Equinix Reports Fourth-Quarter and Full-Year 2023 Results
- 2023 annual revenues increased 13% year-over-year on an as-reported basis and 15% on a normalized and constant currency basis to
$8.2 billion - Closed nearly 17,000 deals across more than 5,900 customers in 2023
- Record 90 megawatts ("MW") of xScale® leasing, the result of increased hyperscale demand to support artificial intelligence (AI) and cloud deployments
2023 Results Summary
-
Revenues
-
$8.188 billion , a 13% increase over the previous year on an as-reported basis or 15% on a normalized and constant currency basis
-
-
Operating Income
-
$1.443 billion , a 20% increase over the previous year, and an operating margin of 18% due to strong operating performance
-
-
Net Income and Net Income per Share attributable to common shareholders
-
$969 million , a 38% increase over the previous year, primarily due to operating performance strength and other income; partially offset by higher income taxes -
$10.31 per share, a 34% increase over the previous year
-
-
Adjusted EBITDA
-
$3.702 billion , a 45% adjusted EBITDA margin, an increase of 10% compared to last year on an as-reported basis - Includes
$13 million of integration costs
-
-
AFFO and AFFO per Share
-
$3.019 billion , an 11% increase over the previous year on an as-reported basis or 13% on a normalized and constant currency basis -
$32.11 per share, a 9% increase over the previous year on an as-reported basis or 11% on a normalized and constant currency basis
-
2024 Annual Guidance Summary
-
Revenues
-
$8.793 -$8.893 billion , a 7 - 9% increase over the previous year on an as-reported basis or a normalized and constant currency increase of 7 - 8% excluding the year-over-year impact of the power pass-through
-
-
Adjusted EBITDA
-
$4.089 -$4.169 billion , a 47% adjusted EBITDA margin, a 10 - 13% increase over the prior year on an as-reported basis - Assumes
$25 million of integration costs
-
-
AFFO and AFFO per Share
-
$3.306 -$3.376 billion , an increase of 9 - 12% over the previous year on both an as-reported and normalized and constant currency basis -
$34.58 -$35.31 per share, an increase of 8 - 10% over the previous year on both an as-reported and normalized and constant currency basis - This guidance excludes any capital market activities the company may undertake in the future
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Equinix Quote
"2023 was another strong year for Equinix—we delivered more than
Business Highlights
- Given the strong underlying demand for digital infrastructure,
Equinix continues to invest broadly across its global footprint, which now includes 260 data centers across 71 metropolitan areas in 33 countries. There are 49 major builds underway in 35 markets, across 21 countries including 11 xScale builds representing nearly 20,000 cabinets of retail and more than 50 megawatts of xScale capacity through 2024.Equinix opened 14 new data centers in 12 metros includingDublin ,Frankfurt ,Kuala Lumpur ,Madrid ,Milan ,Montreal ,Paris , São Paulo,Seattle ,Seoul ,Tokyo andWashington, D.C. In addition, the company added seven new projects inDallas ,Lagos ,Madrid ,Milan ,Warsaw andWashington, D.C. - In December,
Equinix announced plans to expand support for advanced liquid cooling technologies—including direct-to-chip—to more than 100 of its International Business ExchangeTM (IBX®) data centers in more than 45 metros around the world. This will enable more businesses to use the most performant cooling technologies for the powerful, high-density hardware that supports compute-intensive workloads such as AI. - The surge in demand for hyperscale infrastructure to support AI and cloud initiatives is resulting in strong demand and significant leasing activity for
Equinix's global xScale data center portfolio. Since the last earnings call, the company leased a record 90 megawatts of capacity across six assets in EMEA and APAC, including approximately 32 megawatts leased at the start of the year. This brings total xScale leasing to 300 megawatts globally. - In Q4,
Equinix purchased the company'sLondon 8 IBX data center. Revenues from owned assets increased to 66% of recurring revenues, stepping up 2%, as the company continues to progress on ownership and long-term control of assets.
-
Last month
Equinix launched a fully managed private cloud service that enables enterprises to easily acquire and manage their own NVIDIA DGX AI supercomputing infrastructure for building and running custom generative AI models. The service includes NVIDIA DGX systems, NVIDIA networking and the NVIDIA AI Enterprise software platform.Equinix installs and operates each customer's privately owned NVIDIA infrastructure and can deploy services on their behalf in key IBX data centers globally.Equinix continues to gain traction as a preferred location for deploying private AI infrastructure with both enterprises and service providers. In December, the company announced that customers, including Continental AG, i3D.net and Harrison.ai, are leveraging the cloud adjacency, global reach, robust ecosystems and low-latency interconnection of Platform Equinix® to deploy private AI infrastructure.
-
Equinix's industry-leading global interconnection franchise continues to perform with over 462,000 total interconnections deployed on its platform. In Q4, interconnection revenues stepped up 10% year-over-year on an as reported basis or 8% year-over-year on a normalized and constant currency basis, and the company added an incremental 4,300 organic interconnections in the quarter.- In Q4,
Equinix added four new native cloud on-ramps in Bogotá,Calgary andZurich , further strengthening its cloud ecosystem.Equinix customers can now enjoy low-latency access to multiple native cloud on-ramps in 37 metros, including eight out of the world's 10 largest metros by GDP.Equinix has nearly 40% market share of the on-ramps to the major cloud service providers—key players in the AI ecosystem. - The company recently launched Equinix Fabric Cloud Router, a virtual routing service designed to simplify networking challenges for enterprises in cloud-to-cloud and hybrid cloud environments. This service provides an easy-to-configure, enterprise-grade, multicloud routing solution that can be deployed within minutes. Customers can utilize Equinix Fabric Cloud Router in all 58 Equinix Fabric®-enabled metros globally, ensuring low-latency connectivity to major cloud providers and a wide range of service providers.
