New book by Larry Connors Click here Improve your trading - See how
--Raised 2009 annual revenue guidance to $875.0 million to $880.0 million and adjusted EBITDA guidance to $395.0 million to $400.0 million
Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended September 30, 2009.
Revenues were $227.6 million for the third quarter, a 7% increase over the previous quarter, and a 24% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services, were $218.3 million for the third quarter, a 6% increase over the previous quarter, and a 26% increase over the same quarter last year. Non-recurring revenues were $9.3 million in the quarter, consisting primarily of professional services and installation fees.
Cost of revenues was $126.0 million for the third quarter, a 6% increase over the previous quarter and a 15% increase over the same quarter last year. Excluding depreciation, amortization, accretion and stock-based compensation of $44.1 million for the third quarter, cost of revenues was $81.9 million for the third quarter, which the Company refers to as cash cost of revenues, a 9% increase over the previous quarter, and a 16% increase over the same quarter last year. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 64%, down from 65% the previous quarter and up from 62% the same quarter last year.
Selling, general and administrative expenses were $54.6 million for the third quarter, a 1% increase from the previous quarter and a 6% increase over the same quarter last year. Excluding depreciation, amortization and stock-based compensation of $15.0 million for the third quarter, selling, general and administrative expenses were $39.6 million for the third quarter, which the Company refers to as cash selling, general and administrative expenses, a 3% increase over the previous quarter, and a 9% increase over the same quarter last year. Interest and other expenses, net, was $19.4 million for the quarter, a 54% increase over the previous quarter, and a 23% increase over the same quarter last year.
Net income for the third quarter was $18.8 million compared to net income of $17.4 million in the previous quarter and net income of $5.6 million in the same quarter last year. This represents a basic net income per share of $0.49 based on a weighted average share count of 38.8 million and a diluted net income per share of $0.47 based on a weighted average share count of 39.9 million for the third quarter of 2009.
Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation expense, restructuring charges and acquisition costs, for the third quarter was $106.0 million, an increase of 7% from the previous quarter, and up 38% from the same quarter last year.
"Equinix delivered strong results in the third quarter, driven by solid demand and sound execution across all areas of the business," said Steve Smith, president and CEO of Equinix. "As we have continued our disciplined expansion strategy throughout the challenging macroeconomic climate of the past several quarters, we are well positioned to continue building upon our global market leadership position, and we continue to see a strong opportunity in front of us as the economy begins to recover."
Capital expenditures in the third quarter were $88.7 million, of which $14.7 million was attributed to ongoing capital expenditures and $74.0 million was attributed to expansion capital expenditures.
The Company generated cash from operating activities of $107.5 million for the third quarter as compared to $78.7 million in the previous quarter, and $63.3 million the same quarter last year. Cash used in investing activities was $260.5 million in the third quarter as compared to $204.1 million in the previous quarter and $82.4 million for the same quarter last year.
As of September 30, 2009, the Company's cash, cash equivalents and investments were $627.4 million, as compared to $603.4 million as of June 30, 2009.
Company Metrics
-- To view Equinix's Non-Financial Metrics, please visit the Investors section of Equinix's web site at www.equinix.com/investors and click on View Equinix's Non-Financial Metrics
Changes in Estimates -- Property, Plant and Equipment
During the three months ended September 30, 2009, the Company reassessed the estimated useful lives of its property, plant and equipment as part of a review of the assumptions used to estimate the useful lives of its property, plant and equipment. This reassessment has generally resulted in extended estimated useful lives for many of the Company's property, plant and equipment categories, such as IBX plant and machinery, resulting in a decrease to depreciation expense.
The change in the estimated useful lives of certain of the Company's property, plant and equipment is accounted for as a change in accounting estimate on a prospective basis from the three months ended September 30, 2009 under the accounting standard related to a change in accounting estimate.
