Interxion Holding NV (NYSE:INXN), a leading European provider of carrier
and cloud-neutral colocation data centre services, today announced its
results for the three-month period ended 31 March 2019.
Financial Highlights
- Revenue increased by 13% to €151.5 million (1Q 2018: €133.8 million).
-
Recurring revenue1 increased by 14% to €145.3 million (1Q
2018: €127.0 million). - Net income decreased by 28% to €8.4 million (1Q 2018: €11.7 million).
-
Adjusted net income2 decreased by 41% to €7.0 million (1Q
2018: €11.9 million). - Diluted earnings per share decreased by 28% to €0.12 (1Q 2018: €0.16).
-
Adjusted diluted earnings per share2 decreased by 41% to
€0.10 (1Q 2018: €0.17). -
Adjusted EBITDA2 increased by 27% to €77.3 million (1Q
2018: €60.9 million). - Adjusted EBITDA margin increased to 51.0% (1Q 2018: 45.5%).
-
Adjusted EBITDA excluding the impact of IFRS 162 increased
by 14% to €69.3 million (1Q 2018: €60.9 million) and Adjusted EBITDA
margin excluding the impact of IFRS 16 increased to 45.7% (1Q 2018:
45.5%). -
Capital expenditures, including intangible assets3, were
€144.1 million (1Q 2018: €96.2 million).
Operating Highlights
-
Equipped space increased by 3,500 square metres during the quarter to
148,300 square metres. -
Revenue generating space increased by 4,000 square metres during the
quarter to 119,000 square metres. - Utilisation rate at the end of the quarter was 80%.
-
During the first quarter, Interxion completed the following capacity
additions:- 2,600 sqm in Frankfurt;
- 300 sqm in London; and
- 300 sqm in Dusseldorf.
-
In April, Interxion acquired a 40% equity interest in Icolo Ltd., a
Kenyan data centre operator.
“Interxion continues to experience strong demand in Europe, with the
cloud and content platforms continuing to expand across our pan-European
footprint, driving 14% recurring revenue growth in the first quarter and
providing support for our ongoing expansion program,” said David Ruberg,
Interxion’s Chief Executive Officer. “Interxion’s highly-connected data
centres and value-enhancing communities of interest continue to attract
mission-critical and latency sensitive applications, contributing to
sustainable attractive returns for our shareholders.”
Quarterly Review
The implementation of International Financial Reporting Standard –
Leases (“IFRS 16”) on January 1, 2019, had a significant impact on our
reported numbers as at and for the three-month period ended 31 March
2019. While IFRS 16 had no impact on our underlying cash flows, the new
accounting treatment applicable to operating leases resulted in a
reduction in our reported rent expense, which had a positive impact on
reported gross profit and Adjusted EBITDA. IFRS 16 also resulted in an
increase in depreciation and interest charges, which had a negative
impact on net income and earnings per share. In addition, the new
accounting treatment under IFRS 16 impacted our balance sheet, resulting
in an increase in reported liabilities, together with a corresponding
increase in right of use assets, in each case, as a result of including
both future lease liabilities and right of use assets on balance sheet.
Revenue in the first quarter of 2019 was €151.5 million, a 13% increase
over the first quarter of 2018 and a 3% increase over the fourth quarter
of 2018. Recurring revenue was €145.3 million, a 14% increase over the
first quarter of 2018 and a 4% increase over the fourth quarter of 2018.
Recurring revenue in the first quarter represented 96% of total revenue.
On a constant currency4 basis, revenue in the first quarter
of 2019 was 13% higher than in the first quarter of 2018. Neither
foreign exchange movements nor the adoption of IFRS 16 had a meaningful
impact on reported revenue in the first quarter of 2019.
Cost of sales in the first quarter of 2019 was €50.4 million, a 4%
decrease over the first quarter of 2018 and a 12% decrease over the
fourth quarter of 2018.
Gross profit was €101.1 million in the first quarter of 2019, a 25%
increase over the first quarter of 2018 and a 13% increase over the
fourth quarter of 2018. Gross profit margin was 66.7% in the first
quarter of 2019, compared with 60.6% in the first quarter of 2018 and
61.1% in the fourth quarter of 2018.
Sales and marketing costs in the first quarter of 2019 were €9.2
million, a 5% increase over the first quarter of 2018 and a 3% decrease
from the fourth quarter of 2018.
