Revenue Growth of 14% Year Over Year
Demand Drives New Investments in Frankfurt,
Paris, Marseille and Stockholm
Interxion Holding NV (NYSE:INXN), a leading European provider of
carrier and cloud-neutral colocation data centre services, today
announced its results for the three-month period ended 30 June 2019
and further investments in four markets.
Financial Highlights
- Revenue increased by 14% to €158.5 million (2Q 2018: €138.8
million).
- Recurring revenue(1) increased by 14% to €150.0 million (2Q
2018: €131.7 million).
- Net income increased by €8.0 million to €8.6 million (2Q 2018:
€0.6 million).
- Adjusted net income(1) decreased by 16% to €7.5 million (2Q
2018: €8.9 million).
- Diluted earnings per share increased by €0.11 to €0.12 (2Q
2018: €0.01).
- Adjusted diluted earnings per share(1) decreased by 16% to
€0.10 (2Q 2018: €0.12).
- Adjusted EBITDA(1) increased by 26% to €80.2 million (2Q 2018:
€63.4 million).
- Adjusted EBITDA margin(1) increased to 50.6% (2Q 2018:
45.7%).
- Capital expenditure, including intangible assets(2), were
€123.5 million (2Q 2018: €120.5 million).
Operating Highlights
- Equipped space(3) increased by 6,500 square metres (“sqm”)
during the quarter to 154,800 sqm metres.
- Revenue generating space(4) increased by 2,600 sqm during the
quarter to 121,600 sqm.
- Utilisation rate(5) at the end of the quarter was 79%.
- During the second quarter, Interxion completed the following
capacity additions:
- 2,000 sqm in Vienna;
- 1,300 sqm in Madrid;
- 1,100 sqm in Marseille;
- 800 sqm in Stockholm;
- 600 sqm in London;
- 400 sqm in Paris; and
- 300 sqm in Dusseldorf.
“As reflected in the solid second quarter results, Interxion
continues to experience favourable demand, driven primarily by the
cloud and content platform providers,” said David Ruberg,
Interxion’s Chief Executive Officer. “In response to customer
demand and orders, we are announcing today incremental investments
in Frankfurt, Paris, Marseille and Stockholm. Our recent equity
issuance and credit rating upgrade support our ongoing expansion
activity, with a focus on sustaining our attractive returns."
Quarterly Review
As previously noted, the implementation of International
Financial Reporting Standard 16 - Leases (“IFRS 16”) on 1 January
2019 reclassified certain expense items, thus impacting the
comparability of our results to periods prior to the implementation
of IFRS 16. This accounting change had no impact on our revenues or
underlying net cash flows. A reconciliation from Adjusted EBITDA
and Adjusted EBITDA margin reported after giving effect to IFRS 16
to corresponding measures excluding the impact of IFRS 16 are
provided later in this press release.
Revenue in the second quarter of 2019 was €158.5 million, a 14%
increase over the second quarter of 2018 and a 5% increase over the
first quarter of 2019. Recurring revenue was €150.0 million, a 14%
increase over the second quarter of 2018 and a 3% increase over the
first quarter of 2019. Recurring revenue in the second quarter
represented 95% of total revenue. On a constant currency(6) basis,
revenue in the second quarter of 2019 was 14% higher than in the
second quarter of 2018.
Cost of sales in the second quarter of 2019 was €54.7 million, a
2% increase over the second quarter of 2018 and a 9% increase over
the first quarter of 2019.
Gross profit was €103.7 million in the second quarter of 2019, a
22% increase over the second quarter of 2018 and a 3% increase over
the first quarter of 2019. Gross profit margin was 65.5% in the
second quarter of 2019, compared with 61.3% in the second quarter
of 2018 and 66.7% in the first quarter of 2019.
Sales and marketing costs in the second quarter of 2019 were
€9.4 million, a 2% decrease over the second quarter of 2018 and a
3% increase over the first quarter of 2019.
General and administrative costs, excluding the items we adjust
for in the determination of Adjusted EBITDA, were €14.2 million in
the second quarter of 2019, a 17% increase over the second quarter
of 2018 and a 4% decrease from the first quarter of 2019.
Depreciation and amortisation in the second quarter of 2019 were
€44.3 million, a 38% increase over the second quarter of 2018 and a
6% increase over the first quarter of 2019.
Operating income in the second quarter of 2019 was €29.6
million, an increase of 12% over the second quarter of 2018 and a
1% decrease from the first quarter of 2019.
Net finance expense for the second quarter of 2019 was €17.1
million, a 25% decrease from the second quarter of 2018 and a 3%
increase over the first quarter of 2019.
Income tax expense for the second quarter of 2019 was €3.6
million, a 30% increase over the second quarter of 2018 and a 24%
decrease from the first quarter of 2019.
Net income was €8.6 million in the second quarter of 2019, an
€8.0 million increase over the second quarter of 2018 and a 3%
increase from the first quarter of 2019.
Adjusted net income was €7.5 million in the second quarter of
2019, a 16% decrease from the second quarter of 2018 and a 6%
increase from the first quarter of 2019.
Adjusted EBITDA for the second quarter of 2019 was €80.2
million, a 26% increase over the second quarter of 2018 and a 4%
increase over the first quarter of 2019. Adjusted EBITDA margin was
50.6% in the second quarter of 2019 compared to 45.7% in the second
quarter of 2018 and 51.0% in the first quarter of 2019.
Adjusted EBITDA excluding the effects of IFRS 16 for the second
quarter was €71.5 million, a 13% increase over the second quarter
of 2018 and a 3% increase over the first quarter of 2019. Adjusted
EBITDA margin excluding the effects of IFRS 16 in the second
quarter of 2019, was 45.1%, compared to 45.7% in the second quarter
of 2018 and 45.7% in the first quarter of 2019.
Net cash flows from operating activities in the second quarter
of 2019 were €35.8 million compared to €31.6 million in the second
quarter of 2018 and €71.3 million in the first quarter of 2019.
