14% Year Over Year Revenue Growth
Interxion Holding NV (NYSE: INXN), a leading European provider
of carrier and cloud-neutral colocation data centre services,
announced its results today for the three months ended 30 September
2018.
Financial Highlights*
- Revenue increased 14% to €142.2 million
(3Q 2017: €124.6 million).
- Recurring revenue1 increased 15% to
€134.8 million (3Q 2017: €117.4 million).
- Net income increased 16% to €10.9
million (3Q 2017: €9.4 million).
- Adjusted net income2 increased by 16%
to €11.6 million (3Q 2017: €10.0 million).
- Earnings per diluted share increased by
15% to €0.15 (3Q 2017: €0.13).
- Adjusted earnings2 per diluted share
increased by 16% to €0.16 (3Q 2017: €0.14).
- Adjusted EBITDA2 increased by 17% to
€65.8 million (3Q 2017: €56.2 million).
- Adjusted EBITDA margin increased to
46.3% (3Q 2017: 45.1%).
- Capital expenditures, including
intangible assets3, were €103.2 million (3Q 2017: €75.2
million).
- Issued €200 million aggregate principal
amount of additional 4.75% Senior Notes due 2025 at an issue price
of 103.00%.
___________
*Certain comparative figures for the three months and nine
months ended 30 September 2017 have been restated. For further
details, see Note 2 and Note 29 of our 2017 Consolidated Financial
Statements included on Form 20-F, filed with the SEC on 30 April
2018, and note 12 of our Condensed Consolidated Interim Financial
Statements included on Form 6-K, filed with the SEC on 1 November
2018.
Operating Highlights
- During the third quarter, Interxion
completed the following capacity additions:
- 3,300 sqm expansion across two data
centres in Amsterdam;
- 2,400 sqm expansion across two data
centres in Frankfurt, including the opening of FRA13;
- 600 sqm expansion in Marseille;
- 1,200 sqm expansion in Vienna; and
- 200 sqm expansion in Zurich.
- Equipped space increased by 7,700
square metres in the third quarter to 140,300 square metres.
- Revenue generating space increased by
5,000 square metres in the third quarter to 111,200 square
metres.
- Utilisation rate at the end of the
third quarter was 79%.
“Growing demand from the major cloud and content platforms for
Interxion’s highly-connected data centres is driving strong
bookings and steady revenue growth,” said David Ruberg, Interxion’s
Chief Executive Officer. “The underlying demand drivers are
secular in nature and, accordingly, we have enhanced our balance
sheet and expanded capacity in key markets to meet this
demand.”
Quarterly Review
Revenue in the third quarter of 2018 was €142.2 million, a 14%
increase over the third quarter of 2017 and a 2% increase over the
second quarter of 2018. Recurring revenue was €134.8 million, a 15%
increase over the third quarter of 2017 and a 2% increase over the
second quarter of 2018. Recurring revenue in the third quarter
represented 95% of total revenue. On a constant currency4 basis,
revenue in the third quarter of 2018 was 14% higher than in the
third quarter of 2017.
Cost of sales in the third quarter of 2018 was €55.9 million, a
13% increase over the third quarter of 2017 and a 4% increase over
the second quarter of 2018.
Gross profit was €86.3 million in the third quarter of 2018, a
15% increase over the third quarter of 2017 and a 1% increase over
the second quarter of 2018. Gross profit margin was 60.7% in the
third quarter of 2018, compared with 60.2% in the third quarter of
2017 and 61.3% in the second quarter of 2018.
Sales and marketing costs in the third quarter of 2018 were €8.7
million, a 6% increase over the third quarter of 2017 and a 9%
decrease from the second quarter of 2018.
Other general and administrative costs (excluding depreciation
and amortisation, share-based payments, M&A transaction costs
and other adjusting items) were €11.8 million in the third quarter
of 2018, a 12% increase over the third quarter of 2017 and a 2%
decrease from the second quarter of 2018.
Depreciation and amortisation in the third quarter of 2018 was
€32.9 million, an 18% increase from the third quarter of 2017 and a
2% increase from the second quarter of 2018.
Operating income in the third quarter of 2018 was €27.1 million,
an 11% increase from the third quarter of 2017 and a 3% increase
from the second quarter of 2018.
Net finance expense in the third quarter of 2018 was €11.7
million, an 8% increase from the third quarter of 2017 and a 49%
decrease from the second quarter of 2018 (no change from the second
quarter of 2018 when excluding €11.2 million of one-time financing
charges related to the refinancing of our capital structure that
occurred in the second quarter of 2018).
On 20 September 2018, Interxion completed the issuance of €200
million principal amount of additional 4.75% Senior Notes due 2025
at an issue price of 103.00%, resulting in net proceeds of €203.8
million.
Income tax expense for the third quarter of 2018 was €4.4
million, an 8% increase compared with the third quarter of 2017 and
a 59% increase from the second quarter of 2018. The sequential
increase in the quarterly income tax expense reflects the impact on
taxable income of the one-time refinancing charges in the second
quarter of 2018.
