REDWOOD CITY, Calif.,
July 29, 2020 /PRNewswire/ --
- Quarterly revenues increased 6% over the same quarter last year
to $1.470 billion, or 8% on a
normalized and constant currency basis, representing the
70th consecutive quarter of revenue growth
- Delivered one of the strongest quarters of interconnection
growth and activity in the company's history
- Customer deployments across multiple metros comprised 88% of
total recurring revenues, demonstrating the value of the Equinix
global platform
Equinix, Inc. (Nasdaq: EQIX), the global interconnection
and data center company, today reported results for the quarter
ended June 30, 2020. Equinix 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. All per share results are presented
on a fully diluted basis.
Second Quarter 2020 Results Summary
- Revenues
-
- $1.470 billion, a 2% increase
over the previous quarter
- Includes a $3 million foreign
currency benefit when compared to prior guidance rates
- Operating Income
-
- $282 million, an 11% increase
over the previous quarter and an operating margin of 19%
- Adjusted EBITDA
-
- $720 million, a 49% adjusted
EBITDA margin
- Includes a $1 million foreign
currency benefit when compared to prior guidance rates
- Includes $2 million of
integration costs
- Net Income and Net Income per Share attributable to
Equinix
-
- $133 million, a 12% increase over
the previous quarter
- $1.52 per share, a 10% increase
over the previous quarter
- AFFO and AFFO per Share
-
- $558 million, a 4% increase over
the previous quarter
- $6.35 per share, a 2% increase
over the previous quarter
- Includes $2 million of
integration costs
2020 Annual Guidance Summary
- Revenues
-
- $5.919 - $5.989 billion, a 6 - 8% increase over the
previous year, or a normalized and constant currency increase of 8
- 9%
- An increase of $23 million due to
a foreign currency benefit when compared to the prior guidance FX
rates
- Adjusted EBITDA
-
- $2.781 - $2.851 billion, a 47% adjusted EBITDA margin
- An increase of $11 million due to
a foreign currency benefit when compared to the prior guidance FX
rates
- Assumes $20 million of
integration costs
- AFFO and AFFO per Share
-
- $2.107 - $2.177 billion, an increase of 9 - 13% over the
previous year, or a normalized and constant currency increase of 14
- 18%; an increase of $54 million
compared to prior guidance, including an $11
million foreign currency benefit
- $23.87 - $24.67 per share, an increase of 5 - 8% over the
previous year, or a normalized and constant currency increase of 8
- 12%; reaffirms prior full-year AFFO per share guidance while
fully absorbing the dilution impact from the $1.7 billion public offering of common stock
- Assumes $20 million of
integration costs
Equinix does not provide forward-looking guidance for certain
financial data, such as depreciation, amortization, accretion,
stock-based compensation, net income (loss) from operations, cash
generated from operating activities and cash used in investing
activities, and as a result, is not able to provide a
reconciliation of GAAP to non-GAAP financial measures for
forward-looking data without unreasonable effort. The impact of
such adjustments could be significant.
Equinix Quote
Charles Meyers, President and
CEO, Equinix:
"Even in the face of an uncertain macro environment created
by the global pandemic, the Equinix business continues to perform
well. The demand drivers for digital infrastructure have never been
stronger, and our relevance in enabling our customers to respond
effectively to their digital transformation imperatives continues
to increase. The power of our global platform and the resiliency
and adaptability of our global teams are helping us create distinct
and durable value for our customers, driving strong business
results and allowing us to remain focused on delivering a positive
impact to our many stakeholders as we build an enduring and
sustainable culture and business."
Business Highlights
- Equinix continued to invest in building out its global platform
in response to strong customer demand and a high level of inventory
utilization:
-
- On May 29, Equinix entered into
an agreement to purchase a portfolio of 13 data center sites,
representing 25 data centers, across Canada from BCE Inc. ("Bell") for
approximately $750 million. The
addition of these strategic assets, their associated operations and
the more than 600 customers operating within the data centers will
further strengthen Equinix's global platform. The acquisition will
expand Equinix's coverage in Canada coast to coast, making it a market
leader in data center and interconnection services. In addition to
adding new capacity in Toronto,
Ontario, where Equinix currently operates two International
Business Exchange™ (IBX®) data centers, it will extend
Equinix's interconnection services to seven new metros.
- Equinix continues its investment in organic growth and
expansion activities with 29 major expansion projects underway in
20 markets across 14 countries.
- Additionally, Equinix completed seven new openings or phased
expansions in Q2 in Amsterdam,
Chicago, Dallas, Hamburg, Hong
Kong, Toronto and
Washington, D.C.
- In Q2, Equinix opened the 5G and Edge Proof of Concept Center
(POCC) at its Dallas Infomart campus, which provides a 5G and edge
"sandbox" environment, enabling Mobile Network Operators (MNOs),
cloud platforms, technology vendors and enterprises to directly
connect with the largest edge data center platform in order to
test, demonstrate and accelerate complex 5G and edge deployment and
interoperability scenarios. The POCC will support the growing
demand for companies to accelerate their evolution from traditional
to digital businesses.
- Equinix continues to strengthen its leadership position in the
cloud ecosystem through the company's hyperscale strategy,
expanding its footprint to service both retail and large footprint
hyperscale requirements in key markets, while leveraging its joint
venture relationship with GIC. Equinix is seeing strong customer
demand in its initial European xScale JV™ with GIC, and is expected
to expand this JV with its PA9x asset, which is expected to open
early next year and is already 100% pre-leased to a major
hyperscaler. Equinix is also targeting to close its new xScale JV
in Japan with GIC in Q4, adding
hyperscale assets in both Osaka
and Tokyo.
- Interconnection revenues in Q2 grew 14% year-over-year, or 16%
on a normalized and constant currency basis, steadily rising over
the last few quarters, reflecting the demand across the Equinix
portfolio for interconnection products. Today, Equinix has the most
comprehensive global interconnection platform, comprising over
378,000 physical and virtual interconnections. In Q2, Equinix added
an incremental 8,000 interconnections, fueled by streaming, video
conferencing, enterprise cloud connectivity and work-from-home
local aggregation.
- Equinix had strong bookings across all three regions (Americas,
EMEA and Asia-Pacific) in Q2, with
record bookings in the Americas. The network vertical also achieved
record bookings, driven by robust network reseller activity and
network expansions to support traffic growth. The financial
services vertical captured its second-highest bookings, with
strength in global financial and insurance firms as they embrace
digital transformation.
- Equinix's financial strength remains a significant and
strategic advantage. In May, Equinix raised approximately
$1.7 billion in common stock to
support the continued organic and inorganic growth of the business
and received its third investment grade rating when Moody's
upgraded Equinix's corporate debt rating to Baa3 from Ba1. In June,
Equinix leveraged the company's investment-grade ratings by
refinancing $2.6 billion of
high-yield debt at a blended interest rate of 2.07%. The interest
savings from the refinancing effectively offset the dilution
associated with equity raise.
COVID-19 Update
Many of the Company's IBX data centers have been identified
as "essential businesses" or "critical infrastructure" by local
governments for purposes of remaining open during the COVID-19
pandemic, and all IBX data centers remain operational at the time
of filing of this press release. Precautionary measures have been
implemented to minimize the risk of operational impact and to
protect the health and safety of employees, customers, partners and
communities. These include implementing tools such as an
appointment-based system to control timing and frequency of visits,
while also encouraging customers to leverage IBX technicians via
Smart Hands® in order to restrict visits and minimize
the number of people and the amount of time spent in the Company's
IBX facilities. For the health and safety of Equinix employees, the
Company's corporate offices were closed in March and non-IBX
employees across the globe were instructed to work from home until
further notice. Recently, a phased plan has been announced for a
return-to-office for non-IBX attached sites, and the Company will
begin to open certain offices as local conditions allow.
Additionally, the Company has decided to continue to limit employee
travel and has made the decision to either postpone or virtualize
all global events through January
2021.
Looking ahead, the full impact of the COVID-19 pandemic on the
Company's financial condition or results of operations remains
uncertain and will depend on a number of factors, including its
impact on Equinix customers, partners and vendors and the impact
on, and functioning of, the global financial markets. The Company's
past results may not be indicative of future performance, and
historical trends may differ materially. Additional information
pertaining to the impact of COVID-19 on Equinix and the Company's
response thereto will be provided in the upcoming Form 10-Q for the
quarter ended June 30, 2020.
