EX-99.1 2 d743961dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Press Release, 9 May 2019

Interxion Reports First Quarter 2019 Results

Revenue Increased 13% Year Over Year

AMSTERDAM 9 May 2019 – Interxion Holding NV (NYSE: INXN), a leading European provider of carrier and cloud-neutral colocation data centre services, today announced its results for the three-month period ended 31 March 2019.

Financial Highlights

 

   

Revenue increased by 13% to €151.5 million (1Q 2018: €133.8 million).

 

   

Recurring revenue1 increased by 14% to €145.3 million (1Q 2018: €127.0 million).

 

   

Net income decreased by 28% to €8.4 million (1Q 2018: €11.7 million).

 

   

Adjusted net income2 decreased by 41% to €7.0 million (1Q 2018: €11.9 million).

 

   

Diluted earnings per share decreased by 28% to €0.12 (1Q 2018: €0.16).

 

   

Adjusted diluted earnings per share2 decreased by 41% to €0.10 (1Q 2018: €0.17).

 

   

Adjusted EBITDA2 increased by 27% to €77.3 million (1Q 2018: €60.9 million).

 

   

Adjusted EBITDA margin increased to 51.0% (1Q 2018: 45.5%).

 

   

Adjusted EBITDA excluding the impact of IFRS 162 increased by 14% to €69.3 million (1Q 2018: €60.9 million) and Adjusted EBITDA margin increased to 45.7% (1Q 2018: 45.5%).

 

   

Capital expenditures, including intangible assets3, were €144.1 million (1Q 2018: €96.2 million).

 

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Operating Highlights

 

   

Equipped space increased by 3,500 square metres during the quarter to 148,300 square metres.

 

   

Revenue generating space increased by 4,000 square metres during the quarter to 119,000 square metres.

 

   

Utilisation rate at the end of the quarter was 80%.

 

   

During the first quarter, Interxion completed the following capacity additions:

 

   

2,600 sqm in Frankfurt;

 

   

300 sqm in London; and

 

   

300 sqm in Dusseldorf.

 

   

In April, Interxion acquired a 40% equity interest in Icolo Ltd., a Kenyan data centre operator.

“Interxion continues to experience strong demand in Europe, with the cloud and content platforms continuing to expand across our pan-European footprint, driving 14% recurring revenue growth in the first quarter and providing support for our ongoing expansion program,” said David Ruberg, Interxion’s Chief Executive Officer. “Interxion’s highly-connected data centres and value-enhancing communities of interest continue to attract mission-critical and latency sensitive applications, contributing to sustainable attractive returns for our shareholders.”

Quarterly Review

The implementation of International Financial Reporting Standard - Leases (“IFRS 16”) on January 1, 2019 had a significant impact on our reported numbers as of and for the three-month period ended 31 March 2019. While IFRS 16 had no impact on our underlying cash flows, the new accounting treatment applicable to operating leases resulted in a reduction in our

 

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reported rent expense, which had a positive impact on reported gross profit and Adjusted EBITDA. IFRS 16 also resulted in an increase in depreciation and interest charges, which had a negative impact on net income and earnings per share. In addition, the new accounting treatment under IFRS 16 impacted our balance sheet, resulting in an increase in reported liabilities, together with a corresponding increase in right of use assets, in each case, as a result of including both future lease liabilities and right of use assets on balance sheet.

Revenue in the first quarter of 2019 was €151.5 million, a 13% increase over the first quarter of 2018 and a 3% increase over the fourth quarter of 2018. Recurring revenue was €145.3 million, a 14% increase over the first quarter of 2018 and a 4% increase over the fourth quarter of 2018. Recurring revenue in the first quarter represented 96% of total revenue. On a constant currency4 basis, revenue in the first quarter of 2019 was 13% higher than in the first quarter of 2018. Neither foreign exchange movements nor the adoption of IFRS 16 had a meaningful impact on reported revenue in the first quarter of 2019.

Cost of sales in the first quarter of 2019 was €50.4 million, a 4% decrease over the first quarter of 2018 and a 12% decrease over the fourth quarter of 2018.

Gross profit was €101.1 million in the first quarter of 2019, a 25% increase over the first quarter of 2018 and a 13% increase over the fourth quarter of 2018. Gross profit margin was 66.7% in the first quarter of 2019, compared with 60.6% in the first quarter of 2018 and 61.1% in the fourth quarter of 2018.

