0001193125-16-576167.txt : 20160504 0001193125-16-576167.hdr.sgml : 20160504 20160504071408 ACCESSION NUMBER: 0001193125-16-576167 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20160504 FILED AS OF DATE: 20160504 DATE AS OF CHANGE: 20160504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: InterXion Holding N.V. CENTRAL INDEX KEY: 0001500866 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35053 FILM NUMBER: 161617385 BUSINESS ADDRESS: STREET 1: TUPOLEVLAAN 24 STREET 2: 1119 NX CITY: Schiphol-Rijk STATE: P7 ZIP: 00000 BUSINESS PHONE: 31 20 880 7600 MAIL ADDRESS: STREET 1: TUPOLEVLAAN 24 STREET 2: 1119 NX CITY: Schiphol-Rijk STATE: P7 ZIP: 00000 6-K 1 d176985d6k.htm FORM 6-K FORM 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated 4 May 2016

(Commission File No. 001-35053)

 

 

INTERXION HOLDING N.V.

(Translation of Registrant’s Name into English)

 

 

Tupolevlaan 24, 1119 NX Schiphol-Rijk, The Netherlands, +31 20 880 7600

(Address of Principal Executive Office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F  x    Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) ):  ¨

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 


This report contains Interxion Holding N.V.’s Condensed Consolidated Interim Financial Statements as at and for the three-month period ended 31 March 2016.

The interim report was prepared in accordance with the indenture (the “Indenture”) dated as of 3 July 2013 among Interxion Holding N.V., as Issuer, the guarantors named therein, The Bank of New York Mellon, London Branch, as Trustee, principal paying agent and transfer agent, The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg paying agent and registrar, and Barclays Bank PLC, as Security Trustee.

This Report on Form 6-K is incorporated by reference into the Registration Statement on Form S-8 of the Registrant originally filed with the Securities and Exchange Commission on 23 June 2011 (File No. 333-175099) and into the Registration Statement on Form S-8 of the Registrant originally filed with the Securities and Exchange Commission on 2 June 2014 (File No. 333-196447).

 

Exhibit

    
99.1    The Interxion Holding N.V. Condensed Consolidated Interim Financial Statements as at and for the three-month period ended 31 March 2016.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  INTERXION HOLDING N.V.
By:  

/s/ David C. Ruberg

Name:   David C. Ruberg
Title:   Chief Executive Officer

Date: 4 May 2016

EX-99.1 2 d176985dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Interxion Holding NV

Condensed Consolidated Interim Financial Statements

as at and for the three-month period ended

31 March 2016

 

Schiphol-Rijk, 4 May 2016


LOGO

 

Financial Highlights

 

    Revenue increased by 10% to €102.0 million (1Q 2015: €92.5 million).

 

    Recurring Revenue increased by 12% to €97.2 million (1Q 2015: €87.1 million).

 

    Adjusted EBITDA1 increased by 13% to €45.9 million (1Q 2015: €40.6 million).

 

    Adjusted EBITDA margin increased to 45.0% (1Q 2015: 43.9%).

 

    Net profit increased to €10.2 million (1Q 2015: €4.4 million).

 

    Adjusted net profit1 increased by 13% to €10.0 million (1Q 2015: €8.9 million).

 

    Earnings per diluted share were €0.14 (1Q 2015: €0.06).

 

    Adjusted earnings per diluted share1 were €0.14 (1Q 2015: €0.13).

 

    Capital Expenditures, including intangible assets2, were €50.0 million (1Q 2015: €67.6 million).

 

    Subsequent to the quarter end, Interxion issued €150 million of 6.00% Senior Secured Notes due 2020 at 104.50%.

Operating Highlights

 

    Equipped Space increased by 400 square metres to 101,600 square metres.

 

    Revenue Generating Space increased by 1,300 square metres to 80,400 square metres.

 

    Utilisation Rate at the end of the quarter was 79%.

 

    Interxion’s tenth data centre in Frankfurt (FRA10) opened in the first quarter, with 1,200 square metres becoming available. Interxion’s second data centre in Copenhagen (CPH2) opened subsequent to the end of the first quarter, with 500 square metres becoming available.

Quarterly Review

Revenue in the first quarter of 2016 was €102.0 million, a 10% increase over the first quarter of 2015 and a 1% increase over the fourth quarter of 2015. Recurring revenue was €97.2 million, a 12% increase over the first quarter of 2015 and a 2% increase over the fourth quarter of 2015. Recurring revenue in the quarter was 95% of total revenue.

 

 

1  Adjusted EBITDA, Adjusted net profit, and Adjusted earnings per diluted share are non-IFRS figures intended to adjust for unusual items and are not measures of financial performance under IFRS. Full definitions can be found in the “Use of non-IFRS information” section later in this interim report. Reconciliations of Adjusted EBITDA and Adjusted net profit to Net profit can be found in the tables later in this interim report.
2  Capital expenditures, including intangible assets, represent 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.

 

2

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Cost of sales in the first quarter of 2016 was €39.1 million, an 8% increase over the first quarter of 2015 and a slight decrease over the fourth quarter of 2015.

