GTT (NYSE MKT: GTT), a cloud networking service provider offering Tier 1 IP and Ethernet network solutions to multinational enterprises, today announced its financial results for the third quarter ended September 30, 2013.
Third Quarter Highlights
- Revenue increased 59 percent to $45.1 million as compared to $28.4 million in the third quarter of 2012
- Adjusted EBITDA* more than doubled to $7.6 million compared to $3.7 million in the third quarter of 2012
- Net loss of $0.19 per share includes other non-cash expense of $2.0 million for the mark-to-market of warrants and other non-cash expense of $1.3 million related to the nLayer earn-out due primarily to recent significant stock price appreciation, or $0.15 per share
- Subsequent to quarter-end, completed mezzanine debt refinancing, reducing cost of mezzanine debt by 250 bps, saving $700,000 in annual interest expense
* See “Annex A: Non-GAAP Financial Information-Adjusted EBITDA” for more information regarding the computation of Adjusted EBITDA.
Richard D. Calder Jr., President and Chief Executive Officer, stated, “GTT’s third quarter results demonstrate expanding profitability as the Tinet acquisition contributes expected deal economics and evidence builds that our organic growth efforts are beginning to take hold. Adjusted EBITDA as a percentage of revenue is expanding both from successful acquisitions and from growth in net installations, a rising proportion of on-net installs, and increased gross margins. Our acquisition integration is largely complete, again proving the success of our acquisition template, and we expect to see network expenses continue to decrease over time.”“Having successfully digested our most recent acquisition, and armed with an expanded services portfolio, the right senior team in place, and a growing sales and marketing capability, GTT is well prepared to execute its growth strategy. We continue to focus on consistent execution toward our long-term financial objectives to more than double the third quarter’s annualized revenue run rate to $400 million and more than triple the quarter’s annualized Adjusted EBITDA run rate to $100 million over the next three years, through some organic growth and selected acquisitions. Our aim is to be the clear leader providing unparalleled solutions, reliability, and service to meet the unique needs of our expanding target customer segment, multinational enterprises and carriers.”