Carrier Ethernet Industry News™ (1691)

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List Recognizes Innovation, Growth, and Entrepreneurial Spirit

LOS ANGELES – August 16, 2017Unitas Global, a leading enterprise hybrid cloud solution provider, announces today that it has been named to Inc. Magazine’s 36th Annual Inc. 5000 list of the fastest-growing companies in America.  The Inc. 5000 ranks private companies by overall revenue growth over a three-year period and recognizes business achievement.

“At Unitas Global, we are dedicated to meeting global enterprises’ needs for the highest quality cloud services,” explains Patrick Shutt, CEO, Unitas Global.  “As a result of this commitment, our company has been on a strong year-over-year growth trajectory as we address the challenges faced by enterprises migrating to the cloud.  We are honored to be included on the Inc. 5000 list of the fastest growing companies in America and look forward to continued rapid growth in the future.”

Achieving revenue growth of 186 percent CAGR over the last four years, Unitas Global provides clients with custom, highly secure, fully managed cloud-based IT environments that are simple to consume.  By transferring daily infrastructure operations to Unitas Global, clients can focus internal IT resources on their business-centric initiatives.

“It is an honor to be a part of the Inc. 5000 list,” adds Grant Kirkwood, Co-Founder and CTO, Unitas Global. “Our success is due our team’s ability to utilize leading cloud technologies to enable enterprises in achieving digital transformation. We are excited to keep the positive momentum as we continue in our mission to transform the consumption of IT for our clients.”

For more information about Unitas Global, visit www.unitasglobal.com

# # #

About Unitas Global

Unitas Global is a leading provider of enterprise hybrid cloud solutions.  The Unitas Enterprise Hybrid Cloud solution provides clients with custom, highly secure, and dedicated cloud-based IT environments that are easy-to-consume, fully managed, and backed by an end-to-end SLA, guaranteeing application uptime.  By offloading day-to-day infrastructure operations to Unitas Global, our clients are able to refocus and optimize their internal IT resources toward their business-centric initiatives.  Unitas is headquartered in Los Angeles, with clients and locations spanning the globe.  For more information, please visit www.unitasglobal.com.

Media Contact

iMiller Public Relations for Unitas Global

+1.866.307.2510

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August 10, 2017 -- Achieve UniteiMiller Public Relations, a performance partnering company, and iMiller Public Relations (iMPR), an independent public relations and content marketing consulting firm, announce today that Theresa Caragol, Founder and CEO of Achieve Unite, and Ilissa Miller, CEO of iMPR will host "5 Steps to a Win-Win Channel Program That Drives Revenue Growth” webinar taking place on August 29, 2017 at 12:00 p.m. Eastern Standard Time.  As leaders in developing successful channel programs, Theresa Caragol and Ilissa Miller will discuss how to make organizations’ marketing and public relations efforts more affordable, effective and relevant to target audiences, and provide direction on how companies can take their channel programs to the next level.

Register for the webinar by clicking here.

If you cannot attend the webinar, join Ilissa and Theresa in person on Sunday, October 15, 2017 from 3:00 - 4:30 p.m. at INCOMPAS, where the Northeast DAS and Small Cell Association (NEDAS) San Francisco Symposium will be colocated.  During the workshop, Ilissa and Theresa will take a more in-depth look at this topic.  This invaluable, in-person workshop is free to attend for all INCOMPAS attendees and for NEDAS registrants with an add-on ticket or a full INCOMPAS/NEDAS registration. Register for the in-person marketing workshop by clicking here.

WHAT: “5 Steps to a Win-Win Channel Program That Drives Revenue Growth” Webinar hosted by Achieve Unite and iMiller Public Relations

WHERE: Register for webinar by clicking here

WHEN: August 29, 2017 at 12:00 p.m. EST 

WHO: Theresa Caragol, CEO of Achieve Unite and Ilissa Miller, CEO of iMiller Public Relations

 

About Achieve Unite

Achieve Unite is dedicated to helping high-tech vendors and service providers achieve measurable growth by delivering state-of-the-art partner performance programs.  We work with companies at all stages of channel development, helping them create and execute the best channel strategy possible for their organizations and improve their vendor/partner relationships.  We also develop individual and organizational skills within the business by delivering advanced thought leadership and research that helps future-proof the company.  Schedule a no-obligation assessment and learn more about us at achieveunite.com.

