REDWOOD
CITY, Calif., April 27,
2022 /PRNewswire/ --
- Quarterly revenues increased 9% over the same quarter last year
to $1.7 billion, or 10% on a
normalized and constant currency basis, representing the company's
77th consecutive quarter of revenue growth
- More than 4,200 deals executed in the quarter across more than
3,100 customers
- Strong quarter for Equinix Metal® and Network Edge
digital services offerings
- Global platform expansion continued with 43 projects underway
across 29 metros in 20 countries, including new projects in the
Atlanta, Mumbai, Sydney, Tokyo
and Washington, D.C. metros
Equinix, Inc. (Nasdaq: EQIX), the world's digital
infrastructure companyTM, today reported results for the
quarter ended March 31, 2022. Equinix uses certain non-GAAP
financial measures, which are described further below and
reconciled to the most comparable GAAP financial measures after the
presentation of our GAAP financial statements. All per share
results are presented on a fully diluted basis.
First Quarter 2022 Results Summary
- Revenues
-
- $1.7 billion, a 2% increase over
the previous quarter
- Includes a negative $2 million
foreign currency impact when compared to prior guidance rates
- Operating Income
-
- $267 million, a 7% increase over
the previous quarter and an operating margin of 15%
- Adjusted EBITDA
-
- $800 million, a 46% adjusted
EBITDA margin
- Includes a negative $1 million
foreign currency impact when compared to prior guidance rates
- Includes $5 million of
integration costs
- Net Income and Net Income per Share attributable to
Equinix
-
- $147 million, a 20% increase over
the previous quarter, primarily due to strong operating
performance
- $1.62 per share, a 19% increase
over the previous quarter
- AFFO and AFFO per Share
-
- $653 million, a 16% increase over
the previous quarter, primarily due to strong operating performance
and seasonally lower recurring capital expenditures
- $7.16 per share, a 15% increase
over the previous quarter
- Includes $5 million of
integration costs
2022 Annual Guidance Summary
- Revenues
-
- $7.291 - $7.341 billion, an increase of 10 - 11% over the
previous year, or a normalized and constant currency increase of
~10%
- An increase of $89 million
compared to prior guidance, including a negative $3 million foreign currency impact when compared
to prior guidance rates
- Adjusted EBITDA
-
- $3.344 - $3.374 billion, a 46% adjusted EBITDA margin
- An increase of $42 million
excluding integration costs compared to prior guidance, including a
positive $2 million foreign currency
benefit when compared to prior guidance rates
- Assumes $25 million of
integration costs
- AFFO and AFFO per Share
-
- $2.650 - $2.680 billion, an increase of 8 - 9% over the
previous year, or a normalized and constant currency increase of 8
- 10%
- A net increase of $9 million
excluding integration costs compared to prior guidance with
$22 million derived from strong
operating performance and a net $9
million attributed to the MainOne Cable Company Ltd.
("MainOne") acquisition, partially offset by $22 million of incremental debt financing
costs
- $28.93 - $29.26 per share, an increase of 7 - 8% over the
previous year on both an as-reported and a normalized and constant
currency basis
- Assumes $25 million of
integration costs
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 without unreasonable effort. The impact of
such adjustments could be significant.
Equinix Quote
Charles Meyers, President and
CEO, Equinix:
"We had a great start to 2022. While there are a number of
macroeconomic factors we continue to proactively manage, the
business continues to perform exceptionally well. Underlying demand
for digital infrastructure continues to rise as enterprises in
diverse sectors across the globe prioritize digital transformation
and service providers continue to innovate, distribute and scale
their infrastructure globally in response to that demand."
Business Highlights
- Equinix continued to expand its global platform, which
currently includes more than 240 data centers across 69 metros in
30 countries. As of Q1, 89% of revenues are generated from
customers deployed in more than one metro, demonstrating the
strategic value of Equinix's global footprint. Specific initiatives
included:
-
- In March, Equinix announced its planned expansion into
Chile through the intended
acquisition of multiple data centers from Empresa Nacional De
Telecomunicaciones S.A. ("Entel"), a leading Chilean
telecommunications provider. The transaction is expected to
solidify Equinix's leadership as the top regional provider of
digital infrastructure.
- In April, Equinix formally entered the African continent with
the acquisition of MainOne, a data center and connectivity
solutions provider in West Africa,
with operations in Nigeria,
Ghana and Ivory Coast. This acquisition represents the
first step in Equinix's long-term strategy to extend its global
carrier-neutral digital infrastructure platform to Africa.
- Equinix continued the expansion of its xScaleTM
program with the completion of its Australian joint venture with
PGIM in March, which is expected to provide more than 55 megawatts
of capacity in the Sydney market
when fully built out. In April, Equinix completed its South Korean
joint venture with GIC, which is expected to provide more than 45
megawatts of capacity to the Seoul
market.
- The Equinix digital services portfolio had a strong quarter
with the most net customer adds for Equinix Metal since its launch.
Similarly, Equinix FabricTM added the most quarterly
virtual connections ever. At the same time, customers continued to
consume Equinix's data center and colocation services with the
addition of an incremental 8,900 total interconnections in the
quarter, bringing the total interconnections on Equinix's platform
to 428,200.
- Equinix continued to make advances in meeting its environmental
sustainability commitments, including its goal of climate-neutral
operations by 2030:
-
- In January, Equinix announced the opening of its first
Co-Innovation Facility (CIF), located in its DC15 International
Business ExchangeTM (IBX®) data center at the
Equinix Ashburn Campus in the Washington,
D.C. area. A component of Equinix's Data Center of the
Future initiative, the CIF is a new capability that enables
partners to work with Equinix on trialing and developing
sustainable data center innovations including fuel cell and liquid
cooling technologies.
- In April, Equinix completed its fourth green bond offering to
help advance its commitment to sustainability leadership. With the
latest offering, Equinix has issued approximately $4.9 billion of green bonds, currently making it
the fourth largest global issuer in the investment grade green bond
market.
- Equinix continued to develop IBX data centers with sustainable
features, including a heat recovery technology project at the PA10
IBX in Paris to recover energy
from customer equipment and transfer it to the urban heating
network. Equinix also recently opened its MU4 IBX in Munich, which has a green façade and partially
planted roof that acts as additional natural insulation and
cooling, and allows the building to blend into the cityscape.
- Key leadership appointments included the internal promotion of
three Equinix leaders: Jon Lin to
EVP & General Manager, Data Center Services; Nicole Collins to Chief Transformation Officer;
and Tara Risser to President,
Americas.
