EX-99.1 2 d480585dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Press Release, 1 November 2017

Interxion Reports Third Quarter 2017 Results

18% Year Over Year Revenue Growth and Strong Bookings

Driven By Growing Demand Across Our Target Segments

AMSTERDAM 1 November 2017 – Interxion Holding NV (NYSE: INXN), a leading European provider of carrier and cloud-neutral colocation data centre services, announced its results today for the three months ended 30 September 2017.

Financial Highlights

 

    Revenue increased by 18% to €124.6 million (3Q 2016: €105.3 million).

 

    Recurring revenue1 increased by 17% to €117.4 million (3Q 2016: €100.0 million).

 

    Net income decreased by 4% to €10.1 million (3Q 2016: €10.5 million).

 

    Adjusted net income2 increased by 24% to €10.7 million (3Q 2016: €8.6 million).

 

    Earnings per diluted share decreased to €0.14 (3Q 2016: €0.15).

 

    Adjusted earnings2 per diluted share increased to €0.15 (3Q 2016: €0.12).

 

    Adjusted EBITDA2 increased by 16% to €56.2 million (3Q 2016: €48.3 million).

 

    Adjusted EBITDA margin decreased to 45.1% (3Q 2016: 45.9%).

 

    Capital expenditures, including intangible assets3, were €75.2 million (3Q 2016: €64.5 million).

 

1


LOGO

Press Release, 1 November 2017

 

Operating Highlights

 

    Equipped space4 increased by 1,900 square metres in the quarter to 118,900 square metres.

 

    Revenue generating space4 increased by 2,100 square metres in the quarter to 97,100 square metres.

 

    Utilisation rate at the end of the quarter was 82%.

 

    During the third quarter, Interxion completed the following major expansions:

 

    1,100 sqm expansion in Frankfurt,

 

    300 sqm expansion in Stockholm, and

 

    400 sqm expansion in Zurich.

“Interxion delivered strong financial and operational results in the third quarter, with 18% revenue growth year-over-year, driven by 21% revenue growth in our Big 4 markets and 14% growth in the Rest of Europe,” said David Ruberg, Interxion’s Chief Executive Officer. “Strong and well diversified bookings in the quarter confirmed the value of our communities of interest and reflect the growing demand that we are experiencing across our European footprint and in our target segments. Consequently, we are increasing our full year revenue guidance and narrowing Adjusted EBITDA guidance to the top end of our previously announced range.”

Quarterly Review

Revenue in the third quarter of 2017 was €124.6 million, an 18% increase over the third quarter of 2016 and a 3% increase over the second quarter of 2017. Recurring revenue was €117.4 million, a 17% increase over the third quarter of 2016 and a 3% increase over the second quarter of 2017. Recurring revenue in the third quarter represented 94% of total revenue. On an organic constant currency5 basis, revenue in the third quarter of 2017 was 17% higher than in the third quarter of 2016 and 4% higher than in the second quarter of 2017.

 

2


LOGO

Press Release, 1 November 2017

 

Cost of sales in the third quarter of 2017 was €49.6 million, a 22% increase over the third quarter of 2016 and a 4% increase over the second quarter of 2017.

Gross profit was €75.0 million in the third quarter of 2017, a 16% increase over the third quarter of 2016 and a 3% increase over the second quarter of 2017. Gross profit margin was 60.2% in the third quarter of 2017, compared with 61.3% in the third quarter of 2016 and 60.3% in the second quarter of 2017.

Sales and marketing costs in the third quarter of 2017 were €8.2 million, a 13% increase over the third quarter of 2016 and flat compared to the second quarter of 2017.

Other general and administrative costs, which exclude depreciation, amortisation, impairments, share-based payments and M&A transaction costs were €10.6 million in the third quarter of 2017, a 19% increase over the third quarter of 2016 and a 3% increase from the second quarter of 2017.

Depreciation, amortisation, and impairments in the third quarter of 2017 was €27.8 million, a 26% increase from the third quarter of 2016 and a 2% increase from the second quarter of 2017.

