Continuing Strong Demand Drives 15% Y/Y
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 June 2018.
Financial Highlights*
- Revenue increased 15% to €138.8 million
(2Q 2017: €120.8 million).
- Recurring revenue1 increased 16% to
€131.7 million (2Q 2017: €113.4 million).
- Net income decreased 94% to €0.6
million (2Q 2017: €9.7 million) and was impacted by €11.2 million
(pre-tax) of one-off charges related to the recently completed
refinancing.
- Adjusted EBITDA2 increased by 17% to
€63.4 million (2Q 2017: €54.3 million).
- Adjusted EBITDA margin increased to
45.7% (2Q 2017: 45.0%).
- Adjusted net income2 decreased by 6% to
€8.9 million (2Q 2017: €9.4 million), which includes higher
share-based payment charges.
- Earnings per diluted share decreased by
94% to €0.01 (2Q 2017: €0.13) and was impacted by one-off charges
related to the recently completed refinancing.
- Adjusted earnings2 per diluted share
decreased by 6% to €0.12 (2Q 2017: €0.13).
- Capital expenditures, including
intangible assets3, were €120.5 million (2Q 2017: €56.4
million).
- Refinanced €875 million of secured debt
with €1 billion in unsecured Senior Notes due 2025 and a new €200
million unsecured revolving credit facility.
* Certain comparative figures for the three
months and six months ended 30 June 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 2
August 2018.
Operating Highlights
- Equipped space increased by 3,700
square metres in the second quarter to 132,600 square metres.
- Revenue generating space increased by
2,100 square metres in the second quarter to 106,200 square
metres.
- Utilisation rate at the end of the
second quarter was 80%.
- During the second quarter, Interxion
completed the following capacity additions:
- 1,200 sqm expansion in Dublin;
- 900 sqm data centre in Copenhagen;
- 500 sqm expansion in Paris;
- 400 sqm expansion in Vienna;
- 400 sqm expansion in Marseille;
and
- 300 sqm expansion in Stockholm.
“Interxion continues to experience strong
demand across markets and segments, driven by the digitisation of
enterprise processes and consumer services,” said David Ruberg,
Interxion’s Chief Executive Officer. “We are investing to expand
capacity in our highly-connected data centres to meet the
substantial demand that we are seeing from the major Cloud
platforms and content providers and to grow the communities that
are starting to form around them. Our recent refinancing
provides us with the flexibility to maintain our strategic position
and attractive returns profile.”
Quarterly Review
Revenue in the second quarter of 2018 was
€138.8 million, a 15% increase over the second quarter of 2017 and
a 4% increase over the first quarter of 2018. Recurring revenue was
€131.7 million, a 16% increase over the second quarter of 2017 and
a 4% increase over the first quarter of 2018. Recurring revenue in
the second quarter represented 95% of total revenue. On a constant
currency4 basis, revenue in the second quarter of 2018 was 16%
higher than in the second quarter of 2017.
Cost of sales in the second quarter of 2018 was
€53.7 million, a 12% increase over the second quarter of 2017 and a
2% increase over the first quarter of 2018.
Gross profit was €85.1 million in the second
quarter of 2018, a 17% increase over the second quarter of 2017 and
a 5% increase over the first quarter of 2018. Gross profit margin
was 61.3% in the second quarter of 2018, compared with 60.3% in the
second quarter of 2017 and 60.6% in the first quarter of 2018.
Sales and marketing costs in the second quarter
of 2018 were €9.6 million, a 16% increase over the second quarter
of 2017 and a 10% increase from the first quarter of 2018.
Other general and administrative costs
(excluding depreciation and amortisation, share-based payments and
M&A transaction costs) were €12.1 million in the second quarter
of 2018, a 17% increase over the second quarter of 2017 and a 5%
increase from the first quarter of 2018.
Depreciation and amortisation in the second
quarter of 2018 was €32.2 million, an increase of 18% from the
second quarter of 2017 and a 9% increase from the first quarter of
2018.
Operating income in the second quarter of 2018
was €26.3 million, an increase of 8% from the second quarter of
2017 and a 2% decrease from the first quarter of 2018.
