TWER Towerstream Corporation (CE)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

_________________

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

_________________

 

Date of Report (Date of earliest event reported): November 10, 2014

 

Towerstream Corporation

(Exact Name of Registrant as Specified in Charter)

 

Delaware		001-33449		20-8259086
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

88 Silva Lane Middletown, RI		02842
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (401) 848-5848

 

(Former name or former address, if changed since last report)

 

 

---

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 DFR 240.14a-12)

 

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ] Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02.     Results of Operations and Financial Condition.

Item 7.01.     Regulation FD Disclosure.

 

On November 10, 2014, Towerstream Corporation (the “Company”) issued a press release (the “Press Release”) announcing results for the three and nine months ended September 30, 2014. A copy of the press release is attached to this report as Exhibit 99.1 and is being furnished pursuant to Items 2.02 and 7.01 and shall not be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The furnishing of the information in this Current Report on Form 8-K is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information contained in this Current Report on Form 8-K constitutes material investor information that is not otherwise publicly available.

 

The Company uses certain Non-GAAP measures to monitor the Company's business performance and that of its segments. These Non-GAAP measures are not recognized under generally accepted accounting principles ("GAAP"). Accordingly, investors are cautioned about using or relying on these measures as alternatives to recognized GAAP measures. The Company’s methods of calculating these measures may not be comparable to similar measures presented by other companies.

 

A definition of key Non-GAAP measures that the Company employs, and how it uses them to monitor business performance, are as follows:

 

“Adjusted EBITDA” represents net income (loss) before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, deferred rent expense, other non-operating income or expenses, as well as gain or loss on (i) disposal of property and equipment, (ii) nonmonetary transactions, and (iii) business acquisitions.

 

“Adjusted Market EBITDA” also excludes corporate overhead expenses and other centralized costs. The Company believes that Adjusted Market EBITDA trends are insightful indicators of its markets’ relative performance, and whether its markets are able to produce sufficient market cash flow to fund working capital and capital expenditure needs.

 

“EBITDA” represents net income (loss) before interest, income taxes, depreciation and amortization.

 

“Market Cash Flow” represents the amount of cash generated in a market after deducting a market’s direct operating expenses from that market’s revenues. Market Cash Flow does not include (i) centralized costs which support all markets collectively or (ii) any network related capital expenditures incurred in a market.

 

“Net Cash Flows” represents Adjusted EBITDA less capital expenditures.

 

 

 

The following reconciliations of non-GAAP measures to GAAP financial measures are presented in the attached press release: (i) Adjusted Market EBITDA to Net Loss, Fixed Wireless Segment, (ii) Adjusted EBITDA to Net Loss, and (iii) Net Cash Flow to Net Cash Used in Operating Activities.

 

Any statements that are not historical facts contained in this Form 8-K are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”) which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Forward-looking statements, include certain statements regarding intent, beliefs, expectations, projections, forecasts and plans, which are subject to numerous assumptions, risks, and uncertainties. A number of factors described from time to time in our periodic filings with the Securities and Exchange Commission could cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. All forward-looking statements included in this Form 8-K are based on information available at the time of the report. We assume no obligation to update any forward-looking statement. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

 

Item 9.01.     Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1	Press Release, dated November 10, 2014

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

TOWERSTREAM CORPORATION
Dated: November 10, 2014		By: /s/ Joseph P. Hernon
		Joseph P. Hernon
		Chief Financial Officer

 

 

 

EXHIBIT INDEX

 

 

Exhibit No.	Description
99.1	Press Release, dated November 10, 2014

 

 

 

 

Exhibit 99.1

 

Towerstream Reports Third Quarter 2014 Results

 

MIDDLETOWN, R.I., November 10, 2014 – Towerstream Corporation (NASDAQ: TWER) (the “Company”), a leading 4G and Small Cell Rooftop Tower company, announced results for the third quarter ended September 30, 2014.

 

Third Quarter Operating Highlights

 

HetNets Tower Corporation Subsidiary

 

●

Revenues increased to $0.8 million in the third quarter 2014 compared to $0.5 million in the third quarter 2013.