Sales and marketing costs in the first quarter of 2019 were €9.2 million, a 5% increase over the first quarter of 2018 and a 3% decrease from the fourth quarter of 2018.

General and administrative costs, excluding the items we adjust for in the determination of Adjusted EBITDA, were €14.7 million in the first quarter of 2019, a 27% increase over the first quarter of 2018 and an 18% increase from the fourth quarter of 2018.

 

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Depreciation and amortisation in the first quarter of 2019 were €41.7 million, an increase of 41% from the first quarter of 2018 and a 21% increase from the fourth quarter of 2018.

Operating income in the first quarter of 2019 was €29.8 million, an increase of 11% from the first quarter of 2018 and a 4% decrease from the fourth quarter of 2018.

Net finance expense for the first quarter of 2019 was €16.7 million, a 46% increase over the first quarter of 2018 and a 6% increase over the fourth quarter of 2018.

Income tax expense for the first quarter of 2019 was €4.8 million, a 25% increase compared with the first quarter of 2018 and a 34% decrease from the fourth quarter of 2018.

Net income was €8.4 million in the first quarter of 2019, a 28% decrease over the first quarter of 2018 and a 5% increase from the fourth quarter of 2018.

Adjusted net income was €7.0 million in the first quarter of 2019, a 41% decrease over the first quarter of 2018 and a 10% decrease from the fourth quarter of 2018.

Adjusted EBITDA for the first quarter of 2019 was €77.3 million, a 27% increase over the first quarter of 2018 and a 14% increase over the fourth quarter of 2018. Adjusted EBITDA margin was 51.0% in the first quarter of 2019 compared with 45.5% in the first quarter of 2018 and 46.1% in the fourth quarter of 2018.

Adjusted EBITDA excluding the effects of IFRS 16, was €69.3 million for the first quarter of 2019, a 14% increase over the first quarter of 2018 and a 2% increase over the fourth quarter of 2018. Adjusted EBITDA margin, excluding the effects of IFRS 16, was 45.7% in the first quarter of 2019, compared with 45.5% in the first quarter of 2018 and 46.1% in the fourth quarter of 2018.

Net cash flows from operating activities were €71.3 million in the first quarter of 2019, compared with €34.6 million in the first quarter of 2018 and €44.8 million in the fourth quarter of 2018.

 

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Cash generated from operations5 was €79.9 million in the first quarter of 2019, compared with €58.1 million in the first quarter of 2018 and €76.9 million in the fourth quarter of 2018.

Capital expenditures, including intangible assets, were €144.1 million in the first quarter of 2019, compared with €96.2 million in the first quarter of 2018 and €131.3 million in the fourth quarter of 2018.

Cash and cash equivalents were €118.2 million at 31 March 2019, compared with €186.1 million at year end 2018.

Total borrowings (including lease liabilities) net of cash and cash equivalents were €1,593.9 million in aggregate at 31 March 2019, compared with €1,104.1 million at 31 December 2018. Excluding lease liabilities, total borrowings were €1,239.6 million at 31 March 2019, compared with €1,239.8 million at 31 December 2018.

During the first quarter of 2019, Interxion increased its unsecured revolving credit facility by €100 million for a total commitment of €300 million. As at 31 March 2019, no amounts had been drawn under this facility.

Equipped space at the end of the first quarter of 2019 was 148,300 square metres, compared to 128,900 square metres at the end of the first quarter of 2018 and 144,800 square metres at the end of the fourth quarter of 2018. Revenue generating space at the end of the first quarter of 2019 was 119,000 square metres, compared to 104,100 square metres at the end of the first quarter of 2018 and 115,000 square metres at the end of the fourth quarter of 2018. Utilisation rate, the ratio of revenue-generating space to equipped space, was 80% at the end of the first quarter of 2019, compared to 81% at the end of the first quarter of 2018 and 79% at the end of the fourth quarter of 2018.

