INXN InterXion Holding NV

Interxion (NYSE: INXN), a leading European provider of carrier-neutral colocation data centre services, today announced its results for the three months and year ended 31 December 2010.

Highlights

• Revenue for the year increased by 21% to €208.4 million
• Adjusted EBITDA for the year increased by 26% to €79.2 million
• Adjusted EBITDA margin for the year increased to 38.0%
• Net profit for 2010 was €14.7 million
• €260 million bond issuance
• Cash balance at Dec. 31, 2010 of €99.1 million
• Successful IPO in January 2011 generating €138.6 million net proceeds to the company

“The fourth quarter of 2010 was Interxion’s 17th consecutive quarter of sequential quarterly growth in revenue and Adjusted EBITDA, capping a landmark year for the company,” said Chief Executive Officer David Ruberg. “In addition to this consistent operating execution, we successfully strengthened and recapitalized the company’s balance sheet, which positions us for continued success in 2011 as we execute our fully funded plan.”

Revenues for the fourth quarter 2010 were €55.6 million, a 23% increase compared to €45.1 million in the fourth quarter 2009. Adjusted EBITDA was €21.4 million in the fourth quarter, a 26% increase from the prior year quarter. Adjusted EBITDA margins were 38.5% in the fourth quarter compared to 37.5% in the same quarter last year.

Business Outlook

The company is providing the following outlook for the full year 2011:

Revenue   €239 million to €245 million Adjusted EBITDA €91 million to €95 million Capital Expenditures €140 million to €160 million

Conference Call to discuss results

The Company will discuss its results for the fourth quarter and year ended 31 December 2010 and outlook for the full year 2011 on a conference call on Wednesday, 23 March 2011 at 8.30am EDT (12:30pm GMT/1:30pm CET).

To participate on the conference call, please dial 1-866-966-9439 (for US participants) and +44 (0) 1452 555 566 (for participants outside the US) and use the pass code 49880935#. This event also will be webcast live over the Internet in listen-only mode at www.investors.interxion.com .

A replay of the call will be available until March 30th beginning on Wednesday, 23rd March by dialling 1-866-247-4222 from the US +44 (0) 1452 55 00 00 from the UK and using the pass code 49880935#.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the difficulty of reducing operating expenses in the short term, inability to utilize the capacity of newly planned data centres and data centre expansions, significant competition, the cost and supply of electrical power, data centre industry over-capacity, performance under service level agreements and other risks described from time to time in Interxion's filings with the Securities and Exchange Commission. Interxion does not assume any obligation to update the forward-looking information contained in this press release.

Adjusted EBITDA

EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments and, exceptional and non recurring items, and to include share of profits (losses) of non-group companies. We present EBITDA and Adjusted EBITDA as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in our €50 million revolving credit facility and €260 million 9.50% Senior Secured Notes due 2017. However, other companies may present EBITDA and Adjusted EBITDA differently than we do. EBITDA and Adjusted EBITDA are not measures of financial performance under IFRS and should not be considered as an alternative to operating profit or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measure of performance derived in accordance with IFRS.

A reconciliation of Adjusted EBITDA to operating profit is provided below.

About Interxion

Interxion is a leading provider of carrier-neutral colocation data centre services in Europe, serving over 1,100 customers through 28 data centres in 11 European countries. Interxion’s uniformly designed, energy-efficient data centres offer customers extensive security and uptime for their mission-critical applications. With connectivity provided by 350 carriers and ISPs and 18 European Internet exchanges across its footprint, Interxion has created content and connectivity hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.

    Table 1 of 6 INTERXION HOLDING N.V. CONSOLIDATED INCOME STATEMENTS (in €'000 - except per share data and where stated otherwise) (unaudited)   Three Months Ended Year Ended 31-Dec 31-Dec 31-Dec 31-Dec 2010 2009 2010 2009   Revenue 55,555 45,057 208,379 171,668 Cost of sales (23,287) (20,385) (91,154) (78,548) Gross profit 32,268 24,672 117,225 93,120 Other income 132 117 425 746 Sales and marketing costs (3,810) (2,814) (15,072) (11,253) General and administrative costs (16,175) (14,448) (55,892) (50,628) Operating profit 12,415 7,527 46,686 31,985 Finance income 216 105 582 536 Finance expense (6,339) (1,966) (30,026) (6,784) Profit before taxation 6,292 5,666 17,242 25,737 Income tax (expense) / benefit 3,222 5,357 (2,560) 715 Net profit 9,514 11,023 14,682 26,452   Basic earnings per share: (€) (i) 0.21 0.25 0.33 0.60 Diluted earnings per share: (€) (i) 0.20 0.24 0.31 0.57       Number of shares outstanding at the end of the period (shares in thousands) (i) 44,354 44,351 44,354 44,351 Weighted average number of shares for Basic EPS (shares in thousands) (i) 44,351 43,999 44,352 43,999 Weighted average number of shares for Diluted EPS (shares in thousands) (i) 47,635 46,792 47,707 46,792     (i) Number of shares have been adjusted to take account of the five-to-one reverse stock split which took place on 2 February 2011.   Table 2 of 6 INTERXION HOLDING N.V. SEGMENT INFORMATION (in €'000 - except where stated otherwise) (unaudited)   Three Months Ended Year Ended 31-Dec 31-Dec 31-Dec 31-Dec 2010 2009 2010 2009