The change in estimated useful lives of certain of the Company's property, plant and equipment, which has decreased the Company's depreciation expense by $4.8 million for the three and nine months ended September 30, 2009, has resulted in the following increases (in thousands, except per share amounts):
Three months ended Nine months ended
September 30, 2009
Income from operations $ 4,804 $ 4,804
Net income 2,993 2,993
Earnings per share:
Basic 0.08 0.08
Diluted 0.08 0.08
Adoption of Recent Accounting Pronouncements
As a result of the Company's adoption of a FASB accounting standard related to the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, effective January 1, 2009 and a FASB accounting standard related to the accounting for instruments granted in share-based payment transactions that are considered participating securities prior to vesting and should therefore be included in the calculation of earnings per share effective January 1, 2009, the Company adjusted its comparative condensed consolidated financial statements previously issued to reflect such changes in accounting principle.
Business Outlook
For the full year of 2009, total revenues are expected to be in the range of $875.0 to $880.0 million. Total year cash gross margins are expected to range between approximately 63% and 64%. Cash selling, general and administrative expenses are expected to be approximately $160.0 million. Adjusted EBITDA for the year is expected to be between $395.0 and $400.0 million. Capital expenditures for 2009 are expected to be in the range of $390.0 to $400.0 million, comprised of approximately $60.0 million of ongoing capital expenditures and $330.0 to $340.0 million of expansion capital expenditures.
The Company will discuss its results and guidance on its quarterly conference call on Wednesday, October 21, 2009, at 5:30 p.m. ET (2:30 p.m. PT). To hear the conference call live, please dial 1-773-756-4788 (domestic and international) and reference the passcode (EQIX). A simultaneous live Webcast of the call will be available over the Internet at www.equinix.com, under the Investor Relations heading.
A replay of the call will be available beginning on Wednesday, October 21, 2009, at 7:30 p.m. (ET) through November 21, 2009 by dialing 1-203-369-1619. In addition, the Webcast will be available on the company's Web site at www.equinix.com. No password is required for either method of replay.
About Equinix
Equinix, Inc. (Nasdaq:EQIX) provides global data center services that ensure the vitality of the information-driven world. Global enterprises, content and financial companies, and network service providers rely upon Equinix's insight and expertise to protect and connect their most valued information assets. Equinix operates 45 International Business Exchange(TM) (IBX(R)) data centers across 18 markets in North America, Europe and Asia-Pacific.
Important information about Equinix is routinely posted on the investor relations page of its website located at www.equinix.com/investors. We encourage you to check Equinix's website regularly for the most up-to-date information.
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, 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 to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain non-cash or non-recurring items that it believes are not good indicators of the Company's current or future operating performance. These non-cash or non-recurring items are depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs. Legislative and regulatory requirements encourage use of and emphasis on GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. Equinix excludes these non-cash or non-recurring items in order for Equinix's lenders, investors, and industry analysts who review and report on the Company, to better evaluate the Company's operating performance and cash spending levels relative to its industry sector and competitor base.
Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of our IBX centers and do not reflect our current or future cash spending levels to support our business. Our IBX centers are long-lived assets, and have an economic life greater than ten years. The construction costs of our IBX centers do not recur and future capital expenditures remain minor relative to our initial investment. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX 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 excludes amortization expense related to certain intangible assets, as it represents a cost that may not recur and is not a good indicator of the Company's current or future operating performance. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charge liabilities, as these expenses represent costs, which Equinix believes are not meaningful in evaluating the Company's current operations. Equinix excludes non-cash stock-based compensation expense as it represents expense attributed to stock awards that have no current or future cash obligations. As such, we, and many investors and analysts, exclude this stock-based compensation expense when assessing the cash generating performance of our operations. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to the Company's decision to exit leases for excess space adjacent to several of our IBX centers, which we did not intend to build out, or our decision to reverse such restructuring charges. Equinix excludes acquisition costs from its non-GAAP financial measures. The acquisition costs relate to costs the Company incurs in connection with business combinations. Management believes such items as restructuring charges and acquisition costs are unique transactions, and consequently, does not consider these items as a normal component of expenses or income related to current and ongoing operations.
