Interxion Holding NV (INXN:NYSE), a leading European provider of
carrier-neutral colocation data centre services, announced its
results today for the three months ended 31 March 2011.
Highlights
- Revenue increased by 21% to €57.9
million (Q1 2010: €47.8 million)
- Adjusted EBITDA increased by 27% to
€22.2 million (Q1 2010: €17.4 million)
- Adjusted EBITDA margin increased to
38.4% (Q1 2010: 36.5%)
- Net profit of €2.8 million (Q1 2010:
€4.7 million loss)
- Capital Expenditures of €19.1 million
during the quarter
- 2011 annual guidance reaffirmed
“The first quarter of 2011 was Interxion’s 18th consecutive
quarter of sequential quarterly growth in revenue and Adjusted
EBITDA,” said Chief Executive Officer David Ruberg. “These results
are in line with our plans and attributable to the execution of our
market segmentation strategy and providing our targeted communities
of interest with the excellent products and quality of service that
they require.”
Quarterly Highlights
Revenue for the first quarter was €57.9 million, a 21% increase
over the first quarter of 2010 and a 4.2% increase from the fourth
quarter 2010. Recurring revenue was 94% of total revenue.
Cost of sales for the first quarter increased by 14% to €24.8
million, leading to an increased gross profit margin of 57.2%.
Sales and marketing costs in the first quarter were €4.2 million,
up 27% as a result of our continued investment in the company’s
market segmentation strategy. General and administrative costs,
excluding depreciation, amortisation, exceptional general and
administrative costs, and share-based payments of €6.7 million,
increased by 27% and were adversely impacted by the onset of public
company costs. Depreciation and amortisation increased by 19% to
€8.5 million.
Net financing costs were €6.6 million, down from €13.5 million
in the first quarter 2010. First quarter 2010 costs included a
non-recurring charge of €10.2 million related to the debt
refinancing in February 2010.
Adjusted EBITDA was €22.2 million, up 27% year over year.
Adjusted EBITDA margin expanded to 38.4% as the company’s increased
scale provided greater operating leverage.
Net profit was €2.8 million in the first quarter 2011.
Cash generated from operations, defined as cash generated from
operating activities before interest and tax payments and receipts,
was €20.7 million. Net cash used in investing activities was €19.5
million, including €19.1 million of capital expenditures. Cash
generated from financing activities was €141.4 million, reflecting
the proceeds from the IPO.
Cash and equivalents were €229.3 million, up from €99.1 million
at year end.
Equipped space at the end of the period was 61,000 square
metres. Utilisation rate, the ratio of revenue-generating space to
equipped space, was 73%, up from 72% in the first quarter 2010.
Business Outlook
The company’s outlook for 2011 is reaffirmed:
Revenue €239 million - €245 million Adjusted EBITDA
€91 million - €95 million Capital Expenditures €140 million - €160
million
Conference Call to Discuss Results
The Company will host a conference call at 8:30 a.m. EDT (1:30
p.m. BST) on 17 May to discuss the results.
To participate on this call, U.S. callers may dial toll free
1-866-926-5708; callers outside the U.S. may dial direct +44 (0)
1452 560 304. The conference ID for this call is 66158917. This
event also will be webcast live over the Internet in listen-only
mode at investors.interxion.com.
A replay of this call will be available shortly after the call
concludes and will be available through 23 May. To access the
replay, U.S. callers may dial toll free 1-866-247-4222; callers
outside the U.S. may dial direct +44 (0) 1452 55 00 00. The replay
access number is 66158917#.
-ends-
Forward Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. Actual results may differ
materially from expectations discussed in such forward-looking
statements. Factors that might cause such differences include, but
are not limited to, the difficulty of reducing operating expenses
in the short term, inability to utilise the capacity of newly
planned data centres and data centre expansions, significant
competition, the cost and supply of electrical power, data centre
industry over-capacity, performance under service level agreements
and other risks described from time to time in Interxion's filings
with the Securities and Exchange Commission. Interxion does not
assume any obligation to update the forward-looking information
contained in this press release.
Adjusted EBITDA
EBITDA is defined as operating profit plus depreciation,
amortisation and impairment of assets. We define Adjusted EBITDA as
EBITDA adjusted to exclude share-based payments and exceptional and
non-recurring items, and to include share of profits (losses) of
non-group companies. We present EBITDA and Adjusted EBITDA as
additional information because we understand that they are measures
used by certain investors and because they are used in our
financial covenants in our €50 million revolving credit facility
and €260 million 9.50% Senior Secured Notes due 2017. However,
other companies may present EBITDA and Adjusted EBITDA differently
than we do. EBITDA and Adjusted EBITDA are not measures of
financial performance under IFRS and should not be considered as an
alternative to operating profit or as a measure of liquidity or an
alternative to net income as indicators of our operating
performance or any other measure of performance derived in
accordance with IFRS.