Operating income in the third quarter of 2017 was €25.0 million, an increase of 6% from the third quarter of 2016 and flat compared to the second quarter of 2017.

Net finance expense for the third quarter of 2017 was €10.8 million, a 26% increase over the third quarter of 2016 and a 1% decrease over the second quarter of 2017.

Income tax expense for the third quarter of 2017 was €4.1 million, a 9% decrease compared with the third quarter of 2016 and an 11% increase from the second quarter of 2017.

Net income was €10.1 million in the third quarter of 2017, a 4% decrease over the third quarter of 2016 and a 3% decrease from the second quarter of 2017.

 

3


LOGO

Press Release, 1 November 2017

 

Adjusted net income was €10.7 million in the third quarter of 2017, a 24% increase over the third quarter of 2016 and a 5% increase from the second quarter of 2017.

Adjusted EBITDA for the third quarter of 2017 was €56.2 million, a 16% increase over the third quarter of 2016 and a 3% increase over the second quarter of 2017.

Adjusted EBITDA margin was 45.1% in the third quarter of 2017, compared with 45.9% in the third quarter of 2016 and 45.0% in the second quarter of 2017.

Net cash flows from operating activities were €32.5 million in the third quarter of 2017, compared with €23.2 million in the third quarter of 2016 and €35.7 million in the second quarter of 2017.

Cash generated from operations6, was €55.2 million in the third quarter of 2017, compared with €43.5 million in the third quarter of 2016 and €40.6 million in the second quarter of 2017.

Capital expenditures, including intangible assets, were €75.2 million in the third quarter of 2017, compared with €64.5 million in the third quarter of 2016 and €56.4 million in the second quarter of 2017.

Cash and cash equivalents were €38.2 million at 30 September 2017, compared with €115.9 million at year end 2016.

Total borrowings, net of deferred revolving facility financing fees, were €806.8 million at 30 September 2017, compared with €735.0 million at year end 2016.

All of the capacity metrics below do not include Interxion Science Park.

Equipped space at the end of the third quarter of 2017 was 118,900 square metres, compared with 107,800 square metres at the end of the third quarter of 2016 and 117,000 square metres at the end of the second quarter of 2017.

Revenue generating space at the end of the third quarter of 2017 was 97,100 square metres, compared with 84,100 square metres at the end of the third quarter of 2016 and 95,000 square metres at the end of the second quarter of 2017.

 

4


LOGO

Press Release, 1 November 2017

 

Utilisation rate, the ratio of revenue-generating space to equipped space, was 82% at the end of the third quarter of 2017, compared with 78% at the end of the third quarter of 2016 and 81% at the end of the second quarter of 2017.

Land Purchase in Frankfurt; Expansion in Dublin and Zurich

Interxion today announced the expansion of its Frankfurt campus footprint and the further build out of its DUB3 and ZUR1 data centres.

In Frankfurt, Interxion has expanded its campus footprint by purchasing a parcel of land which can accommodate a data centre of over 7,000 square metres of equipped space. The capital expenditure associated with the Frankfurt land purchase is approximately €10 million.

In Dublin, Interxion will expand its DUB3 data centre by constructing an additional 1,200 square metres of equipped space and adding approximately 1 MW of customer available power. The additional 1,200 square metres of equipped space at DUB3 is scheduled to open in the third quarter of 2018. Capital expenditure associated with the incremental space and power for DUB3 is expected to be approximately €17 million.

In Zurich, Interxion will expand its ZUR1 data centre by constructing an additional 400 square meters of equipped space, which is scheduled to become operational in the first quarter of 2018. The capital expenditure associated with this expansion is expected to be approximately €2 million.

The anticipated 2017 capital expenditure associated with the Frankfurt land purchase and the two data centre expansions is included in the 2017 capital expenditure guidance provided by the Company today.