●

Expanded Wi-Fi locations for large cable company customer by approximately 20% over the twelve months ended September 30, 2014.

 

Towerstream Corporation

 

●

Total customer average revenue per user (“ARPU”) totaled $769 during the third quarter 2014 as compared to $760 for the second quarter 2014 and $747 for the third quarter 2013.

●

ARPU of new customers totaled $651 during the third quarter 2014 as compared to $626 for the second quarter 2014 and $648 for the third quarter 2013.

●

Customer churn for the third quarter 2014 was 1.69% compared to 1.71% for the second quarter 2014 and the third quarter 2013.

●

New Cogent-like offering of 100 Mbps for $699 continues to gain traction with 22 customer installations and 17 buildings lit.

●

Completed a $35 million debt financing in October 2014.

 

Management Comments

 

"We are seeing increased activity in the densification of networks in major urban markets where our robust fixed wireless backhaul network provides us with a unique advantage over competing solutions" stated Jeff Thompson, President and Chief Executive Officer. "Carriers are now physically evaluating our rooftop locations for potential initial deployments and we believe the FCC’s newly issued new order, designed to streamline the regulatory process, will accelerate the deployment of small cell infrastructure."

 

"Our recently completed debt financing provides us with the capital needed to support the strategic growth objectives for our fixed wireless and shared wireless businesses" stated Joseph Hernon, Chief Financial Officer. "We have expanded the number of buildings powered with our 100 megabyte offering and are visiting potential locations for a second sales center designed to re-ignite growth in our fixed wireless segment."

 

 

 

Selected Financial Data and Key Operating Metrics

(All dollars are in thousands except ARPU)

		(Unaudited)
		Three months ended
		9/30/2014				6/30/2014				9/30/2013
Revenues		$	8,302			$	8,265			$	8,401
Gross margin
Consolidated			25	%			26	%			35	%
Fixed wireless			65	%			65	%			68	%
Capital expenditures
Fixed wireless		$	1,154			$	1,403			$	1,243
Shared wireless infrastructure			590				490				681
Corporate			22				205				200
Churn rate (1)			1.69	%			1.71	%			1.71	%
ARPU (1)		$	769			$	760			$	747
ARPU of new customers (1)			651				626				648
Cash and cash equivalents			11,891				17,289				32,794

 

(1)

See Non-GAAP Measures below for the definitions of Churn, ARPU and ARPU of new customers.

 

Consolidated Statement of Operations (Unaudited)

(All dollars are in thousands except per share amounts)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2014				2013				2014				2013
Revenues		$	8,302			$	8,401			$	24,946			$	24,912
Operating Expenses
Cost of revenues			6,211				5,445				18,169				15,592
Depreciation and amortization			3,318				3,846				10,295				11,653
Customer support			1,244				1,221				3,563				3,800
Sales and marketing			1,353				1,369				4,174				4,333
General and administrative			2,382				2,600				7,726				8,374
Total Operating Expenses			14,508				14,481				43,927				43,752
Operating Loss			(6,206	)			(6,080	)			(18,981	)			(18,840	)
Other Income/(Expense)
Gain on business acquisition			-				-				-				1,004
Interest expense, net			(44	)			(60	)			(166	)			(154	)
Other income (expense), net			(4	)			(3	)			(11	)			(11	)
Total Other Income/(Expense)			(48	)			(63	)			(177	)			839
Net Loss		$	(6,254	)		$	(6,143	)		$	(19,158	)		$	(18,001	)
Net loss per common share – basic and diluted		$	(0.09	)		$	(0.09	)		$	(0.29	)		$	(0.28	)
Weighted average common shares outstanding – basic and diluted			66,644				66,402				66,521				64,764

 

 

 

Statement of Operations - Segment Basis (Unaudited)

 