Business Outlook
For the second quarter of 2022, the Company expects revenues to
range between $1.809 and $1.829 billion, a 4 - 5% increase over the prior
quarter, or 3 - 4% on a normalized and constant currency basis.
This guidance includes a positive $8
million foreign currency benefit when compared to the
average FX rates in Q1 2022. Adjusted EBITDA is expected to range
between $828 and $848 million. Adjusted EBITDA includes a positive
$4 million foreign currency benefit
when compared to the average FX rates in Q1 2022 and $7 million of integration costs from
acquisitions. Recurring capital expenditures are expected to range
between $33 and $43 million.
For the full year of 2022, total revenues are expected to range
between $7.291 and $7.341 billion, a 10 - 11% increase over the
previous year, or a normalized and constant currency increase of
approximately 10%. This updated increase in full-year guidance of
$89 million includes $42 million of better-than-expected business
performance, $50 million from the
MainOne acquisition and a negative $3
million foreign currency impact when compared to the prior
guidance rates. Adjusted EBITDA is expected to range between
$3.344 and $3.374 billion, an adjusted EBITDA margin of 46%.
This updated increase in full-year guidance of $42 million, excluding integration costs,
includes $20 million of
better-than-expected business performance, $20 million from the MainOne acquisition and a
positive $2 million foreign currency
benefit when compared to the prior guidance rates. For the year,
the Company now expects to incur $25
million in integration costs related to acquisitions. AFFO
is expected to range between $2.650
and $2.680 billion, an increase of 8
- 9% over the previous year, or a normalized and constant currency
increase of 8 - 10%. This updated AFFO guidance of $9 million, excluding integration costs, includes
$22 million of better-than-expected
business performance and $9 million
from the MainOne acquisition, partially offset by $22 million of incremental debt financing costs.
AFFO per share is expected to range between $28.93 and $29.26,
an increase of 7- 8% over the previous year, on both an as-reported
and normalized and constant currency basis. Total capital
expenditures are expected to range between $2.265 and $2.515
billion. Non-recurring capital expenditures, including
xScale-related capital expenditures, are expected to range between
$2.097 and $2.337 billion, and recurring capital
expenditures are expected to range between $168 and $178
million. xScale-related on-balance sheet capital
expenditures are expected to range between $37 and $87
million, which we anticipate will be reimbursed to Equinix
from both the current and future xScale JVs.
The U.S. dollar exchange rates used for 2022 guidance, taking
into consideration the impact of our current foreign currency
hedges, have been updated to $1.15 to
the Euro, $1.32 to the Pound,
S$1.36 to the U.S. dollar, ¥122 to
the U.S. dollar, and R$4.74 to the
U.S. dollar. The Q1 2022 global revenue breakdown by currency for
the Euro, British Pound, Singapore Dollar, Japanese Yen and
Brazilian Real is 19%, 9%, 8%, 6% and 3%, respectively.
The adjusted EBITDA guidance is based on the revenue guidance
less our expectations of cash cost of revenues and cash operating
expenses. The AFFO guidance is based on the adjusted EBITDA
guidance less our expectations of net interest expense, an
installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred
financing costs and debt discounts and premiums, income tax
expense, an income tax expense adjustment, recurring capital
expenditures, other income (expense), (gains) losses on disposition
of real estate property, and adjustments for unconsolidated joint
ventures' and non-controlling interests' share of these items.
Q1 2022 Results Conference Call and Replay
Information
Equinix will discuss its quarterly results for the period ended
March 31, 2022, along with its future outlook, in its
quarterly conference call on Wednesday, April 27, 2022, at
5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the
call will be available on the company's Investor Relations website
at www.equinix.com/investors. To hear the conference call live,
please dial 1-517-308-9482 (domestic and international) and
reference the passcode EQIX.
A replay of the call will be available one hour after the call
through Wednesday, July 27, 2022, by
dialing 1-866-357-4208 and referencing the passcode 2022. In
addition, the webcast will be available at
www.equinix.com/investors (no password required).
Investor Presentation and Supplemental Financial
Information
Equinix has made available on its website a presentation
designed to accompany the discussion of Equinix's results and
future outlook, along with certain supplemental financial
information and other data. Interested parties may access this
information through the Equinix Investor Relations website at
www.equinix.com/investors.
Additional Resources
- Equinix Investor Relations Resources
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure
company, enabling digital leaders to harness a trusted platform to
bring together and interconnect the foundational infrastructure
that powers their success. Equinix enables today's businesses to
access all the right places, partners and possibilities they need
to accelerate advantage. With Equinix, they can scale with agility,
speed the launch of digital services, deliver world-class
experiences and multiply their value.
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 to evaluate its
operations.
Equinix provides normalized and constant currency growth rates,
which are calculated to adjust for acquisitions, dispositions,
integration costs, changes in accounting principles and foreign
currency.
Equinix presents adjusted EBITDA, which is a non-GAAP financial
measure. Adjusted EBITDA represents income from operations
excluding depreciation, amortization, accretion, stock-based
compensation expense, restructuring charges, impairment charges,
transaction costs and gain or loss on asset sales.
In presenting 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, Equinix excludes certain items that it
believes are not good indicators of Equinix'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,
impairment charges, transaction costs and gain or loss on asset
sales. Equinix excludes these items in order for its lenders,
investors and the industry analysts who review and report on
Equinix to better evaluate Equinix'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 a data center, and do
not reflect its current or future cash spending levels to support
its business. Its data centers are long-lived assets, and have an
economic life greater than 10 years. The construction costs of a
data center do not recur with respect to such data center, although
Equinix may incur initial construction costs in future periods with
respect to additional data centers, and future capital expenditures
remain minor relative to the initial investment. This is a trend it
expects to continue. In addition, depreciation is also based on the
estimated useful lives of the data centers. These estimates could
vary from actual performance of the asset, are based on historic
costs incurred to build out our data 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 also excludes amortization expense related to acquired
intangible assets. Amortization expense is significantly affected
by the timing and magnitude of acquisitions, and these charges may
vary in amount from period to period. We exclude amortization
expense to facilitate a more meaningful evaluation of our current
operating performance and comparisons to our prior periods. 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 also
believes are not meaningful in evaluating Equinix's current
operations. Equinix excludes stock-based compensation expense, as
it can vary significantly from period to period based on share
price and the timing, size and nature of equity awards. As such,
Equinix and many investors and analysts exclude stock-based
compensation expense to compare its operating results with those of
other companies. Equinix excludes restructuring charges from its
non-GAAP financial measures. The restructuring charges relate to
Equinix's decision to exit leases for excess space adjacent to
several of its IBX data centers, which it did not intend to build
out, or its decision to reverse such restructuring charges. Equinix
also excludes impairment charges generally related to certain
long-lived assets. The impairment charges are related to expense
recognized whenever events or changes in circumstances indicate
that the carrying amount of assets are not recoverable. Equinix
also excludes gain or loss on asset sales as it represents profit
or loss that is not meaningful in evaluating the current or future
operating performance. Finally, Equinix excludes transaction costs
from its non-GAAP financial measures to allow more comparable
comparisons of the financial results to the historical operations.
