Towerstream Reports Financial Improvements in 2nd Quarter 2016 Financial Results
August 09 2016 - 4:15PM
Towerstream Corporation (NASDAQ:TWER) (the “Company”), a leading
fixed wireless fiber alternative company, announced results for the
quarter ended June 30, 2016.
Q2 2016 Operating
Highlights
- Adjusted EBITDA from continuing operations was $414K excluding
non-recurring expenses.
- OnNet customers increased by 48% in Q2 over Q1. 71% of
OnNet customers added in Q2 were secondary installs.
- Q2 Revenue increased 2% over Q1 to $6.9M, the Company’s first
quarter over quarter increase since Q4 2013.
- Added 42 OnNet buildings in Q2 totaling 265 OnNet buildings at
the end of Q2.
- Company increasing the forecast from 400 OnNet buildings to 440
OnNet buildings by year end.
Consolidated Statement of Operations (All
dollars are in thousands except per share amounts)
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
|
6,872 |
|
$ |
|
7,030 |
|
|
$ |
|
13,606 |
|
$ |
|
14,203 |
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
Infrastructure and
access |
|
|
2,631 |
|
|
|
2,491 |
|
|
|
|
5,183 |
|
|
|
5,049 |
|
Depreciation and
amortization |
|
|
3,044 |
|
|
|
2,393 |
|
|
|
|
5,572 |
|
|
|
4,741 |
|
Network operations |
|
|
1,299 |
|
|
|
1,370 |
|
|
|
|
2,590 |
|
|
|
2,705 |
|
Customer support |
|
|
485 |
|
|
|
653 |
|
|
|
|
1,028 |
|
|
|
1,326 |
|
Sales and
marketing |
|
|
884 |
|
|
|
1,545 |
|
|
|
|
2,378 |
|
|
|
2,876 |
|
General and
administrative |
|
|
1,604 |
|
|
|
1,562 |
|
|
|
|
3,584 |
|
|
|
3,486 |
|
Total Operating
Expenses |
|
|
9,947 |
|
|
|
10,014 |
|
|
|
|
20,335 |
|
|
|
20,183 |
|
Operating
Loss |
|
|
(3,075 |
) |
|
|
(2,984 |
) |
|
|
|
(6,729 |
) |
|
|
(5,980 |
) |
Other
Income/(Expense) |
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(1,588 |
) |
|
|
(1,670 |
) |
|
|
|
(3,195 |
) |
|
|
(3,335 |
) |
Loss from
continuing operations |
|
|
(4,663 |
) |
|
|
(4,654 |
) |
|
|
|
(9,924 |
) |
|
|
(9,315 |
) |
Loss from
discontinued operations |
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(68 |
) |
|
|
(4,197 |
) |
|
|
|
(2,977 |
) |
|
|
(8,459 |
) |
Gain on sale of
assets |
|
|
- |
|
|
|
- |
|
|
|
|
1,178 |
|
|
|
- |
|
Total loss
from discontinued operations |
|
|
(68 |
) |
|
|
(4,197 |
) |
|
|
|
(1,799 |
) |
|
|
(8,459 |
) |
Net
Loss |
$ |
|
(4,731 |
) |
$ |
|
(8,851 |
) |
|
$ |
|
(11,723 |
) |
$ |
|
(17,774 |
) |
|
|
|
|
|
|
|
|
|
|
(Loss) gain
per share – basic and diluted |
|
|
|
|
|
|
|
|
|
Continuing |
$ |
|
(1.36 |
) |
$ |
|
(1.39 |
) |
|
$ |
|
(2.93 |
) |
$ |
|
(2.79 |
) |
Discontinued |
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(0.02 |
) |
|
|
(1.26 |
) |
|
|
|
(0.88 |
) |
|
|
(2.54 |
) |
Gain on sale of
assets |
|
|
- |
|
|
|
- |
|
|
|
|
0.35 |
|
|
|
- |
|
Total discontinued |
|
|
(0.02 |
) |
|
|
(1.26 |
) |
|
|
|
(0.53 |
) |
|
|
(2.54 |
) |
Net loss
per common share – Basic and diluted |
$ |
|
(1.38 |
) |
$ |
|
(2.65 |
) |
|
$ |
|
(3.46 |
) |
$ |
|
(5.33 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding – Basic and
diluted |
|
|
3,432 |
|
|
|
3,336 |
|
|
|
|
3,387 |
|
|
|
3,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Condensed Balance Sheet (All
dollars are in thousands)
|
|
June 30, 2016 |
|
|
December 31, 2015 |
Assets |
