VANCOUVER, BC, June 1, 2021 /CNW/ - LITE ACCESS
TECHNOLOGIES INC. (the "Company") (TSXV: LTE) (OTC 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, yesterday reported its financial results for the
second quarter ended March 31,
2021. The financial statements and related management's
discussion and analysis ("MD&A") can be viewed on SEDAR at
www.sedar.com.
FINANCIAL HIGHLIGHTS FOR Q2 2021(1):
- Total Q2 2021 revenue of $2,030,877 compared to $275,646 for Q2 2020;
- Gross margin for Q2 2021 was $(48,649) compared to $(244,902) in Q2 2020;
- EBITDA* from continuing operations for Q2 2021 was $(659,049) compared to $(922,430) for Q2 2020;
- Net comprehensive loss from continuing operations of
$(1,004,089) compared to a net
comprehensive loss of $(1,128,612)
for Q2 2020;
- Net comprehensive income of $3,154,823 for Q2 2021, which includes a gain
from discontinued operations of $4,158,912, compared to a net comprehensive loss
of $(2,018,886) for Q2 2020;
- Exited the quarter with $1,018,785 in cash and cash equivalents, positive
working capital of $714,828, and
maintains one undrawn credit facility of $500,000.
Note:
(1) On January 26, 2021, the UK
business officially appointed FRP Advisory Trading Limited as
administrators. Accordingly, the Company no longer has
control over the UK business as of the date of the appointment of
the administrators. As a result, LAT UK financial results
have been classified as a discontinued operation as at March 31, 2021. Certain prior year comparative
figures have been reclassified to compare with the current year
presentation.
Q2 2021 EVENTS:
- On March 5, 2021, the Company
completed the acquisition of AMEC Cutting & Coring Limited
("AMEC"). AMEC complements Lite Access' fibre installation
business, brings broader service offerings and expands its customer
base.
- On March 1, 2021, Lite Access
completed a fully subscribed non-brokered private placement for
gross proceeds of $1.26 million,
which strengthens the Company's financial position for its growth
plans.
- On February 11, 2021, the Company
announced it received a purchase order from Clearwater County,
Alberta, totalling $1.18 million for the supply of microduct and
fibre optic components. This purchase order was fulfilled during
the quarter.
- On January 20, 2021, Lite Access
reported that the City of Brooks,
Alberta unanimously agreed to accept the Company's proposal
to construct a city-wide broadband network valued at approximately
$14.4 million, pending a successful
negotiation of a contract.
SUBSEQUENT TO QUARTER:
- In the Fall of 2020, a region in southeastern British Columbia issued an RFP for the
provision of project management and construction services,
utilizing both aerial and underground fibre construction
methodologies, to deploy fibre optic cable. Lite Access was
successful in the RFP process with its proposal of approximately
$800,000 for the services, the terms
of which have been finalized in a signed contract. Construction for
the project is planned to start and be completed in the Q4 2021
timeframe.
- In April 2021, the Company has
been sole sourced for fiber optic construction and installation
work for a period of 5 years for a significant sized city located
on Vancouver Island, British
Columbia.
Chui Wong, Interim CEO of Lite
Access, stated, "Our second quarter results reflect a time of
transition for the Company, as the UK business has been
discontinued and we move forward with the improving outlook in
terms of Canadian operations and domestic business
opportunities. With the completion of the acquisition of AMEC
in March 2021, the integration has
proceeded as planned and we expect to see revenue scale and cost
synergies as we progress as a consolidated entity. In fact,
these quarterly results only reflect less than one month of the two
combined entities and our expectation is to see further improvement
across most major performance metrics in subsequent quarters."
"Additionally, we have made considerable progress from an
internal integration perspective, and I commend our new General
Manager of Canada, Tony Curkovic, for his operational
leadership. He has worked tirelessly onsite to expedite the
Company's growth and path to profitability by optimizing execution
in the field and by implementing robust structure and
procedures. He and the team are well-positioned to ensure
consistent and efficient delivery of projects."
Mr. Wong continued, "The Company continues discussions with the
City of Brooks, Alberta on a
$14.4 million contract (see press
release dated January 20, 2021) and
with business development activities with various government
municipalities and funding in Canada to take advantage of the infrastructure
buildout and work-from-home movement. Canadian market and
business conditions continue to improve and provide a sustainable
opportunity for our Company's growth. Proposal activity in
Canada has been and continues to
be much busier than normal and with an increasing pipeline of bid
opportunities we expect to win more potential awards."
Mr. Wong summarized, "With the Company's focus squarely now on
Canada, the completion of the
acquisition of AMEC is expected to result in significant cost
savings through economies of scale and an expected boost in
top-line revenue due to a wider customer base and service
offerings, yielding a more robust and resilient Canadian
business. Our plan will be to continue to focus on
operational execution, continue to build through organic growth as
well as accelerate our growth through subsequent acquisitions. We
remain confident that we are building a business from a strong base
that can scale and drive a more sustainable and profitable
operation going forward."
The Company also announces that Chui
Wong is stepping down as the Company's Interim CEO effective
June 4, 2021 to pursue other
opportunities. Greg Smith,
Lite Access' Chairman, will assume the CEO position, on an interim
basis, on June 4, 2021. The Company
is repositioning its executive leadership with a refocus on
Canada and Mr. Smith will step in
to help through this transition period.
Mr. Smith is currently the President and owner of a
HVAC/mechanical contracting and service business and has extensive
capital markets and senior executive experience. In his
career he has been instrumental in assisting in financings,
restructuring and merger and acquisition transactions across a
variety of sectors as well growing, operating and building private
companies in the construction space. Mr. Smith holds a MBA
from Dalhousie University and is a
CFA. He currently serves on the Board of ImmunoPrecise
Antibodies Ltd. and Atlas Engineered Products Ltd.
"The Board thanks Mr. Wong for his valuable contributions and
understands his decision to step down and pursue other
opportunities," said Mr. Smith. "We wish him all the best in
his future endeavours."
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.
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, other non-recurring gains
or losses, onerous contract provision, and discontinued operations.
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, 2020 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