Our management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. However, we have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our operating results in a manner that focuses on what management believes to be our 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, however, 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 that of other companies. In addition, whenever Equinix uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, 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. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how it was calculated for the three and nine months ended September 30, 2009 and 2008, 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, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue 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; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent 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 and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
PRESENTATION
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
As Adjusted As Adjusted
September 30, June 30, September 30, September 30, September 30,
2009 2009 2008 2009 2008
Recurring revenues $ 218,334 $ 205,313 $ 173,517 $ 614,934 $ 487,271
Non-recurring revenues 9,224 7,855 10,218 25,023 26,726
Revenues 227,558 213,168 183,735 639,957 513,997
Cost of revenues 126,007 118,534 109,905 356,346 306,453
Gross profit 101,551 94,634 73,830 283,611 207,544
Operating expenses:
Sales and marketing 15,543 16,369 16,009 46,315 46,650
General and administrative 39,071 37,456 35,529 111,677 111,350
Restructuring charges - (220 ) 799 (6,053 ) 799
Acquisition costs 1,379 - - 1,379 -
Total operating expenses 55,993 53,605 52,337 153,318 158,799
Income from operations 45,558 41,029 21,493 130,293 48,745
Interest and other income (expense):
Interest income 353 680 1,968 1,949 7,820
Interest expense (22,256 ) (15,912 ) (15,671 ) (51,619 ) (45,179 )
Other-than-temporary impairment loss on investments - - (1,527 ) (2,687 ) (1,527 )
Other income (expense) 2,484 2,610 (520 ) 3,675 602
Total interest and other, net (19,419 ) (12,622 ) (15,750 ) (48,682 ) (38,284 )
Net income before income taxes 26,139 28,407 5,743 81,611 10,461
Income tax expense (7,327 ) (10,967 ) (187 ) (29,902 ) (400 )
Net income $ 18,812 $ 17,440 $ 5,556 $ 51,709 $ 10,061
Net income per share:
Basic net income per share $ 0.49 $ 0.46 $ 0.15 $ 1.35 $ 0.27
Diluted net income per share $ 0.47 $ 0.44 $ 0.15 $ 1.32 $ 0.27
Shares used in computing basic net income per share 38,787 38,152 37,268 38,270 36,976
Shares used in computing diluted net income per share 39,887 39,318 38,023 39,305 37,854
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP
PRESENTATION
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
As Adjusted As Adjusted
September 30, June 30, September 30, September 30, September 30,
2009 2009 2008 2009 2008
Recurring revenues $ 218,334 $ 205,313 $ 173,517 $ 614,934 $ 487,271
Non-recurring revenues 9,224 7,855 10,218 25,023 26,726
Revenues (1) 227,558 213,168 183,735 639,957 513,997
Cash cost of revenues (2) 81,931 75,177 70,601 229,047 198,450
