Consistent Execution Delivers Solid Financial and Operating Performance
AMSTERDAM–(BUSINESS WIRE)–
Interxion Holding NV (INXN), a leading European provider of carrier and cloud-neutral colocation data centre services, announced its results today for the three months ended 30 September 2015.
Financial Highlights
- Revenue increased by 13% to €98.0 million (3Q 2014: €86.4 million).
- Adjusted EBITDA1 increased by 17% to €43.7 million (3Q 2014: €37.3 million).
- Adjusted EBITDA margin increased to 44.6% (3Q 2014: 43.1%).
- Net profit increased to €10.4 million (3Q 2014: €9.0 million).
- Adjusted net profit1 increased to €8.7 million (3Q 2014: €8.0 million).
- Earnings per diluted share were €0.15 (3Q 2014: €0.13).
- Adjusted earnings per diluted share1 were €0.12 (3Q 2014: €0.11).
- Capital Expenditures, including intangible assets2, were €35.3 million (3Q 2014: €57.0 million).
Operating Highlights
- Equipped Space increased by 1,900 square metres to 100,200 square metres.
- Revenue Generating Space increased by 900 square metres to 78,000 square metres.
- Utilisation Rate at the end of the quarter was 78%.
- Expansion projects in Madrid and Marseille completed during the quarter.
- Announced on 3 November, the build of new data centres in Amsterdam (AMS8), Copenhagen (CPH2), and Dublin (DUB3) and the further expansion in Frankfurt (FRA10).
“Interxion posted very solid results in the third quarter, reflecting the Company’s continued focus on financial discipline and operational execution,” said David Ruberg, Interxion’s Chief Executive Officer. “As the cloud roll out across Europe gains momentum, Interxion continues to deliver value to customers and strong returns for our shareholders through a differentiated service offering and the creation of complementary Communities of Interest, combined with disciplined capital allocation.”
Quarterly Review
Revenue in the third quarter of 2015 was €98.0 million, a 13% increase over the third quarter of 2014 and a 3% increase over the second quarter of 2015. Recurring revenue was €92.8 million, a 15% increase over the third quarter of 2014 and a 3% increase over the second quarter of 2015. Recurring revenue in the quarter was 95% of total revenue.
Cost of sales in the third quarter of 2015 was €38.5 million, an 8% increase over the third quarter of 2014 and a 2% increase over the second quarter of 2015.
Gross profit was €59.5 million in the third quarter of 2015, a 17% increase over the third quarter of 2014 and a 3% increase over the second quarter of 2015. Gross profit margin was 60.7% in the third quarter of 2015 compared to 58.9% in the third quarter of 2014 and 60.5% in the second quarter of 2015.
Sales and marketing costs in the third quarter of 2015 were €6.9 million, a 17% increase over the third quarter of 2014 and a 4% decrease from the second quarter of 2015.
Other general and administrative costs were €8.8 million in the third quarter of 2015, a 15% increase over the third quarter of 2014 and a 3% increase from the second quarter of 2015. Other general and administrative costs exclude depreciation, amortisation, impairments, share-based payments, M&A transaction costs and the movement in the provision for onerous lease contracts.
Adjusted EBITDA for the third quarter of 2015 was €43.7 million, a 17% increase over the third quarter of 2014 and a 4% increase over the second quarter of 2015. Adjusted EBITDA margin was 44.6% in the third quarter of 2015 compared to 43.1% in the third quarter of 2014 and 44.0% in the second quarter of 2015.
Depreciation, amortisation, and impairments in the third quarter of 2015 was €20.3 million, an increase of 26% from the third quarter of 2014 and a 3% increase from the second quarter of 2015.
Operating profit in the third quarter of 2015 was €21.6 million, an increase of 9% from the third quarter of 2014, and a 43% decrease from the second quarter of 2015. Both the second and third quarter operating profit results were impacted by M&A transaction related items. Adjusting for these items, operating profit was €22.0 million in the third quarter of 2015, an increase of 11% over the third quarter of 2014 and an increase of 6% over the second quarter of 2015.