Net finance expense in the second quarter of
2018 was €22.9 million. On 18 June 2018, Interxion completed a
refinancing transaction, issuing €1,000.0 million of 4.75% Senior
Notes due 2025 and entering into a €200.0 million unsecured
multi-currency revolving credit facility. The proceeds of the notes
issue were used to redeem the €625.0 million 6.00% Senior Secured
Notes due 2020 and repay €250 million drawn under Interxion’s
revolving credit facilities. Interxion recognized €11.2 million of
one-time charges related to these transactions. Excluding the
finance expense associated with the refinancing transactions, net
finance expense in the second quarter was €11.7 million, an
increase of 7% over the second quarter of 2017 and an increase of
3% over the first quarter of 2018.
Income tax expense for the second quarter of
2018 was €2.8 million, a 25% decrease compared with the second
quarter of 2017 and a 27% decrease from the first quarter of
2018.
Net income was €0.6 million in the second
quarter of 2018, a 94% decrease over the second quarter of 2017 and
a 95% decrease from the first quarter of 2018, reflecting the
impact of the finance expense relating to the refinancing
transactions discussed above.
Adjusted net income was €8.9 million in the
second quarter of 2018, a 6% decrease over the second quarter of
2017 and a 26% decrease from the first quarter of 2018.
Adjusted EBITDA for the second quarter of 2018
was €63.4 million, a 17% increase over the second quarter of 2017
and a 4% increase over the first quarter of 2018. Adjusted EBITDA
margin was 45.7% in the second quarter of 2018, compared with 45.0%
in the second quarter of 2017 and 45.5% in the first quarter of
2018.
Net cash flows from operating activities were
€31.6 million in the second quarter of 2018, compared with €35.7
million in the second quarter of 2017 and €34.6 million in the
first quarter of 2018.
Cash generated from operations5 was €55.1
million in the second quarter of 2018, compared with €40.6 million
in the second quarter of 2017 and €58.1 million in the first
quarter of 2018.
Capital expenditures, including intangible
assets, were €120.5 million in the second quarter of 2018, compared
with €56.4 million in the second quarter of 2017 and €96.2 million
in the first quarter of 2018.
Cash and cash equivalents were €133.6 million
at 30 June 2018, compared with €38.5 million at year end 2017.
Total borrowings, net of deferred financing
fees, were €1,079.8 million at 30 June 2018, compared with €832.6
million at year end 2017.
Equipped space at the end of the second quarter
of 2018 was 132,600 square metres, compared with 117,000 square
metres at the end of the second quarter of 20176 and 128,900 square
metres at the end of the first quarter of 2018. Revenue generating
space at the end of the second quarter of 2018 was 106,200 square
metres, compared with 95,000 square metres at the end of the second
quarter of 2017 and 104,100 square metres at the end of the first
quarter of 2018. Utilisation rate, the ratio of revenue-generating
space to equipped space, was 80% at the end of the second quarter
of 2018, compared with 81% at the end of the second quarter of 2017
and 81% at the end of the first 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)
€365 million – €390 million
Conference Call to Discuss Results
Interxion will host a conference call today at
8:30 a.m. EDT (1:30 p.m. BST, 2:30 p.m. CEST) 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 18 August
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 3174258.
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 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.
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 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) 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, nor are they
meant to be predictive of future results.
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 ongoing
operational performance because it helps us and our investors
evaluate the ongoing 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 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 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, costs related to refinancing, litigation gains
and losses or windfall gains and losses.
Management believe 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 believe 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 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 June 2018 Year-on-year
Sequential Reported total revenue growth 14.9
% 3.7 % Add back: impact of foreign currency translation 0.9 % 0.1
% Total revenue growth on an organic constant currency basis 15.8 %
3.8 %
5 We define Cash generated from operations as
net cash flows from operating activities, excluding interest and
corporate income tax payments and receipts.
