ATLANTA, Aug. 3, 2017 /PRNewswire/ -- Internap
Corporation (NASDAQ: INAP), a provider of high-performance Internet
infrastructure including Colocation, Network and Managed Services,
and Cloud Services, today announced financial results for the
second quarter of 2017.
"Second quarter 2017 represents a turning point for INAP,"
stated Peter D. Aquino, President
and CEO of INAP. "Our top-line initiatives and focus are driving
new sales, while we continue to rationalize our portfolio of
datacenter assets. Our new sales team is building momentum,
landing certain large deals that can anchor major markets. Adjusted
EBITDA margin also continued to expand, hitting a high of 33%, as
both our business units' contribution margins crossed above 40%.
With today's reporting, we are debuting INAP's new identity as a
strong, emerging retail COLO provider that can bundle Cloud and
Network connectivity with a redefined data center portfolio in 20
major markets. Our effort to continue to optimize our datacenter
portfolio and strive for profitable growth, we believe, will
position us well for 2018."
Revenue
- Revenue totaled $69.6 million in
the second quarter, a decrease of 6.3% year-over-year and 3.5%
sequentially. However, approximately $1
million of the decline, included both the planned closure of
our 75 Broad Street, New York
facility representing $500k and other
one-time events. Excluding these two events, sequential revenue
decline was 2.1% and year over year was 4.9%. The balance of the
year-over-year decrease was attributable to the decline in network
services in part due to market pricing trends and churn which
was lower than previous quarter. The declines were partially offset
year over year by growth in Agile bare metal server
revenue.
- INAP COLO revenue totaled $52.0
million in the second quarter, a decrease of 6.8%
year-over-year and 2.4% sequentially. However, approximately
$800k of the decline was attributed
to the events above. Excluding these events, sequential revenue was
down less than 1% and year over year approximately 5.3%. The
balance of the decrease year over was attributable to lower network
services in part due to market pricing trends and churn, which was
lower than prior quarter.
- INAP CLOUD revenue totaled $17.6
million in the second quarter, a decrease of 4.8%
year-over-year and 6.4% sequentially. The decrease was driven by
churn from a small number of large customers and the impact of the
planned closure of the New York
location. This was partially offset on a year-over-year basis by
growth in Agile Bare-Metal server revenue.
Second Quarter
2017 Financial Summary
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YoY
|
|
QoQ
|
|
|
|
|
2Q
2017
|
|
1Q
2017
|
|
2Q
2016
|
|
Growth
|
|
Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
|
$
69,642
|
|
$
72,133
|
|
$
74,315
|
|
-6.3%
|
|
-3.5%
|
Operating Costs and
Expenses
|
|
$
71,695
|
|
$
71,641
|
|
$
76,789
|
|
-6.6%
|
|
0.1%
|
Depreciation and
Amortization
|
|
$
18,934
|
|
$
17,745
|
|
$
19,217
|
|
-1.5%
|
|
6.7%
|
Exit activities,
restructuring and impairments
|
|
$
4,628
|
|
$
1,023
|
|
$
152
|
|
2944.7%
|
|
352.4%
|
All Other Operating
Costs and Expenses
|
|
$
48,133
|
|
$
52,873
|
|
$
57,420
|
|
-16.2%
|
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
|
|
$
(19,283)
|
|
$
(8,230)
|
|
$
(10,693)
|
|
80.3%
|
|
134.3%
|
GAAP Net Loss
Margin
|
|
|
-27.7%
|
|
-11.4%
|
|
-14.4%
|
|
-1,330
BPS
|
|
-1,630
BPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minus goodwill
impairment and other items*
|
|
$
13,378
|
|
$
4,161
|
|
$
5,109
|
|
161.9%
|
|
221.5%
|
Normalized Net
Loss2
|
|
|
$
(5,905)
|
|
$
(4,069)
|
|
$
(5,584)
|
|
5.7%
|
|
45.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
|
|
$
23,051
|
|
$
21,554
|
|
$
20,167
|
|
14.3%
|
|
6.9%
|
Adjusted EBITDA
Margin1
|
|
|
33.1%
|
|
29.9%
|
|
27.1%
|
|
600
BPS
|
|
320
BPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
(CapEx)
|
$
6,748
|
|
$
5,989
|
|
$
14,402
|
|
-53.1%
|
|
12.7%
|
Adjusted EBITDA less
CapEx1
|
$
16,303
|
|
$
15,565
|
|
$
5,765
|
|
182.8%
|
|
4.7%
|
Beginning with first quarter 2017 reporting, INAP redefined its
segment reporting into two pure play business units:
- INAP COLO, formerly Data Center and Networking Services,
comprised of colo, IP network services, and managed hosting.
Managed hosting was previously included in the Cloud and Hosting
Services segment; and
- INAP CLOUD, formerly Cloud and Hosting Services, comprised of
AgileCLOUD, iWeb, Ubersmith and Funio.
Net Loss, Normalized Net Loss, Adjusted EBITDA and Business
Unit Contribution
- GAAP net loss was $(19.3)
million, or $(0.24) per share,
including $4.6 million of costs
associated with exit activities, restructuring and impairment and
$7.1 million of debt extinguishment
and modification expenses, compared with $(10.7) million, or $(0.21) per share in the second quarter of 2016
and $(8.2) million, or $(0.13) per share in the first quarter of 2017,
including $7.1 million of costs
associated with exit activities, restructuring and impairment in
the first quarter of 2017. GAAP net loss margin was –27.7% in the
second quarter of 2017.
- Normalized net loss was $(5.9)
million compared with $(5.6)
million in the second quarter of 2016 and $(4.1) million in the first quarter of 2017.
- Adjusted EBITDA totaled $23.1
million in the second quarter, an increase of 14.3% compared
with the second quarter of 2016 and 6.9% compared to the first
quarter of 2017. Adjusted EBITDA margin was 33.1% in the second
quarter, up 600 basis points year-over-year and 320 basis points
sequentially. The increases in Adjusted EBITDA were attributable to
continued focus on cost control and our initiatives of eliminating
unproductive sites and investing in long-term key markets.
