Lite Access Technologies Reports Q2 2020 Financial Results and Provides Business Outlook
VANCOUVER, June 1, 2020 /CNW/ - 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, today reported its financial results for the second quarter ended March 31, 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 SECOND QUARTER:
"In fiscal Q2 we took immediate and strategic actions to adjust to the current market conditions stemming from the COVID-19 global pandemic," stated Carlo Shimoon, President & CEO of Lite Access. "While there have been no site shutdowns, for the safety of our crews, we adapted our operations to comply with applicable protocols which affected productivity during this period. As well, Q2 was dominated with heavy ramp up costs in Lowestoft and Bury St Edmunds which affected our financial performance for the quarter. The good news is that Q3 and Q4 should demonstrate improvement quarter over quarter as revenue is recognized from the two cities and we bring online Cambridge as well. This marks the beginning of a significant growth period in which Lite Access will be delivering on its backlog."
"Our construction services are deemed essential for the maintenance and build of critical telecom infrastructure. COVID-19 challenged our industry, in addition to many other industries, with updated government guidelines and restrictions for operations necessary to ensure the health and safety of staff and reduce the virus' spread. Despite these complications, it was invigorating to see our team's dedication as we rapidly adapted to change and managed to meet client demand. We are tremendously grateful to all our staff and crews in both Canada and the UK for what they are doing in essential services and their commitment to seeing projects succeed."
HIGHLIGHTS SUBSEQUENT TO THE SECOND QUARTER:
Thus far, in the third quarter, the Company's projects in Lowestoft, Bury St Edmunds and Cambridge continue to move forward, although certain activities have been safely scaled back at project sites as the current pandemic is brought under control.
The Company continues to execute on its projects and currently expects them to be completed by the project deadlines. If successful in meeting KPIs on these initial contracts with CityFibre, Lite Access expects many more major fibre infrastructure builds across towns and cities throughout the UK as the partnership progresses.
By summer 2020, CityFibre plans to award more than £1.5 billion in network construction contracts for newly announced full city builds, enabling selected construction partners such as Lite Access to secure and mobilise their workforce in preparation for network construction to begin.
Lite Access has reached major contract milestones and has developed a strategy to capitalize on the identified opportunities, focusing on revenue growth, profitability and cash flow. The Company's specific priorities include a commitment to health & safety, reliability, operational excellence and capital discipline to achieve and sustain strong operational and financial performance.
To pursue this strategy the Company believes in building high performance teams that deliver productivity. Specifically, management has created a daily reporting process that collects data from the field (crews), processes that data in real-time and presents the KPI results daily to management. Management meets daily and uses the reporting to identify issues before they become problems and overall allows the Company to steer the business toward continual improvement.
Furthermore, a multi-channel reporting structure is utilized to ensure there are checks and balances in the daily reporting back to corporate office.
"Our balance sheet is solid, our team is committed to optimizing operations to ensure we meet our targets, and we are moving ahead aggressively with our growth strategy," noted Mr. Shimoon. "We have consistently demonstrated capital discipline, and we continue to find ways to optimize field operations to improve process efficiency and customer satisfaction. Our contract backlog remains healthy and we hope to continue to increase it. As we move into the back half of fiscal 2020, we anticipate significant revenue increases and improved EBITDA growth over the course of delivery. We believe this will provide shareholders with visibility to materially increasing value for many quarters to come."
Mr. Shimoon concluded, "With millions of people working and learning from home, many are getting firsthand experience on the limitations of today's technological infrastructure. The necessity for fast full-fibre broadband has never been more obvious with the number of remote workers continuing to rise globally and, in fact, in the UK more than half the population is expected to work from home by the end of 2020."1
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
Company Codes: OTC-PINK:LTCCF, TorontoVE:LTE
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