REDWOOD CITY, Calif.,
April 26, 2017 /PRNewswire/ --
- Record quarterly bookings in Europe and the network vertical
- Added 11 Fortune 500 customers including Progressive
Corporation and Eli Lilly and Company
- Customer deployments across multiple metros increase to 83% of
total recurring revenue, demonstrating the value of Equinix's
global platform
Equinix, Inc. (Nasdaq: EQIX), the global interconnection and
data center company, today reported quarterly results for the
quarter ended March 31, 2017. 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.
First Quarter 2017 Results Summary
- Revenues from continuing operations
-
- $950 million, a 1% increase over
the previous quarter
- Operating Income
-
- $167 million, a 9% decrease from
the previous quarter
- Adjusted EBITDA
-
- $428 million, a 45% adjusted
EBITDA margin
- Includes $12 million of
integration costs
- Net Income from Continuing Operations
-
- AFFO
-
- $304 million, a 4% increase over
the previous quarter
2017 Annual Guidance Summary
- Revenues from continuing operations
-
- >$3,976 million, a 10.1%
increase over the previous year; a normalized and constant currency
growth rate of greater than 11.1%
- Adjusted EBITDA
-
- >$1,860 million or a 46.8%
adjusted EBITDA margin
- Assumes $30 million of
integration costs for acquisitions
- AFFO
-
- >$1,214 million, a 13%
increase over the previous year
- Assumes $30 million of
integration costs for acquisitions
- Assumes $87 million of
incremental interest expense attributed to the Verizon data center
acquisition funding
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.
Quote
Steve Smith,
President and CEO, Equinix:
"Equinix is off to a strong
start in 2017 with our 57th quarter of consecutive revenue growth
and continued momentum in capturing and curating powerful digital
ecosystems at global scale. We are adding new enterprises at a
solid pace, as enterprises adopt hybrid and multi-cloud as their IT
architecture of choice. We have also made great progress
towards our $3.6 billion acquisition
of the portfolio of 29 data centers from Verizon in the U.S. and
Latin America, and we remain
highly confident that this transaction will create significant
value for both our customers and our shareholders, strengthening
our global platform and delivering AFFO per share accretion on day
one, excluding transaction and integration costs."
Business Highlights
- As Equinix expects to complete the transaction to acquire 29
data centers from Verizon in Q2, it also continues to invest in
organic expansion, with 20 announced expansion projects currently
underway. In Q1, Equinix opened a new IBX data center in São Paulo,
Brazil (SP3), and today Equinix announced new expansions in
London, Paris and Sydney totaling $145
million of capital expenditures. The global reach of Equinix
continues to attract companies seeking to interconnect their IT
infrastructure closer to the digital edge, and in Q1 customer
deployments across multiple metros of Platform EquinixTM
increased to 83% of total recurring revenue.
- The enterprise vertical remained the fastest growing, with
recurring revenue surpassing $100
million in Q1, as enterprises re-architect their
infrastructure to directly and securely interconnect their people,
locations, clouds and data at the digital edge. Q1 was also a
record quarter in terms of new enterprise wins, and customer wins
included 11 Fortune 500 customers, among them Progressive
Corporation, one of the largest providers of car insurance in
the United States, and Eli Lilly
and Company, a global pharmaceutical company.
- Equinix continues to deliver strong results in the network
vertical with record bookings led by the major telecommunication
providers which are expanding capacity and capabilities for digital
services such as OTT, cloud and security, as well as refreshing
deployments with upgraded optical technologies. Network
customer expansions in Q1 included a top tier global provider
building out its new digital services, and a global carrier that is
making major investments in EMEA for their core backbone
network.
- Building on a foundation of innovative solutions for customers,
Equinix launched IBX SmartView™ in Q1. This new data center
monitoring software platform provides unprecedented visibility into
distributed infrastructure for enterprises moving their IT
operations to the digital edge. It enables precise and
real-time monitoring and forecasting of power, mechanical and
environmental conditions across a customer's global footprint
across Platform Equinix.
Business Outlook
For the second quarter of 2017, the Company expects revenues to
range between $976 and $982 million,
an increase of 3.1% quarter over quarter at the midpoint, or a
normalized and constant currency growth rate of 2.6%. This guidance
includes a foreign currency benefit of $5
million when compared to the average FX rates in Q1
2017. Cash gross margins are expected to approximate
67-68%. Cash selling, general and administrative expenses are
expected to range between $206 and $212
million. Adjusted EBITDA is expected to range between
$447 and $453 million, which includes
a $4 million foreign currency benefit
when compared to the average FX rates in Q1 2017 and $10 million of integration costs from the
Telecity and Bit-isle acquisitions. Capital expenditures are
expected to range between $331 and $351
million, which includes approximately $41 million of recurring capital
expenditures.
For the full year of 2017, total revenues are expected to be
greater than $3,976 million, an
increase of 10.1% year over year, or a normalized and constant
currency growth rate of greater than 11.1%. This guidance includes
a foreign currency benefit of $40
million when compared to prior Equinix guidance rates, and
has been normalized for the Telecity January
15th close impact and other acquisition related activities.
