VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 31, 2017) - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE:LTE)(OTC PINK:LTCCF), a total integrated fibre optic solutions provider, yesterday reported fiscal fourth quarter and full fiscal year 2016 financial results for the period ended September 30, 2016. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Financial Highlights for Fiscal 2016:
- Record revenue of $12,605,075 for fiscal 2016, an increase of 1,083%, versus $1,065,582 in 2015;
- Record net income after taxes of $1,457,507 for fiscal 2106 compared to a net loss of $1,626,970 in 2015;
- Adjusted EBITDA* of $2,644,032 (21% of total revenue) in fiscal 2016 versus ($1,305,755) in 2015;
- Record earnings per share of $0.05 for fiscal 2016 compared to a loss per share of $0.08 in 2015;
- Operating expenses for 2016 fiscal year of $2,590,259 includes a non-cash $662,949 expense associated with stock based compensation. With these costs removed Lite Access' expenses increased by 5.9% versus the same period in fiscal 2015. Increased expenses are also partly attributed to investment in launching UK operations to support expanding international demand;
- Third consecutive quarter of profitability and third consecutive quarter of positive adjusted EBITDA
Mike Plotnikoff, CEO of Lite Access, stated, "Fiscal 2016 was a transformational year for Lite Access characterized by record annual revenue, net income and EBITDA. We continue to attract industry leaders to use our best-in-class technologies as the solution of choice for connecting fibre in the most cost-effective, timely, future-proof and non-intrusive manner." Mr. Plotnikoff continued, "We have been moving forward aggressively with domestic and international sales as well as certification of partners globally to create lasting business for us down the line. These efforts have resulted in a rapidly increasing number of new product and service orders and tenders from around the world. But perhaps the most exciting and promising opportunity is the result of the Company's decision to accelerate our expansion into the United Kingdom in direct response to the considerable interest and demand from UK-based telecom majors. We believe these efforts will reward the Company in 2017 and beyond. We anticipate fiscal 2017 to be another strong year of profit and revenue growth."
Apart from the significant revenue increase 2016 was also a year of significant investment in new systems and infrastructure to support further growth including a new head office and expanded warehouse facilities. Other significant highlights include:
In 2016, Lite Access continued one of its key strategic objectives to expand its international footprint. The Company increased its network of certified installation partners to over 20 and secured large product orders for its leading fibre connectivity solutions around the world, such as: South Africa, Peru, Trinidad and Tobago, Yukon Territories, Washington, West Virginia, and Nevada to name a handful. The Company further demonstrated its ability to scale across additional markets and provide its solutions globally while keeping sales and marketing expenses in check.
Adoption of the Company's fibre deployment methodologies and product portfolio has spread rapidly and broadly on the domestic front as well in 2016. The Company continued its momentum with local municipal builds and ongoing, multiple expansion projects, such as Chilliwack, Langley and Coquitlam. In many cases, the Company's proprietary products are now being specified into municipal builds which the Company expects will result in increased business.
The largest contract in the Company's history was secured for the deployment of a fibre optic network for GwaiiTel Society in Haida Gwaii, British Columbia. Construction of the fibre build commenced in January 2016 and was completed ahead of schedule and on budget in March 2016. Lite Access remains committed to working closely with both First Nations in Canada and Native Americans in the United States to solidify strong relationships. These partnerships are expected to continue to provide Lite Access with opportunities to collaborate on future projects and increase sales.
South Africa provided another opportunity for the Company to showcase its state-of-the-art technologies and its unique ability to re-invent new and more efficient installation processes that are not only adaptable to different locations and infrastructure but can successfully displace traditional construction methods in any part of the globe. The Company received its first of many follow-on purchase orders for its specially designed Lite-X-Tend® product. This revolutionary new product is a home-drop solution for last mile connections and reduces the significant costs and complications associated with last mile connections. South Africa is considered virgin territory and a tremendous potential market opportunity as it jumps into the digital age with aggressive fibre-to-the-home (FTTH) rollouts.
In 2016, the Company continued its international expansion by launching a new operations office in the United Kingdom following market research and meeting with local Service Providers. The Company identified significant demand and opportunity to take advantage of its proven air-blown fibre technologies, microduct and micro-trench deployment techniques. Lite Access trained work crews and invested in new plant and equipment to support customer deployments. The Company has now completed over 500 homes of a large scale project for a major UK network operator rolling out superfast, fibre-to-the-home. Launching into the UK market has proven successful and an ever expanding initiative with the potential to drive significant revenue growth.
About Lite Access
Lite Access is a world leader in Microduct and fibre optic technologies. Using its specially designed and innovative micro-trench and alternate methods of deployment, Lite Access' proprietary Microduct technology extends a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, government and educational institutions, and emergency response facilities. Providing a full portfolio of fibre connectivity solutions for many types of Telecom infrastructure, Lite Access has successfully deployed thousands of kilometres of Microduct networks throughout North and South America, the United Kingdom, the Caribbean, Australia and Asia.
Lite Access' products have been deployed in many high-profile communication networks including the Whistler 2010 Winter Olympic facilities, builds within the state of New York including Central Park, the Las Vegas strip and surrounding areas of Nevada, fibre to the home at Stanford University and numerous other locations around the globe that have adopted Lite Access as the "solution of choice" for future proof fibre optic connectivity.
Adjusted 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. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted 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 Adjusted 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' Adjusted 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 the Company's most recent Management Discussion & Analysis (MD&A) dated August 29, 2016 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, the Company 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.