- Business Unit Contribution3 – As part of the
realignment of its segments into two pure play business units, INAP
COLO and INAP CLOUD, INAP is providing a measure of unit-level
profitability called business unit contribution3.
-
- INAP COLO business unit contribution totaled $22.0 million in the second quarter, a 10%
increase compared with the second quarter of 2016 and a 10.3%
increase from the first quarter of 2017. As a percent of revenue,
INAP COLO business unit contribution margin was 42.2% in the second
quarter, up 640 basis points year-over-year and 480 basis points
sequentially. The year-over-year business unit contribution
increase reflects improving cost control. The sequential
business unit contribution increase was primarily driven by cost
control and our initiatives of eliminating unproductive sites and
investing in long-term key markets.
- INAP CLOUD business unit contribution totaled $8.1 million in the second quarter, a 1.8%
increase compared with the second quarter of 2016 and a 14%
decrease from the first quarter of 2017. As a percent of revenue,
INAP CLOUD business unit contribution margin was 46.0% in the
second quarter, up 300 basis points year-over-year and down 410
basis points sequentially. The year-over-year increase reflects
improving cost control. The sequential decrease reflects the
decline in revenue and the closure of the 75 Broad location.
Balance Sheet and Cash Flow Statement
- Cash and cash equivalents totaled $17.5
million at June 30, 2017.
Total debt was $486.8 million, net of
discount and prepaid costs, at the end of the quarter, including
$197.6 million in capital lease
obligations. As previously reported, on April 6, 2017 INAP entered into a new Senior
Secured Credit Facility, including a $300
million First Lien Term Loan and a $25 million Revolver (which remains undrawn),
thereby completing the refinancing of its senior secured debt. The
capital lease balance reflects INAP's conversion of certain
operating leases to capital leases as part of its strategic growth
investments. $134.7 million of
our capital lease obligations are excluded from debt for bank
covenant purposes as they were operating leases at the time of the
refinancing.
- Cash generated from operations for the three months ended
June 30, 2017 was $14.8 million compared to $14.0 million in second quarter 2016 and
$7.3 million in first quarter of
2017. Capital expenditures over the same periods were $6.8 million compared to $14.4 million and $6.0
million, respectively. Adjusted EBITDA less CapEx was
$16.3 million compared to
$5.8 million in second quarter 2016
and $15.6 million in first quarter
2017. Free cash flow4 over the same periods was
$8.1 million compared to less than
$(1) million and $1.3 million, respectively. Unlevered free
cash flow4 was $15.6
million for the second quarter 2017 compared to $7.4 million in second quarter 2016 and
$8.6 million in first quarter
2017.
"In the second quarter of 2017, we continued to drive
improvements in operating performance while expanding our operating
leverage both through cost reductions and our initiatives to
eliminate unproductive sites and invest in long-term key markets,"
said Robert M. Dennerlein, Chief
Financial Officer of INAP. "We are deep into Phases II and III of
our data center footprint evaluation and network cost optimization
and are closely managing the ROI of our remaining CapEx program,
which has enabled us to revise Capex guidance downward for the
year. These efforts are designed to improve run rate profitability,
increase our asset utilization, and establish a baseline for future
growth."
Business Outlook
|
Full-Year 2017
Expected Range
|
|
Previous
Guidance
|
|
Current
Guidance
|
Revenue
|
$275 million - $285
million
|
|
Reaffirming
|
Adjusted
EBITDA
|
$85 million - $90
million
|
|
Reaffirming
|
Capital
Expenditures
|
$37 million - $42
million
|
|
$32 million - $37
million
|
- Adjusted EBITDA, Adjusted EBITDA margin 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". Reconciliations between GAAP information and
non-GAAP information related to Adjusted EBITDA and Adjusted EBITDA
margin are contained in the table entitled "Reconciliation of GAAP
Net Loss to Adjusted EBITDA". Adjusted EBITDA margin is Adjusted
EBITDA as a percentage of revenue. 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 Adjusted
EBITDA less CapEx.
- Normalized net loss is a non-GAAP financial measure which we
define in an attachment to this press release entitled "Non-GAAP
(Adjusted) Financial Measures". Reconciliations between GAAP
information and non-GAAP information related to normalized net loss
are contained in the table entitled "Reconciliation of Net Loss to
Normalized Net Loss".
- Business unit contribution and business unit contributed margin
are non-GAAP financial measures which we define in an attachment to
this press release entitled "Non-GAAP (Adjusted) Financial
Measures." Reconciliations between GAAP and non-GAAP information
related to business unit contribution and business unit
contribution margin are contained in the table entitled "Business
Unit Contribution and Business Unit Contribution Margin" in the
attachment. Business unit contribution margin is business unit
contribution as a percentage of revenue.
- Free cash flow and unlevered free cash flow are non-GAAP
financial measures which we define in the attachment to the press
release entitled "Non-GAAP (Adjusted) Financial Measures."
Reconciliations between GAAP and non-GAAP information related to
Free cash flow and unlevered free cash flow are contained in the
table entitled "Free Cash Flow and Unlevered Free Cash Flow".
Conference Call Information:
Internap Corporation's second quarter 2017 conference call will
be held today at 8:30 a.m. ET.
Listeners may connect to a webcast of the call, which will include
accompanying presentation slides, on the investor relations section
of INAP'S web site at http://ir.internap.com/events.cfm. The call
can also be accessed by dialing 877-334-0775. International callers
should dial 631-291-4567. An online archive of the webcast
presentation will be available following the call. An audio-only
replay will be accessible from Thursday,
August 3, 2017 at 11:30 AM ET
through Tuesday, August 8, 2017 at
855-859-2056 using replay code 45700502. International callers can
listen to the archived event at 404-537-3406 with the same
code.