		Three Months Ended September 30, 2014
		Fixed Wireless				Shared Wireless Infrastructure				Corporate				Eliminations				Total
Revenues		$	7,554			$	794			$	-			$	(46	)		$	8,302
Operating Expenses
Cost of revenues			2,632				3,610				15				(46	)			6,211
Depreciation and amortization			1,981				1,014				323				-				3,318
Customer support			342				147				755				-				1,244
Sales and marketing			1,239				38				76				-				1,353
General and administrative			64				163				2,155				-				2,382
Total Operating Expenses			6,258				4,972				3,324				(46	)			14,508
Operating Income (Loss)		$	1,296			$	(4,178	)		$	(3,324	)		$	-			$	(6,206	)
Non-cash expenses (a)			2,096				1,084				501				-				3,681
Adjusted EBITDA (b)			3,392				(3,094	)			(2,823	)			-				(2,525	)
Less: Capital expenditures			1,154				590				22				-				1,766
Net Cash Flow (b)		$	2,238			$	(3,684	)		$	(2,845	)		$	-			$	(4,291	)

 

 

		Three Months Ended September 30, 2013
		Fixed Wireless				Shared Wireless Infrastructure				Corporate				Eliminations				Total
Revenues		$	7,910			$	536			$	-			$	(45	)		$	8,401
Operating Expenses
Cost of revenues			2,510				2,957				23				(45	)			5,445
Depreciation and amortization			2,755				857				234				-				3,846
Customer support			339				209				673				-				1,221
Sales and marketing			1,206				81				82				-				1,369
General and administrative			126				152				2,322				-				2,600
Total Operating Expenses			6,936				4,256				3,334				(45	)			14,481
Operating Income (Loss)		$	974			$	(3,720	)		$	(3,334	)		$	-			$	(6,080	)
Non-cash expenses (a)			2,836				862				506				-				4,204
Adjusted EBITDA (b)			3,810				(2,858	)			(2,828	)			-				(1,876	)
Less: Capital expenditures			1,243				681				200				-				2,124
Net Cash Flow (b)		$	2,567			$	(3,539	)		$	(3,028	)		$	-			$	(4,000	)

 

 

 

		Nine Months Ended September 30, 2014
		Fixed Wireless				Shared Wireless Infrastructure				Corporate				Eliminations				Total
Revenues		$	22,811			$	2,273			$	-			$	(138	)		$	24,946
Operating Expenses
Cost of revenues			7,751				10,512				44				(138	)			18,169
Depreciation and amortization			6,599				2,933				763				-				10,295
Customer support			879				502				2,182				-				3,563
Sales and marketing			3,754				178				242				-				4,174
General and administrative			374				467				6,885				-				7,726
Total Operating Expenses			19,357				14,592				10,116				(138	)			43,927
Operating Income (Loss)		$	3,454			$	(12,319	)		$	(10,116	)		$	-			$	(18,981	)
Non-recurring expenses, primarily acquisition related			-				-				91				-				91
Non-cash expenses (a)			6,896				3,136				1,478				-				11,510
Adjusted EBITDA (b)			10,350				(9,183	)			(8,547	)			-				(7,380	)
Less: Capital expenditures			4,044				2,018				339				-				6,401
Net Cash Flow (b)		$	6,306			$	(11,201	)		$	(8,886	)		$	-			$	(13,781	)

 

 

		Nine Months Ended September 30, 2013
		Fixed Wireless				Shared Wireless Infrastructure				Corporate				Eliminations				Total
Revenues		$	24,158			$	891			$	-			$	(137	)		$	24,912
Operating Expenses
Cost of revenues			7,229				8,405				95				(137	)			15,592
Depreciation and amortization			8,411				2,633				609				-				11,653
Customer support			901				588				2,311				-				3,800
Sales and marketing			3,825				239				269				-				4,333
General and administrative			444				486				7,444				-				8,374
Total Operating Expenses			20,810				12,351				10,728				(137	)			43,752
Operating Income (Loss)		$	3,348			$	(11,460	)		$	(10,728	)		$	-			$	(18,840	)
Non-recurring expenses, primarily acquisition related			-				-				113				-				113
Non-cash expenses (a)			8,689				2,641				1,549				-				12,879
Adjusted EBITDA (b)			12,037				(8,819	)			(9,066	)			-				(5,848	)
Less: Capital expenditures			3,359				1,049				350				-				4,758
Net Cash Flow (b)		$	8,678			$	(9,868	)		$	(9,416	)		$	-			$	(10,606	)

 

  

(a) Includes depreciation and amortization, stock-based compensation, deferred rent expense, loss on property and equipment, and loss on nonmonetary transactions.