Net finance costs for the third quarter of 2015 were €6.4 million, an 8% decrease over the third quarter of 2014, and a 19% decrease from the second quarter of 2015. Reported as part of net finance costs in the quarter was a €2.3 million gain following the sale of a financial asset.
Income tax expense for the third quarter of 2015 was €4.7 million, a 23% increase over the third quarter of 2014, and a 42% decrease from the second quarter of 2015.
Net profit was €10.4 million in the third quarter of 2015, a 16% increase over the third quarter of 2014, and a 52% decrease from the second quarter of 2015.
Adjusted net profit was €8.7 million in the third quarter of 2015, a 9% increase over the third quarter of 2014, and a 5% increase from the second quarter of 2015.
Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €43.0 million in the third quarter of 2015, compared to €33.6 million in the third quarter of 2014, and €54.1 million in the second quarter of 2015. Cash generated from operations in the second quarter of 2015 included the receipt of the £15 million (€20.9 million) payment related to the termination of the implementation agreement with TelecityGroup.
Capital expenditures, including intangible assets, were €35.3 million in the third quarter of 2015 compared to €57.0 million in the third quarter of 2014 and €47.8 million in the second quarter of 2015.
Cash and cash equivalents were €50.0 million at 30 September 2015, compared to €99.9 million at year end 2014. Total borrowings, net of deferred revolving facility financing fees, were €541.0 million at 30 September 2015 compared to €560.6 million at year end 2014. As of 30 September 2015, the company’s revolving credit facility was undrawn.
Equipped space at the end of the third quarter of 2015 was 100,200 square metres compared to 88,600 square metres at the end of the third quarter of 2014 and 98,300 square metres at the end of the second quarter of 2015. Utilisation rate, the ratio of revenue-generating space to equipped space, was 78% at the end of the third quarter of 2015, compared with 77% at the end of the third quarter of 2014 and 78% at the end of the second quarter of 2015.
Business Outlook
Interxion today reaffirms guidance for its Revenue and Adjusted EBITDA, and Capital expenditures (including intangibles) for full year 2015:
| Revenue | €375 million – €388 million | |
| Adjusted EBITDA | €162 million – €172 million | |
| Capital expenditures (including intangibles) | €180 million – €200 million |
Conference Call to Discuss Results
Interxion will host a conference call today at 8:30 a.m. ET (1:30 pm GMT, 2:30 pm CET) to discuss its third quarter 2015 results.
To participate in this call, U.S. callers may dial toll free 1-866-966-1396; callers outside the U.S. may dial direct +44 (0) 2071 928 000. The conference ID for this call is “INXN”. 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 until 10 November 2015. 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 550 000. The replay access number is 53506531.
Forward-looking Statements
This communication contains forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking statements. Factors that could cause actual results and future events to differ materially from Interxion’s expectations include, but are not limited to, the difficulty of reducing operating expenses in the short term, the 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, certain other risks detailed herein and other risks described from time to time in Interxion’s filings with the United States Securities and Exchange Commission (the “SEC”).
Interxion does not assume any obligation to update the forward-looking information contained in this report.
Use of Non-IFRS Information
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, M&A transaction costs, increase/decrease in provision for onerous lease contracts, M&A transaction break fee income, and income from sub-leases of unused data centre sites. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. We present EBITDA, Adjusted EBITDA and Adjusted EBITDA margin as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in the €100 million revolving facility and €475 million 6.00% Senior Secured Notes due 2020. A reconciliation from Net profit to EBITDA and EBITDA to Adjusted EBITDA is provided in the notes to our consolidated interim income statement.
Adjusted net profit is defined as Net profit excluding the impact of refinancing charges, M&A transaction costs, M&A transaction break fee income, profit on sale of financial asset, increase / decrease in the provision for onerous lease contracts, interest capitalised, and the related corporate income tax effect with respect to the foregoing items.