About iMiller Public Relations

iMiller Public Relations (iMPR) is a results-driven, independent public relations and content marketing consulting firm. iMPR works with global telecom and technology companies that when coalesced represent more than $100B in revenues.  At the forefront of our market leadership positioning is iMPR’s industry thought-leadership, where our consultative, industry-insider perspective helps clients propel their messages more effectively. Our services include: Strategic Media Relations, Digital Marketing, Product Marketing, Social Media, Event Planning, Creative and Content Development, and more.  For more information, visit www.imillerpr.com.

Media Contact:

iMiller Public Relations
+1.866.307.2510
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Achieve Unite
+770-883-7794
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Partnership With Leading Internet Exchange in Richmond Advances Internet Connectivity and Expands the Network Edge

Herndon, VA – August 10, 2017 – EdgeConneX®, specializing in global data center solutions at the edge of the network, today announces its new partnership with Richmond Internet Exchange (Richmond-IX), building a connectivity node directly into its Richmond Edge Data Center® (EDC).   Richmond-IX was started in the fall of 2016 by Ninja-IX.  Located just 10 miles from downtown, the 101,796-square-foot Edge Data Center was purpose-built and precisely located to provide secure colocation for customers wishing to deliver content and applications to local-market consumers.

Positioned within a region that has historically been dependent on Ashburn for content delivery, this facility offers a diverse option for Richmond, while further expanding the edge of the network.  By partnering with Richmond-IX, EdgeConneX’s Richmond EDC will officially designate the Virginia state capital as an Edge market, bringing content closer to end-users throughout the region.  In addition, EdgeConneX’s strategic partnerships with network and cable operators at the local level guarantee the shortest and fastest carrier-neutral routes for effective content delivery to local market subscribers and internet customers.

“Following successful partnerships with EdgeConneX in Las Vegas and Phoenix, we’re looking forward to this latest venture, as it provides an opportunity for the peering community to grow outside of Ashburn,” says Paul Emmons, Executive Director of Ninja-IX (Phoenix, Vegas, Richmond, Sacramento).  “As the second existing Internet Exchange in the region, the availability of Richmond-IX within EdgeConneX’s Richmond EDC strengthens interconnectivity, providing an added layer of IX redundancy and diversity.”

The new Richmond EDC provides concurrently maintainable power with an N+1 configuration and direct cross-connects to the IX providing speeds from 100Mbps to multi-10Gbps for customers.  In addition, the building contains diverse Points of Entry (PoEs), with a variety of fiber conduits to physically diverse Meet-Me Rooms (MMRs).  Along with available interconnection services, the current list of carriers includes Comcast, Level 3 Communications, Summit IG and Zayo.

“It’s our mission to expand peering options across our entire global portfolio of Edge Data Centers,” explains Clint Heiden, Chief Commercial Officer of EdgeConneX.  “Our latest partnership with the Richmond-IX builds upon this mission, delivering the necessary connectivity to rapidly and securely deliver bandwidth-intensive content and applications to the edge.  In addition, by collaborating with Richmond-IX, we also gain the opportunity to provide our customers with these enhanced peering opportunities inside a flexible and scalable colocation environment, while giving tenants access to a diverse portfolio of content delivery networks.”

For more information about EdgeConneX and its leading Edge of network infrastructure solutions for expanding and improving access to wireless and data communications, visit  edgeconnex.com or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

# # #

About EdgeConneX®

EdgeConneX® is the only global Edge Data Center® provider.  Creating purpose-built, edge-of-network infrastructure solutions that extend the internet’s reach, EdgeConneX enables the fastest and most secure delivery of content, cloud services and applications. Edge Data Centers host bandwidth intensive and latency sensitive data closer to end-users, establishing a more secure, reliable and cost effective distribution model for the internet.  For more information, please visit the EdgeConneX Internet of Everywhere® at edgeconnex.com.

About Richmond Internet Exchange

Richmond-IX is part of Ninja-IX Corporation, a not for profit corporation that operates exchanges in Honolulu, Las Vegas, Phoenix, Richmond and Sacramento.  Since 2012 our goal is to provide local peering fabrics in locations that are underserved or cost prohibitive.  Currently all of our projects feature no monthly service charge from the IX. Ninja-IX provides exchanges based Brocade Switches with Multi-Protocol Label Switching (MPLS) interconnection, BIRD Route Servers and 24x7 monitoring and maintained by volunteers.  Critical internet infrastructure such as Root Servers and as112 are also collocated in our fabrics.  Many US content delivery networks (CDNS) are participants in our various projects.  For more information, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.  or see ninja-ix.net.