Net income was €10.9 million in the third quarter of 2018, a 16%
increase over the third quarter of 2017 and a €10.3 million
increase from the second quarter of 2018, which was impacted by
€11.2 million of one-time charges relating to the refinancing in
the second quarter of 2018.
Adjusted net income was €11.6 million in the third quarter of
2018, a 16% increase over the third quarter of 2017 and a 31%
increase from the second quarter of 2018.
Adjusted EBITDA for the third quarter of 2018 was €65.8 million,
a 17% increase over the third quarter of 2017 and a 4% increase
over the second quarter of 2018. Adjusted EBITDA margin was 46.3%
in the third quarter of 2018, compared with 45.1% in the third
quarter of 2017 and 45.7% in the second quarter of 2018.
Net cash flows from operating activities were €53.9 million in
the third quarter of 2018, compared with €32.5 million in the third
quarter of 2017 and €31.6 million in the second quarter of
2018.
Cash generated from operations5 was €60.9 million in the third
quarter of 2018, compared with €55.2 million in the third quarter
of 2017 and €55.1 million in the second quarter of 2018.
Capital expenditures, including intangible assets, were €103.2
million in the third quarter of 2018, compared with €75.2 million
in the third quarter of 2017 and €120.5 million in the second
quarter of 2018.
Cash and cash equivalents were €289.9 million at 30 September
2018, compared with €38.5 million at year end 2017.
Total borrowings, net of deferred financing fees, were €1,289.7
million at 30 September 2018, compared with €832.6 million at year
end 2017.
Equipped space at the end of the third quarter of 2018 was
140,300 square metres, compared with 118,900 square metres at the
end of the third quarter of 20176 and 132,600 square metres at the
end of the second quarter of 2018. Revenue generating space at the
end of the third quarter of 2018 was 111,200 square metres,
compared with 97,100 square metres at the end of the third quarter
of 20176 and 106,200 square metres at the end of the second quarter
of 2018. Utilisation rate, the ratio of revenue-generating space to
equipped space, was 79% at the end of the third quarter of 2018,
compared with 82% at the end of the third quarter of 2017 and 80%
at the end of the second quarter of 2018.
Business Outlook
Interxion today is reaffirming guidance for Revenue and Adjusted
EBITDA and updating guidance for full year 2018 for Capital
expenditures (including intangibles):
Revenue €553 million – €569 million Adjusted EBITDA
€250 million – €260 million Capital expenditures (including
intangibles) €425 million – €450 million
Conference Call to Discuss Results
Interxion will host a conference call today at 8:30 a.m. ET
(12:30 p.m. GMT, 1:30 p.m. CET) to discuss the results.
To participate on this call, U.S. callers may dial toll free
1-866-966-1396; callers outside the U.S. may dial direct +44 (0)
2071 928 000. The conference ID for this call is INXN. 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 15 November 2018. To access
the replay, U.S. callers may dial toll free 1-866-331-1332; callers
outside the U.S. may dial direct +44 (0) 3333 009 785. The replay
access number is 4092846.
Forward-looking Statements
This communication contains forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such forward-looking statements. Factors that could cause actual
results and future events to differ materially from Interxion’s
expectations include, but are not limited to, the difficulty of
reducing operating expenses in the short term, the 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, delays in remediating the material
weakness in internal control over financial reporting and/or making
disclosure controls and procedure effective, certain other risks
detailed herein and other risks described from time to time in
Interxion’s filings with the United States Securities and Exchange
Commission (the “SEC”).
Interxion does not assume any obligation to update the
forward-looking information contained in this report.
Non-IFRS Financial Measures
Included in these materials are certain non-IFRS financial
measures, which are measures of our financial performance that are
not calculated and presented in accordance with IFRS, within the
meaning of applicable SEC rules. These measures are as follows: (i)
Adjusted EBITDA; (ii) Recurring revenue; (iii) Revenue on a
constant currency basis; (iv) Adjusted net income; (v) Adjusted
basic earnings per share; (vi) Adjusted diluted earnings per share
and (vii) Cash generated from operations.
Other companies may present Adjusted EBITDA, Recurring revenue,
Revenue on a constant currency basis, Adjusted net income, Adjusted
basic earnings per share, Adjusted diluted earnings per share and
Cash generated from operations differently than we do. Each of
these measures are not measures of financial performance under IFRS
and should not be considered as an alternative to operating income
or as a measure of liquidity or an alternative to Profit for the
period attributable to shareholders (“net income”) as indicators of
our operating performance or any other measure of performance
implemented in accordance with IFRS.
Adjusted EBITDA, Recurring revenue and Revenue on a constant
currency basis
We define Adjusted EBITDA as Operating income adjusted for the
following items, which may occur in any period, and which
management believes are not representative of our operating
performance:
- Depreciation and amortisation –
property, plant and equipment and intangible assets (except
goodwill) are depreciated on a straight-line basis over the
estimated useful life. We believe that these costs do not represent
our operating performance.
- Share-based payments – represents
primarily the fair value at the date of grant of employee equity
awards, which is recognised as an expense over the vesting period.