About INAP
Internap Corporation (NASDAQ: INAP) is a leading provider of
Internet infrastructure through both Colocation Business and
Enterprise Services (including colocation, network connectivity,
IP, bandwidth, and managed hosting), and Cloud Services (including
enterprise-grade AgileCLOUD, bare-metal servers, and SMB iWeb
platforms). INAP operates in Tier 3-type data centers in 20
metropolitan markets, primarily in North
America, with 46 datacenters and 85 POPs around the
world. Currently, there is approximately 950,000 square feet
under lease and 500,000 of data center footprint square feet. Of
the company's total data center footprint, there is approximately
325,000 raised floor, and 200,000 occupied, connected through a
high-capacity network. INAP operates a premium business model that
provides high-power density colocation, low-latency bandwidth, and
public and private cloud platforms in an expanding Internet
infrastructure industry. For more information, visit
www.inap.com.
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements include statements related to sales,
improved profitability, margin expansion, operations improvement,
cost reductions, participation in strategic transactions, our
strategy to align into pure-play businesses and our expectations
for full-year 2017 revenue, Adjusted EBITDA and capital
expenditures. Our ability to achieve these forward-looking
statements is based on certain assumptions, including our ability
to execute on our business strategy, leveraging of multiple routes
to market, expanded brand awareness for high-performance Internet
infrastructure services and customer churn levels. These
assumptions may prove inaccurate in the future. Because such
forward-looking statements are not guarantees of future performance
or results and involve risks and uncertainties, there are important
factors that could cause INAP's actual results to differ materially
from those expressed or implied in the forward-looking statements,
due to a variety of important factors. Such important factors
include, without limitation: our ability to execute on our business
strategy into a pure-play business and drive growth while reducing
costs; our ability to maintain current customers and obtain new
ones, whether in a cost-effective manner or at all; the robustness
of the IT infrastructure services market; our ability to achieve or
sustain profitability; our ability to expand margins and drive
higher returns on investment; our ability to sell into new and
existing data center space; the actual performance of our IT
infrastructure services and improving operations; our ability to
correctly forecast capital needs, demand planning and space
utilization; our ability to respond successfully to technological
change and the resulting competition; the geographic concentration
of the company's data centers in certain markets and any adverse
developments in local economic conditions or the demand for data
center space in these markets; ability to identify any suitable
strategic transactions; the availability of services from Internet
network service providers or network service providers providing
network access loops and local loops on favorable terms, or at all;
failure of third party suppliers to deliver their products and
services on favorable terms, or at all; failures in our network
operations centers, data centers, network access points or computer
systems; our ability to provide or improve Internet infrastructure
services to our customers; our ability to protect our intellectual
property; our substantial amount of indebtedness, our possibility
to raise additional capital when needed, on attractive terms, or at
all, our ability to service existing debt or maintain compliance
with financial and other covenants contained in our credit
agreement; our compliance with and changes in complex laws and
regulations in the U.S. and internationally; our ability to attract
and retain qualified management and other personnel; and volatility
in the trading price of INAP common stock.
These risks and other important factors discussed under the
caption "Risk Factors" in our most recent Annual Report on Form
10-K filed with the Securities and Exchange Commission ("SEC"), and
our other reports filed with the SEC could cause actual results to
differ materially from those indicated by the forward-looking
statements made in this press release.
Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. All forward-looking statements attributable to INAP
or persons acting on its behalf are expressly qualified in their
entirety by the foregoing forward-looking statements. All such
statements speak only as of the date made, and INAP undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor
Contacts:
|
|
Richard
Ramlall
|
Carolyn Capaccio/Jody
Burfening
|
VP, IR & PR
INAP
|
LHA
|
404-302-9982
|
212-838-3777
|
ir@inap.com
|
inap@lhai.com
|
INTERNAP
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
INAP
COLO
|
$
52,044
|
|
$
55,827
|
|
$
105,383
|
|
$
111,708
|
INAP
CLOUD
|
17,598
|
|
18,488
|
|
36,392
|
|
38,531
|
Total
revenues
|
69,642
|
|
74,315
|
|
141,775
|
|
150,239
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Direct
costs of sales and services, exclusive of depreciation and
amortization, shown below:
|
|
|
|
|
|
|
INAP
COLO
|
22,070
|
|
26,736
|
|
46,876
|
|
53,069
|
INAP
CLOUD
|
4,359
|
|
4,634
|
|
8,598
|
|
9,378
|
Direct
costs of customer support
|
6,133
|
|
7,919
|
|
13,397
|
|
16,723
|
Sales,
general and administrative
|
15,571
|
|
18,131
|
|
32,135
|
|
37,061
|
Depreciation and amortization
|
18,934
|
|
19,217
|
|
36,679
|
|
38,330
|
Exit
activities, restructuring and impairments
|
4,628
|
|
152
|
|
5,651
|
|
353
|
Total operating costs
and expenses
|
71,695
|
|
76,789
|
|
143,336
|
|
154,914
|
Loss from
operations
|
(2,053)
|
|
(2,474)
|
|
(1,561)
|
|
(4,675)
|
|
|
|
|
|
|
|
|
Non-operating
expenses:
|
|
|
|
|
|
|
|
Interest
expense
|
17,145
|
|
8,082
|
|
25,282
|
|
15,067
|
Loss on
foreign currency, net
|
191
|
|
118
|
|
288
|
|
551
|
Other,
net
|
-
|
|
(2)
|
|
-
|
|
(80)
|
Total non-operating
expenses
|
17,336
|
|
8,198
|
|
25,570
|
|
15,538
|
|
|
|
|
|
|
|
|
Loss before income
taxes and equity in earnings of equity-method investment
|
(19,389)
|
|
(10,672)
|
|
(27,131)
|
|
(20,213)
|
Provision for income
taxes
|
(50)
|
|
62
|
|
468
|
|
200
|
Equity in earnings of
equity-method investment, net of taxes
|
