FTE Networks, Inc.

NYSE American: FTNW

Investor Relations

Financials

v3.8.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Current Assets:    
Cash $ 3,154 $ 1,412
Accounts receivable, net 51,791 7,020
Costs and estimated earnings in excess of billings on uncompleted contracts 6,773
Other current assets 7,727 2,833
Total current assets 69,445 11,265
Property and equipment, net 7,101 3,467
Intangible assets, net 26,306
Goodwill 46,922
Total Assets 149,774 14,732
Current Liabilities:    
Accounts payable 33,531 2,357
Billings in excess of costs and estimated earnings on uncompleted contracts 7,378
Due to related parties 343 100
Accrued expenses and other current liabilities 9,931 3,204
Notes payable, current portion, net of original issue discount and deferred costs 14,022 3,444
Notes payable, related party 791 791
Warrant derivative liability 303 594
Total Current Liabilities 66,299 10,490
Notes payable, non-current portion 46,899 6,530
Senior note payable, non-current portion, net of deferred financing costs 20,022 7,576
Total Liabilities 133,220 24,596
Commitments and contingencies
Temporary Equity:    
Total Temporary Equity 437
Stockholders' Equity (Deficiency):    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:
Common stock value [1] 5 3
Additional paid-in capital 45,625 11,575
Shares to be issued 75
Subscriptions receivable (3,588) (2,829)
Accumulated (deficit) earnings equity (25,563) (19,050)
Total Stockholders' Equity (Deficiency) 16,554 (10,301)
Total Liabilities, Temporary Equity and Stockholders' Equity (Deficiency) 149,774 14,732
Series A Convertible Preferred Stock [Member]    
Stockholders' Equity (Deficiency):    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:
Series A-1 Preferred Shares [Member]    
Stockholders' Equity (Deficiency):    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:
Temporary Equity [Member] | Common Stock [Member]    
Temporary Equity:    
Common stock; $0.001 par value, subject to put provision, 8,000,000 shares authorized and 444,475 shares issued and outstanding at September 30, 2017 and December 31, 2016 437
Predecessor [Member]    
Current Assets:    
Cash   4,753
Accounts receivable, net   51,701
Costs and estimated earnings in excess of billings on uncompleted contracts   9,759
Other current assets   3,174
Total current assets   69,387
Property and equipment, net   23
Intangible assets, net  
Goodwill  
Total Assets   69,410
Current Liabilities:    
Accounts payable   50,714
Billings in excess of costs and estimated earnings on uncompleted contracts   5,043
Due to related parties  
Accrued expenses and other current liabilities   5,700
Notes payable, current portion, net of original issue discount and deferred costs  
Notes payable, related party  
Warrant derivative liability  
Total Current Liabilities   61,457
Notes payable, non-current portion  
Senior note payable, non-current portion, net of deferred financing costs  
Total Liabilities   61,457
Commitments and contingencies  
Temporary Equity:    
Total Temporary Equity  
Stockholders' Equity (Deficiency):    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:  
Common stock value [1]   10
Additional paid-in capital  
Shares to be issued  
Subscriptions receivable  
Accumulated (deficit) earnings equity   7,943
Total Stockholders' Equity (Deficiency)   7,953
Total Liabilities, Temporary Equity and Stockholders' Equity (Deficiency)   69,410
Predecessor [Member] | Series A Convertible Preferred Stock [Member]    
Stockholders' Equity (Deficiency):    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:  
Predecessor [Member] | Series A-1 Preferred Shares [Member]    
Stockholders' Equity (Deficiency):    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:  
Predecessor [Member] | Temporary Equity [Member] | Common Stock [Member]    
Temporary Equity:    
Common stock; $0.001 par value, subject to put provision, 8,000,000 shares authorized and 444,475 shares issued and outstanding at September 30, 2017 and December 31, 2016  
[1] Common stock data for periods ended September 30, 2017 and December 31, 2016 have been adjusted retroactively to reflect 25-for-1 reverse stock split effective November 6, 2017.