The transaction costs relate to costs Equinix incurs in connection
with business combinations and formation of joint ventures,
including advisory, legal, accounting, valuation and other
professional or consulting fees. Such charges generally are not
relevant to assessing the long-term performance of Equinix. In
addition, the frequency and amount of such charges vary
significantly based on the size and timing of the transactions.
Management believes items such as restructuring charges, impairment
charges, transaction costs and gain or loss on asset sales are
non-core transactions; however, these types of costs may occur in
future periods.
Equinix also presents funds from operations ("FFO") and adjusted
funds from operations ("AFFO"), both commonly used in the REIT
industry, as supplemental performance measures. Additionally,
Equinix presents AFFO per share, which is also commonly used in the
REIT industry. AFFO per share offers investors and industry
analysts a perspective of Equinix's underlying operating
performance when compared to other REIT companies. FFO is
calculated in accordance with the definition established by the
National Association of Real Estate Investment Trusts ("NAREIT").
FFO represents net income or loss, excluding gain or loss from the
disposition of real estate assets, depreciation and amortization on
real estate assets and adjustments for unconsolidated joint
ventures' and non-controlling interests' share of these items. AFFO
represents FFO, excluding depreciation and amortization expense on
non-real estate assets, accretion, stock-based compensation,
restructuring charges, impairment charges, transaction costs, an
installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred
financing costs and debt discounts and premiums, gain or loss on
debt extinguishment, an income tax expense adjustment, recurring
capital expenditures, net income or loss from discontinued
operations, net of tax and adjustments from FFO to AFFO for
unconsolidated joint ventures' and non-controlling interests' share
of these items. Equinix excludes depreciation expense, amortization
expense, accretion, stock-based compensation, restructuring
charges, impairment charges and transaction costs for the same
reasons that they are excluded from the other non-GAAP financial
measures mentioned above.
Equinix includes an adjustment for revenues from installation
fees, since installation fees are deferred and recognized ratably
over the period of contract term, although the fees are generally
paid in a lump sum upon installation. Equinix includes an
adjustment for straight-line rent expense on its operating leases,
since the total minimum lease payments are recognized ratably over
the lease term, although the lease payments generally increase over
the lease term. Equinix also includes an adjustment to contract
costs incurred to obtain contracts, since contract costs are
capitalized and amortized over the estimated period of benefit on a
straight-line basis, although costs of obtaining contracts are
generally incurred and paid during the period of obtaining the
contracts. The adjustments for installation revenues, straight-line
rent expense and contract costs are intended to isolate the cash
activity included within the straight-lined or amortized results in
the consolidated statement of operations. Equinix excludes the
amortization of deferred financing costs and debt discounts and
premiums as these expenses relate to the initial costs incurred in
connection with its debt financings that have no current or future
cash obligations. Equinix excludes gain or loss on debt
extinguishment since it represents a cost that is not a good
indicator of Equinix's current or future operating performance.
Equinix includes an income tax expense adjustment, which represents
the non-cash tax impact due to changes in valuation allowances and
uncertain tax positions that do not relate to the current period's
operations. Equinix excludes recurring capital expenditures, which
represent expenditures to extend the useful life of its IBX and
xScale data centers or other assets that are required to support
current revenues. Equinix also excludes net income or loss from
discontinued operations, net of tax, which represents results that
are not a good indicator of our current or future operating
performance.
Equinix presents constant currency results of operations, which
is a non-GAAP financial measure and is not meant to be considered
in isolation or as an alternative to GAAP results of operations.
However, Equinix has presented this non-GAAP financial measure to
provide investors with an additional tool to evaluate its operating
results without the impact of fluctuations in foreign currency
exchange rates, thereby facilitating period-to-period comparisons
of Equinix's business performance. To present this information,
Equinix's current and comparative prior period revenues and certain
operating expenses from entities with functional currencies other
than the U.S. dollar are converted into U.S. dollars at a
consistent exchange rate for purposes of each result being
compared.
Non-GAAP financial measures are not a substitute for financial
information prepared in accordance with GAAP. Non-GAAP financial
measures should not be considered in isolation, but should be
considered together with the most directly comparable GAAP
financial measures and the reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP financial measures.
Equinix presents such non-GAAP financial measures to provide
investors with an additional tool to evaluate its operating results
in a manner that focuses on what management believes to be its
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 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 those of other companies.
Investors should, therefore, exercise caution when comparing
non-GAAP financial measures used by us to similarly titled non-GAAP
financial measures of other companies. Equinix does not provide
forward-looking guidance for certain financial data, such as
depreciation, amortization, accretion, stock-based compensation,
net income or 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 without unreasonable
effort. The impact of such adjustments could be significant.
