2015 Operating Highlights and Corporate Update
HetNets Tower Corporationhas closed its operations effective immediately.
- Company signed an agreement with Time Warner Cable to immediately take over $7mm worth of annual lease obligations.
- Company has entered into a 3-year agreement with renewal options to provide backhaul services for
$1.6mm/year with Time Warner Cable.
- Valuable backhaul equipment will be redeployed for On-Net installations and expected to significantly lower future capital expenditures.
- Cash burn for Q2 2016 expected to be under
"Our immediate focus is to reduce cash burn, and to ignite the On-Net sales model," stated
|Selected Financial Data and Key Operating Metrics|
|(All dollars are in thousands except ARPU information)|
|Selected Financial Data|
|Churn rate (1)||1.88||%||1.85||%|
|ARPU of new customers (1)||640||639|
|Cash and cash equivalents||15,116||38,027|
- See Non-GAAP Measures below for the definitions of Churn, ARPU and ARPU of new customers.
|Consolidated Statement of Operations|
|(All dollars are in thousands except per share amounts)|
|Year Ended |
|Cost of revenues||10,604||17,751||28,355|
|Depreciation and amortization||9,643||4,033||13,676|
|Customer support services||4,426||710||5,136|
|Sales and marketing||5,864||146||6,010|
|General and administrative||9,958||2,008||11,966|
|Total Operating Expenses||40,495||24,648||65,143|
|Interest expense, net||(6,653||)||-||(6,653||)|
|Provision for income taxes||38||-||38|
|Total Other Income/(Expense)||(6,615||)||-||(6,615||)|
|Net loss per common share - basic and diluted||$||(0.28||)||$||(0.32||)||$||(0.60||)|
|Weighted average common shares outstanding - basic and diluted||67,932||67,932||67,932|
|Year Ended |
|Cost of revenues||10,300||14,220||24,520|
|Depreciation and amortization||9,682||3,958||13,640|
|Customer support services||4,127||683||4,810|
|Sales and marketing||5,341||229||5,570|
|General and administrative||9,767||569||10,336|
|Total Operating Expenses||39,217||19,659||58,876|
|Interest expense, net||(1,673||)||-||(1,673||)|
|Provision for income taxes||(78||)||-||(78||)|
|Total Other Income/(Expense)||(1,751||)||-||(1,751||)|
|Net loss per common share - basic and diluted||$||(0.16||)||$||(0.25||)||$||(0.41||)|
|Weighted average common shares outstanding - basic and diluted||66,804||66,804||66,804|
|Summary Condensed Balance Sheet|
|(All dollars are in thousands)|
|Cash and cash equivalents||$||15,116||$||38,027|
|Current assets of discontinued operations||1,249||1,336|
|Current assets held for sale||5,315||11,109|
|Total Current Assets||22,463||53,373|
|Property and equipment, net||21,235||23,147|
|Long-term assets of discontinued operations||-||938|
|Liabilities and Stockholders' Equity|
|Accounts payable and accrued expenses||2,506||2,713|
|Deferred revenues and other||2,543||2,288|
|Current liabilities of discontinued operations||3,907||197|
|Total Current Liabilities||8,956||5,198|
|Total Long-Term Liabilities||37,219||35,161|
|Total Liabilities and Stockholders' Equity||$||48,721||$||82,321|
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 disconnecting from our network or reducing the amount of their bandwidth.
Conference Call and Webcast
A conference call led by interim Chief Executive Officer,
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.
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
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