Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- May 9th, 2012
Source: InterXion
Tags:

Interxion Reports First Quarter 2012 Results

AMSTERDAM--(BUSINESS WIRE)--

Interxion Holding NV (NYSE: INXN - News), a leading European provider of carrier-neutral colocation data centre services, announced its results today for the three months ended 31 March 2012.

Highlights

  • Revenue for the quarter increased by 14% to €65.8 million (Q1 2011: €57.9 million)
  • Adjusted EBITDA for the quarter increased by 23% to €27.3 million (Q1 2011: €22.2 million)
  • Adjusted EBITDA margin for the quarter increased to 41.5% (Q1 2011: 38.4%)
  • Net profit increased by 210% to €8.7 million (Q1 2011: €2.8 million)
  • Capital expenditure, including intangible assets, was €61.1 million

“In the first quarter of 2012, Interxion again delivered solid performance and demonstrated our ability to consistently grow revenues and Adjusted EBITDA while adding equipped space to support our customers’ needs. Recurring revenue increased by more than 4% over the quarter ended December 31, 2011, and strong bookings in the quarter reflect a continued healthy market for our services, despite sustained economic weakness in Europe,” said Interxion Chief Executive Officer, David Ruberg. “Adjusted EBITDA grew 23% and achieved a margin of 41.5%, demonstrating the operating leverage of our business model. We added 2,000 sqm of equipped space during the quarter, including the opening of our seventh data centre in Frankfurt.”

Quarterly Review

Revenue for the first quarter of 2012 was €65.8 million, a 14% increase over the first quarter of 2011 and a 2% increase over the fourth quarter of 2011. Recurring revenue was €62.3 million, a 15% increase over the first quarter of 2011 and a 4% increase over the fourth quarter of 2011. Recurring revenue was 95% of total revenue.

Cost of sales for the first quarter increased by 7% to €26.5 million, compared with the first quarter of 2011. Gross profit margin increased to 59.7%, compared with 57.2% in the same quarter of 2011. Sales and marketing costs in the first quarter were €4.9 million, up 15% compared with the same quarter in the previous year. General and administrative costs, excluding depreciation, amortisation, impairments, exceptional general and administrative costs, and share-based payments, were €7.1 million, an increase of 7% compared with the first quarter of 2011. Depreciation, amortisation, and impairments increased by 13%, compared with the previous-year first quarter, to €9.7 million.

Net financing costs for the first quarter of 2012 were €4.4 million, compared with €6.6 million in the first quarter of 2011, primarily as a result of higher interest capitalization because of increased data centre construction.

Net profit was €8.7 million in the first quarter of 2012, up 210% from the first quarter of 2011. Earnings per share in the first quarter of 2012 were €0.13 on 67.4 million diluted shares compared to €0.05 on a weighted average of 61.5 million diluted shares in the first quarter of 2011.

Adjusted EBITDA for the first quarter of 2012 was €27.3 million, up 23% year-on-year. Adjusted EBITDA margin expanded to 41.5%, compared with 38.4% in the first quarter of the previous year.

Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €25.4 million, up 23% year-on-year. Capital Expenditure, including intangible assets, was €61.1 million in Q1 2012 and included the exercise of an option to purchase the land and buildings of Amsterdam 6 data centre, which is currently under construction.

Cash and cash equivalents were €98.2 million at 31 March 2012, down from €142.7 million at year-end 2011. The company’s revolving credit facility remains undrawn.

Equipped space at the end of the first quarter 2012 was 64,800 square metres compared with 61,000 square metres at the end of the first quarter of 2011 and 62,800 square metres at the end of the fourth quarter of 2011. Utilisation rate, the ratio of revenue-generating space to equipped space, was 73%, the same as in the first quarter of 2011, and down from 75% in the fourth quarter of 2011, principally as a result of the increase in equipped space associated with Frankfurt 7, which opened late in the quarter.

