Capital expenditures were $6.4 million (4.7% of revenue), compared to
$4.2 million in 4Q15 (3.7% of revenue) and $5.5 million in 3Q16 (4.2%
of revenue).

Using constant currency (i) 4Q16 revenue and Adjusted EBITDA would
have been higher than reported by $2.1 million and $1.0 million,
respectively, compared to 4Q15, and (ii) 4Q16 revenue and Adjusted
EBITDA would have been higher than reported by $0.8 million and $0.4
million, respectively, compared to 3Q16.

The results above exclude the Hibernia Networks acquisition, which
closed on January 9, 2017. Please refer to the amended 8-K filed today,
March 8, 2017, to see Hibernia Networks’ 2016 results. In addition,
supplemental tables have been added to Annex A below to show GTT’s
revenue, Adjusted EBITDA and capex on a pro forma basis, assuming
Hibernia’s historical results had been included for all periods
presented.

“In 2016, GTT recorded another record year of growth and strategic
achievement, firmly establishing our position as the challenger brand in
our industry,” stated Rick Calder, GTT president and CEO. “In January,
we completed the acquisition of Hibernia Networks, and integration is on
schedule. For 2017, we will continue to drive execution of our growth
strategy by expanding our portfolio of cloud networking services,
extending our global network reach and delivering an outstanding client
experience by living our core values of simplicity, speed and agility.”

“GTT’s fourth quarter performance demonstrated consistent execution,
delivering strong growth in revenue and cash flow, as well as margin
expansion,” stated Mike Sicoli, chief financial officer. “We are well
positioned to drive continued growth in revenue, profitability and cash
flow in 2017, and with the Hibernia Networks acquisition complete, we
have accelerated our progress toward 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 Wednesday March 8, 2017, at 8:30 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
10100716, 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 10100716. 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 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 Communications, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in millions, except for share and per share data)

Three Months Ended December 31

Year Ended

December 31

2016

2015

2016

2015

Revenue:

Telecommunications services

$

136.5

$

114.8

$

521.7

$

369.3

Operating expenses:

Cost of telecommunications services

71.4

61.9

274.0

204.5

Selling, general and administrativeexpenses

38.0

32.3

143.2

101.7

Severance, restructuring and other exitcosts

—

4.9

0.9

12.7

Depreciation and amortization

16.6

14.2

62.8

46.7

Total operating expenses

125.9

113.3

480.9

365.6

Operating income

10.6

1.5

40.8

3.7

Other expense:

Interest expense, net

(7.8

)

(6.1

)

(29.4

)

(13.9

)

Loss on debt extinguishment

—

(2.4

)

(1.6

)

(3.4

)

Other expense, net

—

0.6

(0.6

)

(1.2

)

Total other expense

(7.8

)

(7.9

)

(31.6

)

(18.5

)

Income (loss) before income taxes

2.8

(6.4

)

9.2

(14.8

)

Provision for (benefit from) income taxes

3.6

(34.0

)

3.9

(34.1

)

Net (loss) income

$

(0.9

)

$

27.6

$

5.3

$

19.3

(Loss) earnings per share:

Basic

$

(0.02

)

$

0.77

$

0.14

$

0.55

Diluted

$

(0.02

)

$

0.75

$

0.14

$

0.54

Weighted average shares:

Basic

37,221,037

36,060,212

37,055,663

34,973,284

Diluted

37,221,037

36,906,979

37,568,915

35,801,395

GTT Communications, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, amounts in millions, except for share and per share
data)

December 31, 2016

December 31, 2015

ASSETS

Current assets:

Cash and cash equivalents

$

29.7

$

14.6

Accounts receivable, net of allowances of $2,656 and $1,015,respectively

76.3

60.4

Deferred costs

3.4

4.2

Prepaid expenses and other assets

9.3

13.6

Total current assets

118.7

92.8

Restricted cash and cash equivalents

304.3

—

Property and equipment, net

43.4

38.8

Intangible assets, net

193.9

182.2

Goodwill

280.6

271.0

Other long-term assets

12.3

11.6

Total assets

$

953.2

$

596.4

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

11.3

22.7

Accrued expenses and other current liabilities

36.9

43.1

Acquisition earn-outs and holdbacks

24.4

12.8

Capital lease, current

1.0

1.4

Short-term portion of long-term debt

4.3

4.0

Deferred revenue, short-term portion

17.9

15.5

Total current liabilities

95.8

99.5

Capital lease, noncurrent

0.1

1.0

Long-term debt, term loan

425.2

382.2

Senior notes held in escrow

300.0

—

Deferred revenue, long-term portion

3.4

2.3

Other long-term liabilities

0.9

0.9

Total liabilities

825.4

485.9

Commitments and contingencies

Stockholders’ equity:

Common stock, par value $.0001 per share, 80,000,000 sharesauthorized,
37,228,144 and 36,533,634 shares issued andoutstanding as of
December 31, 2016 and 2015, respectively

Proceeds from issuance of common stock under employeestock
purchase plan

0.1

—

1.2

—

Tax withholding related to the vesting of restricted stock awards

(2.2

)

(1.5

)

(5.7

)

(3.5

)

Exercise of stock options

0.8

0.2

1.2

0.9

Net cash provided by financing activities

310.7

162.8

318.6

253.6

Effect of exchange rate changes on cash

0.6

0.8

(1.4

)

1.9

Net increase (decrease) in cash and cash equivalents

14.3

(5.1

)

15.1

(34.7

)

Cash and cash equivalents at beginning of year

15.4

19.7

14.6

49.3

Cash and cash equivalents at end of period

$

29.7

$

14.6

$

29.7

$

14.6

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 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 December 31,

Year Ended December 31,

(Amounts in millions, except share and per share data)

2016

2015

2016

2015

Adjusted EBITDA

Net (loss) income

$

(0.9

)

$

27.6

$

5.3

$

19.3

Provision for (benefit from) income taxes

3.6

(34.0

)

3.9

(34.1

)

Interest and other expense, net

7.8

5.5

30.0

15.1

Loss on debt extinguishment

—

2.4

1.6

3.4

Depreciation and amortization

16.6

14.2

62.8

46.7

Severance, restructuring and other exit costs

—

4.9

0.9

12.7

Transaction and integration costs

1.7

2.4

4.7

6.0

Share-based compensation

5.0

2.5

15.8

7.9

Adjusted EBITDA

33.8

25.5

125.0

77.0

Purchases of property and equipment

(6.4

)

(4.2

)

(24.2

)

(14.1

)

Adjusted EBITDA less capital expenditures

$

27.4

$

21.3

$

100.8

$

62.9

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 acquisitions
of Hibernia Networks (“Hibernia”), One Source Networks, Inc. (“OSN”),
and MegaPath Corporation ("MegaPath") had occurred on the first day of
the period presented, if applicable.

For the three months ended December 31, 2016, compared with the three
months ended December 31, 2015, the following unaudited financial
information presents historical GTT information as if the acquisition of
OSN had occurred on the first day of the period presented, as reported
and in constant currency:

($ in millions)

Three Months Ended

December 31

2016

2015

Revenue

GTT as reported

$

136.5

$

114.8

GTT pro forma adjustments (1)

—

—

OSN as reported

—

4.9

OSN pro forma adjustments (2)

—

(0.2

)

Pro Forma Revenue

$

136.5

$

119.5

Pro Forma % Growth

14.2

%

Pro Forma % Growth (Constant Currency)

16.0

%

Adjusted EBITDA

GTT as reported

$

33.8

$

25.5

GTT pro forma adjustments (3)

—

—

OSN as reported

—

1.2

OSN pro forma adjustments (4)

—

(0.1

)