General and administrative costs, excluding the items we adjust for in
the determination of Adjusted EBITDA, were €14.7 million in the first
quarter of 2019, a 27% increase over the first quarter of 2018 and an
18% increase from the fourth quarter of 2018.
Depreciation and amortisation in the first quarter of 2019 were €41.7
million, an increase of 41% from the first quarter of 2018 and a 21%
increase from the fourth quarter of 2018.
Operating income in the first quarter of 2019 was €29.8 million, an
increase of 11% from the first quarter of 2018 and a 4% decrease from
the fourth quarter of 2018.
Net finance expense for the first quarter of 2019 was €16.7 million, a
46% increase over the first quarter of 2018 and a 6% increase over the
fourth quarter of 2018.
Income tax expense for the first quarter of 2019 was €4.8 million, a 25%
increase compared with the first quarter of 2018 and a 34% decrease from
the fourth quarter of 2018.
Net income was €8.4 million in the first quarter of 2019, a 28% decrease
over the first quarter of 2018 and a 5% increase from the fourth quarter
of 2018.
Adjusted net income was €7.0 million in the first quarter of 2019, a 41%
decrease over the first quarter of 2018 and a 10% decrease from the
fourth quarter of 2018.
Adjusted EBITDA for the first quarter of 2019 was €77.3 million, a 27%
increase over the first quarter of 2018 and a 14% increase over the
fourth quarter of 2018. Adjusted EBITDA margin was 51.0% in the first
quarter of 2019 compared with 45.5% in the first quarter of 2018 and
46.1% in the fourth quarter of 2018.
Adjusted EBITDA excluding the effects of IFRS 16, was €69.3 million for
the first quarter of 2019, a 14% increase over the first quarter of 2018
and a 2% increase over the fourth quarter of 2018. Adjusted EBITDA
margin, excluding the effects of IFRS 16, was 45.7% in the first quarter
of 2019, compared with 45.5% in the first quarter of 2018 and 46.1% in
the fourth quarter of 2018.
Net cash flows from operating activities were €71.3 million in the first
quarter of 2019, compared with €34.6 million in the first quarter of
2018 and €44.8 million in the fourth quarter of 2018.
Cash generated from operations5 was €79.9 million in the
first quarter of 2019, compared with €58.1 million in the first quarter
of 2018 and €76.9 million in the fourth quarter of 2018.
Capital expenditures, including intangible assets, were €144.1 million
in the first quarter of 2019, compared with €96.2 million in the first
quarter of 2018 and €131.3 million in the fourth quarter of 2018.
Cash and cash equivalents were €118.2 million at 31 March 2019, compared
with €186.1 million at year end 2018.
Total borrowings (including lease liabilities) net of cash and cash
equivalents were €1,593.9 million in aggregate at 31 March 2019,
compared with €1,104.1 million at 31 December 2018. Excluding lease
liabilities, total borrowings were €1,239.6 million at 31 March 2019,
compared with €1,239.8 million at 31 December 2018.
During the first quarter of 2019, Interxion increased its unsecured
revolving credit facility by €100 million for a total commitment of €300
million. As at 31 March 2019, no amounts had been drawn under this
facility.
Equipped space at the end of the first quarter of 2019 was 148,300
square metres, compared to 128,900 square metres at the end of the first
quarter of 2018 and 144,800 square metres at the end of the fourth
quarter of 2018. Revenue generating space at the end of the first
quarter of 2019 was 119,000 square metres, compared to 104,100 square
metres at the end of the first quarter of 2018 and 115,000 square metres
at the end of the fourth quarter of 2018. Utilisation rate, the ratio of
revenue-generating space to equipped space, was 80% at the end of the
first quarter of 2019, compared to 81% at the end of the first quarter
of 2018 and 79% at the end of the fourth quarter of 2018.
Business Outlook
Interxion today is reaffirming guidance for Revenue, Adjusted EBITDA and
Capital expenditures (including intangibles) for full year 2019:
| Revenue | €632 million – €647 million | |
| Adjusted EBITDA | €324 million – €334 million | |
| Capital expenditures (including intangibles) | €570 million – €600 million | |
Conference Call to Discuss Results
Interxion will host a conference call today at 8:30 a.m. ET (1:30 p.m.
BST, 2:30 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 23 May 2019. 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 7667705.
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 procedures 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 press release.
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)
Adjusted EBITDA excluding the impact of IFRS 16; (iii) Recurring
revenue; (iv) Revenue on a constant currency basis; (v) Adjusted net
income; (vi) Adjusted basic earnings per share; (vii) Adjusted diluted
earnings per share and (viii) Cash generated from operations.