 

(b) See Non-GAAP Measures below for a definition and reconciliation of (i) Adjusted EBITDA to Net Loss and (ii) Net Cash Flow to Net Cash Used in Operating Activities.

 

 

 

Effective January 1, 2013, the Company has two reportable segments. The Fixed Wireless segment provides fixed wireless broadband services to commercial customers and delivers access over a wireless network transmitting over both regulated and unregulated radio spectrum. The Shared Wireless Infrastructure segment offers a range of rental options on street level rooftops related to (i) the installation of customer owned Small Cells, (ii) Wi-Fi access and the offloading of mobile data, and (iii) backhaul, power and other related telecommunications.

 

The Corporate group includes corporate overhead and centralized activities which support our overall operations. Corporate overhead includes administrative personnel, including executive management, and other support functions such as information technology and facilities. Centralized operations include network operations, customer care, and the management of network assets. Corporate costs are not allocated to the segments because such costs are managed on a centralized basis. Management also believes that not allocating these centralized costs provides a better reflection of the direct operating performance of each segment.

 

 Summary Condensed Balance Sheet

(All dollars are in thousands)

		(Unaudited) September 30, 2014				(Audited) December 31, 2013
Assets
Current Assets
Cash and cash equivalents		$	11,891			$	28,182
Other			2,478				1,537
Total Current Assets			14,369				29,719
Property and equipment, net			35,382				38,485
Other assets			5,724				6,713
Total Assets			55,475				74,917
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued expenses			2,833				3,774
Deferred revenues and other			2,094				2,247
Total Current Liabilities			4,927				6,021
Long-Term Liabilities			2,845				2,802
Total Liabilities			7,772				8,823
Stockholders’ Equity
Common stock			67				66
Additional paid-in-capital			154,939				154,172
Accumulated deficit			(107,303	)			(88,144	)
Total Stockholders’ Equity			47,703				66,094
Total Liabilities and Stockholders’ Equity		$	55,475			$	74,917

 

 

 

Summary Condensed Statement of Cash Flows

(Unaudited)

 

		Nine Months Ended September 30,
		2014				2013
Cash Flows from Operating Activities
Net loss		$	(19,158	)		$	(18,001	)
Non-cash adjustments:
Depreciation & amortization			10,295				11,653
Stock-based compensation			740				939
Gain on business acquisition			-				(1,004	)
Other			463				65
Changes in operating assets and liabilities			(2,381	)			(2,018	)
Net Cash Used in Operating Activities			(10,041	)			(8,366	)
Cash Flows From Investing Activities
Acquisitions of property and equipment			(5,982	)			(3,897	)
Acquisition of a business, net of cash acquired			-				(223	)
Lease incentive payment from landlord			380				-
Other			(78	)			(148	)
Net Cash Used in Investing Activities			(5,680	)			(4,268	)
Cash Flows From Financing Activities
Payments on capital leases			(596	)			(571	)
Proceeds from stock issuances			30				348
Net proceeds from sale of common stock			-				30,499
Other			(4	)			-
Net Cash (Used in) Provided by Financing Activities			(570	)			30,276
Net (Decrease) Increase In Cash and Cash Equivalents			(16,291	)			17,642
Cash and cash equivalents – beginning			28,182				15,152
Cash and cash equivalents – ending		$	11,891			$	32,794

 

 

Fixed Wireless Segment Market data for the three months ended September 30, 2014

(All dollars are in thousands)

 