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, risks to our business and operating results
related to the ongoing COVID-19 pandemic; the current inflationary
environment; increased costs to procure power and the general
volatility in the global energy market; the challenges of
acquiring, operating and constructing IBX and xScale data centers
and developing, deploying and delivering Equinix products and
solutions; unanticipated costs or difficulties relating to the
integration of companies we have acquired or will acquire into
Equinix; a failure to receive significant revenues 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; risks related to our taxation as a REIT and
other risks described from time to time in Equinix filings with the
Securities and Exchange Commission. In particular, see recent and
upcoming Equinix 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,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data)
(unaudited)
|
|
|
Three Months Ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Recurring
revenues
|
$
1,642,324
|
|
$
1,603,474
|
|
$
1,510,933
|
Non-recurring
revenues
|
92,123
|
|
102,904
|
|
85,131
|
Revenues
|
1,734,447
|
|
1,706,378
|
|
1,596,064
|
Cost of
revenues
|
915,875
|
|
910,435
|
|
811,217
|
Gross
profit
|
818,572
|
|
795,943
|
|
784,847
|
Operating
expenses:
|
|
|
|
|
|
Sales and marketing
|
192,511
|
|
189,798
|
|
182,827
|
General and administrative
|
352,687
|
|
343,711
|
|
301,456
|
Transaction costs
|
4,240
|
|
9,405
|
|
1,182
|
Loss on asset sales
|
1,818
|
|
3,304
|
|
1,720
|
Total operating
expenses
|
551,256
|
|
546,218
|
|
487,185
|
Income from operations
|
267,316
|
|
249,725
|
|
297,662
|
Interest and other
income (expense):
|
|
|
|
|
Interest income
|
2,106
|
|
1,130
|
|
729
|
Interest expense
|
(79,965)
|
|
(80,227)
|
|
(89,681)
|
Other expense
|
(9,549)
|
|
(5,802)
|
|
(6,950)
|
Gain (loss) on debt extinguishment
|
529
|
|
214
|
|
(13,058)
|
Total interest and other,
net
|
(86,879)
|
|
(84,685)
|
|
(108,960)
|
Income before income taxes
|
180,437
|
|
165,040
|
|
188,702
|
Income tax expense
|
(32,744)
|
|
(41,899)
|
|
(32,628)
|
Net income
|
147,693
|
|
123,141
|
|
156,074
|
Net
(income) loss attributable to non-controlling interests
|
(240)
|
|
133
|
|
288
|
Net income attributable to
Equinix
|
$ 147,453
|
|
$ 123,274
|
|
$ 156,362
|
Net income per share attributable to
Equinix:
|
Basic net income per share
|
$
1.62
|
|
$
1.37
|
|
$
1.75
|
Diluted net income per share
|
$
1.62
|
|
$
1.36
|
|
$
1.74
|
Shares used in computing basic net income per
share
|
90,771
|
|
90,240
|
|
89,330
|
Shares used in computing diluted net income per
share
|
91,162
|
|
90,752
|
|
89,842
|
EQUINIX,
INC.
Condensed
Consolidated Statements of Comprehensive Income
(in
thousands)
(unaudited)
|
|
|
Three Months Ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Net income
|
$ 147,693
|
|
$ 123,141
|
|
$ 156,074
|
Other comprehensive
income (loss), net of tax:
|
|
|
Foreign currency translation adjustment ("CTA")
loss
|
(122,534)
|
|
(115,278)
|
|
(295,146)
|
Net
investment hedge CTA gain
|
91,358
|
|
62,763
|
|
170,175
|
Unrealized gain on cash flow hedges
|
64,037
|
|
8,514
|
|
29,478
|
Net
actuarial gain (loss) on defined benefit plans
|
(21)
|
|
16
|
|
12
|
Total other comprehensive
income (loss), net of tax
|
32,840
|
|
(43,985)
|
|
(95,481)
|
Comprehensive income, net of
tax
|
180,533
|
|
79,156
|
|
60,593
|
Net
(income) loss attributable to non-controlling interests
|
(240)
|
|
133
|
|
288
|
Other comprehensive (income) attributable to non-controlling
interests
|
(3)
|
|
(5)
|
|
1
|
Comprehensive income attributable to
Equinix
|
$ 180,290
|
|
$
79,284
|
|
$
60,882
|
EQUINIX,
INC.
Condensed
Consolidated Balance Sheets
(in
thousands)
(unaudited)
|
|
|
March 31, 2022
|
|
December 31, 2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
1,695,305
|
|
$
1,536,358
|
Accounts receivable,
net
|
780,404
|
|
681,809
|
Other current
assets
|
471,894
|
|
462,739
|
Assets held for
sale
|
115,193
|
|
276,195
|
Total current assets
|
3,062,796
|
|
2,957,101
|
Property, plant and
equipment, net
|
15,512,991
|
|
15,445,775
|
Operating lease
right-of-use assets
|
1,234,257
|
|
1,282,418
|
Goodwill
|
5,316,079
|
|
5,372,071
|
Intangible assets,
net
|
1,877,541
|
|
1,935,267
|
Other assets
|
1,019,569
|
|
926,066
|
Total assets
|
$
28,023,233
|
|
$
27,918,698
|
Liabilities and Stockholders'
Equity
|
|
|
|
Accounts payable and
accrued expenses
|
$
811,157
|
|
$
879,144
|
Accrued property, plant
and equipment
|
236,608
|
|
187,334
|
Current portion of
operating lease liabilities
|
146,239
|
|
144,029
|
Current portion of
finance lease liabilities
|
148,411
|
|
147,841
|
Current portion of
mortgage and loans payable
|
31,993
|
|
33,087
|
Other current
liabilities
|
232,606
|
|
214,519
|
Total current liabilities
|
1,607,014
|
|
1,605,954
|
Operating lease
liabilities, less current portion
|
1,060,078
|
|
1,107,180
|
Finance lease
liabilities, less current portion
|
2,027,228
|
|
1,989,668
|
Mortgage and loans
payable, less current portion
|
691,523
|
|
586,577
|
Senior notes, less
current portion
|
10,953,832
|
|
10,984,144
|
Other
liabilities
|
740,748
|
|
763,411
|
Total liabilities
|
17,080,423
|
|
17,036,934
|
Common stock
|
91
|
|
91
|
Additional paid-in
capital
|
16,145,424
|
|
15,984,597
|
Treasury
stock
|
(107,949)
|
|
(112,208)
|
Accumulated
dividends
|
(6,449,713)
|
|
(6,165,140)
|
Accumulated other
comprehensive loss
|
(1,052,914)
|
|
(1,085,751)
|
Retained
earnings
|
2,407,946
|
|
2,260,493
|
Total Equinix stockholders' equity
|
10,942,885
|
|
10,882,082
|
Non-controlling
interests
|
(75)
|
|
(318)
|
Total stockholders' equity
|
10,942,810
|
|
10,881,764
|
Total liabilities and stockholders' equity
|
$
28,023,233
|
|
$
27,918,698
|
|
|
|
|
Ending headcount by
geographic region is as follows:
|
|
|
|
Americas headcount
|
5,110
|
|
5,056
|
EMEA headcount
|
3,684
|
|
3,611
|
Asia-Pacific headcount
|
2,330
|
|
2,277
|
Total headcount
|
11,124
|
|
10,944
|
EQUINIX,
INC.
Summary of Debt
Principal Outstanding
(in
thousands)
(unaudited)
|
|
|
March 31, 2022
|
|
December 31, 2021
|
|
|
|
|
Finance lease
liabilities
|
$
2,175,639
|
|
$
2,137,509
|
|
|
|
|
Term loans
|
655,672
|
|
549,343
|
Mortgage payable and
other loans payable
|
67,844
|
|
70,321
|
Minus: mortgage
premium, debt discount and issuance costs, net
|
(486)
|
|
(1,276)
|
Total mortgage and loans payable principal
|
723,030
|
|
618,388
|
|
|
|
|
Senior notes
|
10,953,832
|
|
10,984,144
|
Plus: debt discount and
issuance costs
|
113,758
|
|
117,986
|
Total senior notes principal
|
11,067,590
|
|
11,102,130
|
|
|
|
|
Total debt principal
outstanding
|
$
13,966,259
|
|
$
13,858,027
|
EQUINIX,
INC.