Other companies may present Adjusted EBITDA, Adjusted EBITDA excluding
the impact of IFRS 16, 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, Adjusted EBITDA excluding the impact of IFRS 16,
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 and amortised 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 recognized 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 ongoing 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 ongoing operating performance.
In certain circumstances, we may also adjust for other items that
management believes are not representative of our current ongoing
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.
In addition, we present Adjusted EBITDA excluding the impact of IFRS 16
for comparative purposes with regard to Adjusted EBITDA presented in
periods prior to 1 January 2019, the effective date of IFRS 16.
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, Adjusted EBITDA excluding the impact of IFRS
16, Recurring revenue and Revenue on a constant currency basis provide
useful supplemental information to investors regarding our ongoing
operational performance. These measures help us and our investors
evaluate the ongoing operating performance of the business after
removing the impact of our capital structure (primarily interest
expense), our asset base (primarily depreciation and amortisation) and
the implementation of new accounting standards. Management believes that
the presentation of Adjusted EBITDA and Adjusted EBITDA excluding the
impact of IFRS 16, 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 and
Adjusted EBITDA excluding the impact of IFRS 16 facilitates comparisons
between us and other data centre operators (including other data centre
operators that are REITs) and other infrastructure-based businesses.
Adjusted EBITDA excluding the impact of IFRS 16 is also a relevant
measure used in the financial covenants of our revolving credit facility
and our 4.75% Senior Notes due 2025. Pursuant to the terms of our
revolving credit facility and our 4.75% Senior Notes due 2025, the
calculation of Adjusted EBITDA for the purposes of the financial
covenants contained therein is determined in accordance with IFRS as of
the date of the financing agreements related thereto (June 2018) and
therefore does not include the impact of IFRS 16.
A reconciliation from net income to Adjusted EBITDA and from Adjusted
EBITDA to Adjusted EBITDA excluding the impact of IFRS 16 is provided in
the tables attached to this press release. Adjusted EBITDA, Adjusted
EBITDA excluding the impact of IFRS 16 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.
Management’s outlook for 2019 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 an estimate but may be significant.
Accordingly, the company is unable to provide equivalent reconciliations
from the corresponding forward-looking IFRS measures to expected
Adjusted EBITDA.
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 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 ongoing operating performance. -
Adjustments related to provisions – these adjustments are made for
adjustments in provisions that are not reflective of the ongoing
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.
IFRS 16 – Leases
We adopted International Financial Reporting Standard 16 – Leases,
from 1 January 2019. Under IFRS 16, operating leases are recognized as
right of use assets and lease liabilities, and certain components of
revenue are recognized as lease revenue.
The impact of IFRS 16 on revenue, gross profit, operating income,
Adjusted EBITDA, depreciation and amortization, net finance expense,
total assets and total liabilities as reported for the first quarter of
2019 is provided in the tables attached to this press release.
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 52 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, amortized 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 diluted earnings’),
Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16, are
non-IFRS measures 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, Adjusted
EBITDA to Adjusted EBITDA excluding the impact of IFRS 16 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 and 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. 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.
5 We define Cash generated from operations as net cash flows
from operating activities, excluding interest and fees paid, interest
received and income tax paid.
