VANCOUVER, June 1, 2020 /CNW/ - LITE ACCESS TECHNOLOGIES
INC. (the "Company") (TSX VENTURE:
LTE)(PINK: LTCCF), a world leader in the use of
innovative and proven micro/narrow trenching technologies,
alternate methods of deployment and specialist products which
transform the cost of fibre optic network deployment for
telecommunications operators, today reported its financial
results for the second quarter ended March
31, 2020. The financial statements and related
management's discussion and analysis ("MD&A") can be viewed on
SEDAR at www.sedar.com.
FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER:
- Total Q2 2020 revenue of $2,036,507 compared to $2,834,129 for Q2 2019;
- Gross margin for Q2 2020 was $(210,330) compared to $619,036 in Q2 2019;
- EBITDA* for Q2 2020 was $(1,638,109) compared to $(639,041) for Q2 2019;
- Net comprehensive loss of $2,018,876 for Q2 2020 compared to a loss of
$1,156,656 in Q2 2019;
- Exited the quarter with $2.9
million in cash and cash equivalents, $3.3 million in working capital, and an undrawn
credit facility of $1.9 million.
"In fiscal Q2 we took immediate and strategic actions to adjust
to the current market conditions stemming from the COVID-19 global
pandemic," stated Carlo Shimoon,
President & CEO of Lite Access. "While there have been no
site shutdowns, for the safety of our crews, we adapted our
operations to comply with applicable protocols which affected
productivity during this period. As well, Q2 was dominated
with heavy ramp up costs in Lowestoft and Bury St Edmunds which affected
our financial performance for the quarter. The good news is that Q3
and Q4 should demonstrate improvement quarter over quarter as
revenue is recognized from the two cities and we bring online
Cambridge as well. This marks the
beginning of a significant growth period in which Lite Access will
be delivering on its backlog."
"Our construction services are deemed essential for the
maintenance and build of critical telecom infrastructure. COVID-19
challenged our industry, in addition to many other industries, with
updated government guidelines and restrictions for operations
necessary to ensure the health and safety of staff and reduce the
virus' spread. Despite these complications, it was invigorating to
see our team's dedication as we rapidly adapted to change and
managed to meet client demand. We are tremendously grateful to
all our staff and crews in both Canada and the UK for what they are doing in
essential services and their commitment to seeing projects
succeed."
HIGHLIGHTS SUBSEQUENT TO THE SECOND QUARTER:
- In April 2020, CityFibre awarded
the Company a third contract for fibre-to-the-premises installation
to over 20,000 homes in Cambridge,
England valued at approximately $20
million over 21 months.
- In May 2020, the Company's
Canadian operation was awarded a contract for installation of a
fibre optic network with Clearwater County, Alberta valued at approximately $1 million, and is expected to be executed in the
fourth quarter.
BUSINESS OUTLOOK
Thus far, in the third quarter, the Company's projects in
Lowestoft, Bury St Edmunds and
Cambridge continue to move
forward, although certain activities have been safely scaled back
at project sites as the current pandemic is brought under
control.
The Company continues to execute on its projects and currently
expects them to be completed by the project deadlines. If
successful in meeting KPIs on these initial contracts with
CityFibre, Lite Access expects many more major fibre infrastructure
builds across towns and cities throughout the UK as the partnership
progresses.
By summer 2020, CityFibre plans to award more than £1.5 billion
in network construction contracts for newly announced full city
builds, enabling selected construction partners such as Lite Access
to secure and mobilise their workforce in preparation for network
construction to begin.
Lite Access has reached major contract milestones and has
developed a strategy to capitalize on the identified opportunities,
focusing on revenue growth, profitability and cash flow. The
Company's specific priorities include a commitment to health &
safety, reliability, operational excellence and capital discipline
to achieve and sustain strong operational and financial
performance.
To pursue this strategy the Company believes in building high
performance teams that deliver productivity. Specifically,
management has created a daily reporting process that collects data
from the field (crews), processes that data in real-time and
presents the KPI results daily to management. Management meets
daily and uses the reporting to identify issues before they become
problems and overall allows the Company to steer the business
toward continual improvement.
Furthermore, a multi-channel reporting structure is utilized to
ensure there are checks and balances in the daily reporting back to
corporate office.