6 Totals from the end of 1Q 2018 include 2,300
sqm of equipped space and 1,300 sqm of revenue generating space
from Interxion Science Park. 2Q 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 Six Months Ended Jun-30
Jun-30
Jun-30 Jun-30
2018
2017(a)
2018
2017(a)
Revenue 138,824 120,823 272,660
234,773 Cost of sales (53,701 ) (47,926 ) (106,398 ) (92,021
)
Gross Profit 85,123 72,897 166,262
142,752 Other income - - 86 27 Sales and marketing costs
(9,601 ) (8,285 ) (18,309 ) (16,210 ) General and administrative
costs (49,250 ) (40,310 ) (94,894 ) (78,421 )
Operating income
26,272 24,302 53,145 48,148 Net finance
expense (22,895 ) (10,920 ) (34,299 ) (21,207 )
Profit or loss before
income taxes 3,377 13,382 18,846
26,941 Income tax expense (2,795 ) (3,727 ) (6,608 ) (7,027
)
Net income 582 9,655
12,238 19,914 Basic earnings per
share(b): (€) 0.01 0.14 0.17 0.28 Diluted earnings per share(c):
(€) 0.01 0.13 0.17 0.28 Number of shares outstanding
at the end of the period (shares in thousands) 71,609 71,060 71,609
71,060 Weighted average number of shares for Basic EPS (shares in
thousands) 71,481 71,035 71,455 70,907 Weighted average number of
shares for Diluted EPS (shares in thousands) 71,946 71,688 71,902
71,546
As at Jun-30 Jun-30
Capacity metrics 2018 2017 Equipped space (in
square meters)(d) 132,600 117,000 Revenue generating space (in
square meters)(d) 106,200 95,000 Utilisation rate 80 % 81 %
(a) Certain comparative figures for the
three months and six months ended 30 June 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
consolidated financial statements as included in our 20-F, filed
with the SEC on 30 April 2018, and note 12 of our Condensed
Consolidated Interim Financial Statements, filed with the SEC under
a 6-K on 2 August 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) Totals from the end of 1Q 2018 include
2,300 sqm of equipped space and 1,300 sqm of revenue generating
space from Interxion Science Park. 2Q 2017 square meters exclude
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 Six Months
Ended Jun-30 Jun-30
Jun-30 Jun-30
2018
2017(a)
2018
2017(a)
Consolidated Recurring revenue 131,709 113,427
258,671 221,702 Non-recurring revenue 7,115 7,396
13,989 13,071
Revenue 138,824
120,823 272,660 234,773
Net income 582 9,655 12,238
19,914 Net income margin 0.4 % 8.0 % 4.5 % 8.5 %
Operating income 26,272 24,302 53,145
48,148 Operating income margin 18.9 % 20.1 % 19.5 % 20.5 %
Adjusted EBITDA 63,431 54,313
124,306 105,650 Gross profit
margin 61.3 % 60.3 % 61.0
% 60.8 % Adjusted EBITDA margin
45.7 % 45.0 % 45.6 %
45.0 % Total assets 1,975,113 1,589,211
1,975,113 1,589,211 Total liabilities 1,361,149 1,015,136 1,361,149
1,015,136 Capital expenditure, including intangible assets(b)
(120,515 ) (56,441 ) (216,709 ) (111,198 )
France,
Germany, the Netherlands, and the UK Recurring revenue
87,317 74,183 170,771 144,181 Non-recurring revenue 4,196
4,688 8,653 8,070
Revenue 91,513
78,871 179,424 152,251 Operating income
30,311 24,784 57,946 48,770 Operating
income margin 33.1 % 31.4 % 32.3 % 32.0 %
Adjusted EBITDA
51,388 43,115 99,366
83,284 Gross profit margin 63.2
% 62.0 % 62.2 % 61.9
% Adjusted EBITDA margin 56.2 %
54.7 % 55.4 % 54.7 %
Total assets 1,360,299 1,130,979 1,360,299 1,130,979 Total
liabilities 269,553 231,445 269,553 231,445 Capital expenditure,
including intangible assets(b) (82,556 ) (40,753 ) (153,130 )
(75,819 )
Rest of Europe Recurring
revenue 44,392 39,244 87,900 77,521 Non-recurring revenue 2,919
2,708 5,336 5,001
Revenue
47,311 41,952 93,236
82,522 Operating income 18,643
16,445 38,242 33,155 Operating income margin
39.4 % 39.2 % 41.0 % 40.2 %
Adjusted EBITDA 27,171
24,041 54,742 47,695
Gross profit margin 65.0 % 65.2
% 66.3 % 66.0 % Adjusted
EBITDA margin 57.4 % 57.3 %
58.7 % 57.8 % Total assets
443,999 379,372 443,999 379,372 Total liabilities 83,303 82,176
83,303 82,176 Capital expenditure, including intangible assets(b)
(29,805 ) (13,635 ) (52,472 ) (29,852 )
Corporate
and other Operating income (22,682
) (16,927 ) (43,043 )
(33,777 ) Adjusted EBITDA (15,128
) (12,843 ) (29,802 )
(25,329 ) Total assets 170,815 78,860 170,815
78,860 Total liabilities 1,008,293 701,515 1,008,293 701,515
Capital expenditure, including intangible assets(b) (8,154 ) (2,053
) (11,107 ) (5,527 )
(a) Certain comparative figures for the
three months and six months ended 30 June 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
