LAS VEGAS, April 2, 2018 /PRNewswire/ -- Switch, Inc.
(NYSE: SWCH) ("Switch") today announced financial results for the
quarter and the year ended December 31,
2017.
"Switch achieved another year of revenue growth as it continued
to expand its presence and grow its customer base, while advancing
its role in sustainability," said Rob
Roy, CEO, chairman and founder of Switch. "With our
innovative, patent-protected technology, we believe Switch is
highly differentiated, decidedly competitive and unrivaled in our
expansion capacity."
2017 Financial Results
- Total revenue of $378.3 million,
compared to $318.4 million in 2016,
an increase of 19%.
- Operating income of $18.8
million, compared to operating income of $51.1 million in 2016. Operating income in 2017
includes the impact of $71.3 million
in non-recurring equity-based compensation expense resulting from
the accelerated vesting of certain incentive units of Switch, Ltd.
and related awards granted under Switch's 2017 Incentive Award Plan
in connection with Switch's initial public offering. Excluding the
impact of this non-recurring compensation expense, operating income
would have increased 77% from 2016 to 2017.
- Net loss of $8.6 million,
compared to net income of $31.4
million in 2016, which includes $84.8
million in equity-based compensation expense in 2017
compared with $5.9 million in
equity-based compensation expense in 2016.
- Adjusted EBITDA of $194.7
million, compared to $153.2
million for 2016, an increase of 27%. Adjusted EBITDA margin
of 51.5%, compared to 48.1% in 2016, an increase of 340 basis
points.
- Capital expenditures of $402.6
million, compared to $287.1
million in 2016, an increase of 40% primarily due to
deployment of capital in The Core Campus in response to additional
customer demand and density needs along with additional capital
expenditures to build out The Citadel Campus and The Pyramid
Campus.
- Customer churn of 0.6% for the year ended December 31, 2017 compared with 1.1% in
2016.(1)
Fourth Quarter 2017 Financial Results
- Total revenue of $99.3 million,
compared to $81.9 million for the
same quarter in 2016, an increase of 21%.
- Net loss of $60.3 million,
compared to $19.8 million for the
same quarter in 2016.
- Adjusted EBITDA of $51.1 million,
compared to $41.0 million for the
same quarter in 2016, an increase of 25%. Adjusted EBITDA margin of
51.4%, compared to 50.0% for the same quarter in 2016, an increase
of 140 basis points.
- Capital expenditures of $118.6
million, compared to $96.6
million in the same quarter in 2016, an increase of 23%.
Capital expenditures for Q4 2017 included $23.9 million for the purchase of the Switch
Pyramid building and 142 acres of land in The Pyramid Campus.
- Churn of 0.3%, compared to 1.9% for the same quarter in
2016.(1)
(1)
|
Churn is defined as a
reduction in recurring revenue attributed to customer terminations
or non-renewal of expired contracts, as a percentage of revenue at
the beginning of the period.
|
"We believe the total addressable market for datacenters remains
very strong, while Switch's industry leading hyperscale facilities,
combined with our CORE connectivity and Switched On energy
divisions, position us for continued organic growth," said
Thomas Morton, president and general
counsel of Switch. "In 2017, we retained CBRE to support
Switch's strategic expansion across the U.S. and augmented our
internal non-commissioned sales force with 6 additional sales team
members to address demand for our West Coast Primes and our
expanding East Coast presence."
Gabe Nacht, CFO of Switch, added,
"We achieved another year of record annual revenue, driven
primarily by colocation revenue from increased sales to existing
customers along with the addition of new customers as we expanded
the facilities in The Core Campus, The Citadel Campus and The
Pyramid Campus. We believe our technology ecosystem creates
significant value for our customers, and its powerful network
effects drive customer loyalty, as it's been reflected in our churn
rates, which remain among the lowest in the industry."
Balance Sheet and Liquidity
As of December 31, 2017, Switch's total debt
outstanding net of cash was $349
million, resulting in a net debt to last quarter annualized
Adjusted EBITDA ratio of 1.7x. At year-end 2017, Switch had
liquidity of $765 million including
cash on hand and availability under its revolving line of
credit.