- In Q4,
-
Equinix's Channel program continued to see strong momentum, contributing to 35% of bookings and over 50% of new customers in Q4. The company saw growth from partners, including Avant, HCL, HPE, NVIDIA and WWT, with wins across a wide range of industry verticals and digital-first use cases. -
Equinix remains committed to advancing its Future First Sustainability strategy and has continued to make significant progress in this area.- In December,
Equinix announced the full allocation of proceeds from$4.9 billion in investment-grade green bonds to advance toward its near-term science-based target to become climate neutral by 2030 and improve the operational eco-efficiency of its business. As one of the top ten largest green bond issuers in theU.S. ,Equinix used the net proceeds to support 172 green building projects across 105 sites, 33 energy-efficiency projects, and two Power Purchase Agreements ("PPAs"). - Earlier this month
Equinix executed a new PPA inAustralia , signaling a broader industry goal of bringing additional clean power to a region where conditions have traditionally been more challenging for executing renewable energy projects. To date,Equinix has executed 21 PPAs acrossAustralia ,France , Iberia, the Nordics and theU.S. , representing more than one gigawatt of clean energy once operational. - For the second year in a row,
Equinix achieved the highest-ranking score of the CDP's prestigious 2023 "Climate Change A List," a leading environmental rating system focused on climate-related transparency and action.Equinix was also named as a leader in the IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment, recognized for its sustainability advancements, innovative platform capabilities, and global expansion and ecosystem growth.1
- In December,
__________________________________________ |
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1. |
IDC, "IDC MarketScape: Worldwide Datacenter Services 2023 Vendor Assessment," Doc # US49435022e, |
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Business Outlook
For the first quarter of 2024,
For the full year of 2024, total revenues are expected to range between
The
The adjusted EBITDA guidance is based on the revenue guidance less our expectations of cash cost of revenues and cash operating expenses. The AFFO guidance is based on the adjusted EBITDA guidance less our expectations of net interest expense, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, income tax expense, an income tax expense adjustment, recurring capital expenditures, other income (expense), gains (losses) on disposition of real estate property, and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.
Q4 2023 Results Conference Call and Replay Information
A replay of the call will be available one hour after the call through
Investor Presentation and Supplemental Financial Information
Additional Resources
About
Non-GAAP Financial Measures
In presenting non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow,
In addition, in presenting the non-GAAP financial measures,
Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Investors should note that the non-GAAP financial measures used by
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; increased costs and increased challenges to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale data centers and developing, deploying and delivering
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|||||||||
Condensed Conso lidated Statements of Operations |
|||||||||
(in thousands, except per share data) |
|||||||||
(unaudited) |
|||||||||
|
|||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||
|
|
|
|
|
|
|
|
|
|
Recurring revenues |
$ 1,976,038 |
|
$ 1,961,043 |
|
$ 1,773,380 |
|
$ 7,744,731 |
|
$ 6,871,287 |
Non-recurring revenues |
134,451 |
|
99,987 |
|
97,465 |
|
443,405 |
|
391,818 |
Revenues |
2,110,489 |
|
2,061,030 |
|
1,870,845 |
|
8,188,136 |
|
7,263,105 |
Cost of revenues |
1,091,776 |
|
1,068,991 |
|
970,700 |
|
4,227,658 |
|
3,751,501 |
Gross profit |
1,018,713 |
|
992,039 |
|
900,145 |
|
3,960,478 |
|
3,511,604 |
Operating expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
217,603 |
|
212,506 |
|
207,233 |
|
855,796 |
|
786,560 |
General and administrative |
448,849 |
|
403,890 |
|
400,183 |
|
1,654,042 |
|
1,498,701 |
Transaction costs |
5,869 |
|
(775) |
|
10,529 |
|
12,412 |
|
21,839 |
(Gain) loss on asset sales |
(24) |
|
(3,933) |
|
— |
|
(5,046) |
|
3,976 |
Total operating expenses |
672,297 |
|
611,688 |
|
617,945 |
|
2,517,204 |
|
2,311,076 |
Income from operations |
346,416 |
|
380,351 |
|
282,200 |
|
1,443,274 |
|
1,200,528 |
Interest and other expense: |
|
|
|
|
|
|
|
|
|
Interest income |
28,225 |
|
23,111 |
|
18,462 |
|
94,227 |
|
36,268 |
Interest expense |
(103,183) |
|
(101,385) |
|
(94,200) |
|
(402,022) |
|
(356,337) |
Other expense |
(1,227) |
|
(5,972) |