MEDIA CONTACT:

iMiller Public Relations for EdgeConneX
+1 866 307 2510
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Wednesday, 09 August 2017 19:32

Hudson Fiber Network Selects Epsilon to Extend Network Reach Featured

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Epsilon Provides HFN With Global Networking Services via its London, New York and Hong Kong Facilities

PARAMUS, NJ and SINGAPORE – AUGUST 9, 2017 Epsilon, a privately owned global communications service provider, today announces its partnership with Hudson Fiber Network (HFN), a premier data transport provider offering high-bandwidth, low-latency fiber networking solutions for financial, content, carrier and enterprise customers.  The partnership extends HFN’s global footprint over the network powered by Epsilon.

Following Epsilon’s acquisition of Metcom Network Services (MNS), HFN, a legacy MNS customer, confirmed its commitment to expand its service offerings across Epsilon’s strategic connections across Europe, Asia and the Middle East, stitched with core backhaul connectivity to New York.  With growing global infrastructure requirements, HFN will colocate in interconnections hubs operated by Epsilon in London and Hong Kong.

In addition, HFN will use Epsilon’s local access services in Europe and Asia via its Enterprise Connect product line.  The agreement includes a joint project to help HFN further the delivery of its exceptional network performance and quality of service across all markets.  By partnering with Epsilon, HFN eliminates the need for distributed procurement teams to manage local service provider relationships and network operations.

“We have grown significantly and are very excited to leverage Epsilon’s colocation facilities and global network reach to further extend connectivity services to our customers worldwide. It will support our mission to deliver high-performance network services throughout key U.S. and global markets,” explains Brett Diamond, CEO, HFN. “We look forward to expanding upon our partnership with additional Dedicated Internet Access and transport services in the future.”

Epsilon’s network is a carrier-grade, next-generation terabit optical global backbone, which incorporates a unique on-demand networking technology.  It is deployed across 90 Points of Presence (PoPs) globally and connects over 600 network operators, communications and Cloud Service Providers (CSPs).

“This partnership demonstrates Epsilon’s service capabilities to assist fast-growing connectivity service providers with global network reach across our widespread network,” shares Jerzy Szlosarek, CEO, Epsilon.  “We look forward to a long-lasting relationship with HFN as they continue to grow their service capabilities by providing them the simplest and most efficient way to serve their customers around the world, while expanding our services to other US regional network providers.”

For more information about Epsilon, visit www.epsilontel.com. And, to learn more about HFN, visit www.hudsonfiber.com.

#         #         #

ABOUT EPSILON

Epsilon is a global Cloud Centric Network service provider, extending carrier grade connectivity services to the world’s Communications and Cloud ecosystems.  The company offers smart networking capabilities that combine on demand infrastructure, automation, web-based portals and APIs to give partners friction-free access to global connectivity.  All Epsilon services are powered by a next generation hyper-scalable global backbone which connects all the leading telecoms hubs globally.  Across this fabric encompasses a dense ecosystem of carriers, service operators and cloud providers offering the leading interconnect point for a diverse set of network and connectivity requirements. www.epsilontel.com.

ABOUT HUDSON FIBER NETWORK (HFN)                                                                             

Hudson Fiber Network (HFN) is a premier data transport provider, offering flexible networking solutions to help increase network efficiency and lower overall networking expenditures for financial, content, carrier and enterprise clients.  HFN fully owns and operates the HFN Northeast Network connecting over 90 locations of the busiest traffic hubs in New York and New Jersey and onto its national WAN spanning the top 16 markets in the U.S.  The HFN suite of purpose-built solutions enables clients with increased network efficiency and lower overall networking expenditures.

Services include Gigabit Ethernet, optical wave solutions and IP connectivity (10 MB through 100 Gig), and are delivered in and between key U.S. and global metropolitan markets.  HFN was established in 2002 and is headquartered in Paramus, New Jersey.

For more information, please visit www.hudsonfiber.com  or contact us at 1-888-HFN-4573.

MEDIA INQUIRIES

iMiller Public Relations for Epsilon
Tel: +1 866.307.2510
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26FIVE Global Lab for Hudson Fiber Network
Melissa Coffman
+ 1 202.251.1793
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Lee’s Summit, MO - August 8, 2017Connected2Fiber, the leading SaaS go-to-market acceleration platform for connectivity companies, announces today that INDATEL has signed an agreement to implement The Connected World SaaS platform.  INDATEL has also adopted the Building List Manager, an automated software module for creating and distributing OnNet and NearNet building lists to drive wholesale and channel market participation.

