AMSTERDAM, May 17, 2011 (BUSINESS WIRE) —
Interxion Holding NV (INXN:NYSE), a leading European provider of carrier-neutral colocation data centre services, announced its results today for the three months ended 31 March 2011.
Highlights
- Revenue increased by 21% to EUR 57.9 million (Q1 2010: EUR 47.8 million)
- Adjusted EBITDA increased by 27% to EUR 22.2 million (Q1 2010: EUR 17.4 million)
- Adjusted EBITDA margin increased to 38.4% (Q1 2010: 36.5%)
- Net profit of EUR 2.8 million (Q1 2010: EUR 4.7 million loss)
- Capital Expenditures of EUR 19.1 million during the quarter
- 2011 annual guidance reaffirmed
“The first quarter of 2011 was Interxion’s 18th consecutive quarter of sequential quarterly growth in revenue and Adjusted EBITDA,” said Chief Executive Officer David Ruberg. “These results are in line with our plans and attributable to the execution of our market segmentation strategy and providing our targeted communities of interest with the excellent products and quality of service that they require.”
Quarterly Highlights
Revenue for the first quarter was EUR 57.9 million, a 21% increase over the first quarter of 2010 and a 4.2% increase from the fourth quarter 2010. Recurring revenue was 94% of total revenue.
Cost of sales for the first quarter increased by 14% to EUR 24.8 million, leading to an increased gross profit margin of 57.2%. Sales and marketing costs in the first quarter were EUR 4.2 million, up 27% as a result of our continued investment in the company’s market segmentation strategy. General and administrative costs, excluding depreciation, amortisation, exceptional general and administrative costs, and share-based payments of EUR 6.7 million, increased by 27% and were adversely impacted by the onset of public company costs. Depreciation and amortisation increased by 19% to EUR 8.5 million.
Net financing costs were EUR 6.6 million, down from EUR 13.5 million in the first quarter 2010. First quarter 2010 costs included a non-recurring charge of EUR 10.2 million related to the debt refinancing in February 2010.
Adjusted EBITDA was EUR 22.2 million, up 27% year over year. Adjusted EBITDA margin expanded to 38.4% as the company’s increased scale provided greater operating leverage.
Net profit was EUR 2.8 million in the first quarter 2011.
Cash generated from operations, defined as cash generated from operating activities before interest and tax payments and receipts, was EUR 20.7 million. Net cash used in investing activities was EUR 19.5 million, including EUR 19.1 million of capital expenditures. Cash generated from financing activities was EUR 141.4 million, reflecting the proceeds from the IPO.
Cash and equivalents were EUR 229.3 million, up from EUR 99.1 million at year end.
Equipped space at the end of the period was 61,000 square metres. Utilisation rate, the ratio of revenue-generating space to equipped space, was 73%, up from 72% in the first quarter 2010.
Business Outlook
The company’s outlook for 2011 is reaffirmed:
| Revenue | EUR 239 million – EUR 245 million | ||
| Adjusted EBITDA | EUR 91 million – EUR 95 million | ||
| Capital Expenditures | EUR 140 million – EUR 160 million |
Conference Call to Discuss Results
The Company will host a conference call at 8:30 a.m. EDT (1:30 p.m. BST) on 17 May to discuss the results.
To participate on this call, U.S. callers may dial toll free 1-866-926-5708; callers outside the U.S. may dial direct +44 (0) 1452 560 304. The conference ID for this call is 66158917. This event also will be webcast live over the Internet in listen-only mode at investors.interxion.com.
A replay of this call will be available shortly after the call concludes and will be available through 23 May. To access the replay, U.S. callers may dial toll free 1-866-247-4222; callers outside the U.S. may dial direct +44 (0) 1452 55 00 00. The replay access number is 66158917#.