Cash generated from operations(1) in the second quarter of 2019
was €71.8 million compared to €55.1 million in the second quarter
of 2018 and €79.9 million in the first quarter of 2019.
Capital expenditure, including intangible assets, in the second
quarter of 2019 were €123.5 million compared with €120.5 million in
the second quarter of 2018 and €144.1 million in the first quarter
of 2019.
Cash and cash equivalents were €55.6 million at 30 June 2019,
compared with €186.1 million at year end 2018.
Total borrowings and lease liabilities net of cash and cash
equivalents were €1,672.2 million in aggregate at 30 June 2019,
compared with €1,104.1 million at 31 December 2018. Excluding lease
liabilities, total borrowings were €1,276.7 million at 30 June
2019, compared with €1,239.8 million at 31 December 2018.
As at 30 June 2019, €40 million was drawn under Interxion’s €300
million unsecured revolving credit facility. The full amount was
repaid after the end of the quarter.
On 1 July 2019, Interxion issued 4.6 million ordinary shares in
a public offering generating net proceeds of €283.2 million.
Equipped space at the end of the second quarter of 2019 was
154,800 square metres, compared to 132,600 square metres at the end
of the second quarter of 2018 and 148,300 square metres at the end
of the first quarter of 2019. Revenue generating space at the end
of the second quarter of 2019 was 121,600 square metres, compared
to 106,200 square metres at the end of the second quarter of 2018
and 119,000 square metres at the end of the first quarter of 2019.
Utilisation rate, the ratio of revenue generating space to equipped
space, was 79% at the end of the second quarter of 2019, compared
to 80% at the end of the second quarter of 2018 and 80% at the end
of the first quarter of 2019.
Investment Initiatives in Frankfurt, Marseille, Stockholm and
Paris
In response to continued customer demand and orders, Interxion
will expand existing data centres in Frankfurt and Marseille and
construct a new data centre in Stockholm (“STO6”). Additionally,
Interxion has added to its land ownership in Paris.
In Frankfurt, Interxion will add capacity in its FRA15 data
centre by constructing Phases 3 and 4. These phases will add an
additional 4,700 square metres of equipped space and are scheduled
to open in 3Q 2021. The capital expenditure associated with the
final two phases of FRA15 is expected to be approximately €40
million.
In Marseille, Interxion will construct the second phase of its
MRS3 data centre. This phase will provide approximately 2,400 sqm
of equipped space and is scheduled to open in 3Q 2020. The capital
expenditure associated with this phase of MRS3 is expected to be
approximately €31 million.
In Stockholm, STO6 will be constructed in four phases,
delivering a total of 3,300 sqm of equipped space and 5 megawatts
(“MW”) of customer available power when fully built out. The first
phase of STO6, which is expected to provide approximately 500 sqm,
is scheduled to open in 2Q 2020. The second phase is expected to
provide approximately 600 sqm and is scheduled to open in 4Q 2020.
The capital expenditure associated with the first two phases of
STO6 is expected to be approximately €21 million.
In Paris, Interxion completed the acquisition of the land on
which its PAR7 data centre is located, for €19 million. The PAR7
site is adjacent to additional land of 68,000 sqm, over which we
have a purchase option. This site has an industrial zoning rating
and access to 50 MW of available power.
Business Outlook
Interxion today is reaffirming guidance for Revenue, Adjusted
EBITDA and Capital expenditure (including intangibles) for full
year 2019:
Revenue
€632 million – €647 million
Adjusted EBITDA
€324 million – €334 million
Capital expenditure (including
intangibles)
€570 million – €600 million
Conference Call to Discuss Results
Interxion will host a conference call today at 8:30 a.m. ET
(1:30 p.m. BST, 2:30 p.m. CET) to discuss the results.
To participate on this call, U.S. callers may dial toll free
1-866-966-1396; callers outside the U.S. may dial direct +44 (0)
2071 928 000. The conference ID for this call is INXN. This event
also will be webcast live over the Internet in listen-only mode at
investors.interxion.com.
A replay of this call will be available shortly after the call
concludes and will be available until 21 August 2019. To access the
replay, U.S. callers may dial toll free 1-866-331-1332; callers
outside the U.S. may dial direct +44 (0) 3333 009 785. The replay
access number is 3364477.
Forward-looking Statements
This communication contains forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such forward-looking statements. Factors that could cause actual
results and future events to differ materially from Interxion’s
expectations include, but are not limited to, the difficulty of
reducing operating expenses in the short term, the inability to
utilise the capacity of newly planned data centres and data centre
expansions, significant competition, the cost and supply of
electrical power, data centre industry over-capacity, performance
under service level agreements, delays in remediating the material
weakness in internal control over financial reporting and/or making
disclosure controls and procedures effective, certain other risks
detailed herein and other risks described from time to time in
Interxion’s filings with the United States Securities and Exchange
Commission (the “SEC”).
Interxion does not assume any obligation to update the
forward-looking information contained in this press release.
Non-IFRS Financial Measures
These materials include non-IFRS financial measures and ratios,
including (i) Adjusted EBITDA; (ii) Adjusted EBITDA margin, (iii)
Adjusted EBITDA excluding the impact of IFRS 16; (iv) Adjusted
EBITDA margin excluding the impact of IFRS 16; (v) Recurring
revenue; (vi) Revenue on a constant currency basis; (vii) Adjusted
net income; (viii) Adjusted basic earnings per share; (ix) Adjusted
diluted earnings per share and (x) Cash generated from operations,
that are not required by, or presented in accordance with,
IFRS.