INDATEL is a Nationwide Network that provides fiber connectivity to rural and urban America. INDATEL is uniquely positioned to provide broadband telecommunications services to many places that other carriers cannot reach.  INDATEL’s network represents over 100,000+ fiber optic route miles of middle-mile network and 100’s of thousands of last-mile fiber optic facilities via its 29 members, who represent 700+

Rural Local Exchange Carriers.  The INDATEL Services network currently serves over 5,000+ communities and 100,000+ fiber-serviceable on-net and near-net buildings.

“Our Nationwide Network of members excel in delivering reliable connectivity via fiber optic network routes throughout communities across America,” says Justin Forte, Director of National Sales at INDATEL Services.  “Now, with Connected2Fiber, we have a platform that can create, design and program building lists to be distributed in customer-preferred formats in less than four clicks, a process that will increase our participation in the market with carriers, service providers and content companies needing access to our reach.  We also get access to the visualization tool, showing our entire internal team our routes, OnNet and NearNet buildings and key market data, eliminating version control or manual updates.  We are excited to partner with Connected2Fiber and implement their platform to help drive growth and participation.”

The Connected World is the connectivity industry’s first market acceleration platform built to help network operators see and manage their assets with market intelligence.  The SaaS platform enables OnNet and NearNet location management, route tracking, interconnection and building list automation, all in a visual, automated toolset designed for the connectivity industry.

“We welcome INDATEL to our platform and look forward to helping them drive participation in the market,” states Ben Edmond, CEO and Founder of Connected2Fiber.  “INDATEL is a leading provider of fiber transport throughout the country and provides unique access to the market.  Networks like INDATEL provide tremendous value to the market, and it is our mission to make sure their reach is participating with all of their partners, every time they build new routes and add more OnNet buildings.  Location management and intelligence are at the heart of The Connected World, ensuring transparency for market intelligence to provide context and help network operators like INDATEL grow.”

# # #

About INDATEL™

INDATEL started as the trade association INDATELgroup and eventually formed an LLC subsidiary, INDATEL Services; they are now a single organization.  INDATEL connects a significant amount of network assets, all of which are independently owned by its members.  INDATEL counts 29 networks across 43 states, with ties to over 700+ RLECs as the core of Nationwide Network.  Their Network spans over 100K+ route miles of fiber connectivity that reach into over 5,000+ communities, with over 1,100+ POPs in 52 tier one markets.  Within the INDATEL Services Nationwide Network, there are multiple data centers and access tandems, providing in demand capabilities for their members’ carrier and enterprise customers. www.indatel.com

About Connected2Fiber

Connected2Fiber helps the connectivity industry transact, improving return on sales and marketing investment, with the industry's only Software-as-a-Service (SaaS) market enablement platform that combines account-based marketing and location intelligence, with predictive algorithms to improve results. The Connected World platform helps network owners improve transparency, speed and effectiveness with Visualization, Targeting, Engagement, Analytics and Predictive algorithms.  Connected2Fiber is headquartered in Hopkinton, MA, and was founded in 2015 by Ben Edmond. www.connected2fiber.com

Media Inquiries

iMiller Public Relations for Connected2Fiber, Inc.
Tel.: +1.866.307.2510
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Connected2Fiber, Inc.
Tel.: 1.508.202.1807
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INDATEL
Tel.: 1.816.888.8304
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Monday, 07 August 2017 23:13

Unitas Global Named to 2017 CRN Fast Growth 150 List Featured

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Unitas Places #6 as List Recognizes Thriving Solution Providers in the IT Channel

LOS ANGELES – August 7, 2017Unitas Global, a leading enterprise hybrid cloud solution provider, announces today that it has been listed as number six on the 2017 Fast Growth 150 list by CRN®, a brand of The Channel Company.  The list is CRN’s annual ranking of North American-based technology integrators, solution providers and IT consultants with gross sales of at least $1 million that have experienced significant economic growth over the past two years.

“At Unitas Global, our first priority is to deliver the highest quality cloud services available to meet global enterprises’ needs,” explains Patrick Shutt, CEO, Unitas Global.  “As a result of this dedication, our company has experienced fantastic growth in recent years, which is a direct reflection of the hard work and dedication of the Unitas Global team.  We are honored to be included on CRN’s 2017 Fast Growth 150 list and look forward to building upon this momentum for years to come.”

“We are excited at Unitas to be a part of the CRN’s 2017 Fast Growth 150 list,” adds Grant Kirkwood, Co-Founder and CTO, Unitas Global.  “Responding to the technological and global demand as enterprises migrate to hybrid cloud has allowed us to achieve our rapid growth.”