Total year cash gross margins are expected to approximate
67-68%. Cash selling, general and administrative expenses are
expected to range between $810 and $830
million. Adjusted EBITDA is expected to be greater than
$1,860 million, an increase of 12.2%
year over year, or a normalized and constant currency growth rate
of greater than 11.3%. This guidance includes $14 million of foreign currency benefit on
adjusted EBITDA when compared to prior Equinix guidance rates and
an expected $30 million in
integration costs. AFFO is expected to be greater than $1,214 million, including $87 million in interest expense related to the
pending Verizon data center acquisition, but does not yet include
the operating results attributed to the acquisition. Capital
expenditures are expected to range between $1,100 and $1,200 million, including
approximately $160 and $165 million
of recurring capital expenditures and $940
and $1,035 million of non-recurring capital
expenditures.
The U.S. dollar exchange rates used for 2017 guidance, taking
into consideration the impact of our foreign currency hedges, have
been updated to $1.09 to the Euro,
$1.40 to the Pound, S$1.40 to the U.S. dollar, ¥111.11 to the
U.S. dollar and R$3.13 to the U.S.
dollar. The 2017 global revenue breakdown by currency for the Euro,
Pound, Singapore Dollar, Japanese Yen and Brazilian Real is 19%,
10%, 7%, 7% and 3%, 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, amortization of deferred financing costs, gains
(losses) on debt extinguishment, an income tax expense adjustment,
recurring capital expenditures and adjustments for unconsolidated
joint ventures' and non-controlling interests' share of these
items.
Q1 2017 Results Conference Call and Replay
Information
Equinix will discuss its quarterly results for the period ended
March 31, 2017, along with its future outlook, in its
quarterly conference call on Wednesday, April 26, 2017, 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 Tuesday, August 1, 2017, by
dialing 203-369-1016 and referencing the passcode 2017. In
addition, the webcast will be available at
www.equinix.com/investors. No password is required for the
webcast.
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 Equinix's Investor Relations website at
www.equinix.com/investors.
Additional Resources
- Q1 2017 financial earnings press release (PDF)
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 41 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.
Equinix provides normalized and constant currency growth rates,
which are calculated to adjust for acquisitions, dispositions,
integration costs and foreign currency.
Equinix presents adjusted EBITDA, which is a non-GAAP financial
measure. Adjusted EBITDA represents income or loss from operations
plus depreciation, amortization, accretion, stock-based
compensation expense, restructuring charges, impairment charges,
acquisition costs and gains 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, acquisition costs and gains 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 center, and do
not reflect its current or future cash spending levels to support
its business. Its IBX centers are long-lived assets, and have an
economic life greater than 10 years. The construction costs of an
IBX 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 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 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 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, the timing, size and nature of equity awards. As such,
Equinix and many investors and analysts, exclude this 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 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 gains on asset sales as it represents profit
that is not meaningful in evaluating the current or future
operating performance. Finally, Equinix excludes acquisition costs
from its non-GAAP financial measures to allow more comparable
comparisons of the financial results to the historical operations.
The acquisition costs relate to costs Equinix incurs in connection
with business combinations. 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 acquisitions. Management believes items
such as restructuring charges, impairment charges, acquisition
costs and gains 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"), 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, an income tax expense adjustment,
recurring capital expenditures, net income (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 acquisition costs 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 its debt
financings that have no current or future cash obligations. Equinix
excludes gains (losses) 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 centers or other assets that are
required to support current revenues. Equinix also excludes net
income (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 financials
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 (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, the challenges of acquiring, operating and
constructing IBX data 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,
2017
|
|
December 31,
2016
|
|
March 31,
2016
|
Recurring
revenues
|
$
|
898,440
|
|