Gross profit was €62.9 million in the first quarter of 2016, a 12% increase over the first quarter of 2015 and a 2% increase over the fourth quarter of 2015. Gross profit margin was 61.6% in the first quarter of 2016 compared to 60.8% in the first quarter of 2015 and 61.1% in the fourth quarter of 2015.

Sales and marketing costs in the first quarter of 2016 were €7.7 million, a 16% increase over the first quarter of 2015 and a 5% increase from the fourth quarter of 2015.

Other general and administrative costs were €9.2 million in the first quarter of 2016, a 4% increase over the first quarter of 2015 and a 1% increase from the fourth quarter of 2015. Other general and administrative costs exclude depreciation, amortisation, impairments, share-based payments, M&A transaction costs and provision for onerous lease contracts.

Adjusted EBITDA for the first quarter of 2016 was €45.9 million, a 13% increase over the first quarter of 2015 and a 2% increase over the fourth quarter of 2015. Adjusted EBITDA margin was 45.0% in the first quarter of 2016 compared to 43.9% in the first quarter of 2015 and 44.6% in the fourth quarter of 2015.

Depreciation, amortisation, and impairments in the first quarter of 2016 was €21.5 million, an increase of 18% from the first quarter of 2015 and a 6% increase from the fourth quarter of 2015.

Operating profit in the first quarter of 2016 was €22.9 million, an increase of 70% from the first quarter of 2015, and slight increase from the fourth quarter of 2015. Each of the first quarter 2015, fourth quarter 2015, and first quarter 2016 were impacted by M&A transaction related items. Excluding these items, operating profit was €23.1 million in the first quarter of 2016, an increase of 14% over the first quarter of 2015 and a 1% decrease over the fourth quarter of 2015.

Net finance costs for the first quarter of 2016 were €8.0 million, a 21% increase over the first quarter of 2015, and a 2% decrease from the fourth quarter of 2015.

Income tax expense for the first quarter of 2016 was €4.7 million, a 94% increase over the first quarter of 2015, and an 83% increase from the fourth quarter of 2015.

Net profit was €10.2 million in the first quarter of 2016, a 131% increase over the first quarter of 2015, and a 16% decrease from the fourth quarter of 2015.

Adjusted net profit was €10.0 million in the first quarter of 2016, a 13% increase over the first quarter of 2015, and a 17% decrease from the fourth quarter of 2015.

Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €50.4 million in the first quarter of 2016, compared to €34.2 million in the first quarter of 2015, and €38.1 million in the fourth quarter of 2015.

Capital expenditures, including intangible assets, were €50.0 million in the first quarter of 2016 compared to €67.6 million in the first quarter of 2015 and €42.0 million in the fourth quarter of 2015.

Cash and cash equivalents were €44.6 million at 31 March 2016, compared to €58.6 million at year end 2015.

 

Interim Report: Three-month period ended 31 March 2016   3
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Total borrowings, net of deferred revolving facility financing fees, were €554.9 million at 31 March 2016 compared to €555.1 million at year end 2015. As of 31 March 2016, the company’s revolving credit facility was undrawn. On 11 April 2016, the Company issued €150 million of 6.00% Senior Secured Notes due 2020, raising net proceeds of approximately €155 million.

Equipped space at the end of the first quarter of 2016 was 101,600 square metres compared to 94,800 square metres at the end of the first quarter of 2015 and 101,200 square metres at the end of the fourth quarter of 2015. Utilisation rate, the ratio of revenue-generating space to equipped space, was 79% at the end of the first quarter of 2016, compared with 78% at the end of the first quarter of 2015 and 78% at the end of the fourth quarter of 2015.

 

4

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Further Information for Noteholders

This Interim Report was prepared in accordance with IAS 34 and intended to comply with the requirements in the indenture (the “Indenture”) dated as of 3 July 2013 among Interxion Holding NV, as Issuer, the guarantors named therein, The Bank of New York Mellon, London Branch, as Trustee, principal paying agent and transfer agent; The Bank of New York Mellon (Luxembourg) S.A., as Luxembourg paying agent and registrar, and Barclays Bank PLC, as Security Trustee.

The information in this Interim Report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, the words “believes”, “anticipates”, “plans”, “expects”, “intends”, and similar expressions are intended to identify forward-looking statements. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the difficulty of reducing operating expenses in the short term, 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, and other risks described from time to time in Interxion’s filings with the Securities and Exchange Commission. All forward-looking statements in this document are based on information available to us as of the date of this Interim Report and we assume no obligation to update any such forward-looking statements.

Use of Non-IFRS Information

EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments, M&A transaction costs, increase/(decrease) in provision for onerous lease contracts and income from sub-leases of unused data centre sites. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. We present EBITDA, Adjusted EBITDA and Adjusted EBITDA margin as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in our €100 million revolving facility and our 6.00% Senior Secured Notes due 2020. A reconciliation from Profit for the period attributable to shareholders (“Net profit”) to EBITDA and EBITDA to Adjusted EBITDA is provided in the notes to our consolidated interim financial statements (Note 5).

Adjusted net profit is defined as Net profit excluding the impact of M&A transaction costs, adjustments for onerous lease contracts, interest capitalised, and the related corporate income tax effect with respect to the foregoing items.

