ATLANTA, March 05, 2018 (GLOBE NEWSWIRE) — Internap Corporation (INAP), a provider of high-performance data center services, including colocation, managed hosting, cloud and network services, in anticipation of its presentation at the Raymond James 39th Annual Institutional Investors Conference at 8:40 a.m. ET today, Monday, March 5, reaffirms guidance for 2017 and announces outlook for 2018.
Reaffirming Guidance for 2017
As previously reported, fourth quarter 2017 revenue of $70 million was up sequentially, coinciding with the rebuilding of our sales force, operations improvements, and business development. With fourth quarter revenue finalized, 2017 annual revenue reached $280 million, well within the tightened range of $277 million to $282 million, set at the Company’s third quarter 2017 report on November 2, 2017.
In addition, INAP’s 2017 Adjusted EBITDA is expected to be at the upper end of our increased range of $87 million to $92 million, updated at the Company’s third quarter 2017 report. This is significantly above the original guidance for Adjusted EBITDA of $84 million to $87 million, set at the fourth quarter 2016 earnings report on March 9, 2017.
Capital expenditures in 2017 are expected to be within the reduced range of $32 million to $37 million, which was adjusted down from approximately $42 million on March 9, 2017.
Outlook for 2018
Management projects that INAP’s total revenues for 2018 will be in the range of $320 million to $330 million, reflecting continued sales productivity, the acquisition of SingleHop which closed on February 28, 2018, offset by planned exits of certain non-core facilities.
Adjusted EBITDA is expected to increase significantly to the range of $105 million to $115 million, incorporating INAP’s growth initiatives, the acquisition of SingleHop and related synergies, and continued cost savings.
Capital expenditures are currently targeted to range between $40 million and $45 million with SingleHop included. As a result, Adjusted EBITDA less Capex is expected to be between $65 million and $70 million.
Peter D. Aquino, INAP’s President and CEO, stated, “We continue our momentum into 2018, with our salesforce rebuilt, improved profitability, and SingleHop. We are enhancing our customers’ experience by delivering a premier data center platform with value-added services in colocation, managed services, and high-performance IP. We expect to drive further top-line improvement and margin expansion throughout the year. I look forward to meeting with investors at the Raymond James Conference.”
A webcast of the conference presentation will be available on http://ir.inap.com/events-and-presentations.
Fourth Quarter 2017 Conference Call
As previously announced, INAP will report final results on its fourth quarter and year end 2017 earnings call on Thursday, March 8, 2018. At 8:30 a.m. ET the same day, senior management will host a conference call presentation to discuss the results.
The call can be accessed by dialing 877-334-0775. International callers should dial 631-291-4567. Listeners may connect to the simultaneous webcast, which will include accompanying presentation slides, on the Investor Relations section of the INAP website.
The online webcast will be archived in the investor relations section of the Company’s website. An audio-only telephonic replay will be accessible from Thursday, March 8, 2018 at 11:30 AM ET through Tuesday, March 13, 2018 at 855-859-2056 using replay code 1494399. International callers can listen to the archived event at 404-537-3406 with the same code.
Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA less CapEx are non-GAAP financial measures, which we define in an attachment to this press release entitled “Non-GAAP (Adjusted) Financial Measures.” A reconciliation between GAAP information and non-GAAP information related to Adjusted EBITDA is contained in the table entitled “Reconciliation of GAAP Net Loss Attributed to INAP Shareholders to Forward Adjusted EBITDA.” A reconciliation between GAAP information and non-GAAP information related to Adjusted EBITDA less CapEx is contained in the table entitled “Reconciliation of GAAP Net Cash Flows provided by Operating Activities to Forward Looking Adjusted EBITDA less CapEx.”
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