Business Outlook

The company today reaffirmed its guidance for 2012:

Revenue
€275 million – €285 million
Adjusted EBITDA
€112 million – €120 million
Capital Expenditure (including intangibles)
€170 million – €190 million

Conference Call to Discuss Results

The company will host a conference call at 8:30am ET (1:30pm BST, 2:30pm CET) to discuss the results.

To participate in this call, US callers may dial toll free, 1-866-966-9439; callers outside the US may dial direct, +44 (0)1452 555 566. The conference ID for this call is 70068620. This event will also be webcast live over the Internet in listen-only mode at investors.interxion.com.

A replay of the call will be available from shortly after it ends until 15 May 2012. To access the replay, US callers may dial toll free, 1-866-247-4222; callers outside the US may dial direct, +44 (0)1452 550 000. The replay access number is 70068620#.

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 Adjusted EBITDA as additional information because we believe this measure is used by certain investors in their analyses and because it is used in the financial covenants in our revolving credit facility and 9.50% Senior Secured Notes due 2017. Other companies may, however, present Adjusted EBITDA differently. Adjusted EBITDA is not a measure of financial performance under IFRS and should not be considered as a measure of liquidity or as an alternative to operating profit, net income or any other measure of performance, derived in accordance with IFRS, as an indicator of our operating performance.

A reconciliation of Adjusted EBITDA to EBITDA and Operating Profit is provided in the Notes to Consolidated Income Statement: Group Metrics.

Interxion does not provide forward-looking estimates of Operating Profit, Depreciation, Amortization, and Impairments, Share-based Payments, or Exceptional Items, which it uses to reconcile to Adjusted EBITDA. The Company is, therefore, unable to provide reconciling information. Interxion intends to calculate Adjusted EBITDA in future periods consistent with the way in which it is calculated for the periods presented in this press release.