Pro Forma Adjusted EBITDA

$

33.8

$

26.6

Pro Forma Adjusted EBITDA Margin %

24.8

%

22.3

%

Pro Forma % Growth

26.9

%

Pro Forma % Growth (Constant Currency)

30.8

%

(1) Represents revenue recognized by GTT from
acquired company prior to its respective close date

(2) Represents (i) revenue recognized by
acquired company from GTT prior to its respective close date and
(ii) non-recurring installation revenue historically recognized on a
cash basis by acquired company

(3) Represents revenue, net of expense,
recognized by GTT from acquired company prior to its respective
close date

For the three months ended December 31, 2016 compared with September 30,
2016, the following unaudited financial information presents historical
GTT information, as reported and in constant currency:

($ in millions)

Three Months Ended

December 31, 2016

September 30, 2016

Revenue

GTT as reported

$

136.5

$

131.9

Pro Forma Revenue

$

136.5

$

131.9

Pro Forma % Growth

3.5

%

Pro Forma % Growth (Constant Currency)

4.1

%

Adjusted EBITDA

GTT as reported

$

33.8

$

32.1

Pro Forma Adjusted EBITDA

$

33.8

$

32.1

Pro Forma Adjusted EBITDA Margin %

24.8

%

24.4

%

Pro Forma % Growth

5.1

%

Pro Forma % Growth (Constant Currency)

6.3

%

For the year ended December 31, 2016, compared with December 31, 2015,
the following unaudited financial information presents historical GTT
information as if the acquisitions of OSN and MegaPath had occurred on
the first day of the period presented, as reported and in constant
currency:

($ in millions)

Year Ended December 31

2016

2015

Revenue

GTT as reported

$

521.7

$

369.3

GTT pro forma adjustments (1)

—

(0.4

)

MegaPath as reported

—

33.0

MegaPath pro forma adjustments (2)

—

(1.7

)

OSN as reported

—

65.5

OSN pro forma adjustments (2)

—

(2.1

)

Pro Forma Revenue

$

521.7

$

463.6

Pro Forma % Growth

12.5

%

Pro Forma % Growth (Constant Currency)

13.1

%

Adjusted EBITDA

GTT as reported

$

125.0

$

77.0

GTT pro forma adjustments (3)

—

—

MegaPath as reported

—

5.0

MegaPath pro forma adjustments (4)

—

—

OSN as reported

—

12.9

OSN pro forma adjustments (4)

—

0.8

Pro Forma Adjusted EBITDA

$

125.0

$

95.7

Pro Forma Adjusted EBITDA Margin %

24.0

%

20.6

%

Pro Forma % Growth

30.7

%

Pro Forma % Growth (Constant Currency)

31.9

%

(1) Represents revenue recognized by GTT from
acquired companies prior to their respective close dates.

(2) Represents (i) revenue recognized by
acquired companies from GTT prior to their respective close dates
and (ii) non-recurring installation revenue historically recognized
on a cash basis by acquired companies.

(3) Represents revenue, net of expense,
recognized by GTT from acquired companies prior to their respective
close dates.

For the three months ended December 31, 2016, compared with the three
months ended December 31, 2015, the following unaudited financial
information presents historical GTT information as if the acquisitions
of Hibernia and OSN had occurred on the first day of the period
presented, as reported and in constant currency:

($ in millions)

Three Months Ended

December 31, 2016

December 31, 2015

Revenue

GTT as reported

$

136.5

$

114.8

GTT pro forma adjustments (1)

—

—

OSN as reported

—

4.9

OSN pro forma adjustments (2)

—

(0.2

)

Hibernia as reported

43.4

44.5

Hibernia pro forma adjustments (2)

(1.5

)

(1.5

)

Pro Forma Revenue

$

178.4

$

162.5

Pro Forma % Growth

9.8

%

Pro Forma % Growth (Constant Currency)

12.1

%

Adjusted EBITDA

GTT as reported

$

33.8

$

25.5

GTT pro forma adjustments (3)