Business Outlook
For the third quarter of 2020, the Company expects revenues to
range between $1.493 and $1.513 billion, an increase of 2 - 3%
quarter-over-quarter, or a normalized and constant currency
increase of approximately 1 - 3%. This guidance includes a
$5 million foreign currency benefit
when compared to the average foreign currency ("FX") rates in Q2
2020. Adjusted EBITDA is expected to range between $696 and $716
million, including a $3
million foreign currency benefit when compared to the
average FX rates in Q2 2020 and $5
million of integration costs from acquisitions. Recurring
capital expenditures are expected to range between $36 and $46
million.
For the full year of 2020, total revenues are expected to range
between $5.919 and $5.989 billion, a 6 - 8% increase over the
previous year, or a normalized and constant currency increase of
approximately 8 - 9%. This $23
million guidance raise is due to a foreign currency benefit
when compared to the prior guidance FX rates. Adjusted EBITDA is
expected to range between $2.781 and
$2.851 billion, an adjusted EBITDA
margin of 47% at the mid-point. This $11
million guidance raise is due to a foreign currency benefit
when compared to the prior guidance FX rates. For the year, the
company expects to incur $20 million
in integration costs related to acquisitions. AFFO is expected to
range between $2.107 and $2.177 billion, an increase of 9 - 13% over the
previous year, or a normalized and constant currency increase of 14
- 18% and $20 million of integration
costs related to our acquisitions. This $54
million guidance raise includes an $11 million foreign currency benefit when
compared to prior guidance rates. AFFO per share is expected to
range between $23.87 and $24.67, an increase of 5 - 8% over the previous
year, or a normalized and constant currency increase of 8 - 12%.
This guidance reaffirms prior full-year underlying AFFO per share
guidance while fully absorbing the dilution impact from the
$1.7 billion public offering of
common stock that the company undertook in the second quarter. This
guidance excludes any potential financing or refinancing the
Company may undertake in the future. Non-recurring capital
expenditures are expected to range between $2.050 and $2.240
billion, including $150
million of incremental xScale capital expenditures which we
expect to transfer to the Japan JV in Q4, and recurring capital
expenditures are expected to range between $150 and $160
million.
The U.S. dollar exchange rates used for 2020 guidance, taking
into consideration the impact of our current foreign currency
hedges, have been updated to $1.13 to
the Euro, $1.28 to the Pound,
S$1.39 to the U.S. dollar, ¥108 to
the U.S. dollar, and R$5.41 to the
U.S. dollar. The Q2 2020 global revenue breakdown by currency for
the Euro, British Pound, Singapore Dollar, Japanese Yen and
Brazilian Real is 20%, 10%, 7%, 7% and 2%, respectively.
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 net interest expense, an
installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred
financing costs and debt discounts and premiums, income tax
expense, an income tax expense adjustment, recurring capital
expenditures, other income (expense), (gains) losses on disposition
of real estate property and adjustments for unconsolidated joint
ventures' and non-controlling interests' share of these items.
Q2 2020 Results Conference Call and Replay
Information
Equinix will discuss its quarterly results for the period ended
June 30, 2020, along with its future outlook, in its quarterly
conference call on Wednesday, July 29, 2020, 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 1-517-308-9482 (domestic and international) and reference the
passcode EQIX.
A replay of the call will be available one hour after the call
through Wednesday, November 4, 2020,
by dialing 1-203-369-3598 and referencing the passcode 2020. In
addition, the webcast will be available at
www.equinix.com/investors (no password required).
Investor Presentation and Supplemental Financial
Information
Equinix has made available on its website a presentation
designed to accompany the discussion of Equinix's results and
future outlook, along with certain supplemental financial
information and other data. Interested parties may access this
information through the Equinix Investor Relations website at
www.equinix.com/investors.
Additional Resources
- Equinix Investor Relations Resources
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading
businesses to their customers, employees and partners inside the
most-interconnected data centers. On this global platform for
digital business, companies come together across more than 55
markets on five continents to reach everywhere, interconnect
everyone and integrate everything they need to create their digital
futures.
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.
Equinix provides normalized and constant currency growth rates,
which are calculated to adjust for acquisitions, dispositions,
integration costs, changes in accounting principles and foreign
currency.
Equinix presents adjusted EBITDA, which is a non-GAAP financial
measure. Adjusted EBITDA represents income from operations
excluding depreciation, amortization, accretion, stock-based
compensation expense, restructuring charges, impairment charges,
transaction costs and gain or loss on asset sales.
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 Equinix'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, transaction costs and gain or loss on asset
sales. Equinix excludes these items in order for its lenders,
investors and the industry analysts who review and report on
Equinix to better evaluate Equinix'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 an IBX data center, and
do not reflect its current or future cash spending levels to
support its business. Its IBX data centers are long-lived assets,
and have an economic life greater than 10 years. The construction
costs of an IBX data center do not recur with respect to such data
center, although Equinix may incur initial construction costs in
future periods with respect to additional IBX data centers, and
future capital expenditures remain minor relative to the initial
investment. This is a trend it expects to continue. In addition,
depreciation is also based on the estimated useful lives of the IBX
data centers. These estimates could vary from actual performance of
the asset, are based on historic costs incurred to build out our
IBX data 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 acquired
intangible assets. Amortization expense is significantly affected
by the timing and magnitude of acquisitions and these charges may
vary in amount from period to period. We exclude amortization
expense to facilitate a more meaningful evaluation of our current
operating performance and comparisons to our prior periods. 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 also
believes are not meaningful in evaluating Equinix's current
operations. Equinix excludes stock-based compensation expense, as
it can vary significantly from period to period based on share
price and the timing, size and nature of equity awards. As such,
Equinix and many investors and analysts exclude stock-based
compensation expense to compare its operating results with those of
other companies. Equinix excludes restructuring charges from its
non-GAAP financial measures. The restructuring charges relate to
Equinix's decision to exit leases for excess space adjacent to
several of its IBX data centers, which it did not intend to build
out, or its 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. Equinix
also excludes gain or loss on asset sales as it represents profit
or loss that is not meaningful in evaluating the current or future
operating performance. Finally, Equinix excludes transaction costs
from its non-GAAP financial measures to allow more comparable
comparisons of the financial results to the historical operations.
The transaction costs relate to costs Equinix incurs in connection
with business combinations and formation of joint ventures,
including advisory, legal, accounting, valuation and other
professional or consulting fees. Such charges generally are not
relevant to assessing the long-term performance of Equinix. In
addition, the frequency and amount of such charges vary
significantly based on the size and timing of the transactions.
Management believes items such as restructuring charges, impairment
charges, transaction costs and gain or loss on asset sales are
non-core transactions; however, these types of costs may occur in
future periods.
Equinix also presents funds from operations ("FFO") and adjusted
funds from operations ("AFFO"), both commonly used in the REIT
industry, as supplemental performance measures. FFO is calculated
in accordance with the definition established by the National
Association of Real Estate Investment Trusts ("NAREIT"). FFO
represents net income or loss, excluding gain or loss 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, transaction costs, an
installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred
financing costs and debt discounts and premiums, gain or loss on
debt extinguishment, an income tax expense adjustment, recurring
capital expenditures, net income or loss from discontinued
operations, net of tax 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 transaction costs for the same
reasons that they are excluded from the other non-GAAP financial
measures mentioned above.
Equinix includes an adjustment for revenues from installation
fees, since installation fees are deferred and recognized ratably
over the period of contract term, 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. Equinix also includes an adjustment to contract
costs incurred to obtain contracts, since contract costs are
capitalized and amortized over the estimated period of benefit on a
straight-line basis, although costs of obtaining contracts are
generally incurred and paid during the period of obtaining the
contracts. The adjustments for installation revenues, straight-line
rent expense and contract costs 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 and debt discounts and
premiums as these expenses relate to the initial costs incurred in
connection with its debt financings that have no current or future
cash obligations. Equinix excludes gain or loss on debt
extinguishment since it represents a cost that is not a good
indicator of Equinix's current or future operating performance.
