VANCOUVER, BC, Aug. 28, 2020 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE: 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 third quarter ended June 30, 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 THIRD QUARTER:
- Total Q3 2020 revenue of $6,428,504 compared to $1,377,726 for Q3 2019 and $2,036,507 for Q2 2020, representing an increase of 367% and 216%, respectively,
- Gross margin for Q3 2020 was $1,156,064, or 18%, compared to $(416,638), or -30%, in Q3 2019 and $(210,330), or -10%, in Q2 2020;
- EBITDA* for Q3 2020 was $(501,374) compared to $(1,584,450) for Q3 2019 and $(1,638,109) for Q2 2020;
- Net comprehensive loss of $1,131,264 for Q3 2020 compared to a loss of $2,235,364 in Q3 2019 and a loss of $2,018,876 in Q2 2020;
- Working capital of $2,462,930 at June 30, 2020.
"Our third quarter was one of growth through an extraordinarily uncertain time," said Carlo Shimoon, President & CEO of Lite Access. "On a year-over-year basis, revenue increased 367% over Q3 2019 and gross margin increased to 18% compared to -30% in 2019 with a significant reduction in net loss. On the back of three substantial contracts with CityFibre in the UK, and the opportunities that present themselves here in Canada, we expect to deliver significant revenue, gross margin and EBITDA improvements for the balance of fiscal 2020 and throughout fiscal 2021. Management is focused on the execution of our Contracts and delivering continuous improvement in our financial performance, month-over-month and quarter-over-quarter.
This is the beginning of a significant and sustainable growth period for Lite Access as our UK contracts are for large scale, multi-year rollouts and we anticipate ramping up operations in additional cities to meet the demands of our current and future customers. Since January 2020, our Company has progressively commenced and scaled up its operations in Lowestoft followed by additional city deployments in Bury St. Edmunds and Cambridge, requiring Lite Access to grow to approximately 250 employees in approximately 6 months, during a global pandemic.
While COVID-19 did negatively impact our financial performance for the quarter, we continued to work closely with our clients and meet our contractual obligations. I would like to sincerely thank all our staff for their continued commitment and support that allowed us to grow during this truly unprecedented time. We will continue to adapt to best practices, systems, policies and procedures in order to keep our employees safe and healthy."
HIGHLIGHTS SUBSEQUENT TO THE THIRD QUARTER:
On August 20, 2020, the Company met the criteria to accelerate the expiry date of the outstanding warrants and has chosen to accelerate the expiry date of the warrants to September 11, 2020, primarily because of the significant growth Lite Access is currently experiencing quarter-over-quarter and anticipating going into fiscal 2021, the result of the Company's billing cycle moving from every two weeks to every month, and the result of a slower than anticipated ramp-up due to COVID-19.
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.
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
For further information: please contact: Lite Access Technologies Inc., Carlo Shimoon, CEO, Phone: 1-604-247-4704, Unit 5 - 20678 Duncan Way, Langley, BC V3A 7A3, www.liteaccess.com; 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