REDWOOD CITY, Calif.,
April 29, 2015 /PRNewswire/
-- Equinix, Inc. (Nasdaq: EQIX), a global interconnection and
data center company, today reported quarterly results for the
quarter ended March 31, 2015.
The Company uses certain non-GAAP financial measures, which
are described further below and reconciled to the most comparable
GAAP financial measures after the presentation of our GAAP
financial statements.
Revenues were $643.2 million for
the first quarter, a 1% increase over the previous quarter and an
11% increase over the same quarter last year. Recurring
revenues, consisting primarily of colocation, interconnection and
managed services were $609.7 million
for the first quarter, a 1% increase over the previous quarter and
an 11% increase over the same quarter last year.
Non-recurring revenues were $33.5
million in the quarter. MRR churn for the first
quarter was 2.0%, unchanged from the previous quarter.
"Our year is off to a strong start with demand for our global
interconnection platform driving strong performance in all three
regions resulting in both quarterly revenues and adjusted
EBITDA significantly above the top end of our guidance ranges,"
said Steve Smith, president and CEO
of Equinix. "This is our first quarter both operating and reporting
as a REIT and we believe the fundamentals of our business are
attractive both to our traditional investor base and the REIT
investor community, including our global portfolio of assets,
the attractive asset growth and our long history of success with
our new development."
Cost of revenues were $298.3
million for the first quarter, a 5% decrease from the
previous quarter and a 4% increase from the same quarter last year.
Cost of revenues, excluding depreciation, amortization, accretion
and stock-based compensation of $106.2
million for the quarter, which we refer to as cash cost of
revenues, were $192.1 million for the
quarter, a 2% decrease from the previous quarter and a 4% increase
over the same quarter last year. Gross margins for the
quarter were 54%, up from 51% for the previous quarter and 50% for
the same quarter last year. Cash gross margins, defined as
gross profit before depreciation, amortization, accretion and
stock-based compensation, divided by revenues, for the quarter were
70%, up from 69% for the previous quarter and 68% for the same
quarter last year.
Selling, general and administrative expenses were $192.3 million for the first quarter, a 1%
decrease over the previous quarter and a 13% increase over the same
quarter last year. Selling, general and administrative expenses,
excluding depreciation, amortization, accretion and stock-based
compensation of $47.0 million for the
quarter, which we refer to as cash selling, general and
administrative expenses, were $145.3
million for the quarter, a 2% decrease from the previous
quarter and a 7% increase over the same quarter last
year.
Interest expense was $68.8 million
for the first quarter, a 3% decrease from the previous quarter and
largely unchanged from the same quarter last year.
The Company recorded income tax expense of $6.2 million for the first quarter compared to
income tax expense of $303.3 million
for the previous quarter and income tax expense of $13.6 million for the same quarter last year. The
lower income tax expense for the first quarter is primarily due to
the Company's real estate investment trust (REIT) conversion. As a
REIT, the Company is entitled to a tax deduction for any dividend
payments, resulting in a substantial reduction of its U.S. income
tax expense. Going forward, substantially all of the Company's
income tax expense will be incurred based on the earnings generated
by its foreign subsidiaries and its U.S. taxable REIT subsidiaries.
The higher income tax expense for the previous quarter was
primarily due to the de-recognition of deferred tax assets and
liabilities of the Company's U.S operations when it was determined
that all significant actions to effect the REIT conversion had
occurred.
Net income attributable to the Company was $76.5 million for the first quarter. This
represents a basic net income per share attributable to the Company
of $1.35 for the first quarter based
on a weighted average share count of 56.7 million and a diluted net
income per share attributable to the Company of $1.34 for the first quarter based on a weighted
average share count of 57.2 million.
Income from operations was $151.4
million for the first quarter, an 18% increase from the
previous quarter and a 25% increase over the same quarter last
year. Adjusted EBITDA, as defined below, for the first
quarter was $305.7 million, a 4%
increase over the previous quarter and a 17% increase over the same
quarter last year.
Adjusted funds from operations ("AFFO"), as defined below, were
$221.8 million for the first quarter,
a 14% increase from the previous quarter and a 28% increase over
the same quarter last year. This represents a basic AFFO per
share attributable to the Company of $3.91 for the first quarter and a diluted AFFO
per share attributable to the Company of $3.77 for the first quarter.
Capital expenditures, defined as gross capital expenditures less
the net change in accrued property, plant and equipment in the
first quarter, were $150.1 million,
as compared to capital expenditures of $238.5 million for the previous quarter and
$105.9 million for the same quarter
last year.
The Company generated cash from operating activities of
$232.8 million for the first quarter,
a 15% increase over the previous quarter and a 36% increase over
the same quarter last year. Cash used in investing activities
was $199.8 million in the first
quarter as compared to cash used in investing activities of
$619.9 million in the previous
quarter, primarily attributed to the net purchases of investments
in marketable securities and higher capital expenditures in the
previous quarter. Cash used in financing activities was
$98.8 million for the first quarter
as compared to cash provided by financing activities of
$679.9 million in the previous
quarter, primarily due to the net impact of the issuance of the
$1.25 billion senior notes and
$500.0 million term loan offset by
the redemption of the $750.0 million
7.00% senior notes and repayment of the $110.0 million term loan in the previous
quarter.
As of March 31, 2015, the
Company's cash, cash equivalents and investments were $1,069.7 million, as compared to $1,140.8 million as of December 31, 2014.
Business Outlook
For the second quarter of 2015, the Company expects revenues to
be in the range of $654.0 to $658.0
million, which includes a $6.0
million negative foreign currency impact when compared to
the average FX rates in Q1 2015, or a normalized and constant
currency growth rate of 3% quarter over quarter. Cash gross
margins are expected to approximate 68% to 69%. Cash selling,
general and administrative expenses are expected to approximate
$144.0 to $148.0 million.
Adjusted EBITDA is expected to be between $304.0 and $308.0 million, which includes a
$5.0 million negative foreign
currency impact when compared to the average FX rates in Q1 2015.