(56)
|
|
(41)
|
|
(86)
|
|
(77)
|
|
|
|
|
|
|
|
|
Net loss
|
$
(19,283)
|
|
$
(10,693)
|
|
$
(27,513)
|
|
$
(20,336)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.24)
|
|
$
(0.21)
|
|
$
(0.38)
|
|
$
(0.39)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing net loss per share:
|
|
|
|
|
|
|
|
Basic and
diluted
|
79,507
|
|
52,062
|
|
71,971
|
|
52,241
|
INTERNAP
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except par value amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
17,456
|
|
$
10,389
|
Accounts receivable,
net of allowance for doubtful accounts of $1,292 and $1,246,
respectively
|
|
16,066
|
|
18,044
|
Prepaid expenses and
other assets
|
|
11,150
|
|
10,055
|
Total current
assets
|
|
44,672
|
|
38,488
|
Property and
equipment, net
|
|
427,873
|
|
302,680
|
Investment in joint
venture
|
|
3,161
|
|
3,002
|
Intangible assets,
net
|
|
26,333
|
|
27,978
|
Goodwill
|
|
50,209
|
|
50,209
|
Deposits and other
assets
|
|
8,820
|
|
8,258
|
Total
assets
|
|
$
561,068
|
|
$
430,615
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
20,757
|
|
$
20,875
|
Accrued
liabilities
|
|
13,845
|
|
10,603
|
Deferred
revenues
|
|
5,272
|
|
5,746
|
Capital lease
obligations
|
|
11,392
|
|
10,030
|
Term loan, less
discount and prepaid costs of $2,103 and $2,243,
respectively
|
|
897
|
|
757
|
Exit activities and
restructuring liability
|
|
5,212
|
|
3,177
|
Other current
liabilities
|
|
2,571
|
|
3,171
|
Total current
liabilities
|
|
59,946
|
|
54,359
|
|
|
|
|
|
Deferred
revenues
|
|
4,918
|
|
5,144
|
Capital lease
obligations
|
|
186,221
|
|
43,876
|
Revolving credit
facility
|
|
-
|
|
35,500
|
Term loan, less
discount and prepaid costs of $8,746 and $4,579
respectively
|
|
288,254
|
|
283,421
|
Exit activities and
restructuring liability
|
|
2,416
|
|
1,526
|
Deferred
rent
|
|
3,206
|
|
4,642
|
Deferred tax
liability
|
|
1,404
|
|
1,513
|
Other long-term
liabilities
|
|
4,196
|
|
4,358
|
Total
liabilities
|
|
550,561
|
|
434,339
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value; 20,000 shares authorized; no shares
issued
|
|
|
|
|
or
outstanding
|
|
-
|
|
-
|
Common stock, $0.001
par value; 200,000 shares authorized; 83,272 and 57,799
shares
|
|
|
|
|
outstanding,
respectively
|
|
84
|
|
58
|
Additional paid-in
capital
|
|
1,324,692
|
|
1,283,332
|
Treasury stock, at
cost; 1,161 and 1,073 shares, respectively
|
|
(7,133)
|
|
(6,923)
|
Accumulated
deficit
|
|
(1,305,894)
|
|
(1,278,699)
|
Accumulated items of
other comprehensive loss
|
|
(1,242)
|
|
(1,492)
|
Total stockholders'
equity
|
|
10,507
|
|
(3,724)
|
Total liabilities and
stockholders' equity
|
|
$
561,068
|
|
$
430,615
|
|
|
|
|
|
INTERNAP
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(19,283)
|
|
$ (10,693)
|
|
$
(27,513)
|
|
$(20,336)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
18,934
|
|
19,217
|
|
36,679
|
|
38,330
|
Amortization of debt discount and issuance costs
|
|
577
|
|
711
|
|
1,292
|
|
1,233
|
Stock-based compensation expense, net of capitalized
amount
|
|
534
|
|
1,542
|
|
1,132
|
|
3,464
|
Equity
in earnings of equity-method investment
|
|
(56)
|
|
(41)
|
|
(86)
|
|
(77)
|
Provision for doubtful accounts
|
|
219
|
|
239
|
|
520
|
|
580
|
Non-cash
change in capital lease obligations
|
|
187
|
|
40
|
|
258
|
|
527
|
Non-cash
change in exit activities and restructuring liability
|
|
4,411
|
|
272
|
|
5,391
|
|
619
|
Non-cash
change in deferred rent
|
|
(776)
|
|
(516)
|
|
(1,199)
|
|
(1,000)
|
Deferred
taxes
|
|
(104)
|
|
(38)
|
|
150
|
|
39
|
Payment
of debt lender fees
|
|
-
|
|
(1,716)
|
|
(2,583)
|
|
(1,716)
|
Loss on
extinguishment and modification of debt
|
|
6,785
|
|
-
|
|
6,785
|
|
-
|
Other,
net
|
|
296
|
|
(15)
|
|
200
|
|
186
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(611)
|
|
1,165
|
|
1,485
|
|
1,702
|
Prepaid
expenses, deposits and other assets
|
|
(1,162)
|
|
2,660
|
|
(1,039)
|
|
4,606
|
Accounts
payable
|
|
2,724
|
|
4,084
|
|
477
|
|
2,269
|
Accrued
and other liabilities
|
|
3,330
|
|
(2,028)
|
|
3,150
|
|
(3,931)
|
Deferred
revenues
|
|
(187)
|
|
(97)
|
|
(697)
|
|
94
|
Exit
activities and restructuring liability
|
|
(1,080)
|
|
(775)
|
|
(2,466)
|
|
(1,579)
|
Asset
retirement obligation
|
|
51
|
|
-
|
|
103
|
|
(174)
|
Other
liabilities
|
|
(2)
|
|
8
|
|
12
|
|
(35)
|
Net cash flows
provided by operating activities
|
|
14,787
|
|
14,019
|
|
22,051
|
|
24,801
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(6,504)
|
|
(14,032)
|
|
(12,293)
|
|
(26,314)
|
Additions to acquired
and developed technology
|
|
(244)
|
|
(370)
|
|
(444)
|
|
(769)
|
Net cash flows used
in investing activities
|
|
(6,748)
|
|
(14,402)
|
|
(12,737)
|
|
(27,083)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from credit
agreements
|
|
295,500
|
|
3,000
|
|
295,500
|
|
4,500
|
Proceeds from stock
issuance
|
|
(120)
|
|
-
|
|
40,162
|
|
-
|
Principal payments on
credit agreements
|
|
(286,503)
|
|
(750)
|
|
(326,500)
|
|
(1,500)
|
Debt issuance
costs
|
|
(5,694)
|
|
-
|
|
(5,694)
|
|
-
|
Payments on capital
lease obligations
|
|
(2,880)
|
|
(2,468)
|
|
(5,371)
|
|
(4,827)
|
Proceeds from
exercise of stock options
|
|
29
|
|
675
|
|
36
|
|
675
|
Acquisition of common
stock for income tax withholdings
|
|
(61)
|
|
(127)
|
|
(210)
|
|
(343)
|
Other, net
|
|
(83)
|
|
(116)
|
|
(240)
|
|
(192)
|
Net cash flows
provided by (used in) financing activities
|
|
188
|
|
214
|
|
(2,317)
|
|
(1,687)
|
Effect of exchange
rates on cash and cash equivalents
|
|
55
|
|
139
|
|
70
|
|
65
|
Net decrease in cash
and cash equivalents
|
|
8,282
|
|
(30)
|
|
7,067
|
|
(3,904)
|
Cash and cash
equivalents at beginning of period
|
|
9,174
|
|
13,898
|
|
10,389
|
|
17,772
|
Cash and cash
equivalents at end of period
|
|
$
17,456
|
|
$
13,868
|
|
$
17,456
|
|
$ 13,868
|
INTERNAP CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES
In addition to providing financial measurements based on
accounting principles generally accepted in the United States of America ("GAAP"), this
earnings press release includes additional financial measures that
are not prepared in accordance with GAAP ("non-GAAP"), including
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less
CapEx, normalized net loss, business unit contribution, business
unit contribution margin, free cash flow and unlevered free cash
flow. A reconciliation of non-GAAP financial measures to the most
directly comparable GAAP financial measures can be found below.