 

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Business Outlook

Interxion today is reaffirming guidance for Revenue, Adjusted EBITDA and Capital expenditures (including intangibles) for full year 2019:

 

Revenue

   €632 million – €647 million   

Adjusted EBITDA

   €324 million – €334 million   

Capital expenditures (including intangibles)

   €570 million – €600 million   

Conference Call to Discuss Results

Interxion will host a conference call today at 8:30 a.m. ET (1:30 p.m. BST, 2:30 p.m. CET) to discuss the results.

To participate on this call, U.S. callers may dial toll free 1-866-966-1396; callers outside the U.S. may dial direct +44 (0) 2071 928 000. The conference ID for this call is INXN. This event also will be webcast live over the Internet in listen-only mode at investors.interxion.com.

A replay of this call will be available shortly after the call concludes and will be available until 23 May 2019. To access the replay, U.S. callers may dial toll free 1-866-331-1332; callers outside the U.S. may dial direct +44 (0) 3333 009 785. The replay access number is 7667705.

Forward-looking Statements

This communication contains forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking statements. Factors that could cause actual results and future events to differ materially from Interxion’s expectations include, but are not limited to, the difficulty of reducing operating expenses in the short term, the inability to utilise the capacity of newly planned data centres and data centre expansions, significant competition, the cost and supply of electrical power, data centre industry over-capacity, performance under service level agreements, delays in remediating the material weakness in internal control over financial reporting and/or making disclosure controls and procedures effective, certain other risks detailed herein and other risks described from time to time in Interxion’s filings with the United States Securities and Exchange Commission (the “SEC”).

 

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Interxion does not assume any obligation to update the forward-looking information contained in this press release.

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) Adjusted EBITDA; (ii) Adjusted EBITDA excluding the impact of IFRS 16; (iii) Recurring revenue; (iv) Revenue on a 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.

Other companies may present Adjusted EBITDA, Adjusted EBITDA excluding the impact of IFRS 16, Recurring revenue, Revenue on a constant currency basis, Adjusted net income, Adjusted basic earnings per share, Adjusted diluted earnings per share and Cash generated from operations differently than we do. 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.

 

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Adjusted EBITDA, Adjusted EBITDA excluding the impact of IFRS 16, Recurring revenue and Revenue on a constant currency basis

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

 

   

Depreciation and amortisation – property, plant and equipment and intangible assets (except goodwill) are depreciated and amortised on a straight-line basis over the estimated useful life. We believe that these costs do not represent our operating performance.

 

   

Share-based payments – represents primarily the fair value at the date of grant of employee equity awards, which is recognized as an expense over the vesting period. In certain cases, the fair value is redetermined for market conditions at each reporting date, until the final date of grant is achieved. We believe that this expense does not represent our operating performance.

 

   

Income or expense related to the evaluation and execution of potential mergers or acquisitions (“M&A”) – under IFRS, gains and losses associated with M&A activity are 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 ongoing operating performance.

In certain circumstances, we may also adjust for other items that management believes are not representative of our current ongoing performance. Examples include: adjustments for the cumulative effect of a change in accounting principle or estimate, impairment losses, litigation gains and losses or windfall gains and losses.

In addition, we present Adjusted EBITDA excluding the impact of IFRS 16 for comparative purposes with regard to Adjusted EBITDA presented in periods prior to 1 January 2019, the effective date of IFRS 16.

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.

 

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We believe Adjusted EBITDA, Adjusted EBITDA excluding the impact of IFRS 16, Recurring revenue and Revenue on a constant currency basis provide useful supplemental information to investors regarding our ongoing operational performance. These measures help us and our investors evaluate the ongoing operating performance of the business after removing the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortisation) and the implementation of new accounting standards. Management believes that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16, when combined with the primary IFRS presentation of net income, provides a more complete analysis of our operating performance. Management also believes the use of Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16 facilitates comparisons between us and other data centre operators (including other data centre operators that are REITs) and other infrastructure-based businesses. Adjusted EBITDA excluding the impact of IFRS 16 is also a relevant measure used in the financial covenants of our revolving credit facility and our 4.75% Senior Notes due 2025. Pursuant to the terms of our revolving credit facility and our 4.75% Senior Notes due 2025, the calculation of Adjusted EBITDA for the purposes of the financial covenants contained therein is determined in accordance with IFRS as of the date of the financing agreements related thereto (June 2018) and therefore does not include the impact of IFRS 16.

