GTT Communications, Inc (GTLT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.90 million, or $ 0.02 a share in the quarter, against a net profit of $27.60 million, or $0.75 a share in the last year period. Revenue during the quarter grew 18.90 percent to $136.50 million from $114.80 million in the previous year period. Gross margin for the quarter expanded 161 basis points over the previous year period to 47.69 percent. Total expenses were 92.31 percent of quarterly revenues, down from 98.69 percent for the same period last year. This has led to an improvement of 639 basis points in operating margin to 7.69 percent.
Operating income for the quarter was $10.50 million, compared with $1.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $33.80 million compared with $25.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 255 basis points in the quarter to 24.76 percent from 22.21 percent in the last year period.
“In 2016, GTT recorded another record year of growth and strategic achievement, firmly establishing our position as the challenger brand in our industry,” stated Rick Calder, GTT president and Chief executive officer. “In January, we completed the acquisition of Hibernia Networks, and integration is on schedule. For 2017, we will continue to drive execution of our growth strategy by expanding our portfolio of cloud networking services, extending our global network reach and delivering an outstanding client experience by living our core values of simplicity, speed and agility.”
Operating cash flow improves significantlyGTT Communications, Inc has generated cash of $60.50 million from operating activities during the year, up 145.93 percent or $35.90 million, when compared with the last year. The company has spent $362.60 million cash to meet investing activities during the year as against cash outgo of $314.80 million in the last year.
Cash flow from financing activities was $318.60 million for the year, up 25.63 percent or $65 million, when compared with the last year.
Cash and cash equivalents stood at $29.70 million as on Dec. 31, 2016, up 103.42 percent or $15.10 million from $14.60 million on Dec. 31, 2015.
Working capital turns positive
Working capital of GTT Communications, Inc has turned positive to $22.90 million on Dec. 31, 2016 from negative $6.65 million on Dec. 31, 2015. Current ratio was at 1.24 as on Dec. 31, 2016, up from 0.93 on Dec. 31, 2015.
Debt moves up
GTT Communications, Inc has witnessed an increase in total debt over the last one year. It stood at $430.60 million as on Dec. 31, 2016, up 10.81 percent or $42 million from $388.60 million on Dec. 31, 2015. Total debt was 45.17 percent of total assets as on Dec. 31, 2016, compared with 65.15 percent on Dec. 31, 2015. Debt to equity ratio was at 3.37 as on Dec. 31, 2016, down from 3.52 as on Dec. 31, 2015. Interest coverage ratio improved to 1.35 for the quarter from 0.25 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