|
(28,895) |
|
(11,214) |
|
(51,417) |
Gain (loss) on debt extinguishment |
71 |
|
(360) |
|
143 |
|
(35) |
|
327 |
Total interest and other, net |
(76,114) |
|
(84,606) |
|
(104,490) |
|
(319,044) |
|
(371,159) |
Income before income taxes |
270,302 |
|
295,745 |
|
177,710 |
|
1,124,230 |
|
829,369 |
Income tax expense |
(42,825) |
|
(19,985) |
|
(48,807) |
|
(155,250) |
|
(124,792) |
Net income |
227,477 |
|
275,760 |
|
128,903 |
|
968,980 |
|
704,577 |
Net (income) loss attributable to non-controlling interests |
91 |
|
34 |
|
(140) |
|
198 |
|
(232) |
Net income attributable to common shareholders |
$ 227,568 |
|
$ 275,794 |
|
$ 128,763 |
|
$ 969,178 |
|
$ 704,345 |
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|||
Basic net income per share |
$ 2.41 |
|
$ 2.94 |
|
$ 1.39 |
|
$ 10.35 |
|
$ 7.69 |
Diluted net income per share |
$ 2.40 |
|
$ 2.93 |
|
$ 1.39 |
|
$ 10.31 |
|
$ 7.67 |
Shares used in computing basic net income per share |
94,268 |
|
93,683 |
|
92,573 |
|
93,615 |
|
91,569 |
Shares used in computing diluted net income per share |
94,667 |
|
94,168 |
|
92,752 |
|
94,009 |
|
91,828 |
|
|||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) |
|||||||||
(in thousands) |
|||||||||
(unaudited) |
|||||||||
|
|||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||
|
|
|
|
|
|
|
|
|
|
Net income |
$ 227,477 |
|
$ 275,760 |
|
$ 128,903 |
|
$ 968,980 |
|
$ 704,577 |
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment ("CTA") gain (loss) |
479,754 |
|
(412,910) |
|
796,716 |
|
249,981 |
|
(769,886) |
Unrealized gain (loss) on cash flow hedges |
(26,382) |
|
25,685 |
|
(50,231) |
|
(18,370) |
|
40,543 |
Net investment hedge CTA gain (loss) |
(217,345) |
|
149,608 |
|
(379,960) |
|
(131,883) |
|
425,701 |
Net actuarial loss on defined benefit plans |
(112) |
|
(119) |
|
(42) |
|
(462) |
|
(101) |
Total other comprehensive income (loss), net of tax |
235,915 |
|
(237,736) |
|
366,483 |
|
99,266 |
|
(303,743) |
Comprehensive income, net of tax |
463,392 |
|
38,024 |
|
495,386 |
|
1,068,246 |
|
400,834 |
Net (income) loss attributable to non-controlling interests |
91 |
|
34 |
|
(140) |
|
198 |
|
(232) |
Other comprehensive (income) loss attributable to non-controlling interests |
(22) |
|
182 |
|
(12) |
|
63 |
|
48 |
Comprehensive income attributable to common shareholders |
$ 463,461 |
|
$ 38,240 |
|
$ 495,234 |
|
$ 1,068,507 |
|
$ 400,650 |
|
|||
Condensed Consolidated Balance Sheets |
|||
(in thousands) |
|||
(unaudited) |
|||
|
|||
|
|
|
|
Assets |
|
|
|
Cash and cash equivalents |
$ 2,095,712 |
|
$ 1,906,421 |
Accounts receivable, net |
1,003,792 |
|
855,380 |
Other current assets |
468,193 |
|
459,138 |
Assets held for sale |
— |
|
84,316 |
Total current assets |
3,567,697 |
|
3,305,255 |
Property, plant and equipment, net |
18,600,833 |
|
16,649,534 |
Operating lease right-of-use assets |
1,448,890 |
|
1,427,950 |
|
5,737,122 |
|
5,654,217 |
Intangible assets, net |
1,704,870 |
|
1,897,649 |
Other assets |
1,591,312 |
|
1,376,137 |
Total assets |
$ 32,650,724 |
|
$ 30,310,742 |
Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity |
|
|
|
Accounts payable and accrued expenses |
$ 1,186,618 |
|
$ 1,004,800 |
Accrued property, plant and equipment |
398,216 |
|
281,347 |
Current portion of operating lease liabilities |
130,745 |
|
139,538 |
Current portion of finance lease liabilities |
138,657 |
|
151,420 |
Current portion of mortgage and loans payable |
7,705 |
|
9,847 |
Current portion of senior notes |
998,580 |
|
— |
Other current liabilities |
301,729 |
|
251,346 |
Total current liabilities |
3,162,250 |
|
1,838,298 |
Operating lease liabilities, less current portion |
1,331,333 |
|
1,272,812 |
Finance lease liabilities, less current portion |
2,122,484 |
|
2,143,690 |
Mortgage and loans payable, less current portion |
663,263 |
|
642,708 |
Senior notes, less current portion |
12,062,346 |
|
12,109,539 |
Other liabilities |
795,549 |
|
797,863 |
Total liabilities |
20,137,225 |
|
18,804,910 |
Redeemable non-controlling interest |
25,000 |
|
— |
Common stockholders' equity: |
|
|
|
Common stock |
95 |
|
93 |
Additional paid-in capital |
18,595,664 |
|
17,320,017 |
|
(56,117) |
|
(71,966) |
Accumulated dividends |
(8,694,647) |
|
(7,317,570) |
Accumulated other comprehensive loss |
(1,290,117) |
|
(1,389,446) |
Retained earnings |
3,934,016 |
|
2,964,838 |
Total common stockholders' equity |
12,488,894 |
|
11,505,966 |
Non-controlling interests |
(395) |
|
(134) |
Total stockholders' equity |
12,488,499 |
|
11,505,832 |
Total liabilities, redeemable non-controlling interest and stockholders' equity |
$ 32,650,724 |
|
$ 30,310,742 |
|
|
|
|
|
|
|
|
Ending headcount by geographic region is as follows: |
|
|
|
|
5,953 |
|
5,493 |
EMEA headcount |
4,267 |
|
3,936 |
|
2,931 |
|
2,668 |
Total headcount |
13,151 |
|
12,097 |
|
|||
Summary of Debt Principal Outstanding |
|||
