Cbeyond, Inc. (Nasdaq:CBEY), ("Cbeyond"), the technology ally for
small and mid-sized businesses, today announced its results for the
first quarter ended March 31, 2014.
Recent financial and operating highlights include:
- First quarter 2014 total revenue of $108.5 million compared
with $119.9 million in the first quarter of 2013 and $111.5 million
in the fourth quarter of 2013;
- Cbeyond 2.0 revenue was $24.5 million, or 22.5% of total
revenue in the first quarter of 2014, an increase of 78.1% from the
first quarter of 2013 and an increase of 19.0% from the fourth
quarter of 2013;
- Average monthly revenue per customer (ARPU) of $661 during the
first quarter of 2014 compared with $656 in the first quarter of
2013 and $658 in the fourth quarter of 2013 (see selected quarterly
operating metrics table for ARPU definition);
- Adjusted EBITDA of $16.9 million in the first quarter of 2014
compared with $20.8 million in the first quarter of 2013 and $17.7
million in the fourth quarter of 2013 (see reconciliation tables
for reconciliation of Adjusted EBITDA to net loss);
- Free cash flow (defined as adjusted EBITDA less cash capital
expenditures) of $4.0 million in the first quarter of 2014 compared
with $8.4 million in the first quarter of 2013 and $3.6 million in
the fourth quarter of 2013;
- Net loss of $5.9 million in the first quarter of 2014 compared
with net loss of $0.6 million in the first quarter of 2013 and a
net loss of $4.9 million in the fourth quarter of 2013; and,
- On April 21, 2014, Cbeyond announced a definitive agreement in
which Birch Communications will acquire Cbeyond in an all-cash
transaction valued at approximately $323.4 million, subject to
certain conditions (see the 8-K filed on April 21, 2014 for more
information, which includes the Agreement and Plan of Merger as an
attached exhibit).
Financial Overview and
Key Operating Metrics (unaudited) |
Financial and operating metrics,
which include non-GAAP financial measures, for the three months
ended March 31, 2014, include: |
|
|
|
|
|
|
For the Three
Months Ended March 31, |
|
2013 |
2014 |
Change |
% Change |
Selected Financial Data (dollars in
thousands) |
|
|
|
|
Total Revenue |
$ 119,946 |
$ 108,537 |
$ (11,409) |
(9.5%) |
Operating Expenses |
$ 120,164 |
$ 113,967 |
$ (6,197) |
(5.2%) |
Operating income (loss) |
$ (218) |
$ (5,430) |
$ (5,212) |
N/M |
Net income (loss) |
$ (556) |
$ (5,925) |
$ (5,369) |
N/M |
Total Capital Expenditures |
$ 15,451 |
$ 14,171 |
$ (1,280) |
(8.3%) |
|
|
|
|
|
Key Operating Metrics and Non-GAAP
Financial Measures |
|
|
|
|
(dollars in thousands,
except Average Monthly Revenue Per Network Access
Customer) |
|
Network Access Customers (At Period End) |
58,434 |
51,923 |
(6,511) |
(11.1%) |
Net Network Access Customer Change |
(1,258) |
(1,836) |
(578) |
(45.9%) |
Average Monthly Churn Rate |
1.6% |
1.7% |
0.1% |
6.3% |
Average Monthly Revenue Per Network Access
Customer |
$ 656 |
$ 661 |
$ 5 |
0.8% |
Adjusted EBITDA |
$ 20,833 |
$ 16,915 |
$ (3,918) |
(18.8%) |
Cash Capital Expenditures |
$ 12,434 |
$ 12,929 |
$ 495 |
4.0% |
|
|
|
|
|
Selected Revenue Presentation
(dollars in thousands) |
|
|
|
|
1.0 Customer Revenue |
$ 106,214 |
$ 84,074 |
$ (22,140) |
(20.8%) |
2.0 Customer Revenue |
$ 13,732 |
$ 24,463 |
$ 10,731 |
78.1% |
Total Revenue |
$ 119,946 |
$ 108,537 |
$ (11,409) |
(9.5%) |
Management Comments
"First quarter results reflect the steps we are taking to
emphasize our 2.0 business," said Jim Geiger, chief executive
officer of Cbeyond, Inc. "Cbeyond is excited about the combination
with Birch Communications, which will not only create a stronger
company with expanded capabilities and reach to serve customers
nationwide with a broad array of products but will also bring
increased stockholder value and liquidity for our
stockholders."