Adjusted diluted earnings per share amounts are determined on Adjusted net profit. A reconciliation from reported Net profit to Adjusted net profit is provided on the next page.

Other companies may, however, present EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net profit differently than we do. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net profit are not measures of financial performance under IFRS and should not be considered as an alternative to operating profit or as a measure of liquidity or an alternative to Net profit as indicators of our operating performance or any other measure of performance implemented in accordance with IFRS.

 

Interim Report: Three-month period ended 31 March 2016   5
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

     For the three months ended  
     31 Mar
2016
     31 Mar
2015
 
    

(€ in thousands - except

per share data)

 

Net Profit - as reported

     10,219         4,425   

Add back

     

+ M&A transaction costs

     229         6,887   
  

 

 

    

 

 

 
     229         6,887   

Reverse

     

- Adjustments to onerous lease contracts

     —           (100

- Interest Capitalised

     (465      (923
  

 

 

    

 

 

 
     (465      (1,023

Tax effect of above add backs & reversals

     59         (1,400
  

 

 

    

 

 

 

Adjusted Net Profit

     10,042         8,889   
  

 

 

    

 

 

 

Reported basic earnings per share: (€)

     0.15         0.06   

Reported diluted earnings per share: (€)

     0.14         0.06   

Adjusted basic earnings per share: (€)

     0.14         0.13   

Adjusted diluted earnings per share: (€)

     0.14         0.13   

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 42 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 600 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.

 

6

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Condensed Consolidated Interim Income Statements

 

            For the three months ended  
            31 Mar 2016     31 Mar 2015  
     Note      €’000     €’000  

Revenue

     5         102,000        92,482   

Cost of sales

     5         (39,119     (36,282
     

 

 

   

 

 

 

Gross profit

        62,881        56,200   

Other income

     5         98        63   

Sales and marketing costs

     5         (7,724     (6,679

General and administrative costs

     5         (32,386     (36,159
     

 

 

   

 

 

 

Operating profit

        22,869        13,425   

Finance income

     6         145        1,208   

Finance expense

     6         (8,103     (7,793
     

 

 

   

 

 

 

Profit before taxation

        14,911        6,840   

Income tax expense

     7         (4,692     (2,415
     

 

 

   

 

 

 

Profit for the period attributable to shareholders

        10,219        4,425   
     

 

 

   

 

 

 

Earnings per share

       

Basic earnings per share: (€)

        0.15        0.06   

Diluted earnings per share: (€)

        0.14        0.06   

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Interim Report: Three-month period ended 31 March 2016   7
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Condensed Consolidated Interim Statements of Comprehensive Income

 

     For the three months ended  
     31 Mar 2016     31 Mar 2015  
     €’000     €’000  

Profit for the period attributable to shareholders

     10,219        4,425   

Other comprehensive income

    

Items that are, or may be, reclassified subsequently to profit or loss:

    

Foreign currency translation differences

     (6,706     13,943   

Effective portion of changes in fair value of cash flow hedge

     (97     (36

Tax on items that are, or may be, reclassified subsequently to profit or loss

     845        (1,178
  

 

 

   

 

 

 

Other comprehensive income/(loss) for the period, net of tax

     (5,958     12,729   
  

 

 

   

 

 

 

Total comprehensive income attributable to shareholders

     4,261        17,154   
  

 

 

   

 

 

 

The foreign currency translation differences are primarily related to exchange rate differences on equities and permanent loans in GBP.

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

8

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Condensed Consolidated Interim Statements of Financial Position

 

As at           31 Mar 2016     31 Dec 2015  
     Note      €’000     €’000  

Non-current assets

       

Property, plant and equipment

     8         1,020,125        999,072   

Intangible assets

        24,600        23,194   

Deferred tax assets

        21,705        23,024   

Financial assets

        924        —     

Other non-current assets

        7,501        6,686   
        1,074,855        1,051,976   

Current assets

       

Trade receivables and other current assets

        134,419        141,534   

Cash and cash equivalents

        44,612        58,554   
        179,031        200,088   

Total assets

        1,253,886        1,252,064   

Shareholders’ equity

       

Share capital

        7,017        6,992   

Share premium

        510,598        507,296   

Foreign currency translation reserve

        14,972        20,865   

Hedging reserve, net of tax

        (278     (213

Accumulated deficit

        (17,304)        (27,523)   
        515,005        507,417   

Non-current liabilities

       

Trade payables and other liabilities

        12,387        12,049   

Deferred tax liabilities

        9,251        9,951   

Borrowings

     10         550,614        550,812   
     

 

 

   

 

 

 
        572,252        572,812   

Current liabilites

       

Trade payables and other liabilities

        156,301        162,629   

Income tax liabilities

        4,730        2,738   

Provision for onerous lease contracts

        647        1,517   

Borrowings

     10         4,951        4,951   
     

 

 

   

 

 

 
        166,629        171,835   
     

 

 

   

 

 

 

Total liabilities

        738,881        744,647   
     

 

 

   

 

 

 

Total liabilities and shareholders’ equity

        1,253,886        1,252,064   
     

 

 

   

 

 

 

