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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 September 2012.
Financial Highlights
Revenue increased by 14% to €70.4 million (Q3 2011: €62.0 million)
Adjusted EBITDA increased by 15% to €28.7 million (Q3 2011: €25.0
million)
Adjusted EBITDA margin increased to 40.8% (Q3 2011: 40.3%)
Net profit increased by 24% to €8.6 million (Q3 2011: €6.9 million)
Capital expenditure, including intangible assets, was €46.5 million
Operating Highlights
New data centres opened in Amsterdam and London
Equipped Space increased by 4,300 square metres in the third quarter
to 69,600 square metres
Revenue Generating Space increased by 2,600 square metres in the third
quarter to 51,200 square metres
Utilisation Rate was 74% at the end of the quarter
Announced expansion projects remain on schedule
“Interxion again delivered solid financial and operational results and
significantly grew both equipped and revenue generating space,” said
Interxion Chief Executive Officer, David Ruberg. “Our market strategy
that focuses on creating value for our customers by building communities
of interest continues to pay off. We saw particular strength from cloud
service providers and financial services segments who derive value in
their own businesses from the rich, low latency connectivity and robust
communities of interest available in our highly reliable data centres.”
Quarterly Review
Revenue for the third quarter of 2012 was €70.4 million, a 14% increase
over the third quarter of 2011 and a 4% increase over the second quarter
of 2012. Recurring revenue was €65.1 million, a 12% increase over the
third quarter of 2011 and a 4% increase over the second quarter of 2012.
Recurring revenue was 92% of total revenue.
Cost of sales for the third quarter increased by 13% to €29.4 million,
compared with the third quarter of 2011. Gross profit margin increased
to 58.3%, compared with 58.1% in the same quarter of 2011. Sales and
marketing costs in the third quarter were €5.1 million, up 20% compared
with the same quarter in the previous year. General and administrative
costs1, were €7.2 million, an increase of 6% compared with
the third quarter of 2011. Depreciation, amortisation, and impairments
increased by 21%, compared with the previous-year third quarter, to
€11.0 million.
Net financing costs for the third quarter of 2012 were €3.8 million,
compared with €5.3 million in the third quarter of 2011, primarily as a
result of higher interest capitalization because of increased data
centre construction.
Net profit was €8.6 million in the third quarter of 2012, up 24% from
the third quarter of 2011. Earnings per share in the third quarter of
2012 were €0.12, an increase of 21%, on a weighted average of 68.7
million diluted shares compared to €0.10 on a weighted average of 67.5
million diluted shares in the third quarter of 2011.
Adjusted EBITDA for the third quarter of 2012 was €28.7 million, up 15%
year-on-year. Adjusted EBITDA margin expanded to 40.8%, compared with
40.3% in the third 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 €24.1 million. Capital Expenditure, including intangible
assets, was €46.5 million in the third quarter 2012.
Cash and cash equivalents were €55.2 million at 30 September 2012, down
from €142.7 million at year-end 2011. The Company’s €60.0 million
revolving credit facility remains undrawn.
Equipped space at the end of the third quarter 2012 was 69,600 square
metres, compared with 62,200 square metres at the end of the third
quarter of 2011 and 65,300 square metres at the end of the second
quarter of 2012. Revenue generating space was 51,200 square metres at
the end of the third quarter 2012, compared to 46,100 square metres at
the end of the third quarter of 2011 and 48,600 square metres at the end
of the second quarter of 2012. Utilisation rate, the ratio of
revenue-generating space to equipped space, was 74% at the end of the
quarter, the same as the third quarter of 2011 and the second quarter of
2012.
1 excluding depreciation, amortisation, impairments, increase
in provision for onerous lease contracts, and share-based payments
Business Outlook
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 GMT,
2:30pm CET) to discuss the results.
To participate on this call, U.S. callers may dial toll free
1-866-295-3947; callers outside the U.S. may dial direct +44 (0) 1452
561 394. The conference ID for this call is 39820449. 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 until 14 November 2012. 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 39820449.
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.
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, Amortisation, 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.
