VANCOUVER, BC, Jan. 27, 2023 /CNW/ – LITE ACCESS TECHNOLOGIES INC. (the “Company“) (TSXV: 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, reports its financial results for the fourth quarter and fiscal year ended September 30, 2022. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at www.sedar.com.
Mike Plotnikoff, CEO of Lite Access stated, “Since June of 2022, our Company entered an exciting transition phase and we have worked extremely hard to restructure Lite Access to include a strong and knowledgeable Board, experienced leadership, and management as well as competent construction partners that have enabled us the ability to mitigate losses associated with the past and move forward to put our Company on a trajectory toward profitability.
The revenue and cost reduction impacts we are now seeing as well as our operational progress are a direct result of implementing cost cutting measures and executing on properly vetted projects. The actions taken have placed Lite Access in a particularly well-positioned state to be able to handle projected growth strategies required to participate in the strong Canadian telecom market which is expected to undergo exponential growth to meet consumer demand for high-speed internet access.”
Mr. Plotnikoff continued, “Having a particularly solid fourth quarter and building momentum that has continued into a new fiscal year is a true reflection of the changes that have been implemented and the success that we are finally able to realize. In addition, the strategies in-place as well as in advanced stages of implementation will ensure Lite Access is regarded as the end-to-end solution provider for telecom network infrastructure, now and into the future.
While the actions taken have already influenced some near-term results, I am confident Lite Access will deliver ongoing improvement to its financial and operational performance. Being able to once again offer end-to-end solutions for customers is a true benefit to our valued clients. Our priority is to focus on realistic projects and implementing growth strategies that aim to provide profitable returns to the Company and shareholders.”
FINANCIAL HIGHLIGHTS FOR FOURTH QUARTER AND FISCAL 2022 (1):
- Total fiscal 2022 revenue of $5,776,549, representing an increase of 8% compared to revenue of $5,354,597 for fiscal 2021;
- Total Q4 2022 revenue $2,673,406; representing an increase of 221% versus $832,414 for Q4 2021;
- Gross margin for fiscal 2022 was $(162,799), or -3%, compared to $17,455, or 0%, over last year. Higher material and subtrade costs resulting from the global supply chain issue and labor shortage primarily contributed to the higher construction costs this year;
- Gross margin for Q4 2022 was $324,747 compared to $56,424 for Q4 2021;
- EBITDA* for fiscal 2022 was $(2,346,858) compared to $(1,766,384) for fiscal 2021. The decrease of EBITDA was mainly attributed to the higher material and labor costs this year, cooperation fees for cooperation projects with Ironman, partially offset by the lower operating expenses resulted from the cost cutting measures. The lower product sales this year also contributed to the lower EBITDA this year;
- Operating expenses for fiscal 2022 of $2,445,199 compared to $2,786,866 for fiscal 2021. The operating expenses as a percentage of revenue went down to 42% from 52% a year ago. During fiscal 2022, the Company signed the cooperation agreement with Ironman and recorded cooperation fees of $375,280 for the cooperation projects that Ironman completed. Excluding the cooperation fees, the operating expenses decreased by $716,949 compared to the amount reported last year. This substantial expense reduction was driven by various cost-cutting measures the Company has taken to lower the overhead expenses across most of the expense categories;
- Net loss from continuing operations of $(2,593,024) for fiscal 2022 compared to $(2,768,380) for fiscal 2021;
(1) As the financial results of LAT UK and AMEC have been classified as discontinued operations, certain prior year comparative figures have been reclassified to compare with the current year’s presentation.
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, and onerous contract provision. 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, 2022, 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
For further information: Lite Access Technologies Inc., Michael Plotnikoff, CEO, Phone: 1-604-247-4704, 20108 Logan Avenue, Langley, BC V3A 4L6, www.liteaccess.com; For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: [email protected], Contact Financial Corp., 208A – 980 West 1st Street, North Vancouver, BC V7P 3N4