First Quarter Financial and Business
Summary
Revenue and ARPU
Cbeyond reported total revenue of $108.5 million for the first
quarter of 2014, a decrease of 9.5% from the first quarter of 2013
and a decrease of 2.7% from the fourth quarter of
2013. Revenue decreases were largely the result of the decline
in the number of customers. Total 2.0 revenue grew 78.1%
year-over-year during the quarter to $24.5 million, with Managed
Hosting and Cloud revenue of $8.6 million, an increase of 30.9%
year-over-year. ARPU was $661 in the first quarter of 2014
compared with $656 in the first quarter of 2013 and $658 in the
fourth quarter of 2013.
Cost of Service and Gross Margin
Cbeyond's gross margin was 66.3% in the first quarter of 2014, a
decrease of 140 basis points from the 67.7% in the first quarter of
2013 and a 140 basis point increase from the 64.9% in the fourth
quarter of 2013. The year-over-year decrease in gross margin was
due largely to higher access costs to provide additional bandwidth
to our customers.
Adjusted EBITDA and Net Loss
Adjusted EBITDA for the first quarter of 2014 was $16.9 million
compared with adjusted EBITDA of $20.8 million in the first quarter
of 2013 and $17.7 million in the fourth quarter of 2013.
Cbeyond reported a net loss of $5.9 million in the first quarter
of 2014 compared with a net loss of $0.6 million in the first
quarter of 2013 and a net loss of $4.9 million in the fourth
quarter of 2013.
Cash, Cash Equivalents, and Borrowings
Cash and cash equivalents were $26.3 million at the end of the
first quarter of 2014 compared with $28.9 million at the end of the
fourth quarter of 2013. The Company currently has $2.0 million
outstanding on its fiber loan and has no outstanding borrowings
under its $75.0 million revolving credit facility. The Company
also has $17.0 million in outstanding capital lease obligations at
March 31, 2014, primarily incurred in connection with the
construction of its fiber network.
Capital Expenditures
Total capital expenditures were $14.2 million during the first
quarter of 2014, of which $12.9 million were cash capital
expenditures. The Company incurred $1.2 million in non-cash
capital expenditures during the first quarter, consisting of
capital lease obligations related to its fiber assets. In the
first quarter of 2013, total capital expenditures were $15.5
million, of which $12.4 million were cash capital expenditures. In
the fourth quarter of 2013, total capital expenditures were $17.2
million, of which $14.1 million were cash capital expenditures.
Free Cash Flow
Free cash flow, defined as adjusted EBITDA less cash capital
expenditures, was $4.0 million in the first quarter of 2014
compared with $8.4million in the first quarter of 2013 and $3.6
million in the fourth quarter of 2013.
Share Repurchase Plan
There were no share repurchases in the
quarter.
Business Outlook for 2014
As a result of the announcement that Cbeyond has entered into a
definitive agreement to be acquired by Birch Communications,
Cbeyond withdraws its previously issued guidance for 2014.
Conference Call
As a result of the announcement that Cbeyond has entered into a
definitive agreement to be acquired by Birch Communications, the
first quarter 2014 earnings conference call and webcast has been
cancelled.
About Cbeyond
Cbeyond, Inc. (Nasdaq:CBEY) is the technology ally for small and
mid-sized businesses. We enable our customers to focus on
their core business activities by shifting the burden of IT
infrastructure management to us. We deliver cloud services,
communications and connectivity through award-winning enterprise
data centers and a private, IP enterprise network. Founded in
1999, Cbeyond is a technology service provider with a long history
of delivering technology and service innovation for small and
mid-sized businesses. Please visit www.cbeyond.com for more
information.