Achieving revenue growth of 186% CAGR over the last four years, Unitas Global provides clients with custom, highly secure, fully managed cloud-based IT environments that are simple to consume.  By transferring daily infrastructure operations to Unitas Global, clients can focus internal IT resources on their business-centric initiatives.

“The companies on CRN’s 2017 Fast Growth 150 list are thriving in what is now a very tumultuous, demanding IT channel climate,” says Robert Faletra, CEO of The Channel Company.  “This remarkable group of solution providers has successfully adapted to a landmark industry shift away from the traditional VAR business model to a more services-driven approach, outpacing competitors and emerging as true channel leaders.  We congratulate each of the Fast Growth 150 honorees and look forward to their continued success.”

The Fast Growth 150 list is highlighted in the August issue of CRN and can be viewed online at www.crn.com/fastgrowth150.

For more information about Unitas Global, visit www.unitasglobal.com

# # #

About Unitas Global

Unitas Global is a leading provider of enterprise hybrid cloud solutions.  The Unitas Enterprise Hybrid Cloud solution provides clients with custom, highly secure, and dedicated cloud-based IT environments that are easy-to-consume, fully managed, and backed by an end-to-end SLA, guaranteeing application uptime.  By offloading day-to-day infrastructure operations to Unitas Global, our clients are able to refocus and optimize their internal IT resources toward their business-centric initiatives.  Unitas is headquartered in Los Angeles, with clients and locations spanning the globe.  For more information, please visit www.unitasglobal.com.

About the Channel Company

The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education, and innovative marketing services and platforms.  As the channel catalyst, we connect and empower technology suppliers, solution providers and end users.  Backed by more than 30 years of unequaled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelco.com

Melanie Turpin

The Channel Company

(508) 416-1195

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iMiller Public Relations for Unitas Global

+1.866.307.2510

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Thursday, 03 August 2017 23:26

GTT Reports Second Quarter 2017 Financial Results Featured

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Drives Continued Growth and Margin Expansion

Q2 Revenue Grew 44.4% Year-Over-Year to $186.2 Million; Up 2.1% Sequentially

Q2 Adjusted EBITDA Grew 77.7% Year-Over-Year to $53.8 Million; Up 6.0% Sequentially

 

McLean, VA, August 3, 2017 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, 2017.

Second quarter highlights:

  • Revenue of $186.2 million grew 44.4% over 2Q16, and grew 2.1% over 1Q17.
  • Net income was $0.6 million, compared to net income of $0.1 million in 2Q16 and net loss of $13.1 million in 1Q17. 1Q17 net loss included $24.4 million in non-recurring costs related to the Hibernia Networks (“Hibernia”) acquisition and related debt refinancing.
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) of $53.8 million grew 77.7% over 2Q16, and grew 6.0% over 1Q17. Adjusted EBITDA margin of 28.9% grew 540 basis points over 2Q16 and grew 110 basis points over 1Q17.
  • Capital expenditures were $9.3 million (5.0% of revenue), compared to $4.8 million in 2Q16 (3.7% of revenue) and $8.5 million in 1Q17 (4.6% of revenue).
  • Using constant currency (i) 2Q17 revenue and Adjusted EBITDA would have been higher than reported by $3.0 million and $1.3 million, respectively, compared to 2Q16, and (ii) 2Q17 revenue, and Adjusted EBITDA would have been lower than reported by $0.8 million and $0.1 million, respectively, compared to 1Q17.

On a pro forma basis, assuming (i) Hibernia’s historical results had been included for all periods presented, and (ii) constant currency:

  • 2Q17 revenue and Adjusted EBITDA grew 9.2% and 22.7%, respectively, over 2Q16.
  • 2Q17 revenue and Adjusted EBITDA grew 1.7% and 5.9%, respectively, over 1Q17.

See “Annex A: Non-GAAP Financial Information” for more information regarding the computation of Adjusted EBITDA, constant currency and pro forma calculations.

“GTT delivered another solid quarter of growth and margin expansion,” stated Rick Calder, GTT president and CEO. “We are executing our growth strategy both through selective acquisitions and the expansion of our new Divisions in Enterprise, Carrier and EMEA.”

“GTT continues to execute consistently,” stated Mike Sicoli, chief financial officer. “We are on track to achieve $30 million in annualized cost synergies from the Hibernia acquisition. We plan to close the acquisition of Global Capacity by the end of the third quarter and, after integration, we expect to achieve our next financial objectives of $1 billion in revenue and $250 million in Adjusted EBITDA.”