—

—

OSN as reported

—

1.2

OSN pro forma adjustments (4)

—

(0.1

)

Hibernia as reported

16.8

13.8

Hibernia pro forma adjustments (4)

(1.1

)

(1.1

)

Pro Forma Adjusted EBITDA

$

49.5

$

39.3

Pro Forma Adjusted EBITDA Margin %

27.7

%

24.2

%

Pro Forma % Growth

25.9

%

Pro Forma % Growth (Constant Currency)

29.2

%

(1) Represents revenue recognized by GTT from
acquired companies prior to their respective close dates

(2) Represents (i) revenue recognized by
acquired companies from GTT prior to their respective close dates
and (ii) non-recurring installation revenue historically recognized
on a cash basis by acquired companies, and (iii) adjustments in
deferred revenue from acquired companies.

(3) Represents revenue, net of expense,
recognized by GTT from acquired companies prior to their respective
close dates

For the three months ended December 31, 2016 compared with September 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

December 31, 2016

September 30, 2016

Revenue

GTT as reported

$

136.5

$

131.9

Hibernia as reported

43.4

45.5

Hibernia pro forma adjustments (1)

(1.5

)

(1.5

)

Pro Forma Revenue

$

178.4

$

175.9

Pro Forma % Growth

1.5

%

Pro Forma % Growth (Constant Currency)

2.3

%

Adjusted EBITDA

GTT as reported

$

33.8

$

32.1

Hibernia as reported

$

16.8

$

16.1

Hibernia pro forma adjustments (2)

$

(1.1

)

$

(1.1

)

Pro Forma Adjusted EBITDA

$

49.4

$

47.1

Pro Forma Adjusted EBITDA Margin %

27.7

%

26.8

%

Pro Forma % Growth

5.0

%

Pro Forma % Growth (Constant Currency)

6.0

%

(1) Represents (i) revenue recognized by
acquired company from GTT prior to its respective close date, (ii)
non-recurring installation revenue historically recognized on a cash
basis by acquired company, and (iii) adjustments in deferred revenue
from acquired company.

For the year ended December 31, 2016, compared with December 31, 2015,
the following unaudited financial information presents historical GTT
information as if the acquisitions of Hibernia, OSN and MegaPath had
occurred on the first day of the period presented, as reported and in
constant currency:

($ in millions)

Year Ended

December 31, 2016

December 31, 2015

Revenue

GTT as reported

$

521.7

$

369.3

GTT pro forma adjustments (1)

—

(0.4

)

MegaPath as reported

—

33.0

MegaPath pro forma adjustments (2)

—

(1.7

)

OSN as reported

—

65.5

OSN pro forma adjustments (2)

—

(2.1

)

Hibernia as reported

182.1

148.9

Hibernia pro forma adjustments (2)

(5.9

)

(6.3

)

Pro Forma Revenue

$

697.9

$

606.2

Pro Forma % Growth

15.1

%

Pro Forma % Growth (Constant Currency)

15.8

%

Adjusted EBITDA

GTT as reported

$

125.0

$

77.0

GTT pro forma adjustments (3)

—

—

MegaPath as reported

—

5.0

MegaPath pro forma adjustments (4)

—

—

OSN as reported

—

12.9

OSN pro forma adjustments (4)

—

0.8

Hibernia as reported

65.9

34.2

Hibernia pro forma adjustments (4)

(4.5

)

(4.5

)

Pro Forma Adjusted EBITDA

$

186.4

$

125.4

Pro Forma Adjusted EBITDA Margin %

26.7

%

20.7

%

Pro Forma % Growth

48.6

%

Pro Forma % Growth (Constant Currency)

49.2

%

(1) Represents revenue recognized by GTT from
acquired companies prior to their respective close dates.

MCLEAN, Va.--(EON: Enhanced Online News)--GTT Communications, Inc. (NYSE:GTT), the leading global cloud networking provider to multinational clients, announced today that it will present at the upc... more »