- Reported revenues of $417.6 million, a 6% increase over the previous quarter and a 26% increase over the same quarter last year
- Reported adjusted EBITDA of $191.6 million, a 6% increase over the previous quarter and a 31% increase over the same quarter last year
- Increased 2011 annual revenue guidance to greater than $1,600.0 million and increased 2011 adjusted EBITDA guidance to greater than $730.0 million
- Announced initial guidance for 2012 including annual revenues to be greater than $1,870.0 million, adjusted EBITDA to be greater than $850.0 million and total capital expenditures to be in the range of $700.0 to 800.0 million
REDWOOD CITY, CA — October 26, 2011 — Equinix, Inc. (NASDAQ:EQIX, news, filings), a provider of global data center services, today reported quarterly results for the quarter ended September 30, 2011. This quarter included the first full quarterly results from the acquisition of an indirect, controlling equity interest in ALOG Data Centers do Brasil S.A. from April 25, 2011, which is referred to as the ALOG acquisition.
Revenues were $417.6 million for the third quarter, a 6% increase over the previous quarter and a 26% increase over the same quarter last year. This result included $17.9 million in revenues from ALOG for the quarter. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $397.4 million for the third quarter, a 6% increase over the previous quarter and a 26% increase over the same quarter last year. Non-recurring revenues were $20.2 million in the quarter.
“Equinix achieved strong results in all three regions and we are on target to surpass our 2011 financial objectives,” said Steve Smith, president and CEO of Equinix. “We plan to make additional investments in Platform Equinix so that we may continue to deliver value to our customers around the globe. Our goal is to generate over $3 billion in annual revenues in 2015, while creating significant returns for our shareholders from these investments.”
Cost of revenues were $228.2 million for the third quarter, a 6% increase over the previous quarter and a 23% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $83.6 million, were $144.6 million for the third quarter, a 5% increase from the previous quarter and a 24% increase over the same quarter last year. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 65%, unchanged from the previous quarter and the same quarter last year.
Selling, general and administrative expenses were $109.0 million for the third quarter, a 6% increase over the previous quarter and a 21% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $27.6 million, were $81.4 million for the third quarter, a 7% increase over the previous quarter and a 21% increase over the same quarter last year.
Interest expense was $51.1 million for the third quarter, a 36% increase from the previous quarter and a 33% increase over the same quarter last year, primarily attributed to the $750.0 million 7.00% senior notes offering in July 2011. The Company recorded income tax expense of $5.3 million for the third quarter as compared to income tax expense of $8.1 million in the prior quarter and income tax expense of $4.6 million in the same quarter last year.
Net income attributable to Equinix for the third quarter was $20.3 million. This represents a basic net income per share attributable to Equinix of $0.21 and a diluted net income per share attributable to Equinix of $0.20 based on a weighted average share count of 47.2 million and 47.9 million, respectively, for the third quarter of 2011.
Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs for the third quarter, was $191.6 million, an increase of 6% over the previous quarter and a 31% increase over the same quarter last year.
Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the third quarter, were $131.5 million, of which $104.9 million was attributed to expansion capital expenditures and $26.6 million was attributed to ongoing capital expenditures.
The Company generated cash from operating activities of $141.9 million for the third quarter as compared to $140.3 million in the previous quarter and $113.3 million for the same quarter last year. Cash used in investing activities was $808.7 million in the third quarter as compared to cash used in investing activities of $209.7 million in the previous quarter and cash used in investing activities of $259.5 million for the same quarter last year. Cash provided by financing activities was $744.1 million for the third quarter, which was primarily related to the net proceeds from the $750.0 million 7.00% senior notes offering, the proceeds from employee equity awards and draw downs of certain loans payable.
As of September 30, 2011, the Company’s cash, cash equivalents and investments were $1.2 billion, as compared to $423.1 million as of June 30, 2011.
Company Metrics and Q3 Results Presentation
- A presentation to accompany Equinix’s Q3 Results conference call, as well as the Company’s Non-Financial Metrics tracking sheet, have been posted on the Investors section of Equinix’s web site atwww.equinix.com/investors
For the full year of 2011, total revenues are expected to be greater than $1,600.0 million. Total year cash gross margins are expected to range between 65% and 66%. Cash selling, general and administrative expenses are expected to approximate $320.0 million. Adjusted EBITDA for the year is expected to be greater than $730.0 million. Capital expenditures for 2011 are expected to be in the range of $645.0 to $665.0 million, comprised of approximately $115.0 million of ongoing capital expenditures and $530.0 to $550.0 million for expansion capital expenditures.