Conference Call Information
GTT will hold a conference call on Thursday, August 3, 2017, at 10:00 a.m. Eastern Time. To participate in the live conference call, interested parties may dial +1.844.875.6916 or +1.412.317.6714, enter passcode 10109686, and ask for the GTT Communications call, or view the webcast at GTT’s website.

A telephonic replay of the conference call will be available for one week and may be accessed by calling +1.877.344.7529 or +1.412.317.0088 and using the passcode 10109686. The webcast will be archived in the investor relations section of GTT's website.

Forward-Looking Statements
This earnings release includes certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding GTT Communications, Inc.’s, plans, objectives and strategies or future events or future financial performance. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks, which increase the uncertainty inherent in forward-looking statements. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.

About GTT

GTT provides multinationals with a better way to reach the cloud through its suite of cloud networking services, including wide area networking, Internet, managed services and voice services. The company’s Tier 1 IP network, ranked in the top five worldwide, connects clients to any location in the world and any application in the cloud. GTT delivers an outstanding client experience by living its core values of simplicity, speed and agility. For more information on how GTT is redefining global communications, please visit www.gtt.net.

GTT Media Inquiries:

Gina Nomellini
Capaccio, LHA
+1.512.721.0338
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GTT Investor Relations:

Jody Burfening/Carolyn Capaccio, LHA
+1.212.838.3777
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GTT Communications, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in millions, except per share data)

  Three Months Ended June 30,   Six Months Ended June 30,
  2017   2016   2017   2016
               
Revenue:              
Telecommunications services $ 186.2     $ 128.9     $ 368.6     $ 253.4  
               
Operating expenses:              
Cost of telecommunications services 93.4     68.3     184.8     134.5  
Selling, general and administrative expenses 46.7     35.9     99.7     68.1  
Severance, restructuring and other exit costs 0.1         10.7     1.5  
Depreciation and amortization 31.5     15.7     61.8     31.3  
               
Total operating expenses 171.7     119.9     357.0     235.4  
               
Operating income 14.5     9.0     11.6     18.0  
               
Other expense:              
Interest expense, net (16.6 )   (7.1 )   (32.5 )   (14.5 )
Loss on debt extinguishment     (1.6 )   (5.7 )   (1.6 )
Other expense, net 0.1     (0.2 )       (0.5 )
               
Total other expense (16.5 )   (8.9 )   (38.2 )   (16.6 )
               
(Loss) income before income taxes (2.0 )   0.1     (26.5 )   1.4  
               
(Benefit from) provision for income taxes (2.6 )       (14.1 )   0.4  
               
Net income (loss) $ 0.6     $ 0.1     $ (12.5 )   $ 1.0  
               
Earnings (loss) per share:              
Basic $ 0.02     $     $ (0.31 )   $ 0.03  
Diluted $ 0.02     $     $ (0.31 )   $ 0.03  
               
Weighted average shares:              
Basic 41,244,595     37,065,651     40,849,453     37,016,720  
Diluted 41,819,377     37,678,120     40,849,453     37,575,397  

GTT Communications, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in millions, except per share data)

  June 30, 2017   December 31, 2016
ASSETS      
Current assets:      
Cash and cash equivalents $ 130.7     $ 29.7  
Accounts receivable, net of allowances of $3.7 and $2.7, respectively 100.0     76.3  
Deferred costs 3.2     3.4  
Prepaid expenses 20.5     5.8  
Other assets 5.5     3.6  
Total current assets 259.9     118.8  
Restricted cash and cash equivalents     304.3  
Property and equipment, net 470.3     43.4  
Intangible assets, net 395.5     193.9  
Goodwill 490.2     280.6  
Other long-term assets 33.7     12.3  
Total assets $ 1,649.6     $ 953.3  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 21.8     $ 11.3  
Accrued expenses and other current liabilities 54.6     36.9  
Acquisition earn-outs and holdbacks 17.8     24.4  
Current portion of capital lease obligations 1.6     1.0  
Current portion of long-term debt 7.0     4.3  
Deferred revenue 50.7     17.9  
Total current liabilities 153.5     95.8  
Capital lease obligations, long-term portion 0.8     0.1  
Long-term debt 1,108.8     725.2  
Deferred revenue, long-term portion 116.3     3.4  
Deferred tax liability 28.7      
Other long-term liabilities 19.9     1.0  
Total liabilities 1,428.0     825.5  
Commitments and contingencies      
Stockholders’ equity:      
Common stock, par value $.0001 per share, 80,000,000 shares authorized, 41,272,319 and 37,228,144 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively      
Additional paid-in capital 291.9     197.3  
Accumulated deficit (65.9 )   (64.6 )
Accumulated other comprehensive loss (4.4 )   (4.9 )
Total stockholders’ equity 221.6     127.8  
Total liabilities and stockholders’ equity $ 1,649.6     $ 953.3  