In certain cases, the fair value is redetermined for market
conditions at each reporting date, until the final date of grant is
achieved. We believe that this expense does not represent our
operating performance.
- Income or expense related to the
evaluation and execution of potential mergers or acquisitions
(“M&A”) – under IFRS, gains and losses associated with M&A
activity are recognised in the period in which such gains or losses
are incurred. We exclude these effects because we believe they are
not reflective of our on-going operating performance.
- Adjustments related to terminated and
unused data centre sites – these gains and losses relate to
historical leases entered into for certain brownfield sites, with
the intention of developing data centres, which were never
developed and for which management has no intention of developing
into data centres. We believe the impact of gains and losses
related to unused data centres are not reflective of our business
activities and our on-going operating performance.
In certain circumstances, we may also adjust for other items
that management believes are not representative of our current
on-going performance. Examples include: adjustments for the
cumulative effect of a change in accounting principle or estimate,
impairment losses, litigation gains and losses or windfall gains
and losses.
We define Recurring revenue as revenue incurred from colocation
and associated power charges, office space, amortised set-up fees,
cross-connects and certain recurring managed services (but
excluding any ad hoc managed services) provided by us directly or
through third parties, excluding rents received for the sublease of
unused sites.
We believe Adjusted EBITDA and Recurring revenue provide useful
supplemental information to investors regarding our on-going
operational performance. These measures help us and our investors
evaluate the on-going operating performance of the business after
removing the impact of our capital structure (primarily interest
expense) and our asset base (primarily depreciation and
amortisation). Management believes that the presentation of
Adjusted EBITDA, when combined with the primary IFRS presentation
of net income, provides a more complete analysis of our operating
performance. Management also believes the use of Adjusted EBITDA
facilitates comparisons between us and other data centre operators
(including other data centre operators that are REITs) and other
infrastructure-based businesses. Adjusted EBITDA is also a relevant
measure used in the financial covenants of our revolving credit
facility and our 4.75% Senior Notes due 2025.
A reconciliation from net income to Adjusted EBITDA is provided
in the tables attached to this press release. Adjusted EBITDA and
other key performance indicators may not be indicative of our
historical results of operations based on IFRS, nor are they meant
to be predictive of future results under IFRS.
We present constant currency information for revenue to provide
a framework for assessing how our underlying businesses performed
excluding the effect of foreign currency rate fluctuations. To
present this information, current and comparative prior period
results for entities reporting in currencies other than Euro are
converted into Euro using the average exchange rates from the prior
period rather than the actual exchange rates in effect during the
current period.
We believe that revenue growth is a key indicator of how a
company is progressing from period to period and presenting
constant currency information for revenue provides useful
supplemental information to investors regarding our on-going
operational performance because it helps us and our investors
evaluate the on-going operating performance of the business after
removing the impact of acquisitions and currency exchange
rates.
Adjusted net income, Adjusted basic earnings per share and
Adjusted diluted earnings per share
We define Adjusted net income as net income adjusted for the
following items and the related income tax effect, which may occur
in any period, and which management believes are not reflective of
our operating performance:
- Income or expense related to the
evaluation and execution of potential mergers or acquisitions
(“M&A”) – under IFRS, gains and losses associated with M&A
activity are recognised in the period in which such gains or losses
are incurred. We exclude these effects because we believe they are
not reflective of our on-going operating performance.
- Adjustments related to provisions –
these adjustments are made for adjustments in provisions that are
not reflective of the on-going operating performance of Interxion.
These adjustments may include changes in provisions for onerous
lease contracts.
- Adjustments related to capitalised
interest – under IFRS, we are required to calculate and capitalise
interest allocated to the investment in data centres and exclude it
from net income. We believe that reversing the impact of
capitalised interest provides information about the impact of the
total interest costs and facilitates comparisons with other data
centre operators.
In certain circumstances, we may also adjust for other items
that management believes are not representative of our current
on-going performance. Examples include: adjustments for the
cumulative effect of a change in accounting principle or estimate,
impairment losses, litigation gains and losses or windfall gains
and losses.
Management believes that the exclusion of certain items listed
above provides useful supplemental information to net income to aid
investors in evaluating the operating performance of our business
and comparing our operating performance with other data centre
operators and infrastructure companies. We believe the presentation
of Adjusted net income, when combined with net income prepared in
accordance with IFRS, is beneficial to a complete understanding of
our performance. A reconciliation from reported net income to
Adjusted net income is provided in the tables attached to this
press release.
Adjusted basic earnings per share and Adjusted diluted earnings
per share amounts are determined on Adjusted net income.
Cash generated from operations
Cash generated from operations is defined as net cash flows from
operating activities, excluding interest and corporate income tax
payments and receipts. Management believes that the exclusion of
these items provides useful supplemental information to net cash
flows from operating activities to aid investors in evaluating the
cash generating performance of our business.