Capital Expenditures and Development
Capital
expenditures in 2017 totaled $402.6
million as Switch invested in all of its Prime
locations. Capital expenditures included $15.3 million for the purchase of additional
parcels of land in Las Vegas and
in Atlanta totaling 22 acres, and
the acceleration of $14.8 million in
purchases to take advantage of vendor discounts, which was not in
our previous guidance. Maintenance capital expenditure was
$4.6 million in 2017, compared to
$5.1 million in 2016. Growth
capital expenditure was $398.0
million in 2017, compared to $282.0
million in 2016. In 2017, Switch deployed $200.5 million of capital in The Core Campus in
response to additional customer demand and density needs, and to
begin work on its Las Vegas 11
facility, which is planned to open in late 2018 or early 2019 and
is expected to add another 340,000 gross square feet of space.
Switch also invested $126.9 million
in The Citadel Campus, opening two additional sectors in the fourth
quarter, along with additional power and cooling. In 2017,
Switch spent $44.6 million on
additional build out of The Pyramid Campus, opening an additional
sector and adding power and cooling capacity. In the fourth
quarter of 2017, Switch exercised its purchase option for The
Pyramid Campus property, purchasing the building and 142 acres of
land for $23.9 million. Switch also
began work on The Keep Campus, spending $6.7
million to begin site preparation.
Dividend
On December 7,
2017, Switch announced that Switch's Board of Directors
declared a cash dividend of $0.014
per share of Switch's Class A common stock for the fourth quarter
of 2017. The dividend was paid on December
29, 2017 to all stockholders of record as of the close of
business on December 18, 2017. Prior
to the payment of this dividend, Switch, Ltd. made a cash
distribution to all holders of record of common units of Switch,
Ltd., including Switch, of $0.014 per
common unit.
In addition, Switch today announced that Switch's Board of
Directors has declared a cash dividend of $0.0147 per share of Switch's Class A common
stock for the first quarter of 2018. The dividend will be payable
on April 23, 2018 to all stockholders
of record as of the close of business on April 13, 2018. Prior to the payment of
this dividend, Switch, Ltd. will make a cash distribution to all
holders of record of common units of Switch, Ltd., including
Switch, of $0.0147 per common
unit.
Future declarations of quarterly dividends are subject to the
determination and discretion of Switch's Board of Directors based
on its consideration of many factors, including Switch's results of
operations, financial condition, capital requirements, restrictions
in Switch, Ltd.'s debt agreements and other factors that Switch's
Board of Directors deems relevant.
Recent Business Highlights
- Retained CBRE for Exclusive Agency Agreement for Switch's Tier
5® Platinum PRIME Colocation Data Centers to support Switch's
strategic expansion across the U.S.
- Launched Switched On, Switch's new energy purchasing
consortium.
- Announced Rob Roy's Gigawatt
Nevada, the Largest Solar Project in the
United States which will produce some of the lowest priced
solar power in the world, and which Switch expects will allow its
customers to receive renewable energy for substantially less than
the cost of receiving power from any other source. This underscores
Switch's commitment to sustainability, making the Nevada Primes the
only Tier 1 markets that can offer 4.9
cents a kilowatt hour power to its customers.
- Advanced its intellectual property and filed an additional 12
patents on new innovative technology for its industry, bringing
Switch's total patents and pending claims to date to more than
500.
2018 Guidance
For the full year 2018, Switch provides
the following guidance:
- Total revenue in the range of $423
million to $440 million.
- Adjusted EBITDA in the range of $216
million to $224 million.
- Capital expenditures in the range of $260 million to $310
million.
Switch does not provide reconciliations for the non-GAAP
financial measures included in the 2018 guidance above due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliations, including net income
(loss), accelerated depreciation, impairment charges, gains or
losses on retirement of debt and variations in effective tax rate,
which are difficult to predict and estimate and are primarily
dependent on future events, but which are excluded from Switch's
calculations of Adjusted EBITDA.