(in thousands) |
|||
(unaudited) |
|||
|
|||
|
|
|
|
|
|
|
|
Finance lease liabilities |
$ 2,261,141 |
|
$ 2,295,110 |
|
|
|
|
Term loans |
641,931 |
|
618,028 |
Mortgage payable and other loans payable |
29,037 |
|
34,527 |
Plus: debt discount and issuance costs, net |
726 |
|
1,062 |
Total mortgage and loans payable principal |
671,694 |
|
653,617 |
|
|
|
|
Senior notes |
13,060,926 |
|
12,109,539 |
Plus: debt discount and issuance costs |
108,026 |
|
117,351 |
Total senior notes principal |
13,168,952 |
|
12,226,890 |
|
|
|
|
Total debt principal outstanding |
$ 16,101,787 |
|
$ 15,175,617 |
|
||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
|
||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
||||
|
Net income |
$ 227,477 |
|
$ 275,760 |
|
$ 128,903 |
|
$ 968,980 |
|
$ 704,577 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
|
Depreciation, amortization and accretion |
462,367 |
|
466,613 |
|
438,492 |
|
1,843,665 |
|
1,739,374 |
|
Stock-based compensation |
105,829 |
|
98,446 |
|
107,519 |
|
407,536 |
|
403,983 |
|
Amortization of debt issuance costs and debt discounts and premiums |
4,791 |
|
4,684 |
|
4,553 |
|
18,718 |
|
17,826 |
|
(Gain) loss on debt extinguishment |
(71) |
|
360 |
|
(143) |
|
35 |
|
(327) |
|
Loss (gain) on asset sales |
(24) |
|
(3,933) |
|
— |
|
(5,046) |
|
3,976 |
|
Other items |
15,788 |
|
12,776 |
|
44,880 |
|
58,030 |
|
67,298 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|||
|
Accounts receivable |
49,358 |
|
(47,147) |
|
(56,209) |
|
(150,345) |
|
(153,415) |
|
Income taxes, net |
10,692 |
|
(14,530) |
|
(17,701) |
|
4,107 |
|
(7,827) |
|
Accounts payable and accrued expenses |
76,351 |
|
69,082 |
|
31,511 |
|
161,300 |
|
114,600 |
|
Operating lease right-of-use assets |
21,624 |
|
39,977 |
|
36,171 |
|
138,704 |
|
149,094 |
|
Operating lease liabilities |
(27,575) |
|
(33,654) |
|
(34,586) |
|
(126,539) |
|
(132,831) |
|
Other assets and liabilities |
52,107 |
|
(83,259) |
|
76,799 |
|
(102,550) |
|
56,854 |
Net cash provided by operating activities |
998,714 |
|
785,175 |
|
760,189 |
|
3,216,595 |
|
2,963,182 |
|
Cash flows from investing activities: |
|
|
|
|
||||||
|
Purchases, sales and maturities of investments, net |
(54,534) |
|
(26,664) |
|
(35,222) |
|
(135,881) |
|
(122,569) |
|
Business acquisitions, net of cash and restricted cash acquired |
— |
|
— |
|
— |
|
— |
|
(964,010) |
|
Real estate acquisitions |
(231,108) |
|
(112,896) |
|
(208,377) |
|
(384,401) |
|
(248,276) |
|
Purchases of other property, plant and equipment |
(995,720) |
|
(617,539) |
|
(827,927) |
|
(2,781,018) |
|
(2,278,004) |
|
Proceeds from asset sales |
— |
|
4,682 |
|
— |
|
76,936 |
|
249,906 |
Net cash used in investing activities |
(1,281,362) |
|
(752,417) |
|
(1,071,526) |
|
(3,224,364) |
|
(3,362,953) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||||
|
Proceeds from employee equity awards |
(115) |
|
42,420 |
|
— |
|
86,848 |
|
81,543 |
|
Proceeds from redeemable non-controlling interest |
— |
|
— |
|
— |
|
25,000 |
|
— |
|
Payment of dividend distributions |
(403,176) |
|
(324,587) |
|
(287,573) |
|
(1,374,168) |
|
(1,151,459) |
|
Proceeds from public offering of common stock, net of offering costs |
432,876 |
|
— |
|
— |
|
733,651 |
|
796,018 |
|
Proceeds from mortgage and loans payable |
— |
|
— |
|
— |
|
— |
|
676,850 |
|
Proceeds from senior notes, net of debt discounts |
— |
|
336,853 |
|
— |
|
902,092 |
|
1,193,688 |
|
Repayment of finance lease liabilities |
(50,822) |
|
(31,629) |
|
(36,394) |
|
(148,913) |
|
(134,202) |
|
Repayment of mortgage and loans payable |
(576) |
|
(2,133) |
|
(1,714) |
|
(6,132) |
|
(587,941) |
|
Repayment of senior notes |
— |
|
— |
|
— |
|
— |
|
— |
|
Debt extinguishment costs |
— |
|
— |
|
— |
|
— |
|
— |
|
Debt issuance costs |
307 |
|
(2,982) |
|
— |
|
(6,932) |
|
(17,731) |
Net cash provided by (used in) financing activities |
(21,506) |
|
17,942 |
|
(325,681) |
|
211,446 |
|
856,766 |
|
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
42,209 |
|
(35,027) |
|
37,398 |
|
(15,616) |
|
(98,201) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(261,945) |
|
15,673 |
|
(599,620) |
|
188,061 |
|
358,794 |
|
Cash, cash equivalents and restricted cash at beginning of period |
2,358,254 |
|
2,342,581 |
|
2,507,868 |
|
1,908,248 |
|
1,549,454 |
|
Cash, cash equivalents and restricted cash at end of period |
$ 2,096,309 |
|
$ 2,358,254 |
|
$ 1,908,248 |
|
$ 2,096,309 |
|
$ 1,908,248 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
||||
Cash paid for taxes |
$ 26,662 |
|
$ 42,021 |
|
$ 44,091 |
|
$ 152,988 |
|
$ 140,312 |
|
Cash paid for interest |
$ 136,224 |
|
$ 97,152 |
|
$ 128,511 |
|
$ 471,456 |
|
$ 430,217 |
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (negative free cash flow)(1) |
$ (228,114) |
|
$ 59,422 |
|
$ (276,115) |
|
$ 128,112 |
|
$ (277,202) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash flow (2) |