consolidated financial statements as included in our 20-F, filed
with the SEC on 30 April 2018, and note 12 of our Condensed
Consolidated Interim Financial Statements, filed with the SEC under
a 6-K on 2 August 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 Six
Months Ended Jun-30 Jun-30
Jun-30 Jun-30
2018
2017(a)
2018
2017(a)
Reconciliation to Adjusted EBITDA
Consolidated Net income
582 9,655 12,238 19,914 Income tax
expense 2,795 3,727 6,608 7,027
Profit before taxation 3,377 13,382
18,846 26,941 Net finance expense 22,895
10,920 34,299 21,207
Operating income
26,272 24,302 53,145 48,148
Depreciation and amortisation 32,191 27,209 61,750 51,392
Share-based payments 3,927 2,246 7,249 4,808 Income or expense
related to the evaluation and execution of potential mergers or
acquisitions: M&A transaction costs(b) 1,041 556 2,248 1,329
Items related to terminated or unused data centre sites: Items
related to sub-leases on unused data centre sites(c) - -
(86 ) (27 )
Adjusted EBITDA(d)
63,431
54,313 124,306 105,650
France, Germany, the Netherlands, and the
UK Operating income 30,311
24,784 57,946 48,770 Depreciation and
amortisation 20,818 18,097 40,903 33,996 Share-based payments 259
234 603 545 Items related to terminated or unused data centre
sites: Items related to sub-leases on unused data centre sites(c) -
- (86 ) (27 )
Adjusted EBITDA(d)
51,388
43,115 99,366 83,284
Rest of Europe
Operating income 18,643 16,445 38,242
33,155 Depreciation and amortisation 8,223 7,382 15,971
14,340 Share-based payments 305 214 529 200
Adjusted EBITDA(d)
27,171 24,041
54,742 47,695
Corporate and Other Operating
income (22,682 ) (16,927 )
(43,043 ) (33,777 ) Depreciation and
amortisation 3,150 1,730 4,876 3,056 Share-based payments 3,363
1,798 6,117 4,063 Income or expense related to the evaluation and
execution of potential mergers or acquisitions: M&A transaction
costs(b) 1,041 556 2,248 1,329
Adjusted EBITDA(d)
(15,128 ) (12,843
) (29,802 ) (25,329 )
(a) Certain comparative figures for the
three months and six months ended 30 June 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
consolidated financial statements as included in our 20-F, filed
with the SEC on 30 April 2018, and note 12 of our Condensed
Consolidated Interim Financial Statements, filed with the SEC under
a 6-K on 2 August 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) “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.”
(d) “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 Jun-30 Dec-31
2018 2017
Non-current assets Property, plant and
equipment 1,492,495 1,342,471 Intangible assets 61,872 60,593
Goodwill 38,900 38,900 Deferred tax assets 29,439 24,470 Other
investments 4,731 3,693 Other non-current assets 18,338
13,674
1,645,775 1,483,801 Current
assets Trade receivables and other current assets 195,775
179,786 Cash and cash equivalents 133,563 38,484
329,338 218,270 Total assets
1,975,113 1,702,071
Shareholders’ equity Share capital 7,160 7,141 Share premium
547,549 539,448 Foreign currency translation reserve 984 2,948
Hedging reserve, net of tax (173 ) (169 ) Accumulated profit 58,444
47,360
613,964 596,728 Non-current
liabilities Other non-current liabilities 19,536 15,080
Deferred tax liabilities 23,192 21,336 Borrowings 1,077,900
724,052
1,120,628 760,468 Current
liabilities Trade payables and other current liabilities
228,677 229,878 Income tax liabilities 7,371 6,237 Borrowings 4,473
108,760
240,521 344,875
Total liabilities 1,361,149 1,105,343
Total liabilities and shareholders’ equity
1,975,113 1,702,071
INTERXION HOLDING NV NOTES TO THE CONDENSED
CONSOLIDATED BALANCE SHEET: BORROWINGS (in €'000 ― except where
stated otherwise) (unaudited)
As at Jun-30
Dec-31 2018 2017 Borrowings net
of cash and cash equivalents Cash and cash
equivalents 133,563 38,484
4.75% Senior Notes due 2025(a) 983,368 - 6.00% Senior Secured Notes
due 2020(b) - 628,141 Mortgages 48,199 53,640 Financial leases
50,806 51,127 Borrowings under our Revolving Facilities -
99,904
Borrowings excluding Revolving Facility deferred
financing costs 1,082,373 832,812
Revolving Facility deferred financing costs(c) (2,604 ) (204 )
Total borrowings 1,079,769 832,608
Borrowings net of cash and
cash equivalents 946,206 794,124
(a) €1,000 million 4.75% Senior Notes due
2025 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 issuance of the 4.75%
Senior Notes due 2025.
