Towerstream Corporation (TWER) Provided Q2 Guidance

Towerstream Corporation (NASDAQ: TWER) (the “Company”), a leading Fixed-Wireless Fiber Alternative company, provided guidance for the quarter ending June 30, 2016.

Q2 2016 Guidance:

• 52% of all 145 On-Net contracts in April and May were secondary customer contracts which are our most profitable offering.
• Average revenue per On-Net contract is up 35% from April to May.
• Sales cycle to installation in active On-Net buildings has shortened significantly from months to weeks.
• Reaches agreement with large commercial property owner in NYC to provide On-Net high-speed Internet Services.

Management Comments

“Towerstream continues to grow its On-Net Customer base, signing up multiple customers in buildings lit with our high-speed Internet Services. These secondary customers in existing On-Net buildings can be turned up in days or even hours when necessary,” stated Arthur Giftakis, Chief Operating Officer.

“On-Net is a win for the company and the customer,” said Company founder and interim CEO Philip Urso. “For Towerstream, it is capital efficient, focuses our sales staff and dramatically lowers customer churn. The customer gets fiber-quality in terms of speed and reliability, priced at about 40% below market rates.”

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:

“Adjusted EBITDA” represents net income (loss) before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, deferred rent expense, other non-operating income or expenses, as well as gain or loss on (i) nonmonetary transactions, and (ii) business acquisitions.

“Churn” and “Churn rate” refer to the percent of revenue lost on a monthly basis from customers who have cancelled their contract. Revenue adjustments associated with customers who are modifying the (i) amount of their bandwidth or (ii) the pricing terms of their contract are not included in the calculation of customer churn.

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