Naples-based FTE Networks reports wider fourth-quarter loss

Naples-based FTE Networks reported a wider loss in the fourth quarter.

The technology, network-building and construction business lost more than $13.5 million, or $2.44 a share. That compared to losses of about $3 million, or $1.28 a share, in the same quarter a year ago. 

However, FTE's revenue growth remains strong.

Total revenue reached a record $110.5 million in the fourth quarter, up 40 percent from about $79.1 million in the third quarter.

More:FTE Networks reports record quarterly revenue

Earnings were negatively impacted by more than $7 million in one-time expenses, including financing and acquisition costs.

The company reported adjusted earnings of $7.5 million for the quarter.

In April 2017 FTE completed its acquisition of New York-based Benchmark Builders, which provides full-service interior and general contracting services, and it continues to grow and integrate that business into its operations.

Fourth quarter highlights include: 

• Achieving a backlog of $434 million in work to be completed.
• Uplisting to the New York Stock Exchange.

Year-to-date the company has announced new infrastructure and technology projects valued at $133 million.

The company was recently selected by Industry City to build and manage an ultra-fast, fiber optic network to provide internet connectivity across its 35-acre campus on the Brooklyn, New York, waterfront.

Industry City, dubbed “the SoHo of Sunset Park” by the New York Times, is home to more than 450 commercial tenants, including ABC Carpet, Brooklyn Kitchen and Conde Nast. 

For all of 2017, FTE reported revenue of $243.4 million. Revenue was bolstered by the company's acquisition of Benchmark nearly a year ago.

In 2016, total revenue was $12.3 million.

Net losses for 2017 were $20.1 million, or $4.23 a share. That compared to a loss of $6.2 million, or 10 cents a share, in 2016.

"We look forward to retiring these non-recurring expenses," said David Lethem, FTE's chief financial officer, in an earnings conference call Wednesday.

The company reported adjusted earnings of $21.2 million, or 83 cents a share, for last year.

In 2017 operating expenses rose to $38.6 million, up from $5.8 million in 2016. The company attributed the increase to several factors related to its acquisition of Benchmark including higher stock compensation costs and selling, general and administrative expenses.

"During 2017, FTE laid the foundation for dynamic growth by expanding its product and service portfolio and positioning itself as a provider of a complementary suite of technology and general contracting solutions that spans multiple high-growth market segments," said Michael Palleschi, the company's CEO, in a news release.

In 2017:FTE Networks moves to New York Stock Exchange

The company recently introduced CrossLayer, a technology that enables software and hardware ecosystems to be deployed on-site at the building, which can deliver carrier-grade network and cloud services to building tenants. Millions have been invested in the technology, described as a "one-stop-solution."

The first installation of CrossLayer has been made at the company's Naples headquarters. It's serving as a showcase for what it can do.

FTE continues to see growth in its original Jus-Com network services business, which specializes in the design, engineering, installation, and maintenance of all forms of telecommunications infrastructure.

"2017 was truly a transformational year for FTE Networks and a year that positioned the company for what we expect to be a dynamic future for growth and value creation," Palleschi said in the conference call.

In 2018 the company is focused on driving revenue growth through operating efficiencies and enhanced margins and profitability. 

The company's outlook for this year includes growing net revenue to $350 million. It expects adjusted earnings of $30 million. 

Shares closed at $17.99, down $1.64, or 8.5 percent, on Wednesday.