Condensed
Consolidated Statements of Cash Flows
(in
thousands)
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
Net income
|
$
147,693
|
|
$
123,141
|
|
$
156,074
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
Depreciation, amortization and accretion
|
436,386
|
|
428,764
|
|
394,318
|
|
Stock-based compensation
|
89,952
|
|
96,379
|
|
78,350
|
|
Amortization of debt issuance costs and debt discounts and
premiums
|
4,204
|
|
4,375
|
|
3,940
|
|
(Gain) loss on debt extinguishment
|
(529)
|
|
(214)
|
|
13,058
|
|
Loss on asset sales
|
1,818
|
|
3,304
|
|
1,720
|
|
Other items
|
6,050
|
|
6,089
|
|
11,182
|
|
Changes in operating assets and liabilities:
|
|
Accounts receivable
|
(100,727)
|
|
109,440
|
|
(17,620)
|
|
Income taxes, net
|
13,881
|
|
27,598
|
|
(10,274)
|
|
Accounts payable and accrued expenses
|
(75,980)
|
|
54,628
|
|
(76,362)
|
|
Operating lease right-of-use assets
|
35,400
|
|
37,862
|
|
40,924
|
|
Operating lease liabilities
|
(31,740)
|
|
(39,782)
|
|
(36,563)
|
|
Other assets and liabilities
|
54,715
|
|
40,521
|
|
(167,589)
|
Net cash provided by operating
activities
|
581,123
|
|
892,105
|
|
391,158
|
Cash flows from
investing activities:
|
|
Purchases, sales and
maturities of investments, net
|
(38,558)
|
|
(30,394)
|
|
(18,349)
|
|
Real estate
acquisitions
|
(3,074)
|
|
(6,988)
|
|
(53,737)
|
|
Purchases of other
property, plant and equipment
|
(412,518)
|
|
(817,405)
|
|
(563,598)
|
|
Proceeds from asset
sales
|
195,391
|
|
34,091
|
|
—
|
Net cash used in investing
activities
|
(258,759)
|
|
(820,696)
|
|
(635,684)
|
Cash flows from
financing activities:
|
|
Proceeds from employee
equity awards
|
43,876
|
|
—
|
|
40,034
|
|
Payment of dividend
distributions
|
(289,669)
|
|
(259,455)
|
|
(263,039)
|
|
Proceeds from public
offering of common stock, net of offering costs
|
—
|
|
398,271
|
|
—
|
|
Proceeds from mortgage
and loans payable
|
676,850
|
|
—
|
|
—
|
|
Proceeds from senior
notes, net of debt discounts
|
—
|
|
—
|
|
1,290,752
|
|
Repayment of finance
lease liabilities
|
(40,773)
|
|
(35,410)
|
|
(32,584)
|
|
Repayment of mortgage
and loans payable
|
(551,833)
|
|
(10,584)
|
|
(20,186)
|
|
Repayment of senior
notes
|
—
|
|
—
|
|
(590,650)
|
|
Debt extinguishment
costs
|
—
|
|
—
|
|
(8,521)
|
|
Debt issuance
costs
|
(7,366)
|
|
—
|
|
(3,152)
|
Net cash provided by (used in) financing
activities
|
(168,915)
|
|
92,822
|
|
412,654
|
Effect of foreign
currency exchange rates on cash, cash equivalents and restricted
cash
|
4,593
|
|
(6,335)
|
|
(22,019)
|
Net increase in cash,
cash equivalents and restricted cash
|
158,042
|
|
157,896
|
|
146,109
|
Cash, cash equivalents
and restricted cash at beginning of period
|
1,549,454
|
|
1,391,558
|
|
1,625,695
|
Cash, cash equivalents and restricted cash at end of
period
|
$
1,707,496
|
|
$
1,549,454
|
|
$
1,771,804
|
Supplemental cash flow
information:
|
Cash paid for taxes
|
$ 20,150
|
|
$ 16,019
|
|
$ 49,970
|
Cash paid for interest
|
$
104,051
|
|
$
110,282
|
|
$
101,055
|
|
|
|
|
|
|
|
Free cash flow (negative free cash flow)
(1)
|
$ 360,922
|
|
$ 101,803
|
|
$
(226,177)
|
|
|
|
|
|
|
|
Adjusted free cash flow (negative adjusted free cash
flow) (2)
|
$ 363,996
|
|
$ 108,791
|
|
$
(172,440)
|
|
|
|
|
|
|
|
(1)
|
We define free cash
flow (negative free cash flow) as net cash provided by operating
activities plus net cash
provided by (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
|
$
581,123
|
|
$
892,105
|
|
$
391,158
|
|
Net cash used in
investing activities as presented above
|
(258,759)
|
|
(820,696)
|
|
(635,684)
|
|
Purchases, sales and
maturities of investments, net
|
38,558
|
|
30,394
|
|
18,349
|
|
Free cash flow (negative free cash flow)
|
$
360,922
|
|
$
101,803
|
|
$
(226,177)
|
|
|
|
|
|
|
|
(2)
|
We define adjusted free
cash flow (negative adjusted free cash flow) as free cash flow
(negative free cash flow)
as defined above, excluding any real estate and business
acquisitions, net of cash and restricted cash acquired
as presented below:
|
|
Free cash flow
(negative free cash flow) as defined above
|
$
360,922
|
|
$
101,803
|
|
$
(226,177)
|
|
Less real estate
acquisitions
|
3,074
|
|
6,988
|
|
53,737
|
|
Adjusted free cash flow (negative adjusted free cash
flow)
|
$
363,996
|
|
$
108,791
|
|
$
(172,440)
|
EQUINIX,
INC.