Capital expenditures are expected to range between
$210.0 and $220.0 million, which
includes approximately $30.0 million
of recurring capital expenditures and $180.0
to $190.0 million of non-recurring capital expenditures.
For the full year of 2015, total revenues are expected to be
greater than $2,635.0 million, which
absorbs $25.0 million of negative
foreign currency impact when compared to prior guidance rates,
reflecting a normalized and constant currency growth rate of
13%. Total year cash gross margins are expected to
approximate 69%. Cash selling, general and administrative
expenses are expected to range between $580.0 and $600.0 million. Adjusted EBITDA
for the year is expected to be greater than $1,230.0 million, which absorbs $7.0 million of negative foreign currency impact
when compared to prior guidance rates or a normalized and constant
currency growth rate of 15%. AFFO is expected to be greater
than $830.0 million or a normalized
and constant currency growth rate of 15%. Capital
expenditures for 2015 are expected to range between $740.0 and $800.0 million, comprised of
approximately $115.0 million of
recurring capital expenditures and $625.0 to
$685.0 million for non-recurring capital
expenditures.
The U.S. dollar exchange rates used for 2015 guidance, taking
into consideration the impact of our foreign currency hedges, have
been updated to $1.18 to the Euro,
$1.54 to the Pound, S$1.37 to the U.S. dollar and R$3.08 to the U.S. dollar. The 2015 global
revenue breakdown by currency for the Euro, Pound, Singapore Dollar
and Brazilian Real is 14%, 9%, 7% and 4%, respectively.
The guidance provided above is forward-looking. The
adjusted EBITDA guidance is based on the revenue guidance, less our
expectations of cash cost of revenues and cash operating
expenses. The AFFO guidance is based on the adjusted EBITDA
guidance, less our expectations of interest income and interest
expense, an installation revenue adjustment, a straight-line rent
expense adjustment, amortization of deferred financing costs, gains
(losses) on debt extinguishment, the cash portion of income tax
expense, recurring capital expenditures and adjustments for
unconsolidated joint ventures' and non-controlling interests' share
of these items.
Q1 Results Conference Call and Replay Information
The Company will discuss its quarterly results for the period
ended March 31, 2015, along with its
future outlook, on its quarterly conference call on Wednesday, April 29, 2015, at 5:30 p.m. ET (2:30 p.m.
PT). A simultaneous live webcast of the call will be
available on the Company's Investor Relations website at
www.equinix.com/investors. To hear the conference call live, please
dial 1-210-234-8004 (domestic and international) and reference the
passcode EQIX.
A replay of the call will be available one hour after the call,
through Friday, July 31, 2015, by
dialing 1-402-998-1352 and referencing the passcode 2015. In
addition, the webcast will be available at
www.equinix.com/investors over the same time period. No
password is required for the webcast.
Investor Presentation and Supplemental Financial
Information
The Company has made available on its website a presentation
designed to accompany the discussion of the Company's results and
future outlook, along with certain supplemental financial
information and other data. Interested parties may access this
information through the Company's Investor Relations website at
www.equinix.com/investors.
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading
businesses to their customers, employees and partners inside the
most interconnected data centers. In 33 markets across five
continents, Equinix is where companies come together to realize new
opportunities and accelerate their business, IT and cloud
strategies.
Non-GAAP Financial Measures
Equinix provides all information required in accordance with
generally accepted accounting principles ("GAAP"), but it believes
that evaluating its ongoing operating results may be difficult if
limited to reviewing only GAAP financial measures.
Accordingly, Equinix uses non-GAAP financial measures to evaluate
its operations. Legislative and regulatory requirements
encourage use of and emphasis on GAAP financial metrics and require
companies to explain why non-GAAP financial metrics are relevant to
management and investors.
In presenting non-GAAP financial measures, such as adjusted
EBITDA, cash cost of revenues, cash gross margins, cash operating
expenses (also known as cash selling, general and administrative
expenses or cash SG&A), adjusted EBITDA margins, free cash flow
and adjusted free cash flow, Equinix excludes certain items that it
believes are not good indicators of the Company's current or future
operating performance. These items are depreciation,
amortization, accretion of asset retirement obligations and accrued
restructuring charges, stock-based compensation, restructuring
charges, impairment charges and acquisition costs. Equinix
excludes these items in order for Equinix's lenders, investors, and
industry analysts who review and report on the Company, to better
evaluate the Company's operating performance and cash spending
levels relative to its industry sector and competitors.
Equinix excludes depreciation expense as these charges primarily
relate to the initial construction costs of our IBX centers and do
not reflect our current or future cash spending levels to support
our business. Our IBX centers are long-lived assets, and have
an economic life greater than 10 years. The construction costs of
our IBX centers do not recur and future capital expenditures remain
minor relative to our initial investment. This is a trend we
expect to continue. In addition, depreciation is also based
on the estimated useful lives of our IBX centers. These
estimates could vary from actual performance of the asset, are
based on historic costs incurred to build out our IBX centers, and
are not indicative of current or expected future capital
expenditures. Therefore, Equinix excludes depreciation from
its operating results when evaluating its operations.
In addition, in presenting the non-GAAP financial measures,
Equinix also excludes amortization expense related to certain
intangible assets, as it represents a cost that may not recur and
is not a good indicator of the Company's current or future
operating performance. Equinix excludes accretion expense,
both as it relates to its asset retirement obligations as well as
its accrued restructuring charges, as these expenses represent
costs which Equinix believes are not meaningful in evaluating the
Company's current operations. Equinix excludes stock-based
compensation expense as it primarily represents expense attributed
to equity awards that have no current or future cash
obligations. As such, we, and many investors and analysts,
exclude this stock-based compensation expense when assessing the
cash generating performance of our operations. Equinix
excludes restructuring charges from its non-GAAP financial
measures. The restructuring charges relate to the Company's
decision to exit leases for excess space adjacent to several of our
IBX centers, which we did not intend to build out, or our decision
to reverse such restructuring charges. Equinix also excludes
impairment charges related to certain long-lived assets. The
impairment charges are related to expense recognized whenever
events or changes in circumstances indicate that the carrying
amount of long-lived assets are not recoverable. Finally, Equinix
excludes acquisition costs from its non-GAAP financial
measures. The acquisition costs relate to costs the Company
incurs in connection with business combinations. Management
believes such items as restructuring charges, impairment charges
and acquisition costs are non-core transactions; however, these
types of costs will or may occur in future periods.
