Towerstream Reports First Quarter 2016 Financial Results
May 10 2016 - 4:00PM
Towerstream Corporation (NASDAQ:TWER) (the “Company”), a leading
Fixed Wireless Fiber Alternative company, announced results for the
quarter ended March 31, 2016.
Q2 2016 Operating
Highlights
- FCC ruling affirms protection of Towerstream’s 3.5 GHz
frequencies in Miami
- Cash burn for Q2-16 projected to improve by 46% to $2.5 million
compared to Q1-16
- Contracts up 25% in April 2016 compared to March 2016; OnNet
contracts up 57%
- OnNet platform grows to 241 lit buildings, on target to reach
400 buildings by year end
- Customer churn improves to 1.65% in Q1-16 compared to 1.86% in
Q1-15 as compelling value of OnNet platform strengthens customer
retention rates
Consolidated Statement of
Operations |
(All dollars are in thousands except
per share amounts) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2016 |
|
|
|
2015 |
|
Revenues |
|
$ |
|
6,734 |
|
|
$ |
|
7,172 |
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
Infrastructure and access |
|
|
|
2,552 |
|
|
|
|
2,499 |
|
Depreciation and amortization |
|
|
|
2,527 |
|
|
|
|
2,348 |
|
Network operations |
|
|
|
1,291 |
|
|
|
|
1,334 |
|
Customer support |
|
|
|
543 |
|
|
|
|
673 |
|
Sales and marketing |
|
|
|
1,495 |
|
|
|
|
1,331 |
|
General and administrative |
|
|
|
1,980 |
|
|
|
|
1,984 |
|
Total Operating Expenses |
|
|
|
10,388 |
|
|
|
|
10,169 |
|
Operating Loss |
|
|
|
(3,654 |
) |
|
|
|
(2,997 |
) |
Other
Income/(Expense) |
|
|
|
|
|
|
Interest
expense, net |
|
|
|
(1,607 |
) |
|
|
|
(1,664 |
) |
Total
Other Income/(Expense) |
|
|
|
(1,607 |
) |
|
|
|
(1,664 |
) |
Loss from continuing
operations |
|
|
|
(5,261 |
) |
|
|
|
(4,661 |
) |
Loss from discontinued
operations |
|
|
|
|
|
|
Operating
loss |
|
|
|
(2,910 |
) |
|
|
|
(4,262 |
) |
Gain on
sale of assets |
|
|
|
1,178 |
|
|
|
|
- |
|
Total |
|
|
|
(1,732 |
) |
|
|
|
(4,262 |
) |
Net
Loss |
|
$ |
|
(6,993 |
) |
|
$ |
|
(8,923 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain per common
share – basic and diluted |
|
|
|
|
|
|
Continuing |
|
$ |
|
(0.08 |
) |
|
$ |
|
(0.07 |
) |
Discontinued |
|
|
|
|
|
|
Operating |
|
|
|
(0.04 |
) |
|
|
|
(0.06 |
) |
Non-operating |
|
|
|
0.02 |
|
|
|
|
- |
|
Total |
|
|
|
(0.02 |
) |
|
|
|
(0.06 |
) |
Net loss per common
share – basic and diluted |
|
$ |
|
(0.10 |
) |
|
$ |
|
(0.13 |
) |
|
|
|
|
|
|
|
Weighted average common
shares outstanding – basic and diluted |
|
|
|
68,051 |
|
|
|
|
67,857 |
|
|
|
|
|
|
|
|
Summary Condensed Balance
Sheet |
(All dollars are in thousands) |
|
|
|
|
|
|
|
|
March 31, 2016 |
|
|
December 31, 2015 |
Assets |
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
9,641 |
|
|
|
$ |
15,116 |
Other |
|
|
|
1,230 |
|
|
|
|
783 |
Current assets of discontinued
operations |
|
|
|
727 |
|
|
|
|
1,249 |
Current assets held for sale |
|
|
|
- |
|
|
|
|
5,315 |
Total
Current Assets |
|
|
|
11,598 |
|
|
|
|
22,463 |
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
|
20,641 |
|
|
|
|
21,235 |
|
|
|
|
|
|
|
|
Other assets |
|
|
|
6,956 |
|
|
|
|
3,332 |
Total
Assets |
|
|
|
39,195 |
|
|
|
|
47,030 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
|
|
2,159 |
|
|
|
|
2,506 |
Deferred
revenues and other |
|
|
|
2,275 |
|
|
|
|
2,543 |
Current
liabilities of discontinued operations |
|
|
|
3,330 |
|
|
|
|
3,907 |
Total
Current Liabilities |
|
|
|
7,764 |
|
|
|
|
8,956 |
|
|
|
|
|
|
|
|
Long-Term Liabilities |
|
|
|
|
|
|
|
Long-term
debt |
|
|
|
33,827 |
|
|
|
|
33,004 |
Other |
|
|
|
1,724 |
|
|
|
|
2,524 |
Total
Long-Term Liabilities |
|
|
|
35,551 |
|
|
|
|
35,528 |
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
|
43,315 |
|
|
|
|
44,484 |
|
|
|
|
|
|
|
|
Stockholders’ Equity
(Deficit) |
|
|
|
(4,120 |
) |
|
|
|
2,546 |
Total
Liabilities and Stockholders’ Equity |
|
$ |
|
39,195 |
|
|
|
$ |
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:
“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 who have cancelled
their contract. Effective January 1, 2016, we have modified our
methodology to conform to common practice in the telecommunications
industry. Revenue adjustments associated with customers who are
modifying the (i) amount of their bandwidth or (ii) the pricing
terms of their contract will no longer be included in the
calculation of customer churn.
Conference Call and Webcast
A conference call led by interim Chief Executive Officer, Philip
Urso, Chief Financial Officer, Joseph Hernon, and Chief Operations
Officer, Arthur Giftakis, will be held on May 10, 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 May 17, 2016 at 11:59 p.m. ET by
dialing 855-859-2056 or
404-537-3406 (for international callers) using
pass code 95369132.
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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