Lite Access Technologies Reports Second Quarter Financial Results With Net Comprehensive Income in Q2 2021 and Appointment of Interim CEO

VANCOUVER, BC, June 1, 2021 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSXV: 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 second quarter ended March 31, 2021.  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 2021⁽¹⁾:

• Total Q2 2021 revenue of $2,030,877 compared to $275,646 for Q2 2020;
• Gross margin for Q2 2021 was $(48,649) compared to $(244,902) in Q2 2020;
• EBITDA* from continuing operations for Q2 2021 was $(659,049) compared to $(922,430) for Q2 2020;
• Net comprehensive loss from continuing operations of $(1,004,089) compared to a net comprehensive loss of $(1,128,612) for Q2 2020;
• Net comprehensive income of $3,154,823 for Q2 2021, which includes a gain from discontinued operations of $4,158,912, compared to a net comprehensive loss of $(2,018,886) for Q2 2020;
• Exited the quarter with $1,018,785 in cash and cash equivalents, positive working capital of $714,828, and maintains one undrawn credit facility of $500,000.

Note:

(1) On January 26, 2021, the UK business officially appointed FRP Advisory Trading Limited as administrators.  Accordingly, the Company no longer has control over the UK business as of the date of the appointment of the administrators.  As a result, LAT UK financial results have been classified as a discontinued operation as at March 31, 2021. Certain prior year comparative figures have been reclassified to compare with the current year presentation. 

Q2 2021 EVENTS:

• On March 5, 2021, the Company completed the acquisition of AMEC Cutting & Coring Limited ("AMEC"). AMEC complements Lite Access' fibre installation business, brings broader service offerings and expands its customer base.
• On March 1, 2021, Lite Access completed a fully subscribed non-brokered private placement for gross proceeds of $1.26 million, which strengthens the Company's financial position for its growth plans.
• On February 11, 2021, the Company announced it received a purchase order from Clearwater County, Alberta, totalling $1.18 million for the supply of microduct and fibre optic components. This purchase order was fulfilled during the quarter.
• On January 20, 2021, Lite Access reported that the City of Brooks, Alberta unanimously agreed to accept the Company's proposal to construct a city-wide broadband network valued at approximately $14.4 million, pending a successful negotiation of a contract.

SUBSEQUENT TO QUARTER:

• In the Fall of 2020, a region in southeastern British Columbia issued an RFP for the provision of project management and construction services, utilizing both aerial and underground fibre construction methodologies, to deploy fibre optic cable. Lite Access was successful in the RFP process with its proposal of approximately $800,000 for the services, the terms of which have been finalized in a signed contract. Construction for the project is planned to start and be completed in the Q4 2021 timeframe.
• In April 2021, the Company has been sole sourced for fiber optic construction and installation work for a period of 5 years for a significant sized city located on Vancouver Island, British Columbia.

Chui Wong, Interim CEO of Lite Access, stated, "Our second quarter results reflect a time of transition for the Company, as the UK business has been discontinued and we move forward with the improving outlook in terms of Canadian operations and domestic business opportunities.  With the completion of the acquisition of AMEC in March 2021, the integration has proceeded as planned and we expect to see revenue scale and cost synergies as we progress as a consolidated entity.  In fact, these quarterly results only reflect less than one month of the two combined entities and our expectation is to see further improvement across most major performance metrics in subsequent quarters."

"Additionally, we have made considerable progress from an internal integration perspective, and I commend our new General Manager of Canada, Tony Curkovic, for his operational leadership.  He has worked tirelessly onsite to expedite the Company's growth and path to profitability by optimizing execution in the field and by implementing robust structure and procedures.  He and the team are well-positioned to ensure consistent and efficient delivery of projects."

Mr. Wong continued, "The Company continues discussions with the City of Brooks, Alberta on a $14.4 million contract (see press release dated January 20, 2021) and with business development activities with various government municipalities and funding in Canada to take advantage of the infrastructure buildout and work-from-home movement.  Canadian market and business conditions continue to improve and provide a sustainable opportunity for our Company's growth.  Proposal activity in Canada has been and continues to be much busier than normal and with an increasing pipeline of bid opportunities we expect to win more potential awards."

Mr. Wong summarized, "With the Company's focus squarely now on Canada, the completion of the acquisition of AMEC is expected to result in significant cost savings through economies of scale and an expected boost in top-line revenue due to a wider customer base and service offerings, yielding a more robust and resilient Canadian business.  Our plan will be to continue to focus on operational execution, continue to build through organic growth as well as accelerate our growth through subsequent acquisitions. We remain confident that we are building a business from a strong base that can scale and drive a more sustainable and profitable operation going forward."

The Company also announces that Chui Wong is stepping down as the Company's Interim CEO effective June 4, 2021 to pursue other opportunities.  Greg Smith, Lite Access' Chairman, will assume the CEO position, on an interim basis, on June 4, 2021. The Company is repositioning its executive leadership with a refocus on Canada and Mr. Smith will step in to help through this transition period.  

Mr. Smith is currently the President and owner of a HVAC/mechanical contracting and service business and has extensive capital markets and senior executive experience.  In his career he has been instrumental in assisting in financings, restructuring and merger and acquisition transactions across a variety of sectors as well growing, operating and building private companies in the construction space.  Mr. Smith holds a MBA from Dalhousie University and is a CFA.  He currently serves on the Board of ImmunoPrecise Antibodies Ltd. and Atlas Engineered Products Ltd.  

"The Board thanks Mr. Wong for his valuable contributions and understands his decision to step down and pursue other opportunities," said Mr. Smith.  "We wish him all the best in his future endeavours."

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, 2020 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., Chui Wong, Interim CEO, Phone: [phone], 20108 Logan Avenue, Langley, BC V3A 4L6, www.liteaccess.com; For investor relations please contact: Rob Gamley, Phone: [phone], Email: [email protected], Contact Financial Corp., 204 - 998 Harbourside Dr., North Vancouver, BC V7P 3T2

Related Links

http://liteaccess.com/