SeeThruEquity Issues Update on FTE Networks, Inc. (FTNW, FTNWD)

NEW YORK, NY / ACCESSWIRE / November 27, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on FTE Networks, Inc. (FTE Networks, Inc.) (OTCQX: FTNW and OTCQX: FTNWD) ("FTE" or the "Company") with an updated price target of $45.00.

The report is available here: FTNW Update Note.

Based in Naples, FL, FTE Networks Inc. (FTE Networks, Inc.) (OTCQX: FTNW and OTCQX: FTNWD) ("FTE" or the "Company") is a leading provider of innovative technology-oriented solutions for smart platforms, network infrastructure, and buildings. FTE Networks has three operating subsidiaries, including: FTE Network 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 reported 3Q17 results on November 16, 2017, with highlights including:

• Revenues surged in the first quarter that fully included Benchmark results, reaching a record $79.1mn. On a pro forma basis, as if Benchmark had been acquired January 1, 2017, FTE appears to be on pace for $260mn in revenues in 2017.

• FTE reported adjusted EBITDA of $11.6mn in 3Q17, and with positive GAAP net income of $2.5mn, or $0.46 per diluted share.

• Strong demand is expected to continue, as FTE reported a consolidated backlog of $419.3mn as of September 30, 2017

Investment Highlights

FTE Solidly in the Black in First Full Quarter with Benchmark

FTE reported strong 3Q17 results characterized by record revenues of $79.1mn and positive GAAP net income of $0.46 per share. Importantly, the company reported adjusted EBITDA of $11.6mn, or 14.7% of revenues, during the quarter. Backlog increased by 20% sequentially to $419.3mn, largely driven by new project wins for infrastructure and technology expansion. FTE also continues to invest in its new CrossLayer™ managed services edge computing platform, which offers an avenue to provide an innovative high margin, recurring revenue service to commercial real estate developers and their customers. CrossLayer™ is a cloud-based network management solution offered to customers after the completion of construction and infrastructure deployments. We expect CrossLayer™ to be an increasing area of focus for FTE in coming quarters given its strategic importance to augment the company's suite of infrastructure and technology solutions.

FTE Completes Reverse Split, Readies for National Listing

FTE continues to advance towards a listing on a national exchange. As part of this process, the company completed a 1:25 reverse stock split on November 6, 2017. The most recently disclosed share count was 5.6mn as November 14, 2017. With the completion of the reverse split, and positive results, the company appears to have met shareholders equity and minimum price requirements for an uplisting of shares.

Updating Target to $45.00 Following Results, Reverse Split

We are updating our price target to reflect recent results, as well as the company's updated share count following the reverse split. The new target of $45.00 implies an Enterprise Value of $330.6mn, considering total debt of $81.7mn and cash of $3.2mn. The target implies a multiple of 7.1x EV / EBITDA using annualized 3Q17 adjusted EBITDA of $11.6mn, and 6.6x our estimate for FY18E EBITDA of $50.2mn, as well as 0.8x FTE's backlog of $419.3mn.

Please review important disclosures on our website at www.seethruequity.com.

About FTE Networks, Inc.

FTE Networks, Inc. ("FTNW," "FTNWD"), is a leading provider of innovative technology-oriented solutions for smart platforms, network infrastructure and buildings. FTE's three complementary businesses are FTE Network Services, CrossLayer, Inc. and Benchmark Builders, Inc. Together they provide 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. FTE's 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 world's leading communications services providers. FTE Networks and its subsidiaries support multiple services, including Data Center Infrastructure, Fiber Optics, Wireless Integration, Network Engineering, Internet Service Provider, General Contracting Management and General Contracting (www.ftenet.com).

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap 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

SOURCE: SeeThruEquity