FTE Networks, Inc.

NYSE American: FTNW

Investor Relations

Financials

v3.10.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Current Assets:    
Cash and cash equivalents $ 12,884 $ 15,642
Accounts receivable, net 72,693 62,199
Costs and estimated earnings in excess of billings on uncompleted contracts 2,206 11,226
Other current assets 8,814 7,256
Total Current Assets 96,597 96,323
Property and equipment, net 9,165 7,955
Intangible assets, net 23,190 27,696
Goodwill 35,672 35,672
Total Assets 164,624 167,647
Current Liabilities:    
Accounts payable 40,175 35,135
Contract liabilities 21,754 30,304
Due to related parties 89
Accrued expenses and other current liabilities 7,141 9,973
Senior note payable, current portion net of original issue discount and deferred financing costs 28,661
Notes payable, current portion, net of original issue discount and deferred costs 14,343 10,488
Notes payable, related party, current 19,173 8,526
Total Current Liabilities 131,336 94,426
Senior note payable, non-current portion, net of original issue discount and deferred financing costs 24,143
Notes payable, non-current portion 1,617 1,955
Notes payable, related parties, non-current, net of debt discount 27,775 38,530
Deferred tax liability 1,007 560
Total Liabilities 161,735 159,614
Commitments and contingencies
Stockholders' Equity:    
Common stock; $0.001 par value, 100,000,000 shares authorized, 7,401,658 and 5,789,281 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively 7 6
Additional paid-in capital 67,677 49,381
Shares to be issued 625
Subscriptions receivable (2,769) (3,675)
Accumulated deficit (62,026) (38,304)
Total Stockholders' Equity 2,889 8,033
Total Liabilities and Stockholders' Equity 164,624 167,647
Series A Convertible Preferred Stock [Member]    
Stockholders' Equity:    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:
Series A-1 Convertible Preferred Shares [Member]    
Stockholders' Equity:    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:

Source

v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues, net of discounts $ 86,367 $ 50,697   $ 171,511 $ 55,783
Cost of revenues 72,415 42,377   146,069 45,055
Gross profit 13,952 8,320   25,442 10,728
Operating Expenses          
Compensation expense 6,856 4,169   12,494 5,356
Selling, general and administrative expenses 5,122 3,529   9,321 4,503
Amortization of intangible assets 938 589   1,876 589
Travel expense 567 191   836 291
Occupancy costs 166 280   337 394
Transaction expenses 33 1,409   125 1,419
Loss on sale of asset (47) 429   (13) 472
Total operating expenses 13,635 10,596   24,976 13,024
Operating income (loss) 317 (2,276)   466 (2,296)
Other (Expense) Income          
Interest (expense) income (2,889) (1,793)   (3,802) (2,527)
Amortization of deferred financing costs and debt discount (3,458) (1,934)   (9,370) (2,331)
Change in warrant fair market valuation 1,021   (1,179)
Other (expense) income (1,421) 10   (1,744) (46)
Financing costs (6,214)   (8,812) (563)
Total other (expense) income (13,982) (2,696)   (23,728) (6,646)
(Loss) income before (benefit) provision for income taxes (13,665) (4,972)   (23,262) (8,942)
(Benefit) provision for income taxes (107) 121   460 121
Net (loss) income (13,558) (5,093)   (23,722) (9,063)
Preferred stock dividends (20) (20)   (40) (40)
Net (loss) income attributable to common shareholders $ (13,578) $ (5,113)   $ (23,762) $ (9,103)
Loss per share:          
Basic and Diluted $ (2.26) $ (1.02)   $ (4.53) $ (2.11)
Weighted average number of common shares outstanding          
Basic and Diluted 5,997,856 4,989,451   5,249,808 4,305,814
Predecessor [Member]          
Revenues, net of discounts [1]     $ 42,089    
Cost of revenues [1]     33,789    
Gross profit [1]     8,300    
Operating Expenses          
Compensation expense [1]     5,671    
Selling, general and administrative expenses [1]     2,009    
Amortization of intangible assets [1]        
Travel expense [1]     22    
Occupancy costs     160    
Transaction expenses        
Loss on sale of asset [1]        
Total operating expenses [1]     7,862    
Operating income (loss) [1]     438    
Other (Expense) Income          
Interest (expense) income [1]     5    
Amortization of deferred financing costs and debt discount [1]        
Change in warrant fair market valuation [1]        
Other (expense) income [1]     51    
Financing costs [1]        
Total other (expense) income [1]     56    
(Loss) income before (benefit) provision for income taxes [1]     494    
(Benefit) provision for income taxes [1]     240    
Net (loss) income [1]     254    
Preferred stock dividends [1]        
Net (loss) income attributable to common shareholders [1]     $ 254    
[1] Activity for the period April 1, 2017 through April 20, 2017 was not material.