A reconciliation from net income to Adjusted EBITDA and from Adjusted EBITDA to Adjusted EBITDA excluding the impact of IFRS 16 is provided in the tables attached to this press release. Adjusted EBITDA, Adjusted EBITDA excluding the impact of IFRS 16 and other key performance indicators may not be indicative of our historical results of operations based on IFRS, nor are they meant to be predictive of future results under IFRS.

Management’s outlook for 2019 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, depreciation and amortisation, 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

 

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sites, and other significant items that currently cannot be predicted. The exact amount of these items is an estimate but may be significant. Accordingly, the company is unable to provide equivalent reconciliations from the corresponding forward-looking IFRS measures to expected Adjusted EBITDA.

We present constant currency information for revenue to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than Euro are converted into Euro using the average exchange rates from the prior period rather than the actual exchange rates in effect during the current period.

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

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 ongoing operating performance.

 

   

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

 

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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.

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.

Management believes that the exclusion of certain items listed above provides useful supplemental information to net income to aid investors in evaluating the operating performance of our business and comparing our operating performance with other data centre operators and infrastructure companies. We believe the presentation of Adjusted net income, when combined with net income prepared in accordance with IFRS, is beneficial to a complete understanding of our performance. A reconciliation from reported net income to Adjusted net income is provided in 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 believes that the exclusion of these items, provides useful supplemental information to net cash flows from operating activities to aid investors in evaluating the cash generating performance of our business.

 

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IFRS 16 – Leases

We adopted International Financial Reporting Standard 16 – Leases, from 1 January 2019. Under IFRS 16, operating leases are recognized as right of use assets and lease liabilities, and certain components of revenue are recognized as lease revenue.

The impact of IFRS 16 on revenue, gross profit, operating income, Adjusted EBITDA, depreciation and amortization, net finance expense, total assets and total liabilities as reported for the first quarter of 2019 is provided in the tables attached to this press release.

-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 52 data centres in 11 European countries. Interxion’s uniformly designed, energy efficient data centres offer customers extensive security and uptime for their mission-critical applications. With over 700 connectivity providers, 21 European Internet exchanges, and most leading cloud and digital media platforms across its footprint, Interxion has created connectivity, cloud, content and finance hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.

Contact information:

Interxion

Jim Huseby

Investor Relations

Tel: +1-813-644-9399

IR@interxion.com

1 Recurring revenue is revenue incurred from colocation and associated power charges, office space, amortized 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 diluted earnings’), Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16, are non-IFRS measures intended to adjust for certain items and are not measures of financial performance under IFRS. Complete definitions can be found in the “Non-IFRS

 

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Financial Measures” section in this press release. Reconciliations of net income to Adjusted EBITDA, Adjusted EBITDA to Adjusted EBITDA excluding the impact of IFRS 16 and net income to Adjusted net income, can be found in the financial tables later in this press release.

3 Capital expenditures, including intangible assets, represent payments to acquire property, plant and equipment and intangible assets, as recorded in the consolidated statement of cash flows as “Purchase of property, plant and equipment” and “Purchase of intangible assets”, respectively.

4 We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than Euro are converted into Euro using the average exchange rates from the prior period rather than the actual exchange rates in effect during the current period.

5 We define Cash generated from operations as net cash flows from operating activities, excluding interest and fees paid, interest received and income tax paid.

 

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INTERXION HOLDING NV

CONDENSED CONSOLIDATED INCOME STATEMENTS

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

(unaudited)

 

     Three Months Ended  
     Mar-31     Mar-31  
     2019     2018  

Revenue

     151,531       133,836  

Cost of sales

     (50,394     (52,697
  

 

 

   

 

 

 

Gross Profit

     101,137       81,139  

Other income

     —         86  

Sales and marketing costs

     (9,154     (8,708

General and administrative costs

     (62,144     (45,644
  

 

 

   

 

 

 

Operating income

     29,839       26,873  

Net finance expense

     (16,662     (11,404
  

 

 

   

 

 

 

Profit before income taxes

     13,177       15,469  

Income tax expense

     (4,778     (3,812
  

 

 

   

 

 

 

Net income

     8,399       11,657  
  

 

 

   

 

 

 

Basic earnings per share(a): (€)

     0.12       0.16  

Diluted earnings per share(b): (€)

     0.12       0.16  

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

     71,867       71,437  

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

     71,810       71,428  

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

     72,356       71,903  
     As at  
     Mar-31     Mar-31  
Capacity metrics    2019     2018  

Equipped space (in square meters)

     148,300       128,900  

Revenue generating space (in square meters)

     119,000       104,100  

Utilisation rate

     80     81

 

(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.