 

5


LOGO

Press Release, 1 November 2017

 

Business Outlook

Interxion is updating its guidance for full year 2017, increasing its full year revenue guidance, narrowing Adjusted EBITDA guidance to the top end of its previously announced range, and reaffirming capital expenditures (including intangibles) guidance:

 

     Prior Guidance
(in millions)
   Revised Guidance
(in millions)

Revenue

   €468 – €483    €485 – €489

Adjusted EBITDA

   €212 – €222    €220 – €222

Capital expenditures (including intangibles)

   €250 – €270    €250 – €270

Capital expenditure guidance does not include €77.5 million for the acquisition of Interxion Science Park in 1Q 2017.

Conference Call to Discuss Results

Interxion will host a conference call today at 8:30 a.m. EDT (12:30 p.m. GMT, 1:30 p.m. CET) to discuss the results.

To participate on this call, U.S. callers may dial toll free 1-866-966-9439; callers outside the U.S. may dial direct +44 (0) 1452 555 566. 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 14 November 2017. To access the replay, U.S. callers may dial toll free 1-866-247-4222; callers outside the U.S. may dial direct +44 (0) 1452 550 000. The replay access number is 94232527.

 

6


LOGO

Press Release, 1 November 2017

 

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, 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 report.

Non-IFRS Financial Measures

Included in these materials are certain non-IFRS financial measures, which are measures of our financial performance that are not calculated and presented in accordance with IFRS, within the meaning of applicable SEC rules. These measures are as follows: (i) EBITDA; (ii) Adjusted EBITDA; (iii) Recurring revenue; (iv) Revenue on an organic constant currency basis; (v) Adjusted net income; (vi) Adjusted basic earnings per share, (vii) Adjusted diluted earnings per share and (viii) Cash generated from operations.

 

7


LOGO

Press Release, 1 November 2017

 

Other companies may present EBITDA, Adjusted EBITDA, Recurring revenue, Revenue on an organic 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. Each of these measures are not measures of financial performance under IFRS and should not be considered as an alternative to operating income or as a measure of liquidity or an alternative to Profit for the period attributable to shareholders (“net income”) as indicators of our operating performance or any other measure of performance implemented in accordance with IFRS.

EBITDA, Adjusted EBITDA, Recurring revenue and Revenue on an organic constant currency basis

We define EBITDA as net income plus income tax expense, net finance expense, depreciation, amortisation and impairment of assets.

We define Adjusted EBITDA as EBITDA adjusted for the following items, which may occur in any period, and which management believes are not representative of our operating performance:

 

    Share-based payments – primarily the fair value at the date of grant to employees of equity awards, are recognised as an employee expense over the vesting period. 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 recognised 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 are not reflective of our business activities and our on-going operating performance.

 

8


LOGO

Press Release, 1 November 2017

 

In certain circumstances, we may also adjust for other items that management believes are not representative of our current on-going 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.

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.

We believe EBITDA and Adjusted EBITDA and Recurring revenue provide useful supplemental information to investors regarding our on-going operational performance. These measures help us and our investors evaluate the on-going operating performance of the business after removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortisation). Management believes that the presentation of Adjusted EBITDA, 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 EBITDA and Adjusted EBITDA facilitates comparisons between us and other data centre operators (including other data centre operators that are REITs) and other infrastructure based businesses. EBITDA and Adjusted EBITDA are also relevant measures used in the financial covenants of our €100.0 million revolving credit facility, our €100.0 million senior secured revolving facility and our 6.00% Senior Secured Notes due 2020.

A reconciliation from net income to EBITDA and from EBITDA to Adjusted EBITDA is provided in the tables attached to this press release. EBITDA, Adjusted EBITDA and other key performance indicators may not be indicative of our historical results of operations, nor are they meant to be predictive of future results.

 

9


LOGO

Press Release, 1 November 2017

 

We believe that revenue growth is a key indicator of how a company is progressing from period to period and presenting organic constant currency information for revenue provides useful supplemental information to investors regarding our ongoing operational performance because it helps us and our investors evaluate the ongoing operating performance of the business after removing the impact of acquisitions and of currency exchange rates.

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 recognised in the period in which such gains or losses are incurred. We exclude these effects because we believe they are not reflective of our on-going operating performance.

 

    Adjustments related to provisions – these adjustments are made for adjustments in provisions that are not reflective of the on-going operating performance of Interxion. These adjustments may include changes in provisions for onerous lease contracts.