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Interim Report: Three-month period ended 31 March 2016   9
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

 

     Share
capital
     Share
premium
     Foreign
currency
translation
reserve
    Hedging
reserve
    Accumu-
lated
deficit
    Total equity  
     €’000      €’000      €’000     €’000     €’000     €’000  

Balance at 1 January 2016

     6,992         507,296         20,865        (213     (27,523     507,417   

Profit for the period

     —           —           —          —          10,219        10,219   

Other comprehensive income/(loss), net of tax

     —           —           (5,893     (65     —          (5,958
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     —           —           (5,893     (65     10,219        4,261   

Exercise of options

     25         1,901         —          —          —          1,926   

Share-based payments

     —           1,401         —          —          —          1,401   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total contribution by, and distributions to, owners of the Company

     25         3,302         —          —          —          3,327   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 31 March 2016

     7,017         510,598         14,972        (278     (17,304     515,005   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 1 January 2015

     6,932         495,109         10,440        (247     (76,089     436,145   

Profit for the period

     —           —           —          —          4,425        4,425   

Other comprehensive income, net of tax

     —           —           12,753        (24     —          12,729   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     —           —           12,753        (24     4,425        17,154   

Exercise of options

     24         2,122         —          —          —          2,146   

Share-based payments

     —           1,950         —          —          —          1,950   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total contribution by, and distributions to, owners of the Company

     24         4,072         —          —          —          4,096   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Balance at 31 March 2015

     6,956         499,181         23,193        (271     (71,664     457,395   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

10

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Condensed Consolidated Interim Statements of Cash Flows

 

     For the three months ended  
     31 Mar
2016
    31 Mar
2015
 
     €’000     €’000  

Net profit

     10,219        4,425   

Depreciation, amortisation and impairments

     21,478        18,215   

Provision for onerous lease contracts

     (880     (925

Share-based payments

     1,401        2,241   

Net finance expense

     7,958        6,585   

Income tax expense

     4,692        2,415   
  

 

 

   

 

 

 
     44,868        32,956   
  

 

 

   

 

 

 

Movements in trade receivables and other current assets

     5,041        (1,631

Movements in trade payables and other liabilities

     506        2,874   
  

 

 

   

 

 

 

Cash generated from operations

     50,415        34,199   
  

 

 

   

 

 

 

Interest and fees paid (a)

     (14,362     (13,574

Interest received

     7        49   

Income tax paid

     (1,054     (2,320
  

 

 

   

 

 

 

Net cash flows from / (used in) operating activities

     35,006        18,354   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchase of property, plant and equipment

     (47,446     (65,318

Purchase of intangible assets

     (2,556     (2,252
  

 

 

   

 

 

 

Net cash flows from / (used in) investing activities

     (50,002     (67,570
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from exercised options

     1,926        2,178   

Repayment of mortgages

     (320     (320
  

 

 

   

 

 

 

Net cash flows from / (used in) financing activities

     1,606        1,858   

Effect of exchange rate changes on cash

     (552     1,417   
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     (13,942     (45,941

Cash and cash equivalents, beginning of period

     58,554        99,923   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

     44,612        53,982   
  

 

 

   

 

 

 

(a) Interest paid is reported net of cash interest capitalised, which is reported as part of “Purchase of property, plant and equipment.”

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Interim Report: Three-month period ended 31 March 2016   11
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Notes to the Condensed Consolidated Interim Financial Statements

 

1 The Company

Interxion Holding NV (the “Company”) is domiciled in The Netherlands. The address of the Company’s registered office is Tupolevlaan 24, 1119 NX, Schiphol-Rijk, The Netherlands. The Consolidated Interim Financial Statements of the Company as at and for the three month periods ended 31 March 2016 comprise the Company and its subsidiaries (together referred to as the “Group”). The Group is a leading pan-European operator of carrier neutral Internet data centres.

 

2 Basis of preparation

a) Statement of compliance

The Condensed Consolidated Interim Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 Interim Financial Reporting. They do not include all the information required for full annual financial statements, and should be read in conjunction with the audited Consolidated Financial Statements of the Group as at and for the year ended 31 December 2015; these are contained in the 2015 Annual Report (Form 20-F) as filed with the Securities and Exchange Commission on 31 March 2016, which is publicly available on the company’s website – www.interxion.com, or from the SEC website – www.sec.gov.

b) Estimates, judgment and seasonality

The preparation of Condensed Consolidated Interim Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In preparing these Condensed Consolidated Interim Financial Statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the Consolidated Financial Statements as at and for the year ended 31 December 2015 in the 2015 Annual Report (Form 20-F).

The Group’s operations are not significantly exposed to seasonality.

 

3 Significant accounting policies

The accounting policies applied by the Group in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year ended 31 December 2015 in the 2015 Annual Report (Form 20-F), if necessary amended to include new Standards and Interpretations effective as of 1 January 2016. Compared with the accounting principles as applied in the 2015 financial statements these new Standards and Interpretations did not have a significant impact on the financial position or performance of the Group.

 

4 Financial risk management

The Group’s financial risk management objectives and policies are consistent with those disclosed in the audited Consolidated Financial Statements in the 2015 Annual Report (Form 20-F).