-ends-
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the difficulty of reducing operating expenses in the short term, inability to utilise the capacity of newly planned data centres and data centre expansions, significant competition, the cost and supply of electrical power, data centre industry over-capacity, performance under service level agreements and other risks described from time to time in Interxion’s filings with the Securities and Exchange Commission. Interxion does not assume any obligation to update the forward-looking information contained in this press release.
Adjusted EBITDA
EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments and exceptional and non-recurring items, and to include share of profits (losses) of non-group companies. We present EBITDA and Adjusted EBITDA as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in our EUR 50 million revolving credit facility and EUR 260 million 9.50% Senior Secured Notes due 2017. However, other companies may present EBITDA and Adjusted EBITDA differently than we do. EBITDA and Adjusted EBITDA are not measures of financial performance under IFRS and should not be considered as an alternative to operating profit or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measure of performance derived in accordance with IFRS.
A reconciliation of Adjusted EBITDA to operating profit is provided in the Notes to the Consolidated Income Statement: Group Metrics.
About Interxion
Interxion (NYSE:INXN, news) is a leading provider of carrier-neutral colocation data centre services in Europe, serving over 1,200 customers through 28 data centres in 11 European countries. Interxion’s uniformly designed, energy-efficient data centres offer customers extensive security and uptime for their mission-critical applications. With connectivity provided by 350 carriers and ISPs and 20 European Internet exchanges across its footprint, Interxion has created content and connectivity hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.
INTERXION HOLDING NV
CONSOLIDATED INCOME STATEMENTS
‘(in EUR ‘000 – except per share data and where stated otherwise)
(unaudited)
| Three Months Ended | ||||||||||
| 31-Mar | 31-Mar | |||||||||
| 2011 | 2010 | |||||||||
| Revenue | 57,892 | 47,815 | ||||||||
| Cost of sales | (24,780 | ) | (21,773 | ) | ||||||
| Gross profit | 33,112 | 26,042 | ||||||||
| Other income | 127 | 108 | ||||||||
| Sales and marketing costs | (4,212 | ) | (3,325 | ) | ||||||
| General and administrative costs | (17,299 | ) | (12,833 | ) | ||||||
| Operating profit | 11,728 | 9,992 | ||||||||
| Finance income | 513 | 79 | ||||||||
| Finance expense | (7,101 | ) | (13,558 | ) | ||||||
| Profit before taxation | 5,140 | (3,487 | ) | |||||||
| Income tax (expense) / benefit | (2,332 | ) | (1,247 | ) | ||||||
| Net profit | 2,808 | (4,734 | ) | |||||||
| Basic earnings per share: (EUR ) (i) | 0.05 | (0.11 | ) | |||||||
| Diluted earnings per share: (EUR ) (i) | 0.05 | (0.10 | ) | |||||||
| Number of shares outstanding at the end of the period (shares in thousands) | 65,577 | 44,351 | ||||||||
| Weighted average number of shares for Basic EPS (shares in thousands) | 59,146 | 44,351 | ||||||||
| Weighted average number of shares for Diluted EPS (shares in thousands) | 61,477 | 47,567 | ||||||||
(i) Number of shares have been adjusted to take account of the 1 for 5 reverse stock split which took place on 2 February 2011.
