NAPLES, FL / ACCESSWIRE / August 31, 2017 / FTE Networks, Inc. (OTCQX: FTNW) (FTE, we, us or the Company), a leading provider of innovative technology-oriented solutions for smart platforms, network infrastructure and buildings, is pleased to announce that SeeThruEquity has updated its report on the Company. The full report is available here: FTNW Update Note.
The text of SeeThruEquity’s press release, announcing its update on August 30, 2017, is copied below:
SeeThruEquity, a leading independent equity research, and corporate access firm focused on small-cap and micro-cap public companies, issued an update on FTE Networks, Inc. (FTNW).
Based in Naples, Florida, FTE Networks, Inc. (OTCQX: FTNW, “FTE Networks”) is a leading provider of innovative technology-oriented solutions for smart platforms, network infrastructure and buildings. FTE Networks has three operating subsidiaries, including: FTE Networks Services, which provides network infrastructure solutions; CrossLayer, which provides managed network services via an advanced network and cloud platform; and Benchmark Builders, which provides construction management for complex projects. Through these three complementary businesses, FTE Networks provides end-to-end design, build, and support solutions for state-of-the-art networks and commercial properties to create transformative smart platforms and buildings. FTE has made several advancements since our last update note on the company, with highlights including:
FTE completed the acquisition of Benchmark Builders, Inc. (“Benchmark”), adding a robust sales pipeline and technology complex interior construction capability
FTE reported record 2Q17 revenues of $50.2mn, which included contribution from Benchmark
FTE generated healthy adjusted operating income of $2.3mn, or 4.5% of revenues
FTE completes acquisition of Benchmark Builders
FTE completed the acquisition of Benchmark on April 20, 2017. The transaction adds significant scale and expands FTE’s service capabilities while adding marquee customers and more than doubling its sales backlog. Founded in 2008, Benchmark brings expertise in technologically complex interior construction, with experience in large projects in the telecommunications, commercial real estate, industrial, broadcast, technology, infrastructure, healthcare, and education industries. The combined company now has more than 200 employees and operations in 17 states and Europe. Importantly, the addition of Benchmark adds significant complementary services to FTE’s offerings, enabling the company to offer a full suite of end-to-end solutions to design, build, and outfit customer locations with advanced, flexible network and connectivity solutions using its multi-edge computing strategy.
FTE reports record revenue of $50.2mn, positive adjusted operating income for 2Q17
FTE reported record revenues of $50.2mn in 2Q17, as compared to $3.2mn in the year-ago period. The rise in revenues was primarily due to the company’s acquisition of Benchmark, which was included in results beginning April 21, 2017. In the results announcement, FTE Chief Executive Officer and President Michael Palleschi stated that the company had built “positive momentum” since the closing of the Benchmark transaction, and we look forward to learning more about how the company’s new multi-edge computing solution is being received in the market. Benchmark accounted for $44.5mn in revenues during this partial period. Core FTE revenues without the impact of Benchmark did increase by 96% to $5.3mn, versus $3.2mn in 2Q16. At the end of 2Q17, the company had a combined backlog of $346.7mn, according to its 10-Q filing.
Increasing target to $3.20 target following Benchmark deal
We are increasing our target for FTE Networks to $3.20 per share following the closing of the Benchmark deal. The target implies an Enterprise Value of 1.2x the company’s backlog of $347mn, and 13.5x 2018E EV/EBITDA, assuming 134.9mn shares and net debt of approximately $70mn. Upcoming catalysts for FTE include a planned listing on a major exchange and 2H17 operating results, which are expected to show increasing revenues.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high-quality research on underfollowed small-cap and micro-cap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
About FTE Networks, Inc.
FTE Networks, Inc. (FTNW) is a leading network infrastructure solutions provider to the technology and communications sectors. FTEs three complementary businesses are: FTE Networks Services (network infrastructure solutions); CrossLayer, Inc. (managed network services with first-of-its-kind advanced network and cloud platform); and Benchmark Builders, Inc. (construction management), which provides end-to-end design, build, and support solutions for state-of-the-art networks and commercial properties to create the most transformative smart platforms and buildings. FTEs businesses are predicated on smart design and consistent standards that reduce deployment costs and accelerate delivery of innovative projects and services. The company works with Fortune 100/500 companies, including some of the worlds leading communications services providers. FTE Networks and its subsidiaries operate eight lines of business including Data Center Infrastructure, Fiber Optics, Wireless Integration, Network Engineering, Internet Service Provider, Construction Management, General Contracting and Pre-Construction Services. With approximately 200+ employees, FTE and its entities have operations in 17 states. For more information, please visit www.ftenet.com.
Forward-Looking Statements
Any statements contained in this press release that does not describe historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for future operations, the development and commercialization of the Company’s products, or any of the Company’s other proposed products or services. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and actual events may differ considerably. There is no assurance that future developments affecting the Company will be those anticipated by the Company. The Company assumes no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release, except as required under applicable securities laws. Furthermore, the opinions espoused in the SeeThruEquity report do not necessarily represent the opinions and beliefs of the Company.
Media and Investor Relations:
FTE Networks, Inc.
999 Vanderbilt Beach Rd., Suite 601
Naples, FL 23108
(877) 850-4308
ir@ftenet.com
SOURCE: FTE Networks, Inc.
ReleaseID: 474310