Equinix also presents funds from operations ("FFO") and adjusted
funds from operations ("AFFO"), which are non-GAAP financial
measures commonly used in the REIT industry. FFO is
calculated in accordance with the definition established by the
National Association of Real Estate Investment Trusts
("NAREIT"). FFO represents net income (loss), excluding gains
(losses) from the disposition of real estate assets, depreciation
and amortization on real estate assets and adjustments for
unconsolidated joint ventures' and non-controlling interests' share
of these items. AFFO represents FFO, excluding depreciation
and amortization expense on non-real estate assets, accretion,
stock-based compensation, restructuring charges, impairment
charges, acquisition costs, an installation revenue adjustment, a
straight-line rent expense adjustment, amortization of deferred
financing costs, gains (losses) on debt extinguishment, the non-
cash portion of income tax expense, recurring capital expenditures
and adjustments from FFO to AFFO for unconsolidated joint ventures'
and non-controlling interests' share of these items. Equinix
excludes depreciation expense, amortization expense, accretion,
stock-based compensation, restructuring charges, impairment charges
and acquisition charges for the same reasons that they are excluded
from the other non-GAAP financial measures mentioned
above.
Equinix includes an adjustment for revenue from installation
fees, since installation fees are deferred and recognized ratably
over the expected life of the installation, although the fees are
generally paid in a lump sum upon installation. Equinix
includes an adjustment for straight-line rent expense on its
operating leases, since the total minimum lease payments are
recognized ratably over the lease term, although the lease payments
generally increase over the lease term. The adjustments for
both installation revenue and straight-line rent expense are
intended to isolate the cash activity included within the
straight-lined or amortized results in the consolidated statement
of operations. Equinix excludes the amortization of deferred
financing costs as these expenses relate to the initial costs
incurred in connection with our debt financings that have no
current or future cash obligations. Equinix excludes gains
(losses) on debt extinguishment since it represents a cost that may
not recur and is not a good indicator of the Company's current or
future operating performance. Equinix excludes the non-cash
portion of income tax expense, as it represents a cost that has no
current or future cash obligation. Equinix also excludes
recurring capital expenditures, which represent expenditures to
extend the useful life of its IBX centers or other assets that are
required to support current revenues.
Our management does not itself, nor does it suggest that
investors should, consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. However, we have presented
such non-GAAP financial measures to provide investors with an
additional tool to evaluate our operating results in a manner that
focuses on what management believes to be our core, ongoing
business operations. Management believes that the inclusion
of these non-GAAP financial measures provides consistency and
comparability with past reports and provides a better understanding
of the overall performance of the business and its ability to
perform in subsequent periods. Equinix believes that if it did not
provide such non-GAAP financial information, investors would not
have all the necessary data to analyze Equinix effectively.
Investors should note, however, that the non-GAAP financial
measures used by Equinix may not be the same non-GAAP financial
measures, and may not be calculated in the same manner, as that of
other companies. In addition, whenever Equinix uses such
non-GAAP financial measures, it provides a reconciliation of
non-GAAP financial measures to the most closely applicable GAAP
financial measure. Investors are encouraged to review the
related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measure. Equinix intends to calculate the various
non-GAAP financial measures in future periods consistent with how
they were calculated for the periods presented within this press
release.
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 challenges of acquiring, operating and
constructing IBX centers and developing, deploying and delivering
Equinix services; unanticipated costs or difficulties relating to
the integration of companies we have acquired or will acquire into
Equinix; a failure to receive significant revenue from customers in
recently built out or acquired data centers; failure to complete
any financing arrangements contemplated from time to time;
competition from existing and new competitors; the ability to
generate sufficient cash flow or otherwise obtain funds to repay
new or outstanding indebtedness; the loss or decline in business
from our key customers; and other risks described from time to time
in Equinix's filings with the Securities and Exchange Commission.
In particular, see Equinix's recent quarterly and annual reports
filed with the Securities and Exchange Commission, copies of which
are available upon request from Equinix. Equinix does not assume
any obligation to update the forward-looking information contained
in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix,
Inc.