We define the following non-GAAP measures as follows:
- Adjusted EBITDA is a non-GAAP measure and is GAAP net loss plus
depreciation and amortization, interest expense, provision
(benefit) for income taxes, other expense (income), (gain) loss on
disposal of property and equipment, exit activities, restructuring
and impairments, stock-based compensation, non-income tax
contingency, strategic alternatives and related costs,
organizational realignment costs, pre-acquisition costs and claim
settlement.
- Adjusted EBITDA margin is Adjusted EBITDA as a percentage of
revenues.
- Adjusted EBITDA less CapEx is Adjusted EBITDA less capital
expenditures with Adjusted EBITDA for this non-GAAP measure defined
as net cash flow provided by operating activities plus cash paid
for interest, cash paid for taxes, cash paid for exit activities
and restructuring, cash paid for strategic alternatives and related
costs, cash paid for organizational realignment costs, payment of
debt lender fees and other working capital changes less capital
expenditures.
- Normalized net loss is net loss plus exit activities,
restructuring and impairments, stock-based compensation, non-income
tax contingency, strategic alternatives and related costs,
organizational realignment costs, pre-acquisition costs, claim
settlement and debt extinguishment and modification expenses.
- Business unit contribution is business unit revenues less
direct costs of sales and services, customer support, and sales and
marketing, exclusive of depreciation and amortization.
- Business unit contribution margin is business unit contribution
as a percentage of business unit revenue.
- Free cash flow is net cash flows provided by operating
activities minus capital expenditures.
- Unlevered free cash flow is free cash flow plus cash interest
expense.
We believe that presentation of these non-GAAP financial
measures provides useful information to investors regarding our
results of operations.
We believe that excluding depreciation and amortization and loss
(gain) on disposals of property and equipment, as well as
impairments and restructuring, to calculate Adjusted EBITDA
provides supplemental information and an alternative presentation
that is useful to investors' understanding of our current ongoing
operating results and trends. Not only are depreciation and
amortization expenses based on historical costs of assets that may
have little bearing on present or future replacement costs, but
also they are based on management estimates of remaining useful
lives. Loss on disposals of property and equipment is also based on
historical costs of assets that may have little bearing on
replacement costs. Impairments and restructuring expenses primarily
reflect goodwill impairments and subsequent plan adjustments in
sublease income assumptions for certain properties included in our
previously disclosed restructuring plans.
We believe that excluding interest expense, provision (benefit)
for income taxes and other expense (income) from non-GAAP financial
measures provides supplemental information and an alternative
presentation useful to investors' understanding of our core
operating results and trends. Investors have indicated that they
consider financial measures of our results of operations excluding
interest expense, provision (benefit) for income taxes and other
expense (income) as important supplemental information useful to
their understanding of our historical results and estimating our
future results.
INTERNAP CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
We also believe that, in excluding the effects of interest
expense, provision (benefit) for income taxes and other expense
(income), our non-GAAP financial measures provide investors with
transparency into what management uses to measure and forecast our
results of operations, to compare on a consistent basis our results
of operations for the current period to that of prior periods and
to compare our results of operations on a more consistent basis
against that of other companies, in making financial and operating
decisions and to establish certain management compensation.
We believe that exit activities, restructuring and impairment
charges, non-income tax contingency, strategic alternatives and
related costs, organizational realignment costs, pre-acquisition
costs, claim settlement costs and debt extinguishment and
modification expense are unique costs, and consequently, we do not
consider these charges as a normal component of expenses related to
current and ongoing operations.
Similarly, we believe that excluding the effects of stock-based
compensation from non-GAAP financial measures provides supplemental
information and an alternative presentation useful to investors'
understanding of our current ongoing operating results and trends.
Management believes that investors consider financial measures of
our results of operations excluding stock-based compensation as
important supplemental information useful to their understanding of
our historical results and estimating our future results.
We also believe that, in excluding the effects of stock-based
compensation, our non-GAAP financial measures provide investors
with transparency into what management uses to measure and forecast
our results of operations, to compare on a consistent basis our
results of operations for the current period to that of prior
periods and to compare our results of operations on a more
consistent basis against that of other companies, in making
financial and operating decisions and to establish certain
management compensation.
Stock-based compensation is an important part of total
compensation, especially from the perspective of employees. We
believe, however, that supplementing GAAP net loss by providing
normalized net loss, excluding the effect of exit activities,
restructuring and impairments, stock-based compensation, non-income
tax contingency, strategic alternatives and related costs,
organizational realignment cost, pre-acquisition costs, claim
settlement costs, and debt extinguishment and modification expenses
in all periods, is useful to investors because it enables
additional and more meaningful period-to-period comparisons.