 

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INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: REPORTING SEGMENT INFORMATION

(in €’000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended  
     Mar-31     Mar-31  
     2019     2018  

Consolidated

    

Recurring revenue

     145,279       126,962  

Non-recurring revenue

     6,252       6,874  
  

 

 

   

 

 

 

Revenue

     151,531       133,836  
  

 

 

   

 

 

 

Net income

     8,399       11,657  

Net income margin

     5.5     8.7
  

 

 

   

 

 

 

Operating income

     29,839       26,873  

Operating income margin

     19.7     20.1
  

 

 

   

 

 

 

Adjusted EBITDA

     77,277       60,876  
  

 

 

   

 

 

 

Gross profit margin

     66.7     60.6

Adjusted EBITDA margin

     51.0     45.5

Total assets

     2,699,089       1,788,289  

Total liabilities(a)

     2,048,858       1,185,128  

Capital expenditure, including intangible assets(b)

     (144,081     (96,195

France, Germany, the Netherlands, and the UK

    

Recurring revenue

     96,864       83,455  

Non-recurring revenue

     4,435       4,456  
  

 

 

   

 

 

 

Revenue

     101,299       87,911  

Operating income

     33,312       27,634  

Operating income margin

     32.9     31.4
  

 

 

   

 

 

 

Adjusted EBITDA

     61,121       47,978  
  

 

 

   

 

 

 

Gross profit margin

     67.4     61.1

Adjusted EBITDA margin

     60.3     54.6

Total assets

     1,885,683       1,271,899  

Total liabilities(a)

     616,165       265,553  

Capital expenditure, including intangible assets(b)

     (99,624     (70,574

Rest of Europe

    

Recurring revenue

     48,415       43,507  

Non-recurring revenue

     1,817       2,418  
  

 

 

   

 

 

 

Revenue

     50,232       45,925  
  

 

 

   

 

 

 

Operating income

     21,008       19,602  

Operating income margin

     41.8     42.7
  

 

 

   

 

 

 

Adjusted EBITDA

     32,242       27,571  
  

 

 

   

 

 

 

Gross profit margin

     71.8     67.6

Adjusted EBITDA margin

     64.2     60.0

Total assets

     649,091       425,392  

Total liabilities(a)

     205,603       88,036  

Capital expenditure, including intangible assets(b)

     (41,586     (22,667

Corporate and other

    

Operating income

     (24,481     (20,363
  

 

 

   

 

 

 

Adjusted EBITDA

     (16,086     (14,673
  

 

 

   

 

 

 

Total assets

     164,315       90,998  

Total liabilities(a)

     1,227,090       831,539  

Capital expenditure, including intangible assets(b)

     (2,871     (2,954

 

(a)

Certain comparative figures as at 31 March 2018 have been restated compared to the amounts disclosed on Form 6-K furnished on 7 March 2018. For further details see note 2 and Note 28 of our 2018 Consolidated Financial Statements included on Form 20-F, filed with the SEC on 30 April 2019.

(b)

Capital expenditure, including intangible assets, represents payments to acquire property, plant and equipment and intangible assets, as recorded in the condensed consolidated statements of cash flows as “Purchase of property, plant and equipment” and “Purchase of intangible assets”, respectively.

 

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INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION

(in €’000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended  
     Mar-31     Mar-31  
     2019     2018  

Reconciliation to Adjusted EBITDA

    

Consolidated

    

Net income

     8,399       11,657  

Income tax expense

     4,778       3,812  
  

 

 

   

 

 

 

Profit before taxation

     13,177       15,469  

Net finance expense

     16,662       11,404  
  

 

 

   

 

 

 

Operating income

     29,839       26,873  

Depreciation and amortisation

     41,678       29,559  

Share-based payments

     5,680       3,322  

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

    

M&A transaction costs(a)

     80       1,208  

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

     —         (86
  

 

 

   

 

