GTT Communications, Inc. (GTLT) has reported 190.98 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $5.13 million, or $0.14 a share in the quarter, compared with $1.76 million, or $0.05 a share for the same period last year. Revenue during the quarter surged 35.93 percent to $131.85 million from $97 million in the previous year period. Gross margin for the quarter expanded 330 basis points over the previous year period to 48.29 percent. Total expenses were 90.72 percent of quarterly revenues, down from 94.38 percent for the same period last year. This has led to an improvement of 366 basis points in operating margin to 9.28 percent.
Operating income for the quarter was $12.24 million, compared with $5.45 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $32.14 million compared with $20.85 million in the prior year period. At the same time, adjusted EBITDA margin improved 288 basis points in the quarter to 24.37 percent from 21.49 percent in the last year period.
"GTT again delivered strong growth and profitability in the third quarter," stated Rick Calder, GTT president and chief executive officer. "For the remainder of the year, we remain focused on consistent execution of our growth strategy. Our results demonstrate that GTT has emerged as the challenger brand in our industry, providing a better way to reach the cloud for our multinational clients by living our core values of simplicity, speed and agility."
Operating cash flow improves significantlyGTT Communications, Inc. has generated cash of $32.77 million from operating activities during the nine month period, up 64.80 percent or $12.88 million, when compared with the last year period. The company has spent $37.96 million cash to meet investing activities during the nine month period as against cash outgo of $141.24 million in the last year period.
Cash flow from financing activities was $7.87 million for the nine month period, down 91.31 percent or $82.72 million, when compared with the last year period.
Cash and cash equivalents stood at $15.41 million as on Sep. 30, 2016, down 21.84 percent or $4.31 million from $19.71 million on Sep. 30, 2015.
Working capital turns positive
Working capital of GTT Communications, Inc. has turned positive to $34.20 million on Sep. 30, 2016 from negative $19.97 million on Sep. 30, 2015. Current ratio was at 1.42 as on Sep. 30, 2016, up from 0.79 on Sep. 30, 2015.
Days sales outstanding were almost stable at 45 days for the quarter, when compared with the last year period.
Debt increases substantially
GTT Communications, Inc. has witnessed an increase in total debt over the last one year. It stood at $417.99 million as on Sep. 30, 2016, up 3,534.66 percent or $406.49 million from $11.50 million on Sep. 30, 2015. Total debt was 66.58 percent of total assets as on Sep. 30, 2016, compared with 2.92 percent on Sep. 30, 2015. Debt to equity ratio was at 3.33 as on Sep. 30, 2016, up from 0.14 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.72 for the quarter from 1.77 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: editor@irisindia.net
