First year with positive EBITDA(1)
Miami, FL, May 04, 2022 (GLOBE NEWSWIRE) — TOWER ONE WIRELESS CORP. (CSE: TO) (OTCQB: TOWTF) (Frankfurt: 1P3N) (“Tower One” or the “Company”) filed its financial results for the fourth quarter of 2021 and full year ended December 31, 2021, and the related Management’s Discussion and Analysis.
Highlight’s year 2021:
- Revenue increased to CAD$ 10,687,626 for the year 2021 as compared to CAD$ 9,126,082 for the year 2020 and CAD$ 5,413,591 for the year 2019 representing a 97% increase over the last two years.
- Revenue increase is a result of (i) additional towers that started to provide service, (ii) increased collocations on existing towers, (iii) the sale of 47 towers in Argentina and (iv) a new revenue vertical based on selling the service for construction of towers.
|Sale of Towers||2,248,457||6,379,100||3,211,199|
- EBITDA(1) increased to CAD$ 229,901 for the year 2021 as compared to CAD$ (464,632) for the year 2020 and CAD$ (2,002,084) for the year 2019, being 2021 the first year with positive EBITDA(1).
- 160 new towers were put into operations with additional 16 new collocations.
- The Company signed 3 (three) new MLA’s in Colombia.
- 47 towers were sold in Argentina in 2021 to a local tower company. Proceeds were used to repay debt and fund new tower construction activity.
- Tower construction activity increased as the Company was awarded with several search rings, mainly in Colombia.
EBITDA is not a measure recognized under IFRS and do not have a standardized meaning prescribed by IFRS. This measure may differ from those made by other companies and accordingly may not be directly comparable to such measures as reported by other companies. These measures have been derived from the Company’s financial statements because the Company believes that they are of benefit in understanding the Company’s results.
Financial Highlights of the Full Year of 2021:
The Company’s business performance is improving after business transformation initiatives over the past year that was supported by the long-term financings that the Company was able to achieve. During 2021 we saw organic growth in the revenue from its core businesses, being 2021 the year that the Company constructed the greatest amount of towers in its history, which was further improved by the development of a new revenue vertical, such us service for construction of towers and revenue corresponding to the sale of towers.
The Company recorded total revenue of CAD$10,687,626 in 2021, a year over year increase of 17.11%.
As we have secured and closed local currency financings, we have limited the cash flow´s impact of the currency devaluation that may happen on the countries that we operate.
On January 10, 2022, the Company issued 2,000,000 common shares in relation to PSUs that vested during the year ended December 31, 2021.
On January 18, 2022, the Company settled a debt in the amount of CAD$ 1,039,751 owed by TOW to a certain creditor in exchange for 16,273,267 common shares at a deemed price of $0.064.
Mr. Alejandro Ochoa, CEO of Tower One, said, “To enhance Tower One’s profitability we initiated a number of actions oriented to focus on our core business.
- We secured our long-term financings based on 9.5 Years Credit Facilities for CAD$ 22.5MM (Single Digit Interest Rate) with local banks that will support our construction rollout.
- Completed our most successful year with 204 towers in operation by the end of 2021 and forecast more than 200 new towers to be built during 2022.
- Well positioned to transition through these high inflation periods with our existing lease agreements that all include inflation protection clauses attached to local CPI.
- 2021 LQA TCF (last quarter annualized TCF) of CAD$ 1,924,248 with a target of 2022 LQA TCF of CAD$ 4,200,000.
Looking ahead to 2022 the addition of our Ecuador Operation will complement our portfolio with USD Denominated Rents. Germany/Canada are in advanced stages of review as we transition to markets home to Tower One (Canada) and also our experienced management team in the German Market.
Further details are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com
About Tower One
Tower One Wireless Corp.’s principal business is to build, own and operate multi-tenant wireless telecommunications infrastructure (“towers”) in Latin America. Tower One leases space on its towers to mobile network operators. The Company is focused on the build to suit tower industry whereby a long-term lease is secured with a tenant prior to building a tower. The Company operates in some of the largest Spanish speaking countries in Latin America (Colombia, Ecuador and Mexico) with a combined population of approximately 190 million people.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
FORWARD LOOKING STATEMENTS
Certain statements in this release are forward-looking statements, which include regulatory approvals and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the Company’s anticipation of strong market demands for its BTS towers in 2020 and thereafter. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contributes to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, present and future business strategies, the environment in which the Company will operate in the future, and other factors, many of which are beyond the control of the Company. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. The Company assumes no obligation to update any forward-looking statements or forward-looking information referenced herein, whether as a result of new information events or otherwise, except as required by applicable securities laws.