|
$
|
892,442
|
|
|
$
|
796,620
|
|
Non-recurring
revenues
|
51,085
|
|
|
50,205
|
|
|
47,536
|
|
Revenues
|
949,525
|
|
|
942,647
|
|
|
844,156
|
|
Cost of
revenues
|
468,961
|
|
|
465,921
|
|
|
427,680
|
|
Gross
profit
|
480,564
|
|
|
476,726
|
|
|
416,476
|
|
Operating
expenses:
|
|
|
|
|
|
Sales and
marketing
|
128,927
|
|
|
113,384
|
|
|
106,590
|
|
General and
administrative
|
181,399
|
|
|
178,956
|
|
|
165,904
|
|
Acquisition
costs
|
3,025
|
|
|
(440)
|
|
|
36,536
|
|
(Gain) loss on asset
sales
|
—
|
|
|
371
|
|
|
(5,242)
|
|
Total operating
expenses
|
313,351
|
|
|
292,271
|
|
|
303,788
|
|
Income from
continuing operations
|
167,213
|
|
|
184,455
|
|
|
112,688
|
|
Interest and other
income (expense):
|
|
|
|
|
|
Interest
income
|
3,092
|
|
|
948
|
|
|
925
|
|
Interest
expense
|
(111,684)
|
|
|
(98,761)
|
|
|
(100,863)
|
|
Other income
(expense)
|
337
|
|
|
(1,707)
|
|
|
(60,710)
|
|
Loss on debt
extinguishment
|
(3,503)
|
|
|
(1,777)
|
|
|
—
|
|
Total interest and
other, net
|
(111,758)
|
|
|
(101,297)
|
|
|
(160,648)
|
|
Income (loss) from
continuing operations before income taxes
|
55,455
|
|
|
83,158
|
|
|
(47,960)
|
|
Income tax benefit
(expense)
|
(13,393)
|
|
|
(19,494)
|
|
|
10,633
|
|
Net income (loss)
from continuing operations
|
42,062
|
|
|
63,664
|
|
|
(37,327)
|
|
Net income (loss)
from discontinued operations, net of tax
|
—
|
|
|
(1,914)
|
|
|
6,216
|
|
Net income
(loss)
|
$
|
42,062
|
|
|
$
|
61,750
|
|
|
$
|
(31,111)
|
|
Net income (loss)
per share:
|
|
|
|
|
|
Basic net income
(loss) per share from continuing operations
|
$
|
0.58
|
|
|
$
|
0.89
|
|
|
$
|
(0.55)
|
|
Basic net income
(loss) per share from discontinued operations
|
—
|
|
|
(0.03)
|
|
|
0.09
|
|
Basic net income
(loss) per share
|
$
|
0.58
|
|
|
$
|
0.86
|
|
|
$
|
(0.46)
|
|
Diluted net income
(loss) per share from continuing operations
|
$
|
0.57
|
|
|
$
|
0.88
|
|
|
$
|
(0.55)
|
|
Diluted net income
(loss) per share from discontinued operations
|
—
|
|
|
(0.02)
|
|
|
0.09
|
|
Diluted net income
(loss) per share
|
$
|
0.57
|
|
|
$
|
0.86
|
|
|
$
|
(0.46)
|
|
Shares used in
computing basic net income per share
|
72,773
|
|
|
71,389
|
|
|
68,132
|
|
Shares used in
computing diluted net income per share
|
73,367
|
|
|
71,959
|
|
|
68,132
|
|
|
|
|
|
|
|
EQUINIX,
INC.
|
Condensed
Consolidated Statements of Comprehensive Income
(Loss)
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2016
|
Net income
(loss)
|
$
|
42,062
|
|
|
$
|
61,750
|
|
|
$
|
(31,111)
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
Foreign currency
translation adjustment ("CTA") gain (loss)
|
106,938
|
|
|
(292,355)
|
|
|
115,899
|
|
Unrealized loss on
available-for-sale securities
|
(265)
|
|
|
(133)
|
|
|
(304)
|
|
Unrealized gain
(loss) on cash flow hedges
|
(11,727)
|
|
|
15,762
|
|
|
(6,784)
|
|
Net investment hedge
CTA gain (loss)
|
(28,551)
|
|
|
41,342
|
|
|
(16,312)
|
|
Net actuarial gain on
defined benefit plans
|
11
|
|
|
11
|
|
|
6
|
|
Other comprehensive
income (loss), net of tax:
|
66,406
|
|
|
(235,373)
|
|
|
92,505
|
|
|
|
|
|
|
|
Comprehensive
income (loss), net of tax
|
$
|
108,468
|
|
|
$
|
(173,623)
|
|
|
$
|
61,394
|
|
EQUINIX,
INC.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
4,923,259
|
|
|
$
|
748,476
|
|
Short-term
investments
|
14,742
|
|
|
3,409
|
|
Accounts receivable,
net
|
429,990
|
|
|
396,245
|
|
Other current
assets
|
206,026
|
|
|
319,396
|
|
Total current assets
|
5,574,017
|
|
|
1,467,526
|
|
Long-term
investments
|
6,461
|
|
|
10,042
|
|
Property, plant and
equipment, net
|
7,605,829
|
|
|
7,199,210
|
|
Goodwill
|
3,053,026
|
|
|
2,986,064
|
|
Intangible assets,
net
|
710,706
|
|
|
719,231
|
|
Other
assets
|
234,645
|
|
|
226,298
|
|
Total assets
|
$
|
17,184,684
|
|
|
$
|
12,608,371
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
515,959
|
|
|
$
|
581,739
|
|
Accrued property,
plant and equipment
|
190,176
|
|
|
144,842
|
|
Current portion of
capital lease and other financing obligations
|
99,202
|
|
|
101,046
|
|
Current portion of
mortgage and loans payable
|
80,799
|
|
|
67,928
|
|
Other current
liabilities
|
133,932
|
|
|
133,140
|
|
Total current liabilities
|
1,020,068
|
|
|
1,028,695
|
|
Capital lease and
other financing obligations, less current portion
|
1,523,309
|
|
|
1,410,742
|
|
Mortgage and loans
payable, less current portion
|
2,432,610
|
|
|
1,369,087
|
|
Senior
notes
|
5,045,449
|
|
|
3,810,770
|
|
Other
liabilities
|
645,409
|
|
|
623,248
|
|
Total liabilities
|
10,666,845
|
|
|
8,242,542
|
|
Common
stock
|
78
|
|
|
72
|
|
Additional paid-in
capital
|
9,601,627
|
|
|
7,413,519
|
|
Treasury
stock
|
(146,936)
|
|
|
(147,559)
|
|
Accumulated
dividends
|
(2,115,963)
|
|
|
(1,969,645)
|
|
Accumulated other
comprehensive loss
|
(882,736)
|
|
|
(949,142)
|
|
Retained
earnings
|
61,769
|
|
|
18,584
|
|
Total stockholders' equity
|
6,517,839
|
|
|
4,365,829
|
|
Total liabilities and stockholders' equity
|
$
|
17,184,684
|
|
|
$
|
12,608,371
|
|
|
|
|
|
|
|
|
|
Ending headcount by
geographic region is as follows:
|
|
|
|
|
|
|
|
Americas headcount
|
2,595
|
|
|
2,510
|
|
EMEA headcount
|
2,156
|
|
|
2,063
|
|
Asia-Pacific headcount
|
1,437
|
|
|
1,420
|
|
Total headcount
|
6,188
|
|
|
5,993
|
|
EQUINIX,
INC.