Cash gross profit (3) 145,627 137,991 113,134 410,910 315,547
Cash operating expenses (4):
Cash sales and marketing expenses(5) 11,453 12,204 12,082 34,637 34,470
Cash general and administrative expenses (6) 28,138 26,253 24,079 79,325 72,701
Total cash operating expenses (7) 39,591 38,457 36,161 113,962 107,171
Adjusted EBITDA (8) $ 106,036 $ 99,534 $ 76,973 $ 296,948 $ 208,376
Cash gross margins (9) 64 % 65 % 62 % 64 % 61 %
Adjusted EBITDA margins (10) 47 % 47 % 42 % 46 % 41 %
Adjusted EBITDA flow-through rate (11) 45 % 59 % 67 % 71 % 48 %
(1 ) The geographic split of our revenues on a services basis is
presented below:
United States Revenues:
Colocation $ 109,161 $ 104,337 $ 87,988 $ 312,502 $ 246,338
Interconnection 22,494 21,956 20,756 65,966 59,881
Managed infrastructure 529 522 545 1,620 1,602
Rental 123 118 133 402 498
Recurring revenues 132,307 126,933 109,422 380,490 308,319
Non-recurring revenues 4,027 2,813 5,437 10,484 12,983
Revenues 136,334 129,746 114,859 390,974 321,302
Asia-Pacific Revenues:
Colocation 22,768 20,847 14,592 62,833 39,888
Interconnection 2,831 2,516 1,897 7,643 5,080
Managed infrastructure 3,515 3,590 3,432 10,640 10,619
Rental - - - - -
Recurring revenues 29,114 26,953 19,921 81,116 55,587
Non-recurring revenues 1,304 1,413 1,658 4,205 4,769
Revenues 30,418 28,366 21,579 85,321 60,356
Europe Revenues:
Colocation 51,855 46,625 39,358 138,707 110,035
Interconnection 1,910 1,662 1,462 4,957 3,517
Managed infrastructure 2,976 3,019 3,233 9,268 9,499
Rental 172 121 121 396 314
Recurring revenues 56,913 51,427 44,174 153,328 123,365
Non-recurring revenues 3,893 3,629 3,123 10,334 8,974
Revenues 60,806 55,056 47,297 163,662 132,339
Worldwide Revenues:
Colocation 183,784 171,809 141,938 514,042 396,261
Interconnection 27,235 26,134 24,115 78,566 68,478
Managed infrastructure 7,020 7,131 7,210 21,528 21,720
Rental 295 239 254 798 812
Recurring revenues 218,334 205,313 173,517 614,934 487,271
Non-recurring revenues 9,224 7,855 10,218 25,023 26,726
Revenues $ 227,558 $ 213,168 $ 183,735 $ 639,957 $ 513,997
(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 $ 126,007 $ 118,534 $ 109,905 $ 356,346 $ 306,453
Depreciation, amortization and accretion expense (42,189 ) (41,899 ) (38,047 ) (122,860 ) (104,568 )
Stock-based compensation expense (1,887 ) (1,458 ) (1,257 ) (4,439 ) (3,435 )
Cash cost of revenues $ 81,931 $ 75,177 $ 70,601 $ 229,047 $ 198,450
The geographic split of our cash cost of revenues is presented below:
U.S. cash cost of revenues $ 43,123 $ 40,054 $ 37,506 $ 121,778 $ 104,099
Asia-Pacific cash cost of revenues 10,697 10,451 8,848 30,959 25,489
Europe cash cost of revenues 28,111 24,672 24,247 76,310 68,862
Cash cost of revenues $ 81,931 $ 75,177 $ 70,601 $ 229,047 $ 198,450
(3 ) We define cash gross profit as revenues less cash cost of revenues
(as defined above).
(4 ) We define cash operating expenses as operating expenses less
depreciation, amortization, stock-based compensation,
restructuring charges, acquisition costs and gains on asset sales.
We also refer to cash operating expenses as cash selling, general
and administrative expenses or "cash SG&A".
