LITE ACCESS TECHNOLOGIES REPORTS Q3 2022 FINANCIAL RESULTS; REVENUES UP 69% OVER Q3 2021
VANCOUVER, BC, Aug. 29, 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 third quarter ended June 30, 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 Q3 2022:
- Total Q3 2022 revenue of $1,395,713, representing an increase of 69%, versus $823,456 for Q3 2021;
- Gross margin for three months ended June 30, 2022 was $(167,851) compared to $(6,932) for the three months ended June 30, 2021. Gross margin as a percentage of revenue went down to -12% this year, primarily attributed to higher construction costs compared to the third quarter of last year;
- Operating expenses of $522,803 for Q3 2022, down 32% compared to $770,181 in Q3 2021. Operating expenses for the nine months ended June 30, 2022 was $1,722,008, down 28% from $2,391,920 reported last year driven by cost cutting initiatives the Company has taken to lower the overhead expenses across the majority of the expense categories;
- EBITDA* of $(575,178) for Q3 2022 compared to $(450,648) for Q3 2021; The decrease of EBITDA mainly attributable to higher material and labour costs this year, partially offset by the lower operating expenses resulting from the cost cutting measures;
- Net comprehensive loss of $(962,197) for Q3 2022 compared to a loss of $(890,672) in Q3 2022.
"We are satisfied with the progress Lite Access has made as we continue ramping up our top-line revenues, prudently managing expenses and strengthening our financial flexibility," said Mike Plotnikoff, Interim CEO of Lite Access. "We have a clear focus on the deployment of fibre network infrastructure and, as part of our growth strategy, recently closed a Cooperation Agreement with Ironman Directional Drilling Ltd. (see press release dated August 19, 2022). We are very excited to be collaborating with Ironman and expect this strategic partnership to be mutually beneficial, resulting in additional project flow and opportunities to bolster sales going forward. Importantly, our Company's new board and management team consists of individuals possessing industry knowledge and the requisite skillsets to support our growth objectives."
Mr. Plotnikoff continued, "I firmly believe Lite Access is particularly well-positioned for sustainable growth given our increased execution capabilities and operational improvement, combined with the strong industry outlook as Canadian market and business conditions continue to improve. The telecom network infrastructure industry is expected to undergo exponential growth to meet the consumer demand for high-speed internet access. We believe we have all the ingredients to steadily improve and remain optimistic in our outlook for the rest of 2022 through hard work and determination."
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.
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).
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
Lite Access Technologies Inc., Mike Plotnikoff, Interim CEO, Phone: 1-604-247-4704, 20108 Logan Avenue, Langley, BC V3A 4L6, www.liteaccess.com; For Lite Access investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: [email protected], Contact Financial Corp., 208A - 980 1st ST W, North Vancouver, BC V7P 3N4
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