Other companies may present Adjusted EBITDA, Adjusted EBITDA
margin, Adjusted EBITDA excluding the impact of IFRS 16, Adjusted
EBITDA margin excluding the impact of IFRS 16, Recurring revenue,
Revenue on a constant currency basis, Adjusted net income, Adjusted
basic earnings per share, Adjusted diluted earnings per share and
Cash generated from operations differently than we do. None of
these measures are measures of financial performance under IFRS and
should not be considered as a measure of liquidity or as an
alternative to Profit for the period attributable to shareholders
(“Net income”) or as indicators of our operating performance or any
other measure of performance implemented in accordance with
IFRS.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA
excluding the impact of IFRS 16, Adjusted EBITDA margin excluding
the impact of IFRS 16, Recurring revenue and Revenue on a constant
currency basis
We define Adjusted EBITDA as Net income adjusted for income tax
expense, net finance expense and the following items, which may
occur in any period, and which management believes are not
representative of our operating performance:
- Depreciation and amortisation – property, plant and equipment
and intangible assets (except goodwill) are depreciated and
amortised on a straight-line basis over the estimated useful life.
We believe that these costs do not represent our operating
performance.
- Share-based payments – represents primarily the fair value at
the date of grant of employee equity awards, which is recognized as
an expense over the vesting period. In certain cases, the fair
value is redetermined for market conditions at each reporting date,
until the final date of grant is achieved. We believe that this
expense does not represent our operating performance.
- Income or expense related to the evaluation and execution of
potential mergers or acquisitions (“M&A”) – under IFRS, gains
and losses associated with M&A activity are recognized in the
period in which such gains or losses are incurred. We exclude these
effects because we believe they are not reflective of our ongoing
operating performance.
- Adjustments related to terminated and unused data centre sites
– these gains and losses relate to historical leases entered into
for certain brownfield sites, with the intention of developing data
centres, which were never developed, and for which management has
no intention of developing into data centres. We believe the impact
of gains and losses related to unused data centres is not
reflective of our business activities and our ongoing operating
performance.
In certain circumstances, we may also adjust for other items
that management believes are not representative of our current
ongoing performance. Examples include: adjustments for the
cumulative effect of a change in accounting principle or estimate,
impairment losses, litigation gains and losses or windfall gains
and losses. Adjusted EBITDA margin is defined as Adjusted EBITDA as
a percentage of revenue.
In addition, we present Adjusted EBITDA excluding the impact of
IFRS 16 for comparative purposes with regard to Adjusted EBITDA
presented in periods prior to 1 January 2019, the effective date of
IFRS 16. Adjusted EBITDA margin excluding the impact of IFRS 16 is
defined as Adjusted EBITDA excluding the impact of IFRS 16 as a
percentage of revenue.
For a reconciliation of Net income to Adjusted EBITDA and from
Adjusted EBITDA to Adjusted EBITDA excluding the impact of IFRS 16,
see the notes to the Condensed Consolidated Interim Financial
Statements. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin
excluding the impact of IFRS 16 and other key performance
indicators may not be indicative of our historical results of
operations based on IFRS, nor are they meant to be predictive of
future results under IFRS.
We define Recurring revenue as revenue incurred from colocation
and associated power charges, office space, amortised set-up fees,
cross-connects and certain recurring managed services (but
excluding any ad hoc managed services) provided by us directly or
through third parties, excluding rents received for the sublease of
unused sites. Management believes that the exclusion of these items
provides useful supplemental information to revenue from colocation
and associated power charges to aid investors in evaluating the
recurring revenue performance of our business. For a reconciliation
of Revenue to Recurring revenue, see the notes to the Condensed
Consolidated Interim Financial Statements.
We present constant currency information for revenue to provide
a framework for assessing how our underlying businesses performed
excluding the effect of foreign currency rate fluctuations. To
present this information, current and comparative prior period
results for entities reporting in currencies other than Euro are
converted into Euro using the average exchange rates from the prior
period rather than the actual exchange rates in effect during the
current period. We believe that revenue growth is a key indicator
of how a company is progressing from period to period and
presenting constant currency information for revenue provides
useful supplemental information to investors regarding our on-going
operational performance because it helps us and our investors
evaluate the on-going operating performance of the business after
removing the impact of currency exchange rates.
We believe Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin
excluding the impact of IFRS 16, Recurring revenue and Revenue on a
constant currency basis provide useful supplemental information to
investors regarding our ongoing operational performance. These
measures help us and our investors evaluate the ongoing operating
performance of the business after removing the impact of our
capital structure (primarily interest expense), our asset base
(primarily depreciation and amortisation) and the implementation of
new accounting standards. Management believes that the presentation
of Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS
16, when combined with the primary IFRS presentation of Net income,
provides a more complete analysis of our operating performance.
Management also believes the use of Adjusted EBITDA and Adjusted
EBITDA excluding the impact of IFRS 16 facilitates comparisons
between us and other data centre operators (including other data
centre operators that are REITs) and other infrastructure-based
businesses. Adjusted EBITDA excluding the impact of IFRS 16 is also
a relevant measure used in the financial covenants of our revolving
credit facility and our 4.75% Senior Notes due 2025. Pursuant to
the terms of our revolving credit facility and our 4.75% Senior
Notes due 2025, the calculation of Adjusted EBITDA for the purposes
of the financial covenants is determined in accordance with IFRS as
of the date of the financing agreements and therefore does not
include the impact of IFRS 16.
Adjusted net income, Adjusted basic earnings per share and
Adjusted diluted earnings per share
We define Adjusted net income as Net income adjusted for the
following items and the related income tax effect, which may occur
in any period, and which management believes are not reflective of
our operating performance:
- Income or expense related to the evaluation and execution of
potential mergers or acquisitions (“M&A”) – under IFRS, gains
and losses associated with M&A activity are recognized in the
period in which such gains or losses are incurred. We exclude these
effects because we believe they are not reflective of our ongoing
operating performance.
- Adjustments related to provisions – these adjustments are made
for adjustments in provisions that are not reflective of the
ongoing operating performance of Interxion. These adjustments may
include changes in provisions for onerous lease contracts.
- Adjustments related to capitalized interest – under IFRS, we
are required to calculate and capitalize interest allocated to the
investment in data centres and exclude it from Net income. We
believe that reversing the impact of capitalized interest provides
information about the impact of the total interest costs and
facilitates comparisons with other data centre operators.