Other companies may, however, present EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net profit differently than we do. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net profit 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. Interxion does not provide forward-looking estimates of Net profit, Operating profit, depreciation, amortisation, and impairments, share-based payments, M&A transaction costs or increase/decrease in provision for onerous lease contracts, and income from sub-leases of unused data centre sites, which it uses to reconcile to Adjusted EBITDA. The Company is, therefore, unable to provide forward-looking reconciling information for Adjusted EBITDA.
About Interxion
Interxion (INXN) is a leading provider of carrier and cloud-neutral colocation data centre services in Europe, serving a wide range of customers through 40 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 over 500 connectivity providers, 20 European Internet exchanges, and most leading cloud and digital media platforms across its footprint, Interxion has created connectivity, cloud, content and finance hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.
1 Adjusted EBITDA, Adjusted net profit, and Adjusted earnings per diluted share are non-IFRS figures intended to adjust for unusual items. Full definitions can be found in the “Use of non-IFRS information” section later in this press release. Reconciliations of Adjusted EBITDA and Adjusted net profit to Net profit can be found in the financial tables later in this press release.
2 Capital expenditures, including intangible assets, represent 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 | |||||||||||||
| CONSOLIDATED INCOME STATEMENT | |||||||||||||
| (in €’000 ― except per share data and where stated otherwise) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
30 Sep | 30 Sep | 30 Sep | 30 Sep | ||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||
| Revenue | 97,976 | 86,446 | 285,907 | 250,702 | |||||||||
| Cost of sales | (38,464 | ) | (35,531 | ) | (112,409 | ) | (102,107 | ) | |||||
Gross profit | 59,512 | 50,915 | 173,498 | 148,595 | |||||||||
| Other income | 142 | 57 | 21,202 | 167 | |||||||||
| Sales and marketing costs | (6,943 | ) | (5,926 | ) | (20,832 | ) | (18,021 | ) | |||||
| General and administrative costs | (31,152 | ) | (25,211 | ) | (101,135 | ) | (71,199 | ) | |||||
| Operating profit | 21,559 | 19,835 | 72,733 | 59,542 | |||||||||
| Net finance expense | (6,407 | ) | (6,986 | ) | (20,938 | ) | (19,875 | ) | |||||
| Profit before taxation | 15,152 | 12,849 | 51,795 | 39,667 | |||||||||
| Income tax expense | (4,737 | ) | (3,855 | ) | (15,368 | ) | (11,992 | ) | |||||
| Net profit | 10,415 | 8,994 | 36,427 | 27,675 | |||||||||
Basic earnings per share: (€) | 0.15 | 0.13 | 0.52 | 0.40 | |||||||||
| Diluted earnings per share: (€) | 0.15 | 0.13 | 0.52 | 0.40 | |||||||||
| Number of shares outstanding at the end of the period (shares in thousands) | 69,638 | 69,161 | 69,638 | 69,161 | |||||||||
| Weighted average number of shares for Basic EPS (shares in thousands) | 69,619 | 69,118 | 69,526 | 68,985 | |||||||||
| Weighted average number of shares for Diluted EPS (shares in thousands) | 70,612 | 70,039 | 70,561 | 69,921 | |||||||||
