BOCA RATON, Fla., Aug. 24, 2022 /CNW/ - EasTower Wireless Inc. ("EasTower" or the "Company") (TSXV: ESTW), a US-based provider of next generation wireless communications infrastructure specializing in the construction, installation, and maintenance of 5G and 4G wireless telecommunication networks, reported financial results and operating highlights today for the three and six months ended June 30, 2022. All amounts indicated are in US dollars unless otherwise indicated.
The Company's financial statements for the three and six months ended June 30, 2022, and accompanying Management's Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR (www.sedar.com) and posted on the Company's web site at https://www.eastower.com.
"We have been experiencing an abundance of contracts and purchase orders from major telecoms, OEMs and turf venders, and our focus remains on scaling our business through additional crew counts in order to address the high demand of work we are experiencing," said Vlado P. Hreljanovic, Chief Executive Officer of EasTower. "Government funded initiatives to upgrade the nation's telecom infrastructure is an integral part of the United States long term infrastructure plan. This is creating a backlog of work for EasTower and others that is expected to continue for several years to come."
Mr. Hreljanovic added, "As a direct beneficiary of this substantial demand for 5G buildout across America, with limited resources, we reported significant revenue growth year to date and in Q2 compared to last year, and more importantly we reported strong gross margins. Our high margin business equips us with a significant opportunity to reach profitability in the near term and that is a key focus of ours. We remain focused on growing our crew count and provide long-term 5G solutions in the Southeast region of the United States. We are confident that the second half of the year will experience strong growth over the first six months of the year due to the increased customer base and increase in the implementation of additional crews."
Q2 2022 Highlights
- Total Revenue increased by 55% to $363K in Q2 2022 compared to $234K in Q2 2021.
- Cost of Sales decreased by 21% to $164K in Q2 2022 compared to $207K in Q2 2021.
- Gross Profit was $199K in Q2 2022 compared to $27K in Q2 2021, an increase of $172K.
- Total comprehensive loss for Q2 2022 was $(716K) compared to comprehensive loss of $(568K) in Q2 2021.
- As of June 30, 2022, the Company had cash and cash equivalents of $0.3 million, compared to $0.1 million as of December 31, 2021.
YTD 2022 Highlights
- Total Revenue increased by 28% to $788K in the first half of 2022 compared to $617K in the same period for 2021.
- Cost of Sales decreased by 3% to $370K in the first half of 2022 compared to $382K in the same period in 2021.
- Gross Profit increased by 78% to $418K in the first half of 2022 compared to $235K in the same period in 2021.
- Total comprehensive loss for the first half of 2022 was $(2.9) million compared to comprehensive loss of $(380K) in the same period in 2021. The loss in the first half of the year was mainly attributed to the one-time going public costs the Company incurred from the first quarter of 2022.
Operational Highlights
During the quarter, the Company:
- Won additional new site builds from the largest national owned and operated tower company in the U.S.
- Signed a Master Service Agreement with one of the largest owned and operated tower companies in the world providing the Company with an opportunity to support this customer in the Kentucky and Tennessee markets.
Subsequent to the quarter, as announced on August 22, 2022, the Company closed a fully subscribed private placement for gross proceeds of CAD$516K.
About EasTower Wireless Inc.
The Company, through its wholly owned subsidiary, EasTower Communications Inc., is a U.S. provider of wireless infrastructure network build-out and related service within America. The Company specializes in the construction, installation, upgrading, and maintenance of next generation wireless infrastructure networks, including rapidly growing 5G, current 4G and small cell deployments as well as the least know and largest infrastructure plays in US history, the first responder or FirstNet initiative. The Company's diverse, top-tier customer base includes major telecom providers, global original equipment manufacturers (OEMs), corporations and federal government agencies. The Company is currently operating in the State of Florida. For more information, please visit www.eastowerwireless.com.