Towerstream Corporation
Mar 15, 2016

Towerstream Reports 2015 Financial Results and Corporate Update

Time Warner Cable Agreement Lowers Cash Burn Significantly

MIDDLETOWN, R.I., March 15, 2016 (GLOBE NEWSWIRE) -- Towerstream Corporation (NASDAQ:TWER) (the "Company"), a leading Fixed Wireless Fiber Alternative company, announced results for the year ended December 31, 2015.

2015 Operating Highlights and Corporate Update

Management Comments

"Our immediate focus is to reduce cash burn, and to ignite the On-Net sales model," stated Philip Urso, interim CEO.

Selected Financial Data and Key Operating Metrics
(All dollars are in thousands except ARPU information)
 
 Years Ended
   12/31/2015 12/31/2014
Selected Financial Data    
Revenues    
Continuing$ 27,905 $ 29,936 
Discontinued  3,370   3,100 
Gross margin    
Continuing  62%  66%
Capital expenditures    
Continuing $ 6,951 $   5,950 
Discontinued  240   2,221 
Churn rate (1)  1.88%  1.85%
ARPU (1)$ 764 $   772 
ARPU of new customers (1)  640   639 
Cash and cash equivalents  15,116   38,027 
  1. 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 December 31, 2015
  Continuing
Operations
 Discontinued
Operations
  Consolidated
Revenues  $ 27,905  $ 3,370  $ 31,275 
          
Operating Expenses         
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 
Operating Loss   (12,590)   (21,278)   (33,868)
Other Income/(Expense)         
Interest expense, net   (6,653)   -    (6,653)
Provision for income taxes   38    -    38 
Total Other Income/(Expense)   (6,615)   -    (6,615)
Net Loss $ (19,205) $ (21,278) $ (40,483)
          
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 December 31, 2014
  Continuing
Operations
  Discontinued
Operations
  Consolidated
Revenues $ 29,936   $ 3,100  $ 33,036 
          
Operating Expenses         
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 
Operating Loss   (9,281)   (16,559)   (25,840)
Other Income/(Expense)         
Interest expense, net   (1,673)   -    (1,673)
Provision for income taxes   (78)   -    (78)
Total Other Income/(Expense)   (1,751)   -    (1,751)
Net Loss $ (11,032) $ (16,559) $ (27,591)
          
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)
 
  December 31, 2015  December 31, 2014
Assets     
Current Assets     
Cash and cash equivalents $ 15,116  $38,027
Other   783   901
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
        
Other assets  5,023   6,863
Long-term assets of discontinued operations  -   938
Total Assets  48,721   82,321
        
Liabilities and Stockholders' Equity       
Current Liabilities       
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
        
Long-Term Liabilities       
Long-term debt  34,695   32,101
Other  2,524    3,060
Total Long-Term Liabilities  37,219   35,161
        
      Total Liabilities   46,175   40,359
        
Stockholders' Equity  2,546   41,962
Total Liabilities and Stockholders' Equity $48,721  $82,321

 

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 disconnecting from our network or reducing the amount of their bandwidth.

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 March 15, 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 April 14, 2016 at 11:59 p.m. ET by dialing 855-859-2056 or 404-537-3406 (for international callers) using pass code 84829903.

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 100 Mbps of dedicated, symmetrical Internet connectivity, with a premier SLA, for an industry-leading price of $699/month. 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



MEDIA CONTACT:

Todd Barrish

Indicate Media

917-861-0089

todd@indicatemedia.com

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Source: Towerstream

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