Upcoming Conferences and Events
- Jefferies Technology Conference, May 9 -
10, 2018 in Beverly Hills,
CA
- 46th Annual J.P. Morgan Global Technology, Media and
Communications Conference, May 15 - 17,
2018 in Boston, MA
Conference Call Information
Switch will host a
conference call and live webcast for analysts and investors
at 5:00 p.m. Eastern time on April
2, 2018. Parties in the United
States and Canada can access the call by dialing
(888) 778-8914, using conference code 2186969. International
parties can access the call by dialing (719) 325-4758, using
conference code 2186969.
The webcast will be accessible on Switch's investor relations
website at https://investors.switch.com/ for one year. A
telephonic replay of the conference call will be available
through Monday, April 9, 2018. To access the replay, parties
in the United States and
Canada should call (888) 203-1112
and enter conference code 2186969. International parties should
call (719) 457-0820 and enter conference code 2186969.
Presentation of Financial Information
This press
release includes historical consolidated results for the periods
presented of Switch, Ltd. and its subsidiaries, the
predecessor of Switch, Inc., for financial reporting purposes.
Accordingly, the consolidated financial statements for periods
prior to the completion of the IPO on October 11, 2017 have been adjusted to combine
the previously separate entities for presentation purposes. Amounts
for the period from January 1, 2017
through October 10, 2017, as of
December 31, 2016, and for the year
ended December 31, 2016 presented in the consolidated
financial statements herein represent the historical operations of
Switch, Ltd. and its subsidiaries. The amounts as
of December 31, 2017 and for the period from October 11, 2017 through December 31,
2017 reflect the consolidated operations of Switch, Inc. For the
period from June 13, 2017 to
October 10, 2017, Switch, Inc. had no
business transactions or activities and had no assets or
liabilities with the exception of the issuance of one share at par
value of $0.001 per share, which was
canceled as of the closing date of the IPO.
Use of Non-GAAP Financial Measures
To supplement
Switch's condensed consolidated financial statements, which are
prepared and presented in accordance with generally accepted
accounting principles in the United
States (GAAP), Switch uses Adjusted EBITDA and Adjusted
EBITDA margin, which are non-GAAP measures, in this press release.
Switch defines Adjusted EBITDA as net (loss) income adjusted for
interest expense, interest income, income taxes, depreciation and
amortization and for specific and defined supplemental adjustments
to exclude (i) non-cash equity-based compensation expense; (ii)
equity in net earnings (losses) of investments; and (iii) certain
other items that Switch believes are not indicative of its core
operating performance. Switch defines Adjusted EBITDA margin as
Adjusted EBITDA divided by revenue.
The presentation of these financial measures is not intended to
be considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with
GAAP. Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. These measures may be different from non-GAAP
financial measures used by other companies, limiting their
usefulness for comparison purposes. In addition, the non-GAAP
measures exclude certain recurring expenses that have been and will
continue to be significant expenses of Switch's business.
Switch believes these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
its operating results, enhancing the overall understanding of its
past performance and future prospects, and allowing for greater
transparency with respect to key financial metrics used by its
management in financial and operational-decision making.
For more information on Switch's non-GAAP financial measures and
a reconciliation of GAAP to non-GAAP measures, please see the
"Reconciliation of GAAP to Non-GAAP Results" table in this press
release.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of federal securities
laws. Forward-looking statements generally relate to future events
or Switch's future financial or operating performance. In some
cases, you can identify forward-looking statements because they
contain words such as "may," "will," "should," "expects," "plans,"
"anticipates," "could," "intends," "target," "projects,"
"contemplates," "believes," "estimates," "predicts," "potential" or
"continue" or the negative of these words or other similar terms or
expressions that concern our expectations, strategy, plans or
intentions. Forward-looking statements in this press release
include, but are not limited to, Switch's anticipated operating
results for the year ending December 31,
2018 and Switch's expectations regarding the evolution of
its marketplace and timing for the opening of its LAS VEGAS 11 facility, statements regarding
future declarations of quarterly dividends and the costs of
renewable energy to Switch's customers. Switch's expectations and
beliefs regarding these matters may not materialize, and actual
results in future periods are subject to inherent risks,
uncertainties and changes in circumstance that are difficult or
impossible to predict. Consequently, you should not rely on these
forward-looking statements. Actual outcomes and results may differ
materially from those contemplated by these forward-looking
statements as a result of such uncertainties, risks, and changes in
circumstances, including without limitation risks and uncertainties
related to Switch's expansion plans; its future business
development; its expectations regarding demand for, and market
acceptance of, its services; and its ability to enter new markets
successfully.
