Interxion Holding NV (NYSE: INXN), a leading European provider
of carrier-neutral colocation data centre services, announced its
results today for the three months ended 30 June 2011.
Highlights
- Revenue increased by 19% to €60.0
million (Q2 2010: €50.4 million)
- Adjusted EBITDA increased by 19% to
€23.3 million (Q2 2010: €19.6 million)
- Adjusted EBITDA margin increased to
38.9% (Q2 2010: 38.8%)
- Net profit of €5.2 million (Q2 2010:
€4.0 million)
- Capital Expenditures of €16.2 million
during the quarter
- Reaffirmed full year 2011 guidance
“The second quarter of 2011 was Interxion’s 19th consecutive
quarter of sequential quarterly growth in revenue and Adjusted
EBITDA,” said Chief Executive Officer David Ruberg. “We saw 19%
organic revenue growth and continued growth in Adjusted EBITDA
margins. We remain confident in the market opportunity for our
services and continue to invest for future growth with expansion
projects already underway or completed this year in seven of our 11
countries.”
A listing of the company’s expansion projects is provided as a
table at the end of this release.
Quarterly Review
Revenue for the second quarter of 2011 was €60.0 million, a 19%
increase over the second quarter of 2010 and a 4% increase from the
first quarter of 2011. Recurring revenue was 94% of total
revenue.
Cost of sales for the second quarter increased by 15% to €25.5
million, producing an increased gross profit margin of 57.5%
compared to 56.0% in the same quarter of 2010. Sales and marketing
costs in the second quarter were €4.6 million, up 29% as a result
of the company’s continued investment in its market segmentation
strategy. General and administrative costs, excluding depreciation,
amortisation, impairments, exceptional general and administrative
costs, and share-based payments were €6.6 million, an increase of
29% and were impacted by the onset of public company costs.
Depreciation, amortisation, and impairments increased by 28% to
€9.6 million.
Net financing costs for the second quarter of 2011 were €6.0
million, compared to €4.8 million in the second quarter of 2010 as
a result of the €60 million bond tap in November 2010.
Net profit was €5.2 million in the second quarter of 2011, up
32% from the second quarter of 2010.
Adjusted EBITDA for the second quarter of 2011 was €23.3
million, up 19% year over year. Adjusted EBITDA margin expanded to
38.9% as the company’s increased scale provided greater operating
leverage.
Cash generated from operations, defined as cash generated from
operating activities before interest and corporate income tax
payments and receipts, was €23.0 million. Net cash used in
investing activities was €108.0 million, reflecting €16.2 million
of capital expenditures and €90.0 million in short term
investments. As announced on August 3, the company has
begun building its seventh data centre (PAR7) in the Paris
metropolitan area. The new facility is being built to meet the
demands of customers who will benefit from Interxion’s existing
connectivity options of more than 70 carriers and the leading
Internet exchange in France, France-IX.
Cash and equivalents and short term investments were €232.0
million, up from €99.1 million at year end.
Equipped space at the end of the second quarter 2011 was 61,500
square metres. Utilisation rate, the ratio of revenue-generating
space to equipped space, was 74%, up from 73% both sequentially and
year over year.
Business Outlook
The company today also reaffirmed its outlook for 2011:
Revenue €239 million - €245
million Adjusted EBITDA €91 million - €95 million Capital
Expenditures €140 million - €160 million
Conference Call to Discuss Results
The company will host a conference call at 8:30 a.m. ET (1:30
p.m. BST) today to discuss results for the second quarter 2011.
To participate on this call, U.S. callers may dial toll
free 1-866-966-9439; callers outside the U.S. may dial direct
+44 (0) 1452 555 566. The conference ID for this call
is 88641994. 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 24 August 2011. To access the
replay, U.S. callers may dial toll free 1-866-247-4222; callers
outside the U.S. may dial direct +44 (0) 1452 55 00 00. The
replay access number is 88641994#
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 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
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 in the Notes to Consolidated Income Statement: Group
Metrics.
About Interxion
Interxion is a leading provider of carrier-neutral colocation
data centre services in Europe, serving over 1,200 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 20 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.