|
Summary of Debt
Principal Outstanding
|
(in
thousands)
|
(unaudited)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
|
|
|
Capital lease and
other financing obligations
|
$
|
1,622,511
|
|
|
$
|
1,511,788
|
|
|
|
|
|
Term loans, net of
debt discount and debt issuance costs
|
2,466,664
|
|
|
1,390,771
|
|
Mortgage payable and
other loans payable
|
46,745
|
|
|
46,244
|
|
Plus: debt discount,
debt issuance costs and premium, net
|
33,525
|
|
|
20,949
|
|
Total mortgage and loans payable principal
|
2,546,934
|
|
|
1,457,964
|
|
|
|
|
|
Senior notes, net of
debt issuance costs
|
5,045,449
|
|
|
3,810,770
|
|
Plus: debt issuance
costs
|
54,551
|
|
|
39,230
|
|
Total senior notes principal
|
5,100,000
|
|
|
3,850,000
|
|
|
|
|
|
Total debt principal
outstanding
|
$
|
9,269,445
|
|
|
$
|
6,819,752
|
|
EQUINIX,
INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
(loss)
|
$
|
42,062
|
|
|
$
|
61,750
|
|
|
$
|
(31,111)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
219,013
|
|
|
212,268
|
|
|
202,153
|
|
Stock-based
compensation
|
38,323
|
|
|
39,837
|
|
|
34,061
|
|
Amortization of debt
issuance costs and debt discounts
|
11,580
|
|
|
5,428
|
|
|
5,508
|
|
Loss on debt
extinguishment
|
3,503
|
|
|
1,777
|
|
|
—
|
|
(Gain) loss on asset
sales
|
—
|
|
|
371
|
|
|
(5,242)
|
|
Loss on sale of
discontinued operations
|
—
|
|
|
1,891
|
|
|
—
|
|
Other
items
|
8,380
|
|
|
5,014
|
|
|
5,435
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(39,664)
|
|
|
(27,423)
|
|
|
(11,312)
|
|
Income taxes,
net
|
(20,637)
|
|
|
27,999
|
|
|
(28,656)
|
|
Accounts payable and
accrued expenses
|
(65,414)
|
|
|
73,091
|
|
|
(40,217)
|
|
Other assets and
liabilities
|
50,225
|
|
|
(101,385)
|
|
|
(25,785)
|
|
Net cash provided
by operating activities
|
247,371
|
|
|
300,618
|
|
|
104,834
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases, sales and
maturities of investments, net
|
(7,104)
|
|
|
779
|
|
|
3,419
|
|
Business
acquisitions, net of cash and restricted cash acquired
|
(36,041)
|
|
|
621
|
|
|
(1,601,326)
|
|
Purchases of real
estate
|
(41,739)
|
|
|
—
|
|
|
(16,408)
|
|
Purchases of other
property, plant and equipment
|
(277,242)
|
|
|
(386,321)
|
|
|
(197,700)
|
|
Proceeds from asset
sales
|
47,767
|
|
|
23,385
|
|
|
22,825
|
|
Net cash used in
investing activities
|
(314,359)
|
|
|
(361,536)
|
|
|
(1,789,190)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
employee equity awards
|
20,074
|
|
|
36
|
|
|
16,304
|
|
Payments of dividend
distributions
|
(148,083)
|
|
|
(125,312)
|
|
|
(124,836)
|
|
Proceeds from public
offering of common stock, net of offering costs
|
2,126,258
|
|
|
—
|
|
|
—
|
|
Proceeds from loans
payable
|
1,059,800
|
|
|
457,900
|
|
|
701,250
|
|
Proceeds from senior
notes
|
1,250,000
|
|
|
—
|
|
|
—
|
|
Repayment of capital
lease and other financing obligations
|
(16,596)
|
|
|
(13,522)
|
|
|
(33,232)
|
|
Repayments of
mortgage and loans payable and convertible debt
|
(21,510)
|
|
|
(476,474)
|
|
|
(936,353)
|
|
Debt extinguishment
costs
|
(3,132)
|
|
|
(1,199)
|
|
|
—
|
|
Debt issuance
costs
|
(40,665)
|
|
|
370
|
|
|
(65)
|
|
Other financing
activities
|
(900)
|
|
|
—
|
|
|
—
|
|
Net cash provided
by (used in) financing
activities
|
4,225,246
|
|
|
(158,201)
|
|
|
(376,932)
|
|
Effect of foreign
currency exchange rates on cash, cash equivalents and restricted
cash
|
11,541
|
|
|
(34,930)
|
|
|
(9,501)
|
|
Change in cash
balances included in assets held for sale