Adjusted EBITDA is not a measure of financial performance
calculated in accordance with GAAP, and should be viewed as a
supplement to — not a substitute for — our results of operations
presented on the basis of GAAP. Adjusted EBITDA does not purport to
represent cash flow provided by operating activities as defined by
GAAP. Our statements of cash flows present our cash flow activity
in accordance with GAAP. Furthermore, Adjusted EBITDA is not
necessarily comparable to similarly-titled measures reported by
other companies.
We believe Adjusted EBITDA is used by and is useful to investors
and other users of our financial statements in evaluating our
operating performance because it provides them with an additional
tool to compare business performance across companies and across
periods. We believe that:
- EBITDA is widely used by investors to measure a company's
operating performance without regard to items such as interest
expense, income taxes, depreciation and amortization, which can
vary substantially from company-to-company depending upon
accounting methods and book value of assets, capital structure and
the method by which assets were acquired; and
- investors commonly adjust EBITDA information to eliminate the
effect of disposals of property and equipment, impairments,
restructuring and stock-based compensation which vary widely from
company-to-company and impair comparability.
Our management uses Adjusted EBITDA:
- as a measure of operating performance to assist in comparing
performance from period-to-period on a consistent basis;
- as a measure for planning and forecasting overall expectations
and for evaluating actual results against such expectations;
and
- in communications with the board of directors, analysts and
investors concerning our financial performance.
INTERNAP CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
Our presentation of business unit contribution and business unit
contribution margin excludes depreciation and amortization in order
to allow investors to see the business through the eyes of
management.
We also have excluded depreciation and amortization from
business unit contribution and business unit contribution margin
because, as noted above, they are based on estimated useful lives
of tangible and intangible assets. Further, depreciation and
amortization are based on historical costs incurred to build out
our deployed network and the historical costs of these assets may
not be indicative of current or future capital expenditures.
Free cash flow and unlevered free cash flow are used in addition
to and in conjunction with results presented in accordance with
GAAP. Free cash flow and unlevered free cash flow should not
be relied upon to the exclusion of GAAP financial measures. Free
cash flow and unlevered free cash flow reflect an additional way of
viewing our liquidity that, when viewed with our GAAP results,
provides a more complete understanding of factors and trends
affecting our cash flows. Management strongly encourages investors
to review our financial statements and publicly-filed reports in
their entirety and to not rely on any single financial measure.
We use free cash flow and unlevered free cash flow, and ratios
based on it, to conduct and evaluate our business because, although
it is similar to cash flow from operations, we believe it is a
useful measure of cash flows since capital expenditures are a
necessary component of ongoing operations. In limited circumstances
in which proceeds from sales of fixed assets exceed capital
expenditures, free cash flow would exceed cash flow from
operations. However, since we do not anticipate being a net seller
of fixed assets, we expect free cash flow to be less than operating
cash flows.
Free cash flow and unlevered free cash flow have limitations due
to the fact that they do not represent the residual cash flow
available for discretionary expenditures. For example, free cash
flow does not incorporate payments made to service our debt or
capital lease obligations. Therefore, we believe it is important to
view free cash flow as a complement to our entire consolidated
statements of cash flows.
Adjusted EBITDA less CapEx is used in addition to and in
conjunction with results presented in accordance with GAAP.
Adjusted EBITDA less CapEx should not be relied upon to the
exclusion of GAAP financial measures. Adjusted EBITDA less CapEx
reflects an additional way of viewing our liquidity that, when
viewed with our GAAP results, provides a more complete
understanding of factors and trends affecting our cash flows.
Management strongly encourages investors to review our financial
statements and publicly-filed reports in their entirety and to not
rely on any single financial measure.
We use Adjusted EBITDA less CapEx, and ratios based on it, to
conduct and evaluate our business because, although it is similar
to cash flow from operations, we believe it is a useful measure of
cash flows since capital expenditures are a necessary component of
ongoing operations.
Adjusted EBITDA less CapEx has limitations due to the fact that
it does not represent the residual cash flow available for
discretionary expenditures. Adjusted EBITDA less CapEx does not
incorporate payments made to service our debt or capital lease
obligations. Therefore, we believe it is important to view Adjusted
EBITDA less CapEx as a complement to our entire consolidated
statements of cash flows.
Adjusted EBITDA, as presented, may not be comparable to
similarly titled measures of other companies. Adjusted EBITDA
is presented as we understand certain investors use it as one
measure of our historical ability to service debt. Also adjusted
EBITDA is used in our debt covenants.
Although we believe, for the foregoing reasons, that our
presentation of non-GAAP financial measures provides useful
supplemental information to investors regarding our results of
operations, our non-GAAP financial measures should only be
considered in addition to, and not as a substitute for, or superior
to, any measure of financial performance prepared in accordance
with GAAP.
Use of non-GAAP financial measures is subject to inherent
limitations because they do not include all the expenses that must
be included under GAAP and because they involve the exercise of
judgment of which charges should properly be excluded from the
non-GAAP financial measure. Management accounts for these
limitations by not relying exclusively on non-GAAP financial
measures, but only using such information to supplement GAAP
financial measures. Our non-GAAP financial measures may not be the
same non-GAAP measures, and may not be calculated in the same
manner, as those used by other companies.