 

    Adjustments related to capitalised interest – under IFRS, we are required to calculate and capitalise interest allocated to the investment in data centres and exclude it from net income. We believe that reversing the impact of capitalised interest provides information about the impact of the total interest costs and facilitates comparisons with other data centre operators.

 

10


LOGO

Press Release, 1 November 2017

 

In certain circumstances, we may also adjust for items that management believes are not representative of our current on-going 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 believe 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 (loss) 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 the tables attached to this press release.

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 believe 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.

The company’s outlook for 2017 included in this press release, includes a range for expected Adjusted EBITDA, a non-IFRS financial measure, which excludes items that management believes are not representative of our operating performance. These items include, but are not limited to, share-based payments, income or expense related to the evaluation and execution of potential mergers or acquisitions, adjustments related to terminated and unused data centre sites, and other significant items that currently cannot be predicted. The exact amount of these items is not currently determinable, but may be significant. Accordingly, the company is unable to provide equivalent reconciliations from the corresponding forward-looking IFRS measures to expected Adjusted EBITDA.

 

11


LOGO

Press Release, 1 November 2017

 

-ENDS-

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 48 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.

Contact information:

Interxion

Jim Huseby

Investor Relations

Tel: +1-813-644-9399

IR@interxion.com

This announcement contains inside information under Regulation (EU) 596/2014 (16 April 2014).

 

1  Recurring revenue is 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.

 

2  Adjusted net income (or ‘Adjusted earnings’) and Adjusted EBITDA are non-IFRS figures intended to adjust for certain items and are not measures of financial performance under IFRS. Complete definitions can be found in the “Non-IFRS Financial Measures” section in this press release. Reconciliations of net income to Adjusted EBITDA and net income to Adjusted net income can be found in the financial tables later in this press release.

 

12


LOGO

Press Release, 1 November 2017

 

3  Capital expenditures, including intangible assets, represent payments to acquire property, plant, 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.

 

4  Equipped space and Revenue generating space (and other metrics derived from these measures) exclude Interxion Science Park, which was acquired on 24 February 2017.

 

5  We present organic constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of acquisitions and foreign currency rate fluctuations. For purposes of calculating Revenue on an organic constant currency basis, results from entities acquired during the current and comparison period are excluded. Also, 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. The reconciliation of total revenue growth to total revenue growth on an organic constant currency basis, is as follows:

 

Three Months Ended 30 September 2017

  

Year-on-year

   

Sequential

 

Reported total revenue growth

     18.4     3.2

Add back: impact of foreign currency translation

     0.8     0.6

Reverse: impact of acquired ISP business

     -1.8     0.0
  

 

 

   

 

 

 

Total revenue growth on an organic constant currency basis

     17.4     3.7

Percentages may not add due to rounding    

 

6 We define Cash generated from operations as net cash flows from operating activities, excluding interest and corporate income tax payments and receipts.

 

13


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED INCOME STATEMENTS

(in €‘000 — except per share data and where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months ended  
     Sep-30
2017
    Sep-30
2016
    Sep-30
2017
    Sep-30
2016
 

Revenue

     124,647       105,275       359,420       311,301  

Cost of sales

     (49,608     (40,765     (141,628     (119,547
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit

     75,039       64,510       217,792       191,754  

Other income

     —         12       27       142  

Sales and marketing costs

     (8,247     (7,293     (24,458     (22,301

General and administrative costs

     (41,766     (33,619     (118,947     (99,572
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     25,026       23,610       74,414       70,023  

Net finance expense

     (10,833     (8,628     (32,040     (26,756
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit or loss before income taxes

     14,193       14,982       42,374       43,267  

Income tax expense

     (4,131     (4,521     (11,158     (13,422
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     10,062       10,461       31,216       29,845  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share (a): (€)

     0.14       0.15       0.44       0.42  

Diluted earnings per share (b): (€)

     0.14       0.15       0.44       0.42  

Number of shares outstanding at the end of the period (shares in thousands)

     71,327       70,527       71,327       70,527  

Weighted average number of shares for Basic EPS (shares in thousands)

     71,195       70,528       71,004       70,286  

Weighted average number of shares for Diluted EPS (shares in thousands)

     71,891       71,463       71,701       71,188  

 

     As at  

Capacity metrics

   Sep-30
2017
    Sep-30
2016
 

Equipped space (in square meters) (c)

     118,900       107,800  

Revenue generating space (in square meters) (c)

     97,100       84,100  

Utilization rate

     82     78

 

(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.
(c) Equipped space and Revenue generating space (and other metrics derived from these measures) exclude Interxion Science Park, which was acquired on February 24, 2017.