Forward-Looking Statements
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to,
statements identified by words such as "expectations," "guidance,"
"believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "projects" and similar expressions. Such
statements are based upon the current beliefs and expectations of
Cbeyond's management and are subject to significant risks and
uncertainties. Actual results may differ from those set forth
in the forward-looking statements. Factors that might cause
future results to differ include, but are not limited to, the
following: finalization of operating data, the significant
reduction in economic activity, which particularly affects our
target market of small to mid-sized businesses; the risk that we
may be unable to experience revenue growth at anticipated
levels; changes in business climate or other factors affecting our
customer base; the risk of unexpected increases in customer churn
levels; our ability to manage competitive pricing dynamics in our
markets; changes in federal or state regulation or decisions by
regulatory bodies that affect Cbeyond; periods of economic downturn
or unusual volatility in the capital markets or other negative
macroeconomic conditions that could harm our business, including
our access to capital markets and the impact on certain of our
customers to meet their payment obligations; the timing of the
initiation, progress, or cancellation of significant contracts or
arrangements; the mix and timing of services sold in a particular
period; our ability to recruit and maintain experienced management
and personnel; rapid technological change and the timing and amount
of start-up costs incurred in connection with the introduction of
new services or the entrance into new markets; our ability to
maintain or attract sufficient customers in existing or new
markets; our ability to comply with our credit facility covenants;
continued industry consolidation that could further strengthen our
competitors; our ability to respond to increasing competition; our
ability to manage the growth of our operations; changes in
estimates of taxable income or utilization of deferred tax assets
which could significantly affect the Company's effective tax rate;
regulatory action relating to our compliance with customer
proprietary network information; the possibility that economic
benefits of future opportunities in an emerging industry may never
materialize, including unexpected variations in market growth and
demand for products and technologies; unfamiliarity with the
economic characteristics of new geographic markets; ongoing
personnel and logistical challenges of managing a larger
organization; our ability to effectively manage the evolving needs
of our customers or increasing product complexity; external events
outside of our control, including extreme weather, natural
disasters, pandemics, or terrorist attacks that could adversely
affect our target markets; the risk that our security measures are
breached, which inhibits the ability of users to access our
services, changes the perception of our services, or results in
litigation and potential liability; our ability to implement and
execute successfully our new strategic focus; our ability to expand
fiber availability; the extent to which small and mid-sized
businesses continue to spend on cloud, network, and security
services; our ability to recruit, maintain, and grow a sales force
focused exclusively on technology-dependent customers; our ability
to integrate new products into our existing infrastructure; the
effects of realignment activities; the risk that our strategic
review process may not result in increased shareholder value; the
extent to which our customer mix becomes more technology-dependent;
our ability to achieve future cost savings related to our capital
expenditures and investment in Ethernet technology; general
economic and business conditions; the risk that we may be unable to
obtain stockholder approval as required for the proposed merger
with Birch Communications, Inc. (the "Merger); the risk that
conditions to the closing of the Merger may not be satisfied and
required regulatory approvals may not be obtained; the risk that
Birch will not obtain the financing required to consummate the
merger, the effect of unexpected costs, liabilities or delays
related to the Merger; the risk that our business may suffer as a
result of uncertainty surrounding the Merger; the outcome of any
legal proceedings related to the Merger; the risk that we may be
adversely affected by other economic, business, and/or competitive
factors; the effect of the occurrence of any event, change or other
circumstances that could give rise to the termination of the merger
agreement; risks that the Merger disrupts current plans and
operations and the potential difficulties in employee retention as
a result of the Merger; and other risks to consummation of the
Merger, including the risk that the Merger may not be consummated
within the expected time period or at all. You are advised to
consult any further disclosures we make on related subjects in the
reports we file with the Securities and Exchange Commission, or
SEC, including the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
most recent annual report on Form 10-K, together with updates that
may occur in our quarterly reports on Form 10-Q and Current Reports
on Form 8‑K. Such disclosure covers certain risks,
uncertainties, and possibly inaccurate assumptions that could cause
our actual results to differ materially from expected and
historical results. We undertake no obligation to correct or
update any forward‑looking statements, whether as a result of new
information, future events, or otherwise.