$ 2,994 |
|
$ 172,318 |
|
$ (67,738) |
|
$ 512,513 |
|
$ 935,084 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
We define free cash flow (negative free cash flow) as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below: |
|||||||||
|
Net cash provided by operating activities as presented above |
$ 998,714 |
|
$ 785,175 |
|
$ 760,189 |
|
$ 3,216,595 |
|
$ 2,963,182 |
|
Net cash used in investing activities as presented above |
(1,281,362) |
|
(752,417) |
|
(1,071,526) |
|
(3,224,364) |
|
(3,362,953) |
|
Purchases, sales and maturities of investments, net |
54,534 |
|
26,664 |
|
35,222 |
|
135,881 |
|
122,569 |
|
Free cash flow (negative free cash flow) |
$ (228,114) |
|
$ 59,422 |
|
$ (276,115) |
|
$ 128,112 |
|
$ (277,202) |
|
|
|
|
|
|
|
|
|
|
|
(2) |
We define adjusted free cash flow as free cash flow (negative free cash flow) as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below: |
|||||||||
|
Free cash flow (negative free cash flow) as defined above |
$ (228,114) |
|
$ 59,422 |
|
$ (276,115) |
|
$ 128,112 |
|
$ (277,202) |
|
Less business acquisitions, net of cash and restricted cash acquired |
— |
|
— |
|
— |
|
— |
|
964,010 |
|
Less real estate acquisitions |
231,108 |
|
112,896 |
|
208,377 |
|
384,401 |
|
248,276 |
|
Adjusted free cash flow |
$ 2,994 |
|
$ 172,318 |
|
$ (67,738) |
|
$ 512,513 |
|
$ 935,084 |
|
||||||||||
Non-GAAP Measures and Other Supplemental Data |
||||||||||
(in thousands) |
||||||||||
(unaudited) |
||||||||||
|
||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Recurring revenues |
|
|
|
|
|
|
|
|
|
|
Non-recurring revenues |
134,451 |
|
99,987 |
|
97,465 |
|
443,405 |
|
391,818 |
|
Revenues (1) |
2,110,489 |
|
2,061,030 |
|
1,870,845 |
|
8,188,136 |
|
7,263,105 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost of revenues (2) |
756,510 |
|
725,750 |
|
642,176 |
|
2,869,034 |
|
2,436,074 |
|
Cash gross profit (3) |
1,353,979 |
|
1,335,280 |
|
1,228,669 |
|
5,319,102 |
|
4,827,031 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating expenses (4)(7): |
|
|
|
|
|
|
|
|
|
|
Cash sales and marketing expenses (5) |
147,084 |
|
138,879 |
|
140,697 |
|
567,514 |
|
506,609 |
|
Cash general and administrative expenses (6) |
286,438 |
|
260,470 |
|
249,232 |
|
1,049,747 |
|
950,722 |
|
Total cash operating expenses (4)(7) |
433,522 |
|
399,349 |
|
389,929 |
|
1,617,261 |
|
1,457,331 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (8) |
$ 920,457 |
|
$ 935,931 |
|
$ 838,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash gross margins (9) |
64 % |
|
65 % |
|
66 % |
|
65 % |
|
66 % |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margins (10) |
44 % |
|
45 % |
|
45 % |
|
45 % |
|
46 % |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA flow-through rate (11) |
(31) % |
|
82 % |
|
(107) % |
|
36 % |
|
36 % |
|
|
|
|
|
|
|
|
|
|
|
|
FFO (12) |
$ 524,505 |
|
$ 562,080 |
|
$ 406,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO (13) (14) |
$ 690,846 |
|
$ 771,617 |
|
$ 657,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic FFO per share (15) |
$ 5.56 |
|
$ 6.00 |
|
$ 4.40 |
|
$ 22.75 |
|
$ 19.94 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted FFO per share (15) |
$ 5.54 |
|
$ 5.97 |
|
$ 4.39 |
|
$ 22.66 |
|
$ 19.89 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic AFFO per share (15) |
$ 7.33 |
|
$ 8.24 |
|
$ 7.11 |
|
$ 32.24 |
|
$ 29.64 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted AFFO per share(15) |
$ 7.30 |
|
$ 8.19 |
|
$ 7.09 |
|
$ 32.11 |
|
$ 29.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The geographic split of our revenues on a services basis is presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Americas Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation |
$ 610,512 |
|
$ 596,871 |
|
$ 568,240 |
|
|
|
|
|
Interconnection |
210,550 |
|
206,552 |
|
197,337 |
|
820,007 |
|
756,214 |
|
Managed infrastructure |
65,024 |
|
63,356 |
|
59,244 |
|
249,779 |
|
218,499 |
|
Other |
6,657 |
|
5,503 |
|
4,885 |
|
22,118 |
|
20,727 |
|
Recurring revenues |
892,743 |
|
872,282 |
|
829,706 |
|
3,456,953 |
|
3,183,191 |
|
Non-recurring revenues |
38,968 |
|
41,411 |
|
42,065 |
|
160,539 |
|
166,026 |
|
Revenues |
$ 931,711 |
|
$ 913,693 |
|
$ 871,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation |
$ 540,935 |
|
$ 538,256 |
|
$ 450,480 |
|
|
|
|
|
Interconnection |
79,619 |
|
78,795 |
|
66,710 |
|
307,337 |
|
268,398 |
|
Managed infrastructure |
32,956 |
|
32,790 |
|
29,431 |
|
130,061 |
|
119,361 |
|
Other |
23,816 |
|
23,283 |
|
23,882 |
|
98,591 |
|
75,449 |
|
Recurring revenues |
677,326 |
|
673,124 |
|
570,503 |
|
2,648,157 |
|
2,207,329 |
|
Non-recurring revenues |
73,840 |
|
35,590 |
|
31,208 |
|
189,697 |
|
135,875 |
|
Revenues |
$ 751,166 |
|
$ 708,714 |
|
$ 601,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation |
$ 317,969 |