GTT Communications, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in millions)

  Three Months Ended June 30,   Six Months Ended June 30,
  2017   2016   2017   2016
Cash flows from operating activities:              
Net income (loss) $ 0.6     $ 0.1     $ (12.5 )   $ 1.0  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
Depreciation and amortization 31.5     15.7     61.8     31.3  
Share-based compensation 5.3     4.5     9.9     6.1  
Debt discount amortization 0.2         0.5     0.3  
Loss on debt extinguishment     1.6     5.7     1.6  
Amortization of debt issuance costs 0.9     0.4     1.6     0.9  
Excess tax benefit and deferred income taxes (0.5 )       (13.5 )    
Non-cash deferred revenue (9.6 )   (1.6 )   (21.3 )   (3.3 )
Non-cash deferred costs 2.9     0.6     3.8     1.3  
Changes in operating assets and liabilities, net of acquisitions: (7.3 )   (8.2 )   (9.9 )   (19.8 )
Net cash provided by operating activities 24.0     13.1     26.2     19.4  
               
Cash flows from investing activities:              
Acquisition of businesses, net of cash acquired (39.4 )       (552.5 )   (13.7 )
Purchase of customer contracts (11.0 )   (6.0 )   (14.9 )   (6.0 )
Change in restricted cash and cash equivalents         304.3      
Purchases of property and equipment (9.3 )   (4.8 )   (17.8 )   (12.3 )
Net cash used in investing activities (59.7 )   (10.8 )   (280.9 )   (32.0 )
               
Cash flows from financing activities:              
Proceeds from senior note 159.0         159.0      
Proceeds from revolving line of credit     16.0         30.0  
Repayment of revolving line of credit     (29.0 )   (20.0 )   (29.0 )
Proceeds from term loan     29.9     696.5     29.9  
Repayment of term loan (1.8 )   (1.1 )   (429.3 )   (2.1 )
Payment of earn-out and holdbacks (18.5 )   (9.9 )   (20.3 )   (10.9 )
Debt issuance costs (3.0 )   (0.9 )   (27.7 )   (0.9 )
Repayment of capital leases (0.3 )   (0.4 )   (0.6 )   (0.5 )
Proceeds from issuance of common stock under ESPP 0.2         0.3      
Tax withholding related to the vesting of restricted stock units (0.9 )   (1.1 )   (2.3 )   (1.6 )
Exercise of stock options (0.2 )   0.1     0.6     0.2  
Net cash provided by financing activities 134.5     3.6     356.2     15.1  
Effect of exchange rate changes on cash (1.1 )   (0.8 )   (0.5 )   (1.7 )
Net increase in cash and cash equivalents 97.7     5.1     101.0     0.8  
Cash and cash equivalents at beginning of period 33.0     14.6     29.7     14.6  
Cash and cash equivalents at end of period $ 130.7     $ 19.7     $ 130.7     $ 15.4  

ANNEX A: Non-GAAP Financial Information

In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), from time to time we may use or publicly disclose certain “non-GAAP financial measures” in the course of our financial presentations, earnings releases, earnings conference calls and otherwise. For these purposes, the U.S. Securities and Exchange Commission (“SEC”) defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial positions or cash flows that (i) excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements, and (ii) includes amounts, or is subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure so calculated and presented.

Non-GAAP financial measures are provided as additional information to investors to provide an alternative method for assessing our financial condition and operating results. We believe that these non-GAAP measures, when taken together with our GAAP financial measures, allow us and our investors to better evaluate our performance and profitability. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. These measures should be used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures.

Pursuant to the requirements of Regulation G, whenever we refer to a non-GAAP financial measure, we will also generally present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)

Adjusted EBITDA is defined as net income/(loss) before interest, income taxes, depreciation and amortization (“EBITDA”) adjusted to exclude severance, restructuring and other exit costs, acquisition-related transaction and integration costs, losses on extinguishment of debt, stock-based compensation and, from time to time, other non-cash or non-recurring items.