About Interxion

Interxion (NYSE: INXN - News) is a leading provider of carrier-neutral colocation data centre services in Europe, serving a wide range of customers through 29 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 over 400 carriers and ISPs and 18 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 STATEMENT
(in €'000 - except per share data and where stated otherwise)
(unaudited)
Three Months Ended
Mar-31 Mar-31
2012 2011
Revenue 65,812 57,892
Cost of sales (26,499 ) (24,780 )
Gross Profit 39,313 33,112
Other income 118 127
Sales and marketing costs (4,850 ) (4,212 )
General and administrative costs (17,521 ) (17,299 )
Operating Profit 17,060 11,728
Net finance expense (4,435 ) (6,588 )
Profit Before Taxation 12,625 5,140
Income tax expense (3,929 ) (2,332 )
Net Profit 8,696 2,808
Basic earnings per share: (€) 0.13 0.05
Diluted earnings per share: (€) 0.13 0.05
Number of shares outstanding at the end of the period (shares in thousands) 66,902 65,577
Weighted average number of shares for Basic EPS (shares in thousands) 66,335 59,146
Weighted average number of shares for Diluted EPS (shares in thousands) 67,439 61,477
Capacity Metrics
Equipped space (in square meters) 64,800 61,000
Revenue generating space (in square meters) 47,500 44,600
Utilisation rate 73 % 73 %
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION
(in €'000 - except where stated otherwise)
(unaudited)
Three Months Ended
Mar-31 Mar-31
2012 2011
Consolidated
Recurring revenue 62,279 54,142
Non-recurring revenue 3,533 3,750
Revenue 65,812 57,892
Adjusted EBITDA 27,336 22,210
Gross Margin 59.7 % 57.2 %
Adjusted EBITDA Margin 41.5 % 38.4 %
Total assets 754,854 692,175
Total liabilities 411,854 392,682
Capital expenditure, including intangible assets (i) (61,100 ) (19,518 )
France, Germany, Netherlands, and UK
Recurring revenue 38,013 32,245
Non-recurring revenue 2,292 2,427
Revenue 40,305 34,672
Adjusted EBITDA 21,577 16,779
Gross Margin 62.6 % 58.5 %
Adjusted EBITDA Margin 53.5 % 48.4 %
Total assets 461,638 298,005
Total liabilities 98,395 88,922
Capital expenditure, including intangible assets (i) (52,493 ) (12,340 )
Rest of Europe
Recurring revenue 24,266 21,897
Non-recurring revenue 1,241 1,323
Revenue 25,507 23,220
Adjusted EBITDA 13,408 12,102
Gross Margin 61.4 % 61.1 %
Adjusted EBITDA Margin 52.6 % 52.1 %
Total assets 188,967 152,566
Total liabilities 42,723 35,768
Capital expenditure, including intangible assets (i)
(7,923 ) (6,264 )
Corporate and Other
Adjusted EBITDA (7,649 ) (6,671 )
Total assets 104,249 241,604
Total liabilities 270,736 267,992
Capital expenditure, including intangible assets (i) (684 ) (914 )
(i) Capital expenditure, including intangible assets, represents payments to acquire property, plant and equipment and intangible assets, as recorded in the consolidated statement of cash flows as "Purchase of property, plant and equipment" and "Purchase of intangible assets" respectively.
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: GROUP METRICS
(in €'000 - except where stated otherwise)
(unaudited)
Three Months Ended
Mar-31 Mar-31
2012 2011
Reconciliation of adjusted EBITDA
Consolidated
Adjusted EBITDA 27,336 22,210
Income from sub-leases on unused data centre sites 118 127
Exceptional Income 118 127
(Increase)/decrease in provision for onerous lease contracts (18 )
IPO transaction costs (ii) (1,725 )
Share-based payments (739 ) (340 )
Exceptional General and Administrative costs (739 ) (2,083 )
EBITDA 26,715 20,254
Depreciation and amortization (9,655 ) (8,526 )
Operating Profit 17,060 11,728
France, Germany, Netherlands, and UK
Adjusted EBITDA
21,577 16,779
Income from sub-leases on unused data centre sites
118 127
Exceptional Income 118 127
(Increase)/decrease in provision for onerous lease contracts
(18 )
Share-based payments (161 ) (92 )
Exceptional General and Administrative costs (161 ) (110 )
EBITDA 21,534 16,796
Depreciation and amortization (5,325 ) (5,146 )
Operating Profit 16,209 11,650
Rest of Europe
Adjusted EBITDA 13,408 12,102
Share-based payments (107 ) (81 )
Exceptional General and Administrative costs (107 ) (81 )
EBITDA 13,301 12,021
Depreciation and amortization (3,606 ) (2,998 )
Operating Profit 9,695 9,023
Corporate and Other
Adjusted EBITDA (7,649 ) (6,671 )
IPO transaction costs (ii) (1,725 )
Share-based payments (471 ) (167 )
Exceptional General and Administrative costs (471 ) (1,892 )
EBITDA (8,120 ) (8,563 )
Depreciation and amortization (724 ) (382 )
Operating Profit/(Loss) (8,844 ) (8,945 )
(ii) 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 STATEMENT OF FINANCIAL POSITION