A reconciliation of Adjusted EBITDA to operating profit is
provided in the Notes to the Consolidated Income Statement: Group
Metrics.
About Interxion
Interxion (NYSE: INXN) is a leading provider of carrier-neutral
colocation data centre services in Europe, serving over 1,200
customers through 28 data centres in 11 European countries.
Interxion’s uniformly designed, energy-efficient data centres offer
customers extensive security and uptime for their mission-critical
applications. With connectivity provided by 350 carriers and ISPs
and 20 European Internet exchanges across its footprint, Interxion
has created content and connectivity hubs that foster growing
customer communities of interest. For more information, please
visit www.interxion.com.
INTERXION HOLDING NVCONSOLIDATED INCOME
STATEMENTS'(in €'000 - except per share data and where stated
otherwise)(unaudited)
Three Months Ended 31-Mar
31-Mar
2011 2010
Revenue 57,892
47,815
Cost of sales
(24,780 ) (21,773 )
Gross profit 33,112 26,042
Other income
127 108
Sales and marketing costs
(4,212 ) (3,325 )
General and administrative costs
(17,299 ) (12,833 )
Operating profit 11,728
9,992
Finance income
513 79
Finance expense
(7,101 ) (13,558 )
Profit before taxation 5,140
(3,487 )
Income tax (expense) / benefit
(2,332 ) (1,247 )
Net profit 2,808
(4,734 ) Basic earnings per share: (€) (i)
0.05 (0.11 ) Diluted earnings per share: (€) (i) 0.05 (0.10 )
Number of shares outstanding
at the end of the period (shares in thousands)
65,577 44,351
Weighted average number of
shares for Basic EPS (shares in thousands)
59,146 44,351
Weighted average number of
shares for Diluted EPS (shares in thousands)
61,477 47,567
(i) Number of shares have been adjusted to take account of the 1
for 5 reverse stock split which took place on 2 February 2011.
INTERXION HOLDING NVNOTES TO
CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION'(in €'000 -
except where stated otherwise)(unaudited)
Three
Months Ended 31-Mar 31-Mar
2011 2010
Consolidated
Recurring revenue
54,142 44,729
Non-recurring Revenue
3,750 3,086
Revenue
57,892 47,815 Adjusted EBITDA
22,210 17,444 Gross Margin
57.2 % 54.5 % Adjusted EBITDA
Margin 38.4 % 36.5 % Total
assets 692,175 452,260 Total liabilities 392,682 321,705 Capital
expenditures (iv) (19,124 ) (28,650 ) Depreciation and amortization
(8,526 ) (7,187 )
France, Germany,
Netherlands, and UK
Recurring revenue
32,245 26,482
Non-recurring Revenue
2,427 2,038
Revenue 34,672
28,520 Adjusted EBITDA 16,779
12,687 Gross Margin 58.5 %
54.4 % Adjusted EBITDA Margin 48.4
% 44.5 % Total assets 298,005 241,947
Total liabilities 88,922 108,078 Capital expenditures (iv) (12,340
) (15,639 ) Depreciation and amortization (5,146 ) (4,511 )
Rest of
Europe
Recurring revenue
21,897 18,247
Non-recurring Revenue
1,323 1,048
Revenue 23,220
19,295 Adjusted EBITDA 12,102
9,768 Gross Margin 61.1 %
60.2 % Adjusted EBITDA Margin 52.1
% 50.6 % Total assets 152,566 136,455
Total liabilities 35,768 50,749 Capital expenditures (iv) (6,264 )
(12,213 ) Depreciation and amortization (2,998 ) (2,368 )
Corporate and
Other
Adjusted EBITDA (6,671 )
(5,011 ) Total assets 241,604 73,858 Total
liabilities 267,992 162,878 Capital expenditures (iv) (520 ) (798 )
Depreciation and amortization (382 ) (308 )
(iv) Capital expenditures represent payments to acquire tangible
fixed assets as recorded in the consolidated statement of cash
flows as' "Purchase of property, plant and
equipment".
INTERXION HOLDING NVNOTES TO
CONSOLIDATED INCOME STATEMENT: GROUP METRICS'(in €'000 - except
where stated otherwise)(unaudited)
Three
Months Ended 31-Mar 31-Mar
2011 2010
1. Reconciliation of
adjusted EBITDA
Adjusted EBITDA 22,210 17,444
Income from subleases on
unused data centre sites
127 108
Exceptional income
127 108
(Increase)/decrease in
provision for onerous lease contracts
(18 ) (108 )
IPO transaction costs (v)
(1,725 ) -
Share based payments
(340 ) (265 )
Exceptional general and
adminsitrative costs
(2,083 ) (373 ) EBITDA
20,254 17,179
Depreciation and
amortization
(8,526 ) (7,187 )
Operating profit 11,728
9,992
2. Capacity
Metrics
Equiped space (in sqm) 61,000 55,800 Revenue generating space (in
sqm) 44,600 40,100 Utilization rate 73 % 72 %
(v) The IPO transaction costs represent the write off of the
proportion of the IPO costs allocated to the selling shareholders
at the Initial Public Offering.