In certain circumstances, we may also adjust for other items
that management believes are not representative of our current
ongoing performance. Examples include: adjustments for the
cumulative effect of a change in accounting principle or estimate,
impairment losses, litigation gains and losses or windfall gains
and losses.
Management believes that the exclusion of certain items listed
above provides useful supplemental information to Net income to aid
investors in evaluating the operating performance of our business
and comparing our operating performance with other data centre
operators and infrastructure companies. We believe the presentation
of Adjusted net income, when combined with Net income prepared in
accordance with IFRS, is beneficial to a complete understanding of
our performance. A reconciliation from reported Net income to
Adjusted net income is provided in notes to the Condensed
Consolidated Interim Financial Statements.
Adjusted basic earnings per share and Adjusted diluted earnings
per share amounts are determined on Adjusted net income.
Cash generated from operations
Cash generated from operations is defined as Net cash flows from
operating activities, excluding interest and corporate income tax
payments and receipts. Management believes that the exclusion of
these items provides useful supplemental information to Net cash
flows from operating activities to aid investors in evaluating the
cash generating performance of our business.
Additional Key Performance Indicators
In addition to Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin
excluding the impact of IFRS 16, Recurring revenue, Revenue on a
constant currency basis, Adjusted net income, Adjusted basic
earnings per share, Adjusted diluted earnings per share and Cash
generated from operations, our management also uses the following
key performance indicators as measures to evaluate our
performance:
- Equipped space: the amount of data centre space that, on the
date indicated, is equipped and either sold or could be sold,
without making any significant additional investments to common
infrastructure. Equipped space at a particular data centre may
decrease if either (a) the power requirements of customers at a
data centre change so that all or a portion of the remaining space
can no longer be sold because the space does not have enough power
capacity and/or common infrastructure to support it without further
investment or (b) if the design and layout of a data centre changes
to meet among others, fire regulations or customer requirements,
and necessitates the introduction of common space (such as
corridors) which cannot be sold to individual customers;
- Revenue generating space: the amount of Equipped space that is
under contract and billed on the date indicated;
- Utilisation rate: on the date indicated, Revenue generating
space as a percentage of Equipped space. Some Equipped space is not
fully utilised because of customers’ specific requirements
regarding the layout of their equipment. In practice, therefore,
Utilisation rate does not reach 100%.
IFRS 16 – Leases
We adopted International Financial Reporting Standard 16 –
Leases, from 1 January 2019. Under IFRS 16, operating leases are
recognized as right of use assets and lease liabilities, and
certain components of revenue are recognized as lease revenue.
The impact of IFRS 16 on revenue, gross profit, operating
income, Adjusted EBITDA, depreciation and amortisation and net
finance expense for the three-month and six-month periods ended 30
June 2019 and total assets and total liabilities as at 30 June 2019
is provided in the tables attached to this press release.
About Interxion
Interxion (NYSE:INXN) is a leading provider of carrier and
cloud-neutral colocation data centre services in Europe, serving a
wide range of customers through 53 data centres in 11 European
countries. Interxion’s uniformly designed, energy efficient data
centres offer customers extensive security and uptime for their
mission-critical applications. With over 700 connectivity
providers, 21 European Internet exchanges, and most leading cloud
and digital media platforms across its footprint, Interxion has
created connectivity, cloud, content and finance hubs that foster
growing customer communities of interest. For more information,
please visit www.interxion.com.
1 All of the following items are non-IFRS measures intended to
adjust for certain items and are not measures of financial
performance under IFRS: “Adjusted EBITDA”, “Adjusted EBITDA
margin”, “Adjusted EBITDA excluding the impact of IFRS 16”,
“Adjusted EBITDA margin excluding the impact of IFRS 16”,
“Recurring revenue”, “Revenue on a constant currency basis”,
“Adjusted net income”, “Adjusted basic earnings per share”,
“Adjusted diluted earnings per share” and “Cash generated from
operations”. Complete definitions can be found in the “Non-IFRS
Financial Measures” section in this press release. Reconciliations
of Net income to Adjusted EBITDA, Adjusted EBITDA to Adjusted
EBITDA excluding the impact of IFRS 16, Net income to Adjusted net
income and Revenue to Recurring revenue, can be found in the
financial tables later in this press release.
2 Capital expenditure, including intangible assets, represents
payments to acquire property, plant and equipment and intangible
assets, as recorded in the consolidated statement of cash flows as
“Purchase of property, plant and equipment” and “Purchase of
intangible assets”, respectively.
3 Equipped space is the amount of data centre space that, on the
date indicated, is equipped and either sold or could be sold,
without making any significant additional investments to common
infrastructure.
4 Revenue generating space is the amount of Equipped space that
is under contract and billed on the date indicated.
5 Utilisation rate represents Revenue generating space as a
percentage of Equipped space.
6 We present constant currency information to assess how our
underlying businesses performed excluding the effect of foreign
currency rate fluctuations. To present this information, current
and comparative prior period results for entities reporting in
currencies other than Euro are converted into Euro using the
average exchange rates from the prior period rather than the actual
exchange rates in effect during the current period.