Non-GAAP Measures
and Other Supplemental Data
(in
thousands)
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
Recurring
revenues
|
$
1,642,324
|
|
$
1,603,474
|
|
$
1,510,933
|
|
Non-recurring
revenues
|
92,123
|
|
102,904
|
|
85,131
|
|
Revenues (1)
|
1,734,447
|
|
1,706,378
|
|
1,596,064
|
|
|
|
|
|
|
|
|
Cash cost of revenues
(2)
|
583,703
|
|
577,991
|
|
510,810
|
|
Cash gross profit
(3)
|
1,150,744
|
|
1,128,387
|
|
1,085,254
|
|
|
|
|
|
|
|
|
Cash operating expenses
(4)(7):
|
|
|
|
|
|
Cash sales and marketing expenses (5)
|
124,706
|
|
121,637
|
|
113,053
|
|
Cash general and administrative expenses
(6)
|
226,326
|
|
219,173
|
|
198,969
|
|
Total cash operating expenses
(4)(7)
|
351,032
|
|
340,810
|
|
312,022
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (8)
|
$ 799,712
|
|
$ 787,577
|
|
$ 773,232
|
|
|
|
|
|
|
|
|
Cash gross margins
(9)
|
66
%
|
|
66
%
|
|
68
%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margins(10)
|
46
%
|
|
46
%
|
|
48
%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA flow-through rate
(11)
|
43
%
|
|
4 %
|
|
194
%
|
|
|
|
|
|
|
|
|
FFO (12)
|
$ 432,644
|
|
$ 406,880
|
|
$ 417,263
|
|
|
|
|
|
|
|
|
AFFO (13)(14)
|
$ 652,632
|
|
$ 564,194
|
|
$ 626,828
|
|
|
|
|
|
|
|
|
Basic FFO per share
(15)
|
$
4.77
|
|
$
4.51
|
|
$
4.67
|
|
|
|
|
|
|
|
|
Diluted FFO per share
(15)
|
$
4.75
|
|
$
4.48
|
|
$
4.64
|
|
|
|
|
|
|
|
|
Basic AFFO per share
(15)
|
$
7.19
|
|
$
6.25
|
|
$
7.02
|
|
|
|
|
|
|
|
|
Diluted AFFO per share
(15)
|
$
7.16
|
|
$
6.22
|
|
$
6.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The geographic split of
our revenues on a services basis is presented below:
|
|
|
|
|
|
|
|
|
Americas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$ 522,171
|
|
$ 512,424
|
|
$ 487,459
|
|
Interconnection
|
181,103
|
|
177,661
|
|
164,887
|
|
Managed
infrastructure
|
49,222
|
|
46,045
|
|
38,485
|
|
Other
|
5,134
|
|
5,184
|
|
2,038
|
|
Recurring revenues
|
757,630
|
|
741,314
|
|
692,869
|
|
Non-recurring revenues
|
42,791
|
|
40,801
|
|
33,071
|
|
Revenues
|
$ 800,421
|
|
$ 782,115
|
|
$ 725,940
|
|
|
|
|
|
|
|
|
EMEA Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$ 414,569
|
|
$ 410,457
|
|
$ 388,275
|
|
Interconnection
|
68,140
|
|
66,821
|
|
61,650
|
|
Managed
infrastructure
|
30,990
|
|
30,205
|
|
32,111
|
|
Other
|
6,414
|
|
5,259
|
|
5,046
|
|
Recurring revenues
|
520,113
|
|
512,742
|
|
487,082
|
|
Non-recurring revenues
|
30,367
|
|
40,601
|
|
31,635
|
|
Revenues
|
$ 550,480
|
|
$ 553,343
|
|
$ 518,717
|
|
|
|
|
|
|
|
|
Asia-Pacific Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$ 282,615
|
|
$ 268,908
|
|
$ 254,558
|
|
Interconnection
|
59,987
|
|
58,418
|
|
53,182
|
|
Managed
infrastructure
|
20,642
|
|
20,928
|
|
22,749
|
|
Other
|
1,337
|
|
1,164
|
|
493
|
|
Recurring revenues
|
364,581
|
|
349,418
|
|
330,982
|
|
Non-recurring revenues
|
18,965
|
|
21,502
|
|
20,425
|
|
Revenues
|
$ 383,546
|
|
$ 370,920
|
|
$ 351,407
|
|
|
|
|
|
|
|
|
Worldwide Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
1,219,355
|
|
$
1,191,789
|
|
$
1,130,292
|
|
Interconnection
|
309,230
|
|
302,900
|
|
279,719
|
|
Managed
infrastructure
|
100,854
|
|
97,178
|
|
93,345
|
|
Other
|
12,885
|
|
11,607
|
|
7,577
|
|
Recurring revenues
|
1,642,324
|
|
1,603,474
|
|
1,510,933
|
|
Non-recurring revenues
|
92,123
|
|
102,904
|
|
85,131
|
|
Revenues
|
$
1,734,447
|
|
$
1,706,378
|
|
$
1,596,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We define cash cost
of revenues as cost of revenues less depreciation, amortization,
accretion and stock-based compensation as presented
below:
|
|
|
Cost of
revenues
|
$ 915,875
|
|
$ 910,435
|
|
$ 811,217
|
|
Depreciation,
amortization and accretion expense
|
(321,729)
|
|
(322,194)
|
|
(291,940)
|
|
Stock-based
compensation expense
|
(10,443)
|
|
(10,250)
|
|
(8,467)
|
|
Cash cost of revenues
|
$ 583,703
|
|
$ 577,991
|
|
$ 510,810
|
|
|
|
|
|
|
|
|
The geographic split of
our cash cost of revenues is presented below:
|
|
|
|
|
|
|
|
|
Americas cash cost of
revenues
|
$ 239,403
|
|
$ 244,245
|
|
$ 193,460
|
|
EMEA cash cost of
revenues
|
202,848
|
|
208,569
|
|
199,183
|
|
Asia-Pacific cash cost
of revenues
|
141,452
|
|
125,177
|
|
118,167
|
|
Cash cost of revenues
|
$ 583,703
|
|
$ 577,991
|
|
$ 510,810
|
|
(3)
|
We define cash gross
profit as revenues less cash cost of revenues (as defined
above).
|
|
|
|
|
|
|
|
(4)
|
We define cash
operating expense as selling, general, and administrative expense
less depreciation, amortization, and stock-based compensation. We
also refer to cash operating expense as cash selling, general and
administrative expense or "cash SG&A".
