GTT Communications (GTT) Reports Q4 Revenues Above Estimates

Note: EPS may not be comparable

GTT Communications (NYSE: GTT) reported Q4 EPS of ($1.12), versus ($0.14) reported last year. Revenue for the quarter came in at $249.2 million versus the consensus estimate of $247.72 million.

Fourth quarter highlights:

• Revenue of $249.2 million grew 80.7% over 4Q16 and grew 23.0% over 3Q17.
• Net loss was $49.5 million, compared to net loss of $0.9 million in 4Q16 and net loss of $9.5 million in 3Q17. The 4Q17 net loss was primarily the result of several nonrecurring costs, including: $5.8 million in exit, transaction and integration costs related to the Global Capacity and Transbeam acquisitions; $17.3 million of tax expense related to the change in U.S. tax law; and $29.0 million of tax expense related to the recording of a valuation allowance against U.S. deferred tax assets.
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) of $60.8 million grew 79.8% over 4Q16 and grew 8.0% over 3Q17. Adjusted EBITDA margin was 24.4% compared to 24.5% in 4Q16 and 27.8% in 3Q17. The decline in Adjusted EBITDA margin is due to the inclusion of Global Capacity for a full quarter in 4Q17.
• Capital expenditures were $15.2 million (6.1% of revenue), compared to $6.4 million in 4Q16 (4.6% of revenue) and $9.1 million in 3Q17 (4.5% of revenue).
• Using constant currency: (i) 4Q17 revenue and Adjusted EBITDA would have been lower than reported by $2.0 million and $0.2 million, respectively, compared to 4Q16; and (ii) 4Q17 revenue and Adjusted EBITDA would have been lower than reported by $0.3 million and $0.1 million, respectively, compared to 3Q17.

For earnings history and earnings-related data on GTT Communications (GTT) click here.

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