| As at | |||||||||||||
| 30 Sep | 30 Sep | ||||||||||||
Capacity metrics | 2015 | 2014 | |||||||||||
| Equipped space (in square meters) | 100,200 | 88,600 | |||||||||||
| Revenue generating space (in square meters) | 78,000 | 68,500 | |||||||||||
| Utilisation rate | 78 | % | 77 | % | |||||||||
| INTERXION HOLDING NV | ||||||||||||
| NOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION | ||||||||||||
| (in €’000 ― except where stated otherwise) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
30 Sep | 30 Sep | 30 Sep | 30 Sep | |||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
Consolidated | ||||||||||||
| Recurring revenue | 92,753 | 80,863 | 270,101 | 235,466 | ||||||||
| Non-recurring revenue | 5,223 | 5,583 | 15,806 | 15,236 | ||||||||
| Revenue | 97,976 | 86,446 | 285,907 | 250,702 | ||||||||
| Adjusted EBITDA | 43,732 | 37,275 | 126,366 | 107,686 | ||||||||
| Gross profit margin | 60.7 | % | 58.9 | % | 60.7 | % | 59.3 | % | ||||
| Adjusted EBITDA margin | 44.6 | % | 43.1 | % | 44.2 | % | 43.0 | % | ||||
| Total assets | 1,208,485 | 1,134,861 | 1,208,485 | 1,134,861 | ||||||||
| Total liabilities | 719,963 | 708,601 | 719,963 | 708,601 | ||||||||
| Capital expenditure, including intangible assets (a) | (35,270 | ) | (57,041 | ) | (150,675 | ) | (168,456 | ) | ||||
France, Germany, the Netherlands, and the UK | ||||||||||||
| Recurring revenue | 59,461 | 50,950 | 171,765 | 147,929 | ||||||||
| Non-recurring revenue | 3,758 | 3,901 | 10,380 | 9,904 | ||||||||
| Revenue | 63,219 | 54,851 | 182,145 | 157,833 | ||||||||
| Adjusted EBITDA | 34,907 | 29,226 | 99,525 | 84,408 | ||||||||
| Gross profit margin | 62.3 | % | 60.5 | % | 62.3 | % | 61.1 | % | ||||
| Adjusted EBITDA margin | 55.2 | % | 53.3 | % | 54.6 | % | 53.5 | % | ||||
| Total assets | 852,020 | 760,212 | 852,020 | 760,212 | ||||||||
| Total liabilities | 175,537 | 165,599 | 175,537 | 165,599 | ||||||||
| Capital expenditure, including intangible assets (a) | (26,624 | ) | (37,322 | ) | (96,935 | ) | (116,495 | ) | ||||
Rest of Europe | ||||||||||||
| Recurring revenue | 33,292 | 29,913 | 98,336 | 87,537 | ||||||||
| Non-recurring revenue | 1,465 | 1,682 | 5,426 | 5,332 | ||||||||
| Revenue | 34,757 | 31,595 | 103,762 | 92,869 | ||||||||
| Adjusted EBITDA | 19,784 | 16,767 | 58,104 | 49,198 | ||||||||
| Gross profit margin | 64.3 | % | 61.5 | % | 64.2 | % | 62.0 | % | ||||
| Adjusted EBITDA margin | 56.9 | % | 53.1 | % | 56.0 | % | 53.0 | % | ||||
| Total assets | 308,934 | 263,009 | 308,934 | 263,009 | ||||||||
| Total liabilities | 57,150 | 53,817 | 57,150 | 53,817 | ||||||||
| Capital expenditure, including intangible assets (a) | (6,022 | ) | (17,696 | ) | (49,436 | ) | (47,648 | ) | ||||
Corporate and other | ||||||||||||
| Adjusted EBITDA | (10,959 | ) | (8,718 | ) | (31,263 | ) | (25,920 | ) | ||||
| Total assets | 47,531 | 111,640 | 47,531 | 111,640 | ||||||||
| Total liabilities | 487,276 | 489,185 | 487,276 | 489,185 | ||||||||
| Capital expenditure, including intangible assets (a) | (2,624 | ) | (2,023 | ) | (4,304 | ) | (4,313 | ) | ||||
(a) 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: ADJUSTED EBITDA RECONCILIATION | |||||||||||||