Key Operating Metrics and Non-GAAP Financial
Measures
In this press release, the Company uses several key operating
metrics and non-GAAP financial measures. The Company defines
each of these metrics and provides a reconciliation of non-GAAP
financial measures to the most directly comparable generally
accepted accounting principles in the United States, or GAAP,
financial measure. These financial measures and operating
metrics are a supplement to GAAP financial information and should
not be considered as an alternative to, or more meaningful than,
net income (loss), cash flow or operating income (loss) as
determined in accordance with GAAP.
Adjusted EBITDA
Cbeyond's Chief Executive Officer, who is the Company's Chief
Operating Decision Maker (or "CODM"), uses adjusted EBITDA to
assess the performance of the business at a consolidated level.
Adjusted EBITDA is a non-GAAP financial measure. The Company's
management uses adjusted EBITDA in its decision-making processes
relating to the operation of our business together with GAAP
measures such as revenue and income (loss) from operations. EBITDA
represents net income (loss) before interest, income taxes,
depreciation, and amortization. The Company defines adjusted EBITDA
as net income (loss) before interest, income taxes, depreciation,
and amortization expense, excluding, when applicable:
- Non-cash share-based compensation;
- Gains, losses, and other costs associated with asset
dispositions;
- Non-operating income or expense;
- Public offering or acquisition-related transaction costs;
- Purchase accounting related adjustments, which affect
period-to-period financial performance comparability in periods
subsequent to the acquisition and are not indicative of changes in
underlying results of operations;
- Charges for employee severances, asset or facility impairments,
other exit activity costs associated with a management directed
plan (including realignment costs); and
- Costs associated with our strategic review.
The Company's management believes that adjusted EBITDA permits a
comparative assessment of its operating performance, relative to
the Company's performance based on its GAAP results, while
isolating the effects of depreciation, amortization, non-cash
share-based compensation, and other items, which may vary from
period to period without any correlation to underlying operating
performance and vary widely among similar companies. Cbeyond
provides information relating to adjusted EBITDA so that investors
have the same data that the Company employs in assessing its
overall operations. The Company's management believes that trends
in the Company's adjusted EBITDA are a valuable indicator of
operating performance on a consolidated basis and its ability to
generate operating cash flows to fund working capital, debt and
capital lease obligations, and capital expenditures.
In addition, the Company's management believes adjusted EBITDA
is a useful comparative measure within the communications industry
because the industry has experienced merger and acquisition
activity and financial restructurings, which have led to
significant variations among companies with respect to capital
structures and cost of capital (which affect interest expense), and
differences in taxation and book depreciation of facilities and
equipment (which affect relative depreciation expense), including
significant differences in the depreciable lives of similar assets
among various companies, as well as non-operating or infrequent
charges to earnings, such as the effect of debt restructurings.
Accordingly, Cbeyond's management believes adjusted EBITDA
allows analysts, investors and other interested parties in the
communications industry to facilitate company-to-company
comparisons by eliminating some of the foregoing variations.
Adjusted EBITDA as used in this report may not, however, be
directly comparable to similarly titled measures reported by other
companies due to differences in accounting policies and items
excluded or included in the adjustments, which limits its
usefulness as a comparative measure.
Cbeyond's calculation of adjusted EBITDA is not directly
comparable to earnings before interest and taxes (or "EBIT") or
EBITDA. In addition, adjusted EBITDA does not reflect:
- Cash expenditures, or future requirements, for capital
expenditures or contractual commitments;
- Changes in, or cash requirements for, working capital
needs;
- Interest expense or the cash requirements necessary to service
interest or principal payments on the Company's debt and capital
lease obligations;
- Any cash requirements for the replacement of assets being
depreciated and amortized, which will often have to be replaced in
the future, even though depreciation and amortization are non-cash
charges; and
- Cash used for business acquisitions and share repurchases.
Adjusted EBITDA is not intended to replace operating income
(loss), net income (loss) and other measures of financial
performance reported in accordance with GAAP. Rather, adjusted
EBITDA is a measure of operating performance to consider in
addition to those measures. Because of these limitations, adjusted
EBITDA should not be considered as a measure of discretionary cash
available to Cbeyond to invest in the growth of its business. The
Company's management compensates for these limitations by relying
primarily on our GAAP results and using adjusted EBITDA as a
supplemental financial measure.