INTERXION HOLDING NV CONDENSED CONSOLIDATED INCOME
STATEMENTS (in €'000 ― except per share data and where stated
otherwise) (unaudited)
Three Months Ended Six
Months Ended
Jun-30
Jun-30
Jun-30
Jun-30
2019
2018
2019
2018
Revenue
158,476
138,824
310,007
272,660
Cost of sales
(54,729
)
(53,701
)
(105,123
)
(106,398
)
Gross Profit
103,747
85,123
204,884
166,262
Other income
-
-
-
86
Sales and marketing costs
(9,397
)
(9,601
)
(18,551
)
(18,309
)
General and administrative costs
(64,798
)
(49,250
)
(126,942
)
(94,894
)
Operating income
29,552
26,272
59,391
53,145
Net finance expense
(17,148
)
(22,895
)
(33,810
)
(34,299
)
Share of result of equity-accounted investees, net of tax
(163
)
-
(163
)
-
Profit before income taxes
12,241
3,377
25,418
18,846
Income tax expense
(3,627
)
(2,795
)
(8,405
)
(6,608
)
Net income
8,614
582
17,013
12,238
Basic earnings per share(a): (€)
0.12
0.01
0.24
0.17
Diluted earnings per share(b): (€)
0.12
0.01
0.23
0.17
Number of shares outstanding at the end of the period
(shares in thousands)
71,888
71,609
71,888
71,609
Weighted average number of shares for Basic EPS (shares in
thousands)
71,876
71,481
71,843
71,455
Weighted average number of shares for Diluted EPS (shares in
thousands)
72,457
71,946
72,398
71,902
As at
Jun-30
Jun-30
Capacity metrics
2019
2018
Equipped space (in square meters)
154,800
132,600
Revenue generating space (in square meters)
121,600
106,200
Utilisation rate
79
%
80
%
(a) Basic earnings per share are calculated as net income
divided by the weighted average number of shares for Basic EPS.(b)
Diluted earnings per share are calculated as net income divided by
the weighted average number of shares for Diluted EPS.
INTERXION HOLDING NV NOTES TO CONDENSED CONSOLIDATED
INCOME STATEMENTS: REPORTING SEGMENT INFORMATION (in €'000 ―
except where stated otherwise) (unaudited)
Three Months
Ended Six Months Ended Jun-30 Jun-30
Jun-30 Jun-30
2019
2018
2019
2018
Consolidated Recurring revenue
149,975
131,709
295,253
258,671
Non-recurring revenue
8,501
7,115
14,754
13,989
Revenue
158,476
138,824
310,007
272,660
Net income
8,614
582
17,013
12,238
Net income margin
5.4
%
0.4
%
5.5
%
4.5
%
Operating income
29,552
26,272
59,391
53,145
Operating income margin
18.6
%
18.9
%
19.2
%
19.5
%
Adjusted EBITDA
80,158
63,431
157,435
124,306
Gross profit margin
65.5
%
61.3
%
66.1
%
61.0
%
Adjusted EBITDA margin
50.6
%
45.7
%
50.8
%
45.6
%
Total assets
2,743,383
1,975,113
2,743,383
1,975,113
Total liabilities(a)
2,082,604
1,368,236
2,082,604
1,368,236
Capital expenditure, including intangible assets(b)
(123,477
)
(120,515
)
(267,558
)
(216,709
)
France, Germany, the Netherlands,
and the UK Recurring revenue
100,673
87,317
197,536
170,771
Non-recurring revenue
4,962
4,196
9,399
8,653
Revenue
105,635
91,513
206,935
179,424
Operating income
33,584
30,311
66,896
57,946
Operating income margin
31.8
%
33.1
%
32.3
%
32.3
%
Adjusted EBITDA
62,935
51,388
124,056
99,366
Gross profit margin
66.3
%
63.2
%
66.9
%
62.2
%
Adjusted EBITDA margin
59.6
%
56.2
%
59.9
%
55.4
%
Total assets
1,968,376
1,360,299
1,968,376
1,360,299
Total liabilities(a)
623,050
275,898
623,050
275,898
Capital expenditure, including intangible assets(b)
(77,780
)
(82,556
)
(177,405
)
(153,130
)
Rest of Europe Recurring
revenue
49,302
44,392
97,717
87,900
Non-recurring revenue
3,539
2,919
5,355
5,336
Revenue
52,841
47,311
103,072
93,236
Operating income
20,628
18,643
41,637
38,242
Operating income margin
39.0
%
39.4
%
40.4
%
41.0
%
Adjusted EBITDA
32,593
27,171
64,835
54,742
Gross profit margin
69.8
%
65.0
%
70.8
%
66.3
%
Adjusted EBITDA margin
61.7
%
57.4
%
62.9
%
58.7
%
Total assets
685,304
443,999
685,304
443,999
Total liabilities(a)
210,740
84,045
210,740
84,045
Capital expenditure, including intangible assets(b)
(37,891
)
(29,805
)
(79,476
)
(52,472
)
Corporate and other
Operating income
(24,660
)
(22,682
)
(49,142
)
(43,043
)
Adjusted EBITDA
(15,370
)
(15,128
)
(31,456
)
(29,802
)
Total assets
89,703
170,815
89,703
170,815
Total liabilities(a)
1,248,814
1,008,293
1,248,814
1,008,293
Capital expenditure, including intangible assets(b)
(7,806
)
(8,154
)
(10,677
)
(11,107
)
(a) Certain comparative figures as at 30 June 2018
have been restated compared to the amounts disclosed on Form 6-K
furnished on 2 August 2018. For further details see Note 2 and Note
28 of our 2018 Consolidated Financial Statements included on Form
20-F, filed with the SEC on 30 April 2019.(b) Capital expenditure,
including intangible assets, represents payments to acquire
property, plant and equipment and intangible assets, as recorded in
the condensed consolidated statements of cash flows as "Purchase of
property, plant and equipment" and "Purchase of intangible assets,"
respectively.
