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Interoute Acquisition Boosts GTT's Q2 Revenues

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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.

    GTT Communications Inc.

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