 

14


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: SEGMENT INFORMATION

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months ended  
     Sep-30     Sep-30     Sep-30     Sep-30  
     2017     2016     2017     2016  

Consolidated

        

Recurring revenue

     117,392       99,987       339,094       296,528  

Non-recurring revenue

     7,255       5,288       20,326       14,773  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     124,647       105,275       359,420       311,301  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     10,062       10,461       31,216       29,845  

Net income margin

     8.1     9.9     8.7     9.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     25,026       23,610       74,414       70,023  

Operating income margin

     20.1     22.4     20.7     22.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     56,200       48,331       161,850       141,596  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     60.2     61.3     60.6     61.6

Adjusted EBITDA margin

     45.1     45.9     45.0     45.5

Total assets

     1,620,036       1,457,055       1,620,036       1,457,055  

Total liabilities

     1,034,037       921,269       1,034,037       921,269  

Capital expenditure, including intangible assets(a)

     (75,158     (64,526     (186,356     (177,120

France, Germany, the Netherlands, and the UK

        

Recurring revenue

     76,554       63,809       220,736       189,847  

Non-recurring revenue

     4,279       3,073       12,348       8,958  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     80,833       66,882       233,084       198,805  

Operating income

     24,186       21,937       72,956       65,993  

Operating income margin

     29.9     32.8     31.3     33.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     43,414       36,776       126,697       109,969  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     61.0     62.6     61.6     62.8

Adjusted EBITDA margin

     53.7     55.0     54.4     55.3

Total assets

     1,156,329       949,085       1,156,329       949,085  

Total liabilities

     242,646       194,390       242,646       194,390  

Capital expenditure, including intangible assets(a)

     (51,593     (43,489     (127,412     (123,873

Rest of Europe

        

Recurring revenue

     40,838       36,178       118,358       106,681  

Non-recurring revenue

     2,976       2,215       7,978       5,815  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     43,814       38,393       126,336       112,496  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     18,315       15,974       51,467       46,325  

Operating income margin

     41.8     41.6     40.7     41.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     25,914       22,366       73,610       65,455  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     65.8     65.2     65.9     65.9

Adjusted EBITDA margin

     59.1     58.3     58.3     58.2

Total assets

     388,447       348,314       388,447       348,314  

Total liabilities

     79,875       77,799       79,875       77,799  

Capital expenditure, including intangible assets(a)

     (21,243     (18,514     (51,095     (45,185

Corporate and other

        

Operating income

     (17,475     (14,301     (50,009     (42,295
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (13,128     (10,811     (38,457     (33,828
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

     75,260       159,656       75,260       159,656  

Total liabilities

     711,516       649,080       711,516       649,080  

Capital expenditure, including intangible assets(a)

     (2,322     (2,523     (7,849     (8,062

 

(a) 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.

 

15


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months ended  
     Sep-30     Sep-30     Sep-30     Sep-30  
     2017     2016     2017     2016  

Reconciliation to Adjusted EBITDA

        

Consolidated

        

Net income

     10,062       10,461       31,216       29,845  

Income tax expense

     4,131       4,521       11,158       13,422  
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before taxation

     14,193       14,982       42,374       43,267  

Net finance expense

     10,833       8,628       32,040       26,756  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     25,026       23,610       74,414       70,023  

Depreciation, amortisation and impairments

     27,790       22,094       79,183       65,592  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

     52,816       45,704       153,597       135,615  

Share-based payments

     1,751       1,752       5,319       4,515  

Income or expense related to the evaluation and execution of potential mergers or acquisitions:

        

M&A transaction costs(2)

     1,633       887       2,961       1,608  

Items related to terminated or unused data centre sites:

        

Items related to sub-leases on unused data centre sites(3)

     —         (12     (27     (142
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(1)

     56,200       48,331       161,850       141,596  
  

 

 

   

 

 

   

 

 

   

 

 

 

France, Germany, the Netherlands, and the UK

        

Operating income

     24,186       21,937       72,956       65,993  

Depreciation, amortisation and impairments

     18,788       14,782       52,783       43,617  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

     42,974       36,719       125,739       109,610  

Share-based payments

     440       69       985       501  

Items related to terminated or unused data centre sites:

        

Items related to sub-leases on unused data centre sites(3)

     —         (12     (27     (142
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(1)

     43,414       36,776       126,697       109,969  
  

 

 

   

 

 

   

 

 

   

 

 

 

Rest of Europe

        

Operating income

     18,315       15,974       51,467       46,325  

Depreciation, amortisation and impairments

     7,475       6,288       21,819       18,818  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

     25,790       22,262       73,286       65,143  

Share-based payments

     124       104       324       312  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(1)

     25,914       22,366       73,610       65,455  
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

        

Operating income

     (17,475     (14,301     (50,009     (42,295

Depreciation, amortisation and impairments

     1,527       1,024       4,581       3,157  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA(1)

     (15,948     (13,277     (45,428     (39,138

Share-based payments

     1,187       1,579       4,010       3,702  

Income or expense related to the evaluation and execution of potential mergers or acquisitions:

        

M&A transaction costs(2)

     1,633       887       2,961       1,608  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(1)

     (13,128     (10,811     (38,457     (33,828
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) “EBITDA” and “Adjusted EBITDA” are non-IFRS financial measures. See “Non-IFRS Financial Measures” for more information on these measures, including why we believe that these supplemental measures are useful, and the limitations on the use of these supplemental measures.
(2) “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”.
(3) “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’.

 

16


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED BALANCE SHEET

(in €‘000 — except where stated otherwise)

(unaudited)

 

     As at  
     Sep-30     Dec-31  
     2017     2016  

Non-current assets

    

Property, plant and equipment

     1,277,166       1,156,031  

Intangible assets

     59,448       28,694  

Goodwill

     38,900       —    

Deferred tax assets

     25,751       20,370  

Other investments

     3,246       1,942  

Other non-current assets

     14,461       11,914  
  

 

 

   

 

 

 
     1,418,972       1,218,951  

Current assets

    

Trade receivables and other current assets

     162,860       147,821  

Cash and cash equivalents

     38,204       115,893  
  

 

 

   

 

 

 
     201,064       263,714  
  

 

 

   

 

 

 

Total assets

     1,620,036       1,482,665  
  

 

 

   

 

 

 

Shareholders’ equity

    

Share capital

     7,132       7,060  

Share premium

     530,315       519,604  

Foreign currency translation reserve

     5,163       9,988  

Hedging reserve, net of tax

     (187     (243

Accumulated profit

     43,576       12,360  
  

 

 

   

 

 

 
     585,999       548,769  

Non-current liabilities

    

Other non-current liabilities

     14,659       11,718  

Deferred tax liabilities

     21,985       9,628  

Borrowings

     716,749       723,975  
  

 

 

   

 

 

 
     753,393       745,321  

Current liabilities

    

Trade payables and other current liabilities

     183,170       171,399  

Income tax liabilities

     7,165       5,694  

Borrowings

     90,309       11,482  
  

 

 

   

 

 

 
     280,644       188,575  
  

 

 

   

 

 

 

Total liabilities

     1,034,037       933,896  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     1,620,036       1,482,665  
  

 

 

   

 

 

 

 

17


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

NOTES TO THE CONDENSED CONSOLIDATED BALANCE SHEET: BORROWINGS

(in €‘000 — except where stated otherwise)

(unaudited)

 

     As at  
     Sep-30     Dec-31  
     2017     2016  

Borrowings net of cash and cash equivalents

    