Free Cash Flow
Free cash flow represents the cash that a company is able to
generate after cash expenses and capital expenditures
necessary to maintain or expand its asset base. The Company's
management believes that free cash flow is an important metric for
investors in evaluating how a company is currently using cash
generated and may indicate its ability to generate cash that can
potentially be used by the business for capital investments,
acquisitions, reduction of debt, payment of dividends, or share
repurchases. Internally, the Company's management focuses on free
cash flow as an important operating performance metric. However,
free cash flow is not a measure of financial performance under GAAP
and may not be comparable to similarly titled measures reported by
other companies.
Cbeyond defines free cash flow as adjusted EBITDA less cash
capital expenditures. For purposes of calculating free cash flow,
we distinguish capital expenditures that require the up-front
outlay of cash from those where payment is deferred on a
longer-term basis. This distinction is primarily driven by the
significant investments Cbeyond is making to lease fiber network
assets that have an expected useful life of 20 years, which is
substantially longer than the Company's typical asset lives. The
Company's management believes this distinction is warranted and
appropriate since these investments are expected to yield
meaningful positive cash flows in future periods when the debt and
lease payments occur. These expected favorable future cash flows
will result from fiber infrastructure replacing a portion of the
access and transport circuits the Company currently leases from
incumbent local exchange carriers.
CBEYOND, INC. AND
SUBSIDIARY |
Condensed Consolidated
Statements of Operations |
(Amounts in thousands, except
per share amounts) |
(Unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2013 |
2014 |
|
|
|
Revenue |
$ 119,946 |
$ 108,537 |
|
|
|
Operating
expenses: |
|
|
Cost of revenue (excluding
depreciation and amortization) |
38,788 |
36,556 |
Selling, general and administrative
(excluding depreciation and amortization) |
63,771 |
61,220 |
Depreciation and
amortization |
17,605 |
16,191 |
Total operating expenses |
120,164 |
113,967 |
|
|
|
Operating income
(loss) |
(218) |
(5,430) |
|
|
|
Other income
(expense): |
|
|
Interest expense, net |
(153) |
(232) |
|
|
|
Income (loss) before income
taxes |
(371) |
(5,662) |
|
|
|
Income tax (expense)
benefit |
(185) |
(263) |
|
|
|
Net income
(loss) |
$ (556) |
$ (5,925) |
|
|
|
Net Income (loss) per common
share: |
|
|
Basic |
$ (0.02) |
$ (0.19) |
Diluted |
$ (0.02) |
$ (0.19) |
|
|
|
Weighted average common shares
outstanding: |
|
|
Basic |
30,175 |
30,586 |
Diluted |
30,175 |
30,586 |
|
|
|
CBEYOND, INC. AND
SUBSIDIARY |
Condensed Consolidated
Balance Sheets |
(Amounts in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
December
31, |
March 31, |
|
2013 |
2014 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 28,879 |
$ 26,265 |
Accounts receivable, net of allowance for
doubtful accounts |
22,144 |
21,291 |
Other current assets |
13,911 |
15,432 |
Total current assets |
64,934 |
62,988 |
|
|
|
Property and equipment, net |
153,758 |
152,014 |
Other non-current assets, net |
29,976 |
28,403 |
Total assets |
$ 248,668 |
$ 243,405 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities |
|
|
Accounts payable |
$ 12,051 |
$ 12,782 |
Other current liabilities |
47,784 |
46,909 |
Total current liabilities |
59,835 |
59,691 |
|
|
|
Non-current portion of long-term debt |
14,874 |
14,768 |
Other Non-current liabilities |
7,349 |
6,558 |
|
|
|
Stockholders' equity |
|
|
Common stock |
303 |
310 |
Additional paid-in capital |
334,412 |
336,108 |
Accumulated deficit |
(168,105) |