Equinix includes an income tax expense adjustment, which represents
the non-cash tax impact due to changes in valuation allowances and
uncertain tax positions that do not relate to the current period's
operations. Equinix excludes recurring capital expenditures, which
represent expenditures to extend the useful life of its IBX data
centers or other assets that are required to support current
revenues. Equinix also excludes net income or loss from
discontinued operations, net of tax, which represents results that
are not a good indicator of our current or future operating
performance.
Equinix presents constant currency results of operations, which
is a non-GAAP financial measure and is not meant to be considered
in isolation or as an alternative to GAAP results of operations.
However, Equinix has presented this non-GAAP financial measure to
provide investors with an additional tool to evaluate its operating
results without the impact of fluctuations in foreign currency
exchange rates, thereby facilitating period-to-period comparisons
of Equinix's business performance. To present this information,
Equinix's current and comparative prior period revenues and certain
operating expenses from entities with functional currencies other
than the U.S. dollar are converted into U.S. dollars at a
consistent exchange rate for purposes of each result being
compared.
Non-GAAP financial measures are not a substitute for financial
information prepared in accordance with GAAP. Non-GAAP financial
measures should not be considered in isolation, but should be
considered together with the most directly comparable GAAP
financial measures and the reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP financial measures.
Equinix presents such non-GAAP financial measures to provide
investors with an additional tool to evaluate its operating results
in a manner that focuses on what management believes to be its
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 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 those of other companies.
Investors should, therefore, exercise caution when comparing
non-GAAP financial measures used by us to similarly titled non-GAAP
financial measures of other companies. Equinix does not provide
forward-looking guidance for certain financial data, such as
depreciation, amortization, accretion, stock-based compensation,
net income or loss from operations, cash generated from operating
activities and cash used in investing activities, and as a result,
is not able to provide a reconciliation of GAAP to non-GAAP
financial measures for forward-looking data without unreasonable
effort. The impact of such adjustments could be significant.
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, risks to our business and operating results
related to the COVID-19 pandemic; the challenges of acquiring,
operating and constructing IBX data centers and developing,
deploying and delivering Equinix products and solutions;
unanticipated costs or difficulties relating to the integration of
companies we have acquired or will acquire into Equinix; a failure
to receive significant revenues 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; risks related to our taxation as a REIT and other risks
described from time to time in Equinix filings with the Securities
and Exchange Commission. In particular, see recent and upcoming
Equinix 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,
INC. Condensed Consolidated Statements of
Operations (in thousands, except per share
data) (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
Recurring
revenues
|
$
|
1,398,138
|
|
|
$
|
1,361,694
|
|
|
$
|
1,306,045
|
|
|
$
|
2,759,832
|
|
|
$
|
2,580,873
|
|
Non-recurring
revenues
|
71,983
|
|
|
82,848
|
|
|
78,932
|
|
|
154,831
|
|
|
167,322
|
|
Revenues
|
1,470,121
|
|
|
1,444,542
|
|
|
1,384,977
|
|
|
2,914,663
|
|
|
2,748,195
|
|
Cost of
revenues
|
739,344
|
|
|
736,282
|
|
|
698,179
|
|
|
1,475,626
|
|
|
1,380,209
|
|
Gross
profit
|
730,777
|
|
|
708,260
|
|
|
686,798
|
|
|
1,439,037
|
|
|
1,367,986
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
178,124
|
|
|
180,450
|
|
|
159,201
|
|
|
358,574
|
|
|
328,916
|
|
General and
administrative
|
256,890
|
|
|
261,597
|
|
|
232,656
|
|
|
518,487
|
|
|
447,702
|
|
Transaction
costs
|
13,617
|
|
|
11,530
|
|
|
2,774
|
|
|
25,147
|
|
|
5,245
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
14,834
|
|
(Gain) loss on asset
sales
|
(342)
|
|
|
1,199
|
|
|
—
|
|
|
857
|
|
|
—
|
|
Total operating
expenses
|
448,289
|
|
|
454,776
|
|
|
395,017
|
|
|
903,065
|
|
|
796,697
|
|
Income from
operations
|
282,488
|
|
|
253,484
|
|
|
291,781
|
|
|
535,972
|
|
|
571,289
|
|
Interest and other
income (expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
1,685
|
|
|
4,273
|
|
|
7,762
|
|
|
5,958
|
|
|
11,964
|
|
Interest
expense
|
(108,480)
|
|
|
(107,338)
|
|
|
(120,547)
|
|
|
(215,818)
|
|
|
(243,393)
|
|
Other
income
|
4,278
|
|
|
5,170
|
|
|
12,180
|
|
|
9,448
|
|
|
12,014
|
|
Loss on debt
extinguishment
|
(1,868)
|
|
|
(6,441)
|
|
|
—
|
|
|
(8,309)
|
|
|
(382)
|
|
Total interest and
other, net
|
(104,385)
|
|
|
(104,336)
|
|
|
(100,605)
|
|
|
(208,721)
|
|
|
(219,797)
|
|
Income before
income taxes
|
178,103
|
|
|
149,148
|
|
|
191,176
|
|
|
327,251
|
|
|
351,492
|
|
Income tax
expense
|
(44,753)
|
|
|
(30,191)
|
|
|
(47,324)
|
|
|
(74,944)
|
|
|
(89,893)
|
|
Net
income
|
133,350
|
|
|
118,957
|
|
|
143,852
|
|
|
252,307
|
|
|
261,599
|
|
Net (income) loss
attributable to non-controlling interests
|
(46)
|
|
|
(165)
|
|
|
(325)
|
|
|
(211)
|
|
|
6
|
|
Net income
attributable to Equinix
|
$
|
133,304
|
|
|
$
|
118,792
|
|
|
$
|
143,527
|
|
|
$
|
252,096
|
|
|
$
|
261,605
|
|
Net income per
share attributable to Equinix:
|
Basic net income per
share
|
$
|
1.53
|
|
|
$
|
1.39
|
|
|
$
|
1.70
|
|
|
$
|
2.92
|
|
|
$
|
3.15
|
|
Diluted net income
per share
|
$
|
1.52
|
|
|
$
|
1.38
|