Market		Revenues				Cost of Revenues				Gross Margin				Operating Costs				Adjusted Market EBITDA
Los Angeles		$	2,017			$	544			$	1,473	73%		$	514			$	959
New York			1,949				724				1,225	63%			348				877
Boston			1,364				398				966	71%			202				764
Chicago			722				299				423	59%			112				311
Las-Vegas-Reno			338				126				212	63%			1				211
Miami			358				117				241	67%			50				191
Houston			178				71				107	60%			10				97
Dallas-Fort Worth			156				96				60	38%			20				40
San Francisco			270				125				145	54%			105				40
Seattle			74				45				29	39%			(3)				32
Providence-Newport			57				54				3	5%			2				1
Philadelphia			25				33				(8)	-%			4				(12)
Total		$	7,508			$	2,632			$	4,876	65%		$	1,365			$	3,511

 

 

 

Fixed Wireless Segment Market data for the three months ended September 30, 2013

(All dollars are in thousands)

 

Market		Revenues				Cost of Revenues			Gross Margin					Operating Costs				Adjusted Market EBITDA
Boston		$	1,633			$	362			$	1,271	78%		$	196			$	1,075
Los Angeles			2,021				549				1,472	73%			419				1,053
New York			1,915				636				1,279	67%			294				985
Chicago			780				284				496	64%			136				360
Miami			383				120				263	69%			132				131
San Francisco			312				128				184	59%			80				104
Las Vegas-Reno			251				127				124	49%			52				72
Houston			154				66				88	57%			23				65
Providence-Newport			115				50				65	57%			11				54
Dallas-Fort Worth			174				101				73	42%			65				8
Seattle			83				48				35	42%			28				7
Nashville			5				15				(10)	-%			2				(12)
Philadelphia			39				24				15	38%			31				(16)
Total		$	7,865			$	2,510			$	5,355	68%		$	1,469			$	3,886

 

Fixed Wireless Segment Market data for the nine months ended September 30, 2014

(All dollars are in thousands)

 

Market		Revenues				Cost of Revenues				Gross Margin				Operating Costs				Adjusted Market EBITDA
Los Angeles		$	6,053			$	1,678			$	4,375	72%		$	1,451			$	2,924
New York			5,815				2,045				3,770	65%			964				2,806
Boston			4,347				1,195				3,152	73%			589				2,563
Chicago			2,182				886				1,296	59%			381				915
Miami			1,107				338				769	69%			224				545
Las-Vegas-Reno			819				370				449	55%			100				349
Houston			524				194				330	63%			66				264
San Francisco			831				377				454	55%			254				200
Dallas-Fort Worth			483				290				193	40%			115				78
Seattle			214				140				74	35%			14				60
Providence-Newport			201				152				49	24%			5				44
Philadelphia			95				72				23	24%			25				(2)
Nashville			2				13				(11)	-%			2				(13)
Total		$	22,673			$	7,750			$	14,923	66%		$	4,190			$	10,733

 

Fixed Wireless Segment Market data for the nine months ended September 30, 2013

(All dollars are in thousands)

 

Market		Revenues				Cost of Revenues				Gross Margin				Operating Costs				Adjusted Market EBITDA
Los Angeles		$	6,138			$	1,562			$	4,576	75%		$	1,211			$	3,365
Boston			4,931				1,048				3,883	79%			657				3,226
New York			5,741				1,869				3,872	67%			1,002				2,870
Chicago			2,513				856				1,657	66%			362				1,295
Miami			1,152				324				828	72%			303				525
Las Vegas-Reno			913				400				513	56%			150				363
San Francisco			934				342				592	63%			283				309
Houston			387				144				243	63%			66				177
Providence-Newport			356				149				207	58%			48				159
Seattle			314				141				173	55%			90				83
Dallas-Fort Worth			507				290				217	43%			206				11
Philadelphia			119				61				58	49%			69				(11)
Nashville			16				43				(27)	-%			9				(36)
Total		$	24,021			$	7,229			$	16,792	70%		$	4,456			$	12,336

 

 

 

Operating Outlook and Guidance

 

●

Revenues for the fourth quarter 2014 are expected to range between $7.4 million to $7.7 million for the Fixed Wireless segment.

 

●

Revenues for the fourth quarter 2014 are expected to range between $0.8 million to $1.0 million for the Shared Wireless Infrastructure segment.

 

●

Adjusted EBITDA, on a segment basis, for the fourth quarter 2014 is expected to range between profitability of $3.1 million to $3.4 million for the Fixed Wireless segment.

