDA $12,945$8,239 Change in fair value of warrant liability (1,804)(2,321) Integration-related restructuring costs 4,1444,573 Stock-based compensation 5892,708 Foreign currency (gain) loss (1,482)1,344 Other (1) 63214 Adjusted EBITDA $ 14,455$ 14,757(1) "Other" adjustments are comprised of adjustments for certain indirect or non-income based taxes. KORE GROUP HOLDINGS, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) Three Months Ended March 31, (in thousands) 20252024 Net cash provided by operating activities $ 2,874$ 1,904 Purchases of property and equipment (126)(877) Additions to intangible assets (2,151)(3,808) Free cash flow $ 597$ (2,781) KORE GROUP HOLDINGS, INC. RECONCILIATION OF GROSS MARGIN TO NON-GAAP MARGIN (UNAUDITED) Three Months Ended March 31, ($ in thousands) 20252024 IoT ConnectivityRevenue $ 53,917 $ 57,844Cost of revenue, excluding depreciation and amortization 22,216 22,676Depreciation and amortization in cost of revenue (1) 11,710 10,808Gross Profit $ / Margin % $ 19,991 37.1 %$ 24,400 42.2 % Exclude: Depreciation and amortization 11,710 10,808Non-GAAP Profit $ / Non-GAAP Margin % $ 31,701 58.8 %$ 35,208 60.8 % IoT SolutionsRevenue $ 18,225 $ 18,091Cost of revenue, excluding depreciation and amortization 10,806 11,537Depreciation and amortization in cost of revenue (1) 1,403 972Gross Profit $ / Margin % $ 6,016 33.0 %$ 5,582 30.9 % Exclude: Inventory adjustments (141) -Exclude: Depreciation and amortization 1,403 972Non-GAAP Profit $ / Non-GAAP Margin % $ 7,278 39.9 %$ 6,554 36.2 % Overall Gross Profit $ / Margin % $ 26,007 36.0 %$ 29,982 39.5 % Non-GAAP Profit $ / Non-GAAP Margin % $ 38,979 54.0 %$ 41,762 55.0 %(1) Depreciation and amortization as included in cost of revenue for GAAP. Separately shown for recalculation purposes. View original content to download multimedia: SOURCE KORE Group Holdings, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Automotive
- Yahoo
KORE, Robo, Ericsson, and Winnebago Redefine the Open Road with Winnebago Connect™
A Seamless, Smarter RV Experience Powered by IoT Innovation ATLANTA, May 12, 2025 /PRNewswire/ -- KORE, a global leader in Internet of Things ("IoT") Solutions and IoT Connectivity provider, has collaborated with Winnebago and Robo to unveil Winnebago Connect™, a groundbreaking platform that transforms the recreational vehicle (RV) experience through advanced connectivity, intelligent automation and intuitive design. Powered by KORE, Robo, and Ericsson Enterprise Wireless Solutions, Winnebago Connect integrates cutting-edge technologies to deliver a seamless intelligent RV platform. KORE's managed IoT services provide the global connectivity backbone, ensuring reliable access no matter the destination. Robo delivers the software platform that powers the intuitive user interface and intelligent features, while Ericsson contributes high-performance network solutions with dual-carrier Wi-Fi and edge computing. Together, these innovations create an unparalleled ecosystem that empowers RV owners to travel smarter, safer and with greater convenience. "Our work with Winnebago and Robo showcases the potential of IoT to revolutionize industries and enable people to explore the world," said Ron Totton, KORE President and CEO. "Winnebago Connect is more than a product, it is a complete ecosystem that empowers RV owners to travel with confidence and convenience. We cannot wait to see where Winnebago Connect takes RV owners." Winnebago Connect is designed to simplify RV ownership and enhance the travel experience. Its smart notifications and GPS tracking features, powered by software developed by Robo, keep RV owners informed about their vehicle's location and provide real-time alerts to enhance safety and convenience. Remote climate control capabilities allow travelers to adjust their cabin's temperature from anywhere, ensuring comfort for both passengers and pets. Smart energy management optimizes off-grid power usage through intelligent monitoring and automation, enabling extended boondocking adventures. Ericsson's industry-leading Cradlepoint routers power the always-on connectivity of Winnebago Connect. "With Winnebago Connect, we are redefining what it means to explore the open road," said Michael Happe, Winnebago President and CEO. "This platform combines the expertise of Winnebago with Robo's intelligent software and KORE's connectivity to deliver a fully integrated and scalable solution that meets the evolving needs of our customers." About KOREKORE is a pioneer, leader, and trusted advisor delivering mission critical IoT solutions and services. We empower organizations of all sizes to improve operational and business results by simplifying the complexity of IoT. Our deep IoT knowledge and experience, global reach, purpose-built solutions, and deployment agility accelerate and materially impact our customers' business outcomes. For more information, visit About RoboRobo is a technology company that specializes in intelligent, user-centric software solutions for connected experiences. Focused on bridging the gap between smart devices and everyday life, Robo develops flexible, scalable platforms that bring automation, control, and personalization to a wide range of industries – from RVs to smart homes. For more information, visit About EricssonEricsson's enterprise wireless solutions enable organizations to innovate, operate, and grow anywhere – without constraints. Ericsson NetCloud, Cradlepoint routers, and Enterprise 5G solutions provide the flexibility of public and private 5G, with the zero-trust security of simplified SASE. Visit to learn more. About WinnebagoWinnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota, and Florida. The Company's common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations materials visit KORE Media ContactStephen Rana Senior Marketing ManagerEmail: sbell@ View original content to download multimedia: SOURCE KORE Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Automotive