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION
‘(in EUR ‘000 – except where stated otherwise)
(unaudited)
| Three Months Ended | ||||||||||||||||
| 31-Mar | 31-Mar | |||||||||||||||
| 2011 | 2010 | |||||||||||||||
| Consolidated | ||||||||||||||||
| Recurring revenue | 54,142 | 44,729 | ||||||||||||||
| Non-recurring Revenue | 3,750 | 3,086 | ||||||||||||||
| Revenue | 57,892 | 47,815 | ||||||||||||||
| Adjusted EBITDA | 22,210 | 17,444 | ||||||||||||||
| Gross Margin | 57.2 | % | 54.5 | % | ||||||||||||
| Adjusted EBITDA Margin | 38.4 | % | 36.5 | % | ||||||||||||
| Total assets | 692,175 | 452,260 | ||||||||||||||
| Total liabilities | 392,682 | 321,705 | ||||||||||||||
| Capital expenditures (iv) | (19,124 | ) | (28,650 | ) | ||||||||||||
| Depreciation and amortization | (8,526 | ) | (7,187 | ) | ||||||||||||
| France, Germany, Netherlands, and UK | ||||||||||||||||
| Recurring revenue | 32,245 | 26,482 | ||||||||||||||
| Non-recurring Revenue | 2,427 | 2,038 | ||||||||||||||
| Revenue | 34,672 | 28,520 | ||||||||||||||
| Adjusted EBITDA | 16,779 | 12,687 | ||||||||||||||
| Gross Margin | 58.5 | % | 54.4 | % | ||||||||||||
| Adjusted EBITDA Margin | 48.4 | % | 44.5 | % | ||||||||||||
| Total assets | 298,005 | 241,947 | ||||||||||||||
| Total liabilities | 88,922 | 108,078 | ||||||||||||||
| Capital expenditures (iv) | (12,340 | ) | (15,639 | ) | ||||||||||||
| Depreciation and amortization | (5,146 | ) | (4,511 | ) | ||||||||||||
| Rest of Europe | ||||||||||||||||
| Recurring revenue | 21,897 | 18,247 | ||||||||||||||
| Non-recurring Revenue | 1,323 | 1,048 | ||||||||||||||
| Revenue | 23,220 | 19,295 | ||||||||||||||
| Adjusted EBITDA | 12,102 | 9,768 | ||||||||||||||
| Gross Margin | 61.1 | % | 60.2 | % | ||||||||||||
| Adjusted EBITDA Margin | 52.1 | % | 50.6 | % | ||||||||||||
| Total assets | 152,566 | 136,455 | ||||||||||||||
| Total liabilities | 35,768 | 50,749 | ||||||||||||||
| Capital expenditures (iv) | (6,264 | ) | (12,213 | ) | ||||||||||||
| Depreciation and amortization | (2,998 | ) | (2,368 | ) | ||||||||||||
| Corporate and Other | ||||||||||||||||
| Adjusted EBITDA | (6,671 | ) | (5,011 | ) | ||||||||||||
| Total assets | 241,604 | 73,858 | ||||||||||||||
| Total liabilities | 267,992 | 162,878 | ||||||||||||||
| Capital expenditures (iv) | (520 | ) | (798 | ) | ||||||||||||
| Depreciation and amortization | (382 | ) | (308 | ) | ||||||||||||
(iv) Capital expenditures represent payments to acquire tangible fixed assets as recorded in the consolidated statement of cash flows as
‘ “Purchase of property, plant and equipment”.
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: GROUP METRICS
‘(in EUR ‘000 – except where stated otherwise)
(unaudited)
| Three Months Ended | |||||||||||||||||
| 31-Mar | 31-Mar | ||||||||||||||||
| 2011 | 2010 | ||||||||||||||||
| 1. Reconciliation of adjusted EBITDA | |||||||||||||||||
| Adjusted EBITDA | 22,210 | 17,444 | |||||||||||||||
| Income from subleases on unused data centre sites | 127 | 108 | |||||||||||||||
| Exceptional income | 127 | 108 | |||||||||||||||
| (Increase)/decrease in provision for onerous lease contracts | (18 | ) | (108 | ) | |||||||||||||
| IPO transaction costs (v) | (1,725 | ) | – | ||||||||||||||
| Share based payments | (340 | ) | (265 | ) | |||||||||||||
| Exceptional general and adminsitrative costs | (2,083 | ) | (373 | ) | |||||||||||||
| EBITDA | 20,254 | 17,179 | |||||||||||||||
| Depreciation and amortization | (8,526 | ) | (7,187 | ) | |||||||||||||
| Operating profit | 11,728 | 9,992 | |||||||||||||||
| 2. Capacity Metrics | |||||||||||||||||
| Equiped space (in sqm) | 61,000 | 55,800 | |||||||||||||||
| Revenue generating space (in sqm) | 44,600 | 40,100 | |||||||||||||||
| Utilization rate | 73 | % | 72 | % | |||||||||||||
(v) The IPO transaction costs represent the write off of the proportion of the IPO costs allocated to the selling shareholders at the Initial Public Offering.