Cash and cash equivalents

     38,204       115,893  
  

 

 

   

 

 

 

6.00% Senior Secured Notes due 2020(a)

     628,437       629,327  

Mortgages

     52,541       54,412  

Financial leases

     51,280       51,718  

Other borrowings(b)

     74,800       —    
  

 

 

   

 

 

 

Borrowings excluding Revolving Facility deferred financing costs

     807,058       735,457  
  

 

 

   

 

 

 

Revolving Facility deferred financing costs(c)

     (290     (426
  

 

 

   

 

 

 

Total borrowings

     806,768       735,031  
  

 

 

   

 

 

 

Borrowings net of cash and cash equivalents

     768,564       619,138  
  

 

 

   

 

 

 

 

(a) €625 million 6.00% Senior Secured Notes due 2020 include a premium on the additional issuance and are shown after deducting underwriting discounts and commissions, offering fees and expenses.
(b) On 28 July 2017, we amended the terms of our €75.0 million senior secured revolving facility agreement dated 9 March 2017 to increase the amount available under the facility to €100.0 million and to add a second extension option enabling us to extend the maturity of this credit facility to 31 December 2018. Also, on 31 July 2017, we extended the maturity of our €100.0 million senior multicurrency revolving facility agreement dated 17 June 2013 from 3 July 2018 to 31 December 2018.
(c) Deferred financing costs of €0.3 million as of 30 September 2017 were incurred in connection with the €100 million revolving facility.

 

18


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months ended  
     Sep-30     Sep-30     Sep-30     Sep-30  
     2017     2016(b)     2017     2016(b)  

Net income

     10,062       10,461       31,216       29,845  

Depreciation, amortisation and impairments

     27,790       22,094       79,183       65,592  

Provision for onerous lease contracts

     —         (261     —         (1,532

Share-based payments

     1,443       1,845       4,012       4,403  

Net finance expense

     10,833       8,628       32,040       26,756  

Income tax expense

     4,131       4,521       11,158       13,422  
  

 

 

   

 

 

   

 

 

   

 

 

 
     54,259       47,288       157,609       138,486  

Movements in trade receivables and other assets

     (266     (4,956     (13,654     (3,646

Movements in trade payables and other liabilities

     1,212       1,135       14,793       (1,623
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash generated from / (used in) operations

     55,205       43,467       158,748       133,217  

Interest and fees paid(a)

     (19,476     (18,357     (40,389     (33,779

Interest received

     193       44       140       69  

Income tax paid

     (3,439     (1,948     (8,744     (5,486
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from / (used in) operating activities

     32,483       23,206       109,755       94,021  

Cash flows from / (used in) investing activities

        

Purchase of property plant and equipment

     (73,708     (61,041     (180,030     (169,217

Financial investments - deposits

     30       416       (336     1,164  

Acquisition Interxion Science Park B.V.

     —         —         (77,517     —    

Purchase of intangible assets

     (1,450     (3,485     (6,326     (7,903

Loans provided

     —         (1,942     (1,341     (1,942

Proceeds from sale of financial asset

     —         281       —         281  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from / (used in) investing activities

     (75,128     (65,771     (265,550     (177,617

Cash flows from / (used in) financing activities

        

Proceeds from exercised options

     2,682       44       6,771       6,220  

Proceeds from mortgages

     —         —         —         14,625  

Repayment of mortgages

     (624     (548     (2,045     (1,816

Proceeds from revolving credit facilities

     30,000       —         104,775       —    

Repayment Revolving facilities

     —         —         (30,000     —    

Proceeds Senior secured notes at 6%

     —         —         —         155,346  

Interest received at issue of additional notes

     —         —         —         2,225  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from / (used in) financing activities

     32,058       (504     79,501       176,600  

Effect of exchange rate changes on cash

     (452     (187     (1,395     (592
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     (11,039     (43,256     (77,689     92,412  

Cash and cash equivalents, beginning of period

     49,243       189,354       115,893       53,686  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

     38,204       146,098       38,204       146,098  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Interest and fees paid is reported net of cash interest capitalised, which is reported as part of “Purchase of property, plant and equipment”.
(b) The collaterized cash has been reclassified from “Cash and cash equivalents” to “Other current assets” and “Other non-current assets”. The impact on the consolidated statement of cash flows has been presented in investing cash flows. Comparative figures have been adjusted accordingly.