Consolidated

  Recurring revenue 51,422 42,464 192,973 161,314 Non-recurring Revenue 4,133 2,593 15,406 10,354 Revenue 55,555 45,057 208,379 171,668 Adjusted EBITDA 21,380 16,902 79,203 62,743 Gross Margin 58.1% 54.8% 56.3% 54.2% Adjusted EBITDA Margin 38.5% 37.5% 38.0% 36.5%   Total assets 546,762 408,020 546,762 408,020 Total liabilities 391,493 273,643 391,493 273,643 Capital expenditures (ii) (19,058) (24,993) (98,171) (99,979) Depreciation and amortization (8,625) (6,765) (31,108) (21,960)  

France, Germany, Netherlands and UK

  Recurring revenue 30,502 24,721 114,689 94,088 Non-recurring Revenue 1,568 1,712 9,161 6,542 Revenue 32,070 26,433 123,850 100,630 Adjusted EBITDA 15,933 12,375 58,060 46,509 Gross Margin 60.8% 57.0% 57.3% 55.7% Adjusted EBITDA Margin 49.7% 46.8% 46.9% 46.2%   Total assets 279,735 235,575 279,735 235,575 Total liabilities 81,339 102,967 81,339 102,967 Capital expenditures (ii) (12,167) (14,587) (58,277) (55,253) Depreciation and amortization (5,002) (3,943) (18,659) (12,785)  

Rest of Europe

 

  Recurring revenue 20,920 17,743 78,284 67,226 Non-recurring Revenue 2,565 881 6,245 3,812 Revenue 23,485 18,624 84,529 71,038 Adjusted EBITDA 12,118 8,949 43,010 33,983 Gross Margin 60.3% 58.0% 60.4% 57.9% Adjusted EBITDA Margin 51.6% 48.1% 50.9% 47.8%   Total assets 150,026 123,460 150,026 123,460 Total liabilities 35,335 45,493 35,335 45,493 Capital expenditures (ii) (6,644) (9,550) (35,709) (42,584) Depreciation and amortization (3,141) (2,839) (10,972) (8,289)  

Corporate and Other

        Adjusted EBITDA (6,671) (4,421) (21,867) (17,749)   Total assets 117,001 48,985 117,001 48,985 Total liabilities 274,819 125,183 274,819 125,183 Capital expenditures (ii) (247) (856) (4,185) (2,142) Depreciation and amortization (482) 17 (1,477) (886)  

(ii) Capital expenditures represent payments to acquire tangible fixed assets as recorded in the consolidated statement of cash flows as "Purchase of property, plant and equipment".

  Table 3 of 6 INTERXION HOLDING N.V. ADJUSTED EBITDA RECONCILIATION AND CAPACITY METRICS (in €'000 - except where stated otherwise) (unaudited)   Three Months Ended Year Ended 31-Dec 31-Dec 31-Dec 31-Dec 2010 2009 2010 2009    

1. Reconciliation of Adjusted EBITDA

  Adjusted EBITDA 21,380 16,902 79,203 62,743 Income from subleases on unused data centre sites 132 117 425 471 Net insurance compensation benefit - - - 275 Exceptional income 132 117 425 746   (Increase)/decrease in provision for onerous lease contracts 143 (2,382) (150) (3,753) Abandoned transaction costs - - - (4,841) Share based payments (615) (345) (1,684) (950) Exceptional general and adminsitrative costs (472) (2,727) (1,834) (9,544) EBITDA 21,040 14,292 77,794 53,945 Depreciation and amortization (8,625) (6,765) (31,108) (21,960) Operating profit 12,415 7,527 46,686 31,985            

