LITE ACCESS TECHNOLOGIES REPORTS 2019 Q4 AND YEAR END FINANCIAL RESULTS – REVENUES UP 26% OVER FISCAL 2018
January 29, 2020 – Vancouver, British Columbia. 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, yesterday reported its financial results for the fourth quarter and fiscal year ended September 30, 2019. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
“Fiscal 2019 was certainly a challenging year as we transitioned from an investment phase to an operational and growth phase of the UK business. Even so we managed to increase annual revenue 26% to $12.2 million and, in fact, we’ve generated year-over-year revenue growth in each of the last three years,” said Carlo Shimoon, President & CEO of Lite Access. Furthermore, we have experienced meaningful improvements in gross margin and EBITDA through a combination of right-sizing operations and cost reductions all while completing works in the UK under difficult commercial terms. If we consider FY2018 our UK Investment year, then it’s fair to say that FY2019 was the year we understood the importance of having fair commercial terms in our contracts.”
“As of today, we have achieved a record $33 million backlog and we do not see a need to invest further to continue our organic growth. Our UK construction works in Lowestoft and most recently announced second city (see press releases dated October 23, 2019 and January 22, 2020) is on schedule to ramp up to full production by the end of March. Canadian operations have shown significant growth and improvement year over year as well, and we foresee replicating this success by securing more opportunities in the Canadian market. We are confident that our business growth will continue to accelerate and fully expect to grow revenue, backlog and profitability throughout 2020 as many of our strategic initiatives, projects and partnerships reach fruition. Highlighted by a record backlog, this sets the stage for improved financial performance going forward. ”
Financial Highlights for Fiscal 2019:
• Total 2019 revenue of $12,194,874, representing an increase of 26%, versus $9,698,526 for 2018;
• Gross margin for the year ended September 30, 2019 was $1,061,926, or 9% compared to $(2,954,977), or -30%, over the same period last year;
• EBITDA* for 2019 was $(3,827,369) compared to $(8,383,838) for 2018;
• Comprehensive net loss of $(5,440,890) for 2019 compared to $(10,257,012) for 2018;
• Operating expenses of $6,329,065 for 2019, resulting in a 19% reduction over the same period last year (FY 2018: $7,827,412);
• Working capital of $2,153,813 as at September 30, 2019.
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.
For further information please contact:
Lite Access Technologies Inc.
Carlo Shimoon, CEO
Unit 5 – 20678 Duncan Way
Langley, BC V3A 7A3
For investor relations please contact:
Contact Financial Corp.
810 – 609 Granville St.
Vancouver, BC V7Y 1G5
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, share-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 period ended June 30, 2018 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.