(174,030) |
Total stockholders' equity |
166,610 |
162,388 |
Total liabilities and
stockholders' equity |
$ 248,668 |
$ 243,405 |
|
|
|
CBEYOND, INC. AND
SUBSIDIARY |
Condensed Consolidated
Statements of Cash Flows |
(Amounts in thousands) |
(Unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2013 |
2014 |
OPERATING ACTIVITIES: |
|
|
Net income (loss) |
$ (556) |
$ (5,925) |
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: |
|
Depreciation and amortization |
17,605 |
16,191 |
Deferred taxes |
119 |
112 |
Provision for doubtful accounts |
919 |
1,059 |
Non-cash share-based compensation |
2,979 |
2,713 |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
(974) |
(206) |
Other current assets |
(2,142) |
(1,521) |
Other assets |
784 |
1,293 |
Accounts payable |
(3,667) |
731 |
Other liabilities |
(7,637) |
(2,268) |
Net cash provided by operating
activities |
7,430 |
12,179 |
|
|
|
INVESTING ACTIVITIES: |
|
|
Purchases of property and equipment |
(12,434) |
(12,929) |
Net cash used in investing activities |
(12,434) |
(12,929) |
|
|
|
FINANCING ACTIVITIES: |
|
|
Taxes paid on vested restricted
shares |
(1,478) |
(1,058) |
Principal payments of capital lease
obligations |
(244) |
(900) |
Financing issuance costs |
(120) |
0 |
Proceeds from exercise of stock
options |
46 |
94 |
Net cash used in financing activities |
(1,796) |
(1,864) |
|
|
|
Net increase (decrease) in cash and
cash equivalents |
(6,800) |
(2,614) |
Cash and cash equivalents at beginning of
period |
30,620 |
28,879 |
Cash and cash equivalents at end of
period |
$ 23,820 |
$ 26,265 |
|
|
|
CBEYOND, INC. AND
SUBSIDIARY |
Selected Quarterly
Financial Data and Operating Metrics |
(Dollars in thousands, except
for Network Access Customer Data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended, |
|
Mar. 31 |
Jun. 30 |
Sep. 30 |
Dec. 31 |
Mar. 31 |
|
2013 |
2013 |
2013 |
2013 |
2014 |
Revenue Breakouts: |
|
|
|
|
|
|
|
|
|
|
|
Customer-Basis Revenue
Breakout: |
|
|
|
|
|
1.0 Customer Revenue |
$ 106,214 |
$ 102,107 |
$ 95,902 |
$ 90,967 |
$ 84,074 |
2.0 Customer Revenue |
13,732 |
16,108 |
17,829 |
20,551 |
24,463 |
Total
Revenue |
$ 119,946 |
$ 118,215 |
$ 113,731 |
$ 111,518 |
$ 108,537 |
|
|
|
|
|
|
Product-Basis Revenue
Breakout: |
|
|
|
|
|
Network, Voice and Data |
$ 113,352 |
$ 110,852 |
$ 106,180 |
$ 103,168 |
$ 99,903 |
Managed Hosting and Cloud |
6,594 |
7,363 |
7,551 |
8,350 |
8,634 |
Total Revenue |
$ 119,946 |
$ 118,215 |
$ 113,731 |
$ 111,518 |
$ 108,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ 20,833 |
$ 21,929 |
$ 18,035 |
$ 17,704 |
$ 16,915 |
Adjusted EBITDA margin (As % of Total
Revenue) |
17.4% |
18.6% |
15.9% |
15.9% |
15.6% |
|
|
|
|
|
|
Cash Capital
Expenditures |
$ 12,434 |
$ 14,780 |
$ 14,878 |
$ 14,134 |
$ 12,929 |
Non-cash Capital
Expenditures |
|
|
|
|
|
Capital Leases |
$ 3,017 |
$ 5,264 |
$ 1,862 |
$ 3,066 |
$ 1,242 |
Leasehold Improvements |
$ -- |
$ 21 |
$ 690 |
$ -- |
$ -- |
Total Capital
Expenditures |
$ 15,451 |
$ 20,065 |
$ 17,430 |
$ 17,200 |
$ 14,171 |
|
|
|
|
|
|
Free cash flow |
$ 8,399 |
$ 7,149 |
$ 3,157 |
$ 3,570 |
$ 3,986 |
|
|
|
|
|
|
Network Access Customer
Data |
|
|
|
|
|
Network Access Customers (At Period
End) |
58,434 |
57,013 |
55,482 |
53,759 |
51,923 |
Net Network Access Customer
Change |
(1,258) |
(1,421) |
(1,531) |
(1,723) |
(1,836) |
Average Monthly Churn Rate
(1) |
1.6% |
1.6% |
1.7% |
1.7% |
1.7% |
Average Monthly Revenue Per Network
Access Customer (2) |
$ 656 |
$ 662 |
$ 653 |
$ 658 |
$ 661 |
(1) Calculated for each period as the average of monthly churn,
which is defined for a given month as the number of network access
customers disconnected in that month divided by the number of
network access customers on the Company's network at the beginning
of that month.