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Mar. 31, 2017
[1]
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues, net of discounts $ 79,083   $ 3,828 $ 134,866 $ 9,084
Cost of revenues 63,553   2,403 108,608 5,649
Gross Profit 15,530   1,425 26,258 3,435
Operating Expenses          
Compensation expense 5,312   605 10,668 1,706
Selling, general and administrative expenses 4,064   548 8,662 1,920
Amortization of intangible assets 768   1,358
Travel expense 128   43 419 210
Occupancy costs 222   201 615 559
Loss on Sale of Asset   376
Transaction expenses 246   1,666
Total Operating Expenses 10,740   1,397 23,764 4,395
Operating Income (Loss) 4,790   28 2,494 (960)
Other (Expense) Income          
Interest income expense (1,824)   (490) (4,351) (1,452)
Amortization of deferred financing costs and debt discount (1,332)   (109) (3,663) (328)
Change in warrant fair market valuation 2,033   854
Other Income (Expense) (7)   (147) (52) (101)
Incentive expenses   (35)
Extinguishment loss   (314) (314)
Financing Costs (139)   (702)
Total Other (Expense) Income 1,269   (1,060) (7,914) (2,230)
Income (Loss) before provision for local income taxes 3,521   (1,032) (5,420) (3,190)
Provision for local income taxes 972   1,093
Net Income (Loss) 2,549   (1,032) (6,513) (3,190)
Preferred stock dividends (20)   (20) (60) (60)
Net Income (Loss) attributable to common shareholders $ 2,529   $ (1,052) $ (6,573) $ (3,250)
Income (Loss) per common share:          
Basic $ 0.47   $ (0.43) $ (1.40) $ (1.34)
Diluted $ 0.46   $ (0.43) $ (1.40) $ (1.34)
Weighted average number of common shares outstanding          
Basic 5,367,208   2,418,024 4,699,369 2,418,024
Diluted 5,547,743   2,418,024 4,699,369 2,418,024
Predecessor [Member]          
Revenues, net of discounts   $ 42,089 $ 77,644   $ 307,984
Cost of revenues   33,789 67,201   261,042
Gross Profit   8,300 10,443   46,942
Operating Expenses          
Compensation expense   5,671 4,478   13,645
Selling, general and administrative expenses   2,009 4,452   17,199
Amortization of intangible assets   98   261
Travel expense   22 98   261
Occupancy costs   160 121   323
Loss on Sale of Asset    
Transaction expenses    
Total Operating Expenses   7,862 9,149   31,428
Operating Income (Loss)   438 1,294   15,514
Other (Expense) Income          
Interest income expense    
Amortization of deferred financing costs and debt discount    
Change in warrant fair market valuation    
Other Income (Expense)   56 30   74
Incentive expenses    
Extinguishment loss    
Financing Costs    
Total Other (Expense) Income   56 30   74
Income (Loss) before provision for local income taxes   494 1,324   15,588
Provision for local income taxes   240 265   1,065
Net Income (Loss)   254 1,059   14,523
Preferred stock dividends    
Net Income (Loss) attributable to common shareholders   $ 254 $ 1,059   $ 14,523
[1] Activity for the period April 1, 2017 through April 20, 2017 was not material.

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (6,513) $ (3,190)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Amortization of deferred financing costs 3,663 328
Change in value of loan term 314
Warrant expense in connection with financing 563
Depreciation 444 375
Amortization of original issue discount 182 164
Amortization of intangible assets 1,358
Payment in kind interest - Senior debt 613 247
Stock incentive expense to investor 35
Stock based compensation 1,670 172
Provision for bad debts 300
Change in fair value of warrant derivative liability (854)
Loss from sale of asset 376
Changes in operating assets and liabilities:    
Accounts receivable (30,446) (5,579)
Other current assets (1,394) (601)
Due to Related party 243
Accounts payable and accrued liabilities 13,493 901
Billings in excess of costs and estimated earnings on uncompleted contracts 7,378
Net cash used in provided by operating activities (4,958) (6,834)
Cash flows from investing activities:    
Net cash paid for Benchmark Builders, Inc. acquisition (14,834) (309)
Purchase of property and equipment (4,031)
Restricted cash account 3,003
Net cash (used in) provided by investing activities (18,865) 2,964
Cash flows from financing activities:    
Proceeds from issuance of notes payable, net 7,070 2,500
Payments on notes payable (1,506) (691)
Proceeds from issuance of senior notes payable, net 11,610
Series C notes consideration for Benchmark acquisition 7,500
Proceeds from issuance of notes payable -related parties 195
Payments on notes payable - related parties (44)
Payment of deferred financing costs (494)
Collection of subscription receivable 775
Proceeds for shares to be issued 865
Net proceeds from sale of common stock 26 1,703
Net cash provided by financing activities 25,565 3,944
Net change in cash 1,742 (196)
Cash, beginning of period 1,412 205
Cash, end of period 3,154 9
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest 4,352 256
Cash paid for income taxes 404
Non-cash investing and financing activities:    
Issuance of notes payable for the purchase of fixed assets 794
Common stock shares issued to settled legal matter 125
Common Shares Reclassified from Temporary Equity 437
Common stock shares issued for notes payable and other debt 444 898
Common shares issued to senior lender 5,650
Common Shares Issued to Board members 62
Issuance of notes to settle accrued litigation 146
Issuance of notes to settle accounts payables 720
Preferred shares issued -Investors incentive
Accrued dividends, preferred stock 60 60
Common shares issued to employees under employment agreement for future services 3,841
Common shares issued to consultants for services to be rendered 1,568
Common shares issued to investor relation firm for services to be rendered 125
Common shares issued as subscription receivable 1,358
Conversion of preferred shares to common shares 58
Series A, B notes consideration for Benchmark acquisition 42,500
Common shares issued as consideration for Benchmark acquisition $ 216,589

Source

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