- Interxion Repor...
Interxion Reports Second Quarter 2012 Results
AMSTERDAM 8 August 2012 – Interxion Holding NV (NYSE: INXN), a leading European provider of carrier-neutral colocation data centre services, announced its results today for the three months ended 30 June 2012.
- Revenue for the quarter increased by 13% to €68.0 million (Q2 2011: €60.0 million)
- Adjusted EBITDA for the quarter increased by 19% to €27.8 million (Q2 2011: €23.3 million)
- Adjusted EBITDA margin for the quarter increased to 40.8% (Q2 2011: 38.9%)
- Net profit increased by 67% to €8.7 million (Q2 2011: €5.2 million)
- Capital expenditure, including intangible assets, was €42.6 million
“Interxion continued its strong execution in the second quarter, delivering financial results that were consistent with our expectations,” said Interxion Chief Executive Officer, David Ruberg. “We continue to see broad-based customer demand for our high quality, connectivity driven data centres, and we are pleased to have announced the opening of the initial phases of new data centres in the London and Paris markets.”
Revenue for the second quarter of 2012 was €68.0 million, a 13% increase over the second quarter of 2011 and a 3% increase over the first quarter of 2012. Recurring revenue was €62.9 million, a 12% increase over the second quarter of 2011 and a 1% increase over the first quarter of 2012. Recurring revenue was 92% of total revenue.
Cost of sales for the second quarter increased by 11% to €28.2 million, compared with the second quarter of 2011. Gross profit margin increased to 58.5%, compared with 57.5% in the same quarter of 2011. Sales and marketing costs in the second quarter were €4.7 million, up 2% compared with the same quarter in the previous year. General and administrative costs, excluding depreciation, amortisation, impairments, increase in provision for onerous lease contracts, and share-based payments, were €7.3 million, an increase of 11% compared with the second quarter of 2011. Depreciation, amortisation, and impairments increased by 7%, compared with the previous-year second quarter, to €10.2 million.
Net financing costs for the second quarter of 2012 were €3.9 million, compared with €6.0 million in the second quarter of 2011, primarily as a result of higher interest capitalization because of increased data centre construction.
Net profit was €8.7 million in the second quarter of 2012, up 67% from the second quarter of 2011. Earnings per share in the second quarter of 2012 were €0.13, an increase of 63%, on a weighted average of 68.0 million diluted shares compared to €0.08 on a weighted average of 67.5 million diluted shares in the second quarter of 2011.
Adjusted EBITDA for the second quarter of 2012 was €27.8 million, up 19% year-on-year. Adjusted EBITDA margin expanded to 40.8%, compared with 38.9% in the second quarter of the previous year.
Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €29.4 million, up 27% year-on-year. Capital Expenditure, including intangible assets, was €42.6 million in the second quarter 2012.
Cash and cash equivalents were €84.5 million at 30 June 2012, down from €142.7 million at year-end 2011. The company’s revolving credit facility was amended during the quarter and remains undrawn.
Equipped space at the end of the second quarter 2012 was 65,300 square metres compared with 61,500 square metres at the end of the second quarter of 2011 and 64,800 square metres at the end of the first quarter of 2012. Revenue generating space was 48,600 square metres at the end of the second quarter 2012, compared to 45,300 square metres at the end of the second quarter of 2011 and 47,500 square metres at the end of the first quarter of 2012. Utilisation rate, the ratio of revenue-generating space to equipped space, was 74%, the same as the second quarter of 2011, and up from 73% in the first quarter of 2012.
The company today reaffirmed its guidance for 2012:
|Revenue||€275 million – €285 million|
|Adjusted EBITDA||€112 million – €120 million|
|Capital Expenditure (including intangibles)||€170 million – €190 million|
Conference Call to Discuss Results
The company will host a conference call today at 8:30am ET (1:30pm BST, 2:30pm CET) to discuss the results.
To participate in this call, US callers may dial toll free, 1-866-966-9439; callers outside the US may dial direct, +44 (0)1452 555 566. The conference ID for this call is 97898814. This event will also be webcast live over the Internet in listen-only mode at investors.interxion.com.
A replay of the call will be available from shortly after it ends until 14 August 2012. To access the replay, US callers may dial toll free, 1-866-247-4222; callers outside the US may dial direct, +44 (0)1452 550 000. The replay access number is 97898814#.
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.
Use of Non-IFRS Information
EBITDA is defined as operating profit plus depreciation, amortization and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments, increase/decrease in provision for onerous lease contracts, IPO transaction costs, and income from sub-leases on unused data centre sites. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. We present EBITDA, Adjusted EBITDA and Adjusted EBITDA margin as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in our €60 million revolving credit facility and €260 million 9.50% Senior Secured Notes due 2017. However, other companies may present EBITDA, Adjusted EBITDA and Adjusted EBITDA margin differently than we do. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin 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 from Operating Profit to EBITDA and Adjusted EBITDA is provided in the Notes to Consolidated Income Statement: Adjusted EBITDA reconciliation later in this press release.
Interxion does not provide forward-looking estimates of Operating Profit, Depreciation, Amortization, and Impairments, Share-based Payments, or increase/decrease in provision for onerous lease contracts, IPO transaction costs, abandoned transaction costs, income from sub-leases on unused data centre sites and net insurance compensation benefit, which it uses to reconcile to Adjusted EBITDA. The Company is, therefore, unable to provide reconciling information for Adjusted EBITDA.