|
|
$
|
1.69
|
|
|
$
|
2.90
|
|
|
$
|
3.13
|
|
Shares used in
computing basic net income per share
|
87,303
|
|
|
85,551
|
|
|
84,399
|
|
|
86,427
|
|
|
83,114
|
|
Shares used in
computing diluted net income per share
|
87,901
|
|
|
86,144
|
|
|
84,767
|
|
|
87,065
|
|
|
83,471
|
|
EQUINIX,
INC. Condensed Consolidated Statements of Comprehensive
Income (Loss) (in
thousands) (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
Net income
|
$
|
133,350
|
|
|
$
|
118,957
|
|
|
$
|
143,852
|
|
|
$
|
252,307
|
|
|
$
|
261,599
|
|
Other comprehensive
loss, net of tax:
|
|
|
|
|
|
|
Foreign currency
translation adjustment ("CTA") gain (loss)
|
181,286
|
|
|
(413,792)
|
|
|
25,127
|
|
|
(232,506)
|
|
|
(56,592)
|
|
Net investment hedge
CTA gain (loss)
|
(97,058)
|
|
|
144,946
|
|
|
(37,857)
|
|
|
47,888
|
|
|
38,993
|
|
Unrealized gain
(loss) on cash flow hedges
|
(17,868)
|
|
|
(3,256)
|
|
|
(3,355)
|
|
|
(21,124)
|
|
|
4,869
|
|
Net actuarial gain
(loss) on defined benefit plans
|
20
|
|
|
35
|
|
|
(7)
|
|
|
55
|
|
|
(18)
|
|
Total other
comprehensive income (loss), net of tax
|
66,380
|
|
|
(272,067)
|
|
|
(16,092)
|
|
|
(205,687)
|
|
|
(12,748)
|
|
Comprehensive
income (loss), net of tax
|
199,730
|
|
|
(153,110)
|
|
|
127,760
|
|
|
46,620
|
|
|
248,851
|
|
Net (income) loss
attributable to non-controlling interests
|
(46)
|
|
|
(165)
|
|
|
(325)
|
|
|
(211)
|
|
|
6
|
|
Other comprehensive
(income) loss attributable to non-controlling interests
|
(2)
|
|
|
11
|
|
|
14
|
|
|
9
|
|
|
7
|
|
Comprehensive
income (loss) attributable to Equinix
|
$
|
199,682
|
|
|
$
|
(153,264)
|
|
|
$
|
127,449
|
|
|
$
|
46,418
|
|
|
$
|
248,864
|
|
EQUINIX,
INC. Condensed Consolidated Balance Sheets (in
thousands) (unaudited)
|
|
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
4,785,050
|
|
|
$
|
1,869,577
|
|
Short-term
investments
|
22,069
|
|
|
10,362
|
|
Accounts receivable,
net
|
691,589
|
|
|
689,134
|
|
Other current
assets
|
330,521
|
|
|
302,880
|
|
Assets held for
sale
|
152,188
|
|
|
663
|
|
Total current assets
|
5,981,417
|
|
|
2,872,616
|
|
Property, plant and
equipment, net
|
12,663,827
|
|
|
12,152,597
|
|
Operating lease
right-of-use assets
|
1,396,101
|
|
|
1,475,367
|
|
Goodwill
|
5,016,350
|
|
|
4,781,858
|
|
Intangible assets,
net
|
2,074,689
|
|
|
2,102,389
|
|
Other
assets
|
660,246
|
|
|
580,788
|
|
Total assets
|
$
|
27,792,630
|
|
|
$
|
23,965,615
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
745,517
|
|
|
$
|
760,718
|
|
Accrued property,
plant and equipment
|
335,013
|
|
|
301,535
|
|
Current portion of
operating lease liabilities
|
139,833
|
|
|
145,606
|
|
Current portion of
finance lease liabilities
|
102,416
|
|
|
75,239
|
|
Current portion of
mortgage and loans payable
|
75,589
|
|
|
77,603
|
|
Current portion of
senior notes
|
2,227,768
|
|
|
643,224
|
|
Other current
liabilities
|
229,635
|
|
|
153,938
|
|
Total current liabilities
|
3,855,771
|
|
|
2,157,863
|
|
Operating lease
liabilities, less current portion
|
1,243,362
|
|
|
1,315,656
|
|
Finance lease
liabilities, less current portion
|
1,658,432
|
|
|
1,430,882
|
|
Mortgage and loans
payable, less current portion
|
1,218,049
|
|
|
1,289,434
|
|
Senior notes, less
current portion
|
8,804,633
|
|
|
8,309,673
|
|
Other
liabilities
|
624,125
|
|
|
621,725
|
|
Total liabilities
|
17,404,372
|
|
|
15,125,233
|
|
Common
stock
|
89
|
|
|
86
|
|
Additional paid-in
capital
|
14,651,944
|
|
|
12,696,433
|
|
Treasury
stock
|
(127,042)
|
|
|
(144,256)
|
|
Accumulated
dividends
|
(4,639,041)
|
|
|
(4,168,469)
|
|
Accumulated other
comprehensive loss
|
(1,140,291)
|
|
|
(934,613)
|
|
Retained
earnings
|
1,642,621
|
|
|
1,391,425
|
|
Total Equinix stockholders' equity
|
10,388,280
|
|
|
8,840,606
|
|
Non-controlling
interests
|
(22)
|
|
|
(224)
|
|
Total stockholders' equity
|
10,388,258
|
|
|
8,840,382
|
|
Total liabilities and stockholders' equity
|
$
|
27,792,630
|
|
|
$
|
23,965,615
|
|
|
|
|
|
Ending headcount by
geographic region is as follows:
|
|
|
|
Americas headcount
|
4,103
|
|
|
3,672
|
|
EMEA headcount
|
3,172
|
|
|
2,941
|
|
Asia-Pacific headcount
|
1,906
|
|
|
1,765
|
|
Total headcount
|
9,181
|
|
|
8,378
|
|
EQUINIX,
INC. Summary of Debt Principal Outstanding (in
thousands) (unaudited)
|
|
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
|
|
Finance lease
liabilities
|
$
|
1,760,848
|
|
|
$
|
1,506,121
|
|
|
|
|
|
Term loans
|
1,214,332
|
|
|
1,282,302
|
|
Mortgage payable and
other loans payable
|
79,306
|
|
|
84,735
|
|
Plus: debt discount
and issuance costs, net
|
2,195
|
|
|
3,081
|
|
Total mortgage and loans payable principal
|
1,295,833
|
|
|
1,370,118
|
|
|
|
|
|
Senior
notes
|
11,032,401
|
|
|
8,952,897
|
|
Plus: debt issuance
costs
|
108,519
|
|
|
78,030
|
|
Less: debt
premium
|
(745)
|
|
|
(1,716)
|
|
Total senior notes principal
|
11,140,175
|
|
|
9,029,211
|
|
|
|
|
|
Total debt principal
outstanding
|
$
|
14,196,856
|
|
|
$
|
11,905,450
|
|
EQUINIX,
INC. Condensed Consolidated Statements of Cash
Flows (in thousands) (unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
Net income
|
$
|
133,350
|
|
|
$
|
118,957
|
|
|
$
|
143,852
|
|
|
$
|
252,307
|
|
|
$
|
261,599
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
Depreciation,
amortization and accretion
|
348,434
|
|
|
337,431
|
|
|
320,550
|
|
|
685,865
|
|
|
635,255
|
|
|
Stock-based
compensation
|
75,844
|
|
|
64,499
|
|
|
61,519
|
|
|
140,343
|
|
|
110,542
|
|
|
Amortization of debt
issuance costs and debt discounts and premiums
|
4,444
|
|
|
3,460
|
|
|
3,238
|
|
|
7,904
|
|
|
6,233
|
|
|
Loss on debt
extinguishment
|
1,868
|
|
|
6,441
|
|
|
—
|
|
|
8,309
|
|
|
382
|
|
|
(Gain) loss on asset
sales
|
(342)
|
|
|
1,199
|
|
|
—
|
|
|
857
|
|
|
—
|
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
14,834
|
|
|
Other
items
|
13,891
|
|
|
6,856
|
|
|
4,745
|
|
|
20,747
|
|
|
12,969
|
|
|
Changes in operating
assets and liabilities:
|
|
Accounts
