(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | |||||||
(Address of principal executive office) | (Commission File Number) | 33134 (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, par value $0.0001 per share | ||||||||||||||
Warrants to purchase one share of Class A common stock |
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Cyxtera Technologies, Inc. | ||||||||
Date: November 15, 2021 | By: | /s/ Carlos Sagasta | ||||||
Name: | Carlos Sagasta | |||||||
Title: | Chief Financial Officer |
($ in Millions) | New 2021E | Prior 2021E | 2020A | ||||||||
Revenue | $692 - $706 | $681 - $702 | $690.5 | ||||||||
Transaction Adjusted EBITDA | $223 - $227 | $217 - $223 | $215.6 | ||||||||
Maintenance Capital Expenditures (1) | $25 - $26 | $25 - $26 | $21.1 | ||||||||
% of Revenue | ~3.6% | ~3.7% | 3.1% | ||||||||
Expansion Capital Expenditures | $65 - $80 | $65 - $80 | $33.6 |
September 30, 2021 | December 31, 2020 | ||||||||||
Assets: | |||||||||||
Current assets: | |||||||||||
Cash | $ | 74.5 | 120.7 | ||||||||
Accounts receivable, net of allowance of $0.5 and $1.4, respectively | 26.2 | 33.5 | |||||||||
Prepaid and other current assets | 38.0 | 41.9 | |||||||||
Due from affiliates | — | 117.1 | |||||||||
Total current assets | 138.7 | 313.2 | |||||||||
Property and equipment, net | 1,496.4 | 1,580.7 | |||||||||
Goodwill | 761.5 | 762.2 | |||||||||
Intangible assets, net | 536.2 | 586.3 | |||||||||
Other assets | 15.2 | 23.7 | |||||||||
Total assets | $ | 2,948.0 | $ | 3,266.1 | |||||||
Liabilities and shareholders' equity: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 48.1 | $ | 48.9 | |||||||
Accrued expenses | 60.5 | 88.4 | |||||||||
Due to affiliates | — | 22.7 | |||||||||
Current portion of long-term debt, capital leases and other financing obligations | 49.9 | 65.0 | |||||||||
Deferred revenue | 60.8 | 60.2 | |||||||||
Other current liabilities | 9.1 | 6.8 | |||||||||
Total current liabilities | 228.4 | 292.0 | |||||||||
Long-term debt, net of current portion | 900.6 | 1,311.5 | |||||||||
Capital leases and other financing obligations, net of current portion | 907.3 | 933.1 | |||||||||
Deferred income taxes | 39.8 | 77.8 | |||||||||
Warrant liabilities | 44.5 | — | |||||||||
Other liabilities | 160.5 | 93.9 | |||||||||
Total liabilities | 2,281.1 | 2,708.3 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders' equity: | |||||||||||
Preferred Stock, $0.0001 par value; 10,000,000 shares authorized; none issued and outstanding | — | — | |||||||||
Class A common stock, $0.0001 par value; 500,000,000 shares authorized; 165,978,740 and 115,745,455 shares issued and outstanding as of September 30, 2021 and December 31, 2020 , respectively | — | — | |||||||||
Additional paid-in capital | 1,810.4 | 1,504.6 | |||||||||
Accumulated other comprehensive income | 12.3 | 16.7 | |||||||||
Accumulated deficit | (1,155.8) | (963.5) | |||||||||
Total shareholders' equity | 666.9 | 557.8 | |||||||||
Total liabilities and shareholders' equity | $ | 2,948.0 | $ | 3,266.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | $ | 177.1 | $ | 172.0 | $ | 525.3 | $ | 517.7 | |||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | 93.5 | 97.3 | 287.4 | 287.3 | |||||||||||||||||||
Selling, general and administrative expenses | 29.2 | 24.5 | 79.7 | 81.4 | |||||||||||||||||||
Depreciation and amortization | 59.4 | 57.5 | 180.6 | 172.4 | |||||||||||||||||||
Restructuring, impairment, site closures and related costs | 1.4 | — | 68.4 | — | |||||||||||||||||||
Transaction-related costs | 5.2 | — | 5.2 | — | |||||||||||||||||||
Impairment of notes receivable from affiliate | — | 9.4 | — | 18.2 | |||||||||||||||||||
Total operating costs and expenses | 188.7 | 188.7 | 621.3 | 559.3 | |||||||||||||||||||
Loss from operations | (11.6) | (16.7) | (96.0) | (41.6) | |||||||||||||||||||
Interest expense, net | (43.1) | (42.4) | (129.3) | (127.8) | |||||||||||||||||||
Other expenses, net | (0.4) | (1.4) | (1.2) | (2.1) | |||||||||||||||||||
Change in fair value of warrant liabilities | (2.7) | — | (2.7) | — | |||||||||||||||||||
Loss from operations before income taxes | (57.8) | (60.5) | (229.2) | (171.5) | |||||||||||||||||||
Income tax benefit | 11.1 | 14.6 | 36.9 | 22.7 | |||||||||||||||||||
Net loss | $ | (46.7) | $ | (45.9) | $ | (192.3) | $ | (148.8) | |||||||||||||||
