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;
Note:
(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.
*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, 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