|
—
|
|
|
3,755
|
|
|
—
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
4,169,799
|
|
|
(250,294)
|
|
|
(2,070,789)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
773,247
|
|
|
1,023,541
|
|
|
2,718,427
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
4,943,046
|
|
|
$
|
773,247
|
|
|
$
|
647,638
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
Cash paid for
taxes
|
$
|
29,552
|
|
|
$
|
7,817
|
|
|
$
|
19,215
|
|
Cash paid for
interest
|
$
|
115,434
|
|
|
$
|
78,553
|
|
|
$
|
74,540
|
|
|
|
|
|
|
|
Free cash flow
(negative free cash flow) (1)
|
$
|
(59,884)
|
|
|
$
|
(61,697)
|
|
|
$
|
(1,687,775)
|
|
|
|
|
|
|
|
Adjusted free cash
flow (adjusted negative free cash
flow)
(2)
|
$
|
17,896
|
|
|
$
|
(62,318)
|
|
|
$
|
(70,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
$
|
247,371
|
|
|
$
|
300,618
|
|
|
$
|
104,834
|
|
Net cash used in
investing activities as presented above
|
(314,359)
|
|
|
(361,536)
|
|
|
(1,789,190)
|
|
Purchases, sales and
maturities of investments, net
|
7,104
|
|
|
(779)
|
|
|
(3,419)
|
|
Free cash flow
(negative free cash flow)
|
$
|
(59,884)
|
|
|
$
|
(61,697)
|
|
|
$
|
(1,687,775)
|
|
|
|
|
|
|
|
(2) We define
adjusted free cash flow as free cash flow (as defined above)
excluding any purchases of real estate and business acquisitions as
presented below:
|
|
|
|
|
|
|
Free cash flow (as
defined above)
|
$
|
(59,884)
|
|
|
$
|
(61,697)
|
|
|
$
|
(1,687,775)
|
|
Less business
acquisitions, net of cash and restricted cash
|
36,041
|
|
|
(621)
|
|
|
1,601,326
|
|
Less purchases of
real estate
|
41,739
|
|
|
—
|
|
|
16,408
|
|
Adjusted free cash
flow
|
$
|
17,896
|
|
|
$
|
(62,318)
|
|
|
$
|
(70,041)
|
|
|
|
|
|
|
|
EQUINIX,
INC.
|
Non-GAAP Measures
and Other Supplemental Data
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2016
|
Recurring
revenues
|
$
|
898,440
|
|
|
$
|
892,442
|
|
|
$
|
796,620
|
|
Non-recurring
revenues
|
51,085
|
|
|
50,205
|
|
|
47,536
|
|
Revenues
(1)
|
949,525
|
|
|
942,647
|
|
|
844,156
|
|
|
|
|
|
|
|
Cash cost of revenues
(2)
|
303,540
|
|
|
301,540
|
|
|
271,100
|
|
Cash gross profit
(3)
|
645,985
|
|
|
641,107
|
|
|
573,056
|
|
|
|
|
|
|
|
Cash operating
expenses (4):
|
|
|
|
|
|
Cash sales and
marketing expenses (5)
|
99,861
|
|
|
85,196
|
|
|
79,692
|
|
Cash general and
administrative expenses (6)
|
118,550
|
|
|
119,420
|
|
|
112,714
|
|
Total cash
operating expenses (7)
|
218,411
|
|
|
204,616
|
|
|
192,406
|
|
|
|
|
|
|
|
Adjusted EBITDA
(8)
|
$
|
427,574
|
|
|
$
|
436,491
|
|
|
$
|
380,650
|
|
|
|
|
|
|
|
Cash gross margins
(9)
|
68
|
%
|
|
68
|
%
|
|
68
|
%
|
|
|
|
|
|
|
Adjusted EBITDA
margins (10)
|
45
|
%
|
|
46
|
%
|
|
45
|
%
|
|
|
|
|
|
|
Adjusted EBITDA
flow-through rate (11)
|
(130)
|
%
|
|
92
|
%
|
|
42
|
%
|
|
|
|
|
|
|
FFO
(12)
|
$
|
200,866
|
|
|
$
|
219,868
|
|
|
$
|
115,875
|
|
|
|
|
|
|
|
AFFO (13)
(14)
|
$
|
304,110
|
|
|
$
|
293,785
|
|
|
$
|
209,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The geographic
split of our revenues on a services basis is presented
below:
|
|
|
|
|
|
|
Americas
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
299,273
|
|
|
$
|
299,200
|
|
|
$
|
280,564
|
|
Interconnection
|
100,850
|
|
|
100,459
|
|
|
87,609
|
|
Managed
infrastructure
|
15,061
|
|
|
14,385
|
|
|
11,254
|
|
Other
|
919
|
|
|
943
|
|
|
729
|
|
Recurring
revenues
|
416,103
|
|
|
414,987
|
|
|
380,156
|
|
Non-recurring
revenues
|
20,344
|
|
|
21,555
|
|
|
24,238
|
|