INTERXION HOLDING NVCONSOLIDATED BALANCE
SHEET'(in €'000 - except where stated otherwise)(unaudited)
As at 31-Mar 31-Dec
2011
2010
Non-current assets
Property, plant and
equipment
352,541 342,420
Intangible assets
6,202 6,005
Deferred tax assets
41,738 39,841
Other non-current assets
3,538 3,709
404,019 391,975 Current
assets
Trade and other current
assets
58,897 55,672
Cash and cash equivalents
229,259 99,115
288,156 154,787
Total assets 692,175 546,762
Shareholders’ equity
Share capital
6,558 4,434
Share premium
462,675 321,078
Foreign currency translation
reserve
2,628 4,933
Accumulated deficit
(172,368 ) (175,176 )
299,493 155,269 Non-current
liabilities
Trade and other
liabilities
8,956 7,795
Deferred tax liability
1,302 660
Provision for onerous lease
contracts
12,609 13,260
Borrowings
257,534 257,403
280,401 279,118
Current liabilities
Trade and other
liabilities
106,847 106,038
Current tax liabilities
661 868
Provision for onerous lease
contracts
3,087 3,073
Borrowings
1,686 2,396
112,281 112,375
Total liabilities 392,682
391,493 Total liabilities and shareholders’
equity 692,175 546,762
INTERXION HOLDING NVNOTES TO THE
CONSOLIDATED BALANCE SHEET: BORROWINGS'(in €'000 - except where
stated otherwise)(unaudited)
As at
31-Mar 31-Dec
2011 2010
3. Borrowings net of
cash and cash equivalents
Cash and cash equivalents (vi) 229,259
99,115
9.5% Senior Secured Notes due
2017 (vii)
255,083 254,924
Financial Leases
652 765
Other Borrowings
3,485 4,110
Borrowings excluding revolving credit
facility deferred financing costs 259,220
259,799
Revolving credit facility
deferred financing costs (viii)
(1,129 ) (1,283 )
Total Borrowings 258,091
258,516 Borrowings net of cash and
cash equivalents 28,832 159,401
(vi) Cash and cash equivalents includes €4.2 million as of March
31, 2011 and December 31, 2010, which is restricted and held as
collateral' to support the issuance of bank
guarantees on behalf of a number of subsidiary companies.
(vii) €260 million 9.5% Senior Secured Notes due 2017 include
premium on additional issue and are shown after deducting
underwriting' discounts and commissions,
offering fees and expenses.
(viii) We reported deferred financing costs of €1.1 million in
connection with entering into our €50 million revolving credit
facility which is' currently undrawn.
INTERXION HOLDING NVCONSOLIDATED STATEMENT
OF CASH FLOWS'(in €'000 - except where stated
otherwise)(unaudited)
Three Months
Ended 31-Mar 31-Mar
2011
2010
Profit for the period
2,808 (4,734 )
Depreciation and
amortization
8,526 7,187
IPO transaction costs (ix)
1,725 -
Provision for onerous lease
contracts
(774 ) (583 )
Share-based payments
340 265
Net finance expense
6,588 13,479
Income tax expense
2,332 1,247 21,545 16,861
Movements in trade and other
current assets
(7,283 ) 4,935
Movements in trade and other
liabilities
6,415 2,331
Cash generated from operations
20,677 24,127
Interest paid
(12,159 ) (721 )
Interest received
271 85
Income tax paid
(687 ) (76 )
Net cash flows from operating activities
8,102 23,415 Cash flow from investing
activities
Purchase of property, plant
and equipment
(19,124 ) (28,650 )
Purchase of intangible
assets
(394 ) (357 )
Net cash flows from investing activities
(19,518 ) (29,007 ) Cash flow from
financing activities
Proceeds from exercised
options
2,324 -
Proceeds from issuance new
shares
143,352 -
Repayment of 'Liquidation
Price' to former preferred shareholders
(3,055 ) -
Proceeds/(repayment) bank
facilities
- (159,046 )
Proceeds from Senior Secured
Notes and RCF
(439 ) 192,015
Other Borrowings
(739 ) (1,046 )
Net cash flows from financing activities
141,443 31,923
Effect of exchange rate
changes on cash
117 145
Net movement in cash and cash
equivalents 130,144 26,476
Cash and cash equivalents,
beginning of period
99,115 32,003
Cash and cash equivalents, end of
period 229,259 58,479
(ix) The IPO transaction costs represent the write off of the
proportion of the IPO costs allocated to the selling shareholders
at the Initial Public Offering.
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