(c) Deferred financing costs of €2.6
million as of 30 June 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 Six Months Ended Jun-30 Jun-30
Jun-30 Jun-30
2018
2017(a)
2018
2017(a)
Net income
582 9,655 12,238
19,914 Depreciation and amortisation 32,191 27,209 61,750
51,392 Share-based payments 3,646 2,215 6,863 3,809 Net finance
expense 22,895 10,920 34,299 21,207 Income tax expense 2,795
3,727 6,608 7,027 62,109 53,726 121,758
103,349 Movements in trade receivables and other assets (13,858 )
(16,191 ) (20,055 ) (13,388 ) Movements in trade payables and other
liabilities 6,858 3,051 11,486 13,581
Cash generated from / (used in) operations 55,109
40,586 113,189 103,542 Interest and fees
paid(b) (18,600 ) (2,462 ) (38,831 ) (20,912 ) Interest received -
8 - (53 ) Income tax paid (4,893 ) (2,474 ) (8,166 ) (5,305 )
Net cash flows from / (used in) operating activities
31,616 35,658 66,192 77,272 Cash
flows from / (used in) investing activities Purchase of
property plant and equipment (117,534 ) (53,399 ) (211,751 )
(106,322 ) Financial investments - deposits 114 (148 ) 280 (366 )
Acquisition InterXion Science Park B.V. - - - (77,517 ) Purchase of
intangible assets (2,981 ) (3,042 ) (4,958 ) (4,876 ) Loans
provided (834 ) (1,341 ) (1,251 ) (1,341 )
Net cash flows from /
(used in) investing activities (121,235 )
(57,930 ) (217,680 ) (190,422
) Cash flows from / (used in) financing activities
Proceeds from exercised options 1,186 541 1,257 4,088 Repayment of
mortgages (4,948 ) (872 ) (5,496 ) (1,420 ) Proceeds from revolving
credit facilities 69,376 - 148,814 74,775 Repayment of revolving
facilities (250,724 ) - (250,724 ) (30,000 ) Proceeds 4.75% Senior
Notes 990,000 - 990,000 - Repayment 6.00% Senior Secured Notes
(634,375 ) - (634,375 ) - Transaction costs 4.75% Senior Notes
(1,192 ) - (1,192 ) - Transaction costs 2018 revolving credit
facility (1,636 ) - (1,636 ) -
Net cash flows from
/ (used in) financing activities 167,687 (331
) 246,648 47,443 Effect of exchange rate
changes on cash 159 (695 ) (81 ) (943 )
Net increase /
(decrease) in cash and cash equivalents 78,227
(23,298 ) 95,079 (66,650 ) Cash
and cash equivalents, beginning of period 55,336 72,541
38,484 115,893
Cash and cash equivalents,
end of period 133,563 49,243
133,563 49,243
(a) Certain comparative figures for the
three months and six months ended 30 June 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
consolidated financial statements as included in our 20-F, filed
with the SEC on 30 April 2018, and note 12 of our Condensed
Consolidated Interim Financial Statements, filed with the SEC under
a 6-K on 2 August 2018.
(b) Interest and fees paid is reported net
of cash interest capitalized, 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 Six Months Ended Jun-30 Jun-30
Jun-30 Jun-30
2018
2017(a)
2018
2017(a)
Net income - as reported 582 9,655
12,238 19,914 Add back + Charges
related to termination of financing arrangements(b) 11,171 - 11,171
- + M&A transaction costs 1,041 556 2,248
1,329 12,212 556 13,419 1,329
Reverse - Interest
capitalised (1,181 ) (853 ) (2,065 ) (1,765 ) (1,181 ) (853 )
(2,065 ) (1,765 )
Tax effect of above add backs &
reversals (2,758 ) 74 (2,839 ) 109
Adjusted net income 8,855
9,432 20,753 19,587
Reported basic EPS: (€) 0.01 0.14 0.17 0.28 Reported
diluted EPS: (€) 0.01 0.13 0.17 0.28 Adjusted basic EPS: (€)
0.12 0.13 0.29 0.28 Adjusted diluted EPS: (€) 0.12 0.13 0.29 0.27
(a) Certain comparative figures for the
three months and six months ended 30 June 2017 have been restated.