Revenues
|
$
|
436,447
|
|
|
$
|
436,542
|
|
|
$
|
404,394
|
|
|
|
|
|
|
|
EMEA
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
253,254
|
|
|
$
|
242,829
|
|
|
$
|
214,178
|
|
Interconnection
|
22,351
|
|
|
22,280
|
|
|
19,700
|
|
Managed
infrastructure
|
17,672
|
|
|
17,243
|
|
|
18,560
|
|
Other
|
3,330
|
|
|
2,919
|
|
|
943
|
|
Recurring
revenues
|
296,607
|
|
|
285,271
|
|
|
253,381
|
|
Non-recurring
revenues
|
18,240
|
|
|
16,353
|
|
|
14,475
|
|
Revenues
|
$
|
314,847
|
|
|
$
|
301,624
|
|
|
$
|
267,856
|
|
|
|
|
|
|
|
Asia-Pacific
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
138,995
|
|
|
$
|
146,483
|
|
|
$
|
123,653
|
|
Interconnection
|
24,859
|
|
|
23,159
|
|
|
18,278
|
|
Managed
infrastructure
|
21,876
|
|
|
22,362
|
|
|
20,496
|
|
Other
|
—
|
|
|
180
|
|
|
656
|
|
Recurring
revenues
|
185,730
|
|
|
192,184
|
|
|
163,083
|
|
Non-recurring
revenues
|
12,501
|
|
|
12,297
|
|
|
8,823
|
|
Revenues
|
$
|
198,231
|
|
|
$
|
204,481
|
|
|
$
|
171,906
|
|
|
|
|
|
|
|
Worldwide
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Colocation
|
$
|
691,522
|
|
|
$
|
688,512
|
|
|
$
|
618,395
|
|
Interconnection
|
148,060
|
|
|
145,898
|
|
|
125,587
|
|
Managed
infrastructure
|
54,609
|
|
|
53,990
|
|
|
50,310
|
|
Other
|
4,249
|
|
|
4,042
|
|
|
2,328
|
|
Recurring
revenues
|
898,440
|
|
|
892,442
|
|
|
796,620
|
|
Non-recurring
revenues
|
51,085
|
|
|
50,205
|
|
|
47,536
|
|
Revenues
|
$
|
949,525
|
|
|
$
|
942,647
|
|
|
$
|
844,156
|
|
|
|
|
|
|
|
(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
|
$
|
468,961
|
|
|
$
|
465,921
|
|
|
$
|
427,680
|
|
Depreciation,
amortization and accretion expense
|
(162,510)
|
|
|
(161,049)
|
|
|
(153,583)
|
|
Stock-based
compensation expense
|
(2,911)
|
|
|
(3,332)
|
|
|
(2,997)
|
|
Cash cost of
revenues
|
$
|
303,540
|
|
|
$
|
301,540
|
|
|
$
|
271,100
|
|
|
|
|
|
|
|
The geographic split
of our cash cost of revenues is presented below:
|
|
|
|
|
|
|
Americas cash cost of
revenues
|
$
|
113,059
|
|
|
$
|
115,838
|
|
|
$
|
109,020
|
|
EMEA cash cost of
revenues
|
122,175
|
|
|
113,796
|
|
|
101,509
|
|
Asia-Pacific cash cost
of revenues
|
68,306
|
|
|
71,906
|
|
|
60,571
|
|
Cash cost of
revenues
|
$
|
303,540
|
|
|
$
|
301,540
|
|
|
$
|
271,100
|
|
|
(3) We define cash gross
profit as revenues less cash cost of revenues (as defined
above).
|
|
|
|
|
|
|
(4) We define
cash operating expenses as selling, general, and administrative
expense less depreciation, amortization, and stock-based
compensation. We also refer to cash operating expense as cash
selling, marketing, general and administrative expense or "cash
SG&A".
|
|
|
|
|
|
|
Selling, general, and
administrative expense
|
$
|
310,326
|
|
|
$
|
292,340
|
|
|
$
|
272,494
|
|
Depreciation and
amortization expense
|
(56,503)
|
|
|
(51,219)
|
|
|
(48,570)
|
|
Stock-based
compensation expense
|
(35,412)
|
|
|
(36,505)
|
|
|
(31,518)
|
|
Cash operating
expense
|
$
|
218,411
|
|
|
$
|
204,616
|
|
|
$
|
192,406
|
|
|
|
|
|
|
|
(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
|
$
|
128,927
|
|
|
$
|
113,384
|
|
|
$
|
106,590
|
|
Depreciation and
amortization expense
|
(18,094)
|
|
|
(17,345)
|
|
|
(17,127)
|
|
Stock-based
compensation expense
|
(10,972)
|
|
|
(10,843)
|
|
|
(9,771)
|
|
Cash sales and
marketing expenses
|
$
|
99,861
|
|
|
$
|
85,196
|
|
|
$
|
79,692
|
|
|
|
|
|
|
|
(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
|
$
|
181,399
|
|
|
$
|
178,956
|
|
|
$
|
165,904