Loss Per Share | |||||||||||||||||||||||
Basic and diluted | $ | (0.32) | $ | (0.40) | $ | (1.58) | $ | (1.29) | |||||||||||||||
Weighted average number of shares outstanding | |||||||||||||||||||||||
Basic and diluted | 147,754,776 | 115,745,455 | 121,868,742 | 115,745,455 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Net loss | $ | (192.3) | $ | (148.8) | |||||||
Cash flows from operating activities: | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 180.6 | 172.4 | |||||||||
Restructuring, impairment, site closures and related costs | 2.0 | — | |||||||||
Amortization of favorable/unfavorable leasehold interests, net | 2.9 | 2.4 | |||||||||
Loss on extinguishment of debt and amortization of debt issuance costs and fees, net | 9.1 | 4.4 | |||||||||
Impairment of notes receivable from affiliate | — | 18.2 | |||||||||
Equity-based compensation | 5.4 | 5.7 | |||||||||
Provision for (reversal of) doubtful accounts | (1.1) | (4.0) | |||||||||
Deferred income taxes | (37.1) | (23.9) | |||||||||
Change of fair value of warrant liabilities | 2.7 | — | |||||||||
Non-cash interest expense, net | 7.1 | 9.8 | |||||||||
Changes in operating assets and liabilities, excluding impact of acquisitions and dispositions: | |||||||||||
Accounts receivable | 8.3 | 21.1 | |||||||||
Prepaid and other current assets | 3.1 | 12.8 | |||||||||
Other assets | 8.1 | 3.7 | |||||||||
Accounts payable | (10.5) | 3.0 | |||||||||
Accrued expenses | (27.6) | (6.2) | |||||||||
Due to affiliates | (22.8) | — | |||||||||
Other liabilities | (3.4) | 14.8 | |||||||||
Net cash provided by operating activities | 0.8 | 85.4 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases from property and equipment | (44.1) | (58.5) | |||||||||
Amounts received from (advanced to) affiliate | 117.1 | (14.9) | |||||||||
Net cash provided by (used in) investing activities | 73.0 | (73.4) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt and other financing obligations | 40.0 | 91.7 | |||||||||
Proceeds from recapitalization, net of issuance costs | 436.0 | — | |||||||||
Repayment of long-term debt | (459.4) | (8.0) | |||||||||
Repayment of capital leases and other financing obligations | (49.1) | (26.3) | |||||||||
Capital redemption | (97.9) | — | |||||||||
Capital contribution | 5.2 | — | |||||||||
Net cash (used in) provided by financing activities | (125.2) | 57.4 | |||||||||
Effect of foreign currency exchange rates on cash | 5.2 | (2.9) | |||||||||
Net (decrease) increase in cash | (46.2) | 66.5 | |||||||||
Cash at beginning of period | 120.7 | 12.9 | |||||||||
Cash at end of period | $ | 74.5 | $ | 79.4 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for income taxes, net | $ | 4.3 | $ | 1.6 | |||||||
Cash paid for interest | $ | 67.6 | $ | 43.4 | |||||||
Non-cash purchases of property and equipment | $ | 19.4 | $ | 42.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net Loss to EBITDA Reconciliation: | |||||||||||||||||||||||
Net Loss | $ | (46.7) | $ | (45.9) | $ | (192.3) | $ | (148.8) | |||||||||||||||
Depreciation and amortization | 59.4 | 57.5 | 180.6 | 172.4 | |||||||||||||||||||
Interest and other expenses, net | 43.5 | 43.8 | 130.5 | 129.9 | |||||||||||||||||||
Income tax benefit | (11.1) | (14.6) | (36.9) | (22.7) | |||||||||||||||||||
EBITDA | 45.1 | 40.8 | $ | 81.9 | $ | 130.8 | |||||||||||||||||
Transaction Adjustments | |||||||||||||||||||||||
Equity-based compensation | 1.8 | 1.8 | 5.4 | 5.7 | |||||||||||||||||||
Straight-line rent adjustment | 0.6 | 0.7 | 2.5 | 2.2 | |||||||||||||||||||
Amortization of Favorable / Unfavorable Leasehold Interest & ARO accretion | 0.9 | 0.9 | 2.6 | 2.7 | |||||||||||||||||||
Stand-up separation & other | 0.4 | 1.0 | 3.8 | 4.8 | |||||||||||||||||||
Restructuring costs & other | 1.4 | (0.1) | 72.3 | 4.0 | |||||||||||||||||||
Transaction - related costs | 5.2 | — | 5.2 | — | |||||||||||||||||||
Change in fair value of warrant liabilities | 2.7 | — | 2.7 | — | |||||||||||||||||||
Impairment of note and other receivables from affiliate | — | 9.4 | — | 18.2 | |||||||||||||||||||
Total Adjustments | 13.0 | 13.8 | 94.5 | 37.5 | |||||||||||||||||||
Transaction Adjusted EBITDA | $ | 58.1 | $ | 54.6 | $ | 176.4 | $ | 168.3 |
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