INTERNAP CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED
EBITDA AND FORWARD LOOKING ADJUSTED EBITDA
A reconciliation of GAAP net loss to Adjusted EBITDA for each of
the periods indicated is as follows (in thousands):
|
Three Months
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
Reconciliation of
GAAP Net Loss to Adjusted EBITDA:
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
$
69,642
|
|
100.0%
|
|
$
72,133
|
|
100.0%
|
|
$ 74,315
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
(GAAP)
|
$
(19,283)
|
|
-27.7%
|
|
$
(8,230)
|
|
-11.4%
|
|
$(10,693)
|
|
-14.4%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
18,934
|
|
27.2%
|
|
17,745
|
|
24.6%
|
|
19,217
|
|
25.9%
|
Interest
expense
|
17,145
|
|
24.6%
|
|
8,137
|
|
11.3%
|
|
8,082
|
|
10.9%
|
Provision (benefit)
for income taxes
|
(50)
|
|
-0.1%
|
|
518
|
|
0.7%
|
|
62
|
|
0.1%
|
Other expense
(income)
|
135
|
|
0.2%
|
|
67
|
|
0.1%
|
|
75
|
|
0.1%
|
(Gain) loss on
disposal of property and equipment, net
|
(103)
|
|
-0.1%
|
|
(97)
|
|
-0.1%
|
|
31
|
|
0.0%
|
Exit activities,
restructuring and impairments, including goodwill
impairment
|
4,628
|
|
6.6%
|
|
1,023
|
|
1.4%
|
|
152
|
|
0.2%
|
Stock-based
compensation
|
534
|
|
0.8%
|
|
598
|
|
0.8%
|
|
1,542
|
|
2.1%
|
Non-income tax
contingency
|
-
|
|
0.0%
|
|
1,500
|
|
2.1%
|
|
-
|
|
0.0%
|
Strategic
alternatives and related costs
|
8
|
|
0.0%
|
|
6
|
|
0.0%
|
|
282
|
|
0.4%
|
Organizational
realignment costs
|
295
|
|
0.4%
|
|
287
|
|
0.4%
|
|
1,417
|
|
1.9%
|
Pre-acquisition
costs
|
95
|
|
0.1%
|
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
Claim
settlement
|
713
|
|
1.0%
|
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
Adjusted EBITDA
(non-GAAP)
|
$
23,051
|
|
33.1%
|
|
$
21,554
|
|
29.9%
|
|
$ 20,167
|
|
27.1%
|
A reconciliation of forward looking Adjusted EBITDA for
full-year 2017 is as follows (in millions):
|
|
|
2017 Full-Year
Guidance
|
|
|
|
Low
|
|
High
|
|
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
|
|
$
275
|
|
100.0%
|
|
$
285
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
Net Loss
(GAAP)
|
|
|
$
(52)
|
|
-18.9%
|
|
$
(48)
|
|
-16.8%
|
Add:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
75
|
|
27.3%
|
|
75
|
|
26.3%
|
Interest
expense
|
|
|
49
|
|
17.8%
|
|
49
|
|
17.2%
|
Provision for income
taxes
|
|
|
1
|
|
0.4%
|
|
1
|
|
0.4%
|
Other expense
(income)
|
|
|
|
|
0.0%
|
|
|
|
0.0%
|
(Gain) loss on
disposal of property and equipment, net
|
|
|
|
|
0.0%
|
|
|
|
0.0%
|
Exit activities,
restructuring and impairments, including goodwill
impairment
|
7
|
|
2.5%
|
|
7
|
|
2.5%
|
Stock-based
compensation
|
|
|
2
|
|
0.7%
|
|
2
|
|
0.7%
|
Non-income tax
contingency
|
|
|
1
|
|
0.4%
|
|
2
|
|
0.7%
|
Strategic
alternatives and related costs
|
|
|
|
|
0.0%
|
|
|
|
0.0%
|
Organizational
realignment costs
|
|
|
1
|
|
0.4%
|
|
1
|
|
0.4%
|
Pre-acquisition
costs
|
|
|
|
|
0.0%
|
|
|
|
0.0%
|
Claim
settlement
|
|
|
1
|
|
0.4%
|
|
1
|
|
0.4%
|
Adjusted EBITDA
(non-GAAP)
|
|
|
$
85
|
|
30.9%
|
|
$
90
|
|
31.6%
|
INTERNAP CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
RECONCILIATION OF GAAP NET CASH FLOWS PROVIDED
BY OPERATING ACTIVITIES TO ADJUSTED EBITDA LESS CAPEX
A reconciliation of GAAP Net Cash Flows Provided by Operating
Activities to Adjusted EBITDA less CapEx for each of the periods
indicated is as follows (in thousands):
|
Three Months
Ended
|
Reconciliation of
GAAP Net Cash Flows provided by Operating
Activities to Adjusted EBITDA less CapEx:
|
June 30,
2017
|
|
|
March 31,
2017
|
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
|
|
Net Cash Flow
provided by operating activites:
|
$
14,787
|
|
|
$
7,264
|
|
|
$
14,019
|
|
|
|
|
|
|
|
|
|
|
Add :
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
7,563
|
|
|
7,336
|
|
|
7,816
|
|
Cash paid for income
taxes
|
148
|
|
|
-
|
|
|
120
|
|
Cash paid for exit
activities and restructuring
|
1,080
|
|
|
1,086
|
|
|
775
|
|
Cash paid for
strategic alternatives and related costs
|
171
|
|
|
189
|
|
|
816
|
|
Cash paid for
organizational realignment costs
|
912
|
|
|
267
|
|
|
261
|
|
Payment of debt
lender fees
|
-
|
|
|
2,583
|
|
|
1,716
|
|
Other working capital
changes
|
(1,610)
|
|
|
2,829
|
|
|
(5,356)
|
|
Adjusted EBITDA
(non-GAAP)
|
$
23,051
|
|
|
$
21,554
|
|
|
$
20,167
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Capital Expenditures
(CapEx)
|
$
6,748
|
|
|
$
5,989
|
|
|
$
14,402
|
|
Adjusted EBITDA less
CapEx
|
$
16,303
|
|
|
$
15,565
|
|
|
$
5,765
|
|
RECONCILIATION OF NET LOSS TO NORMALIZED NET
LOSS
Reconciliations of net loss, the most directly comparable GAAP
measure, to normalized net loss:
|
Three Months