For the full year of 2012, total revenues are expected to be greater than $1,870.0 million. Adjusted EBITDA for the year is expected to be greater than $850.0 million. Capital expenditures for 2012 are expected to be in the range of $700.0 to $800.0 million, comprised of approximately $120.0 million of ongoing capital expenditures and $580.0 to $680.0 million for expansion capital expenditures.
The Company will discuss its results and guidance on its quarterly conference call on Wednesday, October 26, 2011, at 5:30 p.m. ET (2:30 p.m. PT). A presentation to accompany the call will be available on the Company’s website at www.equinix.com/investors. To hear the conference call live, please dial 210-234-8004 (domestic and international) and reference the passcode (EQIX). A simultaneous live Webcast of the call will also be available atwww.equinix.com/investors.
A replay of the call will be available beginning on Wednesday, October 26, 2011, at 7:30 p.m. (ET) through November 26, 2011, by dialing 203-369-1814 (domestic and international) and reference the passcode (2011). In addition, the webcast will be available on the company's web site at www.equinix.com/investors over the same time period. No password is required for the replay or the webcast.
Equinix, Inc. (NASDAQ: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 680 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth.http://www.equinix.com
Non-GAAP Financial Measures
Equinix provides all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain items that it believes are not good indicators of the Company's current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges and acquisition costs. Legislative and regulatory requirements encourage use of and emphasis on GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. Equinix excludes these items in order for Equinix's lenders, investors, and industry analysts who review and report on the Company, to better evaluate the Company's operating performance and cash spending levels relative to its industry sector and competitors.
Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of our IBX centers and do not reflect our current or future cash spending levels to support our business. Our IBX centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of our IBX centers do not recur and future capital expenditures remain minor relative to our initial investment. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX centers, and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.
In addition, in presenting the non-GAAP financial measures, Equinix excludes amortization expense related to certain intangible assets, as it represents a cost that may not recur and is not a good indicator of the Company's current or future operating performance. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix believes are not meaningful in evaluating the Company's current operations. Equinix excludes stock-based compensation expense as it primarily represents expense attributed to equity awards that have no current or future cash obligations. As such, we, and many investors and analysts, exclude this stock-based compensation expense when assessing the cash generating performance of our operations. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to the Company's decision to exit leases for excess space adjacent to several of our IBX centers, which we did not intend to build out, or our decision to reverse such restructuring charges or severance charges related to the Switch and Data acquisition. Equinix excludes acquisition costs from its non-GAAP financial measures. The acquisition costs relate to costs the Company incurs in connection with business combinations. Management believes such items as restructuring charges and acquisition costs are non-core transactions; however, these types of costs will or may occur in future periods.
Our management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. However, we have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our operating results in a manner that focuses on what management believes to be our core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.
Investors should note, however, that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. In addition, whenever Equinix uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.
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 challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION|
|(in thousands, except per share data)|
|Three Months Ended||Nine Months Ended|
|Cost of revenues||228,153||215,572||185,476||638,301||481,108|
|Sales and marketing||43,070||37,063||31,205||113,769||79,586|