EQUINIX,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
Recurring
revenues
|
|
$ 609,657
|
|
$ 605,492
|
|
$ 549,703
|
Non-recurring
revenues
|
|
33,517
|
|
32,629
|
|
30,350
|
|
Revenues
|
|
643,174
|
|
638,121
|
|
580,053
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
298,313
|
|
313,449
|
|
287,525
|
|
|
Gross
profit
|
344,861
|
|
324,672
|
|
292,528
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and
marketing
|
78,616
|
|
81,236
|
|
67,428
|
|
General and
administrative
|
113,640
|
|
113,684
|
|
103,303
|
|
Acquisition
costs
|
1,156
|
|
1,926
|
|
185
|
|
|
Total operating
expenses
|
193,412
|
|
196,846
|
|
170,916
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
151,449
|
|
127,826
|
|
121,612
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense):
|
|
|
|
|
|
|
Interest
income
|
|
520
|
|
357
|
|
1,434
|
|
Interest
expense
|
(68,791)
|
|
(71,103)
|
|
(68,820)
|
|
Loss on debt
extinguishment
|
-
|
|
(105,807)
|
|
-
|
|
Other income
(expense)
|
(514)
|
|
(3,051)
|
|
678
|
|
|
Total interest and
other, net
|
(68,785)
|
|
(179,604)
|
|
(66,708)
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
82,664
|
|
(51,778)
|
|
54,904
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(6,212)
|
|
(303,325)
|
|
(13,567)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
76,452
|
|
(355,103)
|
|
41,337
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to redeemable non-controlling interests
|
-
|
|
-
|
|
50
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Equinix
|
$
76,452
|
|
$
(355,103)
|
|
$
41,387
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share attributable to Equinix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share (1)
|
$
1.35
|
|
$
(6.42)
|
|
$
0.83
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share (1)
|
$
1.34
|
|
$
(6.42)
|
|
$
0.81
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income (loss) per share
|
56,661
|
|
55,295
|
|
49,598
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income (loss) per share
|
57,227
|
|
55,295
|
|
53,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The net income (loss)
attributable to Equinix used in the computation of basic and
diluted net income (loss) per share attributed to Equinix is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 76,452
|
|
$ (355,103)
|
|
$ 41,337
|
|
Net loss attributable
to non-controlling interests
|
-
|
|
-
|
|
50
|
|
|
Net income (loss)
attributable to Equinix, basic
|
76,452
|
|
(355,103)
|
|
41,387
|
|
Interest on
convertible debt
|
-
|
|
-
|
|
1,984
|
|
|
Net income (loss)
attributable to Equinix, diluted
|
$ 76,452
|
|
$ (355,103)
|
|
$ 43,371
|
EQUINIX,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 76,452
|
|
$ (355,103)
|
|
$ 41,337
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
Foreign
currency translation gain (loss)
|
(146,311)
|
|
(97,123)
|
|
14,970
|
|
Unrealized gain
on available for
sale securities
|
103
|
|
135
|
|
839
|
|
Unrealized gain
on cash flow hedges
|
10,556
|
|
4,026
|
|
200
|
|
Change in
defined benefit plans
|
59
|
|
(2,001)
|
|
-
|
Other
comprehensive income (loss), net of tax:
|
(135,593)
|
|
(94,963)
|
|
16,009
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss), net of
tax
|
(59,141)
|
|
(450,066)
|
|
57,346
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to redeemable
non-controlling interests
|
-
|
|
-
|
|
50
|
|
Other
comprehensive income attributable to
redeemable non-controlling interests
|
-
|
|
-
|
|
(2,067)
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable
to
Equinix, net of tax
|
$
(59,141)
|
|
$
(450,066)
|
|
$
55,329
|
EQUINIX,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Assets
|
March
31,
|
|
December
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 536,709
|
|
$ 610,917
|
Short-term
investments
|
522,343
|
|
529,395
|
Accounts receivable,
net
|
277,900
|
|
262,570
|
Other current
assets
|
102,592
|
|
88,061
|
Total current assets
|
1,439,544
|
|
1,490,943
|
Long-term
investments
|
10,691
|
|
439
|
Property, plant and
equipment, net
|
4,990,883
|
|
4,998,270
|
Goodwill
|
|
|
984,436
|
|
1,002,129
|
Intangible assets,
net
|
136,010
|
|
147,527
|
Other
assets
|
|
166,130
|
|
178,125
|
Total
assets
|
$7,727,694
|
|
$ 7,817,433
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$ 321,942
|
|
$ 285,796
|
Accrued property and
equipment
|
123,659
|
|
114,469
|
Current portion of
capital lease and other financing obligations
|
23,819
|
|
21,362
|
Current portion of
mortgage and loans payable
|
54,939
|
|
59,466
|
Other current
liabilities
|
141,996
|
|
162,664
|
Total
current liabilities
|
666,355
|
|
643,757
|
Capital lease and
other financing obligations, less current portion
|
1,177,638
|
|
1,168,042
|
Mortgage and loans
payable, less current portion
|
512,446
|
|
534,686
|
Senior
notes
|
|
2,750,000
|
|
2,750,000
|
Convertible
debt
|
|
147,808
|
|
145,853
|
Other
liabilities
|
|
311,718
|
|
304,964
|
Total
liabilities
|
5,565,965
|
|
5,547,302
|
|
|
|
|
|
|
|
Common
stock
|
|
57
|
|
57
|
Additional paid-in
capital
|
3,383,079
|
|
3,334,305
|
Treasury
stock
|
|
(10,687)
|
|
(11,411)
|
Accumulated
dividends
|
(523,146)
|
|
(424,387)
|
Accumulated other
comprehensive loss
|
(468,036)
|
|
(332,443)
|
Accumulated
deficit
|
(219,538)
|
|
(295,990)
|
Total stockholders' equity
|
2,161,729
|
|
2,270,131
|
Total liabilities and stockholders' equity
|
$7,727,694
|
|
$ 7,817,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending headcount by
geographic region is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Americas
headcount
|
2,209
|
|
2,122
|
|
EMEA
headcount
|
1,053
|
|
1,023
|
|
Asia-Pacific
headcount
|
783
|
|
721
|
|
Total
headcount
|
4,045
|
|
3,866
|
EQUINIX,
INC.