receivable
|
(29,539)
|
|
|
15,306
|
|
|
(42,370)
|
|
|
(14,233)
|
|
|
(126,720)
|
|
|
Income taxes,
net
|
8,164
|
|
|
3,697
|
|
|
14,837
|
|
|
11,861
|
|
|
30,662
|
|
|
Accounts payable and
accrued expenses
|
117
|
|
|
(25,681)
|
|
|
7,476
|
|
|
(25,564)
|
|
|
(3,987)
|
|
|
Operating lease
right-of-use assets
|
37,495
|
|
|
38,797
|
|
|
37,219
|
|
|
76,292
|
|
|
78,483
|
|
|
Operating lease
liabilities
|
(36,898)
|
|
|
(35,193)
|
|
|
(34,919)
|
|
|
(72,091)
|
|
|
(73,805)
|
|
|
Other assets and
liabilities
|
17,858
|
|
|
(18,939)
|
|
|
26,390
|
|
|
(1,081)
|
|
|
17,617
|
|
Net cash provided
by operating activities
|
574,686
|
|
|
516,830
|
|
|
542,923
|
|
|
1,091,516
|
|
|
964,064
|
|
Cash flows from
investing activities:
|
|
Purchases, sales and
maturities of investments, net
|
(1,341)
|
|
|
(38,940)
|
|
|
(3,063)
|
|
|
(40,281)
|
|
|
(11,842)
|
|
|
Business
acquisitions, net of cash and restricted cash acquired
|
39
|
|
|
(478,287)
|
|
|
(34,143)
|
|
|
(478,248)
|
|
|
(34,143)
|
|
|
Purchases of real
estate
|
(46,194)
|
|
|
(36,373)
|
|
|
(41,715)
|
|
|
(82,567)
|
|
|
(47,436)
|
|
|
Purchases of other
property, plant and equipment
|
(481,948)
|
|
|
(400,941)
|
|
|
(444,171)
|
|
|
(882,889)
|
|
|
(808,138)
|
|
|
Proceeds from asset
sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash used in
investing activities
|
(529,444)
|
|
|
(954,541)
|
|
|
(523,092)
|
|
|
(1,483,985)
|
|
|
(901,559)
|
|
Cash flows from
financing activities:
|
|
Proceeds from
employee equity awards
|
—
|
|
|
30,391
|
|
|
—
|
|
|
30,391
|
|
|
27,593
|
|
|
Payment of dividend
distributions
|
(236,008)
|
|
|
(233,479)
|
|
|
(208,449)
|
|
|
(469,487)
|
|
|
(413,052)
|
|
|
Proceeds from public
offering of common stock, net of offering costs
|
1,683,106
|
|
|
101,792
|
|
|
348,121
|
|
|
1,784,898
|
|
|
1,561,555
|
|
|
Proceeds from
mortgage and loans payable
|
500,790
|
|
|
250,000
|
|
|
—
|
|
|
750,790
|
|
|
—
|
|
|
Proceeds from senior
notes, net of debt discounts
|
2,585,736
|
|
|
—
|
|
|
—
|
|
|
2,585,736
|
|
|
—
|
|
|
Repayment of finance
lease liabilities
|
(23,704)
|
|
|
(18,977)
|
|
|
(11,954)
|
|
|
(42,681)
|
|
|
(43,112)
|
|
|
Repayment of mortgage
and loans payable
|
(770,677)
|
|
|
(18,501)
|
|
|
(17,878)
|
|
|
(789,178)
|
|
|
(36,212)
|
|
|
Repayment of senior
notes
|
(150,000)
|
|
|
(343,711)
|
|
|
(150,000)
|
|
|
(493,711)
|
|
|
(150,000)
|
|
|
Debt extinguishment
costs
|
—
|
|
|
(4,619)
|
|
|
—
|
|
|
(4,619)
|
|
|
—
|
|
|
Debt issuance
costs
|
(26,266)
|
|
|
—
|
|
|
—
|
|
|
(26,266)
|
|
|
—
|
|
Net cash provided
by (used in) financing activities
|
3,562,977
|
|
|
(237,104)
|
|
|
(40,160)
|
|
|
3,325,873
|
|
|
946,772
|
|
Effect of foreign
currency exchange rates on cash, cash equivalents and restricted
cash
|
12,411
|
|
|
(25,287)
|
|
|
2,106
|
|
|
(12,876)
|
|
|
411
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
3,620,630
|
|
|
(700,102)
|
|
|
(18,223)
|
|
|
2,920,528
|
|
|
1,009,688
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
1,186,511
|
|
|
1,886,613
|
|
|
1,655,515
|
|
|
1,886,613
|
|
|
627,604
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
4,807,141
|
|
|
$
|
1,186,511
|
|
|
$
|
1,637,292
|
|
|
$
|
4,807,141
|
|
|
$
|
1,637,292
|
|
Supplemental cash
flow information:
|
Cash paid for
taxes
|
$
|
15,752
|
|
|
$
|
45,324
|
|
|
$
|
32,669
|
|
|
$
|
61,076
|
|
|
$
|
59,693
|
|
Cash paid for
interest
|
$
|
122,669
|
|
|
$
|
125,924
|
|
|
$
|
113,266
|
|
|
$
|
248,593
|
|
|
$
|
259,410
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(negative free cash flow)(1)
|
$
|
46,583
|
|
|
$
|
(398,771)
|
|
|
$
|
22,894
|
|
|
$
|
(352,188)
|
|
|
$
|
74,347
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow (2)
|
$
|
92,738
|
|
|
$
|
115,889
|
|
|
$
|
98,752
|
|
|
$
|
208,627
|
|
|
$
|
155,926
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We define free cash
flow (negative 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
|
$
|
574,686
|
|
|
$
|
516,830
|
|
|
$
|
542,923
|
|
|
$
|
1,091,516
|
|
|
$
|
964,064
|
|
|
Net cash used in
investing activities as presented above
|
(529,444)
|
|
|
(954,541)
|
|
|
(523,092)
|
|
|
(1,483,985)
|
|
|
(901,559)
|
|
|
Purchases, sales and
maturities of investments, net
|
1,341
|
|
|
38,940
|
|
|
3,063
|
|
|
40,281
|
|
|
11,842
|
|
|
Free cash flow
(negative free cash flow)
|
$
|
46,583
|
|
|
$
|
(398,771)
|
|
|
$
|
22,894
|
|
|
$
|
(352,188)
|
|
|
$
|
74,347
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We define adjusted
free cash flow as free cash flow (negative free cash flow) as
defined above, excluding any purchases of real estate and business
acquisitions, net of cash and restricted cash acquired as presented
below:
|
|
Free cash flow
(negative free cash flow) as defined above
|
$
|
46,583
|
|
|
$
|
(398,771)
|
|
|
$
|
22,894
|
|
|
$
|
(352,188)
|
|
|
$
|
74,347
|
|
|
Less business
acquisitions, net of cash and restricted cash acquired
|
(39)
|
|
|
478,287
|
|
|
34,143
|
|
|
478,248
|
|
|
34,143
|
|
|
Less purchases of
real estate
|
46,194
|
|
|
36,373
|
|
|
41,715
|
|
|
82,567
|
|
|
47,436
|
|
|
Adjusted free cash
flow
|
$
|
92,738
|
|
|
$
|
115,889
|
|
|
$
|
98,752
|
|
|
$
|
208,627
|
|
|
$
|
155,926
|
|
EQUINIX,
INC. Non-GAAP Measures and Other Supplemental
Data (in thousands) (unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
|
Recurring
revenues
|
$
|
1,398,138
|
|
|
$
|
1,361,694
|
|
|
$
|
1,306,045
|
|
|
$
|
2,759,832
|
|
|
$
|
2,580,873
|
|
|
Non-recurring
revenues
|
71,983
|
|
|
82,848
|
|
|
78,932
|
|
|
154,831
|
|
|
167,322
|
|
|
Revenues
(1)
|
1,470,121
|
|
|
1,444,542
|
|
|
1,384,977
|
|
|
2,914,663
|
|
|
2,748,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost of revenues
(2)
|
480,946
|
|
|
476,541
|
|
|
460,983
|
|
|
957,487
|
|
|
909,364
|
|
|
Cash gross profit
(3)
|
989,175
|
|
|
968,001
|
|
|
923,994
|
|
|
1,957,176
|
|
|
1,838,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating
expenses (4)(7):
|
|
|
|
|