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
9,977 |
|
|
|
$ |
15,116 |
Other |
|
|
|
1,167 |
|
|
|
|
783 |
Current assets of discontinued
operations |
|
|
|
238 |
|
|
|
|
1,249 |
Current assets held for sale |
|
|
|
- |
|
|
|
|
5,315 |
Total Current Assets |
|
|
|
11,382 |
|
|
|
|
22,463 |
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
|
18,546 |
|
|
|
|
21,235 |
|
|
|
|
|
|
|
|
Other assets |
|
|
|
6,551 |
|
|
|
|
3,332 |
Total Assets |
|
|
|
36,479 |
|
|
|
|
47,030 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
|
|
1,656 |
|
|
|
|
2,506 |
Deferred revenues and other |
|
|
|
2,189 |
|
|
|
|
2,543 |
Current liabilities of discontinued
operations |
|
|
|
3,007 |
|
|
|
|
3,907 |
Total Current Liabilities |
|
|
|
6,852 |
|
|
|
|
8,956 |
|
|
|
|
|
|
|
|
Long-Term Liabilities |
|
|
|
|
|
|
|
Long-term debt |
|
|
|
34,627 |
|
|
|
|
33,004 |
Other |
|
|
|
1,472 |
|
|
|
|
2,524 |
Total Long-Term Liabilities |
|
|
|
36,099 |
|
|
|
|
35,528 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
42,951 |
|
|
|
|
44,484 |
|
|
|
|
|
|
|
|
Stockholders’ (Deficit) Equity |
|
|
|
(6,472 |
) |
|
|
|
2,546 |
Total Liabilities and Stockholders’
(Deficit) Equity |
|
$ |
|
36,479 |
|
|
|
$ |
47,030 |
|
|
|
|
|
|
|
|
|
|
Non-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 nonmonetary transactions.
A reconciliation of a non-GAAP measure to GAAP
financial measure is as follows (amounts in thousands):
|
|
Three Months Ended June
30, 2016 |
|
Adjusted EBITDA |
|
$ |
|
414 |
|
|
Depreciation and
amortization |
|
|
|
(3,044 |
) |
|
Stock-based
compensation |
|
|
|
(142 |
) |
|
Loss on nonmonetary
transactions |
|
|
|
(4 |
) |
|
Non-recurring
expenses |
|
|
|
(323 |
) |
|
Deferred rent |
|
|
|
24 |
|
|
Operating Income
(Loss) |
|
$ |
|
(3,075 |
) |
|
Loss on discontinued
operations |
|
|
|
(68 |
) |
|
Interest expense, net |
|
|
|
(1,588 |
) |
|
Net loss |
|
$ |
|
(4,731 |
) |
|
|
|
|
|
|
|
|
Conference Call and Webcast
A conference call led by Interim Chief Executive
Officer Philip Urso, Chief Operating Officer Arthur Giftakis and
Chief Financial Officer Frederick Larcombe will be held on August
9, 2016 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 August 17, 2016 at 8:00 p.m. ET by dialing
855-859-2056 or 404-537-3406 (for
international callers) using pass code
44634217.
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 Corporation (Nasdaq:TWER) is a
leading Fixed Wireless Fiber Alternative company delivering
high-speed Internet access to businesses. To date the company
offers its 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. In 2014, Towerstream
launched its On-Net fixed wireless service offering building owners
and property managers a redundant and reliable dense urban network
that directly connects with Towerstream’s fiber backbone. On-Net
building tenants have access to dedicated, symmetrical Internet
connectivity, with a premier SLA, for at market setting prices. For
more information on Towerstream services, please visit
www.towerstream.com and/or follow us @Towerstream.
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. 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:
Terry McGovern
Vision Advisors
415-902-3001
mcgovern@visionadvisors.net
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