Revenue Increased 13% Year Over Year
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 restated compared to the amounts disclosed on
Form 6-K furnished on 7 March 2018. For further details see note 2
and Note 28 of our 2018 Consolidated Financial Statements included
on Form 20-F, filed with the SEC on 30 April 2019.
(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 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 evaluation, diligence and conclusion or
termination of merger or acquisition activity. These costs are
included in “General and administrative costs.”
(b) “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.”
(c) “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 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 premium on additional issuances and are shown after
deducting commissions, offering fees and expenses.
(b) Under IFRS 16, finance lease liabilities are included in the
aggregated amount of lease liabilities rather than presented
separately.
(c) Total borrowings and lease liabilities
exclude deferred financing costs of €2.3 million as of 31 December
2018 which were incurred in connection with the €300 million
Revolving Credit Facility, entered into on 18 June 2018, and
deferred financing costs of €2.9 million as of 31 March 2019 relate
to the Revolving Credit Facility and the increased capacity
thereunder in March 2019.
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 capitalised, which is reported as part of
“Purchase of property, plant and equipment."
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)
EquippedSpace(a)
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. (b) CAPEX reflects the total spend for the
projects listed at full power and capacity and the amounts shown in
the table above may be invested over time. (c) 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. (d) CPH2: Phases 3 and 4 (900 sqm total) opened in
2Q 2018; phase 5 (600 sqm) is scheduled to open in 4Q 2019. (e)
DUS2: Phase 3 partially opened (300 sqm) in 1Q 2019, the remaining
200 sqm is scheduled to open in 2Q 2019. (f) FRA13: Phase 1 (2,300
sqm) opened in 3Q 2018; phase 2 (2,600 sqm) opened in 1Q 2019. (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. (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. (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. (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. (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. (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. (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. (n) VIE2: 2,300 sqm opened in 4Q 2017 through 3Q 2018;
remaining 2,000 sqms are scheduled to open in 2Q 2019. (o) ZUR2:
Phase 1 (1,700 sqm) and phase 2 (1,900 sqm) are scheduled to open
in 3Q 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190509005459/en/
InterxionJim HusebyInvestor
Relations+1-813-644-9399IR@interxion.com
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