| (in €’000 ― except where stated otherwise) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| 30 Sep | 30 Sep | 30 Sep | 30 Sep | ||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||
Reconciliation to Adjusted EBITDA | |||||||||||||
Consolidated | |||||||||||||
| Net profit | 10,415 | 8,994 | 36,427 | 27,675 | |||||||||
| Income tax expense | 4,737 | 3,855 | 15,368 | 11,992 | |||||||||
| Profit before taxation | 15,152 | 12,849 | 51,795 | 39,667 | |||||||||
| Net finance expense | 6,407 | 6,986 | 20,938 | 19,875 | |||||||||
| Operating profit | 21,559 | 19,835 | 72,733 | 59,542 | |||||||||
| Depreciation, amortisation and impairments | 20,251 | 16,025 | 58,043 | 44,870 | |||||||||
| EBITDA | 41,810 | 35,860 | 130,776 | 104,412 | |||||||||
| Share-based payments | 1,664 | 1,472 | 5,694 | 4,246 | |||||||||
| Increase/(decrease) in provision for onerous lease contracts | (84 | ) | – | (184 | ) | (805 | ) | ||||||
| M&A transaction break fee income (a) | – | – | (20,923 | ) | – | ||||||||
| M&A transaction costs (b) | 484 | – | 11,282 | – | |||||||||
| Income from sub-leases on unused data centre sites | (142 | ) | (57 | ) | (279 | ) | (167 | ) | |||||
| Adjusted EBITDA | 43,732 | 37,275 | 126,366 | 107,686 | |||||||||
France, Germany, the Netherlands, and the UK | |||||||||||||
| Operating profit | 21,714 | 18,420 | 61,516 | 55,452 | |||||||||
| Depreciation, amortisation and impairments | 13,066 | 10,528 | 37,327 | 28,968 | |||||||||
| EBITDA | 34,780 | 28,948 | 98,843 | 84,420 | |||||||||
| Share-based payments | 353 | 335 | 1,145 | 960 | |||||||||
| Increase/(decrease) in provision for onerous lease contracts | (84 | ) | – | (184 | ) | (805 | ) | ||||||
| Income from sub-leases on unused data centre sites | (142 | ) | (57 | ) | (279 | ) | (167 | ) | |||||
| Adjusted EBITDA | 34,907 | 29,226 | 99,525 | 84,408 | |||||||||
Rest of Europe | |||||||||||||
| Operating profit | 13,464 | 11,857 | 40,017 | 35,158 | |||||||||
| Depreciation, amortisation and impairments | 6,113 | 4,610 | 17,475 | 13,386 | |||||||||
| EBITDA | 19,577 | 16,467 | 57,492 | 48,544 | |||||||||
| Share-based payments | 207 | 300 | 612 | 654 | |||||||||
Adjusted EBITDA | 19,784 | 16,767 | 58,104 | 49,198 | |||||||||
Corporate and Other | |||||||||||||
| Operating profit/(loss) | (13,619 | ) | (10,442 | ) | (28,800 | ) | (31,068 | ) | |||||
| Depreciation, amortisation and impairments | 1,072 | 887 | 3,241 | 2,516 | |||||||||
| EBITDA | (12,547 | ) | (9,555 | ) | (25,559 | ) | (28,552 | ) | |||||
| Share-based payments | 1,104 | 837 | 3,937 | 2,632 | |||||||||
| M&A transaction break fee income (a) | – | – | (20,923 | ) | – | ||||||||
| M&A transaction costs (b) | 484 | – | 11,282 | – | |||||||||
| Adjusted EBITDA | (10,959 | ) | (8,718 | ) | (31,263 | ) | (25,920 | ) | |||||
(a) On 9 March 2015 the Company signed the definitive agreement on an all-share merger (the “Implementation Agreement”) with TelecityGroup plc(“TelecityGroup”) on the terms as announced on 11 February 2015. Following termination of the Implementation Agreement on 29 May 2015, the Company received a cash break-up fee of £15 million from TelecityGroup which is reported as “Other income”.
(b) M&A transaction costs represent expenses associated with the Implementation Agreement and its subsequent termination on 29 May 2015.