 

12

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

5 Information by segment

Operating segments are to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.

There are two segments: the first is The Big4 which comprises France, Germany, The Netherlands and the United Kingdom; the second is Rest of Europe, which comprises Austria, Belgium, Denmark, Ireland, Spain, Sweden and Switzerland. Shared expenses, such as corporate management, general and administrative expenses, loans and borrowings, and related expenses and income tax assets and liabilities, are stated in Corporate and other.

The performance of the operating segments is primarily assessed based on the measures of revenue (including recurring and non-recurring revenue components), EBITDA and Adjusted EBITDA. Other information provided, except as noted below, to the Board of Directors is measured in a manner consistent with that in the financial statements.

 

Interim Report: Three-month period ended 31 March 2016   13
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

           Rest of           Corporate        
For the three months ended 31 March 2016    Big4     Europe     Subtotal     and other     Total  
     €’000     €’000     €’000     €’000     €’000  

Recurring revenue

     62,266        34,945        97,211        —          97,211   

Non-recurring revenue

     3,276        1,513        4,789        —          4,789   

Revenue

     65,542        36,458        102,000        —          102,000   

Cost of sales

     (24,644     (12,079     (36,723     (2,396     (39,119
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit/(loss)

     40,898        24,379        65,277        (2,396     62,881   

Other income

     98        —          98        —          98   

Sales and marketing costs

     (1,773     (1,376     (3,149     (4,575     (7,724

General and administrative costs

     (17,541     (7,736     (25,277     (7,109     (32,386
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit/(loss)

     21,682        15,267        36,949        (14,080     22,869   

Net finance expense

  

        (7,958
          

 

 

 

Profit before tax

  

        14,911   
          

 

 

 

Total assets

     876,049        317,481        1,193,530        60,356        1,253,886   

Total liabilities

     187,441        56,436        243,877        495,004        738,881   

Capital expenditure, including intangible assets*

     (36,757     (10,282     (47,039     (2,963     (50,002

Depreciation, amortisation, impairments

     (14,292     (6,144     (20,436     (1,042     (21,478

Adjusted EBITDA

     36,181        21,515        57,696        (11,776     45,920   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
For the three months ended 31 March 2015    Big4     Rest of
Europe
    Subtotal     Corporate
and other
    Total  
     €’000     €’000     €’000     €’000     €’000  

Recurring revenue

     54,983        32,068        87,051        —          87,051   

Non-recurring revenue

     3,627        1,804        5,431        —          5,431   

Revenue

     58,610        33,872        92,482        —          92,482   

Cost of sales

     (22,293     (11,989     (34,282     (2,000     (36,282
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit/(loss)

     36,317        21,883        58,200        (2,000     56,200   

Other income

     63        —          63        —          63   

Sales and marketing costs

     (1,806     (1,357     (3,163     (3,516     (6,679

General and administrative costs

     (15,091     (7,179     (22,270     (13,889     (36,159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit/(loss)

     19,483        13,347        32,830        (19,405     13,425   

Net finance expense

  

        (6,585
          

 

 

 

Profit before tax

  

        6,840   
          

 

 

 

Total assets

     824,515        312,666        1,137,181        51,580        1,188,761   

Total liabilities

     181,390        58,898        240,288        491,078        731,366   

Capital expenditure, including intangible assets*

     (33,766     (33,125     (66,891     (679     (67,570

Depreciation, amortisation, impairments

     (11,717     (5,435     (17,152     (1,063     (18,215

Adjusted EBITDA

     31,370        18,978        50,348        (9,743     40,605   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* 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.

 

14

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Reconciliation to adjusted EBITDA

     For the three months ended  
     31 Mar      31 Mar  
     2016      2015  
Consolidated    €’000      €’000  

Profit for the period attributable to shareholders

     10,219         4,425   

Income tax expense

     4,692         2,415   
  

 

 

    

 

 

 

Profit before taxation

     14,911         6,840   

Finance income

     (145      (1,208

Finance expense

     8,103         7,793   
  

 

 

    

 

 

 

Operating profit

     22,869         13,425   

Depreciation, amortisation and impairments

     21,478         18,215   
  

 

 

    

 

 

 

EBITDA(1)

     44,347         31,640   

Share-based payments

     1,442         2,241   

Increase/(decrease) in provision for onerous lease contracts

     —           (100

M&A transaction costs(2)

     229         6,887   

Income from sub-leases of unused data centre sites

     (98      (63
  

 

 

    

 

 

 

Adjusted EBITDA(1)

     45,920         40,605   
  

 

 

    

 

 

 
     For the three months ended  
     31 Mar      31 Mar  
     2016      2015  
Big4    €’000      €’000  

Operating profit

     21,682         19,483   

Depreciation, amortisation and impairments

     14,292         11,717   
  

 

 

    

 

 

 

EBITDA(1)

     35,974         31,200   

Share-based payments

     305         333   

Increase/(decrease) in provision for onerous lease contracts

     —           (100

Income from sub-leases of unused data centre sites

     (98      (63
  

 

 

    

 

 

 

Adjusted EBITDA(1)

     36,181         31,370   
  

 

 

    

 

 

 

 