(5 ) We define cash sales and marketing expenses as sales and marketing
expenses less depreciation, amortization and stock-based
compensation as presented below:
Sales and marketing expenses $ 15,543 $ 16,369 $ 16,009 $ 46,315 $ 46,650
Depreciation and amortization expense (1,409 ) (1,327 ) (1,560 ) (3,979 ) (4,759 )
Stock-based compensation expense (2,681 ) (2,838 ) (2,367 ) (7,699 ) (7,421 )
Cash sales and marketing expenses $ 11,453 $ 12,204 $ 12,082 $ 34,637 $ 34,470
(6 ) We define cash general and administrative expenses as general and
administrative expenses less depreciation, amortization and
stock-based compensation as presented below:
General and administrative expenses $ 39,071 $ 37,456 $ 35,529 $ 111,677 $ 111,350
Depreciation and amortization expense (1,468 ) (2,040 ) (2,512 ) (5,460 ) (7,554 )
Stock-based compensation expense (9,465 ) (9,163 ) (8,938 ) (26,892 ) (31,095 )
Cash general and administrative expenses $ 28,138 $ 26,253 $ 24,079 $ 79,325 $ 72,701
(7 ) Our cash operating expenses, or cash SG&A, as defined above, is
presented below:
Cash sales and marketing expenses $ 11,453 $ 12,204 $ 12,082 $ 34,637 $ 34,470
Cash general and administrative expenses 28,138 26,253 24,079 79,325 72,701
Cash SG&A $ 39,591 $ 38,457 $ 36,161 $ 113,962 $ 107,171
The geographic split of our cash operating expenses, or cash SG&A,
is presented below:
U.S. cash SG&A $ 25,187 $ 23,678 $ 22,728 $ 72,195 $ 65,628
Asia-Pacific cash SG&A 5,023 4,996 4,638 14,709 14,358
Europe cash SG&A 9,381 9,783 8,795 27,058 27,185
Cash SG&A $ 39,591 $ 38,457 $ 36,161 $ 113,962 $ 107,171
(8 ) We define adjusted EBITDA as income from operations plus
depreciation, amortization, accretion, stock-based compensation
expense, restructuring charges and acquisition costs as presented
below:
Income from operations $ 45,558 $ 41,029 $ 21,493 $ 130,293 $ 48,745
Depreciation, amortization and accretion expense 45,066 45,266 42,119 132,299 116,881
Stock-based compensation expense 14,033 13,459 12,562 39,030 41,951
Restructuring charges - (220 ) 799 (6,053 ) 799
Acquisition costs 1,379 - - 1,379 -
Adjusted EBITDA $ 106,036 $ 99,534 $ 76,973 $ 296,948 $ 208,376
The geographic split of our adjusted EBITDA is presented below:
U.S. income from operations $ 31,571 $ 28,748 $ 16,210 $ 94,260 $ 44,744
U.S. depreciation, amortization and accretion expense 25,838 27,274 27,317 79,151 75,206
U.S. stock-based compensation expense 10,295 10,212 10,299 29,323 30,826
U.S. restructuring charges - (220 ) 799 (6,053 ) 799
U.S. acquisition costs 320 - - 320 -
U.S. adjusted EBITDA 68,024 66,014 54,625 197,001 151,575
Asia-Pacific income from operations 6,892 4,394 2,119 15,625 3,932
Asia-Pacific depreciation, amortization and accretion expense 5,612 6,758 4,419 18,697 12,492
Asia-Pacific stock-based compensation expense 2,194 1,767 1,555 5,331 4,085
Asia-Pacific adjusted EBITDA 14,698 12,919 8,093 39,653 20,509
Europe income from operations 7,095 7,887 3,164 20,408 69
Europe depreciation, amortization and accretion expense 13,616 11,234 10,383 34,451 29,183
Europe stock-based compensation expense 1,544 1,480 708 4,376 7,040
Europe acquisition costs 1,059 - - 1,059 -
Europe adjusted EBITDA 23,314 20,601 14,255 60,294 36,292
Adjusted EBITDA $ 106,036 $ 99,534 $ 76,973 $ 296,948 $ 208,376
(9 ) We define cash gross margins as cash gross profit divided by
revenues.
Our cash gross margins by geographic region is presented below:
U.S. cash gross margins 68 % 69 % 67 % 69 % 68 %
Asia-Pacific cash gross margins 65 % 63 % 59 % 64 % 58 %
Europe cash gross margins 54 % 55 % 49 % 53 % 48 %
(10 ) We define adjusted EBITDA margins as adjusted EBITDA divided by
revenues.