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
Net loss
(GAAP)
|
$
(19,283)
|
|
$
(8,230)
|
|
$
(10,693)
|
Exit activities,
restructuring and impairments, including goodwill
impairment
|
4,628
|
|
1,023
|
|
152
|
Stock-based
compensation
|
534
|
|
598
|
|
1,542
|
Non-income tax
contingency
|
-
|
|
1,500
|
|
-
|
Strategic
alternatives and related costs
|
8
|
|
6
|
|
282
|
Organizational
realignment costs
|
295
|
|
287
|
|
1,417
|
Pre-acquisition
costs
|
95
|
|
-
|
|
-
|
Claim
settlement
|
713
|
|
-
|
|
-
|
Debt extinguishment
and modification expenses
|
7,105
|
|
747
|
|
1,716
|
Normalized net loss
(non-GAAP)
|
$
(5,905)
|
|
$
(4,069)
|
|
$
(5,584)
|
INTERNAP CORPORATION
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (Continued)
BUSINESS UNIT CONTRIBUTION AND BUSINESS UNIT
CONTRIBUTION MARGIN
Business unit contribution and business unit contribution
margin, which includes direct costs of sales and service, customer
support and sales and marketing for each of the periods indicated
is as follows (in thousands):
|
Three Months
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
Revenues:
|
|
|
|
|
|
INAP
COLO
|
$
52,044
|
|
$
53,339
|
|
$
55,827
|
INAP
CLOUD
|
17,598
|
|
18,794
|
|
18,488
|
Total
|
69,642
|
|
72,133
|
|
74,315
|
Direct costs of sales
and services, customer support and
|
|
|
|
|
sales
and marketing:
|
|
|
|
|
|
INAP
COLO*
|
30,060
|
|
33,416
|
|
35,837
|
INAP
CLOUD*
|
9,497
|
|
9,378
|
|
10,529
|
Total
|
39,557
|
|
42,794
|
|
46,366
|
Business Unit
Contribution:
|
|
|
|
|
|
INAP
COLO
|
21,984
|
|
19,923
|
|
19,990
|
INAP
CLOUD
|
8,101
|
|
9,416
|
|
7,959
|
Total
|
$
30,085
|
|
$
29,339
|
|
$
27,949
|
Business Unit
Contribution Margin:
|
|
|
|
|
|
INAP
COLO
|
42.2%
|
|
37.4%
|
|
35.8%
|
INAP
CLOUD
|
46.0%
|
|
50.1%
|
|
43.0%
|
Total
|
43.2%
|
|
40.7%
|
|
37.6%
|
|
|
|
|
|
|
* Excludes
facilities allocation
|
|
FREE CASH FLOW AND UNLEVERED FREE CASH
FLOW
Free cash flow and unlevered free cash flow are non-GAAP
measures. Free cash flow is net cash flows provided by operating
activities minus capital expenditures. Unlevered free cash flow is
free cash flow plus cash interest expense (in thousands):
|
Three Months
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
June 30,
2016
|
Net cash flows
provided by operating activities
|
$
14,787
|
|
$
7,264
|
|
$
14,019
|
Capital
expenditures:
|
|
|
|
|
|
Maintenance
capital
|
(1,018)
|
|
(790)
|
|
(1,675)
|
Growth
capital
|
(5,730)
|
|
(5,199)
|
|
(12,727)
|
Free cash flow
(non-GAAP)
|
8,039
|
|
1,275
|
|
(383)
|
|
|
|
|
|
|
Cash interest
expense
|
7,563
|
|
7,336
|
|
7,816
|
Unlevered free cash
flow (non-GAAP)
|
$
15,602
|
|
$
8,611
|
|
$
7,433
|
DATA CENTER PORTFOLIO
The following table presents an overview of the portfolio of
data center properties that INAP leases as of June 30, 2017:
Market
|
Gross
Square
|
Supporting
|
Office
&
|
Data
Center
|
Current
Raised
|
Occupied
SF
|
Occupied
|
Available
|
|
Feet (SF)
1
|
Infrustructure2
|
Other
|
Footprint SF
3
|
Floor
SF4
|
|
SF
%
|
Utility
|
|
|
|
|
|
|
|
|
Power
MegaWatts(MW)
|
Los
Angeles
|
124,651
|
11,323
|
17,475
|
95,853
|
25,055
|
14,659
|
59%
|
4.0
|
Dallas
|
112,700
|
23,763
|
21,023
|
67,914
|
20,972
|
15,782
|
75%
|
6.0
|
New York/New
Jersey
|
103,908
|
16,405
|
28,468
|
59,035
|
36,345
|
21,390
|
59%
|
8.0
|
Boston
|
116,699
|
47,779
|
11,587
|
57,333
|
51,608
|
21,005
|
41%
|
12.5
|
Atlanta
|
124,898
|
35,043
|
50,303
|
39,552
|
31,279
|
13,872
|
44%
|
7.5
|
Seattle
|
100,497
|
31,326
|
21,552
|
47,619
|
38,619
|
24,879
|
64%
|
7.0
|
Santa Clara/San
Jose
|
88,912
|
23,852
|
23,667
|
41,393
|
41,093
|
19,408
|
47%
|
8.0
|
Montreal
|
90,065
|
29,572
|
32,933
|
27,560
|
24,090
|
23,790
|
99%
|
12.0
|
Houston
|
43,913
|
7,925
|
15,599
|
20,389
|
20,389
|
9,650
|
47%
|
6.5
|
Phoenix
|
21,697
|
-
|
1,549
|
20,148
|
12,073
|
11,943
|
99%
|
4.0
|
Other5
|
23,085
|
-
|
1,148
|
21,937
|
19,867
|
15,358
|
77%
|
7.5
|
|
|
|
|
|
|
|
|
|
Total
|
951,025
|
226,988
|
225,304
|
498,734
|
321,391
|
191,736
|
60%
|
83.0
|
|
|
|
|
|
|
|
|
|
(1) Represents
total SF subject to our lease.
|
|
|
|
|
|
(2) Represents
SF for mechanical and utility rooms.
|
|
|
|
|
|
(3) Represents
total SF that is currently leased or available for lease but
excludes supporting infrastructure, office space, and common
area.
|
(4) Represents
data center footprint SF less unbuilt SF.
|
|
|
|
|
(5) Represents
Chicago, Miami, Northern Virginia, Oakland/San Francisco, London,
Amsterdam, Frankfurt, Hong Kong, Singapore, and Sydney.
|
* Estimated as of
June 30, 2017
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/inap-reports-second-quarter-2017-financial-results-300499004.html
SOURCE Internap Corporation