2. Capacity Metrics

Equiped space (in sqm) 61,000 54,800 61,000 54,800 Revenue generating space (in sqm) 43,700 38,400 43,700 38,400 Utilization rate (Revenue generating space as a % of Equipped Space) 72% 70% 72% 70%     Table 4 of 6 INTERXION HOLDING N.V. CONSOLIDATED BALANCE SHEET (in €'000 - except where stated otherwise) (unaudited)   As at 31-Dec 31-Dec 2010 2009 Non-current assets Property, plant and equipment 342,420 275,960 Intangible assets 6,005 3,642 Deferred tax assets 39,841 39,585 Other non-current assets 3,709 1,220 391,975 320,407 Current assets Trade and other current assets 55,672 55,610 Cash and cash equivalents 99,115 32,003 154,787 87,613 Total assets 546,762 408,020   Shareholders’ equity Share capital 4,434 4,434 Share premium 321,078 319,388 Foreign currency translation reserve 4,933 413 Accumulated deficit (175,176) (189,858) 155,269 134,377 Non-current liabilities Trade and other liabilities 7,795 8,227 Deferred tax liability 660 - Provision for onerous lease contracts 13,260 15,844 Borrowings 257,403 128,678 279,118 152,749 Current liabilities Trade and other liabilities 106,038 91,029 Current tax liabilities 868 376 Provision for onerous lease contracts 3,073 3,068 Borrowings 2,396 26,421 112,375 120,894 Total liabilities 391,493 273,643 Total liabilities and shareholders’ equity 546,762 408,020   Table 5 of 6 INTERXION HOLDING N.V. NOTES TO THE CONSOLIDATED BALANCE SHEET (in €'000 - except where stated otherwise) (unaudited)   As at 31-Dec 31-Dec 2010 2009    

3. Borrowings net of cash and cash equivalents

  Cash and cash equivalents (iii) 99,115 32,003   9.5% Senior Secured Notes due 2017 (iv) 254,924 - Bank facilities - 148,945 Financial Leases 765 1,236 Other Borrowings 4,110 4,918 Borrowings excluding revolving credit facility deferred financing costs 259,799 155,099 Revolving credit facility deferred financing costs (v) (1,283) - Total Borrowings 258,516 155,099     Borrowings net of cash and cash equivalents 159,401 123,096       (iii) Cash and cash equivalents includes €4.2 million and €3.9 million as of December 31, 2010 and 2009, respectively, which is restricted and held as collateral to support the issuance of bank guarantees on behalf of a number of subsidiary companies. (iv) €260 million 9.5% Senior Secured Notes due 2017 include premium on additional issue and are shown after deducting underwriting discounts and commissions, offering fees and expenses. (v) We reported deferred financing costs of €1.3 million in connection with entering into our €50 million revolving credit facility which is currently undrawn.   Table 6 of 6 INTERXION HOLDING N.V. CONSOLIDATED STATEMENT OF CASH FLOWS (in €'000 - except where stated otherwise) (unaudited)   Three Months Ended Year Ended 31-Dec 31-Dec 31-Dec 31-Dec 2010 2009 2010 2009     Profit for the period 9,514 11,023 14,682 26,452 Depreciation and amortization 8,625 6,765 31,108 21,960 Provision for onerous lease contracts (1,329) 1,491 (3,157) 950 Share-based payments 615 345 1,684 950 Abandoned transaction costs - - - 4,841 Net finance expense 6,412 1,861 29,444 6,248 Income tax expense (3,222) (5,357) 2,560 (715) 20,615 16,128 76,321 60,686 Movements in trade and other current assets 2,129 (5,732) 511 (11,151) Movements in trade and other liabilities 4,265 6,077 8,476 9,051 Cash generated from operations 27,009 16,473 85,308 58,586 Interest paid (802) (2,538) (9,980) (7,373) Interest received 53 152 390 583 Income tax paid (389) (2) (1,339) (418) Net cash flows from operating activities 25,871 14,085 74,379 51,378 Cash flow from investing activities Purchase of property, plant and equipment (19,058) (24,993) (98,171) (99,979) Disposal of property, plant and equipment 230 104 230 104 Purchase of intangible assets (674) (73) (2,223) (1,074) Net cash flows from investing activities (19,502) (24,962) (100,164) (100,949) Cash flow from financing activities Proceeds from exercised options 6 - 6 702 Proceeds/(repayment) bank facilities - (570) (159,046) 21,667 Proceeds from Senior Secured Notes and RCF 63,446 - 254,276 - Other Borrowings (1,312) (176) (2,488) (2,605) Net cash flows from financing activities 62,140 (746) 92,748 19,764 Effect of exchange rate changes on cash 14 135 149 35 Net movement in cash and cash equivalents 68,523 (11,488) 67,112 (29,772) Cash and cash equivalents, beginning of period 30,592 43,491 32,003 61,775 Cash and cash equivalents, end of period 99,115 32,003 99,115 32,003