| INTERXION HOLDING NV | |||||||
| CONSOLIDATED BALANCE SHEET | |||||||
| (in €’000 ― except where stated otherwise) | |||||||
| (unaudited) | |||||||
| As at | |||||||
| 30 Sep | 31 Dec | ||||||
| 2015 | 2014 | ||||||
Non-current assets | |||||||
| Property, plant and equipment | 974,895 | 895,184 | |||||
| Intangible assets | 22,237 | 18,996 | |||||
| Deferred tax assets | 23,629 | 30,064 | |||||
| Financial assets | – | 774 | |||||
| Other non-current assets | 6,255 | 5,750 | |||||
| 1,027,016 | 950,768 | ||||||
| Current assets | |||||||
| Trade receivables and other current assets | 131,439 | 120,762 | |||||
| Short term investments | – | 1,650 | |||||
| Cash and cash equivalents | 50,030 | 99,923 | |||||
| 181,469 | 222,335 | ||||||
| Total assets | 1,208,485 | 1,173,103 | |||||
| Shareholders’ equity | |||||||
| Share capital | 6,957 | 6,932 | |||||
| Share premium | 502,621 | 495,109 | |||||
| Foreign currency translation reserve | 18,819 | 10,440 | |||||
| Hedging reserve, net of tax | (213 | ) | (247 | ) | |||
| Accumulated deficit | (39,662 | ) | (76,089 | ) | |||
| 488,522 | 436,145 | ||||||
| Non-current liabilities | |||||||
| Trade payables and other liabilities | 12,858 | 12,211 | |||||
| Deferred tax liabilities | 9,897 | 7,029 | |||||
| Provision for onerous lease contracts | – | 1,491 | |||||
| Borrowings | 539,482 | 540,530 | |||||
| 562,237 | 561,261 | ||||||
| Current liabilities | |||||||
| Trade payables and other liabilities | 148,485 | 146,502 | |||||
| Income tax liabilities | 4,516 | 4,690 | |||||
| Provision for onerous lease contracts | 2,379 | 3,443 | |||||
| Borrowings | 2,346 | 21,062 | |||||
| 157,726 | 175,697 | ||||||
| Total liabilities | 719,963 | 736,958 | |||||
| Total liabilities and shareholders’ equity | 1,208,485 | 1,173,103 | |||||
| INTERXION HOLDING NV | |||||||
| NOTES TO THE CONSOLIDATED BALANCE SHEET: BORROWINGS | |||||||
| (in €’000 ― except where stated otherwise) | |||||||
| (unaudited) | |||||||
| As at | |||||||
| 30 Sep | 31 Dec | ||||||
| 2015 | 2014 | ||||||
Borrowings net of cash and cash equivalents | |||||||
| Cash and cash equivalents (a) | 50,030 | 99,923 | |||||
| 6.00% Senior Secured Notes due 2020 (b) | 475,539 | 475,643 | |||||
| Mortgages | 30,187 | 31,487 | |||||
| Financial leases | 34,497 | 52,857 | |||||
| Other borrowings | 1,605 | 1,605 | |||||
| Borrowings excluding Revolving Facility deferred financing costs | 541,828 | 561,592 | |||||
| Revolving Facility deferred financing costs (c) | (779 | ) | (995 | ) | |||
| Total borrowings | 541,049 | 560,597 | |||||
| Borrowings net of cash and cash equivalents | 491,019 | 460,674 | |||||
(a) Cash and cash equivalents include €4.3 million as of 30 September 2015 and €7.1 million as of 31 December 2014, which is restricted and held as collateral to support the issuance of bank guarantees on behalf of a number of subsidiary companies.
(b) €475 million 6.00% Senior Secured Notes due 2020 include a premium on the additional issuance and are shown after deducting underwriting discounts and commissions, offering fees and expenses.
(c) Deferred financing costs of €0.8 million as of 30 September 2015 were incurred in connection with the €100 million revolving facility.