|
|
|
|
|
Cash sales and
marketing expenses (5)
|
111,007
|
|
|
115,671
|
|
|
95,114
|
|
|
226,678
|
|
|
203,330
|
|
|
Cash general and
administrative expenses (6)
|
158,127
|
|
|
168,120
|
|
|
151,870
|
|
|
326,247
|
|
|
298,336
|
|
|
Total cash
operating expenses (4)(7)
|
269,134
|
|
|
283,791
|
|
|
246,984
|
|
|
552,925
|
|
|
501,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(8)
|
$
|
720,041
|
|
|
$
|
684,210
|
|
|
$
|
677,010
|
|
|
$
|
1,404,251
|
|
|
$
|
1,337,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash gross margins
(9)
|
67
|
%
|
|
67
|
%
|
|
67
|
%
|
|
67
|
%
|
|
67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margins(10)
|
49
|
%
|
|
47
|
%
|
|
49
|
%
|
|
48
|
%
|
|
49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
flow-through rate (11)
|
140
|
%
|
|
30
|
%
|
|
77
|
%
|
|
53
|
%
|
|
70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
(12)
|
$
|
356,946
|
|
|
$
|
343,754
|
|
|
$
|
352,973
|
|
|
$
|
700,700
|
|
|
$
|
679,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
(13)(14)
|
$
|
557,793
|
|
|
$
|
534,705
|
|
|
$
|
497,647
|
|
|
$
|
1,092,498
|
|
|
$
|
985,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic FFO per
share (15)
|
$
|
4.09
|
|
|
$
|
4.02
|
|
|
$
|
4.18
|
|
|
$
|
8.11
|
|
|
$
|
8.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted FFO per
share (15)
|
$
|
4.06
|
|
|
$
|
3.99
|
|
|
$
|
4.16
|
|
|
$
|
8.05
|
|
|
$
|
8.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic AFFO per
share (15)
|
$
|
6.39
|
|
|
$
|
6.25
|
|
|
$
|
5.90
|
|
|
$
|
12.64
|
|
|
$
|
11.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted AFFO per
share (15)
|
$
|
6.35
|
|
|
$
|
6.21
|
|
|
$
|
5.87
|
|
|
$
|
12.55
|
|
|
$
|
11.81
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The geographic split
of our revenues on a services basis is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
447,498
|
|
|
$
|
450,954
|
|
|
$
|
444,086
|
|
|
$
|
898,452
|
|
|
$
|
884,067
|
|
|
Interconnection
|
153,387
|
|
|
150,929
|
|
|
142,460
|
|
|
304,316
|
|
|
281,023
|
|
|
Managed
infrastructure
|
28,889
|
|
|
25,529
|
|
|
22,908
|
|
|
54,418
|
|
|
44,695
|
|
|
Other
|
5,081
|
|
|
5,220
|
|
|
5,352
|
|
|
10,301
|
|
|
11,331
|
|
|
Recurring
revenues
|
634,855
|
|
|
632,632
|
|
|
614,806
|
|
|
1,267,487
|
|
|
1,221,116
|
|
|
Non-recurring
revenues
|
26,564
|
|
|
29,273
|
|
|
29,614
|
|
|
55,837
|
|
|
67,670
|
|
|
Revenues
|
$
|
661,419
|
|
|
$
|
661,905
|
|
|
$
|
644,420
|
|
|
$
|
1,323,324
|
|
|
$
|
1,288,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
381,144
|
|
|
$
|
362,330
|
|
|
$
|
347,795
|
|
|
$
|
743,474
|
|
|
$
|
678,920
|
|
|
Interconnection
|
50,904
|
|
|
48,541
|
|
|
38,614
|
|
|
99,445
|
|
|
76,139
|
|
|
Managed
infrastructure
|
29,012
|
|
|
30,137
|
|
|
28,397
|
|
|
59,149
|
|
|
57,485
|
|
|
Other
|
6,130
|
|
|
2,466
|
|
|
2,275
|
|
|
8,596
|
|
|
4,774
|
|
|
Recurring
revenues
|
467,190
|
|
|
443,474
|
|
|
417,081
|
|
|
910,664
|
|
|
817,318
|
|
|
Non-recurring
revenues
|
20,900
|
|
|
35,435
|
|
|
32,774
|
|
|
56,335
|
|
|
67,197
|
|
|
Revenues
|
$
|
488,090
|
|
|
$
|
478,909
|
|
|
$
|
449,855
|
|
|
$
|
966,999
|
|
|
$
|
884,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
228,803
|
|
|
$
|
221,093
|
|
|
$
|
213,734
|
|
|
$
|
449,896
|
|
|
$
|
423,399
|
|
|
Interconnection
|
45,140
|
|
|
42,671
|
|
|
37,957
|
|
|
87,811
|
|
|
74,653
|
|
|
Managed
infrastructure
|
22,150
|
|
|
21,824
|
|
|
22,467
|
|
|
43,974
|
|
|
44,387
|
|
|
Recurring
revenues
|
296,093
|
|
|
285,588
|
|
|
274,158
|
|
|
581,681
|
|
|
542,439
|
|
|
Non-recurring
revenues
|
24,519
|
|
|
18,140
|
|
|
16,544
|
|
|
42,659
|
|
|
32,455
|
|
|
Revenues
|
$
|
320,612
|
|
|
$
|
303,728
|
|
|
$
|
290,702
|
|
|
$
|
624,340
|
|
|
$
|
574,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
1,057,445
|
|
|
$
|
1,034,377
|
|
|
$
|
1,005,615
|
|
|
$
|
2,091,822
|
|
|
$
|
1,986,386
|
|
|
Interconnection
|
249,431
|
|
|
242,141
|
|
|
219,031
|
|
|
491,572
|
|
|
431,815
|
|
|
Managed
infrastructure
|
80,051
|
|
|
77,490
|
|
|
73,772
|
|
|
157,541
|
|
|
146,567
|
|
|
Other
|
11,211
|
|
|
7,686
|
|
|
7,627
|
|
|
18,897
|
|
|
16,105
|
|
|
Recurring
revenues
|
1,398,138
|
|
|
1,361,694
|
|
|
1,306,045
|
|
|
2,759,832
|
|
|
2,580,873
|
|
|
Non-recurring
revenues
|
71,983
|
|
|
82,848
|
|
|
78,932
|
|
|
154,831
|
|
|
167,322
|
|
|
Revenues
|
$
|
1,470,121
|
|
|
$
|
1,444,542
|
|
|
$
|
1,384,977
|
|
|
$
|
2,914,663
|
|
|
$
|
2,748,195
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
$
|
739,344
|
|
|
$
|
736,282
|
|
|
$
|
698,179
|
|
|
$
|
1,475,626
|
|
|
$
|
1,380,209
|
|
|
Depreciation,
amortization and accretion expense
|
(250,743)
|
|
|
(250,398)
|
|
|
(230,696)
|
|
|
(501,141)
|
|
|
(459,333)
|
|
|
Stock-based
compensation expense
|
(7,655)
|
|
|
(9,343)
|
|
|
(6,500)
|
|
|
(16,998)
|
|
|
(11,512)
|
|
|
Cash cost of
revenues
|
$
|
480,946
|
|
|
$
|
476,541
|
|
|
$
|
460,983
|
|
|
$
|
957,487
|
|
|
$
|
909,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The geographic split
of our cash cost of revenues is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas cash cost of
revenues
|
$
|
194,467
|
|
|
$
|
185,233
|
|
|
$
|
182,920
|
|
|
$
|
379,700
|
|
|
$
|
362,555
|
|
|
EMEA cash cost of
revenues
|
177,558
|
|
|
187,248
|
|
|
179,347
|
|
|
364,806
|
|
|
352,548
|
|
|
Asia-Pacific cash
cost of revenues
|
108,921
|
|
|
104,060
|
|
|
98,716
|
|
|
212,981
|
|
|
194,261
|
|
|
Cash cost of
revenues
|
$
|
480,946
|
|
|
$
|
476,541
|
|
|
$
|
460,983
|
|
|
$
|
957,487
|
|
|
$
|
909,364
|
|
|
|
|
|
|
(3)
|
We define cash gross
profit as revenues less cash cost of revenues (as defined
above).
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
We define cash
operating expense as selling, general, and administrative expense
less depreciation, amortization, and stock-based compensation. We
also refer to cash operating expense as cash selling, general and
administrative expense or "cash SG&A".
