Lite Access Positioned for Substantial Growth from United Kingdom Operations
VANCOUVER, Jan. 30, 2018 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE: LTE)(OTC PINK: LTCCF), a world leader in the use of innovative and proven micro trenching and 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 fiscal fourth quarter and full fiscal year 2017 financial results for the period ended September 30, 2017. The audited financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
For the year ended September 30, 2017, the Company generated revenues of $8,334,658 (2016: $12,605,075), had comprehensive loss of $8,115,837 (2016: comprehensive income of $1,457,507), and an adjusted EBITDA* of $(3,888,852) (2017: $2,644,032). Adjusted EBITDA excludes goodwill impairment, share-based payments, interest and amortization.
As at September 30, 2017, the Company has invested approximately £3.4 million ($5.7 million CAD) to establish operations and prepare for expansion in the UK. The Company expects to deliver significant growth in 2018 and has recently announced that it is strengthening the senior management team as it completes the foundation phase and enters the growth phase of the business.
Adjusted EBITDA results are in line with expectations and consistent with the investment in capital and operating expenditures required to deliver the Company's dual strategy of securing recurring project revenues in North America and delivering growth in international markets.
The Company has a strong balance sheet and is well positioned for sustainable growth. The strategic deployment of cash to date has allowed the Company to retain sufficient cash reserves of $14,338,088 (as at September 30, 2017) to fund the early stage, working capital requirements of the initial growth phase of the business.
In March 2017, the Company completed a "bought deal" financing of 9.09 million Common Shares at $2.25 per share, for gross proceeds of $20,452,500. As at September 30, 2017, the Company had 43,374,832 Common Shares issued and outstanding.
Mike Plotnikoff, CEO of Lite Access, stated, "A significant portion of our revenues are derived from one-time contracts as was the case in fiscal 2016 with the majority of revenues from one project in Haida Gwaii, so I am very pleased with fiscal 2017's top-line and equal contribution to those revenues from both our core business segments which is removing some of the lumpiness from our revenues. Our balance sheet is robust, and our UK operations are well established with significant demand for our expertise and more efficient fibre deployment methodologies."
The results of the Company's dual strategy for domestic and international markets will mean that revenues and margins are increasingly being driven by major project opportunities, particularly in the UK. Whilst the Company can make a case for continuing to carry the Goodwill, without impairment, in to 2018, the Board and Management believes the Company has adequate Balance Sheet strength to fully impair and write down the Goodwill in 2017. This prudent, non-cash, transaction serves to make the Company more transparent and financially credible for major customers and international markets and is consistent with the requirements of International Financial Reporting Standards.
"We had many one-time costs and accounting considerations which impacted our bottom line. However, by stripping out Goodwill, share-based compensation and amortization, our loss was significantly less and consistent with our expectations," emphasized Mr. Plotnikoff. "Despite unforeseeable events and unexpected delays in fibre rollouts and funding which are beyond our control, we accomplished a considerable amount in a short amount of time, especially in terms of proving our innovative technologies, obtaining permitting approvals, scaling our work crews leading to significant contracts with two major UK telecoms companies subsequent to our fiscal year-end."
"The Company has a clearly defined dual strategy of generating recurring business to enhance earnings consistency in Canada, whilst also allowing for the ability to rapidly scale to meet new opportunities from major projects in domestic and international markets. We are strengthening the senior management team and Lite Access' Board as part of the preparation for the Company to deliver sustainable growth from substantial opportunities right now. We are proud of our team and their achievements, and the Company's reputation for innovation in the industry. We would like to thank our valued shareholders for their support as we've prepared the Company for growth."
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 British Columbia, the USA and Alberta 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, 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.
Adjusted 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. Adjusted 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 Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted 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 Adjusted 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' Adjusted 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 period ended December 31, 2016 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
For further information: For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: [email protected], Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC V7Y 1G5