| INTERXION HOLDING NV | |||||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||
| (in €’000 ― except where stated otherwise) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| 30 Sep | 30 Sep | 30 Sep | 30 Sep | ||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||
| Net profit | 10,415 | 8,994 | 36,427 | 27,675 | |||||||||
| Depreciation, amortisation and impairments | 20,251 | 16,025 | 58,043 | 44,870 | |||||||||
| Provision for onerous lease contracts | (879 | ) | (859 | ) | (2,653 | ) | (3,313 | ) | |||||
| Share-based paymens | 1,664 | 1,472 | 5,694 | 4,246 | |||||||||
| Net finance expense | 6,407 | 6,986 | 20,938 | 19,875 | |||||||||
| Income tax expense | 4,737 | 3,855 | 15,368 | 11,992 | |||||||||
| 42,595 | 36,473 | 133,817 | 105,345 | ||||||||||
| Movements in trade receivables and other current assets | (216 | ) | (7,848 | ) | (9,581 | ) | (19,077 | ) | |||||
| Movements in trade payables and other liabilities | 584 | 5,012 | 7,067 | 8,607 | |||||||||
| Cash generated from operations | 42,963 | 33,637 | 131,303 | 94,875 | |||||||||
| Interest and fees paid (a) | (14,107 | ) | (11,711 | ) | (29,129 | ) | (23,772 | ) | |||||
| Interest received | 37 | 114 | 117 | 238 | |||||||||
| Income tax paid | (4,107 | ) | (1,950 | ) | (9,167 | ) | (4,151 | ) | |||||
| Net cash flows from / (used in) operating activities | 24,786 | 20,090 | 93,124 | 67,190 | |||||||||
| Cash flows from investing activities | |||||||||||||
| Purchase of property, plant and equipment | (33,399 | ) | (56,251 | ) | (145,628 | ) | (166,276 | ) | |||||
| Purchase of intangible assets | (1,871 | ) | (790 | ) | (5,047 | ) | (2,180 | ) | |||||
| Proceeds from sale of financial asset | 3,063 | – | 3,063 | – | |||||||||
| Redemption of short-term investments | – | – | 1,650 | – | |||||||||
| Net cash flows from / (used in) investing activities | (32,207 | ) | (57,041 | ) | (145,962 | ) | (168,456 | ) | |||||
| Cash flows from financing activities | |||||||||||||
| Proceeds from exercised options | 12 | 1,444 | 2,420 | 2,846 | |||||||||
| Proceeds from mortgages | – | – | – | 9,185 | |||||||||
| Repayment of mortgages | (320 | ) | (320 | ) | (1,360 | ) | (1,054 | ) | |||||
| Proceeds revolving facility | – | – | – | 30,000 | |||||||||
| Repayments revolving facility | – | – | – | (30,000 | ) | ||||||||
| Proceeds 6.00% Senior Secured Notes due 2020 | – | (504 | ) | – | 157,878 | ||||||||
| Interest received at issue of Additional Notes | – | – | – | 2,600 | |||||||||
| Interest paid related to interest received at issue of Additional Notes | – | (2,600 | ) | – | (2,600 | ) | |||||||
| Transaction costs related to Senior Secured Facility | – | (275 | ) | – | (646 | ) | |||||||
| Repayment of other borrowings | (31 | ) | 8 | (31 | ) | (15 | ) | ||||||
| Net cash flows from / (used in) financing activities | (339 | ) | (2,247 | ) | 1,029 | 168,194 | |||||||
| Effect of exchange rate changes on cash | 692 | 73 | 1,916 | 137 | |||||||||
| Net increase / (decrease) in cash and cash equivalents | (7,068 | ) | (39,125 | ) | (49,893 | ) | 67,065 | ||||||
| Cash and cash equivalents, beginning of period | 57,098 | 151,880 | 99,923 | 45,690 | |||||||||
| Cash and cash equivalents, end of period | 50,030 | 112,755 | 50,030 | 112,755 | |||||||||
(a) Interest paid is reported net of cash interest capitalized, which is reported as part of “Purchase of property, plant and equipment”.