- Yahoo
KORE, Robo, Ericsson, and Winnebago Redefine the Open Road with Winnebago Connect™
A Seamless, Smarter RV Experience Powered by IoT Innovation ATLANTA, May 12, 2025 /PRNewswire/ -- KORE, a global leader in Internet of Things ("IoT") Solutions and IoT Connectivity provider, has collaborated with Winnebago and Robo to unveil Winnebago Connect™, a groundbreaking platform that transforms the recreational vehicle (RV) experience through advanced connectivity, intelligent automation and intuitive design. Powered by KORE, Robo, and Ericsson Enterprise Wireless Solutions, Winnebago Connect integrates cutting-edge technologies to deliver a seamless intelligent RV platform. KORE's managed IoT services provide the global connectivity backbone, ensuring reliable access no matter the destination. Robo delivers the software platform that powers the intuitive user interface and intelligent features, while Ericsson contributes high-performance network solutions with dual-carrier Wi-Fi and edge computing. Together, these innovations create an unparalleled ecosystem that empowers RV owners to travel smarter, safer and with greater convenience. "Our work with Winnebago and Robo showcases the potential of IoT to revolutionize industries and enable people to explore the world," said Ron Totton, KORE President and CEO. "Winnebago Connect is more than a product, it is a complete ecosystem that empowers RV owners to travel with confidence and convenience. We cannot wait to see where Winnebago Connect takes RV owners." Winnebago Connect is designed to simplify RV ownership and enhance the travel experience. Its smart notifications and GPS tracking features, powered by software developed by Robo, keep RV owners informed about their vehicle's location and provide real-time alerts to enhance safety and convenience. Remote climate control capabilities allow travelers to adjust their cabin's temperature from anywhere, ensuring comfort for both passengers and pets. Smart energy management optimizes off-grid power usage through intelligent monitoring and automation, enabling extended boondocking adventures. Ericsson's industry-leading Cradlepoint routers power the always-on connectivity of Winnebago Connect. "With Winnebago Connect, we are redefining what it means to explore the open road," said Michael Happe, Winnebago President and CEO. "This platform combines the expertise of Winnebago with Robo's intelligent software and KORE's connectivity to deliver a fully integrated and scalable solution that meets the evolving needs of our customers." About KOREKORE is a pioneer, leader, and trusted advisor delivering mission critical IoT solutions and services. We empower organizations of all sizes to improve operational and business results by simplifying the complexity of IoT. Our deep IoT knowledge and experience, global reach, purpose-built solutions, and deployment agility accelerate and materially impact our customers' business outcomes. For more information, visit About RoboRobo is a technology company that specializes in intelligent, user-centric software solutions for connected experiences. Focused on bridging the gap between smart devices and everyday life, Robo develops flexible, scalable platforms that bring automation, control, and personalization to a wide range of industries – from RVs to smart homes. For more information, visit About EricssonEricsson's enterprise wireless solutions enable organizations to innovate, operate, and grow anywhere – without constraints. Ericsson NetCloud, Cradlepoint routers, and Enterprise 5G solutions provide the flexibility of public and private 5G, with the zero-trust security of simplified SASE. Visit to learn more. About WinnebagoWinnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota, and Florida. The Company's common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations materials visit KORE Media ContactStephen Rana Senior Marketing ManagerEmail: sbell@ View original content to download multimedia: SOURCE KORE Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
10-02-2025
- Business
- USA Today
KORE Power contractor says its owed more than $10M for work on defunct battery plant