|
SUMMARY OF DEBT
PRINCIPAL OUTSTANDING
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Capital lease and
other financing obligations
|
$ 1,201,457
|
|
$ 1,189,404
|
|
|
|
|
|
|
|
Term loan, net of
debt discount
|
488,513
|
|
498,400
|
ALOG
financings
|
46,109
|
|
56,863
|
Mortgage payable and
other loans payable
|
32,764
|
|
38,889
|
Less: debt discount
and premium, net
|
(524)
|
|
(681)
|
|
Total mortgage and
loans payable principal
|
566,862
|
|
593,471
|
|
|
|
|
|
|
|
Senior
notes
|
|
2,750,000
|
|
2,750,000
|
|
|
|
|
|
|
|
Convertible debt, net
of debt discount
|
147,808
|
|
145,853
|
Plus: debt
discount
|
10,077
|
|
12,032
|
|
Total convertible
debt principal
|
157,885
|
|
157,885
|
|
|
|
|
|
|
|
Total debt principal
outstanding
|
$ 4,676,204
|
|
$ 4,690,760
|
EQUINIX,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
$ 76,452
|
|
$ (355,103)
|
|
$ 41,337
|
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
122,530
|
|
133,096
|
|
113,610
|
|
|
Stock-based
compensation
|
30,613
|
|
31,517
|
|
24,981
|
|
|
Debt issuance costs
and debt discount
|
3,774
|
|
3,827
|
|
6,409
|
|
|
Loss on debt
extinguishment
|
-
|
|
105,807
|
|
-
|
|
|
Excess tax benefits
from employee equity awards
|
(708)
|
|
(2,125)
|
|
(10,018)
|
|
|
Other reconciling
items
|
4,870
|
|
5,863
|
|
5,292
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(30,791)
|
|
2,428
|
|
(28,995)
|
|
|
|
Income taxes,
net
|
(12,555)
|
|
295,947
|
|
(15,749)
|
|
|
|
Accounts payable and
accrued expenses
|
29,693
|
|
(16,429)
|
|
8,830
|
|
|
|
Other assets and
liabilities
|
8,933
|
|
(2,531)
|
|
26,021
|
|
|
|
|
Net cash provided
by operating activities
|
232,811
|
|
202,297
|
|
171,718
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchases, sales and
maturities of investments, net
|
(4,706)
|
|
(381,629)
|
|
221,654
|
|
Business
acquisitions, net of cash acquired
|
(10,247)
|
|
-
|
|
-
|
|
Purchases of real
estate
|
(38,282)
|
|
-
|
|
(16,791)
|
|
Purchases of other
property, plant and equipment
|
(150,120)
|
|
(238,477)
|
|
(105,907)
|
|
Other investing
activities
|
3,521
|
|
195
|
|
(71)
|
|
|
|
|
Net cash provided
by (used in) investing activities
|
(199,834)
|
|
(619,911)
|
|
98,885
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Purchases of treasury
stock
|
-
|
|
-
|
|
(47,120)
|
|
Proceeds from
employee equity awards
|
16,384
|
|
1,137
|
|
14,387
|
|
Payment of dividend
distributions
|
(96,619)
|
|
(83,266)
|
|
-
|
|
Proceeds from loans
payable
|
-
|
|
500,000
|
|
-
|
|
Proceeds from senior
notes
|
-
|
|
1,250,000
|
|
-
|
|
Repayment of capital
lease and other financing obligations
|
(5,296)
|
|
(4,890)
|
|
(4,250)
|
|
Repayment of mortgage
and loans payable
|
(13,361)
|
|
(115,963)
|
|
(10,317)
|
|
Repayment of senior
notes
|
-
|
|
(750,000)
|
|
-
|
|
Repayment of
convertible debt
|
-
|
|
(34)
|
|
-
|
|
Debt extinguishment
costs
|
-
|
|
(93,965)
|
|
-
|
|
Debt issuance
costs
|
(610)
|
|
(25,294)
|
|
-
|
|
Excess tax benefits
from employee equity awards
|
708
|
|
2,125
|
|
10,018
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
(98,794)
|
|
679,850
|
|
(37,282)
|
Effect of foreign
currency exchange rates on cash and cash equivalents
|
(8,391)
|
|
(5,500)
|
|
(41)
|
Net increase
(decrease) in cash and cash equivalents
|
(74,208)
|
|
256,736
|
|
233,280
|
Cash and cash
equivalents at beginning of period
|
610,917
|
|
354,181
|
|
261,894
|
Cash and cash
equivalents at end of period
|
$536,709
|
|
$
610,917
|
|
$495,174
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
Cash paid for
taxes
|
$ 14,538
|
|
$
6,407
|
|
$ 29,913
|
|
|
Cash paid for
interest
|
$ 23,976
|
|
$
94,283
|
|
$ 42,385
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(1)
|
$ 37,683
|
|
$
(35,985)
|
|
$ 48,949
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow (2)
|
$ 87,666
|
|
$
(29,881)
|
|
$103,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We define free cash
flow as net cash provided by operating activities plus net cash
provided by (used in) investing activities (excluding the net purchases, sales and maturities of
investments) as presented below:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities as presented above
|
$232,811
|
|
$ 202,297
|
|
$171,718
|
|
Net cash provided by
(used in) investing activities as presented above
|
(199,834)
|
|
(619,911)
|
|
98,885
|
|
Purchases, sales and
maturities of investments, net
|
4,706
|
|
381,629
|
|
(221,654)
|
|
|
Free cash flow
(negative free cash flow)
|
$ 37,683
|
|
$
(35,985)
|
|
$ 48,949
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We define adjusted
free cash flow as free cash flow (as defined above) excluding any
purchases of real estate, acquisitions, any excess tax benefits from employee equity awards,
cash paid for taxes associated with reclassifying our assets for
tax purposes triggered by our conversion
into a real estate investment trust ("REIT") and costs related to
the REIT conversion, as presented
below:
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (as
defined above)
|
$ 37,683
|
|
$
(35,985)
|
|
$ 48,949
|
|
Less business
acquisitions, net of cash
|
10,247
|
|
-
|
|
-
|
|
Less purchases of
real estate
|
38,282
|
|
-
|
|
16,791
|
|
Less excess tax
benefits from employee equity awards
|
708
|
|
2,125
|
|
10,018
|
|
Less cash paid for
taxes resulting from the REIT conversion
|
-
|
|
189
|
|
17,827
|
|
Less costs related to
the REIT conversion
|
746
|
|
3,790
|
|
9,790
|
|
|
Adjusted free cash
flow
|
$ 87,666
|
|
$
(29,881)
|
|
$103,375
|
|
|
|
|
|
|
|
|
|
|
|
We categorize our
cash paid for taxes into cash paid for taxes resulting from the
REIT conversion (as defined above) and other cash taxes paid.