For further details, see Note 2 and Note 29 of our 2017
consolidated financial statements as included in our 20-F, filed
with the SEC on 30 April 2018, and note 12 of our Condensed
Consolidated Interim Financial Statements, filed with the SEC under
a 6-K on 2 August 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.
INTERXION HOLDING NV Status of Announced Expansion
Projects as at 2 August 2018 with Target Open Dates after 31
March 2018 CAPEX (a)(b) Equipped
Space (a) Market Project (€
million) (sqm) Schedule Amsterdam AMS8:
Phases 3 - 6 63 5,300 4Q 2018 - 1Q 2019 (c) Amsterdam AMS9: Phase 2
8 500 4Q 2018 Amsterdam AMS10: Phases 1 - 2 128 6,800 4Q 2019 - 1Q
2020 (d) Copenhagen CPH2: Phases 3 - 5 18 1,500 2Q 2018 - 2Q 2019
(e) Dublin DUB3: Phases 3 - 4 17 1,200 2Q 2018 Frankfurt FRA13:
Phases 1 - 2 New Build 90 4,900 4Q 2018 - 1Q 2019 (f) Frankfurt
FRA14: Phases 1-2 New Build 76 4,600 3Q 2019 - 4Q 2019 (g) London
LON3: New Build 35 1,800 3Q 2018 - 4Q 2018 (h) Madrid MAD3: New
Build 44 2,500 2Q 2019 (i) Marseille MRS2: Phase 2 - 3 47 2,600 2Q
2018 - 2Q 2019 (j) Paris PAR7.2: Phase B (cont.) - C 47 2,500 2Q
2018 -1Q 2019 (k) Stockholm STO5: Phases 2 -3 19 1,200 1Q 2018 - 1Q
2019 (l) Vienna VIE2: Phase 7 - 9 94 4,300 4Q 2017 - 4Q 2020 (m)
Total € 686 39,700 (a) CAPEX and
Equipped space are approximate and may change. Figures are rounded
to nearest 100 sqm unless otherwise noted. Totals may not add 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 the duration of more than one
fiscal year. (c) AMS8: Phases 3 and 4 (1,300 sqm each) are
scheduled to open in 4Q 2018; phases 5 and 6 (1,300 sqm each) are
scheduled to open in 1Q 2019. (d) 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. (e) CPH2: Phases 3 and 4 (900 sqm total) became
operational in 2Q 2018; phase 5 (600 sqm) is scheduled to open in
2Q 2019. (f) FRA13: Phase 1 (2,300 sqm) is scheduled to become
operational in 4Q 2018; phase 2 (2,600 sqm) is scheduled to become
operational in 1Q 2019. (g) FRA14: Phase 1 (2,400 sqm) is scheduled
to open in 3Q 2019; phase 2 (2,200 sqm) is scheduled to open in Q4
2019. (h) LON3: 900 square metres is scheduled to become
operational in 3Q 2018; another 900 square metres is scheduled to
become operational in 4Q 2018. (i) MAD3: Capex total for MAD3
includes land purchase price. (j) MRS2: 400 square metres became
operational in 2Q 2018; 300 sqm is scheduled to become operational
in 3Q 2018; another 1,900 sqm is scheduled to become operational in
2Q 2019. (k) PAR7.2: Phase B (cont.) (500 sqm) became operational
in 2Q 2018; Phase C (2,000 sqm) is scheduled to become operational
in 1Q 2019. (l) STO5: Phases 2-3 - 100 sqm became operational in 1Q
2018; 300 sqm became operational in 2Q 2018; 800 sqm is scheduled
to become operational in 1Q 2019. (m) VIE2: 1,000 square metres
became operational in 4Q 2017 through 2Q 2018; 900 square metres is
scheduled to become operational in 4Q 2018; 700 square metres is
scheduled to become operational in 2Q 2019; 1,000 sqm scheduled to
open in 3Q 2019; and 700 sqm scheduled to open in 4Q 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180802005378/en/
Interxion Holding NVInvestor Relations:Jim Huseby, +1
813-644-9399IR@interxion.com
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