MCLEAN, Va. -- GTT Communications, Inc. (NYSE: GTT), the leading global cloud networking provider to multinational clients, announced today its financial results for the quarter ended June 30, 2018.
Second quarter highlights:
Revenue of $326.8 million grew 71.9% over 2Q17 and grew 25.4% over 1Q18.
Net loss was $136.3 million, compared to net income of $0.7 million in 2Q17 and net loss of $30.7 million in 1Q18. 2Q18 net loss was primarily the result of several non-recurring costs related to the Interoute acquisition, including $13.7 million in exit, transaction and integration costs, $13.8 million loss on extinguishment of debt and $88.6 million of expense related to a foreign currency hedge which was entered into at the time the Interoute acquisition was announced and subsequently settled at closing.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) of $74.9 million grew 39.2% over 2Q17 and grew 19.5% over 1Q18. Adjusted EBITDA margin was 22.9% compared to 28.3% in 2Q17 and 24.1% in 1Q18.
Capital expenditures were $19.3 million (5.9% of revenue) compared to $9.3 million in 2Q17 (4.9% of revenue) and $13.2 million in 1Q18 (5.1% of revenue).
Using constant currency, (i) 2Q18 revenue and Adjusted EBITDA would have been lower than reported by $7.9 million and $1.9 million, respectively, compared to 2Q17, and (ii) 2Q18 revenue and Adjusted EBITDA would have been higher than reported by $3.2 million and $0.7 million, respectively, compared to 1Q18.
On a pro forma basis, assuming (i) Interoute and Global Capacity's historical results had been included for all periods presented, and (ii) constant currency:
2Q18 revenue and Adjusted EBITDA grew 1.2% and 0.7%, respectively, over 2Q17.
2Q18 revenue and Adjusted EBITDA declined 0.6% and 3.1%, respectively, compared to 1Q18.
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