The forward-looking statements contained in this press release
are also subject to other risks and uncertainties, and the
foregoing list of factors is not exclusive. These and additional
risks and uncertainties that could affect Switch's financial and
operating results and cause actual results to differ materially
from those indicated by the forward-looking statements made in this
press release are included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operation" and elsewhere in Switch's Annual Report on
Form 10-K filed with the Securities and Exchange Commission (the
"SEC") on April 2, 2018 and in
Switch's other reports filed with the SEC. Switch's SEC filings are
available on the Investors section of Switch's website
at https://investors.switch.com/and on the SEC's website at
www.sec.gov. The forward-looking statements in this press
release are based on information available to Switch as
of the date hereof, and disclaim Switch's obligation to update
any forward-looking statements provided to reflect any change in
its expectations or any change in events, conditions, or
circumstances on which any such statement is based, except as
required by law. These forward-looking statements should not be
relied upon as representing Switch's views as of any date
subsequent to the date of this press release.
ABOUT Switch
POWERING THE FUTURE OF THE CONNECTED WORLD®
Switch (NYSE: SWCH), the technology infrastructure corporation
headquartered in Las Vegas, is
built on the intelligent and sustainable growth of the internet.
Switch founder and CEO Rob Roy has
developed more than 500 issued and pending patent claims covering
data center designs that have manifested into the company's
world-renowned data centers and technology solution ecosystems.
Visit switch.com for more information.
Investor Contact:
Irmina Blaszczyk
The Blueshirt Group for Switch
investorrelations@switch.com
(702) 479-3993
Switch,
Inc.
|
Consolidated
Balance Sheets
|
(in thousands,
except for share and per share data)
|
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash
|
$
|
264,666
|
|
|
$
|
22,713
|
|
Accounts receivable,
net of allowance of $472 and $340, respectively
|
16,386
|
|
|
9,131
|
|
Prepaid
expenses
|
5,037
|
|
|
3,921
|
|
Other current
assets
|
2,101
|
|
|
2,052
|
|
Total current
assets
|
288,190
|
|
|
37,817
|
|
Property and
equipment, net
|
1,133,572
|
|
|
874,259
|
|
Long-term
deposit
|
3,842
|
|
|
4,440
|
|
Investments
|
—
|
|
|
169
|
|
Other
assets
|
9,155
|
|
|
4,330
|
|
TOTAL
ASSETS
|
$
|
1,434,759
|
|
|
$
|
921,015
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS'/MEMBERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Long-term debt,
current portion
|
$
|
5,194
|
|
|
$
|
14,330
|
|
Accounts
payable
|
18,934
|
|
|
1,663
|
|
Accrued salaries and
benefits
|
5,211
|
|
|
4,221
|
|
Accrued
expenses
|
6,469
|
|
|
8,906
|
|
Accrued construction
payables
|
7,052
|
|
|
47,528
|
|
Accrued Michigan
building and land purchase
|
—
|
|
|
23,916
|
|
Accrued impact fee
expense
|
—
|
|
|
27,018
|
|
Deferred revenue,
current portion
|
11,482
|
|
|
7,157
|
|
Customer
deposits
|
8,634
|
|
|
6,939
|
|
Capital lease
obligations, current portion
|
2,309
|
|
|
4,000
|
|
Total current
liabilities
|
65,285
|
|
|
145,678
|
|
Long-term debt,
net
|
586,566
|
|
|
457,737
|
|
Capital lease
obligations
|
19,466
|
|
|
19,466
|
|
Accrued interest,
capital lease obligations
|
1,927
|
|
|
2,070
|
|
Deferred
revenue
|
19,382
|
|
|
17,701
|
|
TOTAL
LIABILITIES
|
692,626
|
|
|
642,652
|
|
Commitments and
contingencies
|
|
|
|
STOCKHOLDERS'/MEMBERS' EQUITY:
|
|
|
|
Members'
equity
|
—
|
|
|
279,056
|
|
Preferred stock,
$0.001 par value per share, 10,000,000 shares authorized, none
issued and outstanding as of December 31, 2017
|
—
|
|
|
—
|
|
Class A common stock,
$0.001 par value per share, 750,000,000 shares authorized,
35,937,500 shares issued and outstanding as of December 31,
2017
|
36
|
|
|
—
|
|
Class B common stock,
$0.001 par value per share, 300,000,000 shares authorized,
173,624,316 shares issued and outstanding as of December 31,
2017
|
174
|
|
|
—
|
|
Class C common stock,
$0.001 par value per share, 75,000,000 shares authorized,
42,944,647 shares issued and outstanding as of December 31,
2017
|
43
|
|
|
—
|
|
Additional paid in
capital
|
107,008
|
|
|
—
|
|
Retained
earnings
|
1,602
|
|
|
—
|
|
Accumulated other
comprehensive gain (loss)
|
31
|
|
|
(693)
|
|
Total Switch, Inc.