 

 

Non-GAAP Measures and Reconciliations to GAAP Measures

 

We use certain Non-GAAP measures to monitor the Company's business performance and that of our segments. These Non-GAAP measures are not recognized under generally accepted accounting principles ("GAAP"). Accordingly, investors are cautioned about using or relying on these measures as alternatives to recognized GAAP measures. Our methods of calculating these measures may not be comparable to similar measures presented by other companies.

 

A definition of the Non-GAAP measures that we employ, and how we use them to monitor business performance, are as follows:

 

“Adjusted EBITDA” represents net income (loss) before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, deferred rent expense, other non-operating income or expenses, as well as gain or loss on (i) disposal of property and equipment, (ii) nonmonetary transactions, and (iii) business acquisitions.

 

“Adjusted Market EBITDA” also excludes corporate overhead expenses and other centralized costs. We believe that Adjusted Market EBITDA trends are insightful indicators of our markets’ relative performance, and whether our markets are able to produce sufficient market cash flow to fund working capital and capital expenditure needs.

 

“ARPU” refers to the monthly average revenue per user, or customer, being generated from those customers under contract at the end of each indicated period. We calculate ARPU by dividing our monthly recurring revenue (“MRR”) at the end of a period by the number of customers generating that MRR.

 

 

 

“ARPU of new customers” is calculated in the same manner but only includes new customers who entered into contracts during the indicated period.

 

“Churn” and “Churn rate” refer to the percent of revenue lost on a monthly basis from customers disconnecting from our network or reducing the amount of their bandwidth.

 

“Corporate” includes corporate overhead and centralized activities which support our overall operations.

 

“EBITDA” represents net income (loss) before interest, income taxes, depreciation and amortization.

 

“Market Cash Flow” represents the amount of cash generated in a market after deducting a market’s direct operating expenses from that market’s revenues. Market Cash Flow does not include (i) centralized costs which support all markets collectively or (ii) any network related capital expenditures incurred in a market.

 

“Net Cash Flows” represents Adjusted EBITDA less capital expenditures.

 

"Shared Wireless Infrastructure, Net" represents the net operating results for that business segment.

 

A reconciliation of non-GAAP measures to GAAP financial measures is as follows (amounts in thousands):

 

I. Adjusted Market EBITDA to Net Loss, Fixed Wireless Segment

 

			For the three months ended September 30,
			2014			2013
Adjusted Market EBITDA		$	3,511		$	3,886
Fixed wireless, non-market specific
Other expenses			(280)			(202)
Depreciation and amortization			(1,981)			(2,755)
Shared wireless infrastructure, net			(4,132)			(3,675)
Corporate			(3,324)			(3,334)
Other income (expense)			(48)			(63)
Net loss		$	(6,254)		$	(6,143)

 

 

			For the nine months ended September 30,
			2014			2013
Adjusted Market EBITDA		$	10,733		$	12,336
Fixed wireless, non-market specific
Other expenses			(818)			(714)
Depreciation and amortization			(6,599)			(8,411)
Shared wireless infrastructure, net			(12,181)			(11,323)
Corporate			(10,116)			(10,728)
Other income (expense)			(177)			839
Net loss		$	(19,158)		$	(18,001)

 

 

 

II. Adjusted EBITDA to Net Loss

 

			For the three months ended September 30,
			2014			2013
Adjusted EBITDA		$	(2,525)		$	(1,876)
Depreciation and amortization			(3,318)			(3,846)
Stock-based compensation			(185)			(272)
Loss on property and equipment			-			(23)
Loss on non-monetary transactions			(68)			(63)
Deferred rent			(110)			-
Operating Income (Loss)		$	(6,206)		$	(6,080)
Interest expense, net			(44)			(60)
Other income (expense), net			(4)			(3)
Net loss		$	(6,254)		$	(6,143)

 

 