INTERXION HOLDING NV
CONSOLIDATED BALANCE SHEET
‘(in EUR ‘000 – except where stated otherwise)
(unaudited)
| As at | |||||||||||||||||
| 31-Mar | 31-Dec | ||||||||||||||||
| 2011 | 2010 | ||||||||||||||||
| Non-current assets | |||||||||||||||||
| Property, plant and equipment | 352,541 | 342,420 | |||||||||||||||
| Intangible assets | 6,202 | 6,005 | |||||||||||||||
| Deferred tax assets | 41,738 | 39,841 | |||||||||||||||
| Other non-current assets | 3,538 | 3,709 | |||||||||||||||
| 404,019 | 391,975 | ||||||||||||||||
| Current assets | |||||||||||||||||
| Trade and other current assets | 58,897 | 55,672 | |||||||||||||||
| Cash and cash equivalents | 229,259 | 99,115 | |||||||||||||||
| 288,156 | 154,787 | ||||||||||||||||
| Total assets | 692,175 | 546,762 | |||||||||||||||
| Shareholders’ equity | |||||||||||||||||
| Share capital | 6,558 | 4,434 | |||||||||||||||
| Share premium | 462,675 | 321,078 | |||||||||||||||
| Foreign currency translation reserve | 2,628 | 4,933 | |||||||||||||||
| Accumulated deficit | (172,368 | ) | (175,176 | ) | |||||||||||||
| 299,493 | 155,269 | ||||||||||||||||
| Non-current liabilities | |||||||||||||||||
| Trade and other liabilities | 8,956 | 7,795 | |||||||||||||||
| Deferred tax liability | 1,302 | 660 | |||||||||||||||
| Provision for onerous lease contracts | 12,609 | 13,260 | |||||||||||||||
| Borrowings | 257,534 | 257,403 | |||||||||||||||
| 280,401 | 279,118 | ||||||||||||||||
| Current liabilities | |||||||||||||||||
| Trade and other liabilities | 106,847 | 106,038 | |||||||||||||||
| Current tax liabilities | 661 | 868 | |||||||||||||||
| Provision for onerous lease contracts | 3,087 | 3,073 | |||||||||||||||
| Borrowings | 1,686 | 2,396 | |||||||||||||||
| 112,281 | 112,375 | ||||||||||||||||
| Total liabilities | 392,682 | 391,493 | |||||||||||||||
| Total liabilities and shareholders’ equity | 692,175 | 546,762 | |||||||||||||||
INTERXION HOLDING NV
NOTES TO THE CONSOLIDATED BALANCE SHEET: BORROWINGS
‘(in EUR ‘000 – except where stated otherwise)
(unaudited)
| As at | |||||||||||||||||
| 31-Mar | 31-Dec | ||||||||||||||||
| 2011 | 2010 | ||||||||||||||||
| 3. Borrowings net of cash and cash equivalents | |||||||||||||||||
| Cash and cash equivalents (vi) | 229,259 | 99,115 | |||||||||||||||
| 9.5% Senior Secured Notes due 2017 (vii) | 255,083 | 254,924 | |||||||||||||||
| Financial Leases | 652 | 765 | |||||||||||||||
| Other Borrowings | 3,485 | 4,110 | |||||||||||||||
| Borrowings excluding revolving credit facility deferred financing costs | 259,220 | 259,799 | |||||||||||||||
| Revolving credit facility deferred financing costs (viii) | (1,129 | ) | (1,283 | ) | |||||||||||||
| Total Borrowings | 258,091 | 258,516 | |||||||||||||||
| Borrowings net of cash and cash equivalents | 28,832 | 159,401 | |||||||||||||||
(vi) Cash and cash equivalents includes EUR 4.2 million as of March 31, 2011 and December 31, 2010, which is restricted and held as collateral
‘ to support the issuance of bank guarantees on behalf of a number of subsidiary companies.