|
|
|
|
|
|
|
Selling, general, and
administrative expense
|
$
|
435,014
|
|
|
$
|
442,047
|
|
|
$
|
391,857
|
|
|
$
|
877,061
|
|
|
$
|
776,618
|
|
|
Depreciation and
amortization expense
|
(97,691)
|
|
|
(87,033)
|
|
|
(89,854)
|
|
|
(184,724)
|
|
|
(175,922)
|
|
|
Stock-based
compensation expense
|
(68,189)
|
|
|
(71,223)
|
|
|
(55,019)
|
|
|
(139,412)
|
|
|
(99,030)
|
|
|
Cash operating
expense
|
$
|
269,134
|
|
|
$
|
283,791
|
|
|
$
|
246,984
|
|
|
$
|
552,925
|
|
|
$
|
501,666
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
We define cash sales
and marketing expense as sales and marketing expense less
depreciation, amortization and stock-based compensation as
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expense
|
$
|
178,124
|
|
|
$
|
180,450
|
|
|
$
|
159,201
|
|
|
$
|
358,574
|
|
|
$
|
328,916
|
|
|
Depreciation and
amortization expense
|
(48,902)
|
|
|
(46,234)
|
|
|
(48,930)
|
|
|
(95,136)
|
|
|
(97,128)
|
|
|
Stock-based
compensation expense
|
(18,215)
|
|
|
(18,545)
|
|
|
(15,157)
|
|
|
(36,760)
|
|
|
(28,458)
|
|
|
Cash sales and
marketing expense
|
$
|
111,007
|
|
|
$
|
115,671
|
|
|
$
|
95,114
|
|
|
$
|
226,678
|
|
|
$
|
203,330
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
We define cash
general and administrative expense as general and administrative
expense less depreciation, amortization and stock-based
compensation as presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
$
|
256,890
|
|
|
$
|
261,597
|
|
|
$
|
232,656
|
|
|
$
|
518,487
|
|
|
$
|
447,702
|
|
|
Depreciation and
amortization expense
|
(48,789)
|
|
|
(40,799)
|
|
|
(40,924)
|
|
|
(89,588)
|
|
|
(78,794)
|
|
|
Stock-based
compensation expense
|
(49,974)
|
|
|
(52,678)
|
|
|
(39,862)
|
|
|
(102,652)
|
|
|
(70,572)
|
|
|
Cash general and
administrative expense
|
$
|
158,127
|
|
|
$
|
168,120
|
|
|
$
|
151,870
|
|
|
$
|
326,247
|
|
|
$
|
298,336
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
The geographic split
of our cash operating expense, or cash SG&A, as defined above,
is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas cash
SG&A
|
$
|
164,845
|
|
|
$
|
183,059
|
|
|
$
|
152,448
|
|
|
$
|
347,904
|
|
|
$
|
309,341
|
|
|
EMEA cash
SG&A
|
66,935
|
|
|
61,503
|
|
|
60,863
|
|
|
128,438
|
|
|
123,250
|
|
|
Asia-Pacific cash
SG&A
|
37,354
|
|
|
39,229
|
|
|
33,673
|
|
|
76,583
|
|
|
69,075
|
|
|
Cash
SG&A
|
$
|
269,134
|
|
|
$
|
283,791
|
|
|
$
|
246,984
|
|
|
$
|
552,925
|
|
|
$
|
501,666
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
We define adjusted
EBITDA as income from operations excluding depreciation,
amortization, accretion, stock-based compensation,
restructuring charges, impairment charges, transaction costs and
gain or loss on asset sales as presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
|
282,488
|
|
|
$
|
253,484
|
|
|
$
|
291,781
|
|
|
$
|
535,972
|
|
|
$
|
571,289
|
|
|
Depreciation,
amortization and accretion expense
|
348,434
|
|
|
337,431
|
|
|
320,550
|
|
|
685,865
|
|
|
635,255
|
|
|
Stock-based
compensation expense
|
75,844
|
|
|
80,566
|
|
|
61,519
|
|
|
156,410
|
|
|
110,542
|
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
14,834
|
|
|
Transaction
costs
|
13,617
|
|
|
11,530
|
|
|
2,774
|
|
|
25,147
|
|
|
5,245
|
|
|
(Gain) loss on asset
sales
|
(342)
|
|
|
1,199
|
|
|
—
|
|
|
857
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
720,041
|
|
|
$
|
684,210
|
|
|
$
|
677,010
|
|
|
$
|
1,404,251
|
|
|
$
|
1,337,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The geographic split
of our adjusted EBITDA is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas income from
operations
|
$
|
58,423
|
|
|
$
|
47,308
|
|
|
$
|
99,195
|
|
|
$
|
105,731
|
|
|
$
|
189,206
|
|
|
Americas
depreciation, amortization and accretion expense
|
182,204
|
|
|
171,439
|
|
|
167,614
|
|
|
353,643
|
|
|
334,750
|
|
|
Americas stock-based
compensation expense
|
56,326
|
|
|
62,689
|
|
|
42,676
|
|
|
119,015
|
|
|
76,847
|
|
|
Americas impairment
charges
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
14,834
|
|
|
Americas transaction
costs
|
5,575
|
|
|
10,978
|
|
|
(819)
|
|
|
16,553
|
|
|
1,253
|
|
|
Americas (gain) loss
on asset sales
|
(421)
|
|
|
1,199
|
|
|
—
|
|
|
778
|
|
|
—
|
|
|
Americas adjusted
EBITDA
|
$
|
302,107
|
|
|
$
|
293,613
|
|
|
$
|
309,052
|
|
|
$
|
595,720
|
|
|
$
|
616,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA income from
operations
|
$
|
138,154
|
|
|
$
|
126,004
|
|
|
$
|
106,555
|
|
|
$
|
264,158
|
|
|
$
|
211,562
|
|
|
EMEA depreciation,
amortization and accretion expense
|
92,953
|
|
|
92,740
|
|
|
88,109
|
|
|
185,693
|
|
|
172,656
|
|
|
EMEA stock-based
compensation expense
|
12,240
|
|
|
11,002
|
|
|
11,353
|
|
|
23,242
|
|
|
20,216
|
|
|
EMEA transaction
costs
|
171
|
|
|
412
|
|
|
3,628
|
|
|
583
|
|
|
4,283
|
|
|
EMEA loss on asset
sales
|
79
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
EMEA adjusted
EBITDA
|
$
|
243,597
|
|
|
$
|
230,158
|
|
|
$
|
209,645
|
|
|
$
|
473,755
|
|
|
$
|
408,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific income
from operations
|
$
|
85,911
|
|
|
$
|
80,172
|
|
|
$
|
86,031
|
|
|
$
|
166,083
|
|
|
$
|
170,521
|
|
|
Asia-Pacific
depreciation, amortization and accretion expense
|
73,277
|
|
|
73,252
|
|
|
64,827
|
|
|
146,529
|
|
|
127,849
|
|
|
Asia-Pacific
stock-based compensation expense
|
7,278
|
|
|
6,875
|
|
|
7,490
|
|
|
14,153
|
|
|
13,479
|
|
|
Asia-Pacific
transaction costs
|
7,871
|
|
|
140
|
|
|
(35)
|
|
|
8,011
|
|
|
(291)
|
|
|
Asia-Pacific adjusted
EBITDA
|
$
|
174,337
|
|
|
$
|
160,439
|
|
|
$
|
158,313
|
|
|
$
|
334,776
|
|
|
$
|
311,558
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
71
|
%
|
|
72
|
%
|
|
72
|
%
|
|
71
|
%
|
|
72
|
%
|
|
EMEA cash gross
margins
|
64
|
%
|
|
61
|
%
|
|
60
|
%
|
|
62
|
%
|
|
60
|
%
|
|
Asia-Pacific cash
gross margins
|
66
|
%
|
|
66
|
%
|
|
66
|
%
|
|
66
|
%
|
|
66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(10)
|
We define adjusted
EBITDA margins as adjusted EBITDA divided by revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas adjusted
EBITDA margins
|
46
|
%
|
|
44
|
%
|
|
48
|
%
|
|
45
|
%
|
|
48
|
%
|
|
EMEA adjusted EBITDA
margins
|
50
|
%
|
|
48
|
%
|
|
47
|
%
|
|
49
|
%
|
|
46
|
%
|
|
Asia-Pacific adjusted
EBITDA margins
|
54
|
%
|
|
53
|
%
|
|
54
|
%
|
|
54
|
%
|
|
54
|
%
|
|
|
|
|
|
(11)
|
We define adjusted
EBITDA flow-through rate as incremental adjusted EBITDA growth
divided by incremental revenue growth as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
current period
|
$
|
720,041
|
|
|
$
|
684,210
|
|
|
$
|
677,010
|
|
|
$
|
1,404,251
|
|
|
$
|
1,337,165
|
|
|
Less adjusted EBITDA
- prior period
|
(684,210)
|
|
|
(675,860)
|
|
|
(660,155)
|
|
|
(1,350,562)
|
|
|
(1,229,721)
|
|
|
Adjusted EBITDA
growth
|
$
|
35,831
|
|
|
$
|
8,350
|
|
|
$
|
16,855
|
|
|
$
|
53,689
|
|
|
$
|
107,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - current
period
|
$
|
1,470,121
|
|
|
$
|
1,444,542
|
|
|
$
|
1,384,977
|
|
|
$
|
2,914,663
|
|
|
$
|
2,748,195
|
|
|
Less revenues - prior
period
|
(1,444,542)
|
|
|
(1,417,135)
|
|
|
(1,363,218)
|
|
|
(2,813,945)
|
|
|
(2,593,834)
|
|
|
Revenue
growth
|
$
|
25,579
|
|
|
$
|
27,407
|
|
|
$
|
21,759
|
|
|
$
|
100,718
|
|
|
$
|
154,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
flow-through rate
|
140
|
%
|
|
30
|
%
|
|
77
|
%
|
|
53
|
%
|
|
70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
FFO is defined as net
income or loss, excluding gain or loss 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
|
$
|
133,350
|
|
|
$
|
118,957
|
|
|
$
|
143,852
|
|
|
$
|
252,307
|
|
|
$
|
261,599
|
|
|
Net (income) loss
attributable to non-controlling interests
|
(46)
|
|
|
(165)
|
|
|
(325)
|
|
|
(211)
|
|
|
6
|
|
|
Net income
attributable to Equinix
|
133,304
|
|
|
118,792
|
|
|
143,527
|
|
|
252,096
|
|
|
261,605
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Real estate
depreciation
|
222,613
|
|
|
221,787
|
|
|
209,103
|
|
|
444,400
|
|
|
414,752
|
|
|
(Gain) loss on
disposition of real estate property
|
376
|
|
|
2,506
|
|
|
343
|
|
|
2,882
|
|
|
2,689
|
|
|
Adjustments for FFO
from unconsolidated joint ventures
|
653
|
|
|
669
|
|
|
—
|
|
|
1,322
|
|
|
—
|
|
|
FFO attributable to
common shareholders
|
$
|
356,946
|
|
|
$
|
343,754
|
|
|
$
|
352,973
|
|
|
$
|
700,700
|
|
|
$
|
679,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13)
|
AFFO is defined as
FFO, excluding depreciation and amortization expense on non-real
estate assets, accretion, stock-based compensation,
restructuring charges, impairment charges, transaction costs, an
installation revenue adjustment, a straight-line rent expense
adjustment, a contract cost adjustment, amortization of deferred
financing costs and debt discounts and premiums, gain or loss on
debt extinguishment, an income tax expense adjustment, net
income or loss from discontinued operations, net of tax, recurring
capital expenditures and adjustments from FFO to AFFO
for unconsolidated joint ventures' and non-controlling
interests' share of these items.
