GTT Communications, Inc. (“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 fourth quarter and year ended December 31, 2013. Highlights include:
- Revenue increased by 67 percent to $46.1 million as compared to $27.6 million in the fourth quarter of 2012
- Gross Margin increased nearly 700 basis points to 36.2% compared to 29.3% in the fourth quarter of 2012
- Adjusted Earnings before Interest Taxes Depreciation and Amortization (“EBITDA”)* increased by 108 percent to $8.0 million compared to $3.8 million in the fourth quarter of 2012
- Income tax benefit of $2.4 million in the fourth quarter was driven by a valuation allowance release based on expanding profitability in the U.K. due to the Tinet acquisition
- Other expense includes other non-cash expense of $4.1 million for the mark-to-market of warrants and other non-cash expense of $0.7 million related to the nLayer earn-out due primarily to significant stock price appreciation.
- Revenue increased by 46 percent to $157.4 million as compared to $107.9 million in 2012
- Gross Margin increased over 500 basis points to 34.7% compared to 29.5% in 2012
- Adjusted EBITDA increased by 80 percent to $24.3 million compared to $13.5 million in 2012
- Other expense includes other non-cash expense of $8.7 million for the mark-to-market of warrants and other non-cash expense of $2.0 million related to the nLayer earn-out due primarily to significant stock price appreciation.* See “Annex A: Non-GAAP Financial Information-Adjusted EBITDA” for more information regarding the computation of Adjusted EBITDA.
“2013 was a pivotal year for GTT," stated Rick Calder, President and CEO. “We completed the integration of a transformative acquisition, and we surpassed our previously stated objective of $30 million in Adjusted EBITDA run rate. We broadened our ability to deliver complex, integrated cloud networking solutions to multinational customers worldwide, and we cemented a foundation on which we can scale the business to our next financial objectives of $400 million in revenue and $100 million in Adjusted EBITDA.”