|General and administrative||65,976||65,681||58,640||194,258||155,961|
|Total operating expenses||111,332||104,462||92,845||312,942||253,747|
|Income from operations||78,116||74,866||52,026||224,287||140,235|
|Interest and other income (expense):|
|Other-than-temporary impairment recovery on investments||-||-||206||-||3,626|
|Loss on debt extinguishment and interest rate swaps, net||-||-||-||-||(4,831||)|
|Other income (expense)||(1,694||)||1,021||1,654||1,438||193|
|Total interest and other, net||(52,129||)||(36,024||)||(36,193||)||(123,188||)||(101,358||)|
|Income before income taxes||25,987||38,842||15,833||101,099||38,877|
|Income tax expense||(5,348||)||(8,109||)||(4,637||)||(24,582||)||(15,756||)|
|Net income attributable to redeemable non-controlling interests||(320||)||(3||)||-||(323||)||-|
|Net income attributable to Equinix||$||20,319||$||30,730||$||11,196||$||76,194||$||23,121|
|Net income per share attributable to Equinix:|
|Basic net income per share (1)||$||0.21||$||0.65||$||0.24||$||1.40||$||0.54|
|Diluted net income per share (1)||$||0.20||$||0.64||$||0.24||$||1.37||$||0.53|
|Shares used in computing basic net income per share||47,202||46,924||45,745||46,861||42,961|
|Shares used in computing diluted net income per share||47,943||50,664||46,676||47,694||44,040|
The net income attributable to Equinix used in the computation of basic and diluted net income per share attributable to Equinix is presented below:
|Adjustments attributable to redeemable non-controlling interests:||(10,959||)||-||-||(10,962||)||-|
|Net income attributable to Equinix, basic||9,680||30,733||11,196||65,555||23,121|
|Interest on convertible debt||-||1,746||-||-||-|
|Net income attributable to Equinix, diluted||$||9,680||$||32,479||$||11,196||$||65,555||$||23,121|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION|
|Three Months Ended||Nine Months Ended|
|Cash cost of revenues (2)||144,560||137,558||116,602||404,749||305,578|
|Cash gross profit (3)||273,041||257,342||213,745||770,781||569,512|
|Cash operating expenses (4):|
|Cash sales and marketing expenses (5)||34,504||29,261||24,171||90,869||61,514|
|Cash general and administrative expenses (6)||46,909||46,753||43,113||139,680||112,110|
|Total cash operating expenses (7)||81,413||76,014||67,284||230,549||173,624|
|Adjusted EBITDA (8)||$||191,628||$||181,328||$||146,461||$||540,232||$||395,888|
|Cash gross margins (9)||65||%||65||%||65||%||66||%||65||%|
|Adjusted EBITDA margins (10)||46||%||46||%||44||%||46||%||45||%|
|Adjusted EBITDA flow-through rate (11)||45||%||44||%||42||%||55||%||41||%|
The geographic split of our revenues on a services basis is presented below:
We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:
|Cost of revenues||$||228,153||$||215,572||$||185,476||$||638,301||$||481,108|
|Depreciation, amortization and accretion expense||(82,020||)||(76,515||)||(67,255||)||(229,135||)||(170,573||)|
|Stock-based compensation expense||(1,573||)||(1,499||)||(1,619||)||(4,417||)||(4,957||)|
|Cash cost of revenues||$||144,560||$||137,558||$||116,602||$||404,749||$||305,578|
|The geographic split of our cash cost of revenues is presented below:|
|Americas cash cost of revenues||$||86,503||$||81,886||$||71,879||$||238,599||$||177,247|
|EMEA cash cost of revenues||36,930||36,217||29,373||107,638||86,969|
|Asia-Pacific cash cost of revenues||21,127||19,455||15,350||58,512||41,362|
|Cash cost of revenues||$||144,560||$||137,558||$||116,602||$||404,749||$||305,578|
We define cash gross profit as revenues less cash cost of revenues (as defined above).
We define cash operating expenses as operating expenses less depreciation, amortization, stock-based compensation, restructuring charges and acquisition costs. We also refer to cash operating expenses as cash selling, general and administrative expenses or "cash SG&A".
We define cash sales and marketing expenses as sales and marketing expenses less depreciation, amortization and stock-based compensation as presented below:
|Sales and marketing expenses||$||43,070||$||37,063||$||31,205||$||113,769||$||79,586|
|Depreciation and amortization expense||(4,413||)||(4,192||)||(3,407||)||(12,271||)||(7,756||)|
|Stock-based compensation expense||(4,153||)||(3,610||)||(3,627||)||(10,629||)||(10,316||)|
|Cash sales and marketing expenses||$||34,504||$||29,261||$||24,171||$||90,869||$||61,514|
We define cash general and administrative expenses as general and administrative expenses less depreciation, amortization and stock-based compensation as presented below:
|General and administrative expenses||$||65,976||$||65,681||$||58,640||$||194,258||$||155,961|
|Depreciation and amortization expense||(5,586||)||(5,719||)||(3,823||)||(16,564||)||(9,104||)|
