VANCOUVER, BC, Jan. 28, 2022 /CNW/ – LITE ACCESS TECHNOLOGIES INC. (the “Company“) (TSXV: LTE) (OTC: 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 fourth quarter and fiscal year ended September 30, 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 FOURTH QUARTER AND FISCAL YEAR END 2021(1):
- Total fiscal 2021 revenue of $7,187,698 representing an increase of 204% compared to revenue of $2,366,752 for fiscal 2020;
- Total Q4 2021 revenue of $1,540,618 representing an increase of 102% versus $761,526 for Q4 2020;
- Gross margin for the year ended September 30, 2021 was $584,674, or 8% compared to ($441,308), or -19% over the same period last year;
- EBITDA* for fiscal 2021 was ($1,456,160) compared to ($2,362,207) for fiscal 2020. Operating expenses went down to 47% of the revenue from 129% for the same period of last year resulted from the synergy saving and cost cutting initiatives executed this year;
- EBITDA* for Q4 2021 of ($14,996) versus ($574,883) for Q4 2020;
- Comprehensive net income of $2,147,274 for fiscal 2021 compared to comprehensive net loss of ($17,272,126) for fiscal 2020;
- Exited fiscal 2021 with positive working capital of $439,461 compared to negative working capital of ($3,819,547) for fiscal 2020.
(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.
SUBSEQUENT TO YEAR END
The Company received $528,000 interim distribution payment from the United Kingdom business appointed administrator, FRP Advisory Trading Ltd., with respect to the wind-up of Lite Access Technologies (U.K.) Ltd. (LAT UK). Discussions continue with the administrator and we anticipate a further dividend in the first half of calendar 2022.
“Significant progress took place during the fiscal year with the Company’s focus strictly on Canada,” said Greg Smith, Chairman and Interim CEO of Lite Access. “We have made solid progress on the goals we set out to accomplish at the beginning of the year, which focused on bolstering our operational platform to build a more robust and sustainable and business. To highlight a few, we successfully completed the acquisition and integration of AMEC and increased our top-line revenue over 200%. Additionally, economies of scale and further cost saving measures reduced operating expenses to 47% of revenue from 129%. The ratio of overhead to revenue is heading in the right direction, but will continue to remain a key priority.
“We are in the final stages towards signing the Master Sales Agreement (“MSA”) with the City of Brooks, Alberta for the initial $14.4 million proposal (see press release dated October 27, 2021) and remain highly active with both new construction and additional project phases in many regions of British Columbia and Alberta where we have earned a strong reputation,” added Mr. Smith. “Our priorities will be to maintain our focus on operational execution, continuing to build through organic growth as well as accelerate our growth through subsequent tactical acquisitions that would be highly accretive.”
Mr. Smith concluded, “We have developed a strong base through the important steps taken in fiscal 2021 and we have the ability to scale and take advantage of the 5G and broadband buildout that is rapidly underway both regionally and globally. The infrastructure funding environment and our sales pipeline remain robust and we are confident we have the operational capabilities to further improve across all financial metrics for an even stronger year in fiscal 2022.
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.
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