Management’s outlook for 2018 included in this press release
includes a range for expected Adjusted EBITDA, a non-IFRS financial
measure, which excludes items that management believes are not
representative of our operating performance. These items include,
but are not limited to, depreciation and amortisation, share-based
payments, income or expense related to the evaluation and execution
of potential mergers or acquisitions, adjustments related to
terminated and unused data centre sites, and other significant
items that currently cannot be predicted. The exact amount of these
items is not currently determinable but may be significant.
Accordingly, the company is unable to provide equivalent
reconciliations from the corresponding forward-looking IFRS
measures to expected Adjusted EBITDA.
About Interxion
Interxion (NYSE: INXN) is a leading provider of carrier and
cloud-neutral colocation data centre services in Europe, serving a
wide range of customers through more than 50 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 over 700
connectivity providers, 21 European Internet exchanges, and most
leading cloud and digital media platforms across its footprint,
Interxion has created connectivity, cloud, content and finance hubs
that foster growing customer communities of interest. For more
information, please visit www.interxion.com.
1 Recurring revenue is revenue incurred from colocation and
associated power charges, office space, amortised set-up fees,
cross-connects and certain recurring managed services (but
excluding any ad hoc managed services) provided by us directly or
through third parties, excluding rents received for the sublease of
unused sites.
2 Adjusted net income (or ‘Adjusted earnings’) and Adjusted
EBITDA are non-IFRS figures intended to adjust for certain items
and are not measures of financial performance under IFRS. Complete
definitions can be found in the “Non-IFRS Financial Measures”
section in this press release. Reconciliations of net income to
Adjusted EBITDA and net income to Adjusted net income can be found
in the financial tables later in this press release.
3 Capital expenditures, including intangible assets, represent
payments to acquire property, plant, equipment and intangible
assets, as recorded in the consolidated statement of cash flows as
"Purchase of property, plant and equipment" and "Purchase of
intangible assets", respectively.
4 We present constant currency information to provide a
framework for assessing how our underlying businesses performed
excluding the effect of foreign currency rate fluctuations. For
purposes of calculating Revenue on a constant currency basis,
current and comparative prior period results for entities reporting
in currencies other than Euro are converted into Euro using the
average exchange rates from the prior period rather than the actual
exchange rates in effect during the current period. The
reconciliation of total revenue growth to total revenue growth on a
constant currency basis, is as follows:
Three months ended 30 September
2018
Year-on-year Sequential
Reported total revenue growth 14.1%
2.4%
Add back: impact of foreign currency translation 0.4% 0.1% Total
revenue growth on a constant currency basis 14.5% 2.5%
Percentages may not sum due to
rounding
5 We define Cash generated from operations as net cash flows
from operating activities, excluding interest and corporate income
tax payments and receipts.
6 Starting from the end of 1Q 2018, the number of square metres
includes 2,300 sqm of equipped space and 1,300 sqm of revenue
generating space from Interxion Science Park. The number of square
metres in 3Q 2017 excludes the impact of Interxion Science
Park.
INTERXION HOLDING NV CONDENSED CONSOLIDATED INCOME
STATEMENTS (in €'000 ― except per share data and where stated
otherwise) (unaudited)
Three Months
ended Nine Months ended Sep-30 Sep-30
Sep-30 Sep-30
2018
2017(a)
2018
2017(a)
Revenue 142,191 124,647 414,851
359,420 Cost of sales (55,852 ) (49,608 ) (162,250 )
(141,628 )
Gross Profit 86,339 75,039
252,601 217,792 Other income - - 86 27 Sales and
marketing costs (8,710 ) (8,247 ) (27,019 ) (24,458 ) General and
administrative costs (50,552 ) (42,419 ) (145,447 ) (120,841 )
Operating income 27,077
24,373 80,221 72,520 Net finance expense
(11,732 ) (10,833 ) (46,031 ) (32,040 )
Profit before income taxes 15,345 13,540
34,190 40,480 Income tax expense (4,445 ) (4,131 )
(11,052 ) (11,158 )
Net income 10,900
9,409 23,138 29,322 Basic
earnings per share(b): (€) 0.15 0.13 0.32 0.41 Diluted earnings per
share(c): (€) 0.15 0.13 0.32 0.41 Number of shares
outstanding at the end of the period (shares in thousands) 71,673
71,327 71,673 71,327 Weighted average number of shares for Basic
EPS (shares in thousands) 71,642 71,195 71,518 71,004 Weighted
average number of shares for Diluted EPS (shares in thousands)
72,091 71,848 71,950 71,655
As at
Sep-30 Sep-30
Capacity
metrics
2018 2017 Equipped space (in square meters)(d) 140,300
118,900 Revenue generating space (in square meters)(d) 111,200
97,100 Utilisation rate 79 % 82 %
(a)
Certain comparative figures for the three
months and nine months ended 30 September 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
Consolidated Financial Statements included on Form 20-F, filed with
the SEC on 30 April 2018, and note 12 of our Condensed Consolidated
Interim Financial Statements included on Form 6-K, filed with the
SEC on 1 November 2018.
(b)
Basic earnings per share are calculated as
net income divided by the weighted average number of shares for
Basic EPS.
(c)
Diluted earnings per share are calculated
as net income divided by the weighted average number of shares for
Diluted EPS.