| INTERXION HOLDING NV | ||||||
| CONDENSED CONSOLIDATED INCOME STATEMENTS | ||||||
| (in €’000 ― except per share data and where stated otherwise) | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| Mar-31 | Mar-31 | |||||
| 2019 | 2018 | |||||
| Revenue | 151,531 | 133,836 | ||||
| Cost of sales | (50,394 | ) | (52,697 | ) | ||
| Gross Profit | 101,137 | 81,139 | ||||
| Other income | – | 86 | ||||
| Sales and marketing costs | (9,154 | ) | (8,708 | ) | ||
| General and administrative costs | (62,144 | ) | (45,644 | ) | ||
| Operating income | 29,839 | 26,873 | ||||
| Net finance expense | (16,662 | ) | (11,404 | ) | ||
| Profit before income taxes | 13,177 | 15,469 | ||||
| Income tax expense | (4,778 | ) | (3,812 | ) | ||
| Net income | 8,399 | 11,657 | ||||
| Basic earnings per share(a): (€) | 0.12 | 0.16 | ||||
| Diluted earnings per share(b): (€) | 0.12 | 0.16 | ||||
|
Number of shares outstanding at the end of the period (shares in thousands) |
71,867 | 71,437 | ||||
| Weighted average number of shares for Basic EPS (shares in thousands) | 71,810 | 71,428 | ||||
|
Weighted average number of shares for Diluted EPS (shares in thousands) |
72,356 | 71,903 | ||||
| As at | ||||||
| Mar-31 | Mar-31 | |||||
| Capacity metrics | 2019 | 2018 | ||||
| Equipped space (in square meters) | 148,300 | 128,900 | ||||
| Revenue generating space (in square meters) | 119,000 | 104,100 | ||||
| Utilisation rate | 80 | % | 81 | % | ||
|
(a) Basic earnings per share are calculated as net income divided by the weighted average number of shares for Basic EPS. |
||||||
|
(b) Diluted earnings per share are calculated as net income divided by the weighted average number of shares for Diluted EPS. |
||||||
| INTERXION HOLDING NV | ||||||
|
NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: REPORTING SEGMENT INFORMATION |
||||||
| (in €’000 ― except where stated otherwise) | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| Mar-31 | Mar-31 | |||||
| 2019 | 2018 | |||||
| Consolidated | ||||||
| Recurring revenue | 145,279 | 126,962 | ||||
| Non-recurring revenue | 6,252 | 6,874 | ||||
| Revenue | 151,531 | 133,836 | ||||
| Net income | 8,399 | 11,657 | ||||
| Net income margin | 5.5 | % | 8.7 | % | ||
| Operating income | 29,839 | 26,873 | ||||
| Operating income margin | 19.7 | % | 20.1 | % | ||
| Adjusted EBITDA | 77,277 | 60,876 | ||||
| Gross profit margin | 66.7 | % | 60.6 | % | ||
| Adjusted EBITDA margin | 51.0 | % | 45.5 | % | ||
| Total assets | 2,699,089 | 1,788,289 | ||||
| Total liabilities(a) | 2,048,858 | 1,185,128 | ||||
| Capital expenditure, including intangible assets(b) | (144,081 | ) | (96,195 | ) | ||
| France, Germany, the Netherlands, and the UK | ||||||
| Recurring revenue | 96,864 | 83,455 | ||||
| Non-recurring revenue | 4,435 | 4,456 | ||||
| Revenue | 101,299 | 87,911 | ||||
| Operating income | 33,312 | 27,634 | ||||
| Operating income margin | 32.9 | % | 31.4 | % | ||
| Adjusted EBITDA | 61,121 | 47,978 | ||||
| Gross profit margin | 67.4 | % | 61.1 | % | ||
| Adjusted EBITDA margin | 60.3 | % | 54.6 | % | ||
| Total assets | 1,885,683 | 1,271,899 | ||||
| Total liabilities(a) | 616,165 | 265,553 | ||||
| Capital expenditure, including intangible assets(b) | (99,624 | ) | (70,574 | ) | ||
| Rest of Europe | ||||||
| Recurring revenue | 48,415 | 43,507 | ||||
| Non-recurring revenue | 1,817 | 2,418 | ||||
| Revenue | 50,232 | 45,925 | ||||
| Operating income | 21,008 | 19,602 | ||||
| Operating income margin | 41.8 | % | 42.7 | % | ||
| Adjusted EBITDA | 32,242 | 27,571 | ||||
| Gross profit margin | 71.8 | % | 67.6 | % | ||
| Adjusted EBITDA margin | 64.2 | % | 60.0 | % | ||
| Total assets | 649,091 | 425,392 | ||||
| Total liabilities(a) | 205,603 | 88,036 | ||||
| Capital expenditure, including intangible assets(b) | (41,586 | ) | (22,667 | ) | ||