(vii) EUR 260 million 9.5% Senior Secured Notes due 2017 include premium on additional issue and are shown after deducting underwriting
‘ discounts and commissions, offering fees and expenses.
(viii) We reported deferred financing costs of EUR 1.1 million in connection with entering into our EUR 50 million revolving credit facility which is
‘ currently undrawn.
INTERXION HOLDING NV
CONSOLIDATED STATEMENT OF CASH FLOWS
‘(in EUR ‘000 – except where stated otherwise)
(unaudited)
| Three Months Ended | |||||||||||||||||
| 31-Mar | 31-Mar | ||||||||||||||||
| 2011 | 2010 | ||||||||||||||||
| Profit for the period | 2,808 | (4,734 | ) | ||||||||||||||
| Depreciation and amortization | 8,526 | 7,187 | |||||||||||||||
| IPO transaction costs (ix) | 1,725 | – | |||||||||||||||
| Provision for onerous lease contracts | (774 | ) | (583 | ) | |||||||||||||
| Share-based payments | 340 | 265 | |||||||||||||||
| Net finance expense | 6,588 | 13,479 | |||||||||||||||
| Income tax expense | 2,332 | 1,247 | |||||||||||||||
| 21,545 | 16,861 | ||||||||||||||||
| Movements in trade and other current assets | (7,283 | ) | 4,935 | ||||||||||||||
| Movements in trade and other liabilities | 6,415 | 2,331 | |||||||||||||||
| Cash generated from operations | 20,677 | 24,127 | |||||||||||||||
| Interest paid | (12,159 | ) | (721 | ) | |||||||||||||
| Interest received | 271 | 85 | |||||||||||||||
| Income tax paid | (687 | ) | (76 | ) | |||||||||||||
| Net cash flows from operating activities | 8,102 | 23,415 | |||||||||||||||
| Cash flow from investing activities | |||||||||||||||||
| Purchase of property, plant and equipment | (19,124 | ) | (28,650 | ) | |||||||||||||
| Purchase of intangible assets | (394 | ) | (357 | ) | |||||||||||||
| Net cash flows from investing activities | (19,518 | ) | (29,007 | ) | |||||||||||||
| Cash flow from financing activities | |||||||||||||||||
| Proceeds from exercised options | 2,324 | – | |||||||||||||||
| Proceeds from issuance new shares | 143,352 | – | |||||||||||||||
| Repayment of ‘Liquidation Price’ to former preferred shareholders | (3,055 | ) | – | ||||||||||||||
| Proceeds/(repayment) bank facilities | – | (159,046 | ) | ||||||||||||||
| Proceeds from Senior Secured Notes and RCF | (439 | ) | 192,015 | ||||||||||||||
| Other Borrowings | (739 | ) | (1,046 | ) | |||||||||||||
| Net cash flows from financing activities | 141,443 | 31,923 | |||||||||||||||
| Effect of exchange rate changes on cash | 117 | 145 | |||||||||||||||
| Net movement in cash and cash equivalents | 130,144 | 26,476 | |||||||||||||||
| Cash and cash equivalents, beginning of period | 99,115 | 32,003 | |||||||||||||||
| Cash and cash equivalents, end of period | 229,259 | 58,479 | |||||||||||||||
(ix) The IPO transaction costs represent the write off of the proportion of the IPO costs allocated to the selling shareholders at the Initial Public Offering.
SOURCE: Interxion Holding
Investors: Jim Huseby Investor Relations +1-813-644-9399 or Financial Dynamics James Melville-Ross / Edward Bridges / Haya Herbert-Burns SB: +44 (0)20 7831 3113 Email: Interxion@fd.com
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