(2) Calculated as the revenue for a period divided by the
average of the number of network access customers at the beginning
of the period and the number of network access customers at the end
of the period, divided by the number of months in the
period. Revenue used to calculate ARPU is defined as the
revenue associated with customers where Cbeyond provides network
access and includes all Network, Voice and Data revenue and the
portion of Managed Hosting and Cloud revenue where Cbeyond provides
network access.
CBEYOND, INC. AND
SUBSIDIARY |
Calculation of
ARPU |
(Dollars in thousands, except
for ARPU) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended, |
|
Mar. 31 |
Jun. 30 |
Sep. 30 |
Dec. 31 |
Mar. 31 |
|
2013 |
2013 |
2013 |
2013 |
2014 |
|
|
|
|
|
|
Calculation of ARPU: |
|
|
|
|
|
Total revenue |
$ 119,946 |
$ 118,215 |
$ 113,731 |
$ 111,518 |
$ 108,537 |
Revenue from non-network customers |
(3,650) |
(3,558) |
(3,564) |
(3,716) |
(3,746) |
(A) Network access customer revenue |
$ 116,296 |
$ 114,657 |
$ 110,167 |
$ 107,802 |
$ 104,791 |
|
|
|
|
|
|
(B) Average Network access
customers |
59,063 |
57,724 |
56,248 |
54,621 |
52,841 |
ARPU (A / B / number of months in
period) |
$ 656 |
$ 662 |
$ 653 |
$ 658 |
$ 661 |
|
|
|
|
|
|
CBEYOND, INC. AND
SUBSIDIARY |
Reconciliation of
Non-GAAP Financial Measure to GAAP Financial Measure |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Three
Months Ended, |
|
Mar. 31 |
Jun. 30 |
Sep. 30 |
Dec. 31 |
Mar. 31 |
|
2013 |
2013 |
2013 |
2013 |
2014 |
|
|
|
|
|
|
Reconciliation of Free Cash Flow and
Adjusted EBITDA to Net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
$ 8,399 |
$ 7,149 |
$ 3,157 |
$ 3,570 |
$ 3,986 |
Cash capital expenditures |
12,434 |
14,780 |
14,878 |
14,134 |
12,929 |
Adjusted EBITDA |
$ 20,833 |
$ 21,929 |
$ 18,035 |
$ 17,704 |
$ 16,915 |
Depreciation and amortization |
(17,605) |
(18,460) |
(20,077) |
(18,815) |
(16,191) |
Non-cash share-based compensation |
(2,979) |
(3,045) |
(2,594) |
(1,821) |
(2,713) |
Realignment costs |
(467) |
-- |
(222) |
(1,467) |
(2,631) |
Strategic review costs |
-- |
-- |
-- |
-- |
(710) |
Costs associated with asset
disposition |
-- |
-- |
-- |
-- |
(100) |
Interest expense, net |
(153) |
(196) |
(267) |
(229) |
(232) |
Income (loss) before income taxes |
(371) |
228 |
(5,125) |
(4,628) |
(5,662) |
|
|
|
|
|
|
Income tax (expense) benefit |
(185) |
(269) |
(213) |
(259) |
(263) |
Net income (loss) |
$ (556) |
$ (41) |
$ (5,338) |
$ (4,887) |
$ (5,925) |
CONTACT: Investor Contact:
Cbeyond, Inc.
Rob Clancy
Senior Vice President of Finance
678-486-8023
rob.clancy@cbeyond.com
Cbeyond, Inc. (MM) (NASDAQ:CBEY)
Graphique Historique de l'Action
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Cbeyond, Inc. (MM) (NASDAQ:CBEY)
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