U.S. adjusted EBITDA margins 50 % 51 % 48 % 50 % 47 %
Asia-Pacific adjusted EBITDA margins 48 % 46 % 38 % 46 % 34 %
Europe adjusted EBITDA margins 38 % 37 % 30 % 37 % 27 %
(11 ) We define adjusted EBITDA flow-through rate as incremental
adjusted EBITDA growth divided by incremental revenue growth as
follows:
Adjusted EBITDA - current period $ 106,036 $ 99,534 $ 76,973 $ 296,948 $ 208,376
Less adjusted EBITDA - prior period (99,534 ) (91,378 ) (69,134 ) (230,207 ) (123,012 )
Adjusted EBITDA growth $ 6,502 $ 8,156 $ 7,839 $ 66,741 $ 85,364
Revenues - current period $ 227,558 $ 213,168 $ 183,735 $ 639,957 $ 513,997
Less revenues - prior period (213,168 ) (199,231 ) (172,044 ) (546,462 ) (334,333 )
Revenue growth $ 14,390 $ 13,937 $ 11,691 $ 93,495 $ 179,664
Adjusted EBITDA flow-through rate 45 % 59 % 67 % 71 % 48 %
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
As Adjusted
Assets September 30, December 31,
2009 2008
Cash and cash equivalents $ 283,147 $ 220,207
Short-term investments 326,234 42,112
Accounts receivable, net 67,589 66,029
Deferred tax assets 15,163 35,936
Other current assets 21,961 15,227
Total current assets 714,094 379,511
Long-term investments 18,061 45,626
Property, plant and equipment, net 1,703,009 1,492,830
Goodwill 377,556 342,829
Intangible assets, net 52,062 50,918
Deferred tax assets 43,938 65,228
Other assets 53,858 57,794
Total assets $ 2,962,578 $ 2,434,736
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 104,288 $ 74,317
Accrued property and equipment 64,598 89,518
Current portion of capital lease and other financing obligations 6,347 4,499
Current portion of mortgage and loans payable 53,101 52,054
Current portion of convertible debt - 19,150
Other current liabilities 51,827 50,455
Total current liabilities 280,161 289,993
Capital lease and other financing obligations, less current portion 154,179 133,031
Mortgage and loans payable, less current portion 394,263 386,446
Convertible debt, less current portion 888,364 608,510
Other liabilities 111,177 100,095
Total liabilities 1,828,144 1,518,075
Common stock 39 38
Additional paid-in capital 1,636,984 1,524,834
Accumulated other comprehensive loss (98,887 ) (152,800 )
Accumulated deficit (403,702 ) (455,411 )
Total stockholders' equity 1,134,434 916,661
Total liabilities and stockholders' equity $ 2,962,578 $ 2,434,736
Ending headcount by geographic region is as follows:
U.S. headcount 705 646
Asia-pacific headcount 229 190
Europe headcount 344 279
Total headcount 1,278 1,115
EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)
As Adjusted
September 30, December 31,
2009 2008
Capital lease and other financing obligations $ 160,526 $ 137,530
European financing 135,455 130,981
Chicago IBX financing 109,991 109,991
Mortgage payable 92,432 94,362
Asia-Pacific financing 72,990 87,009
Singapore financing 23,764 -
Netherlands financing 10,247 6,485
Other note payable 2,485 9,672
Total mortgage and loans payable 447,364 438,500
Convertible debt, net of debt discount 888,364 627,660
Plus debt discount 131,372 37,476
Total convertible debt principal 1,019,736 665,136
Total debt outstanding $ 1,627,626 $ 1,241,166
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
As Adjusted As Adjusted
September 30, June 30, September 30, September 30, September 30,
2009 2009 2008 2009 2008
Cash flows from operating activities:
Net income $ 18,812 $ 17,440 $ 5,556 $ 51,709 $ 10,061
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, amortization and accretion 45,066 45,266 42,119 132,299 116,881
Stock-based compensation 14,033 13,459 12,562 39,030 41,951