KORE Power contractor says its owed more than $10M for work on defunct battery plant Show Caption Hide Caption Booming Buckeye, Arizona: Here's a look at the city The metro Phoenix city is one of the fastest-growing and geographically largest cities in Arizona. The Republic W.G. Yates & Sons Construction Company, the contractor for KORE Power's abandoned battery factory project in Buckeye, Arizona, claims it is owed over $10 million in unpaid dues. KORE Power withdrew from the $1 billion project citing corporate restructuring and fundraising challenges due to policy uncertainties. The company listed its 214-acre property for sale, attracting potential buyers interested in repurposing it as an opportunity zone development. The contractor hired to do some early construction work for KORE Power's now-abandoned battery factory in Buckeye claims it's owed more than $10 million. In a 241-page filing with the Maricopa County Recorder's Office, W.G. Yates & Sons Construction Company alleges it hasn't been paid since finishing the site work at what was supposed to be a lithium-ion battery manufacturing campus. KORE was already thrust into the spotlight last week after nixing the $1 billion project called KOREPlex. The development, near State Route 85 and Baseline Road, no longer aligns with the Idaho-based company's long-term goals. But news of W.G. Yates' claim, first reported by AZBEX, sheds more light on KORE's fundraising struggles to build the facility, which promised to deliver 3,000 jobs to the southwest Valley community and produce batteries for electric vehicles and energy storage systems. The Arizona Republic reported Feb. 5 that a conditional commitment for an $850 million federal loan KORE received from the U.S. Department of Energy during the Biden administration never materialized. It would have covered the bulk of the costs, but as of the deadline, KORE had not heard from the department about whether those funds were still coming. While citing corporate restructuring as the reason behind the withdrawal from the highly anticipated project, KORE acknowledged there were policy uncertainties that led to fundraising challenges. On Jan. 16, KORE listed its 214-acre property, potentially worth $75 million, on LoopNet. It has already attracted one potential buyer, which is seeking the city's support in repurposing the property as an opportunity zone development. In an emailed statement Friday, Buckeye said its economic development team is working with the land broker to market the property to prospective buyers. "We value our strong working relationships with all businesses considering Buckeye as their home," the city stated. "We will remain focused on bringing quality jobs and industries that align with our vision for sustainable growth and long-term economic success.' KORE declined to comment for this story. Lien filed against KORE KORE's move out of Buckeye comes more than two years after it first broke ground on the facility and nearly a year after city officials approved site plans so construction could proceed. In October 2022, the company tapped W.G. Yates to perform much of the initial work, such as grading and improvements to the site and utilities. By the summer of 2024, the contractor had completed the job and submitted the bill to KORE. But W.G. Yates alleges it hasn't yet been paid. It's now demanding nearly $10.4 million in compensation, according to the claim, referred to as a mechanics' and materialmen's lien. Attorneys with the law firm Snell & Wilmer are representing W.G. Yates in the lien case. They declined to comment on this story Friday. Developer sees opportunity on KORE site W.G. Yates' lien claim was filed with the county on Jan. 14, two days before KORE's property went on the market. According to KORE's realtor, JLL, the swath of land could sell for about $75 million. KORE bought it for $29 million in 2022. Marketing materials for the site refer to it as industrial land that's 'prime for high-tech manufacturing development.' JLL explained this week that the property includes civil engineering improvements like water and sewer lines. There's also a building pad, which is the compacted dirt where a concrete slab could eventually be laid to accommodate a large 900,000-square-foot building. Some offers have been made for the property, according to JLL. One of them is from a development company called Independent Concepts. The company already has ties to Buckeye as it's managed a local opportunity zone fund since 2022. Opportunity zones are low-income areas where developers are incentivized to invest some of their revenues from capital gains by developing the property. In return, they can get their capital gains taxes deferred. That incentive will expire on Dec. 31, 2026, according to the IRS. Before then, Independent Concepts is eyeing KORE's land and wants to work with the city to refocus the use of the site — which already falls within an existing opportunity zone — while still maintaining it as an economic development and job-creating hub. To do so, explained Independent Concepts Development Directory Tommy Dee, the company believes it can line up some developers and investors who want to create a new rail hub or build a data center. There's an opportunity, he noted, for the latter to take advantage of the joint venture called Stargate, a $500 billion investment in artificial intelligence infrastructure that President Trump announced following his return to office last month. OpenAI, one of the project's backers, announced this week that 16 states, including Arizona, are being considered for the investment. 'We're really open to trying to find something that would best suit that particular property since KORE is not going to be building what they blueprinted,' Dee said. According to Dee, the company was slated to meet with Mayor Eric Orsborn and other officials this week to discuss the opportunity zone development. Orsborn has not returned The Republic's calls for comment on the KORE project. Shawn Raymundo covers the West Valley cities of Glendale, Peoria and Surprise. Reach him at sraymundo@ or follow him on X @ShawnzyTsunami.
