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."
Business Highlights
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:
International Expansion
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.
Local Projects
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.
Haida Gwaii
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
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.
United Kingdom
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.
*Non-IFRS Measures
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.