INTERXION HOLDING NV
CONSOLIDATED INCOME STATEMENTS (in €'000 - except per share
data and where stated otherwise) (unaudited)
Three
Months Ended Six Months Ended 30-Jun 30-Jun
30-Jun 30-Jun
2011 2010
2011 2010
Revenue 60,023 50,363 117,915
98,178 Cost of sales (25,522 ) (22,149 ) (50,302 ) (43,922 )
Gross profit 34,501 28,214 67,613
54,256 Other income 115 118 242 226 Sales and marketing
costs (4,591 ) (3,557 ) (8,803 ) (6,882 ) General and
administrative costs (16,496 ) (13,103 ) (33,795 ) (25,936 )
Operating profit 13,529 11,672 25,257
21,664 Finance income 902 186 1,415 265 Finance expense
(6,888 ) (4,962 ) (13,989 ) (18,520 )
Profit before taxation
7,543 6,896 12,683 3,409 Income tax
expense (2,319 ) (2,929 ) (4,651 ) (4,176 )
Net
profit/(loss) 5,224 3,967
8,032 (767 ) Basic earnings per
share: (€) (i) 0.08 0.09 0.13 (0.02 ) Diluted earnings per share:
(€) (i) 0.08 0.08 0.12 (0.02 ) Number of
shares outstanding at the end of the period (shares in thousands)
65,619 44,351 65,619 44,351 Weighted average number of shares for
Basic EPS (shares in thousands) 65,579 43,999 62,398 44,351
Weighted average number of shares for Diluted EPS (shares in
thousands) 67,536 46,792 64,534 47,567 (i) Number of
shares have been adjusted to take account of the 1 for 5 reverse
stock split which took place on 2 February 2011.
INTERXION HOLDING NV NOTES TO
CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION (in €'000 -
except where stated otherwise) (unaudited)
Three
Months Ended Six Months Ended 30-Jun 30-Jun
30-Jun 30-Jun
2011 2010
2011 2010
Consolidated Recurring revenue 56,244
47,189 110,386 91,918 Non-recurring Revenue 3,779 3,174
7,529 6,260
Revenue 60,023
50,363 117,915 98,178
Adjusted EBITDA 23,321 19,561
45,531 37,005 Gross
Margin 57.5 % 56.0 % 57.3
% 55.3 % Adjusted EBITDA Margin
38.9 % 38.8 % 38.6 %
37.7 % Total assets 702,513 460,103 702,513
460,103 Total liabilities 395,984 321,766 395,984 321,766 Capital
expenditures (iv) (16,240 ) (24,947 ) (35,364 ) (53,597 )
Depreciation, amortisation and impairments (9,568 ) (7,494 )
(18,094 ) (14,681 )
France, Germany, Netherlands,
and UK Recurring revenue 33,561 28,277 65,806
54,759 Non-recurring Revenue 2,535 2,183 4,962
4,221
Revenue 36,096 30,460
70,768 58,980 Adjusted
EBITDA 17,964 14,714 34,743
27,401 Gross Margin 58.5
% 57.8 % 58.5 % 56.2
% Adjusted EBITDA Margin 49.8 %
48.3 % 49.1 % 46.5 %
Total assets 296,740 255,692 296,740 255,692 Total
liabilities 86,519 80,840 86,519 80,840 Capital expenditures (iv)
(7,090 ) (16,444 ) (19,430 ) (32,083 ) Depreciation, amortisation
and impairments (5,753 ) (4,470 ) (10,899 ) (8,981 )
Rest of Europe Recurring revenue 22,683
18,912 44,580 37,159 Non-recurring Revenue 1,244 991
2,567 2,039
Revenue 23,927
19,903 47,147 39,198
Adjusted EBITDA 12,165 9,608
24,267 19,376 Gross Margin
61.0 % 58.5 % 61.0 %
59.3 % Adjusted EBITDA Margin 50.8
% 48.3 % 51.5 % 49.4
% Total assets 160,436 141,318 160,436 141,318 Total
liabilities 37,139 36,020 37,139 36,020 Capital expenditures (iv)
(8,428 ) (8,474 ) (14,692 ) (20,687 ) Depreciation, amortisation
and impairments (3,289 ) (2,620 ) (6,287 ) (4,988 )
Corporate and Other
Adjusted EBITDA (6,808
) (4,761 ) (13,479 )
(9,772 ) Total assets 245,337 63,093 245,337
63,093 Total liabilities 272,326 204,906 272,326 204,906 Capital
expenditures (iv) (722 ) (29 ) (1,242 ) (827 ) Depreciation,
amortisation and impairments (526 ) (404 ) (908 ) (712 )
(iv) 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".