|
|
Depreciation and
amortization expense
|
(38,409)
|
|
|
(33,874)
|
|
|
(31,443)
|
|
Stock-based
compensation expense
|
(24,440)
|
|
|
(25,662)
|
|
|
(21,747)
|
|
Cash general and
administrative expenses
|
$
|
118,550
|
|
|
$
|
119,420
|
|
|
$
|
112,714
|
|
|
|
|
|
|
|
(7) Our cash operating
expenses, or cash SG&A, as defined above, is presented
below:
|
|
|
|
|
|
|
Cash sales and
marketing expenses
|
$
|
99,861
|
|
|
$
|
85,196
|
|
|
$
|
79,692
|
|
Cash general and
administrative expenses
|
118,550
|
|
|
119,420
|
|
|
112,714
|
|
Cash
SG&A
|
$
|
218,411
|
|
|
$
|
204,616
|
|
|
$
|
192,406
|
|
|
|
|
|
|
|
The geographic split
of our cash operating expenses, or cash SG&A, is presented
below:
|
|
|
|
|
|
|
Americas cash
SG&A
|
$
|
124,769
|
|
|
$
|
115,012
|
|
|
$
|
110,914
|
|
EMEA cash
SG&A
|
63,118
|
|
|
59,977
|
|
|
54,858
|
|
Asia-Pacific cash
SG&A
|
30,524
|
|
|
29,627
|
|
|
26,634
|
|
Cash
SG&A
|
$
|
218,411
|
|
|
$
|
204,616
|
|
|
$
|
192,406
|
|
|
|
|
|
|
|
(8)
We define adjusted EBITDA as income from continuing operations
excluding depreciation, amortization, accretion,
stock-based compensation expense, impairment charges,
acquisition costs and gains or loss on asset sales as presented
below:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
167,213
|
|
|
$
|
184,455
|
|
|
$
|
112,688
|
|
Depreciation,
amortization and accretion expense
|
219,013
|
|
|
212,268
|
|
|
202,153
|
|
Stock-based
compensation expense
|
38,323
|
|
|
39,837
|
|
|
34,515
|
|
Acquisition
costs
|
3,025
|
|
|
(440)
|
|
|
36,536
|
|
(Gain) loss on asset
sales
|
—
|
|
|
371
|
|
|
(5,242)
|
|
Adjusted
EBITDA
|
$
|
427,574
|
|
|
$
|
436,491
|
|
|
$
|
380,650
|
|
|
|
|
|
|
|
The geographic split
of our adjusted EBITDA is presented below:
|
|
|
|
|
|
|
Americas income from
continuing operations
|
$
|
81,110
|
|
|
$
|
87,537
|
|
|
$
|
88,539
|
|
Americas depreciation,
amortization and accretion expense
|
88,428
|
|
|
83,305
|
|
|
76,720
|
|
Americas stock-based
compensation expense
|
27,774
|
|
|
28,312
|
|
|
24,329
|
|
Americas acquisition
costs
|
1,307
|
|
|
6,538
|
|
|
114
|
|
Americas gain on asset
sales
|
—
|
|
|
—
|
|
|
(5,242)
|
|
Americas adjusted
EBITDA
|
$
|
198,619
|
|
|
$
|
205,692
|
|
|
$
|
184,460
|
|
|
|
|
|
|
|
EMEA income from
continuing operations
|
$
|
44,981
|
|
|
$
|
51,347
|
|
|
$
|
(7,419)
|
|
EMEA depreciation,
amortization and accretion expense
|
76,806
|
|
|
76,598
|
|
|
76,488
|
|
EMEA stock-based
compensation expense
|
6,049
|
|
|
6,884
|
|
|
6,235
|
|
EMEA acquisition
costs
|
1,718
|
|
|
(6,978)
|
|
|
36,185
|
|
EMEA adjusted
EBITDA
|
$
|
129,554
|
|
|
$
|
127,851
|
|
|
$
|
111,489
|
|
|
|
|
|
|
|
Asia-Pacific income
from continuing operations
|
$
|
41,122
|
|
|
$
|
45,571
|
|
|
$
|
31,568
|
|
Asia-Pacific
depreciation, amortization and accretion expense
|
53,779
|
|
|
52,365
|
|
|
48,945
|
|
Asia-Pacific
stock-based compensation expense
|
4,500
|
|
|
4,641
|
|
|
3,951
|
|
Asia-Pacific
acquisition costs
|
—
|
|
|
—
|
|
|
237
|
|
Asia-Pacific loss on
asset sales
|
—
|
|
|
371
|
|
|
—
|
|
Asia-Pacific adjusted
EBITDA
|
$
|
99,401
|
|
|
$
|
102,948
|
|
|
$
|
84,701
|
|
|
|
|
|
|
|
(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
|
%
|
|
73
|
%
|
|
|
|
|
|
|
EMEA cash gross
margins
|
61
|
%
|
|
62
|
%
|
|
62
|
%
|
|
|
|
|
|
|
Asia-Pacific cash
gross margins
|
66
|
%
|
|
65
|
%
|
|
65
|
%
|
|
|
|
|
|
|
(10) We define
adjusted EBITDA margins as adjusted EBITDA divided by
revenues.