|
|
|
Selling, general, and
administrative expense
|
$ 545,198
|
|
$ 533,509
|
|
$ 484,283
|
|
Depreciation and
amortization expense
|
(114,657)
|
|
(106,570)
|
|
(102,378)
|
|
Stock-based
compensation expense
|
(79,509)
|
|
(86,129)
|
|
(69,883)
|
|
Cash operating expense
|
$ 351,032
|
|
$ 340,810
|
|
$ 312,022
|
|
|
|
|
|
|
|
(5)
|
We define cash sales
and marketing expense as sales and marketing expense less
depreciation, amortization and
stock-based compensation as presented below:
|
|
|
|
|
|
|
|
|
Sales and marketing
expense
|
$ 192,511
|
|
$ 189,798
|
|
$ 182,827
|
|
Depreciation and
amortization expense
|
(47,621)
|
|
(48,064)
|
|
(52,071)
|
|
Stock-based
compensation expense
|
(20,184)
|
|
(20,097)
|
|
(17,703)
|
|
Cash sales and marketing expense
|
$ 124,706
|
|
$ 121,637
|
|
$ 113,053
|
|
|
|
|
|
|
|
(6)
|
We define cash
general and administrative expense as general and administrative
expense less depreciation, amortization and
stock-based compensation as presented below:
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
$ 352,687
|
|
$ 343,711
|
|
$ 301,456
|
|
Depreciation and
amortization expense
|
(67,036)
|
|
(58,506)
|
|
(50,307)
|
|
Stock-based
compensation expense
|
(59,325)
|
|
(66,032)
|
|
(52,180)
|
|
Cash general and administrative expense
|
$ 226,326
|
|
$ 219,173
|
|
$ 198,969
|
|
|
|
|
|
|
|
(7)
|
The geographic split of
our cash operating expense, or cash SG&A, as defined above, is
presented below:
|
|
|
|
|
|
|
|
|
Americas cash
SG&A
|
$ 204,463
|
|
$ 203,594
|
|
$ 187,988
|
|
EMEA cash
SG&A
|
87,287
|
|
85,083
|
|
75,971
|
|
Asia-Pacific cash
SG&A
|
59,282
|
|
52,133
|
|
48,063
|
|
Cash SG&A
|
$ 351,032
|
|
$ 340,810
|
|
$ 312,022
|
|
|
|
|
|
|
|
(8)
|
We define adjusted
EBITDA as income from operations excluding depreciation,
amortization, accretion, stock-based compensation, restructuring
charges, impairment charges, transaction costs and gain or loss on
asset sales as presented below:
|
|
|
|
|
|
|
|
|
Income from
operations
|
$ 267,316
|
|
$ 249,725
|
|
$ 297,662
|
|
Depreciation,
amortization and accretion expense
|
436,386
|
|
428,764
|
|
394,318
|
|
Stock-based
compensation expense
|
89,952
|
|
96,379
|
|
78,350
|
|
Transaction
costs
|
4,240
|
|
9,405
|
|
1,182
|
|
Loss on asset
sales
|
1,818
|
|
3,304
|
|
1,720
|
|
Adjusted EBITDA
|
$ 799,712
|
|
$ 787,577
|
|
$ 773,232
|
|
|
|
|
|
|
|
|
The geographic split of
our adjusted EBITDA is presented below:
|
|
|
|
|
|
|
|
|
Americas income from
operations
|
$
58,523
|
|
$
29,550
|
|
$
81,565
|
|
Americas depreciation,
amortization and accretion expense
|
230,086
|
|
221,814
|
|
202,706
|
|
Americas stock-based
compensation expense
|
63,917
|
|
71,652
|
|
58,262
|
|
Americas transaction
costs
|
2,991
|
|
6,372
|
|
239
|
|
Americas loss on asset
sales
|
1,038
|
|
4,888
|
|
1,720
|
|
Americas adjusted EBITDA
|
$ 356,555
|
|
$ 334,276
|
|
$ 344,492
|
|
|
|
|
|
|
|
|
EMEA income from
operations
|
$ 128,208
|
|
$ 126,521
|
|
$ 119,785
|
|
EMEA depreciation,
amortization and accretion expense
|
114,866
|
|
116,813
|
|
111,213
|
|
EMEA stock-based
compensation expense
|
16,112
|
|
15,312
|
|
12,130
|
|
EMEA transaction
costs
|
1,157
|
|
2,629
|
|
435
|
|
EMEA (gain) loss on
asset sales
|
2
|
|
(1,584)
|
|
—
|
|
EMEA adjusted EBITDA
|
$ 260,345
|
|
$ 259,691
|
|
$ 243,563
|
|
|
|
|
|
|
|
|
Asia-Pacific income
from operations
|
$
80,585
|
|
$
93,654
|
|
$
96,312
|
|
Asia-Pacific
depreciation, amortization and accretion expense
|
91,434
|
|
90,137
|
|
80,399
|
|
Asia-Pacific
stock-based compensation expense
|
9,923
|
|
9,415
|
|
7,958
|
|
Asia-Pacific
transaction costs
|
92
|
|
404
|
|
508
|
|
Asia-Pacific loss on
asset sales
|
778
|
|
—
|
|
—
|
|
Asia-Pacific adjusted EBITDA
|
$ 182,812
|
|
$ 193,610
|
|
$ 185,177
|
|
|
|
|
|
|
|
(9)
|
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
|
70 %
|
|
69 %
|
|
73 %
|
|
EMEA cash gross
margins
|
63 %
|
|
62 %
|
|
62 %
|
|
Asia-Pacific cash gross
margins
|
63 %
|
|
66 %
|
|
66 %
|
|
|
|
|
|
|
|
(10)
|
We define adjusted
EBITDA margins as adjusted EBITDA divided by revenues.
|
|
|
|
|
|
|
|
|
Americas adjusted
EBITDA margins
|
45 %
|
|
43 %
|
|
47 %
|
|
EMEA adjusted EBITDA
margins
|
47 %
|
|
47 %
|
|
47 %
|
|
Asia-Pacific adjusted
EBITDA margins
|
48 %
|
|
52 %
|
|
53 %
|
|
(11)
|
We define adjusted
EBITDA flow-through rate as incremental adjusted EBITDA growth
divided by incremental revenue growth as follows:
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
current period
|
$ 799,712
|
|
$ 787,577
|
|
$ 773,232
|
|
Less adjusted EBITDA -
prior period
|
(787,577)
|
|
(786,298)
|
|
(711,402)
|
|
Adjusted EBITDA growth
|
$
12,135
|
|
$
1,279
|
|
$
61,830
|
|
|
|
|
|
|
|
|
Revenues - current
period
|
$
1,734,447
|
|
$
1,706,378
|
|
$
1,596,064
|
|
Less revenues - prior
period
|
(1,706,378)
|
|
(1,675,176)
|
|
(1,564,115)
|
|
Revenue growth
|
$
28,069
|
|
$
31,202
|
|
$
31,949
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
flow-through rate
|
43 %
|
|
4 %
|
|
194
%
|
|
|
|
|
|
|
|
(12)
|
FFO is defined as net
income or loss, excluding gain or loss from the disposition of real
estate assets, depreciation and amortization on real estate
assets and adjustments for unconsolidated joint ventures' and
non-controlling interests' share of these items.