INTERXION HOLDING NV NOTES TO
CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA
RECONCILIATION (in €'000 ― except where stated otherwise)
(unaudited)
Three Months Ended Six Months
Ended Jun-30 Jun-30
Jun-30 Jun-30
2019
2018
2019
2018
Reconciliation to Adjusted
EBITDA Consolidated Net income
8,614
582
17,013
12,238
Income tax expense
3,627
2,795
8,405
6,608
Profit before taxation
12,241
3,377
25,418
18,846
Share of result of equity-accounted investees, net of tax
163
-
163
-
Net finance expense
17,148
22,895
33,810
34,299
Operating income
29,552
26,272
59,391
53,145
Depreciation and amortisation
44,320
32,191
85,998
61,750
Share-based payments
5,725
3,927
11,405
7,249
Income or expense related to the evaluation and execution of
potential mergers or acquisitions:
M&A transaction costs(a)
561
1,041
641
2,248
Items related to sub-leases on unused data centre sites(b)
-
-
-
(86
)
Adjusted EBITDA(c)
80,158
63,431
157,435
124,306
France, Germany, the Netherlands,
and the UK Operating income
33,584
30,311
66,896
57,946
Depreciation and amortisation
29,010
20,818
56,417
40,903
Share-based payments
341
259
743
603
Items related to sub-leases on unused data centre sites(b)
-
-
-
(86
)
Adjusted EBITDA(c)
62,935
51,388
124,056
99,366
Rest of Europe
Operating income
20,628
18,643
41,637
38,242
Depreciation and amortisation
11,728
8,223
22,608
15,971
Share-based payments
237
305
590
529
Adjusted EBITDA(c)
32,593
27,171
64,835
54,742
Corporate and Other
Operating loss
(24,660
)
(22,682
)
(49,142
)
(43,043
)
Depreciation and amortisation
3,582
3,150
6,973
4,876
Share-based payments
5,147
3,363
10,072
6,117
Income or expense related to the evaluation and execution of
potential mergers or acquisitions: M&A transaction costs(a)
561
1,041
641
2,248
Adjusted EBITDA(c)
(15,370
)
(15,128
)
(31,456
)
(29,802
)
(a) “M&A transaction costs” are costs associated with
the evaluation, diligence and conclusion or termination of merger
or acquisition activity. These costs are included in “General and
administrative costs.” (b) “Items related to sub-leases on unused
data centre sites” represents the income on sub-lease of portions
of unused data centre sites to third parties. This income is
treated as “Other income.” (c) “Adjusted EBITDA” is a non-IFRS
financial measure. See “Non-IFRS Financial Measures” for more
information, including why we believe Adjusted EBITDA is useful,
and the limitations on the use of Adjusted EBITDA.
INTERXION
HOLDING NV CONDENSED CONSOLIDATED BALANCE SHEET (in
€'000 ― except where stated otherwise) (unaudited)
As
at Jun-30 Dec-31
2019
2018
Non-current assets Property, plant and equipment
1,878,533
1,721,064
Right-of-use assets
438,556
-
Intangible assets
66,492
64,331
Goodwill
38,900
38,900
Deferred tax assets
24,607
21,807
Investment in associate
3,583
-
Other investments
12,606
7,906
Other non-current assets
15,934
16,843
2,479,211
1,870,851
Current assets Trade receivables and other current assets
208,611
205,613
Cash and cash equivalents
55,561
186,090
264,172
391,703
Total assets
2,743,383
2,262,554
Shareholders’ equity Share capital
7,188
7,170
Share premium
564,592
553,425
Foreign currency translation reserve
2,965
3,541
Hedging reserve, net of tax
(179
)
(165
)
Accumulated profit
86,213
69,449
660,779
633,420
Non-current liabilities Borrowings
1,235,214
1,266,813
Lease liabilities
423,508
-
Deferred tax liabilities
16,912
16,875
Other non-current liabilities
17,974
34,054
1,693,608
1,317,742
Current liabilities Trade payables and other current
liabilities
311,880
280,877
Lease liabilities
27,563
-
Income tax liabilities
8,048
7,185
Borrowings
41,505
23,330
388,996
311,392
Total liabilities
2,082,604
1,629,134
Total liabilities and shareholders’ equity
2,743,383
2,262,554
INTERXION HOLDING NV NOTES TO THE CONDENSED
CONSOLIDATED BALANCE SHEET: BORROWINGS AND LEASE LIABILITIES NET OF
CASH AND CASH EQUIVALENTS (in €'000 ― except where stated
otherwise) (unaudited)
As at Jun-30
Dec-31
2019
2018
Borrowings and lease liabilities net of cash
and cash equivalents Cash and cash equivalents
55,561
186,090
4.75% Senior Notes due 2025(a)
1,189,060
1,188,387
Finance lease liabilities (IAS 17)(b)
-
50,374
Mortgages
50,411
51,382
Borrowings under our Revolving Facilities
37,248
-
Borrowings
1,276,719
1,290,143
Lease liabilities (IFRS 16)(b)
451,071
-
Total borrowings and lease liabilities
1,727,790
1,290,143
Borrowings and lease liabilities net of cash and
cash equivalents(c)
1,672,229
1,104,053
(a) The €1,200 million 4.75% Senior Notes due 2025 include a
premium on additional issuances and are shown after deducting
commissions, offering fees and expenses. (b) Under IFRS 16, finance
lease liabilities are included in the aggregated amount of lease
liabilities rather than presented separately. (c) Total borrowings
and lease liabilities exclude deferred financing costs of €2.3
million as of 31 December 2018 which were incurred in connection
with the €300 million Revolving Credit Facility, entered into on 18
June 2018. Total borrowings and lease liabilities include deferred
financing costs of €2.7 million as of 30 June 2019. The deferred
financing costs have been included as during the second quarter the
Group has drawn €40.0 million under the Revolving Credit Facility.