|Stock-based compensation expense||(13,481||)||(13,209||)||(11,704||)||(38,014||)||(34,747||)|
|Cash general and administrative expenses||$||46,909||$||46,753||$||43,113||$||139,680||$||112,110|
Our cash operating expenses, or cash SG&A, as defined above, is presented below:
|Cash sales and marketing expenses||$||34,504||$||29,261||$||24,171||$||90,869||$||61,514|
|Cash general and administrative expenses||46,909||46,753||43,113||139,680||112,110|
|The geographic split of our cash operating expenses, or cash SG&A, is presented below:|
|Americas cash SG&A||$||54,838||$||49,499||$||45,499||$||153,149||$||117,085|
|EMEA cash SG&A||17,427||17,545||14,365||51,908||38,122|
|Asia-Pacific cash SG&A||9,148||8,970||7,420||25,492||18,417|
We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges and acquisition costs as presented below:
|Income from operations||$||78,116||$||74,866||$||52,026||$||224,287||$||140,235|
|Depreciation, amortization and accretion expense||92,019||86,426||74,485||257,970||187,433|
|Stock-based compensation expense||19,207||18,318||16,950||53,060||50,020|
|The geographic split of our adjusted EBITDA is presented below:|
|Americas income from operations||$||51,659||$||49,072||$||31,921||$||148,050||$||84,051|
|Americas depreciation, amortization and accretion expense||58,414||57,246||51,108||169,142||122,363|
|Americas stock-based compensation expense||15,176||14,527||12,683||41,545||37,346|
|Americas restructuring charges||1,587||103||1,886||2,186||6,243|
|Americas acquisition costs||677||1,556||349||2,599||11,192|
|Americas adjusted EBITDA||127,513||122,504||97,947||363,522||261,195|
|EMEA income from operations||16,305||14,178||10,258||41,954||26,251|
|EMEA depreciation, amortization and accretion expense||19,354||18,512||15,531||54,710||43,752|
|EMEA stock-based compensation expense||2,308||2,147||2,502||6,750||7,183|
|EMEA acquisition costs||-||12||765||14||765|
|EMEA adjusted EBITDA||37,967||34,849||29,056||103,428||77,951|
|Asia-Pacific income from operations||10,152||11,616||9,847||34,283||29,933|
|Asia-Pacific depreciation, amortization and accretion expense||14,251||10,668||7,846||34,118||21,318|
|Asia-Pacific stock-based compensation expense||1,723||1,644||1,765||4,765||5,491|
|Asia-Pacific acquisition costs||22||47||-||116||-|
|Asia-Pacific adjusted EBITDA||26,148||23,975||19,458||73,282||56,742|
We define cash gross margins as cash gross profit divided by revenues.
|Our cash gross margins by geographic region is presented below:|
|Americas cash gross margins||68||%||68||%||67||%||68||%||68||%|
|EMEA cash gross margins||60||%||59||%||60||%||59||%||57||%|
|Asia-Pacific cash gross margins||63||%||63||%||64||%||63||%||65||%|
We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
|Americas adjusted EBITDA margins||47||%||48||%||45||%||48||%||47||%|
|EMEA adjusted EBITDA margins||41||%||39||%||40||%||39||%||38||%|
|Asia-Pacific adjusted EBITDA margins||46||%||46||%||46||%||47||%||49||%|
|We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:
|Adjusted EBITDA - current period||$||191,628||$||181,328||$||146,461||$||540,232||$||395,888|
|Less adjusted EBITDA - prior period||(181,328||)||(167,276||)||(132,155||)||(427,563||)||(317,230||)|
|Adjusted EBITDA growth||$||10,300||$||14,052||$||14,306||$||112,669||$||78,658|
|Revenues - current period||$||417,601||$||394,900||$||330,347||$||1,175,530||$||875,090|
|Less revenues - prior period||(394,900||)||(363,029||)||(296,094||)||(971,685||)||(683,278||)|
|Adjusted EBITDA flow-through rate||45||%||44||%||42||%||55||%||41||%|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||$||370,523||$||442,841|
|Accounts receivable, net||144,185||116,358|
|Other current assets||115,344||71,657|
|Total current assets||1,330,298||778,048|
|Property, plant and equipment, net||3,122,094||2,650,953|
|Intangible assets, net||153,505||150,945|
|Liabilities and Stockholders' Equity|
|Accounts payable and accrued expenses||$||181,093||$||145,854|
|Accrued property and equipment||90,181||91,667|
|Current portion of capital lease and other financing obligations||11,367||7,988|
|Current portion of loans payable||74,652||19,978|
|Current portion of convertible debt||243,176||-|
|Other current liabilities||55,687||52,628|
|Total current liabilities||656,156||318,115|
|Capital lease and other financing obligations, less current portion||376,848||253,945|
|Loans payable, less current portion||161,984||100,337|
|Redeemable non-controlling interests||66,372||-|
|Additional paid-in capital||2,417,781||2,341,586|
|Accumulated other comprehensive loss||(120,416||)||(112,018||)|
|Total stockholders' equity||2,024,507||1,880,515|
|Total liabilities, redeemable non-controlling interests|
