VANCOUVER, BC, May 30, 2022
/CNW/ - LITE ACCESS TECHNOLOGIES INC. (the
"Company") (TSXV: LTE) (OTC: LTCCF), a world leader in the
fibre optic products and advanced installation methodologies, today
reported its financial results for the second quarter ended
March 31, 2022. 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 2022:
- Total Q2 2022 revenue of $992,626
versus $2,030,877 in Q2 2021. The
lower revenue was mainly attributable to decreased product sales
and initial ramp up of the Brooks project, which negatively
impacted the revenue generation for the quarter.
- Gross margin for Q2 2022 of $(167,369) compared to $(48,649) in Q2 2021. The decrease of gross
margin was primarily attributed to higher construction costs,
including labour, fuel and amortization costs;
- Operating expenses of $796,531
for Q2 2022, down 16% compared to $943,571 in Q2 2021;
- EBITDA* for the three months ended March
31, 2022 was $(692,772) versus
$(659,049) in the comparative
quarter;
- Net loss from continuing operations of $963,900 for Q2 2022 compared to loss of
$992,220 in Q2 2021;
- Net comprehensive loss of $979,988 for Q2 2022 for compared to income of
$3,154,823 for Q2 2021.
Second quarter revenues were negatively impacted by project
delays and adverse weather conditions which decreased construction
activities during the quarter. Additionally, higher labour
and fuel costs contributed to higher construction costs, providing
a formidable headwind impacting financial performance.
Interim CEO Greg Smith
emphasized, "Helping our business turn the corner is Phase 1
construction underway for the City of Brooks' Next Generation
Broadband Network, valued at $13.6
million and, as construction takes place and with
Phase 2 to immediately follow, additional revenue-generating
opportunities will arise whereby individual connections will become
part of the overall build which we expect to positively impact our
financials and sets us up to yield improved results in upcoming
quarters."
"As early as June we expect to receive our final
dividend payment of approximately £274,000 (CAD$450,000) from UK business appointed
administrator, FRP Advisory Trading Limited (see press release
dated December 8, 2021)," added Mr.
Smith. "This potential non-dilutive capital will help bolster
our balance sheet and give us runway as we rollout construction on
fibre projects. Our sales pipeline continues to fill with
solid opportunities, and we are confident that Lite Access is on a
better trajectory for the full fiscal year 2022 and into
2023."
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, 2021 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