| Corporate and other | ||||||
| Operating income | (24,481 | ) | (20,363 | ) | ||
| Adjusted EBITDA | (16,086 | ) | (14,673 | ) | ||
| Total assets | 164,315 | 90,998 | ||||
| Total liabilities(a) | 1,227,090 | 831,539 | ||||
| Capital expenditure, including intangible assets(b) | (2,871 | ) | (2,954 | ) | ||
|
(a) Certain comparative figures as at 31 March 2018 have been |
||||||
|
(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. |
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| INTERXION HOLDING NV | ||||||
|
NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION |
||||||
| (in €’000 ― except where stated otherwise) | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| Mar-31 | Mar-31 | |||||
| 2019 | 2018 | |||||
| Reconciliation to Adjusted EBITDA | ||||||
| Consolidated | ||||||
| Net income | 8,399 | 11,657 | ||||
| Income tax expense | 4,778 | 3,812 | ||||
| Profit before taxation | 13,177 | 15,469 | ||||
| Net finance expense | 16,662 | 11,404 | ||||
| Operating income | 29,839 | 26,873 | ||||
| Depreciation and amortisation | 41,678 | 29,559 | ||||
| Share-based payments | 5,680 | 3,322 | ||||
|
Income or expense related to the evaluation and execution of potential mergers or acquisitions: |
||||||
| M&A transaction costs(a) | 80 | 1,208 | ||||
| Items related to sub-leases on unused data centre sites(b) | – | (86 | ) | |||
| Adjusted EBITDA(c) | 77,277 | 60,876 | ||||
| France, Germany, the Netherlands, and the UK | ||||||
| Operating income | 33,312 | 27,634 | ||||
| Depreciation and amortisation | 27,407 | 20,086 | ||||
| Share-based payments | 402 | 344 | ||||
| Items related to sub-leases on unused data centre sites(b) | – | (86 | ) | |||
| Adjusted EBITDA(c) | 61,121 | 47,978 | ||||
| Rest of Europe | ||||||
| Operating income | 21,008 | 19,602 | ||||
| Depreciation and amortisation | 10,879 | 7,745 | ||||
| Share-based payments | 355 | 224 | ||||
| Adjusted EBITDA(c) | 32,242 | 27,571 | ||||
| Corporate and Other | ||||||
| Operating loss | (24,481 | ) | (20,363 | ) | ||
| Depreciation and amortisation | 3,392 | 1,727 | ||||
| Share-based payments | 4,923 | 2,755 | ||||
|
Income or expense related to the evaluation and execution of potential mergers or acquisitions: |
||||||
| M&A transaction costs(a) | 80 | 1,208 | ||||
| Adjusted EBITDA(c) | (16,086 | ) | (14,673 | ) | ||
|
(a) “M&A transaction costs” are costs associated with the |
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|
(b) “Items related to sub-leases on unused data centre sites” |
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|
(c) “Adjusted EBITDA” is a non-IFRS financial measure. See |
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| INTERXION HOLDING NV | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||
| (in €’000 ― except where stated otherwise) | ||||||
| (unaudited) | ||||||
| As at | ||||||
| Mar-31 | Dec-31 | |||||
| 2019 | 2018 | |||||
| Non-current assets | ||||||
| Property, plant and equipment | 1,771,682 | 1,721,064 | ||||
| Right-of-use assets | 463,732 | – | ||||
| Intangible assets | 65,666 | 64,331 | ||||
| Goodwill | 38,900 | 38,900 | ||||
| Deferred tax assets | 22,887 | 21,807 | ||||
| Other investments | 9,590 | 7,906 | ||||
| Other non-current assets | 16,046 | 16,843 | ||||
| 2,388,503 | 1,870,851 | |||||
| Current assets | ||||||
| Trade receivables and other current assets | 192,410 | 205,613 | ||||
| Cash and cash equivalents | 118,176 | 186,090 | ||||
| 310,586 | 391,703 | |||||
| Total assets | 2,699,089 | 2,262,554 | ||||
| Shareholders’ equity | ||||||
| Share capital | 7,186 | 7,170 | ||||
| Share premium | 558,766 | 553,425 | ||||
| Foreign currency translation reserve | 6,600 | 3,541 | ||||
| Hedging reserve, net of tax | (169 | ) | (165 | ) | ||
| Accumulated profit | 77,848 | 69,449 | ||||