 

 

Adjusted EBITDA(c)

     77,277       60,876  
  

 

 

   

 

 

 

France, Germany, the Netherlands, and the UK

    

Operating income

     33,312       27,634  

Depreciation and amortisation

     27,407       20,086  

Share-based payments

     402       344  

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

     —         (86
  

 

 

   

 

 

 

Adjusted EBITDA(c)

     61,121       47,978  
  

 

 

   

 

 

 

Rest of Europe

    

Operating income

     21,008       19,602  

Depreciation and amortisation

     10,879       7,745  

Share-based payments

     355       224  
  

 

 

   

 

 

 

Adjusted EBITDA(c)

     32,242       27,571  
  

 

 

   

 

 

 

Corporate and Other

    

Operating loss

     (24,481     (20,363

Depreciation and amortisation

     3,392       1,727  

Share-based payments

     4,923       2,755  

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

    

M&A transaction costs(a)

     80       1,208  
  

 

 

   

 

 

 

Adjusted EBITDA(c)

     (16,086     (14,673
  

 

 

   

 

 

 

 

(a)

“M&A transaction costs” are costs associated with the evaluation, diligence and conclusion or termination of merger or acquisition activity. These costs are included in “General and administrative costs”.

(b)

“Items related to sub-leases on unused data centre sites” represents the income on sub-lease of portions of unused data centre sites to third parties. This income is treated as “Other income”.

(c)

“Adjusted EBITDA” is a non-IFRS financial measure. See “Non-IFRS Financial Measures” for more information, including why we believe Adjusted EBITDA is useful, and the limitations on the use of Adjusted EBITDA.

 

16


LOGO

Press Release, 9 May 2019

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED BALANCE SHEET

(in €’000 — except where stated otherwise)

(unaudited)

 

     As at  
     Mar-31     Dec-31  
     2019     2018  

Non-current assets

    

Property, plant and equipment

     1,771,682       1,721,064  

Right-of-use assets

     463,732       —    

Intangible assets

     65,666       64,331  

Goodwill

     38,900       38,900  

Deferred tax assets

     22,887       21,807  

Other investments

     9,590       7,906  

Other non-current assets

     16,046       16,843  
  

 

 

   

 

 

 
     2,388,503       1,870,851  

Current assets

    

Trade receivables and other current assets

     192,410       205,613  

Cash and cash equivalents

     118,176       186,090  
  

 

 

   

 

 

 
     310,586       391,703  
  

 

 

   

 

 

 

Total assets

     2,699,089       2,262,554  
  

 

 

   

 

 

 

Shareholders’ equity

    

Share capital

     7,186       7,170  

Share premium

     558,766       553,425  

Foreign currency translation reserve

     6,600       3,541  

Hedging reserve, net of tax

     (169     (165

Accumulated profit

     77,848       69,449  
  

 

 

   

 

 

 
     650,231       633,420  

Non-current liabilities

    

Borrowings

     1,235,353       1,266,813  

Lease liabilities

     426,567       —    

Deferred tax liabilities

     17,513       16,875  

Other non-current liabilities

     15,238       34,054  
  

 

 

   

 

 

 
     1,694,671       1,317,742  

Current liabilities

    

Trade payables and other current liabilities

     294,924       280,877  

Lease liabilities

     45,935       —    

Income tax liabilities

     9,070       7,185  

Borrowings

     4,258       23,330  
  

 

 

   

 

 

 
     354,187       311,392  
  

 

 

   

 

 

 

Total liabilities

     2,048,858       1,629,134  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     2,699,089       2,262,554  
  

 

 

   

 

 

 

 

17


LOGO

Press Release, 9 May 2019

 

INTERXION HOLDING NV

NOTES TO THE CONDENSED CONSOLIDATED BALANCE SHEET: BORROWINGS AND LEASE LIABILITIES

(in €’000 — except where stated otherwise)

(unaudited)

 

     As at  
     Mar-31      Dec-31  
     2019      2018  

Borrowings and lease liabilities net of cash and cash equivalents

     

Cash and cash equivalents

     118,176        186,090  

4.75% Senior Notes due 2025(a)

     1,188,676        1,188,387  

Finance lease liabilities (IAS 17)(b)

     —          50,374  

Mortgages

     50,935        51,382  
  

 

 

    

 

 

 

Borrowings

     1,239,611        1,290,143  

Lease liabilities (IFRS 16)(b)

     472,502        —    
  

 

 

    

 

 

 

Total borrowings and lease liabilities

     1,712,113        1,290,143  
  

 

 

    

 

 

 

Borrowings and lease liabilities net of cash and cash equivalents(c)

     1,593,937        1,104,053  
  

 

 

    

 

 

 

 

(a)

€1,200 million 4.75% Senior Notes due 2025 include a premium on additional issuances and are shown after deducting commissions, offering fees and expenses.

