GTT Communications, Inc. (NYSE:GTT), the leading global cloud networking provider to multinational clients, announced today its financial results for the third quarter ended September 30, 2016.
Third quarter highlights:
| • | Revenue increased by 35.9% to $131.9 million compared to $97.0 million in third quarter 2015, and by 2.3% compared to $128.9 million in second quarter 2016. |
| • | Net income increased to $5.1 million compared to net income of $1.8 million in third quarter 2015 and $0.1 million in second quarter 2016. Basic and diluted earnings per share increased to $0.14 per share compared to basic and diluted earnings of $0.05 per share in third quarter 2015 and $0.00 per share in second quarter 2016. |
| • | Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) increased by 54.1% to $32.1 million compared to $20.8 million in third quarter 2015, and by 6.2% compared to $30.3 million in second quarter 2016. Adjusted EBITDA margin expanded to 24.4% compared to 21.5% in third quarter 2015 and 23.5% in second quarter 2016. |
| • | Capital expenditures were $5.5 million compared to $3.5 million in third quarter 2015 and $4.8 million in second quarter 2016. Adjusted EBITDA less capital expenditures was $26.6 million compared to $17.3 million in third quarter 2015 and $25.5 million in second quarter 2016. |
| • | Using constant currency (i) when compared to third quarter 2015, third quarter 2016 revenue and Adjusted EBITDA would have been higher than reported by $1.3 million and $0.5 million, respectively, and (ii) when compared to second quarter 2016, third quarter 2016 revenue and Adjusted EBITDA would have been higher than reported by $0.8 million and $0.3 million, respectively. |
| • | On a pro forma basis, assuming (i) OSN’s historical results had been included for all periods presented, and (ii) constant currency, third quarter 2016 revenue and Adjusted EBITDA grew by 13.5% and 29.7%, respectively, compared to third quarter 2015 and by 2.9% and 7.3%, respectively, compared to the second quarter 2016. |
*Note: See “Annex A: Non-GAAP Financial Information” for more information regarding the computation of Adjusted EBITDA, Adjusted EBITDA less capital expenditures, constant currency and pro forma calculations.
“GTT again delivered strong growth and profitability in the third quarter,” stated Rick Calder, GTT president and CEO. “For the remainder of the year, we remain focused on consistent execution of our growth strategy. Our results demonstrate that GTT has emerged as the challenger brand in our industry, providing a better way to reach the cloud for our multinational clients by living our core values of simplicity, speed and agility.”
“GTT continues to deliver growth and profitability driving margin expansion even with our significant investments in organic growth,” stated Mike Sicoli, chief financial officer. “We look forward to a strong finish in 2016, making consistent progress toward our next financial objective of $1 billion in revenue and $250 million in Adjusted EBITDA.”
Conference Call Information
GTT will hold a conference call on Wednesday, November 9, 2016, at 8:30 a.m. EST. To participate in the live conference call, interested parties may dial +1.844.875.6916 or +1.412.317.6714, entering passcode 10093979 and ask for the GTT Communications call, or via webcast at GTT’s website.
A telephonic replay of the conference call will be available for one week and may be accessed by calling +1.877.344.7529 or +1.412.317.0088 and using the passcode 10093979. The webcast will be archived in the investor relations section of GTT’s website.
About GTT
GTT provides multinationals with a better way to reach the cloud through its suite of cloud networking services, including wide-area networking, Internet, managed services and voice services. The company’s Tier 1 IP network, ranked in the top five worldwide, connects clients to any location in the world and any application in the cloud. GTT delivers an outstanding client experience by living its core values of simplicity, speed and agility. For more information on how GTT is redefining global communications, please visit www.gtt.net.