Interim Report: Three-month period ended 31 March 2016   15
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

     For the three months ended  
     31 Mar      31 Mar  
     2016      2015  
Rest of Europe    €’000      €’000  

Operating profit

     15,267         13,347  

Depreciation, amortisation and impairments

     6,144         5,435  
  

 

 

    

 

 

 

EBITDA(1)

     21,411         18,782  

Share-based payments

     104         196  
  

 

 

    

 

 

 

Adjusted EBITDA(1)

     21,515         18,978  
  

 

 

    

 

 

 
     For the three months ended  
     31 Mar      31 Mar  
     2016      2015  
Corporate and other    €’000      €’000  

Operating profit/(loss)

     (14,080      (19,405

Depreciation, amortisation and impairments

     1,042         1,063  
  

 

 

    

 

 

 

EBITDA(1)

     (13,038      (18,342

Share-based payments

     1,033         1,712  

M&A transaction costs(2)

     229         6,887  
  

 

 

    

 

 

 

Adjusted EBITDA(1)

     (11,776      (9,743
  

 

 

    

 

 

 

 

(1) EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments, M&A transaction costs, increase/(decrease) in provision for onerous lease contracts and income from sub-leases on unused data centre sites. We present EBITDA and Adjusted EBITDA as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in our €100 million revolving facility and our 6.00% Senior Secured Notes due 2020. Other companies may, however, present EBITDA and Adjusted EBITDA differently. EBITDA and Adjusted EBITDA are not measures of financial performance under IFRS and should not be considered as an alternative to operating profit or as a measure of liquidity, or an alternative to net income as indicators of our operating performance or any other measure of performance implemented in accordance with IFRS.
(2) “M&A transaction costs” are costs associated with the evaluation, diligence and conclusion or termination of merger or acquisition activity. In the quarter ended 31 March 2015, M&A transaction costs included €6.9 million related to the abandoned merger with TelecityGroup. In the quarter ended 31 March 2016, M&A transaction costs included €0.2 million related to other activity including the evaluation of potential asset acquisitions.

 

16

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

6 Finance income and expense

 

     For the three months ended  
     31 Mar
2016
     31 Mar
2015
 
     €’000      €’000  

Foreign currency exchange gains

     142         1,178   

Bank and other interest

     3         30   
  

 

 

    

 

 

 

Finance income

     145         1,208   
  

 

 

    

 

 

 

Interest expense on Senior Secured Notes, bank and other loans

     (6,917      (6,583

Interest expense on finance leases

     (827      (720

Interest expense on provision for onerous lease contracts

     (11      (39

Other financial expenses

     (348      (451
  

 

 

    

 

 

 

Finance expense

     (8,103      (7,793
  

 

 

    

 

 

 

Net finance expense

     (7,958      (6,585
  

 

 

    

 

 

 

The “Interest expense on provision for onerous lease contracts” relates to the unwinding of the discount rate used to calculate the “Provision for onerous lease contracts”.

 

7 Income tax expense

The Group’s consolidated effective tax rate of 31%, in respect of continuing operations for the three months ended 31 March 2016, was affected by the non-tax-deductible share-based payments. The effective tax rate for the three months ended 31 March 2015 was 35%.

 

8 Property, plant and equipment

Acquisitions

During the three months ended 31 March 2016, the Group acquired tangible fixed assets (primarily data-centre-related assets) at a cost of €49,460,000 (three months ended 31 March 2015: €53,600,000).

Capitalised interest relating to borrowing costs for the three months ended 31 March 2016 amounted to €465,000 (three months ended 31 March 2015: €923,000). The cash effect of the interest capitalised for the three months ended 31 March 2016 amounted to €1,041,000, which in the Statement of Cash Flows is presented under “Purchase of property, plant and equipment” (three months ended 31 March 2015: €1,969,000).

 

Interim Report: Three-month period ended 31 March 2016   17
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

Capital commitments

At 31 March 2016, the Group had outstanding capital commitments of €117,200,000. These commitments are expected to be substantially settled during the remainder of 2016.

On 15 March 2016 the Group entered into a contract to lease properties in Marseille, France. The lease, which covers land and buildings, will commence during the second quarter of 2016.

 

9 Financial Instruments

Fair values versus carrying amounts

As of 31 March 2016, the market price of the 6.00% Senior Secured Notes due 2020 was 105.875 (31 March 2015: 108.034). Using this market price, the fair value of the Senior Secured Notes due 2020 would have been approximately €503 million (31 March 2015: €514 million), compared with their nominal value of €475 million (31 March 2015: €475 million).

At 31 March 2016, the Group had a cash flow hedge carried at a negative fair value, to hedge the interest rate risk of part of two mortgages.

As of 31 March 2016, the fair value of all mortgages were equal to their carrying amount of €43.8 million. As of 31 March 2016, the fair value of the financial lease liabilities were €41.3 million compared with the carrying amount of €34.7 million.

The carrying amounts of other financial assets and liabilities approximate their fair value.

Fair values and hierarchy

The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Company’s Audit Committee.