(d)
Starting from the end of 1Q 2018, the
number of square metres includes 2,300 sqm of equipped space and
1,300 sqm of revenue generating space from Interxion Science Park.
The number of square metres in 3Q 2017 excludes the impact of
Interxion Science Park.
INTERXION HOLDING NV NOTES TO CONDENSED
CONSOLIDATED INCOME STATEMENTS: SEGMENT INFORMATION (in €'000 ―
except where stated otherwise) (unaudited)
Three Months ended Nine Months ended
Sep-30 Sep-30
Sep-30 Sep-30
2018
2017(a)
2018
2017(a)
Consolidated
Recurring revenue 134,754 117,392 393,425 339,094 Non-recurring
revenue 7,437 7,255 21,426 20,326
Revenue 142,191 124,647
414,851 359,420 Net income
10,900 9,409 23,138 29,322 Net income
margin 7.7 % 7.5 % 5.6 % 8.2 %
Operating income
27,077 24,373 80,221 72,520 Operating
income margin 19.0 % 19.6 % 19.3 % 20.2 %
Adjusted EBITDA
65,783 56,200 190,089
161,850 Gross profit margin 60.7
% 60.2 % 60.9 % 60.6
% Adjusted EBITDA margin 46.3 %
45.1 % 45.8 % 45.0 %
Total assets 2,223,963 1,620,036 2,223,963 1,620,036 Total
liabilities 1,593,991 1,034,037 1,593,991 1,034,037 Capital
expenditure, including intangible assets(b) (103,185 ) (75,158 )
(319,894 ) (186,356 )
France, Germany,
the Netherlands, and the UK
Recurring revenue 89,178 76,554 259,949 220,736 Non-recurring
revenue 4,409 4,279 13,062 12,348
Revenue 93,587 80,833 273,011
233,084 Operating income 30,367 24,186
88,314 72,956 Operating income margin 32.4 % 29.9 %
32.3 % 31.3 %
Adjusted EBITDA 51,847
43,414 151,214 126,697
Gross profit margin 61.9 % 61.0
% 62.1 % 61.6 % Adjusted
EBITDA margin 55.4 % 53.7 %
55.4 % 54.4 % Total assets
1,425,769 1,156,329 1,425,769 1,156,329 Total liabilities 282,129
242,646 282,129 242,646 Capital expenditure, including intangible
assets(b) (80,066 ) (51,593 ) (233,196 ) (127,412 )
Rest of
Europe
Recurring revenue 45,576 40,838 133,476 118,358 Non-recurring
revenue 3,028 2,976 8,364 7,978
Revenue 48,604 43,814
141,840 126,336 Operating income
17,993 18,315 56,231 51,467 Operating
income margin 37.0 % 41.8 % 39.6 % 40.7 %
Adjusted EBITDA
28,690 25,914 83,432
73,610 Gross profit margin 66.4
% 65.8 % 66.3 % 65.9
% Adjusted EBITDA margin 59.0 %
59.1 % 58.8 % 58.3 %
Total assets 464,250 388,447 464,250 388,447 Total
liabilities 92,088 79,875 92,088 79,875 Capital expenditure,
including intangible assets(b) (20,726 ) (21,243 ) (73,198 )
(51,095 )
Corporate and
other
Operating income (21,283 ) (18,128
) (64,324 ) (51,903 )
Adjusted EBITDA (14,754 ) (13,128
) (44,557 ) (38,457 )
Total assets 333,944 75,260 333,944 75,260 Total liabilities
1,219,774 711,516 1,219,774 711,516 Capital expenditure, including
intangible assets(b) (2,393 ) (2,322 ) (13,500 ) (7,849 )
(a)
Certain comparative figures for the three
months and nine months ended 30 September 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
Consolidated Financial Statements included on Form 20-F, filed with
the SEC on 30 April 2018, and note 12 of our Condensed Consolidated
Interim Financial Statements included on Form 6-K, filed with the
SEC on 1 November 2018.
(b)
Capital expenditure, including intangible
assets, represents payments to acquire property, plant and
equipment and intangible assets, as recorded in the condensed
consolidated statements of cash flows as "Purchase of property,
plant and equipment" and "Purchase of intangible assets",
respectively.