(in €'000 - except where stated otherwise)
(unaudited)
As at
Mar-31 Dec-31
2012 2011
Non-current Assets
Property, plant and equipment 526,592 477,798
Intangible assets 13,661 12,542
Deferred tax assets 37,200 39,557
Financial fixed assets 774
Other non-current assets 3,380 3,841
581,607 533,738
Current Assets
Trade and other current assets 75,067 67,874
Cash and cash equivalents 98,180 142,669
173,247 210,543
Total Assets 754,854 744,281
Shareholders’ Equity
Share capital 6,691 6,613
Share premium 469,377 466,166
Foreign currency translation reserve 7,840 7,386
Accumulated deficit (140,908 ) (149,604 )
343,000 330,561
Non-current Liabilities
Trade and other liabilities 10,717 10,294
Deferred tax liability 1,921 1,742
Provision for onerous lease contracts 9,941 10,618
Borrowings 257,430 257,267
280,009 279,921
Current Liabilities
Trade payables and other liabilities 124,955 127,639
Income tax liabilities 3,014 2,249
Provision for onerous lease contracts 3,116 3,108
Borrowings 760 803
131,845 133,799
Total Liabilities 411,854 413,720
Total Liabilities and Shareholders’ Equity 754,854 744,281
INTERXION HOLDING NV
NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION: BORROWINGS
(in €'000 - except where stated otherwise)
(unaudited)
As at
Mar-31 Dec-31
2012 2011
Borrowings Net of Cash and Cash Equivalents
Cash and Cash Equivalents (iii) 98,180 142,669
9.5% Senior Secured Notes due 2017 (iv) 255,737 255,560
Financial Leases 280 337
Other Borrowings 2,173 2,173
Borrowings Excluding Revolving Credit Facility Deferred Financing Costs 258,190 258,070
Revolving credit facility deferred financing costs (v) (513 ) (667 )
Total Borrowings 257,677 257,403
Borrowings Net of Cash and Cash Equivalents 159,497 114,734
(iii) Cash and cash equivalents includes €4.9 million as of March 31, 2012 and €4.8 million as of December 31, 2011, which is restricted and held as collateral to support the issuance of bank guarantees on behalf of a number of subsidiary companies.
(iv) €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.
(v) We reported deferred financing costs of €0.5 million in connection with entering into our €50 million revolving credit facility which is currently undrawn.
INTERXION HOLDING NV
CONSOLIDATED STATEMENT OF CASH FLOWS
(in €'000 - except where stated otherwise)
(unaudited)
Three Months Ended
Mar-31 Mar-31
2012 2011
Profit for the period 8,696 2,808
Depreciation and amortization 9,655 8,526
IPO transaction costs 1,725
Unwinding provision for onerous lease contracts (785 ) (774 )
Share-based payments 739 340
Net finance expense 4,435 6,588
Income tax expense 3,929 2,332
26,669 21,545
Movements in trade and other current assets (6,927 ) (7,283 )
Movements in trade and other liabilities 5,677 6,415
Cash Generated from Operations 25,419 20,677
Interest paid (9,974 ) (12,159 )
Interest received 148 271
Income tax paid (711 ) (687 )
Net Cash Flows from Operating Activities 14,882 8,102
Cash Flow from Investing Activities
Purchase of property, plant and equipment (59,695 ) (19,124 )
Purchase of intangible assets (1,405 ) (394 )
Acquisition financial fixed asset (774 )
Net Cash Flows from Investing Activities (61,874 ) (19,518 )
Cash Flow from Financing Activities
Proceeds from exercised options 2,550 2,324
Proceeds from issuance of new shares 143,352
Repayment of "Liquidation Price" to former preferred shareholders (3,055 )
Proceeds from Senior Secured Notes and RCF (439 )
Other borrowings (57 ) (739 )
Net Cash Flows from Financing Activities 2,493 141,443
Effect of exchange rate changes on cash 10 117
Net Movement in Cash and Cash Equivalents (44,489 ) 130,144
Cash and cash equivalents, beginning of period 142,669 99,115
Cash and Cash Equivalents, End of Period 98,180 229,259
INTERXION HOLDING NV
Announced Expansion Projects
with Target Completion Dates in 2012
Market Project CAPEX (a, b)
Equipped
Space (a)
Target Completion
(€ million) (Sqm)
Stockholm STO 1: Phase 4 Expansion € 5 500 1Q 2012 (completed)
Frankfurt FRA 7: New Build € 21 1,500 1Q 2012 (completed)
Paris PAR 7 : Phase 1 New Build € 70 4,500 2Q 2012
London LON 2: New Build € 38 1,700 2Q 2012
Amsterdam AMS 6: New Build € 60 4,000 4Q 2012
Total € 194 12,200
(a) CAPEX and Equipped Space are approximate and may change after project completion.
(b) CAPEX reflects the total for the listed project at full power and capacity and may not be all invested in the current year.
Contact:
Interxion
Jim Huseby, +1-813-644-9399
Investor Relations
IR@interxion.com

PR Archives: Latest, By Company, By Date