When measuring the fair value of an asset or a liability, the Company uses observable market data to the extent possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

 

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

 

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

 

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

 

18

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

The values of the instruments are:

 

     Carrying
value
     Fair value  
    

 

     Level 1      Level 2      Level 3  

31 March 2016

           

Senior secured notes 6.00% due 2020

     (475,470      (503,000      —           —     

Finance leases

     (34,690      —           (41,323      —     

Mortgages

     (43,800      —           (43,800      —     

Interest rate swap

     (418      —           (418      —     

Financial asset

     924         —           —           924   

31 December 2015

           

Senior secured notes 6.00% due 2020

     (475,503      (502,000      —           —     

Finance leases

     (34,582      —           (41,012      —     

Mortgages

     (44,073      —           (44,073      —     

Interest rate swap

     (321      —           (321      —     

No changes in levels of hierarchy, or transfers between levels, occurred in the reporting period. Fair values were obtained from quoted market prices in active markets or, where no active market exists, by using valuation techniques. Valuation techniques include discounted cash flow models using inputs as market interest rates and cash flows.

The financial asset which is in Level 3 as from 2016, represents a bridge loan given by Interxion Participation 1 B.V.

 

10 Borrowings

As at 31 March 2016, our €100.0 million revolving facility was undrawn.

 

11 Related party transactions

In the first three months of 2016, the Board of Directors approved a conditional award of 121,849 performance shares to certain members of key management, including the Executive Director. The conditional award of 61,469 performance shares to the Executive Director is subject to the approval of the Annual General Meeting of Shareholders, which is anticipated to be held in June 2017.

 

Interim Report: Three-month period ended 31 March 2016   19
These Condensed Consolidated Interim Financial Statements are unaudited


LOGO

 

12 Subsequent events

Mortgage

On 8 April 2016, the Group completed a €14.6 million financing. The facility is secured by a mortgage on the data centre property in Vienna (Austria), acquired by Interxion Real Estate VII GmbH in January 2015, a pledge on the lease agreement, and is guaranteed by Interxion Real Estate Holding B.V. The facility has a maturity of fourteen years and nine months, and has a variable interest rate based on EURIBOR plus 195 basis points. The principal amount is to be repaid in 177 monthly instalments, increasing from €76,000 to €91,750. The first monthly installment of €76,000 is due on 30 April 2016, and a final repayment of €91,750 is due on 31 December 2030.

Additional notes under Indenture 3 July 2013

On 14 April 2016, the Company completed the issuance of additional €150 million aggregate principal amount of its 6.00% Senior Secured Notes due 2020 (the “Notes”). The net proceeds of the offering were approximately € 155 million. The Notes are guaranteed by certain subsidiaries of the Company. The Notes were issued under the indenture dated July 3, 2013 pursuant to which the Company has previously issued €475 million in aggregate principal amount of 6.00% Senior Secured Notes due 2020.

 

20

  

