ESTW Eastower Wireless Inc

BOCA RATON, Fla., Aug. 24, 2022 /CNW/ - EasTower Wireless Inc. ("EasTower" or the "Company") (TSXV: ESTW), a US-based provider of next generation wireless communications infrastructure specializing in the ‎construction, installation, and maintenance of 5G and 4G wireless telecommunication networks, reported financial results and operating highlights today for the three and six months ended June 30, 2022. All amounts indicated are in US dollars unless otherwise indicated.

The Company's financial statements for the three and six months ended June 30, 2022, and accompanying Management's Discussion and Analysis ("MD&A") are available under the Company's profile on SEDAR (www.sedar.com) and posted on the Company's web site at https://www.eastower.com.

"We have been experiencing an abundance of contracts and purchase orders from major telecoms, OEMs and turf venders, and our focus remains on scaling our business through additional crew counts in order to address the high demand of work we are experiencing," said Vlado P. Hreljanovic, Chief Executive Officer of EasTower. "Government funded initiatives to upgrade the nation's telecom infrastructure is an integral part of the United States long term infrastructure plan. This is creating a backlog of work for EasTower and others that is expected to continue for several years to come."

Mr. Hreljanovic added, "As a direct beneficiary of this substantial demand for 5G buildout across America, with limited resources, we reported significant revenue growth year to date and in Q2 compared to last year, and more importantly we reported strong gross margins. Our high margin business equips us with a significant opportunity to reach profitability in the near term and that is a key focus of ours. We remain focused on growing our crew count and provide long-term 5G solutions in the Southeast region of the United States. We are confident that the second half of the year will experience strong growth over the first six months of the year due to the increased customer base and increase in the implementation of additional crews."

• Total Revenue increased by 55% to $363K in Q2 2022 compared to $234K in Q2 2021.
• Cost of Sales decreased by 21% to $164K in Q2 2022 compared to $207K in Q2 2021.
• Gross Profit was $199K in Q2 2022 compared to $27K in Q2 2021, an increase of $172K.
• Total comprehensive loss for Q2 2022 was $(716K) compared to comprehensive loss of $(568K) in Q2 2021.
• As of June 30, 2022, the Company had cash and cash equivalents of $0.3 million, compared to $0.1 million as of December 31, 2021.

• Total Revenue increased by 28% to $788K in the first half of 2022 compared to $617K in the same period for 2021.
• Cost of Sales decreased by 3% to $370K in the first half of 2022 compared to $382K in the same period in 2021.
• Gross Profit increased by 78% to $418K in the first half of 2022 compared to $235K in the same period in 2021.
• Total comprehensive loss for the first half of 2022 was $(2.9) million compared to comprehensive loss of $(380K) in the same period in 2021. The loss in the first half of the year was mainly attributed to the one-time going public costs the Company incurred from the first quarter of 2022.

During the quarter, the Company:

• Won additional new site builds from the largest national owned and operated tower company in the U.S.
• Signed a Master Service Agreement with one of the largest owned and operated tower companies in the world providing the Company with an opportunity to support this customer in the Kentucky and Tennessee markets.

Subsequent to the quarter, as announced on August 22, 2022, the Company closed a fully subscribed private placement for gross proceeds of CAD$516K.

The Company, through its wholly owned subsidiary, EasTower Communications Inc., is a U.S. provider of wireless infrastructure network build-out and related service within America. The Company specializes in the construction, installation, upgrading, and maintenance of next generation wireless infrastructure networks, including rapidly growing 5G, current 4G and small cell deployments as well as the least know and largest infrastructure plays in US history, the first responder or FirstNet initiative. The Company's diverse, top-tier customer base includes major telecom providers, global original equipment manufacturers (OEMs), corporations and federal government agencies. The Company is currently operating in the State of Florida. For more information, please visit www.eastowerwireless.com.

Certain statements contained in this press release constitute "forward-looking information" as such term is ‎‎defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", ‎‎"will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as ‎they relate ‎to the Company, are intended to identify forward-looking information, including, without limitation: the Company's second half of the year being stronger than its first half; and the Company potentially providing services under the Master Service Agreement. All statements ‎other than statements of ‎historical fact may be forward-looking information. Such statements reflect the ‎Company's current views ‎and intentions with respect to future events, and current information available to the ‎Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation: the Company having the capital and access to labor required for growth. Many ‎factors could cause the actual results, ‎performance or achievements that may be expressed or implied by such ‎forward-looking information to vary ‎from those described herein should one or more of these risks or uncertainties ‎materialize. Examples of ‎such risk factors include, without limitation: risks associated with existing, new or changing governmental ‎regulations; ability of the Company to obtain and maintain necessary permits, licenses and approvals; ability of the Company to obtain debt or equity financing to support its operations; availability of funds and re-‎sources to pursue operations; risks associated with debt; potential liability for actions of employees, con-‎tractors and consultants; competition; the ability to ‎implement business strategies and pursue business ‎opportunities; ability to retain and attract customers; estimation and assumption of costs associated with ‎providing services under master service agreements; credit risk; seasonality of demand for the Company's ‎services; variability of operating costs, including fuel, equipment and contractors; risks associated with failure to comply with applicable regulations; hazards and liability associated with the Company's operations; ‎ability to recruit and retain employees and contractors; changes in the telecommunications industry and the ‎Company's ability to adapt; lack of sufficient insurance coverage; risks inherent in use and retention of ‎subcontractors; market fluctuations (including equity, commodity, ‎foreign exchange and interest rate); liquidity risk; reputational risk; capital adequacy; the general business and ‎economic conditions in the regions in which the Company operates; the ability of the Company to execute on key ‎priorities and to ‎attract, ‎develop and retain key executives; cyber, privacy and information technology-related risks; counter-party ‎risks; risks related to pandemics and endemics, including COVID-19; the occurrence of natural and unnatural ‎catastrophic events and claims or disruptions resulting from such events; litigation risks; as well as ‎those risk factors discussed or referred to in the Company's disclosure documents filed ‎with the securities ‎‎regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor ‎‎affect the Company in an unexpected manner, or should assumptions underlying the forward-looking ‎‎information prove incorrect, the actual results or events may differ materially from the results or events ‎‎predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary ‎‎statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of ‎such ‎forward-looking information. The forward-looking information included in this press release is made as ‎of the ‎date of this press release and the Company undertakes no obligation to publicly update or revise any ‎forward-‎looking information, other than as required by applicable law.‎

SOURCE EasTower Wireless Inc.