| 650,231 | 633,420 | |||||
| Non-current liabilities | ||||||
| Borrowings | 1,235,353 | 1,266,813 | ||||
| Lease liabilities | 426,567 | – | ||||
| Deferred tax liabilities | 17,513 | 16,875 | ||||
| Other non-current liabilities | 15,238 | 34,054 | ||||
| 1,694,671 | 1,317,742 | |||||
| Current liabilities | ||||||
| Trade payables and other current liabilities | 294,924 | 280,877 | ||||
| Lease liabilities | 45,935 | – | ||||
| Income tax liabilities | 9,070 | 7,185 | ||||
| Borrowings | 4,258 | 23,330 | ||||
| 354,187 | 311,392 | |||||
| Total liabilities | 2,048,858 | 1,629,134 | ||||
| Total liabilities and shareholders’ equity | 2,699,089 | 2,262,554 | ||||
| INTERXION HOLDING NV | ||||
|
NOTES TO THE CONDENSED CONSOLIDATED BALANCE SHEET: BORROWINGS AND LEASE LIABILITIES |
||||
| (in €’000 ― except where stated otherwise) | ||||
| (unaudited) | ||||
| As at | ||||
| Mar-31 | Dec-31 | |||
| 2019 | 2018 | |||
|
Borrowings and lease liabilities net of cash and cash equivalents |
||||
| Cash and cash equivalents | 118,176 | 186,090 | ||
| 4.75% Senior Notes due 2025(a) | 1,188,676 | 1,188,387 | ||
| Finance lease liabilities (IAS 17)(b) | – | 50,374 | ||
| Mortgages | 50,935 | 51,382 | ||
| Borrowings | 1,239,611 | 1,290,143 | ||
| Lease liabilities (IFRS 16)(b) | 472,502 | – | ||
| Total borrowings and lease liabilities | 1,712,113 | 1,290,143 | ||
| Borrowings and lease liabilities net of cash and cash equivalents(c) | 1,593,937 | 1,104,053 | ||
|
(a) €1,200 million 4.75% Senior Notes due 2025 include a |
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|
(b) Under IFRS 16, finance lease liabilities are included in the aggregated amount of lease liabilities rather than presented separately. |
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|
(c) Total borrowings and lease liabilities exclude deferred |
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| INTERXION HOLDING NV | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (in €’000 ― except where stated otherwise) | ||||||
| (unaudited) | ||||||
| Three Months Ended | ||||||
| Mar-31 | Mar-31 | |||||
| 2019 | 2018 | |||||
| Net income | 8,399 | 11,657 | ||||
| Depreciation and amortisation | 41,678 | 29,559 | ||||
| Share-based payments | 5,106 | 3,215 | ||||
| Net finance expense | 16,662 | 11,404 | ||||
| Income tax expense | 4,778 | 3,812 | ||||
| 76,623 | 59,647 | |||||
| Movements in trade receivables and other assets | (19,204 | ) | (6,194 | ) | ||
| Movements in trade payables and other liabilities | 22,446 | 4,628 | ||||
| Cash generated from / (used in) operations | 79,865 | 58,081 | ||||
| Interest and fees paid(a) | (4,865 | ) | (20,232 | ) | ||
| Income tax paid | (3,659 | ) | (3,273 | ) | ||
| Net cash flows from / (used in) operating activities | 71,341 | 34,576 | ||||
| Cash flows from / (used in) investing activities | ||||||
| Purchase of property, plant and equipment | (140,695 | ) | (94,218 | ) | ||
| Financial investments – deposits | 12,594 | 166 | ||||
| Purchase of intangible assets | (3,386 | ) | (1,977 | ) | ||
| Loans provided | (439 | ) | (417 | ) | ||
| Net cash flows from / (used in) investing activities | (131,926 | ) | (96,446 | ) | ||
| Cash flows from / (used in) financing activities | ||||||
| Proceeds from exercised options | 252 | 71 | ||||
| Repayment of mortgages | (472 | ) | (548 | ) | ||
| Proceeds from revolving credit facilities | – | 79,438 | ||||
|
Principal elements of lease payments (2018: Financial lease obligation) |
(6,529 | ) | – | |||
| Transaction costs 4.75% Senior Notes | (200 | ) | – | |||
| Transaction costs revolving credit facility | (603 | ) | – | |||
| Net cash flows from / (used in) financing activities | (7,552 | ) | 78,961 | |||
| Effect of exchange rate changes on cash | 223 | (239 | ) | |||