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: GROUP METRICS (in
€'000 - except where stated otherwise) (unaudited)
Three Months Ended Six Months Ended 30-Jun
30-Jun
30-Jun 30-Jun
2011 2010
2011 2010
1. Reconciliation of adjusted EBITDA
Adjusted EBITDA 23,321 19,561
45,531 37,005 Income from subleases on
unused data centre sites 115 118 242 226
Exceptional income 115 118
242 226
(Increase)/decrease in provision for onerous lease contracts - (118
) (18 ) (226 ) IPO transaction costs (v) - - (1,725 ) - Share-based
payments (339 ) (395 ) (679 ) (660 )
Exceptional general and
administrative costs (339 ) (513 )
(2,422 ) (886 ) EBITDA
23,097 19,166 43,351
36,345 Depreciation, amortisation and impairments
(9,568 ) (7,494 ) (18,094 ) (14,681 )
Operating profit
13,529 11,672 25,257
21,664 2. Capacity
Metrics Equipped space (in sqm) 61,500 55,800 61,500 55,800
Revenue generating space (in sqm) 45,300 40,500 45,300 40,500
Utilisation rate 74 % 73 % 74 % 73 % (v) The IPO costs
represent the write off of the proportion of the IPO costs
allocated to the selling shareholders at the Initial Public
Offering.
INTERXION HOLDING NV
CONSOLIDATED BALANCE SHEET (in €'000 - except where stated
otherwise) (unaudited)
As at 30-Jun
31-Dec
2011 2010
Non-current assets Property, plant
and equipment 359,543 342,420 Intangible assets 8,654 6,005
Deferred tax assets 40,997 39,841 Other non-current assets 3,765
3,709
412,959 391,975 Current
assets Trade and other current assets 57,583 55,672 Short-term
investments 90,000 - Cash and cash equivalents 141,971
99,115
289,554 154,787 Total
assets 702,513 546,762
Shareholders’ equity Share capital 6,562 4,434 Share premium
463,070 321,078 Foreign currency translation reserve 4,041 4,933
Accumulated deficit (167,144 ) (175,176 )
306,529
155,269 Non-current liabilities Trade payables and
other liabilities 10,011 7,795 Deferred tax liabilities 1,484 660
Provision for onerous lease contracts 11,947 13,260 Borrowings
257,169 257,403
280,611 279,118
Current liabilities Trade payables and other liabilities
109,349 106,038 Current tax liabilities 1,544 868 Provision for
onerous lease contracts 3,104 3,073 Borrowings 1,376 2,396
115,373 112,375 Total
liabilities 395,984 391,493
Total liabilities and shareholders’ equity 702,513
546,762 INTERXION
HOLDING NV NOTES TO THE CONSOLIDATED BALANCE SHEET:
BORROWINGS (in €'000 - except where stated otherwise)
(unaudited)
As at 30-Jun 31-Dec
2011 2010
3. Borrowings net of cash and cash
equivalents and short-term investments Cash and
cash equivalents (vi) and Short-term investments
(vii) 231,971 99,115
9.5% Senior Secured Notes due 2017
(viii)
255,257 254,924 Financial Leases 541 765 Other Borrowings 2,747
4,110
Borrowings excluding revolving credit
facility deferred financing costs 258,545
259,799 Revolving credit facility deferred financing
costs (ix) (975 ) (1,283 )
Total Borrowings 257,570
258,516
Borrowings net of cash and cash equivalents and short-term
investments 25,599 159,401
(vi) Cash and cash equivalents includes
€3.5 million as of June 30, 2011 and €4.2 million as of December
31, 2010, which is restricted and held as collateral to support the
issuance of bank guarantees on behalf of a number of subsidiary
companies.