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to
common shareholders
|
$
|
356,946
|
|
|
$
|
343,754
|
|
|
$
|
352,973
|
|
|
$
|
700,700
|
|
|
$
|
679,046
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Installation revenue
adjustment
|
3,649
|
|
|
(3,481)
|
|
|
1,492
|
|
|
168
|
|
|
2,521
|
|
|
Straight-line rent
expense adjustment
|
2,395
|
|
|
1,806
|
|
|
2,300
|
|
|
4,201
|
|
|
4,678
|
|
|
Amortization of
deferred financing costs and debt discounts and premiums
|
4,444
|
|
|
3,460
|
|
|
3,238
|
|
|
7,904
|
|
|
6,233
|
|
|
Contract cost
adjustment
|
(5,307)
|
|
|
(10,434)
|
|
|
(12,348)
|
|
|
(15,741)
|
|
|
(19,126)
|
|
|
Stock-based
compensation expense
|
75,844
|
|
|
80,566
|
|
|
61,519
|
|
|
156,410
|
|
|
110,542
|
|
|
Non-real estate
depreciation expense
|
76,618
|
|
|
65,591
|
|
|
60,904
|
|
|
142,209
|
|
|
118,898
|
|
|
Amortization
expense
|
49,362
|
|
|
48,491
|
|
|
49,217
|
|
|
97,853
|
|
|
98,752
|
|
|
Accretion expense
(adjustment)
|
(159)
|
|
|
1,562
|
|
|
1,326
|
|
|
1,403
|
|
|
2,853
|
|
|
Recurring capital
expenditures
|
(29,996)
|
|
|
(17,868)
|
|
|
(36,726)
|
|
|
(47,864)
|
|
|
(57,673)
|
|
|
Loss on debt
extinguishment
|
1,868
|
|
|
6,441
|
|
|
—
|
|
|
8,309
|
|
|
382
|
|
|
Transaction
costs
|
13,617
|
|
|
11,530
|
|
|
2,774
|
|
|
25,147
|
|
|
5,245
|
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
14,834
|
|
|
Income tax expense
adjustment
|
8,070
|
|
|
2,833
|
|
|
10,592
|
|
|
10,903
|
|
|
18,582
|
|
|
Adjustments for AFFO
from unconsolidated joint ventures
|
442
|
|
|
454
|
|
|
—
|
|
|
896
|
|
|
—
|
|
|
AFFO attributable to
common shareholders
|
$
|
557,793
|
|
|
$
|
534,705
|
|
|
$
|
497,647
|
|
|
$
|
1,092,498
|
|
|
$
|
985,767
|
|
|
|
|
|
|
|
|
|
|
|
|
(14)
|
Following is
how we reconcile from adjusted EBITDA to AFFO:
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
720,041
|
|
|
$
|
684,210
|
|
|
$
|
677,010
|
|
|
$
|
1,404,251
|
|
|
$
|
1,337,165
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
(106,795)
|
|
|
(103,065)
|
|
|
(112,785)
|
|
|
(209,860)
|
|
|
(231,429)
|
|
|
Amortization of
deferred financing costs and debt discounts and premiums
|
4,444
|
|
|
3,460
|
|
|
3,238
|
|
|
7,904
|
|
|
6,233
|
|
|
Income tax
expense
|
(44,753)
|
|
|
(30,191)
|
|
|
(47,324)
|
|
|
(74,944)
|
|
|
(89,893)
|
|
|
Income tax expense
adjustment
|
8,070
|
|
|
2,833
|
|
|
10,592
|
|
|
10,903
|
|
|
18,582
|
|
|
Straight-line rent
expense adjustment
|
2,395
|
|
|
1,806
|
|
|
2,300
|
|
|
4,201
|
|
|
4,678
|
|
|
Contract cost
adjustment
|
(5,307)
|
|
|
(10,434)
|
|
|
(12,348)
|
|
|
(15,741)
|
|
|
(19,126)
|
|
|
Installation revenue
adjustment
|
3,649
|
|
|
(3,481)
|
|
|
1,492
|
|
|
168
|
|
|
2,521
|
|
|
Recurring capital
expenditures
|
(29,996)
|
|
|
(17,868)
|
|
|
(36,726)
|
|
|
(47,864)
|
|
|
(57,673)
|
|
|
Other income
(expense)
|
4,278
|
|
|
5,170
|
|
|
12,180
|
|
|
9,448
|
|
|
12,014
|
|
|
(Gain) loss on
disposition of real estate property
|
376
|
|
|
2,506
|
|
|
343
|
|
|
2,882
|
|
|
2,689
|
|
|
Adjustments for
unconsolidated JVs' and non-controlling interests
|
1,049
|
|
|
958
|
|
|
(325)
|
|
|
2,007
|
|
|
6
|
|
|
Adjustment for gain
(loss) on asset sales
|
342
|
|
|
(1,199)
|
|
|
—
|
|
|
(857)
|
|
|
—
|
|
|
AFFO attributable to
common shareholders
|
$
|
557,793
|
|
|
$
|
534,705
|
|
|
$
|
497,647
|
|
|
$
|
1,092,498
|
|
|
$
|
985,767
|
|
|
|
|
|
|
|
|
|
|
|
|
(15)
|
The shares used in
the computation of basic and diluted FFO and AFFO per share
attributable to Equinix is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income per share, FFO per share and AFFO per
share
|
87,303
|
|
|
85,551
|
|
|
84,399
|
|
|
86,427
|
|
|
83,114
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
Employee equity
awards
|
598
|
|
|
593
|
|
|
368
|
|
|
638
|
|
|
357
|
|
|
Shares used in
computing diluted net income per share, FFO per share and AFFO per
share
|
87,901
|
|
|
86,144
|
|
|
84,767
|
|
|
87,065
|
|
|
83,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic FFO per
share
|
$
|
4.09
|
|
|
$
|
4.02
|
|
|
$
|
4.18
|
|
|
$
|
8.11
|
|
|
$
|
8.17
|
|
|
Diluted FFO per
share
|
$
|
4.06
|
|
|
$
|
3.99
|
|
|
$
|
4.16
|
|
|
$
|
8.05
|
|
|
$
|
8.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic AFFO per
share
|
$
|
6.39
|
|
|
$
|
6.25
|
|
|
$
|
5.90
|
|
|
$
|
12.64
|
|
|
$
|
11.86
|
|
|
Diluted AFFO per
share
|
$
|
6.35
|
|
|
$
|
6.21
|
|
|
$
|
5.87
|
|
|
$
|
12.55
|
|
|
$
|
11.81
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/equinix-reports-second-quarter-2020-results-301102396.html
SOURCE Equinix, Inc.