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for taxes
resulting from the REIT conversion
|
$
-
|
|
$
189
|
|
$ 17,827
|
|
Other cash taxes
paid
|
14,538
|
|
6,218
|
|
12,086
|
|
|
Total cash paid for
taxes
|
$ 14,538
|
|
$
6,407
|
|
$ 29,913
|
EQUINIX,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP
PRESENTATION
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
Recurring
revenues
|
|
$609,657
|
|
$ 605,492
|
|
$549,703
|
Non-recurring
revenues
|
33,517
|
|
32,629
|
|
30,350
|
|
Revenues
(1)
|
|
643,174
|
|
638,121
|
|
580,053
|
|
|
|
|
|
|
|
|
|
Cash cost of revenues
(2)
|
192,130
|
|
195,945
|
|
184,248
|
|
|
|
Cash gross profit
(3)
|
451,044
|
|
442,176
|
|
395,805
|
|
|
|
|
|
|
|
|
|
Cash operating
expenses (4):
|
|
|
|
|
|
|
Cash sales and
marketing expenses (5)
|
63,820
|
|
67,036
|
|
55,799
|
|
Cash general and
administrative expenses (6)
|
81,476
|
|
80,775
|
|
79,618
|
|
|
|
Total cash
operating expenses (7)
|
145,296
|
|
147,811
|
|
135,417
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(8)
|
$305,748
|
|
$
294,365
|
|
$260,388
|
|
|
|
|
|
|
|
|
|
Cash gross margins
(9)
|
70%
|
|
69%
|
|
68%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margins (10)
|
48%
|
|
46%
|
|
45%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
flow-through rate (11)
|
225%
|
|
59%
|
|
(20%)
|
|
|
|
|
|
|
|
|
|
FFO
(12)
|
|
|
$179,190
|
|
$ (241,338)
|
|
$138,732
|
|
|
|
|
|
|
|
|
|
AFFO
(13)
|
|
|
$221,756
|
|
$
194,506
|
|
$172,744
|
|
|
|
|
|
|
|
|
|
Basic FFO per
share (14)
|
$ 3.16
|
|
$
(4.36)
|
|
$ 2.80
|
|
|
|
|
|
|
|
|
|
Diluted FFO per
share (14)
|
$ 3.09
|
|
$
(4.36)
|
|
$ 2.52
|
|
|
|
|
|
|
|
|
|
Basic AFFO per
share (15)
|
$ 3.91
|
|
$
3.52
|
|
$ 3.48
|
|
|
|
|
|
|
|
|
|
Diluted AFFO per
share (15)
|
$ 3.77
|
|
$
3.39
|
|
$ 3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The geographic split
of our revenues on a services basis is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
|
$257,932
|
|
$ 254,037
|
|
$236,614
|
|
Interconnection
|
|
75,086
|
|
71,992
|
|
64,302
|
|
Managed
infrastructure
|
13,295
|
|
13,860
|
|
13,112
|
|
Rental
|
|
|
741
|
|
814
|
|
952
|
|
|
Recurring
revenues
|
347,054
|
|
340,703
|
|
314,980
|
|
Non-recurring
revenues
|
16,915
|
|
15,699
|
|
15,053
|
|
|
Revenues
|
363,969
|
|
356,402
|
|
330,033
|
|
|
|
|
|
|
|
|
|
|
EMEA
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
|
132,735
|
|
134,816
|
|
122,176
|
|
Interconnection
|
|
13,048
|
|
13,484
|
|
11,366
|
|
Managed
infrastructure
|
5,783
|
|
5,487
|
|
6,865
|
|
Rental
|
|
|
1,858
|
|
1,613
|
|
1,718
|
|
|
Recurring
revenues
|
153,424
|
|
155,400
|
|
142,125
|
|
Non-recurring
revenues
|
11,199
|
|
11,693
|
|
9,305
|
|
|
Revenues
|
164,623
|
|
167,093
|
|
151,430
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
|
90,878
|
|
91,211
|
|
75,833
|
|
Interconnection
|
|
13,524
|
|
13,231
|
|
11,358
|
|
Managed
infrastructure
|
4,777
|
|
4,947
|
|
5,407
|
|
|
Recurring
revenues
|
109,179
|
|
109,389
|
|
92,598
|
|
Non-recurring
revenues
|
5,403
|
|
5,237
|
|
5,992
|
|
|
Revenues
|
114,582
|
|
114,626
|
|
98,590
|
|
|
|
|
|
|
|
|
|
|
Worldwide
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
|
481,545
|
|
480,064
|
|
434,623
|
|
Interconnection
|
|
101,658
|
|
98,707
|
|
87,026
|
|
Managed
infrastructure
|
23,855
|
|
24,294
|
|
25,384
|
|
Rental
|
|
|
2,599
|
|
2,427
|
|
2,670
|
|
|
Recurring
revenues
|
609,657
|
|
605,492
|
|
549,703
|
|
Non-recurring
revenues
|
33,517
|
|
32,629
|
|
30,350
|
|
|
Revenues
|
$643,174
|
|
$ 638,121
|
|
$580,053
|
|
|
|
|
|
|
|
|
|
(2)
|
We define cash cost
of revenues as cost of revenues less depreciation, amortization,
accretion and stock-based compensation as presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$298,313
|
|
$ 313,449
|
|
$287,525
|
|
Depreciation,
amortization and accretion expense
|
(103,877)
|
|
(115,236)
|
|
(101,407)
|
|
Stock-based
compensation expense
|
(2,306)
|
|
(2,268)
|
|
(1,870)
|
|
|
Cash cost of
revenues
|
$192,130
|
|
$ 195,945
|
|
$184,248
|
|
|
|
|
|
|
|
|
|
|
The geographic split
of our cash cost of revenues is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas cash cost of
revenues
|
$ 95,162
|
|
$ 97,396
|
|
$ 91,037
|
|
EMEA cash cost of
revenues
|
58,494
|
|
59,987
|
|
58,116
|
|
Asia-Pacific cash
cost of revenues
|
38,474
|
|
38,562
|
|
35,095
|
|
|
Cash cost of
revenues
|
$192,130
|
|
$ 195,945
|
|
$184,248
|
|
|
|
|
|
|
|
|
|
(3)
|
We define cash gross
profit as revenues less cash cost of revenues (as defined
above).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
We define cash
operating expenses as operating expenses less depreciation,
amortization, stock-based compensation and acquisition costs. We also refer to cash operating
expenses as cash selling, general and administrative expenses or
"cash SG&A".