Interim Report: Three-month period ended 31 March 2016

These Condensed Consolidated Interim Financial Statements are unaudited

GRAPHIC 3 g176985g50s02.jpg GRAPHIC begin 644 g176985g50s02.jpg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g176985g59v24.jpg GRAPHIC begin 644 g176985g59v24.jpg M_]C_X 02D9)1@ ! 0$ E@"6 #_X@Q824-#7U!23T9)3$4 0$ Q(3&EN M;P(0 !M;G1R4D="(%A96B 'S@ " D !@ Q !A8W-P35-&5 !)14,@ M0 9&5S8P 2D! M\@'Z @,"# (4 AT")@(O C@"00)+ E0"70)G G$">@*$ HX"F *B JP"M@+! M LL"U0+@ NL"]0, PL#%@,A RT#. -# T\#6@-F W(#?@.* Y8#H@.N [H# MQP/3 ^ #[ /Y! 8$$P0@!"T$.P1(!%4$8P1Q!'X$C 2:!*@$M@3$!-,$X03P M!/X%#044%]@8&!A8&)P8W!D@& M609J!GL&C :=!J\&P ;1!N,&]0<'!QD'*P<]!T\'80=T!X8'F0>L![\'T@?E M!_@("P@?"#((1@A:"&X(@@B6"*H(O@C2".<(^PD0"24).@E/"60)>0F/":0) MN@G/">4)^PH1"B<*/0I4"FH*@0J8"JX*Q0K<"O,+"PLB"SD+40MI"X +F NP M"\@+X0OY#!(,*@Q##%P,=0R.#*<,P S9#/,-#0TF#4 -6@UT#8X-J0W##=X- M^ X3#BX.20YD#G\.FPZV#M(.[@\)#R4/00]>#WH/E@^S#\\/[! )$"800Q!A M$'X0FQ"Y$-<0]1$3$3$13Q%M$8P1JA')$>@2!Q(F$D429!*$$J,2PQ+C$P,3 M(Q-#$V,3@Q.D$\43Y10&%"<4211J%(L4K13.%/ 5$A4T%585>!6;%;T5X!8# M%B86219L%H\6LA;6%OH7'1=!%V47B1>N%](7]Q@;&$ 891B*&*\8U1CZ&2 9 M11EK&9$9MQG=&@0:*AI1&G<:GAK%&NP;%!L[&V,;BANR&]H< APJ'%(<>QRC M',P<]1T>'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB 5($$@ M;""8(,0@\"$<(4@A=2&A(B>K)]PH#2@_*'$H MHBC4*08I."EK*9TIT"H"*C4J:"J;*L\K BLV*VDKG2O1+ 4L.2QN+*(LURT, M+4$M=BVK+>$N%BY,+H(NMR[N+R0O6B^1+\<-]1B)&9T:K1O!'-4=[1\!( M!4A+2)%(UTD=26-)J4GP2C=*?4K$2PQ+4TN:2^),*DQR3+I- DU*39--W$XE M3FY.MT\ 3TE/DT_=4"=0<5"[40914%&;4>92,5)\4L=3$U-?4ZI3]E1"5(]4 MVU4H5755PE8/5EQ6J5;W5T17DE?@6"]8?5C+61I9:5FX6@=:5EJF6O5;15N5 M6^5<-5R&7-9=)UUX7&EYL7KU?#U]A7[-@!6!78*I@_&%/8:)A]6))8IQB M\&-#8Y=CZV1 9)1DZ64]99)EYV8]9I)FZ&<]9Y-GZ6@_:)9H[&E#:9II\6I( M:I]J]VM/:Z=K_VQ7;*]M"&U@;;EN$FYK;L1O'F]X;]%P*W"&<.!Q.G&5&YXS'DJ>8EYYWI& M>J5[!'MC>\)\(7R!?.%]07VA?@%^8G["?R-_A'_E@$> J($*@6N!S8(P@I*" M](-7@[J$'82 A..%1X6KA@Z&I+CDTV3MI0@E(J4 M])5?EAMJ(FHI:C!J-VH^:D5J3'I3BEJ:8:IHNF_:=NI^"H M4JC$J3>IJ:H_ MR#W(O,DZR;G*.,JWRS;+MLPUS+7--:6YQ_GJ>@RZ+SI1NG0ZEOJ MY>MPZ_OLANT1[9SN*.ZT[T#OS/!8\.7Q7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*S MM+6VM[BYNL+#Q,7&Q\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ M_\0 'P$ P$! 0$! 0$! 0 $" P0%!@<("0H+_\0 M1$ @$"! 0# M! <%! 0 0)W $" Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O 58G+1 M"A8D-.$E\1<8&1HF)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI M:G-T=79W>'EZ@H.$A8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZ MPL/$Q<;'R,G*TM/4U=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H # ,! (1 M Q$ /P#V_6Y-0CL\Z3'')/N&1)TV]^XJY$S;%\P /@;L=,US/Q$MHSI*W7S" M6-@BD,1P>O%5O&UNBZ=I]XA99RR1;@QZ;2>GUJU%-(SVC2_:&N%5W9R2_?)_*HO$6EV MR^++&/#;;MMTOSGJ6[>GX4U%!S,[DL N6( '4FD21)%W1NKCU4YKB=<2&VU> MSTGR;J2PAC,C0Q$LSDECSSDCBGZ8OE>((%TVPO;:RG4QSQRHP7.#S_*APT#G M.T+JH)8@ =232A@1D=ZX32-&M[O7M3LI&D^QV[<1[R-QYQD^W-7/%NBP6L"Z ME;MM,)3?&SG$@& /0\4N5;7'S=3K\UG))J?]MNC11#3O+RKY^;=_G/:L#P[ M9PZQJKV=T[R_V M9)F!RQR,DC\>GZT^1=PYWN=Z9$! + %N@SUIV17"7&C0-X/347:5KM8E=7+G MY1D #Z5TFF6<5_I5G<7&YI7@0L0Q&3M'I2<4NHU*^A'XITF]UB!+:WFBBA^ M\^\')/;%4]5T+5=2LK2WEN[<"##-A",L,@$>VTUOWEXEJI+JS81I/E]%Q_B* MB?4D$/FQQO(N]4XP.6QCK]ZMQY.'?Y#S(,\CVP M:75]"O;Y[&[CNHX[ZU&&;;\K'KD?C6JFHHUT\&Q@T?WLD:5V'*C*T?1M4LM6EO)KJW<7+9F"J03UQCTY-+J>CZE?: MM#.]S ;2"0.D3*>G'7U-;/VZ(6PN&R(RX3GL=VW^=,_M&-@H@1YBQ;:$QR%( M!/YD4>GUP*VDO8G@DF7<4C3?GU&W/%-BOU=PCQO&Y*_*V.C9P>.W!I\S%RH MQ8M#U32YIUT6ZA6VG;=LE7/EGV_2@>&KF'1I+.VN(S-=.6N9)%)W>P]*UH-7 MMYH0Z*_*!MI'/) ^IR/SJPEV&MY)2C+Y>=RY!/ SVXIV":**748L=E#' M;);HI\M&#*,YY!S_ #I'LH7.?F5@6.Y6(/)R1GT.*** $%A" RC<$9/+*!CM M(QCI]*([.*,@_,S9#;F8D\=.?09/%%%,1&FFVL?W(\9C6+.3]U>GX^]3)9Q) K%)'R1+G>222V1CK]***0QC6%NXG7R\"?&_!ZXZ'VJTH & , < "BB@#_V0$! end