|and stockholders' equity||$||5,730,687||$||4,448,009|
|Ending headcount by geographic region is as follows:|
|SUMMARY OF DEBT OUTSTANDING|
|Capital lease and other financing obligations||$ 388,215||$ 261,933|
|Paris IBX financing||40,054||-|
|New Asia-Pacific financing||184,844||120,315|
|Total loans payable||236,636||120,315|
|Convertible debt, net of debt discount||934,696||916,337|
|Plus debt discount||85,040||103,399|
|Total convertible debt principal||1,019,736||1,019,736|
|Total debt outstanding||$ 3,144,587||$ 2,151,984|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Three Months Ended||Nine Months Ended|
|Cash flows from operating activities:|
|Adjustments to reconcile net income to net cash|
|provided by operating activities:|
|Depreciation, amortization and accretion||92,019||86,426||74,485||257,970||187,433|
|Debt issuance costs and debt discount||8,207||8,325||7,160||23,816||19,403|
|Loss on debt extinguishment and interest rate swaps||-||-||-||-||4,831|
|Other reconciling items||711||3,074||894||5,348||2,162|
|Changes in operating assets and liabilities:|
|Deferred tax assets, net||1,760||(2,507||)||3,442||4,893||7,721|
|Accounts payable and accrued expenses||32||4,082||(3,013||)||(9,492||)||16,047|
|Other assets and liabilities||7,697||11,203||6,992||11,989||(8,514||)|
|Net cash provided by operating activities||141,870||140,348||113,263||399,988||269,981|
|Cash flows from investing activities:|
|Purchases, sales and maturities of investments, net||(677,229||)||30,979||(115,554||)||(648,435||)||(68,256||)|
|Purchase of ALOG, less cash acquired||-||(41,954||)||-||(41,954||)||-|
|Purchase of Switch and Data, less cash acquired||-||-||-||-||(113,289||)|
|Purchase of Frankfurt IBX property||-||(9,042||)||-||(9,042||)||-|
|Purchase of Paris IBX property||-||-||-||(14,951||)||-|
|Purchases of other property and equipment||(131,525||)||(188,875||)||(143,941||)||(495,515||)||(436,046||)|
|Other investing activities||61||(845||)||-||(94,922||)||(916||)|
|Net cash used in investing activities||(808,693||)||(209,737||)||(259,495||)||(1,304,819||)||(618,507||)|
|Cash flows from financing activities:|
|Proceeds from employee equity awards||11,107||8,929||14,026||35,704||36,179|
|Proceeds from loans payable||12,718||55,264||16,853||90,635||115,811|
|Proceeds from senior notes||750,000||-||-||750,000||750,000|
|Repayment of capital lease and other financing obligations||(3,081||)||(2,355||)||(1,713||)||(7,404||)||(14,114||)|
|Repayment of mortgage and loans payable||(11,171||)||-||(11,049||)||(21,273||)||(469,077||)|
|Debt issuance costs||(15,426||)||-||(5||)||(15,551||)||(23,124||)|
|Net cash provided by financing activities||744,147||61,838||18,112||832,111||395,675|
|Effect of foreign currency exchange rates on cash and cash equivalents||(4,673||)||957||5,927||402||(4,056||)|
|Net increase (decrease) in cash and cash equivalents||72,651||(6,594||)||(122,193||)||(72,318||)||43,093|
|Cash and cash equivalents at beginning of period||297,872||304,466||511,342||442,841||346,056|
|Cash and cash equivalents at end of period||$||370,523||$||297,872||$||389,149||$||370,523||$||389,149|
|Free cash flow (1)||$||10,406||$||(100,368||)||$||(30,678||)||$||(256,396||)||$||(280,270||)|
|Adjusted free cash flow (2)||$||10,406||$||(49,372||)||$||(30,678||)||$||(190,449||)||$||(166,981||)|
We define free cash flow as net cash provided by operating activities plus net cash used in investing activities (excluding the net purchases, sales and maturities of investments) as presented below:
|Net cash provided by operating activities as presented above||$||141,870||$||140,348||$||113,263||$||399,988||$||269,981|
|Net cash used in investing activities as presented above||(808,693||)||(209,737||)||(259,495||)||(1,304,819||)||(618,507||)|
|Purchases, sales and maturities of investments, net||677,229||(30,979||)||115,554||648,435||68,256|
|Free cash flow (negative free cash flow)||$||10,406||$||(100,368||)||$||(30,678||)||$||(256,396||)||$||(280,270||)|
We define adjusted free cash flow as free cash flow (as defined above) excluding any purchases or sales of real estate and acquisitions as presented below:
|Free cash flow (as defined above)||$||10,406||$||(100,368||)||$||(30,678||)||$||(256,396||)||$||(280,270||)|
|Less purchase of ALOG, less cash acquired||-||41,954||-||41,954||-|
|Less purchase of Switch and Data, less cash acquired||-||-||-||-||113,289|
|Less purchase of Frankfurt IBX property||-||9,042||-||9,042||-|
|Less purchase of Paris IBX property||-||-||-||14,951||-|
|Adjusted free cash flow (negative adjusted free cash flow)||$||10,406||$||(49,372||)||$||(30,678||)||$||(190,449||)||$||(166,981||)|