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
We define cash sales
and marketing expenses as sales and marketing expenses less
depreciation, amortization and
stock-based compensation as presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
$ 78,616
|
|
$ 81,236
|
|
$ 67,428
|
|
Depreciation and
amortization expense
|
(6,085)
|
|
(6,315)
|
|
(4,629)
|
|
Stock-based
compensation expense
|
(8,711)
|
|
(7,885)
|
|
(7,000)
|
|
|
Cash sales and
marketing expenses
|
$ 63,820
|
|
$ 67,036
|
|
$ 55,799
|
|
|
|
|
|
|
|
|
|
(6)
|
We define cash
general and administrative expenses as general and administrative
expenses less depreciation, amortization and stock-based compensation as
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
$113,640
|
|
$ 113,684
|
|
$103,303
|
|
Depreciation and
amortization expense
|
(12,568)
|
|
(11,545)
|
|
(7,574)
|
|
Stock-based
compensation expense
|
(19,596)
|
|
(21,364)
|
|
(16,111)
|
|
|
Cash general and
administrative expenses
|
$ 81,476
|
|
$ 80,775
|
|
$ 79,618
|
|
|
|
|
|
|
|
|
|
(7)
|
Our cash operating
expenses, or cash SG&A, as defined above, is presented
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash sales and
marketing expenses
|
$ 63,820
|
|
$ 67,036
|
|
$ 55,799
|
|
Cash general and
administrative expenses
|
81,476
|
|
80,775
|
|
79,618
|
|
|
Cash
SG&A
|
$145,296
|
|
$ 147,811
|
|
$135,417
|
|
|
|
|
|
|
|
|
|
|
The geographic split
of our cash operating expenses, or cash SG&A, is presented
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas cash
SG&A
|
$ 96,073
|
|
$ 91,762
|
|
$ 89,433
|
|
EMEA cash
SG&A
|
30,098
|
|
36,226
|
|
30,109
|
|
Asia-Pacific cash
SG&A
|
19,125
|
|
19,823
|
|
15,875
|
|
|
Cash
SG&A
|
$145,296
|
|
$ 147,811
|
|
$135,417
|
|
|
|
|
|
|
|
|
|
(8)
|
We define adjusted
EBITDA as income from operations plus depreciation, amortization,
accretion, stock-based compensation
expense and acquisition costs as presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$151,449
|
|
$ 127,826
|
|
$121,612
|
|
Depreciation,
amortization and accretion expense
|
122,530
|
|
133,096
|
|
113,610
|
|
Stock-based
compensation expense
|
30,613
|
|
31,517
|
|
24,981
|
|
Acquisition
costs
|
1,156
|
|
1,926
|
|
185
|
|
|
Adjusted
EBITDA
|
$305,748
|
|
$ 294,365
|
|
$260,388
|
|
|
|
|
|
|
|
|
|
|
The geographic split
of our adjusted EBITDA is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas income from
operations
|
$ 81,466
|
|
$ 70,131
|
|
$ 71,735
|
|
Americas
depreciation, amortization and accretion expense
|
66,811
|
|
72,408
|
|
58,933
|
|
Americas stock-based
compensation expense
|
23,491
|
|
24,351
|
|
18,793
|
|
Americas acquisition
costs
|
966
|
|
354
|
|
102
|
|
|
Americas adjusted
EBITDA
|
172,734
|
|
167,244
|
|
149,563
|
|
|
|
|
|
|
|
|
|
|
EMEA income from
operations
|
45,541
|
|
35,867
|
|
29,903
|
|
EMEA depreciation,
amortization and accretion expense
|
26,693
|
|
29,770
|
|
29,902
|
|
EMEA stock-based
compensation expense
|
3,607
|
|
3,671
|
|
3,317
|
|
EMEA acquisition
costs
|
190
|
|
1,572
|
|
83
|
|
|
EMEA adjusted
EBITDA
|
76,031
|
|
70,880
|
|
63,205
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific income
from operations
|
24,442
|
|
21,828
|
|
19,974
|
|
Asia-Pacific
depreciation, amortization and accretion expense
|
29,026
|
|
30,918
|
|
24,775
|
|
Asia-Pacific
stock-based compensation expense
|
3,515
|
|
3,495
|
|
2,871
|
|
|
Asia-Pacific adjusted
EBITDA
|
56,983
|
|
56,241
|
|
47,620
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$305,748
|
|
$ 294,365
|
|
$260,388
|
|
|
|
|
|
|
|
|
|
(9)
|
We define cash gross
margins as cash gross profit divided by revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our cash gross
margins by geographic region is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas cash gross
margins
|
74%
|
|
73%
|
|
72%
|
|
|
|
|
|
|
|
|
|
|
EMEA cash gross
margins
|
64%
|
|
64%
|
|
62%
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific cash
gross margins
|
66%
|
|
66%
|
|
64%
|
|
|
|
|
|
|
|
|
|
(10)
|
We define adjusted
EBITDA margins as adjusted EBITDA divided by revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas adjusted
EBITDA margins
|
47%
|
|
47%
|
|
45%
|
|
|
|
|
|
|
|
|
|
|
EMEA adjusted EBITDA
margins
|
46%
|
|
42%
|
|
42%
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific adjusted
EBITDA margins
|
50%
|
|
49%
|
|
48%
|
|
|
|
|
|
|
|
|
|
(11)
|
We define adjusted
EBITDA flow-through rate as incremental adjusted EBITDA growth
divided by incremental
|
|
|
|
revenue growth as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
current period
|
$305,748
|
|
$ 294,365
|
|
$260,388
|
|
Less adjusted EBITDA
- prior period
|
(294,365)
|
|
(283,861)
|
|
(263,530)
|
|
|
Adjusted EBITDA
growth
|
$ 11,383
|
|
$ 10,504
|
|
$ (3,142)
|
|
|
|
|
|
|
|
|
|
|
Revenues - current
period
|
$643,174
|
|
$ 638,121
|
|
$580,053
|
|
Less revenues - prior
period
|
(638,121)
|
|
(620,441)
|
|
(564,677)
|
|
|
Revenue
growth
|
$ 5,053
|
|
$ 17,680
|
|
$ 15,376
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
flow-through rate
|
225%
|
|
59%
|
|
(20%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
FFO is defined as net
income (loss), excluding gains (losses) from the disposition of
real estate assets, depreciation and
amortization on real estate assets and adjustments for
unconsolidated joint ventures' and non-controlling interests' share of these
items.