|
$ 329,054 |
|
$ 291,480 |
|
|
|
|
|
Interconnection |
67,538 |
|
67,411 |
|
61,572 |
|
266,966 |
|
243,664 |
|
Managed infrastructure |
17,191 |
|
17,484 |
|
17,819 |
|
71,833 |
|
77,646 |
|
Other |
3,271 |
|
1,688 |
|
2,300 |
|
11,978 |
|
8,719 |
|
Recurring revenues |
405,969 |
|
415,637 |
|
373,171 |
|
1,639,621 |
|
1,480,767 |
|
Non-recurring revenues |
21,643 |
|
22,986 |
|
24,192 |
|
93,169 |
|
89,917 |
|
Revenues |
$ 427,612 |
|
$ 438,623 |
|
$ 397,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colocation |
|
|
|
|
|
|
|
|
|
|
Interconnection |
357,707 |
|
352,758 |
|
325,619 |
|
1,394,310 |
|
1,268,276 |
|
Managed infrastructure |
115,171 |
|
113,630 |
|
106,494 |
|
451,673 |
|
415,506 |
|
Other |
33,744 |
|
30,474 |
|
31,067 |
|
132,687 |
|
104,895 |
|
Recurring revenues |
1,976,038 |
|
1,961,043 |
|
1,773,380 |
|
7,744,731 |
|
6,871,287 |
|
Non-recurring revenues |
134,451 |
|
99,987 |
|
97,465 |
|
443,405 |
|
391,818 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below: |
|||||||||
|
|
|
|
|
||||||
|
Cost of revenues |
|
|
|
|
$ 970,700 |
|
|
|
|
|
Depreciation, amortization and accretion expense |
(322,366) |
|
(330,852) |
|
(316,549) |
|
(1,309,613) |
|
(1,270,399) |
|
Stock-based compensation expense |
(12,900) |
|
(12,389) |
|
(11,975) |
|
(49,011) |
|
(45,028) |
|
Cash cost of revenues |
$ 756,510 |
|
$ 725,750 |
|
$ 642,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The geographic split of our cash cost of revenues is presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 263,165 |
|
$ 270,272 |
|
$ 263,374 |
|
|
|
$ 994,389 |
|
EMEA cash cost of revenues |
326,137 |
|
304,345 |
|
226,574 |
|
1,199,345 |
|
866,292 |
|
|
167,208 |
|
151,133 |
|
152,228 |
|
624,163 |
|
575,393 |
|
Cash cost of revenues |
$ 756,510 |
|
$ 725,750 |
|
$ 642,176 |
|
|
|
|
|
|
|
|
|
||||||
(3) |
We define cash gross profit as revenues less cash cost of revenues (as defined above). |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
(4) |
We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A". |
|||||||||
|
|
|
|
|
||||||
|
Selling, general, and administrative expense |
$ 666,452 |
|
$ 616,396 |
|
$ 607,416 |
|
|
|
|
|
Depreciation and amortization expense |
(140,001) |
|
(130,990) |
|
(121,943) |
|
(534,052) |
|
(468,975) |
|
Stock-based compensation expense |
(92,929) |
|
(86,057) |
|
(95,544) |
|
(358,525) |
|
(358,955) |
|
Cash operating expense |
$ 433,522 |
|
$ 399,349 |
|
$ 389,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) |
We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expense |
$ 217,603 |
|
$ 212,506 |
|
$ 207,233 |
|
$ 855,796 |
|
$ 786,560 |
|
Depreciation and amortization expense |
(50,632) |
|
(50,989) |
|
(49,604) |
|
(203,698) |
|
(197,157) |
|
Stock-based compensation expense |
(19,887) |
|
(22,638) |
|
(16,932) |
|
(84,584) |
|
(82,794) |
|
Cash sales and marketing expense |
$ 147,084 |
|
$ 138,879 |
|
$ 140,697 |
|
$ 567,514 |
|
$ 506,609 |
|
|
|
|
|
|
|
|
|
|
|
(6) |
We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expense |
$ 448,849 |
|
$ 403,890 |
|
$ 400,183 |
|
|
|
|
|
Depreciation and amortization expense |
(89,369) |
|
(80,001) |
|
(72,339) |
|
(330,354) |
|
(271,818) |
|
Stock-based compensation expense |
(73,042) |
|
(63,419) |
|
(78,612) |
|
(273,941) |
|
(276,161) |
|
Cash general and administrative expense |
$ 286,438 |
|
$ 260,470 |
|
$ 249,232 |
|
|
|
$ 950,722 |
|
|
|
|
|
|
|
|
|
|
|
(7) |
The geographic split of our cash operating expense, or cash SG&A, as defined above, is presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 257,581 |
|
$ 238,524 |
|
$ 214,560 |
|
$ 958,270 |
|
$ 833,053 |
|
EMEA cash SG&A |
105,253 |
|
94,197 |
|
104,648 |
|
387,233 |
|
367,410 |
|
|
70,688 |
|
66,628 |
|
70,721 |
|
271,758 |
|
256,868 |
|
Cash SG&A |
$ 433,522 |
|
$ 399,349 |
|
$ 389,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) |
We define adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 227,477 |
|
$ 275,760 |
|
$ 128,903 |
|
$ 968,980 |
|
$ 704,577 |
|
Income tax expense |
42,825 |
|
19,985 |
|
48,807 |
|
155,250 |
|
124,792 |
|
Interest income |
(28,225) |
|
(23,111) |
|
(18,462) |
|
(94,227) |
|
(36,268) |
|
Interest expense |
103,183 |
|
101,385 |
|
94,200 |
|
402,022 |
|
356,337 |
|
Other expense |
1,227 |
|
5,972 |
|
28,895 |
|
11,214 |
|
51,417 |
|
(Gain) loss on debt extinguishment |
(71) |
|
360 |
|
(143) |
|
35 |
|
(327) |
|
Depreciation, amortization and accretion expense |
462,367 |
|
461,842 |
|
438,492 |
|
1,843,665 |
|
1,739,374 |
|
Stock-based compensation expense |
105,829 |
|
98,446 |
|
107,519 |
|
407,536 |
|
403,983 |
|
Transaction costs |
5,869 |
|
(775) |
|
10,529 |
|
12,412 |
|
21,839 |
|
(Gain) loss on asset sales |
(24) |
|
(3,933) |
|
— |
|
(5,046) |
|
3,976 |
|
Adjusted EBITDA |
$ 920,457 |
|
$ 935,931 |
|