About Interxion
Interxion (NYSE: INXN) is a leading provider of carrier-neutral
colocation data centre services in Europe, serving a wide range of
customers through 32 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 over 400 carriers and ISPs and 18 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 NV
CONSOLIDATED INCOME STATEMENT
(in €'000 - except per share data and where stated otherwise)
(unaudited)
Three Months Ended
Nine Months Ended
30-Sep
30-Sep
30-Sep
30-Sep
2012
2011
2012
2011
Revenue
70,425
62,005
204,241
179,920
Cost of sales
(29,400
)
(25,969
)
(84,129
)
(76,271
)
Gross profit
41,025
36,036
120,112
103,649
Other income
111
99
343
341
Sales and marketing costs
(5,083
)
(4,234
)
(14,597
)
(13,037
)
General and administrative costs
(19,443
)
(16,594
)
(55,457
)
(50,389
)
Operating profit
16,610
15,307
50,401
40,564
Net finance expense
(3,778
)
(5,255
)
(12,089
)
(17,829
)
Profit before taxation
12,832
10,052
38,312
22,735
Income tax expense
(4,270
)
(3,161
)
(12,330
)
(7,812
)
Net profit
8,562
6,891
25,982
14,923
Basic earnings per share: (€)
0.13
0.10
0.39
0.23
Diluted earnings per share: (€)
0.12
0.10
0.38
0.23
Number of shares outstanding at the end of the period (shares in
thousands)
67,950
65,823
67,950
65,823
Weighted average number of shares for Basic EPS (shares in thousands)
67,776
65,742
67,069
63,528
Weighted average number of shares for Diluted EPS (shares in
thousands)
68,659
67,488
67,936
65,223
Capacity Metrics
Equipped space (in square meters)
69,600
62,200
69,600
62,200
Revenue generating space (in square meters)
51,200
46,100
51,200
46,100
Utilisation rate
74
%
74
%
74
%
74
%
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION
(in €'000 - except where stated otherwise)
(unaudited)
Three Months Ended
Nine Months Ended
30-Sep
30-Sep
30-Sep
30-Sep
2012
2011
2012
2011
Consolidated
Recurring revenue
65,101
58,225
190,247
168,611
Non-recurring Revenue
5,324
3,780
13,994
11,309
Revenue
70,425
62,005
204,241
179,920
Adjusted EBITDA
28,726
25,005
83,828
70,536
Gross Margin
58.3
%
58.1
%
58.8
%
57.6
%
Adjusted EBITDA Margin
40.8
%
40.3
%
41.0
%
39.2
%
Total assets
769,644
708,410
769,644
708,410
Total liabilities
400,504
392,391
400,504
392,391
Capital expenditure, including intangible assets (i)
(46,468
)
(54,943
)
(150,140
)
(93,413
)
France, Germany, Netherlands, and UK
Recurring revenue
39,828
34,470
116,287
100,276
Non-recurring Revenue
3,950
1,950
10,149
6,912
Revenue
43,778
36,420
126,436
107,188
Adjusted EBITDA
22,395
18,473
65,800
53,216
Gross Margin
60.1
%
59.9
%
60.9
%
59.0
%
Adjusted EBITDA Margin
51.2
%
50.7
%
52.0
%
49.6
%
Total assets
518,004
335,727
518,004
335,727
Total liabilities
90,654
86,705
90,654
86,705
Capital expenditure, including intangible assets (i)
(37,935
)
(41,008
)
(124,990
)
(62,827
)
Rest of Europe
Recurring revenue
25,273
23,755
73,960
68,335
Non-recurring Revenue
1,374
1,830
3,845
4,397
Revenue
26,647
25,585
77,805
72,732
Adjusted EBITDA
13,805
13,162
40,689
37,423
Gross Margin
60.8
%
60.7
%
61.2
%
60.9
%
Adjusted EBITDA Margin
51.8
%
51.4
%
52.3
%
51.5
%
Total assets
192,261
174,732
192,261
174,732
Total liabilities
41,141
38,812
41,141
38,812
Capital expenditure, including intangible assets (i)
(7,047
)
(13,650
)
(21,818
)
(28,453
)
Corporate and Other
Adjusted EBITDA
(7,474
)
(6,630
)
(22,661
)
(20,103
)
Total assets
59,379
197,951
59,379
197,951
Total liabilities
268,709
266,874
268,709
266,874
Capital expenditure, including intangible assets (i)
(1,486
)
(285
)
(3,332
)
(2,133
)
(i) Capital expenditure, including intangible assets, represents
payments to acquire property, plant and equipment and intangible
assets,as recorded in the consolidated statement of cash
flows as "Purchase of property, plant and equipment" and "Purchase
of intangibleassets" respectively.