| Net increase / (decrease) in cash and cash equivalents | (67,914 | ) | 16,852 | |||
| Cash and cash equivalents, beginning of period | 186,090 | 38,484 | ||||
| Cash and cash equivalents, end of period | 118,176 | 55,336 | ||||
|
(a) Interest and fees paid is reported net of cash interest |
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| INTERXION HOLDING NV | |||||||||
|
NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET: IFRS 16 IMPACT RECONCILIATION |
|||||||||
| (in €’000) | |||||||||
| (unaudited) | |||||||||
| Three Months Ended | |||||||||
| Mar-31 | Effect of | Mar-31 | |||||||
| 2019 | change | 2019 | |||||||
| As Reported | due to IFRS 16 | Excl. IFRS 16 | |||||||
| Consolidated | |||||||||
| Recurring revenue | 145,279 | – | 145,279 | ||||||
| Non-recurring revenue | 6,252 | – | 6,252 | ||||||
| Revenue | 151,531 | – | 151,531 | ||||||
| Gross profit | 101,137 | 6,622 | 94,515 | ||||||
| Gross profit margin | 66.7 | % | 4.3 | % | 62.4 | % | |||
| Operating income | 29,839 | 1,533 | 28,306 | ||||||
| Adjusted EBITDA | 77,277 | 7,995 | 69,282 | ||||||
| Adjusted EBITDA margin | 51.0 | % | 5.3 | % | 45.7 | % | |||
| Depreciation and amortization | 41,678 | 6,461 | 35,217 | ||||||
| Net finance expense | 16,662 | 3,079 | 13,583 | ||||||
| France, Germany, the Netherlands, and the UK | |||||||||
| Recurring revenue | 96,864 | – | 96,864 | ||||||
| Non-recurring revenue | 4,435 | – | 4,435 | ||||||
| Revenue | 101,299 | – | 101,299 | ||||||
| Operating income | 33,312 | 1,141 | 32,171 | ||||||
| Adjusted EBITDA | 61,121 | 5,128 | 55,993 | ||||||
| Adjusted EBITDA margin | 60.3 | % | 5.0 | % | 55.3 | % | |||
| Rest of Europe | |||||||||
| Recurring revenue | 48,415 | – | 48,415 | ||||||
| Non-recurring revenue | 1,817 | – | 1,817 | ||||||
| Revenue | 50,232 | – | 50,232 | ||||||
| Operating income | 21,008 | 376 | 20,632 | ||||||
| Adjusted EBITDA | 32,242 | 2,397 | 29,845 | ||||||
| Adjusted EBITDA margin | 64.2 | % | 4.8 | % | 59.4 | % | |||
| Corporate and Other | |||||||||
| Operating income | (24,481 | ) | 16 | (24,497 | ) | ||||
| Adjusted EBITDA | (16,086 | ) | 470 | (16,556 | ) | ||||
| As at | |||||||||
| Mar-31 | Effect of | Mar-31 | |||||||
| 2019 | change | 2019 | |||||||
| As Reported | due to IFRS 16 | Excl. IFRS 16 | |||||||
| Consolidated | |||||||||
| Non-current assets | 2,388,503 | 414,259 | 1,974,244 | ||||||
| Current assets | 310,586 | (18,299 | ) | 328,885 | |||||
| Non-current liabilities | 1,694,671 | 371,975 | 1,322,696 | ||||||
| Current liabilities | 354,187 | 25,363 | 328,824 | ||||||
| France, Germany, the Netherlands, and the UK | |||||||||
| Total assets | 1,885,683 | 288,169 | 1,597,514 | ||||||
| Total liabilities | 616,165 | 289,314 | 326,851 | ||||||
| Rest of Europe | |||||||||
| Total assets | 649,091 | 104,238 | 544,853 | ||||||
| Total liabilities | 205,603 | 104,473 | 101,130 | ||||||
| Corporate and Other | |||||||||
| Total assets | 164,315 | 3,553 | 160,762 | ||||||
| Total liabilities | 1,227,090 | 3,551 | 1,223,539 | ||||||
| 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 | ||||||
| Mar-31 | Mar-31 | |||||
| 2019 | 2018 | |||||
| Net income – as reported | 8,399 | 11,657 | ||||
| Add back | ||||||
| + M&A transaction costs | 80 | 1,208 | ||||
| 80 | 1,208 | |||||
| Reverse | ||||||
| – Interest capitalised | (1,880 | ) | (884 | ) | ||
| (1,880 | ) | (884 | ) | |||
| Tax effect of above add backs & reversals | 450 | (81 | ) | |||
| Adjusted net income | 7,049 | 11,900 | ||||
| Reported basic EPS: (€) | 0.12 | 0.16 | ||||
| Reported diluted EPS: (€) | 0.12 | 0.16 | ||||
| Adjusted basic EPS: (€) | 0.10 | 0.17 | ||||
| Adjusted diluted EPS: (€) | 0.10 | 0.17 | ||||
| INTERXION HOLDING NV | ||||||||
| Status of Announced Expansion Projects as at 9 May 2019 | ||||||||
| with Target Open Dates after 31 December 2018 | ||||||||
