×

Towerstream Reports 2015 Financial Results and Corporate Update

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

  • HetNets Tower Corporation has 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 $2.9mm.

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

Source:Towerstream