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: Adjusted EBITDA
reconciliation
(in €'000 - except where stated otherwise)
(unaudited)
Three Months Ended
Nine Months Ended
30-Sep
30-Sep
30-Sep
30-Sep
2012
2011
2012
2011
Reconciliation to adjusted EBITDA
Consolidated
Operating profit
16,610
15,307
50,401
40,564
Depreciation, amortization and impairments
11,031
9,087
30,922
27,181
EBITDA
27,641
24,394
81,323
67,745
Share-based payments
1,196
710
2,848
1,389
Increase/(decrease) in provision for onerous lease contracts
-
-
-
18
IPO transaction costs (ii)
-
-
-
1,725
Income from sub-leases on unused data center sites
(111
)
(99
)
(343
)
(341
)
Adjusted EBITDA
28,726
25,005
83,828
70,536
France, Germany, Netherlands, and UK
Operating profit
15,798
13,385
48,011
37,300
Depreciation, amortization and impairments
6,526
5,118
17,627
16,017
EBITDA
22,324
18,503
65,638
53,317
Share-based payments
182
69
505
222
Increase/(decrease) in provision for onerous lease contracts
-
-
-
18
Income from sub-leases on unused data center sites
(111
)
(99
)
(343
)
(341
)
Adjusted EBITDA
22,395
18,473
65,800
53,216
Rest of Europe
Operating profit
9,796
9,681
28,977
27,533
Depreciation, amortization and impairments
3,904
3,411
11,393
9,698
EBITDA
13,700
13,092
40,370
37,231
Share-based payments
105
70
319
192
Adjusted EBITDA
13,805
13,162
40,689
37,423
Corporate and Other
Operating Profit/(Loss)
(8,984
)
(7,759
)
(26,587
)
(24,269
)
Depreciation, amortization and impairments
601
558
1,902
1,466
EBITDA
(8,383
)
(7,201
)
(24,685
)
(22,803
)
Share-based payments
909
571
2,024
975
IPO transaction costs (ii)
-
-
-
1,725
Adjusted EBITDA
(7,474
)
(6,630
)
(22,661
)
(20,103
)
(ii) The IPO transaction costs represent the write off of the
proportion of the IPO costs allocated to the selling shareholders at
the InitialPublic Offering.
INTERXION HOLDING NV
CONSOLIDATED BALANCE SHEET
(in €'000 - except where stated otherwise)
(unaudited)
As at
30-Sep
31-Dec
2012
2011
Non-current Assets
Property, plant and equipment
583,809
477,798
Intangible assets
18,162
12,542
Deferred tax assets
32,394
39,557
Financial fixed assets
774
–
Other non-current assets
4,525
3,841
639,664
533,738
Current Assets
Trade and other current assets
74,828
67,874
Cash and cash equivalents
55,152
142,669
129,980
210,543
Total Assets
769,644
744,281
Shareholders’ Equity
Share capital
6,796
6,613
Share premium
475,185
466,166
Foreign currency translation reserve
10,781
7,386
Accumulated deficit
(123,622
)
(149,604
)
369,140
330,561
Non-current Liabilities
Trade payables and other liabilities
10,858
10,294
Deferred tax liabilities
2,722
1,742
Provision for onerous lease contracts
8,503
10,618
Borrowings
257,758
257,267
279,841
279,921
Current Liabilities
Trade payables and other liabilities
113,799
127,639
Income tax liabilities
3,582
2,249
Provision for onerous lease contracts
3,180
3,108
Borrowings
102
803
120,663
133,799
Total Liabilities
400,504
413,720
Total Liabilities and Shareholders’ Equity
769,644
744,281
INTERXION HOLDING NV
NOTES TO THE CONSOLIDATED BALANCE SHEET: BORROWINGS
(iii) Cash and cash equivalents includes €5.6 million as of
September 30, 2012 and €4.8 million as of December 31, 2011, which
is restrictedand held as collateral to support the issuance
of bank guarantees on behalf of a number of subsidiary companies.
(iv) €260 million 9.5% Senior Secured Notes due 2017 include
premium on additional issue and are shown after deducting
underwritingdiscounts and commissions, offering fees and
expenses.
(v) Deferred financing costs of €1.5 million incurred in
connection with the €60 million revolving credit facility, which is
currently undrawn.