			For the nine months ended September 30,
			2014			2013
Adjusted EBITDA		$	(7,380)		$	(5,848)
Depreciation and amortization			(10,295)			(11,653)
Stock-based compensation			(740)			(939)
Loss on property and equipment			-			(82)
Loss on non-monetary transactions			(203)			(205)
Deferred rent			(272)			-
Non-recurring expenses			(91)			(113)
Operating Income (Loss)		$	(18,981)		$	(18,840)
Interest expense, net			(166)			(154)
Gain on business acquisition			-			1,004
Other income (expense), net			(11)			(11)
Net loss		$	(19,158)		$	(18,001)

 

 

III. Net Cash Flow to Net Cash Used in Operating Activities

 

		For the three months ended September 30,
			2014			2013
Net cash flow		$	(4,291)		$	(4,000)
Capital expenditures			1,766			2,124
Changes in operating assets and liabilities, net			(737)			383
Other, net			(41)			(145)
Net cash used in operating activities		$	(3,303)		$	(1,638)

 

 

			For the nine months ended September 30,
			2014			2013
Net cash flow		$	(13,781)		$	(10,606)
Capital expenditures			6,401			4,758
Non-recurring expenses			(91)			(113)
Changes in operating assets and liabilities, net			(2,381)			(2,018)
Other, net			(189)			(387)
Net cash used in operating activities		$	(10,041)		$	(8,366)

 

 

 

Conference Call and Webcast

 

A conference call led by President and Chief Executive Officer, Jeff Thompson, and Chief Financial Officer, Joseph Hernon, will be held on November 10, 2014 at 5:00 p.m. ET to review our financial results and provide an update on current business developments. Interested parties may participate in the conference by dialing 877-755-7423 or 678-894-3069 (for international callers). A telephonic replay of the conference may be accessed approximately two hours after the call through November 17, 2014 at 11:59 p.m. ET by dialing 855-859-2056 or 404-537-3406 (for international callers) using pass code 23980446.

 

The call will also be webcast and can be accessed in a listen-only mode on the Company’s website at http://ir.towerstream.com/events.cfm.

 

About Towerstream Corporation

 

Towerstream (NASDAQ: TWER) is a leading 4G and Small Cell Rooftop Tower company. The company owns, operates, and leases Wi-Fi and Small Cell rooftop tower locations to cellular phone operators, tower, Internet and cable companies and hosts a variety of customers on its network. Towerstream was originally founded in 2000 to deliver fixed-wireless high-speed Internet access to businesses and to date offers broadband services in 12 urban markets including New York City, Boston, Los Angeles, Chicago, Philadelphia, the San Francisco Bay area, Miami, Seattle, Dallas-Fort Worth, Houston, Las Vegas-Reno, and the greater Providence area. For more information on Towerstream services, please visit www.towerstream.com and/or follow us @Towerstream.

 

 

 

The Towerstream Corporation logo is available at: http://www.globenewswire.com/newsroom/prs/?pkgid=6570

 

 

 

About HetNets Tower Corporation

 

HetNets Tower Corporation (“HetNets”) was formed in January 2013 as a wholly owned subsidiary of Towerstream Corporation (NASDAQ:TWER), and offers a neutral host, shared wireless infrastructure solution, either independently or as a turnkey service.  Its wireless communications infrastructure is available to wireless carriers, cable and Internet companies in major urban markets where the explosion in mobile data is creating significant demand for additional capacity and coverage.  HetNets offers a carrier-class Wi-Fi network for Internet access and the offloading of mobile data.  Its street level rooftop locations are ideal for the installation of customer owned small cells including DAS, Metro and Pico cells. Other solutions provided by HetNets include backhaul, power, and related small cell requirements. More information is available at http://www.hetnets.com.

 

Safe Harbor

 

Certain statements contained in this press release are “forward-looking statements” within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the Company with the Securities and Exchange Commission, including, without limitation, risk related to our ability to deploy and expand small cell rooftop tower locations in the New York City and other key markets. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 

INVESTOR CONTACT:

Monica Gould

The Blueshirt Group

212-871-3927

monica@blueshirtgroup.com

 

MEDIA CONTACT:

Todd Barrish

Indicate Media
917-861-0089

todd@indicatemedia.com

 

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