"Our balance sheet is solid, our team is committed to optimizing
operations to ensure we meet our targets, and we are moving ahead
aggressively with our growth strategy," noted Mr. Shimoon.
"We have consistently demonstrated capital discipline, and we
continue to find ways to optimize field operations to improve
process efficiency and customer satisfaction. Our contract
backlog remains healthy and we hope to continue to increase
it. As we move into the back half of fiscal 2020, we
anticipate significant revenue increases and improved EBITDA growth
over the course of delivery. We believe this will provide
shareholders with visibility to materially increasing value for
many quarters to come."
Mr. Shimoon concluded, "With millions of people working and
learning from home, many are getting firsthand experience on the
limitations of today's technological infrastructure. The
necessity for fast full-fibre broadband has never been more obvious
with the number of remote workers continuing to rise globally and,
in fact, in the UK more than half the population is expected to
work from home by the end of 2020."1
1 https://entrepreneurhandbook.co.uk/fast-broadband-is-a-necessity-if-your-working-from-home/
About Lite Access
Lite Access Technologies Inc. is a world leader in the use of
innovative and proven micro/narrow trenching technologies,
alternate methods of deployment and specialist products which
transform the cost the network deployment for telecommunications
operators. Lite Access has successfully deployed or enabled
deployment of thousands of kilometres of broadband networks
throughout North America and the
United Kingdom as well as
South America, Africa, Australia and Asia.
As part of its suite of services, Lite Access provides clients
with integrated solutions or select components for the design and
implementation of fibre optic networks. Lite Access' products
have been deployed in many high-profile communication networks
including Olympic facilities, military and government, numerous
communities throughout the United
Kingdom, the USA and
Canada as well as global
telecommunications companies that have adopted Lite Access as the
"solution of choice" for the least invasive, most cost effective
and future-proof fibre optic connectivity available.
Lite Access' installation technology and proprietary products
extend a network provider's ability to deliver true broadband
connectivity directly to end-users, such as homes, businesses,
government and educational institutions, and emergency response
facilities. Lite Access remains flexible and innovative in its
commitment to provide global clients and partners with the most
cost effective and proven fibre connectivity solutions
available.
*Non-IFRS Measures
EBITDA is a measure not recognized under IFRS. However,
management of Lite Access believes that most shareholders,
creditors, other stakeholders and investment analysts prefer to
have these measures included as reported measures of operating
performance, a proxy for cash flow, and to facilitate valuation
analysis. EBITDA is defined as earnings before interest income,
taxes, depreciation and amortization, stock based compensation,
restructuring costs, impairment charges and other non-recurring
gains or losses. Management believes EBITDA is a useful measure
that facilitates period-to-period operating comparisons.
EBITDA does not have any standardized meanings prescribed by
IFRS and therefore may not be comparable to similar measures
presented by other issuers. Readers are cautioned that EBITDA is
not an alternative to measures determined in accordance with IFRS
and should not, on its own, be construed as indicators of
performance, cash flow or profitability. References to the Lite
Access' EBITDA should be read in conjunction with the financial
statements and management's discussion and analysis of Lite Access
posted on SEDAR (www.sedar.com).
Forward Looking Information
This news release contains statements that, to the extent
they are not recitations of historical fact, may constitute
"forward-looking statements" within the meaning of applicable
Canadian securities laws. Lite Access uses words such as "may",
"would", "could", "will", "likely", "expect", "believe", "intend"
and similar expressions to identify forward-looking statements. Any
such forward-looking statements are based on assumptions and
analyses made by Lite Access in light of its experience and its
perception of historical trends, current conditions and expected
future developments. However, whether actual results and
developments will conform to Lite Access' expectations and
predictions is subject to any number of risks, assumptions and
uncertainties. Many factors could cause Lite Access' actual
results to differ materially from those expressed or implied by the
forward-looking statements contained in this news release. Such
factors include, among other things: risks and uncertainties
described in Lite Access's most recent Management Discussion &
Analysis (MD&A) for the financial year ended September 30, 2019 which can be accessed at
www.sedar.com. The "forward-looking statements" contained herein
speak only as of the date of this press release and, unless
required by applicable law, Lite Access undertakes no obligation to
publicly update or revise such information, whether as a result of
new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Lite Access Technologies Inc