INTERXION HOLDING NV NOTES TO CONDENSED
CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION
(in €'000 ― except where stated otherwise) (unaudited)
Three Months ended Nine Months
ended Sep-30 Sep-30
Sep-30 Sep-30
2018
2017(a)
2018
2017(a)
Reconciliation to
Adjusted EBITDA
Consolidated
Net income 10,900 9,409 23,138
29,322 Income tax expense 4,445 4,131 11,052
11,158
Profit before taxation 15,345
13,540 34,190 40,480 Net finance expense
11,732 10,833 46,031 32,040
Operating income 27,077 24,373 80,221
72,520 Depreciation and amortisation 32,885 27,790 94,635
79,183 Share-based payments 3,942 2,404 11,192 7,213 Income or
expense related to the evaluation and execution of potential
mergers or acquisitions: M&A transaction costs(b) 689 1,633
2,937 2,961 Re-assessment of indirect taxes(c) 1,190 - 1,190 -
Items related to sub-leases on unused data centre sites(d) -
- (86 ) (27 )
Adjusted EBITDA(e)
65,783
56,200 190,089 161,850
France, Germany,
the Netherlands, and the UK
Operating income 30,367 24,186
88,314 72,956 Depreciation and amortisation 21,173
18,788 62,075 52,783 Share-based payments 307 440 911 985 Items
related to sub-leases on unused data centre sites(d) - -
(86 ) (27 )
Adjusted EBITDA(e)
51,847
43,414 151,214 126,697
Rest
of Europe
Operating income 17,993 18,315
56,231 51,467 Depreciation and amortisation 9,252
7,475 25,227 21,819 Share-based payments 255 124 784 324
Re-assessment of indirect taxes(c) 1,190 - 1,190
-
Adjusted EBITDA(e)
28,690
25,914 83,432 73,610
Corporate and
Other
Operating income (21,283 )
(18,128 ) (64,324 ) (51,903
) Depreciation and amortisation 2,460 1,527 7,333 4,581
Share-based payments 3,380 1,840 9,497 5,904 Income or expense
related to the evaluation and execution of potential mergers or
acquisitions: M&A transaction costs(b) 689 1,633
2,937 2,961
Adjusted EBITDA(e)
(14,754
) (13,128 ) (44,557 )
(38,457 )
(a)
Certain comparative figures for the three
months and nine months ended 30 September 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
Consolidated Financial Statements included on Form 20-F, filed with
the SEC on 30 April 2018, and note 12 of our Condensed Consolidated
Interim Financial Statements included on Form 6-K, filed with the
SEC on 1 November 2018.
(b)
“M&A transaction costs” are costs
associated with the evaluation, diligence and conclusion or
termination of merger or acquisition activity. These costs are
included in “General and administrative costs”.
(c)
This re-assessment relates to years prior
to 2018 and is therefore not representative of our current on-going
business.
(d)
“Items related to sub-leases on unused
data centre sites” represents the income on sub-lease of portions
of unused data centre sites to third parties. This income is
treated as “Other income”.
(e)
“Adjusted EBITDA” is a non-IFRS financial
measure. See “Non-IFRS Financial Measures” for more information,
including why we believe Adjusted EBITDA is useful, and the
limitations on the use of Adjusted EBITDA.
INTERXION HOLDING NV CONDENSED CONSOLIDATED
BALANCE SHEET (in €'000 ― except where stated otherwise)
(unaudited)
As at
Sep-30 Dec-31
2018 2017
Non-current assets
Property, plant and equipment 1,580,002 1,342,471 Intangible assets
61,018 60,593 Goodwill 38,900 38,900 Deferred tax assets 30,362
24,470 Other investments 6,689 3,693 Other non-current assets
19,248 13,674
1,736,219 1,483,801
Current assets Trade receivables and other current assets
197,884 179,786 Cash and cash equivalents 289,860 38,484
487,744 218,270 Total
assets 2,223,963 1,702,071
Shareholders’ equity Share capital 7,167 7,141 Share premium
551,424 539,448 Foreign currency translation reserve 2,194 2,948
Hedging reserve, net of tax (156 ) (169 ) Accumulated profit 69,343
47,360
629,972 596,728 Non-current
liabilities Other non-current liabilities 23,879 15,080
Deferred tax liabilities 24,765 21,336 Borrowings 1,287,192
724,052
1,335,836 760,468 Current
liabilities Trade payables and other current liabilities
245,995 229,878 Income tax liabilities 7,281 6,237 Borrowings 4,879
108,760
258,155 344,875
Total liabilities 1,593,991 1,105,343
Total liabilities and shareholders’ equity
2,223,963 1,702,071
INTERXION HOLDING NV NOTES TO THE CONDENSED CONSOLIDATED
BALANCE SHEET: BORROWINGS (in €'000 ― except where stated
otherwise) (unaudited)
As at
Sep-30 Dec-31 2018 2017
Borrowings net of
cash and cash equivalents
Cash and cash equivalents 289,860
38,484 4.75% Senior Notes due 2025(a)
1,187,805 - 6.00% Senior Secured Notes due 2020(b) - 628,141
Mortgages 53,635 53,640 Financial leases 50,631 51,127 Borrowings
under our Revolving Facilities - 99,904
Borrowings
excluding Revolving Facility deferred financing costs
1,292,071 832,812 Revolving Facility
deferred financing costs(c) (2,414 ) (204 )
Total borrowings
1,289,657 832,608
Borrowings net of cash and cash equivalents 999,797
794,124
(a)
€1,200 million 4.75% Senior Notes due 2025
include a premium on additional issuances and are shown after
deducting commissions, offering fees and expenses.
(b)
€625 million 6.00% Senior Secured Notes
due 2020 included a premium on additional issuances and are shown
after deducting underwriting discounts and commissions, offering
fees and expenses. The Senior Secured Notes were redeemed with a
portion of the proceeds from the June 2018 issuance of the 4.75%
Senior Notes due 2025.