$ 838,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The geographic split of our adjusted EBITDA is presented below: |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 57,548 |
|
$ 37,911 |
|
$ (67,580) |
|
$ 12,703 |
|
$ (584) |
|
|
(89,606) |
|
19,897 |
|
(33,279) |
|
22,818 |
|
42,587 |
|
|
(20,633) |
|
(17,506) |
|
(16,259) |
|
(71,945) |
|
(32,265) |
|
|
87,827 |
|
86,691 |
|
83,363 |
|
342,690 |
|
316,934 |
|
|
50,797 |
|
(39,137) |
|
104,539 |
|
24,752 |
|
(42,895) |
|
|
— |
|
— |
|
— |
|
— |
|
198 |
|
|
251,276 |
|
251,855 |
|
237,919 |
|
999,832 |
|
932,892 |
|
|
70,914 |
|
64,067 |
|
76,131 |
|
272,259 |
|
282,997 |
|
|
2,923 |
|
1,054 |
|
9,003 |
|
7,064 |
|
17,950 |
|
|
(82) |
|
65 |
|
— |
|
3,523 |
|
3,961 |
|
|
$ 410,964 |
|
$ 404,897 |
|
$ 393,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA net income |
$ 174,108 |
|
$ 125,992 |
|
$ 195,224 |
|
$ 651,057 |
|
$ 477,808 |
|
EMEA income tax expense |
49,560 |
|
— |
|
16,531 |
|
49,560 |
|
16,650 |
|
EMEA interest income |
(3,903) |
|
(2,730) |
|
(1,251) |
|
(12,045) |
|
(2,530) |
|
EMEA interest expense |
4,530 |
|
3,931 |
|
2,675 |
|
17,167 |
|
5,698 |
|
EMEA other (income) expense |
(53,621) |
|
42,284 |
|
(77,880) |
|
(30,679) |
|
77,705 |
|
EMEA depreciation, amortization and accretion expense |
124,536 |
|
125,613 |
|
116,097 |
|
497,924 |
|
459,098 |
|
EMEA stock-based compensation expense |
21,271 |
|
20,958 |
|
18,840 |
|
82,575 |
|
73,294 |
|
EMEA transaction costs |
3,238 |
|
(1,878) |
|
253 |
|
4,286 |
|
2,016 |
|
EMEA (gain) loss on asset sales |
58 |
|
(3,998) |
|
— |
|
(8,569) |
|
(237) |
|
EMEA adjusted EBITDA |
$ 319,777 |
|
$ 310,172 |
|
$ 270,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (4,179) |
|
$ 111,857 |
|
$ 1,259 |
|
$ 305,220 |
|
$ 227,353 |
|
|
82,871 |
|
88 |
|
65,555 |
|
82,872 |
|
65,555 |
|
|
(3,689) |
|
(2,875) |
|
(952) |
|
(10,237) |
|
(1,473) |
|
|
10,826 |
|
10,763 |
|
8,162 |
|
42,165 |
|
33,705 |
|
|
4,051 |
|
2,825 |
|
2,236 |
|
17,141 |
|
16,607 |
|
|
(71) |
|
360 |
|
(143) |
|
35 |
|
(525) |
|
|
86,555 |
|
84,374 |
|
84,476 |
|
345,909 |
|
347,384 |
|
|
13,644 |
|
13,421 |
|
12,548 |
|
52,702 |
|
47,692 |
|
|
(292) |
|
49 |
|
1,273 |
|
1,062 |
|
1,873 |
|
|
— |
|
— |
|
— |
|
— |
|
252 |
|
|
$ 189,716 |
|
$ 220,862 |
|
$ 174,414 |
|
$ 836,869 |
|
$ 738,423 |
|
|
|
|
|
|
|
|
|
|
|
(9) |
We define cash gross margins as cash gross profit divided by revenues. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Our cash gross margins by geographic region is presented below: |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
72 % |
|
70 % |
|
70 % |
|
71 % |
|
70 % |
|
EMEA cash gross margins |
57 % |
|
57 % |
|
62 % |
|
58 % |
|
63 % |
|
|
61 % |
|
66 % |
|
62 % |
|
64 % |
|
63 % |
|
|
|
|
|
|
|
|
|
|
|
(10) |
We define adjusted EBITDA margins as adjusted EBITDA divided by revenues. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
44 % |
|
44 % |
|
45 % |
|
45 % |
|
45 % |
|
EMEA adjusted EBITDA margins |
43 % |
|
44 % |
|
45 % |
|
44 % |
|
47 % |
|
|
44 % |
|
50 % |
|
44 % |
|
48 % |
|
47 % |
|
|
|||||||||
(11) |
We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA - current period |
$ 920,457 |
|
$ 935,931 |
|
$ 838,740 |
|
|
|
|
|
Less adjusted EBITDA - prior period |
(935,931) |
|
(901,170) |
|
(870,916) |
|
(3,369,700) |
|
(3,144,384) |
|
Adjusted EBITDA growth |
$ (15,474) |
|
$ 34,761 |
|
$ (32,176) |
|
$ 332,141 |
|
$ 225,316 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - current period |
|
|
|
|
|
|
|
|
|
|
Less revenues - prior period |
(2,061,030) |
|
(2,018,408) |
|
(1,840,659) |
|
(7,263,105) |
|
(6,635,537) |
|
Revenue growth |
$ 49,459 |
|
$ 42,622 |
|
$ 30,186 |
|
$ 925,031 |
|
$ 627,568 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA flow-through rate |
(31) % |
|
82 % |
|
(107) % |
|
36 % |
|
36 % |
|
|
|
|
|
|
|
|
|
|
|
(12) |
FFO is defined as net income or loss, excluding gain or loss from the disposition of real estate assets, depreciation and amortization on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 227,477 |
|
$ 275,760 |
|
$ 128,903 |
|
$ 968,980 |
|
$ 704,577 |
|
Net (income) loss attributable to non-controlling interests |
91 |
|
34 |
|
(140) |
|
198 |
|
(232) |
|
Net income attributable to common shareholders |
227,568 |
|
275,794 |
|
128,763 |
|
969,178 |
|
704,345 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Real estate depreciation |
289,747 |
|
284,760 |
|
274,625 |
|
1,141,861 |
|
1,104,787 |
|
(Gain) loss on disposition of real estate property |
1,642 |
|
(3,480) |
|
437 |
|
1,898 |
|
7,134 |
|
Adjustments for FFO from unconsolidated joint ventures |
5,548 |
|
5,006 |
|
3,120 |
|
17,040 |
|
10,068 |
|
FFO attributable to common shareholders |
$ 524,505 |
|
$ 562,080 |
|
$ 406,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13) |