(vii) Short-term investments relate to six and nine months
deposits.
(viii) €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.
(ix) We reported deferred financing costs
of €1.0 million in connection with entering into our €50 million
revolving credit facility which is currently undrawn.
INTERXION HOLDING NV
CONSOLIDATED STATEMENT OF CASH FLOWS (in €'000 - except
where stated otherwise) (unaudited)
Three Months
Ended Six Months Ended 30-Jun 30-Jun
30-Jun 30-Jun
2011 2010
2011 2010
Profit/(loss) for the period 5,224 3,967 8,032 (767 ) Depreciation,
amortisation and impairments 9,568 7,494 18,094 14,681 IPO
transaction costs - - 1,725 - Provision for onerous lease contracts
(779 ) (957 ) (1,553 ) (1,540 ) Share-based payments 339 395 679
660 Net finance expense 5,986 4,776 12,574 18,255 Income tax
expense 2,319 2,929 4,651 4,176 22,657
18,604 44,202 35,465 Movements in trade and other current assets
1,603 (2,289 ) (5,680 ) 2,646 Movements in trade and other
liabilities (1,225 ) (1,508 ) 5,190 823
Cash
generated from operations 23,035 14,807
43,712 38,934 Interest paid (421 ) (257 ) (12,580 )
(978 ) Interest received 266 102 537 187 Income tax paid (465 )
(150 ) (1,152 ) (226 )
Net cash flows from operating
activities 22,415 14,502 30,517
37,917 Cash flow from investing activities Purchase
of property, plant and equipment (16,240 ) (24,947 ) (35,364 )
(53,597 ) Disposals of property, plant and equipment 945 - 945 -
Purchase of intangible assets (2,712 ) (133 ) (3,106 ) (490 )
Acquisition of short-term investments (90,000 ) - (90,000 )
-
Net cash flows from investing activities
(108,007 ) (25,080 ) (127,525
) (54,087 ) Cash flow from financing
activities Proceeds from exercised options - - 2,324 - Proceeds
from issuance new shares (400 ) - 142,952 - Repayment of
'Liquidation Price' to former preferred shareholders - - (3,055 ) -
Proceeds/(repayment) bank facilities - - - (159,046 ) Proceeds from
Senior Secured Notes and RCF (206 ) (771 ) (645 ) 191,244 Other
Borrowings (849 ) (124 ) (1,588 ) (1,170 )
Net cash flows from
financing activities (1,455 ) (895
) 139,988 31,028 Effect of exchange rate
changes on cash (241 ) 115 (124 ) 260
Net movement
in cash and cash equivalents (87,288 )
(11,358 ) 42,856 15,118 Cash and cash
equivalents, beginning of period 229,259 58,479
99,115 32,003
Cash and cash equivalents, end of
period 141,971 47,121
141,971 47,121
INTERXION HOLDING NV Announced Expansion
Projects
Market
Project
CAPEX (x, xi)(€
million)
EquippedSpace
(x)(Sqm)
Target Completion
Düsseldorf DUS 1 : Phase 2 Power Upgrade € 7 500 (xii) 2Q
2011 (completed) London LON 1 : Phase 9 Expansion € 7 525 2Q 2011
(completed) Vienna VIE 1 : Phase 3 Expansion € 12 1300 (xiii) 3Q
2011 Dublin DUB 2 : Phase 3 Expansion
and Power Upgrade
€ 8 640 4Q 2011 Paris PAR 7 : Phase 1 New Build € 70 4,500 2Q 2012
Various Upgrades (xiv) € 12 (x) CAPEX and Equipped Space are
approximate and may change after project completion. (xi) CAPEX
reflects the total for the listed project and may not be all
invested in the current year. (xii) Previously included in equipped
space (xiii) 500 square metres scheduled for completion in 3Q 2011
with the remainder in 2012 (xiv) Upgrades include projects in
Frankfurt, Paris, Stockholm and Zurich, each of which is below €5
million.
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