INTERXION HOLDING NV
CONSOLIDATED STATEMENT OF CASH FLOWS
(in €'000 - except where stated otherwise)
(unaudited)
Three Months Ended
Nine Months Ended
30-Sep
30-Sep
30-Sep
30-Sep
2012
2011
2012
2011
Profit for the period
8,562
6,891
25,982
14,923
Depreciation, amortization and impairments
11,031
9,087
30,922
27,181
IPO transaction costs
-
-
-
1,725
Unwinding provision for onerous lease contracts
(793
)
(750
)
(2,372
)
(2,303
)
Share-based payments
1,196
710
2,848
1,389
Net finance expense
3,778
5,255
12,089
17,829
Income tax expense
4,270
3,161
12,330
7,812
28,044
24,354
81,799
68,556
Movements in trade and other current assets
(3,291
)
(2,316
)
(7,076
)
(7,995
)
Movements in trade and other liabilities
(687
)
1,723
4,128
6,913
Cash Generated from Operations
24,066
23,761
78,851
67,474
Interest paid (vi)
(7,476
)
(11,598
)
(17,607
)
(24,178
)
Interest received
414
704
734
1,241
Income tax paid
(1,320
)
(392
)
(3,622
)
(1,544
)
Net Cash Flows from Operating Activities
15,684
12,475
58,356
42,993
Cash Flows from Investing Activities
Purchase of property, plant and equipment
(43,823
)
(53,763
)
(145,046
)
(89,127
)
Disposals of property, plant and equipment
-
-
-
945
Purchase of intangible assets
(2,645
)
(1,180
)
(5,094
)
(4,286
)
Acquisition financial fixed assets
-
-
(774
)
-
Movement in short-term investments
-
50,000
-
(40,000
)
Net Cash Flows from Investing Activities
(46,468
)
(4,943
)
(150,914
)
(132,468
)
Cash Flows from Financing Activities
Proceeds from exercised options
1,621
698
6,725
3,022
Proceeds from issuance of new shares
-
-
-
142,952
Repayment of "Liquidation Price" to former preferred shareholders
-
-
-
(3,055
)
Senior Secured Notes and RCF
(204
)
-
(1,159
)
(645
)
Other Borrowings
(59
)
(678
)
(740
)
(2,265
)
Net Cash Flows from Financing Activities
1,358
20
4,826
140,009
Effect of exchange rate changes on cash
92
16
215
(110
)
Net Movement in Cash and Cash Equivalents
(29,334
)
7,568
(87,517
)
50,424
Cash and cash equivalents, beginning of period
84,486
141,971
142,669
99,115
Cash and Cash Equivalents, End of Period
55,152
149,539
55,152
149,539
(vi) Interest paid is reported net of cash interest capitalized
which is reported as part of “Purchase of property, plant and
equipment".
INTERXION HOLDING NV
Status of Announced Expansion Projects as at 31 October 2012
with Target Open Dates in 2012 & 2013
Market
Project
CAPEX (a, b)
Equipped Space (a)
Target Opening
(€ million)
(Sqm)
Stockholm
STO 1: Phase 4 Expansion
€ 5
500
1Q 2012 (opened)
Frankfurt
FRA 7: New Build
€ 21
1,500
1Q 2012 (opened)
Paris
PAR 7 : Phase 1 New Build
€ 70
4,500
2Q 2012 (opened) (c)
Amsterdam
AMS 6: New Build
€ 60
4,400
3Q 2012 (opened) (d)
London
LON 2: New Build
€ 38
1,500
3Q 2012 (opened) (e)
Amsterdam
AMS 5: Phase 4 Expansion
€ 12
1,000
4Q 2012
Zurich
ZUR 1: Phase 3 Expansion
€ 4
600
4Q 2012
Madrid
MAD 2: Phase 1 New Build
€ 10
800
1Q 2013
Total
€ 220
14,800
(a) CAPEX and Equipped Space are approximate and may change.
(b) CAPEX reflects the total for the listed project at full power
and capacity and may not be all invested in the current year.
(c) Opened 500 sqm in 2Q 2012 and 1500 sqm in 3Q 2012; remaining
2500 sqm scheduled to open in 1Q 2013.
(d) Opened 1700 sqm in 3Q 2012 for early customer access;
remainder of the facility opened on schedule
(e) 1100 sqm opened in 3Q 2012; remainder scheduled to open in 4Q
2012.
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The New York-based acquisition will remain a separate business with...
Daryl Taft’s article in eWeek reminded me that next month, on June 6th. IBM’s DB2 RDBMS product will celebrate its 30th. anniversary. This has a personal significance for me. I was part of the DB2 planning team then and on … 
“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Secu...