stockholders'/Switch, Ltd. members' equity
|
108,894
|
|
|
278,363
|
|
Non-controlling
interest
|
633,239
|
|
|
—
|
|
TOTAL
STOCKHOLDERS'/MEMBERS' EQUITY
|
742,133
|
|
|
278,363
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS'/MEMBERS' EQUITY
|
$
|
1,434,759
|
|
|
$
|
921,015
|
|
Switch,
Inc.
|
Consolidated
Statements of Operations and Comprehensive Income
(Loss)
|
(in thousands,
except for share/unit and per share/unit data)
|
(unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenue
|
$
|
99,328
|
|
|
$
|
81,888
|
|
|
$
|
378,275
|
|
|
$
|
318,352
|
|
Cost of
revenue
|
53,655
|
|
|
43,455
|
|
|
198,230
|
|
|
168,844
|
|
Gross
profit
|
45,673
|
|
|
38,433
|
|
|
180,045
|
|
|
149,508
|
|
Selling, general and
administrative expense
|
99,628
|
|
|
18,912
|
|
|
160,569
|
|
|
71,420
|
|
Impact fee
expense
|
649
|
|
|
27,018
|
|
|
649
|
|
|
27,018
|
|
Income from
operations
|
(54,604)
|
|
|
(7,497)
|
|
|
18,827
|
|
|
51,070
|
|
Other income
(expense):
|
|
|
|
|
—
|
|
|
—
|
|
Interest expense,
including $402, $182, $1,303 and $922, respectively, in
amortization of debt issuance costs
|
(7,290)
|
|
|
(3,987)
|
|
|
(25,079)
|
|
|
(10,836)
|
|
Equity in net
(losses) earnings of investments
|
(122)
|
|
|
(6,322)
|
|
|
(1,077)
|
|
|
(10,138)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(3,565)
|
|
|
—
|
|
Gain on sale of
asset
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Impairment of notes
receivable
|
—
|
|
|
(2,371)
|
|
|
—
|
|
|
(2,371)
|
|
Gain on lease
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
2,801
|
|
Other
|
688
|
|
|
406
|
|
|
1,333
|
|
|
842
|
|
Total other
expense
|
(6,724)
|
|
|
(12,274)
|
|
|
(28,388)
|
|
|
(19,702)
|
|
(Loss) income before
income taxes
|
(61,328)
|
|
|
(19,771)
|
|
|
(9,561)
|
|
|
31,368
|
|
Income tax
benefit
|
981
|
|
|
—
|
|
|
981
|
|
|
—
|
|
Net (loss)
income
|
(60,347)
|
|
|
(19,771)
|
|
|
(8,580)
|
|
|
31,368
|
|
Less: net income
attributable to non-controlling interest
|
6,628
|
|
|
—
|
|
|
6,628
|
|
|
—
|
|
Net (loss) income
attributable to Switch, Inc.