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 76,452
|
|
$ (355,103)
|
|
$ 41,337
|
|
|
Net loss attributable
to redeemable non-controlling interests
|
-
|
|
-
|
|
50
|
|
Net income (loss)
attributable to Equinix
|
76,452
|
|
(355,103)
|
|
41,387
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Real estate
depreciation and amortization
|
102,648
|
|
113,683
|
|
99,451
|
|
|
Gain/loss on
disposition of real estate property
|
62
|
|
54
|
|
33
|
|
|
Adjustments for FFO
from unconsolidated joint ventures
|
28
|
|
28
|
|
28
|
|
|
Non-controlling
interests' share of above adjustments
|
-
|
|
-
|
|
(2,167)
|
|
|
FFO
|
|
$179,190
|
|
$ (241,338)
|
|
$138,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13)
|
AFFO is defined as
FFO, excluding depreciation and amortization expense on non-real
estate assets, accretion, stock-based compensation, restructuring charges,
impairment charges, acquisition costs, an installation revenue
adjustment, a straight-line rent expense
adjustment, amortization of deferred financing costs, gains
(losses) on debt extinguishment, the
non-cash portion of income tax expense, recurring capital
expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling
interests' share of these
items.
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
|
$179,190
|
|
$ (241,338)
|
|
$138,732
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Installation revenue
adjustment
|
8,654
|
|
7,224
|
|
7,173
|
|
|
Straight-line rent
expense adjustment
|
3,201
|
|
3,335
|
|
3,029
|
|
|
Amortization of
deferred financing costs
|
3,858
|
|
3,944
|
|
6,499
|
|
|
Stock-based
compensation expense
|
30,613
|
|
31,517
|
|
24,981
|
|
|
Non-real estate
depreciation expense
|
12,693
|
|
11,478
|
|
7,572
|
|
|
Amortization
expense
|
6,295
|
|
6,803
|
|
6,970
|
|
|
Accretion
expense
|
894
|
|
1,132
|
|
(383)
|
|
|
Recurring capital
expenditures
|
(22,373)
|
|
(33,124)
|
|
(26,449)
|
|
|
Loss on debt
extinguishment
|
-
|
|
105,807
|
|
-
|
|
|
Acquisition
costs
|
1,156
|
|
1,926
|
|
185
|
|
|
Non-cash portion of
income tax expense
|
(2,408)
|
|
295,820
|
|
4,955
|
|
|
Adjustments for AFFO
from unconsolidated joint ventures
|
(17)
|
|
(18)
|
|
(21)
|
|
|
Non-controlling
interests share of above adjustments
|
-
|
|
-
|
|
(499)
|
|
|
AFFO
|
|
$221,756
|
|
$ 194,506
|
|
$172,744
|
|
|
|
|
|
|
|
|
|
(14)
|
The FFO used in the
computation of basic and diluted FFO per share attributable to
Equinix is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO, basic
|
|
$179,190
|
|
$ (241,338)
|
|
$138,732
|
|
|
Interest on
convertible debt
|
3,362
|
|
-
|
|
7,112
|
|
FFO,
diluted
|
|
$182,552
|
|
$ (241,338)
|
|
$145,844
|
|
|
|
|
|
|
|
|
|
|
The shares used in
the computation of basic and diluted FFO per share attributable to
Equinix is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income (loss) per share and FFO per
share
|
56,661
|
|
55,295
|
|
49,598
|
|
Effect of
dilutive securities:
|
|
|
|
|
|
|
|
Convertible
debt
|
1,942
|
|
-
|
|
7,803
|
|
|
Employee equity
awards
|
566
|
|
-
|
|
417
|
|
Shares used in
computing diluted FFO per share
|
59,169
|
|
55,295
|
|
57,818
|
|
|
|
|
|
|
|
|
|
(15)
|
The AFFO used in the
computation of basic and diluted AFFO per share attributable to
Equinix is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO,
basic
|
|
$221,756
|
|
$ 194,506
|
|
$172,744
|
|
|
Interest on
convertible debt
|
1,554
|
|
2,372
|
|
2,628
|
|
AFFO,
diluted
|
|
$223,310
|
|
$ 196,878
|
|
$175,372
|
|
|
|
|
|
|
|
|
|
|
The shares used in
the computation of basic and diluted AFFO per share attributable to
Equinix is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income (loss) per share and AFFO per
share
|
56,661
|
|
55,295
|
|
49,598
|
|
Effect of
dilutive securities:
|
|
|
|
|
|
|
|
Convertible
debt
|
1,942
|
|
2,199
|
|
7,803
|
|
|
Employee equity
awards
|
566
|
|
510
|
|
417
|
|
Shares used in
computing diluted AFFO per share
|
59,169
|
|
58,004
|
|
57,818
|
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SOURCE Equinix, Inc.