 

19


LOGO

Press Release, 1 November 2017

 

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     Nine Months ended  
     Sep-30
2017
    Sep-30
2016
    Sep-30
2017
    Sep-30
2016
 

Net income - as reported

     10,062       10,461       31,216       29,845  

Add back

        

+ M&A transaction costs

     1,633       887       2,961       1,608  
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,633       887       2,961       1,608  

Reverse

        

- Profit on sale of financial asset

     —         (281     —         (281

- Adjustment of financial lease obligation

     —         (1,410     —         (1,410

- Interest capitalised

     (840     (1,255     (2,605     (2,421
  

 

 

   

 

 

   

 

 

   

 

 

 
     (840     (2,946     (2,605     (4,112

Tax effect of above add backs & reversals

     (198     162       (89     274  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

     10,657       8,564       31,483       27,615  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported basic EPS: (€)

     0.14       0.15       0.44       0.42  

Reported diluted EPS: (€)

     0.14       0.15       0.44       0.42  

Adjusted basic EPS: (€)

     0.15       0.12       0.44       0.39  

Adjusted diluted EPS: (€)

     0.15       0.12       0.44       0.39  

 

20


LOGO

Press Release, 1 November 2017

 

INTERXION HOLDING NV

Status of Announced Expansion Projects as at 1 November 2017

with Target Open Dates after 1 July 2017

 

          CAPEX (a)(b)       Equipped
Space (a)
      

Market

  

Project

   (€ million)      (sqm)     

Target Opening Dates

Dublin

   DUB3: Phases 3 - 4      17        1,200      3Q 2018

Frankfurt

   FRA11: Phases 1 - 4 New Build      95        4,800      4Q 2017 - 2Q 2018 (c)

Frankfurt

   FRA12: New Build      19        1,100      3Q 2017

Frankfurt

   FRA13: Phases 1 - 2 New Build      90        4,900      4Q 2018 - 1Q 2019 (d)

London

   LON3: New Build      35        1,800      3Q 2018

Marseille

   MRS2: Phases 1 - 2 New Build      76        4,300      3Q 2017 - 4Q 2018(e)

Stockholm

   STO5: Phase 1 New Build      11        600      3Q 2017 - 4Q 2017 (f)

Vienna

   VIE2: Phases 7 - 8      45        2,300      4Q 2017 -3Q 2018(g)

Zurich

   ZUR1: Phase 3 (cont.) - 4      3        800      3Q17 - 1Q 2018 (h)

Total

      391        21,800     

 

(a) CAPEX and Equipped space are approximate and may change. Figures are rounded to nearest 100 sqm unless otherwise noted. 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 the duration of more than one fiscal year.
(c) FRA11: Phases 1 and 2 (1,200 square metres each) are scheduled to become operational in 4Q 2017; phases 3 & 4 (1,200 square metres each) are scheduled to become operational in 2Q 2018.
(d) FRA13: Phase 1 (2,300 square metres) is scheduled to become operational in 4Q 2018; phase 2 (2,600 square metres) is scheduled to become operational in 1Q 2019.
(e) MRS2: 100 sqm became operational in 3Q 2017. 700 square metres is scheduled to become operational in 2Q 2018; 1,900 square metres is scheduled to become operational in 4Q 2018. Further phases have not yet been announced.
(f) STO5: 300 sqm became operational in 3Q 2017; 300 sqm is scheduled to become operational in 4Q 2017.
(g) VIE2: 300 square metres is scheduled to become operational in 4Q 2017; 700 square metres is scheduled to become operational in 2Q 2018; 600 square metres is scheduled to become operational in 3Q 2018. Further phases have not yet been announced.
(h) ZUR1: 400 square metres became operational in 3Q 2017; 400 square metres is scheduled to become operational in 1Q 2018.

 

21