Debt issuance costs and debt discount 6,496 3,277 2,963 12,210 8,635
Restructuring charges - (220 ) 799 (6,053 ) 799
Other reconciling items (426 ) 921 961 3,269 91
Changes in operating assets and liabilities:
Accounts receivable 1,003 (5,838 ) (2,252 ) (23 ) (3,783 )
Deferred tax assets, net 3,811 8,068 - 20,750 -
Accounts payable and accrued expenses 5,714 6,683 (522 ) 18,248 5,015
Other assets and liabilities 13,030 (10,317 ) 1,135 1,543 11,613
Net cash provided by operating activities 107,539 78,739 63,321 272,982 191,263
Cash flows from investing activities:
Purchases, sales and maturities of investments, net (146,045 ) (136,157 ) 2,784 (258,582 ) (76,147 )
Purchase of Upminster, less cash acquired (28,176 ) - - (28,176 ) -
Purchase of Virtu, less cash acquired - - - - (23,241 )
Purchases of other property and equipment (88,655 ) (76,816 ) (95,445 ) (240,440 ) (305,546 )
Accrued property and equipment 460 6,050 10,226 (27,362 ) (16,015 )
Other investing activities 1,867 2,863 - 12,066 (13,901 )
Net cash used in investing activities (260,549 ) (204,060 ) (82,435 ) (542,494 ) (434,850 )
Cash flows from financing activities:
Proceeds from employee equity awards 14,096 4,892 6,849 23,050 26,087
Proceeds from convertible debt - 373,750 - 373,750 -
Proceeds from mortgage and loans payable 27,935 - 24,576 28,679 102,101
Repayment of capital lease and other financing obligations (1,427 ) (1,369 ) (956 ) (3,765 ) (2,874 )
Repayment of mortgage and loans payable (11,003 ) (16,312 ) (4,034 ) (34,525 ) (11,456 )
Capped call costs - (49,664 ) - (49,664 ) -
Equity issuance costs (9 ) (2,786 ) - (2,795 ) -
Debt issuance costs (788 ) (7,170 ) (7 ) (8,210 ) (908 )
Net cash provided by financing activities 28,804 301,341 26,428 326,520 112,950
Effect of foreign currency exchange rates on cash and cash 2,136 7,148 2,244 5,932 689
equivalents
Net increase (decrease) in cash and cash equivalents (122,070 ) 183,168 9,558 62,940 (129,948 )
Cash and cash equivalents at beginning of period 405,217 222,049 151,127 220,207 290,633
Cash and cash equivalents at end of period $ 283,147 $ 405,217 $ 160,685 $ 283,147 $ 160,685
Free cash flow (1) $ (6,965 ) $ 10,836 $ (21,898 ) $ (10,930 ) $ (167,440 )
Adjusted free cash flow (2) $ 21,211 $ 10,836 $ (21,898 ) $ 17,246 $ (144,199 )
(1 ) We define free cash flow as net cash provided by operating
activities plus net cash 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 $ 107,539 $ 78,739 $ 63,321 $ 272,982 $ 191,263
Net cash used in investing activities as presented above (260,549 ) (204,060 ) (82,435 ) (542,494 ) (434,850 )
Purchases, sales and maturities of investments, net 146,045 136,157 (2,784 ) 258,582 76,147
Free cash flow (negative free cash flow) $ (6,965 ) $ 10,836 $ (21,898 ) $ (10,930 ) $ (167,440 )
(2 ) We define adjusted free cash flow as free cash flow (as defined
above) excluding any purchases or sales of real estate and
acquisitions and proceeds from asset sales as presented below:
Free cash flow (as defined above) $ (6,965 ) $ 10,836 $ (21,898 ) $ (10,930 ) $ (167,440 )
Less purchase of Upminster, less cash acquired 28,176 - - 28,176 -
Less purchase of Virtu, less cash acquired - - - - 23,241
Adjusted free cash flow (negative adjusted free cash flow) $ 21,211 $ 10,836 $ (21,898 ) $ 17,246 $ (144,199 )
SOURCE: Equinix, Inc.
Media: K/F Communications, Inc. David Fonkalsrud, 415-255-6506 dave@kfcomm.com or Investor Relations: Equinix, Inc. Jason Starr, 650-513-7402 jstarr@equinix.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.