GTT Reports Third Quarter 2016 Financial Results

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.

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