FTE Networks Reports Third Quarter 2018 Results

FTE Networks (NYSEA:FTNW) announced its financial results for the three-month period ended September 30, 2018 with the company reporting revenues of US$92.2 million.

Further, the company has reiterated its previously announced financial guidance for 2018 with FTE Networks expecting a net revenue of US$350 million.

As quoted in the press release:

Financial Highlights for the Third Quarter of 2018

• Total revenue of $92.2 million
• Gross margin was 19% (as adjusted)
• Adjusted EBITDA of $7.8 million, representing an Adjusted EBITDA margin of 8.5%
• Adjusted EPS of $0.04 per share

“We are experiencing an accelerated rate of CrossLayer-related contract activity and have closed multiple new agreements recently, increasing our total buildings on-net to 14 and expect to add seven additional properties under contract that are pending implementation.  We will be providing more information on these projects in the near term.  In addition, we have several contracts that are in the very late stages of negotiation, which are expected to close in the coming weeks and may include agreements covering multiple properties,” stated Michael Palleschi, President and CEO of FTE Networks.

Operational Highlights

• Announced new infrastructure and technology expansion projects valued at approximately $442.8 million year-to-date, as of September 30, 2018
• Achieved a combined backlog of approximately $474 million as of September 30, 2018
• Subsequent to the end of the third quarter, the Company retired the first of three seller notes payable in the aggregate amount of $7.5 million
• Closed the first CrossLayer contract in Scottsdale, AZ as a result of our strategic partnership with a global real estate development company
• CrossLayer announced a strategic partnership with Canadian construction company and expansion into Canadian market
• CrossLayer expanded buildings on-net (ability to sell services to Tenants) in premier New York fashion district market
• Increased CrossLayer buildings on-net to 14
• Expect to add 7 additional CrossLayer buildings under contract, pending implementation

Financial Guidance for 2018

Based on results year to date, the Company is reiterating its previously issued financial guidance for 2018.  Expectations remain as follows:

• Net revenue of $350 million

• Adjusted EBITDA of $30 million

• Buildings on-net, 30

Click here for the full text release.