| CAPEX(a)(b) |
Equipped |
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| Market | Project | (€ million) | (sqm) | Schedule | ||||
| Amsterdam | AMS10: Phases 1 – 3 | 195 | 9,500 | 4Q 2019 – 3Q 2020(c) | ||||
| Copenhagen | CPH2: Phases 3 – 5 | 18 | 1,500 | 2Q 2018 – 4Q 2019(d) | ||||
| Dusseldorf | DUS2: Phase 3 | 5 | 500 | 1Q 2019 – 2Q 2019(e) | ||||
| Frankfurt | FRA13: Phases 1 – 2 New Build | 90 | 4,900 | 3Q 2018 – 1Q 2019(f) | ||||
| Frankfurt | FRA14: Phases 1 – 2 New Build | 76 | 4,600 | 3Q 2019 – 4Q 2019(g) | ||||
| Frankfurt | FRA15: Phases 1 – 2 New Build | 137 | 4,900 | 2Q 2020 – 4Q 2020(h) | ||||
| London | LON3: New Build | 35 | 1,800 | 1Q 2019 – 3Q 2019(i) | ||||
| Madrid | MAD3: New Build | 44 | 2,500 | 2Q 2019 – 4Q 2019(j) | ||||
| Marseille | MRS2: Phase 2 – 4 | 72 | 4,200 | 2Q 2018 – 4Q 2019(k) | ||||
| Marseille | MRS3: Phase 1 New Build | 79 | 2,300 | 1Q 2020 | ||||
| Paris | PAR7.2: Phase B (cont.) – C | 47 | 2,500 | 2Q 2018 -2Q 2019(l) | ||||
| Stockholm | STO5: Phases 2 – 3 | 19 | 1,200 | 1Q 2018 – 2Q 2019(m) | ||||
| Vienna | VIE2: Phase 7 – 9 | 94 | 4,300 | 4Q 2017 – 2Q 2019(n) | ||||
| Zurich | ZUR1: Phase 6 | 10 | 300 | 2Q 2019 | ||||
| Zurich | ZUR2: Phase 1 – 2 New Build | 93 | 3,600 | 3Q 2020(o) | ||||
| Total | 1,014 | 48,600 | ||||||
|
(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 add due to rounding. |
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|
(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. |
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|
(c) 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. |
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|
(d) CPH2: Phases 3 and 4 (900 sqm total) opened in 2Q 2018; phase 5 (600 sqm) is scheduled to open in 4Q 2019. |
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|
(e) DUS2: Phase 3 partially opened (300 sqm) in 1Q 2019, the remaining 200 sqm is scheduled to open in 2Q 2019. |
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|
(f) FRA13: Phase 1 (2,300 sqm) opened in 3Q 2018; phase 2 (2,600 sqm) opened in 1Q 2019. |
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|
(g) FRA14: Phase 1 (2,400 sqm) is scheduled to open in 3Q 2019 and phase 2 (2,200 sqm) is scheduled to open in 4Q 2019. |
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|
(h) FRA15: Phase 1 (2,300 sqm) is scheduled to open in 2Q 2020 and phase 2 (2,600 sqm) is scheduled to open in 4Q 2020. |
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|
(i) LON3: Phase 1 (300 sqm) opened in 1Q 2019, phase 2 (600 sqm) is scheduled to open in 2Q 2019 and phase 3 (900 sqm) is scheduled to open in 3Q 2019. |
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|
(j) MAD3: 1,100 sqm is scheduled to open in 2Q 2019, 700 sqm is scheduled to open in 3Q 2019, and 700 sqm is scheduled to open in 4Q 2019. |
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|
(k) MRS2: Phase 2 (700 sqm) opened in 2Q and 3Q 2018; phase 3 (1,100 sqm) is scheduled to open in 2Q 2019 and phase 4 (2,500 sqm) is scheduled to open 4Q 2019. |
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|
(l) PAR7.2: Phase B (cont.) (500 sqm) opened in 2Q 2018; phase C part (1,500 sqm) opened in 4Q2018 and the rest (500 sqm) is scheduled to open in 2Q 2019. |
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|
(m) STO5: Phases 2-3 – 100 sqm opened in 1Q 2018; 300 sqm became operational in 2Q 2018; 800 sqm is scheduled to open in 2Q 2019. |
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|
(n) VIE2: 2,300 sqm opened in 4Q 2017 through 3Q 2018; remaining 2,000 sqms are scheduled to open in 2Q 2019. |
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|
(o) ZUR2: Phase 1 (1,700 sqm) and phase 2 (1,900 sqm) are scheduled to open in 3Q 2020. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190509005459/en/