Source

v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Mar. 31, 2017
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:      
Net (loss) income   $ (23,722) $ (9,063)
Adjustments to reconcile net (loss) income to net cash used in operating activities:      
Depreciation   863 289
Amortization of debt discount   18,371 3,166
Amortization of intangible assets   4,506 2,310
Payment in kind interest - senior debt   1,491 446
Payment in kind interest - note payable   111
Payment in kind interest - related party   874
Share-based compensation   1,216 1,970
Change in fair value of warrant derivative liability   1,179
(Gain) loss on sale of asset   (13) 472
Deferred tax income taxes   486
Provision for bad debts   300
Changes in operating assets and liabilities:      
Accounts receivable   (10,493) (13,961)
Cost and estimated earnings in excess of billings on uncompleted contracts   9,019
Other current assets   (369) (423)
Due to related party   552 54
Accounts payable and accrued liabilities   2,481 5,818
Contract liabilities   (8,550) 8,617
Net cash (used in) provided by operating activities   (3,177) 1,084
Cash flows from investing activities:      
Net cash paid for Benchmark Builders, Inc. acquisition   (14,834)
Purchase of property and equipment   (2,059) (2,391)
Net cash used in investing activities   (2,059) (17,225)
Cash flows from financing activities:      
Proceeds from issuance of notes payable, net   13,698 4,728
Payments on notes payable   (14,981) (1,305)
Proceeds from issuance of notes payable – senior notes   935 11,000
Payments on notes payable - related parties   (2,650) 7,500
Payment of deferred financing costs   (257)
Distributions to stockholders  
Net proceeds for shares to be issued   615
Net proceeds from sale of common stock   5,733 26
Net cash provided by financing activities   2,478 22,564
Net change in cash   (2,758) 6,423
Cash and cash equivalents, beginning of period $ 1,412 15,642 1,412
Cash and cash equivalents, end of period   12,884 7,835
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Cash paid for interest   1,039 2,528
Cash paid for income taxes   10 173
Non-cash investing and financing activities:      
Common stock shares issued to settle legal matter   300 14
Common stock shares issued for notes payable and other debt   7,600 264
Common stock shares issued to senior lender   5,651
Common stock shares issued to board members   447
Accrued dividends, preferred stock   40 40
Common stock shares issued to employees under employment agreement for future services   3,795
Common stock shares issued to consultants for services to be rendered   734 1,219
Common stock shares issued to investor relation firm for services to be rendered   125
Series A, B notes considerations for Benchmark acquisition   42,500
Common stock issued as consideration for Benchmark acquisition   21,658
Common stock shares reclassified from Temporary Equity   437
Predecessor [Member]      
Cash flows from operating activities:      
Net (loss) income [1] 254    
Adjustments to reconcile net (loss) income to net cash used in operating activities:      
Depreciation [1] 5    
Amortization of debt discount [1]    
Payment in kind interest - senior debt [1]    
Payment in kind interest - note payable [1]    
Payment in kind interest - related party [1]    
Share-based compensation [1]    
Change in fair value of warrant derivative liability [1]    
(Gain) loss on sale of asset    
Deferred tax income taxes [1]    
Changes in operating assets and liabilities:      
Accounts receivable [1] 37,076    
Cost and estimated earnings in excess of billings on uncompleted contracts [1]    
Due to related party [1] (1,061)    
Accounts payable and accrued liabilities [1] (37,498)    
Contract liabilities [1] 5,514    
Net cash (used in) provided by operating activities [1] 4,290    
Cash flows from investing activities:      
Net cash paid for Benchmark Builders, Inc. acquisition [1]    
Purchase of property and equipment [1] (28)    
Net cash used in investing activities [1] (28)    
Cash flows from financing activities:      
Proceeds from issuance of notes payable, net [1]    
Payments on notes payable [1]    
Proceeds from issuance of notes payable – senior notes [1]    
Payments on notes payable - related parties    
Payment of deferred financing costs [1]    
Distributions to stockholders [1] (6,599)    
Net proceeds for shares to be issued [1]    
Net proceeds from sale of common stock [1]    
Net cash provided by financing activities [1] (6,599)    
Net change in cash [1] (2,337)    
Cash and cash equivalents, beginning of period [1] 4,753   $ 4,753
Cash and cash equivalents, end of period [1] 2,416    
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Cash paid for interest [1]    
Cash paid for income taxes [1] 68    
Non-cash investing and financing activities:      
Common stock shares issued to settle legal matter [1]    
Common stock shares issued for notes payable and other debt [1]    
Common stock shares issued to senior lender [1]    
Common stock shares issued to board members [1]    
Accrued dividends, preferred stock [1]    
Common stock shares issued to employees under employment agreement for future services [1]    
Common stock shares issued to consultants for services to be rendered [1]    
Common stock shares issued to investor relation firm for services to be rendered [1]    
Series A, B notes considerations for Benchmark acquisition [1]    
Common stock issued as consideration for Benchmark acquisition [1]    
Common stock shares reclassified from Temporary Equity [1]    
[1] Activity for the period April 1, 2017 through April 20, 2017 was not material.

Source

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