|
|
|
|
|
|
|
|
|
Net income
|
$
147,693
|
|
$ 123,141
|
|
$ 156,074
|
|
Net
(income) loss attributable to non-controlling interests
|
(240)
|
|
133
|
|
288
|
|
Net income attributable
to Equinix
|
147,453
|
|
123,274
|
|
156,362
|
|
Adjustments:
|
|
|
|
|
|
|
Real estate depreciation
|
280,196
|
|
277,031
|
|
256,644
|
|
Loss on disposition of real estate property
|
2,845
|
|
4,693
|
|
3,130
|
|
Adjustments for FFO from unconsolidated joint
ventures
|
2,150
|
|
1,882
|
|
1,127
|
|
FFO attributable to common
shareholders
|
$
432,644
|
|
$ 406,880
|
|
$ 417,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13)
|
AFFO is defined as
FFO, excluding depreciation and amortization expense on non-real
estate assets, accretion, stock-based compensation,
restructuring charges, impairment charges, transaction costs, an
installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred
financing costs and debt discounts and premiums, gain or loss on
debt extinguishment, an income tax expense adjustment, net
income or loss from discontinued operations, net of tax, recurring
capital expenditures and adjustments from FFO to AFFO
for unconsolidated joint ventures' and non-controlling
interests' share of these items.
|
|
|
|
|
|
|
|
|
FFO attributable to
common shareholders
|
$ 432,644
|
|
$ 406,880
|
|
$ 417,263
|
|
Adjustments:
|
|
|
|
|
|
|
Installation revenue adjustment
|
845
|
|
5,767
|
|
3,912
|
|
Straight-line rent expense adjustment
|
3,660
|
|
(1,920)
|
|
4,361
|
|
Amortization of deferred financing costs and debt discounts
and premiums
|
4,204
|
|
4,375
|
|
3,923
|
|
Contract cost adjustment
|
(14,939)
|
|
(19,753)
|
|
(14,011)
|
|
Stock-based compensation expense
|
89,952
|
|
96,379
|
|
78,350
|
|
Non-real estate depreciation expense
|
105,575
|
|
99,014
|
|
84,978
|
|
Amortization expense
|
49,569
|
|
50,056
|
|
53,395
|
|
Accretion expense (adjustment)
|
1,046
|
|
2,663
|
|
(699)
|
|
Recurring capital expenditures
|
(23,881)
|
|
(85,693)
|
|
(20,330)
|
|
(Gain) loss on debt extinguishment
|
(529)
|
|
(214)
|
|
13,058
|
|
Transaction costs
|
4,240
|
|
9,405
|
|
1,182
|
|
Impairment charges (1)
|
—
|
|
(465)
|
|
—
|
|
Income tax expense (benefit) adjustment
(1)
|
(323)
|
|
(3,086)
|
|
765
|
|
Adjustments for AFFO from unconsolidated joint
ventures
|
569
|
|
786
|
|
681
|
|
AFFO attributable to
common shareholders
|
$ 652,632
|
|
$ 564,194
|
|
$ 626,828
|
|
|
|
|
|
|
|
|
1.
Impairment charges for 2021 relate to the impairment of an
indemnification asset in Q2 2021 resulting from the
settlement of a pre-acquisition uncertain tax
position, which was recorded as Other Income (Expense) on the
Condensed Consolidated Statements of Operations. This
impairment charge was offset by the recognition of tax
benefits in the same amount, which was included
within the Income tax expense adjustment line on the table
above.
|
|
|
|
|
|
|
|
(14)
|
Following is
how we reconcile from adjusted EBITDA to AFFO:
|
|
|
Adjusted
EBITDA
|
$ 799,712
|
|
$ 787,577
|
|
$ 773,232
|
|
Adjustments:
|
|
|
|
|
|
|
Interest expense, net of interest income
|
(77,859)
|
|
(79,097)
|
|
(88,952)
|
|
Amortization of deferred financing costs and debt discounts
and premiums
|
4,204
|
|
4,375
|
|
3,923
|
|
Income tax expense
|
(32,744)
|
|
(41,899)
|
|
(32,628)
|
|
Income tax expense (benefit) adjustment
(1)
|
(323)
|
|
(3,086)
|
|
765
|
|
Straight-line rent expense adjustment
|
3,660
|
|
(1,920)
|
|
4,361
|
|
Contract cost adjustment
|
(14,939)
|
|
(19,753)
|
|
(14,011)
|
|
Installation revenue adjustment
|
845
|
|
5,767
|
|
3,912
|
|
Recurring capital expenditures
|
(23,881)
|
|
(85,693)
|
|
(20,330)
|
|
Other expense
|
(9,549)
|
|
(5,802)
|
|
(6,950)
|
|
Loss on disposition of real estate property
|
2,845
|
|
4,693
|
|
3,130
|
|
Adjustments for unconsolidated JVs' and non-controlling
interests
|
2,479
|
|
2,801
|
|
2,096
|
|
Adjustments for impairment charges (1)
|
—
|
|
(465)
|
|
—
|
|
Adjustment for loss on sale of assets
|
(1,818)
|
|
(3,304)
|
|
(1,720)
|
|
AFFO attributable to
common shareholders
|
$ 652,632
|
|
$ 564,194
|
|
$ 626,828
|
|
|
|
|
|
|
|
|
1.
Impairment charges for 2021 relate to the impairment of an
indemnification asset in Q2 2021 resulting from the
settlement of a pre-acquisition uncertain tax
position, which was recorded as Other Income (Expense) on the
Condensed Consolidated Statements of Operations. This
impairment charge was offset by the recognition of tax
benefits in the same amount, which was included
within the Income tax expense adjustment line on the table
above.
|
|
|
|
|
|
|
|
|
(15)
|
The shares used in
the computation of basic and diluted FFO and AFFO per share
attributable to Equinix is presented below:
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income per share, FFO per share
and AFFO per share
|
90,771
|
|
90,240
|
|
89,330
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
Employee equity awards
|
391
|
|
512
|
|
512
|
|
Shares used in
computing diluted net income per share, FFO per share
and AFFO per share
|
91,162
|
|
90,752
|
|
89,842
|
|
|
|
|
|
|
|
|
Basic FFO per
share
|
$
4.77
|
|
$
4.51
|
|
$
4.67
|
|
Diluted FFO per
share
|
$
4.75
|
|
$
4.48
|
|
$
4.64
|
|
|
|
|
|
|
|
|
Basic AFFO per
share
|
$
7.19
|
|
$
6.25
|
|
$
7.02
|
|
Diluted AFFO per
share
|
$
7.16
|
|
$
6.22
|
|
$
6.98
|
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SOURCE Equinix, Inc.