We use Adjusted EBITDA to evaluate operating performance, and this financial measure is among the primary measures we use for planning and forecasting future periods. We further believe that the presentation of Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by management and makes it easier to compare our results with the results of other companies that have different financing and capital structures. In addition, we have debt covenants that are based on a leverage ratio that utilizes a modified EBITDA calculation, as defined in our Credit Agreement. The modified EBITDA calculation is similar to our definition of Adjusted EBITDA; however, it includes the pro forma Adjusted EBITDA of and expected cost synergies from the companies acquired by us during the applicable reporting period. Finally, Adjusted EBITDA results, along with other quantitative and qualitative information, are utilized by management and our compensation committee for purposes of determining bonus payouts to our employees.

Adjusted EBITDA Less Capital Expenditures

Adjusted EBITDA less purchases of property and equipment, which we also refer to as capital expenditures, is a performance measure that is used to evaluate the appropriate level of capital expenditures needed to support our expected revenue and to provide a comparable view of our performance relative to other telecommunications companies that may utilize different strategies for providing access to fiber-based services and related infrastructure. We use a “capex light” strategy, which means we purchase fiber-based services and related infrastructure from other providers on an as-needed basis, pursuant to our customers’ requirements. Many other telecommunications companies spend significant amounts of capital expenditures to construct their own fiber networks and data centers, and attempt to purchase as little as possible from other providers. As a result of our strategy, we typically have lower Adjusted EBITDA margins compared to other providers but also spend much less on capital expenditures relative to our revenue. We believe it is important to take both of these factors into account when evaluating our performance.

The following is a reconciliation of Adjusted EBITDA and Adjusted EBITDA less capital expenditures from Net (Loss) Income (amounts in millions):

  Three Months Ended June 30,   Six Months Ended June 30,
  2017   2016   2017   2016
               
Adjusted EBITDA              
Net income (loss) $ 0.6     $ 0.1     $ (12.5 )   $ 1.0  
(Benefit from) provision for income taxes (2.6 )       (14.1 )   0.4  
Interest and other expense, net 16.5     7.3     32.5     15.0  
Loss on debt extinguishment     1.6     5.7     1.6  
Depreciation and amortization 31.5     15.7     61.8     31.3  
Severance, restructuring and other exit costs 0.1         10.7     1.5  
Transaction and integration costs 2.3     1.1     10.4     2.3  
Share-based compensation 5.3     4.5     9.9     6.1  
Adjusted EBITDA 53.7     30.3     104.4     59.2  
Purchases of property and equipment (9.3 )   (4.8 )   (17.7 )   (12.3 )
Adjusted EBITDA less capital expenditures $ 44.4     $ 25.5     $ 86.7     $ 46.9  

Constant Currency

We evaluate our results of operations both as reported and on a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information offers valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency results by converting our current-period local currency financial results using prior-period exchange rates and comparing these adjusted amounts to our prior-period reported results.

Pro Forma Financial Information

In addition to financial measures prepared in accordance with GAAP, from time to time we may use or publicly disclose certain “pro forma” financial measures in the course of our financial presentations, earnings releases, earnings conference calls and otherwise. We believe certain pro forma financial measures provide a more comparable view of our results relative to prior periods, particularly given the number of acquisitions we have completed in the past.

The following unaudited pro forma financial information and related notes present the historical information of GTT as if the acquisition of Hibernia Networks (“Hibernia”) had occurred on the first day of the period presented.

For the three months ended June 30, 2017, compared with the three months ended June 30, 2016, the following unaudited financial information presents historical GTT information as if the acquisition of Hibernia had occurred on the first day of the period presented, as reported and in constant currency:

($ in millions)

Three Months Ended

June 30

  2017   2016
Revenue      
GTT as reported $ 186.2     $ 128.9  
GTT pro forma adjustments      
Hibernia as reported     45.8  
Hibernia pro forma adjustments (1)     (1.5 )
Pro Forma Revenue $ 186.2     $ 173.2  
Pro Forma % Growth 7.5 %    
Pro Forma % Growth (Constant Currency) 9.2 %    
       
Adjusted EBITDA      
GTT as reported $ 53.8     $ 30.3  
GTT pro forma adjustments      
Hibernia as reported     15.8  
Hibernia pro forma adjustments (2)     (1.1 )
Pro Forma Adjusted EBITDA $ 53.8     $ 45.0  
Pro Forma Adjusted EBITDA Margin % 28.9 %   25.9 %
Pro Forma % Growth 19.8 %    
Pro Forma % Growth (Constant Currency) 22.7 %    
(1) Represents revenue recognized by acquired companies from GTT prior to their respective close dates and adjustments in deferred revenue from acquired companies.

(2) Represents adjustments in deferred revenue from acquired companies.

 

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