|
|
|
|
|
|
|
Americas adjusted
EBITDA margins
|
46
|
%
|
|
47
|
%
|
|
46
|
%
|
|
|
|
|
|
|
EMEA adjusted EBITDA
margins
|
41
|
%
|
|
42
|
%
|
|
42
|
%
|
|
|
|
|
|
|
Asia-Pacific adjusted
EBITDA margins
|
50
|
%
|
|
50
|
%
|
|
49
|
%
|
|
(11) We define
adjusted EBITDA flow-through rate as incremental adjusted EBITDA
growth divided by incremental revenue growth as
follows:
|
|
|
|
|
|
|
Adjusted EBITDA - current period
|
$
|
427,574
|
|
|
$
|
436,491
|
|
|
$
|
380,650
|
|
Less adjusted EBITDA - prior period
|
(436,491)
|
|
|
(420,042)
|
|
|
(333,145)
|
|
Adjusted EBITDA growth
|
$
|
(8,917)
|
|
|
$
|
16,449
|
|
|
$
|
47,505
|
|
|
|
|
|
|
|
Revenues - current period
|
$
|
949,525
|
|
|
$
|
942,647
|
|
|
$
|
844,156
|
|
Less revenues - prior period
|
(942,647)
|
|
|
(924,676)
|
|
|
(730,462)
|
|
Revenue growth
|
$
|
6,878
|
|
|
$
|
17,971
|
|
|
$
|
113,694
|
|
|
|
|
|
|
|
Adjusted EBITDA flow-through rate
|
(130)%
|
|
|
92
|
%
|
|
42
|
%
|
|
|
|
|
|
|
(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)
|
$
|
42,062
|
|
|
$
|
61,750
|
|
|
$
|
(31,111)
|
|
Adjustments:
|
|
|
|
|
|
Real estate
depreciation and amortization
|
159,414
|
|
|
157,054
|
|
|
150,995
|
|
(Gain) loss on
disposition of real estate property
|
(638)
|
|
|
1,036
|
|
|
(4,037)
|
|
Adjustments for FFO
from unconsolidated joint ventures
|
28
|
|
|
28
|
|
|
28
|
|
FFO
|
$
|
200,866
|
|
|
$
|
219,868
|
|
|
$
|
115,875
|
|
|
|
|
|
|
|
(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, an income tax expense
adjustment, net income 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
|
$
|
200,866
|
|
|
$
|
219,868
|
|
|
$
|
115,875
|
|
Adjustments:
|
|
|
|
|
|
Installation revenue
adjustment
|
4,675
|
|
|
4,788
|
|
|
3,354
|
|
Straight-line rent
expense adjustment
|
2,409
|
|
|
1,986
|
|
|
1,133
|
|
Amortization of
deferred financing costs
|
11,580
|
|
|
5,258
|
|
|
5,508
|
|
Stock-based
compensation expense
|
38,323
|
|
|
39,837
|
|
|
34,515
|
|
Non-real estate
depreciation expense
|
28,575
|
|
|
23,265
|
|
|
21,387
|
|
Amortization
expense
|
29,017
|
|
|
29,478
|
|
|
28,152
|
|
Accretion
expense
|
2,007
|
|
|
2,471
|
|
|
1,619
|
|
Recurring capital
expenditures
|
(22,672)
|
|
|
(36,476)
|
|
|
(31,815)
|
|
Loss on debt
extinguishment
|
3,503
|
|
|
1,777
|
|
|
—
|
|
Acquisition
costs
|
3,025
|
|
|
(440)
|
|
|
36,536
|
|
Income tax expense
adjustment
|
2,809
|
|
|
68
|
|
|
(190)
|
|
Net (income) loss from
discontinued operations, net of tax
|
—
|
|
|
1,914
|
|
|
(6,216)
|
|
Adjustments for AFFO
from unconsolidated joint ventures
|
(7)
|
|
|
(9)
|
|
|
(12)
|
|
AFFO
|
$
|
304,110
|
|
|
$
|
293,785
|
|
|
$
|
209,846
|
|
|
|
|
|
|
|
(14) Following
is how we reconcile from adjusted EBITDA to AFFO:
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
427,574
|
|
|
$
|
436,491
|
|
|
$
|
380,650
|
|
Adjustments:
|
|
|
|
|
|
Interest expense, net
of interest income
|
(108,592)
|
|
|
(97,813)
|
|
|
(99,938)
|
|
Amortization of
deferred financing costs
|
11,580
|
|
|
5,258
|
|
|
5,508
|
|
Income tax benefit
(expense)
|
(13,393)
|
|
|
(19,494)
|
|
|
10,633
|
|
Income tax expense
adjustment
|
2,809
|
|
|
68
|
|
|
(190)
|
|
Straight-line rent
expense adjustment
|
2,409
|
|
|
1,986
|
|
|
1,133
|
|
Installation revenue
adjustment
|
4,675
|
|
|
4,788
|
|
|
3,354
|
|
Recurring capital
expenditures
|
(22,672)
|
|
|
(36,476)
|
|
|
(31,815)
|
|
Other income
(expense)
|
337
|
|
|
(1,707)
|
|
|
(60,710)
|
|
(Gain) loss on
disposition of depreciable real estate property
|
(638)
|
|
|
1,036
|
|
|
(4,037)
|
|
Adjustments for
unconsolidated JVs' and non-controlling interests
|
21
|
|
|
19
|
|
|
16
|
|
Adjustment for gain
(loss) on sale of asset
|
—
|
|
|
(371)
|
|
|
5,242
|
|
AFFO
|
$
|
304,110
|
|
|
$
|
293,785
|
|
|
$
|
209,846
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/equinix-reports-first-quarter-2017-results-300446427.html
SOURCE Equinix, Inc.