(c)
Deferred financing costs of €2.4 million
as of 30 September 2018 were incurred in connection with the €200
million Senior Unsecured Revolving Credit Facility, entered into on
18 June 2018. Deferred financing costs of €0.2 million as of 31
December 2017 were incurred in connection with the €100 million
Senior Secured Revolving Facility, which was repaid in 2018.
INTERXION HOLDING NV CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in €'000 ― except where stated
otherwise) (unaudited)
Three Months
ended Nine Months ended Sep-30 Sep-30
Sep-30 Sep-30
2018
2017(a)
2018
2017(a)
Net income
10,900 9,409 23,138
29,322 Depreciation and amortisation 32,885 27,790 94,635
79,183 Share-based payments 3,620 2,096 10,482 5,906 Net finance
expense 11,732 10,833 46,031 32,040 Income tax expense 4,445
4,131 11,052 11,158 63,582 54,259 185,338
157,609 Movements in trade receivables and other assets (193 ) (266
) (20,246 ) (13,654 ) Movements in trade payables and other
liabilities (2,510 ) 1,212 8,976 14,793
Cash generated from / (used in) operations 60,879
55,205 174,068 158,748 Interest and fees
paid(b) (3,014 ) (19,476 ) (41,846 ) (40,389 ) Interest received 2
193 2 140 Income tax paid (4,005 ) (3,439 ) (12,171 ) (8,744 )
Net cash flows from / (used in) operating activities
53,862 32,483 120,053 109,755 Cash
flows from / (used in) investing activities Purchase of
property, plant and equipment (102,143 ) (73,708 ) (313,894 )
(180,030 ) Financial investments - deposits (13 ) 30 267 (336 )
Acquisition InterXion Science Park B.V. - - - (77,517 ) Purchase of
intangible assets (1,042 ) (1,450 ) (6,000 ) (6,326 ) Loans
provided (857 ) - (2,108 ) (1,341 )
Net cash flows from /
(used in) investing activities (104,055 )
(75,128 ) (321,735 ) (265,550
) Cash flows from / (used in) financing activities
Proceeds from exercised options 262 2,682 1,520 6,771 Proceeds from
mortgages 5,970 - 5,969 - Repayment of mortgages (548 ) (624 )
(6,044 ) (2,045 ) Proceeds from revolving credit facilities -
30,000 148,814 104,775 Repayment of revolving facilities - -
(250,724 ) (30,000 ) Proceeds 4.75% Senior Notes 204,800 -
1,194,800 - Repayment 6.00% Senior Secured Notes - - (634,375 ) -
Interest received at issuance of additional notes 2,428 - 2,428 -
Transaction costs 4.75% Senior Notes (5,504 ) - (6,696 ) -
Transaction costs 2018 revolving credit facility (926 ) -
(2,562 ) -
Net cash flows from / (used in) financing
activities 206,482 32,058 453,130
79,501 Effect of exchange rate changes on cash 8 (452
) (72 ) (1,395 )
Net increase / (decrease) in cash and cash
equivalents 156,297 (11,039 )
251,376 (77,689 ) Cash and cash equivalents,
beginning of period 133,563 49,243 38,484
115,893
Cash and cash equivalents, end of period
289,860 38,204 289,860
38,204
(a)
Certain comparative figures for the three
months and nine months ended 30 September 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
Consolidated Financial Statements included on Form 20-F, filed with
the SEC on 30 April 2018, and note 12 of our Condensed Consolidated
Interim Financial Statements included on Form 6-K, filed with the
SEC on 1 November 2018.
(b)
Interest and fees paid is reported net of
cash interest capitalised, which is reported as part of “Purchase
of property, plant and equipment".
INTERXION HOLDING NV NOTES TO CONDENSED
CONSOLIDATED INCOME STATEMENTS: ADJUSTED NET INCOME
RECONCILIATION (in €'000 ― except per share data and where
stated otherwise) (unaudited)
Three
Months ended Nine Months ended Sep-30 Sep-30
Sep-30 Sep-30
2018
2017(a)
2018
2017(a)
Net income - as reported 10,900
9,409 23,138 29,322 Add back +
Charges related to termination of financing arrangements(b) - -
11,171 - + Re-assessment of indirect taxes(c) 1,734 - 1,734 - +
M&A transaction costs 689 1,633 2,937
2,961 2,423 1,633 15,842 2,961
Reverse - Interest
capitalised (1,541 ) (840 ) (3,606 ) (2,605 ) (1,541 ) (840 )
(3,606 ) (2,605 )
Tax effect of above add-backs &
reversals (168 ) (198 ) (3,007 ) (89 )
Adjusted net income 11,614
10,004 32,367 29,589
Reported basic EPS: (€) 0.15 0.13 0.32 0.41 Reported diluted
EPS: (€) 0.15 0.13 0.32 0.41 Adjusted basic EPS: (€) 0.16
0.14 0.45 0.42 Adjusted diluted EPS: (€) 0.16 0.14 0.45 0.41
(a)
Certain comparative figures for the three
months and nine months ended 30 September 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
Consolidated Financial Statements included on Form 20-F, filed with
the SEC on 30 April 2018, and note 12 of our Condensed Consolidated
Interim Financial Statements included on Form 6-K, filed with the
SEC on 1 November 2018.