INTERXION HOLDING NV CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in €'000 ― except where stated
otherwise) (unaudited)
Three Months Ended Six
Months Ended Jun-30 Jun-30
Jun-30 Jun-30
2019
2018
2019
2018(a) Net income
8,614
582
17,013
12,238
Depreciation and amortisation
44,320
32,191
85,998
61,750
Share-based payments
5,395
3,646
10,501
6,863
Net finance expense
17,148
22,895
33,810
34,299
Share of result of equity-accounted investees, net of tax
163
-
163
-
Income tax expense
3,627
2,795
8,405
6,608
79,267
62,109
155,890
121,758
Movements in trade receivables and other assets
(17,549
)
(13,858
)
(36,753
)
(20,055
)
Movements in trade payables and other liabilities
10,035
6,858
32,481
11,486
Cash generated from operations
71,753
55,109
151,618
113,189
Interest and fees paid(a)
(29,435
)
(18,600
)
(34,300
)
(38,831
)
Income tax paid
(6,529
)
(4,893
)
(10,188
)
(8,166
)
Net cash flows from operating activities
35,789
31,616
107,130
66,192
Cash flows used in investing activities Purchase of
property, plant and equipment
(119,972
)
(117,534
)
(260,667
)
(211,751
)
Financial investments - deposits
(4
)
114
12,591
280
Acquisition of associate
(3,745
)
-
(3,745
)
-
Purchase of intangible assets
(3,505
)
(2,981
)
(6,891
)
(4,958
)
Loans provided
(2,375
)
(834
)
(2,814
)
(1,251
)
Net cash flows used in investing activities
(129,601
)
(121,235
)
(261,526
)
(217,680
)
Cash flows from financing activities Proceeds from exercised
options
432
1,186
684
1,257
Repayment of mortgages
(548
)
(4,948
)
(1,020
)
(5,496
)
Proceeds from revolving credit facilities
40,000
69,376
40,000
148,814
Repayment of revolving facilities
-
(250,724
)
-
(250,724
)
Proceeds 4.75% Senior Notes
-
990,000
-
990,000
Principal elements of lease payments (2018: Financial lease
obligation)
(8,356
)
-
(14,885
)
-
Repayment 6.00% Senior Secured Notes
-
(634,375
)
-
(634,375
)
Transaction costs 4.75% Senior Notes
-
(1,192
)
(200
)
(1,192
)
Transaction costs revolving credit facility
(142
)
(1,636
)
(745
)
(1,636
)
Net cash flows from financing activities
31,386
167,687
23,834
246,648
Effect of exchange rate changes on cash
(189
)
159
33
(81
)
Net increase / (decrease) in cash and cash equivalents
(62,615
)
78,227
(130,529
)
95,079
Cash and cash equivalents, beginning of period
118,176
55,336
186,090
38,484
Cash and cash equivalents, end of period
55,561
133,563
55,561
133,563
(a) Interest and fees paid is reported net of cash interest
capitalized, which is reported as part of “Purchase of property,
plant and equipment."
INTERXION HOLDING NV NOTES
TO CONDENSED CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET: IFRS
16 IMPACT RECONCILIATION (in €'000) (unaudited)
Three
Months Ended Six Months Ended
Jun-30
Effect ofchange dueto IFRS 16
Jun-30
Jun-30
Effect ofchange dueto IFRS 16
Jun-30
2019
2019
2019
2019
As Reported
Excl. IFRS 16
As Reported
Excl. IFRS 16
Consolidated Recurring
revenue
149,975
-
149,975
295,253
-
295,253
Non-recurring revenue
8,501
-
8,501
14,754
-
14,754
Revenue
158,476
-
158,476
310,007
-
310,007
Gross profit
103,747
7,014
96,733
204,884
13,637
191,247
Gross profit margin
65.5
%
4.5
%
61.0
%
66.1
%
4.4
%
61.7
%
Operating income
29,552
1,265
28,287
59,391
2,799
56,593
Adjusted EBITDA
80,158
8,610
71,548
157,435
16,605
140,830
Adjusted EBITDA margin
50.6
%
5.4
%
45.1
%
50.8
%
5.4
%
45.4
%
Depreciation and amortisation
44,320
7,345
36,975
85,998
13,806
72,193
Net finance expense
17,148
3,072
14,076
33,810
6,151
27,659
France, Germany, the Netherlands,
and the UK Recurring revenue
100,673
-
100,673
197,536
-
197,536
Non-recurring revenue
4,962
-
4,962
9,399
-
9,399
Revenue
105,635
-
105,635
206,935
-
206,935
Operating income
33,584
1,130
32,454
66,896
2,271
64,625
Adjusted EBITDA
62,935
5,536
57,399
124,056
10,663
113,392
Adjusted EBITDA margin
59.6
%
5.3
%
54.3
%
59.9
%
5.1
%
54.8
%
Rest of Europe Recurring
revenue
49,302
-
49,302
97,717
-
97,717
Non-recurring revenue
3,539
-
3,539
5,355
-
5,355
Revenue
52,841
-
52,841
103,072
-
103,072
Operating income
20,628
132
20,496
41,637
508
41,128
Adjusted EBITDA
32,593
2,583
30,009
64,835
4,981
59,854
Adjusted EBITDA margin
61.7
%
4.9
%
56.8
%
62.9
%
4.8
%
58.1
%
Corporate and Other
Operating income
(24,660
)
3
(24,663
)
(49,142
)
20
(49,162
)
Adjusted EBITDA
(15,370
)
491
(15,861
)
(31,456
)
961
(32,417
)
As at
Jun-30
Effect ofchangedue to IFRS 16
Jun-30
2019
2019
As Reported
Excl. IFRS 16
Consolidated Non-current
assets
2,479,211
408,447
2,070,763
Current assets
264,172
(18,551
)
282,723
Non-current liabilities
1,693,608
368,478
1,325,130
Current liabilities
388,996
23,995
365,001
France, Germany, the Netherlands,
and the UK Total assets
1,968,376
280,707
1,687,669
Total liabilities
623,050
282,618
340,433
Rest of Europe Total
assets
685,304
105,928
579,376
Total liabilities
210,740
106,586
104,154
Corporate and Other
Total assets
89,703
3,261
86,443
Total liabilities
1,248,814
3,268
1,245,546
INTERXION HOLDING NV NOTES TO CONDENSED
CONSOLIDATED INCOME STATEMENTS: ADJUSTED NET INCOME
RECONCILIATION (in €'000 ― except per share data and where
stated otherwise) (unaudited)
Three Months
Ended Six Months Ended
Jun-30
Jun-30
Jun-30
Jun-30
2019
2018
2019
2018
Net income - as reported
8,614
582
17,013
12,238
Add back + Charges related to termination of
financing arrangements(a)
-
11,171
-
11,171
+ M&A transaction costs
561
1,041
641
2,248
561
12,212
641
13,419
Reverse - Interest capitalized
(2,102
)
(1,181
)
(3,982
)
(2,065
)
(2,102
)
(1,181
)
(3,982
)
(2,065
)
Tax effect of above add backs & reversals
385
(2,758
)
835
(2,839
)
Adjusted net income
7,458
8,855
14,507
20,753
Reported basic EPS: (€)
0.12
0.01
0.24
0.17
Reported diluted EPS: (€)
0.12
0.01
0.23
0.17
Adjusted basic EPS: (€)
0.10
0.12
0.20
0.29
Adjusted diluted EPS: (€)
0.10
0.12
0.20
0.29
(a) These charges relate to the repayment of the 6.00%
Senior Secured Notes due 2020 and the termination of our revolving
credit facility agreements in 2Q18.