|
(66,975)
|
|
|
(19,771)
|
|
|
(15,208)
|
|
|
31,368
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share/unit:(1)
|
|
|
|
|
|
|
|
Basic
|
$
|
(2.09)
|
|
|
$
|
(0.10)
|
|
|
$
|
(1.88)
|
|
|
$
|
0.16
|
|
Diluted
|
$
|
(2.09)
|
|
|
$
|
(0.10)
|
|
|
$
|
(1.88)
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
Weighted average
shares/units used in computing net (loss) income per
share/unit:(1)
|
|
|
|
|
|
|
|
Basic
|
32,032,351
|
|
|
198,416,748
|
|
|
8,073,908
|
|
|
199,047,070
|
|
Diluted
|
32,016,491
|
|
|
197,883,358
|
|
|
8,073,908
|
|
|
203,461,420
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
122
|
|
|
(402)
|
|
|
908
|
|
|
(86)
|
|
Comprehensive (loss)
income
|
(60,225)
|
|
|
(20,173)
|
|
|
(7,672)
|
|
|
31,282
|
|
Less: comprehensive
income attributable to non-controlling interest
|
6,732
|
|
|
—
|
|
|
6,732
|
|
|
—
|
|
Comprehensive (loss)
income attributable to Switch, Inc.
|
$
|
(66,957)
|
|
|
$
|
(20,173)
|
|
|
$
|
(14,404)
|
|
|
$
|
31,282
|
|
____________________________________
|
(1)
|
Weighted average
shares used in computing basic net loss per share for the quarter
and year ended December 31, 2017 totaled 32,032,351 and 8,073,908,
respectively, and are weighted from October 11, 2017, the date on
which Switch's IPO closed. Shares used to compute basic and diluted
net loss per share exclude shares of Class B common stock and Class
C common stock as they do not share in the earnings or losses of
Switch, Inc. Actual shares of Class A common stock outstanding at
December 31, 2017 totaled 35,937,500.
|
Switch,
Inc.
|
Reconciliation of
Net (Loss) Income to Adjusted EBITDA
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended December 31,
|
|
Years
Ended December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(60,347)
|
|
|
$
|
(19,771)
|
|
|
$
|
(8,580)
|
|
|
$
|
31,368
|
|
Interest
expense
|
7,290
|
|
|
3,987
|
|
|
25,079
|
|
|
10,836
|
|
Interest
income
|
(536)
|
|
|
(312)
|
|
|
(572)
|
|
|
(332)
|
|
Income tax
benefit
|
(981)
|
|
|
—
|
|
|
(981)
|
|
|
—
|
|
Depreciation and
amortization
|
24,448
|
|
|
19,002
|
|
|
89,124
|
|
|
66,591
|
|
Loss on disposal of
property and equipment
|
545
|
|
|
1,276
|
|
|
569
|
|
|
1,994
|
|
Impact fee
expense(1)
|
649
|
|
|
27,018
|
|
|
649
|
|
|
27,018
|
|
Equity-based
compensation
|
79,911
|
|
|
1,023
|
|
|
84,790
|
|
|
5,935
|
|
Equity in net
(earnings) losses of investments
|
122
|
|
|
6,322
|
|
|
1,077
|
|
|
10,138
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
3,565
|
|
|
—
|
|
Gain on lease
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,801)
|
|
Impairment of notes
receivable and interest receivable
|
—
|
|
|
2,426
|
|
|
—
|
|
|
2,426
|
|
Adjusted
EBITDA
|
$
|
51,101
|
|
|
$
|
40,971
|
|
|
$
|
194,720
|
|
|
$
|
153,173
|
|
____________________________________
|
(1)
|
In September 2016,
Switch filed an application with the Public Utilities Commission of
Nevada to become an unbundled purchaser of energy, capacity and
ancillary services in Nevada from a new provider of electric
resources. The application was approved in December 2016, and
Switch paid the impact fee of $27.0 million in a lump sum in May
2017 to NV Energy, its former energy provider. As there is no
future economic benefit to Switch from the impact fee, it was
recognized as an expense in December 2016. In November 2017, Switch
also incurred an additional $649,000 in impact fee expense related
to deferred energy adjustments representing the difference between
actual costs and amounts collected by NV Energy for fuel and
purchased power.
|
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SOURCE Switch, Inc.