| INTERXION HOLDING NV | ||||||||||||
| NOTES TO CONSOLIDATED INCOME STATEMENT: ADJUSTED NET PROFIT RECONCILIATION | ||||||||||||
| (in € millions ― except per share data and where stated otherwise) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| 30 Sep | 30 Sep | 30 Sep | 30 Sep | |||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| (€ in millions – except per share data) | ||||||||||||
| Net profit – as reported | 10.4 | 9.0 | 36.4 | 27.7 | ||||||||
| Add back | ||||||||||||
| + Refinancing charges | – | – | – | 0.6 | ||||||||
| + M&A transaction costs | 0.5 | – | 11.3 | – | ||||||||
| 0.5 | – | 11.3 | 0.6 | |||||||||
| Reverse | ||||||||||||
| – M&A transaction break fee income | – | – | (20.9 | ) | – | |||||||
| – Profit on sale of financial asset | (2.3 | ) | – | (2.3 | ) | – | ||||||
| – Increase / (decrease) in provision for onerous lease contracts | (0.1 | ) | – | (0.2 | ) | (0.8 | ) | |||||
| – Interest capitalised | (0.4 | ) | (1.3 | ) | (2.0 | ) | (3.0 | ) | ||||
| (2.8 | ) | (1.3 | ) | (25.4 | ) | (3.8 | ) | |||||
| Tax effect of above add backs & reversals | 0.6 | 0.3 | 3.5 | 0.8 | ||||||||
| Adjusted net profit | 8.7 | 8.0 | 25.8 | 25.4 | ||||||||
| Reported basic EPS: (€) | 0.15 | 0.13 | 0.52 | 0.40 | ||||||||
| Reported diluted EPS: (€) | 0.15 | 0.13 | 0.52 | 0.40 | ||||||||
| Adjusted basic EPS: (€) | 0.12 | 0.12 | 0.37 | 0.37 | ||||||||
| Adjusted diluted EPS: (€) | 0.12 | 0.11 | 0.37 | 0.36 | ||||||||
| INTERXION HOLDING NV | |||||||||
| Status of Announced Expansion Projects as at 4 November 2015 | |||||||||
| with Target Open Dates after 1 January 2015 | |||||||||
Equipped | |||||||||
CAPEX (a) (b) | Space (a) | ||||||||
| Market | Project | (€million) | (sqm) | Target Opening Dates | |||||
| Amsterdam | AMS 7: Phases 1 – 6 New Build | 115 | 7,600 | fully opened | |||||
| Amsterdam | AMS 8: Phases 1 – 2 New Build | 50 | 2,600 | 4Q 2016 | |||||
| Copenhagen | CPH2: Phase 1 New Build | 4 | 500 | 3Q 2016 | |||||
| Dublin | DUB3: Phases 1 – 2 New Build | 28 | 1,200 | 4Q 2016 | |||||
| Dusseldorf | DUS 1: Phase 3 Expansion | 3 | 400 | fully opened | |||||
| Dusseldorf | DUS 2: Phase 1 New Build | 13 | 600 | 1Q 2016 | |||||
| Frankfurt | FRA 10: Phases 1 – 4 New Build | 92 | 4,800 | 1Q 2016 – 4Q 2016 (c) | |||||
| Madrid | MAD 2: Phase 2 Expansion | 4 | 800 | fully opened | |||||
| Marseille | MRS 1: Phases 1 – 2 | 20 | 1,400 | fully opened (d) | |||||
| Stockholm | STO 4: New Build | 15 | 1,100 | fully opened | |||||
| Vienna | VIE 2: New Build | 42 | 2,800 | 4Q 2014 – 4Q 2015 (e) | |||||
| Total | € 386 | 23,800 | |||||||
(a) CAPEX and Equipped space are approximate and may change. Figures are rounded to nearest 100 sqm unless otherwise noted.
(b) CAPEX reflects the total spend for the projects listed at full power and capacity and the amounts shown in the table above may be invested over the duration of more than one fiscal year.
(c) Phases 1 and 2 (1,200 square metres each) are scheduled to become operational in 1Q 2016 and 2Q 2016, respectively; phases 3 & 4 (1,200 square metres each) are scheduled to become operational in 4Q 2016.
(d) Phase 1 (600 square metres) became operational in 4Q 2014. Phase 2 (800 square metres) became available in 3Q 2015.
(e) In 4Q 2014, 1,300 square metres became operational; in 1Q 2015, 600 square metres became operational; in 2Q 2015, 600 square metres became operational. In 4Q 2015, 300 square metres are scheduled to become operational.
View source version on businesswire.com:http://www.businesswire.com/news/home/20151104005178/en/
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