AFFO is defined as FFO, excluding depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss on debt extinguishment, an income tax expense adjustment, net income or loss from discontinued operations, net of tax, recurring capital expenditures and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items. |
|||||||||
|
FFO attributable to common shareholders |
$ 524,505 |
|
$ 562,080 |
|
$ 406,945 |
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Installation revenue adjustment |
507 |
|
(481) |
|
6,975 |
|
3,910 |
|
17,745 |
|
Straight-line rent expense adjustment |
(5,952) |
|
6,323 |
|
1,585 |
|
12,164 |
|
16,263 |
|
Amortization of deferred financing costs and debt discounts |
4,792 |
|
4,684 |
|
4,553 |
|
18,719 |
|
17,826 |
|
Contract cost adjustment |
(16,349) |
|
(9,835) |
|
(17,380) |
|
(46,601) |
|
(52,888) |
|
Stock-based compensation expense |
105,829 |
|
98,446 |
|
107,519 |
|
407,536 |
|
403,983 |
|
Stock-based charitable contributions |
— |
|
— |
|
34,974 |
|
2,543 |
|
49,013 |
|
Non-real estate depreciation expense |
121,852 |
|
125,882 |
|
111,342 |
|
494,214 |
|
426,666 |
|
Amortization expense |
51,864 |
|
52,297 |
|
51,438 |
|
209,063 |
|
204,755 |
|
Accretion expense |
(1,096) |
|
(1,097) |
|
1,086 |
|
(1,473) |
|
3,166 |
|
Recurring capital expenditures |
(105,150) |
|
(51,736) |
|
(80,047) |
|
(218,287) |
|
(188,885) |
|
(Gain) loss on debt extinguishment |
(71) |
|
360 |
|
(143) |
|
35 |
|
(327) |
|
Transaction costs |
5,869 |
|
(775) |
|
10,529 |
|
12,412 |
|
21,839 |
|
Impairment charges (1) |
— |
|
1,518 |
|
— |
|
1,518 |
|
1,815 |
|
Income tax expense (benefit) adjustment (1) |
1,462 |
|
(16,719) |
|
19,806 |
|
(12,133) |
|
(31,165) |
|
Adjustments for AFFO from unconsolidated joint ventures |
2,784 |
|
670 |
|
(1,364) |
|
4,921 |
|
(2,262) |
|
AFFO attributable to common shareholders |
$ 690,846 |
|
$ 771,617 |
|
$ 657,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above. |
|||||||||
(14) |
Below is how we reconcile from adjusted EBITDA to AFFO: |
|
|
|
|
|||||
|
|
|
|
|
||||||
|
Adjusted EBITDA |
$ 920,457 |
|
$ 935,931 |
|
$ 838,740 |
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
(74,958) |
|
(78,274) |
|
(75,738) |
|
(307,795) |
|
(320,069) |
|
Amortization of deferred financing costs and debt discounts |
4,792 |
|
4,684 |
|
4,553 |
|
18,719 |
|
17,826 |
|
Income tax expense |
(42,825) |
|
(19,985) |
|
(48,807) |
|
(155,250) |
|
(124,792) |
|
Income tax expense (benefit) adjustment (1) |
1,462 |
|
(16,719) |
|
19,806 |
|
(12,133) |
|
(31,165) |
|
Straight-line rent expense adjustment |
(5,952) |
|
6,323 |
|
1,585 |
|
12,164 |
|
16,263 |
|
Stock-based charitable contributions |
— |
|
— |
|
34,974 |
|
2,543 |
|
49,013 |
|
Contract cost adjustment |
(16,349) |
|
(9,835) |
|
(17,380) |
|
(46,601) |
|
(52,888) |
|
Installation revenue adjustment |
507 |
|
(481) |
|
6,975 |
|
3,910 |
|
17,745 |
|
Recurring capital expenditures |
(105,150) |
|
(51,736) |
|
(80,047) |
|
(218,287) |
|
(188,885) |
|
Other expense |
(1,227) |
|
(5,972) |
|
(28,895) |
|
(11,214) |
|
(51,417) |
|
(Gain) loss on disposition of real estate property |
1,642 |
|
(3,480) |
|
437 |
|
1,898 |
|
7,134 |
|
Adjustments for unconsolidated JVs' and non-controlling interests |
8,423 |
|
5,710 |
|
1,615 |
|
22,159 |
|
7,574 |
|
Adjustments for impairment charges (1) |
— |
|
1,518 |
|
— |
|
1,518 |
|
1,815 |
|
Adjustment for gain (loss) on sale of assets |
24 |
|
3,933 |
|
— |
|
5,046 |
|
(3,976) |
|
AFFO attributable to common shareholders |
$ 690,846 |
|
$ 771,617 |
|
$ 657,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impairment charges relate to the impairment of an indemnification asset resulting from the settlement of a pre-acquisition uncertain tax position, which was recorded as Other Income (Expense) on the Condensed Consolidated Statements of Operations. This impairment charge was offset by the recognition of tax benefits in the same amount, which was included within the Income tax expense adjustment line on the table above. |
|||||||||
(15) |
The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common shareholders is presented below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic net income per share, FFO per share and AFFO per share |
94,268 |
|
93,683 |
|
92,573 |
|
93,615 |
|
91,569 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
Employee equity awards |
399 |
|
485 |
|
179 |
|
394 |
|
259 |
|
Shares used in computing diluted net income per share, FFO per share and AFFO per share |
94,667 |
|
94,168 |
|
92,752 |
|
94,009 |
|
91,828 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic FFO per share |
$ 5.56 |
|
$ 6.00 |
|
$ 4.40 |
|
$ 22.75 |
|
$ 19.94 |
|
Diluted FFO per share |
$ 5.54 |
|
$ 5.97 |
|
$ 4.39 |
|
$ 22.66 |
|
$ 19.89 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic AFFO per share |
$ 7.33 |
|
$ 8.24 |
|
$ 7.11 |
|
$ 32.24 |
|
$ 29.64 |
|
Diluted AFFO per share |
$ 7.30 |
|
$ 8.19 |
|
$ 7.09 |
|
$ 32.11 |
|
$ 29.55 |
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