INTERXION
HOLDING NV Status of Announced Expansion Projects as at 7
August 2019 with Target Open Dates after 31 March 2019
CAPEX(a)(b)
Equipped Space(a)
Market Project
(€ million)
(sqm)
Schedule Amsterdam AMS10: Phases 1 - 3 New Build
195
9,500
4Q 2019 - 3Q 2020(c) Copenhagen CPH2: Phases 3 - 5
18
1,500
2Q 2018 - 4Q 2019(d) Dusseldorf DUS2: Phase 3
5
500
1Q 2019 - 2Q 2019(e) Frankfurt FRA14: Phases 1 - 2 New Build
76
4,600
3Q 2019 - 4Q 2019(f) Frankfurt FRA15: Phases 1 - 4 New Build
177
9,600
2Q 2020 - 3Q 2021(g) London LON3: New Build
35
1,800
1Q 2019 - 3Q 2019(h) Madrid MAD3: New Build
44
2,700
2Q 2019 - 4Q 2019(i) Marseille MRS2: Phase 2 - 4
72
4,200
2Q 2018 - 4Q 2019(j) Marseille MRS3: Phases 1 - 2 New Build
111
4,700
1Q 2020 - 3Q 2020(k) Paris PAR7.2: Phase B (cont.) - C
47
2,500
2Q 2018 -2Q 2019(l) Stockholm STO5: Phases 2 - 3
19
1,200
1Q 2018 - 2Q 2019(m) Stockholm STO6: Phase 1 - 2 New Build
21
1,100
2Q 2020 - 4Q 2020(n) Vienna VIE2: Phase 7 - 9
96
4,500
4Q 2017 - 4Q 2019(o) Zurich ZUR1: Phase 6
10
100
4Q 2019(p) Zurich ZUR2: Phases 1 - 2 New Build
93
3,600
3Q 2020(q)
Total
1,019
52,100
(a) CAPEX and Equipped space are approximate and may
change. SQM figures are rounded to nearest 100 sqm unless otherwise
noted, and totals may not add due to rounding. (b) CAPEX reflects
the total spend for the projects listed at full power and capacity
and the amounts shown in the table above may be invested over time.
(c) AMS10: Phase 1 (2,700 sqm) is scheduled to open in 4Q 2019;
phase 2 (4,100 sqm) is scheduled to open in 1Q 2020, phase 3 (2,700
sqm) is scheduled to open in 3Q 2020. (d) CPH2: Phases 3 and 4 (900
sqm total) opened in 2Q 2018; phase 5 (600 sqm) is scheduled to
open in 4Q 2019. (e) DUS2: Phase 3 partially opened (300 sqm) in 1Q
2019 and the remaining 200 sqm opened in 2Q 2019. (f) FRA14: Phase
1 (2,400 sqm) is scheduled to open in 3Q 2019; phase 2 (2,200 sqm)
is scheduled to open in 4Q 2019. (g) FRA15: Phase 1 (2,300 sqm) is
scheduled to open in 2Q 2020, Phase 2 (2,600 sqm) is scheduled to
open in 4Q 2020, Phase 3 (2,400 sqm) is scheduled to open in 1Q
2021and Phase 4 (2,400 sqm) scheduled to open in 3Q 2021. (h) LON3:
Phase 1 (300 sqm) opened in 1Q 2019 and Phase 2 (600 sqm) opened in
2Q 2019. Phase 3 (900 sqm) is scheduled to open in 3Q 2019. (i)
MAD3: 1,300 sqm opened in 2Q 2019, 700 sqm is scheduled to open in
3Q 2019 and 700 sqm is scheduled to open in 4Q 2019. (j) MRS2:
Phase 2 (700 sqm) opened in 2018; Phase 3 (1,100 sqm) opened in 2Q
2019 and Phase 4 (2,500 sqm) is scheduled to open in 3Q - 4Q 2019.
(k) MRS3: Phase 1 (2,300 sqm) is scheduled to open in 1Q 2020 and
Phase 2 (2,400 sqm) is scheduled to open in 3Q 2020. (l) PAR7.2:
Phase B (cont.) (500 sqm) opened in 2Q 2018; Phase C part (1,500
sqm) opened in 4Q 2018 and the remaining part (500 sqm) opened in
2Q 2019. (m) STO5: Phases 2-3 - 100 sqm opened in 1Q 2018; 300 sqm
became operational in 2Q 2018; 800 sqm opened in 2Q 2019. (n) STO6:
Phase 1 (500 sqm) is scheduled to open in 2Q 2020 and Phase 2 (600
sqm) is scheduled to open in 4Q 2020. (o) VIE2: Phases 7-9; 2,300
sqm opened in 4Q 2017 through 3Q 2018; 2,000 sqm opened in 2Q 2019.
The remaining 200 sqm is scheduled to open in 4Q 2019. (p) ZUR1:
Phase 6 (100 sqm) is scheduled to open in 4Q 2019. (q) ZUR2: Phase
1 and Phase 2 are scheduled to open in 3Q 2020 (together 3,600
sqm).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005362/en/
Interxion Jim Huseby Investor Relations Tel: +1-813-644-9399
IR@interxion.com
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