(b)
These charges relate to the repayment of
our 6.00% Senior Secured Notes due 2020 and the termination of our
revolving credit facility agreements in 2Q18.
(c)
This re-assessment relates to years prior
to 2018 and is therefore not representative of our current on-going
business.
INTERXION HOLDING NV Status of Announced
Expansion Projects as at 1 November 2018 with Target Open
Dates after 30 June 2018
CAPEX (a)(b)
EquippedSpace (a)
Market Project (€ million)
(sqm) Schedule Amsterdam AMS8:
Phases 3 - 6 63 5,400 3Q 2018 - 1Q 2019(c) Amsterdam AMS9: Phase 2
8 500 3Q 2018(d) Amsterdam AMS10: Phases 1 - 3 195 9,500 4Q 2019 -
3Q 2020(e) Copenhagen CPH2: Phases 3 - 5 18 1,500 2Q 2018 - 2Q
2019(f) Dusseldorf DUS2: Phase 3 5 500 2Q 2019 Frankfurt FRA6:
Phase 6 5 400 3Q 2018 - 1Q 2019(g) Frankfurt FRA13: Phases 1 - 2
New Build 90 4,900 3Q 2018 - 1Q 2019(h) Frankfurt FRA14: Phases 1 -
2 New Build 76 4,600 3Q 2019 - 4Q 2019(i) Frankfurt FRA15: Phases 1
New Build 108 2,300 1Q 2020 London LON3: New Build 35 1,800 4Q 2018
- 1Q 2019(j) Madrid MAD3: New Build 44 2,500 2Q 2019(k) Marseille
MRS2: Phase 2 - 4 72 4,200 2Q 2018 - 3Q 2019(l) Marseille MRS3:
Phase 1 New Build 79 2,300 4Q 2019 Paris PAR7.2: Phase B (cont.) -
C 47 2,500 2Q 2018 -1Q 2019(m) Stockholm STO5: Phases 2 -3 19 1,200
1Q 2018 - 1Q 2019(n) Vienna VIE2: Phase 7 - 9 94 4,300 4Q 2017 - 4Q
2020(o) Zurich ZUR1: Phase 6 10 300 1Q 2019
Total €
968 48,700
(a)
CAPEX and Equipped space are approximate
and may change. SQM figures are rounded to nearest 100 sqm unless
otherwise noted, and totals may not sum due to rounding.
(b)
CAPEX reflects the total spend for the
projects listed at full power and capacity and the amounts shown in
the table above may be invested over time.
(c)
AMS8: Phases 3 and 4 (2,800 sqm total)
opened in 3Q 2018; phases 5 and 6 (1,300 sqm each) are scheduled to
open in 4Q 2018 and 1Q 2019.
(d)
AMS9: Phase 2 (500 sqm) opened in 3Q
2018.
(e)
AMS10: Phase 1 (2,700 sqm) is scheduled to
open in 4Q 2019; phase 2 (4,100 sqm) is scheduled to open in 1Q
2020, phase 3 (2,700 sqm) is scheduled to open in 3Q 2020.
(f)
CPH2: Phases 3 and 4 (900 sqm total)
opened in 2Q 2018; phase 5 (600 sqm) is scheduled to open in 2Q
2019.
(g)
FRA6: Phase 6 part 1 (200 sqm) opened in
3Q 2018; the rest is scheduled to open in 1Q 2019.
(h)
FRA13: Phase 1 (2,300 sqm) opened in 3Q
2018; phase 2 (2,600 square metres) is scheduled to open in 1Q
2019.
(i)
FRA14: Phase 1 (2,400 sqm) is scheduled to
open in 3Q 2019; phase 2 (2,200 sqm) is scheduled to open in 4Q
2019.
(j)
LON3: 900 sqm is scheduled to open in 4Q
2018; another 900 square metres is scheduled to open in 1Q
2019.
(k)
MAD3: Capex total for MAD3 includes land
purchase price.
(l)
MRS2 Phase 2 (700 sqm) opened in 2Q 2018
and Q3; phases 3 and 4 (total 3,500 sqm) are scheduled to open in
2Q 2019 and 3Q 2019.
(m)
PAR7.2: Phase B (cont.) (500 sqm) opened
in 2Q 2018; phase C (2,000 sqm) is scheduled to open in 1Q
2019.
(n)
STO5: Phases 2 and 3 - 100 sqm opened in
1Q 2018; 300 sqm opened in 2Q 2018; 800 sqm is scheduled to open in
1Q 2019.
(o)
VIE2: 2,300 sqm opened in 4Q 2017 through
3Q 2018; the remaining 2,000 sqms are scheduled to open in 4Q 2018
- 4Q 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181101005486/en/
InterxionJim HusebyInvestor
Relations+1-813-644-9399IR@interxion.com
InterXion Holding NV (NYSE:INXN)
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