(b)

Under IFRS 16, finance lease liabilities are included in the aggregated amount of lease liabilities rather than presented separately.

(c)

Total borrowings and lease liabilities exclude deferred financing costs of €2.3 million as of 31 December 2018 which were incurred in connection with the €300 million Revolving Credit Facility, entered into on 18 June 2018, and deferred financing costs of €2.9 million as of 31 March 2019 relate to the Revolving Credit Facility and the increased capacity thereunder in March 2019.

 

18


LOGO

Press Release, 9 May 2019

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in €’000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended  
     Mar-31
2019
    Mar-31
2018
 

Net income

     8,399       11,657  

Depreciation and amortisation

     41,678       29,559  

Share-based payments

     5,106       3,215  

Net finance expense

     16,662       11,404  

Income tax expense

     4,778       3,812  
  

 

 

   

 

 

 
     76,623       59,647  

Movements in trade receivables and other assets

     (19,204     (6,194

Movements in trade payables and other liabilities

     22,446       4,628  
  

 

 

   

 

 

 

Cash generated from / (used in) operations

     79,865       58,081  

Interest and fees paid(a)

     (4,865     (20,232

Income tax paid

     (3,659     (3,273
  

 

 

   

 

 

 

Net cash flows from / (used in) operating activities

     71,341       34,576  

Cash flows from / (used in) investing activities

    

Purchase of property, plant and equipment

     (140,695     (94,218

Financial investments - deposits

     12,594       166  

Purchase of intangible assets

     (3,386     (1,977

Loans provided

     (439     (417
  

 

 

   

 

 

 

Net cash flows from / (used in) investing activities

     (131,926     (96,446

Cash flows from / (used in) financing activities

    

Proceeds from exercised options

     252       71  

Repayment of mortgages

     (472     (548

Proceeds from revolving credit facilities

     —         79,438  

Principal elements of lease payments (2018: Financial lease obligation)

     (6,529     —    

Transaction costs 4.75% Senior Notes

     (200     —    

Transaction costs revolving credit facility

     (603     —    
  

 

 

   

 

 

 

Net cash flows from / (used in) financing activities

     (7,552     78,961  

Effect of exchange rate changes on cash

     223       (239
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     (67,914     16,852  

Cash and cash equivalents, beginning of period

     186,090       38,484  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

     118,176       55,336  
  

 

 

   

 

 

 

 

(a)

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

 

19


LOGO

Press Release, 9 May 2019

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET: IFRS 16 IMPACT RECONCILIATION

(in €’000)

(unaudited)

 

     Three Months Ended  
     Mar-31
2019

As Reported
    Effect of
change
due to IFRS 16
    Mar-31
2019
Excl. IFRS 16
 

Consolidated

      

Recurring revenue

     145,279       —         145,279  

Non-recurring revenue

     6,252       —         6,252  
  

 

 

   

 

 

   

 

 

 

Revenue

     151,531       —         151,531  

Gross profit

     101,137       6,622       94,515  

Gross profit margin

     66.7     4.3     62.4

Operating income

     29,839       1,533       28,306  

Adjusted EBITDA

     77,277       7,995       69,282  

Adjusted EBITDA margin

     51.0     5.3     45.7

Depreciation and amortization

     41,678       6,461       35,217  

Net finance expense

     16,662       3,079       13,583  

France, Germany, the Netherlands, and the UK

      

Recurring revenue

     96,864       —         96,864  

Non-recurring revenue

     4,435       —         4,435  
  

 

 

   

 

 

   

 

 

 

Revenue

     101,299       —         101,299  

Operating income

     33,312       1,141       32,171  

Adjusted EBITDA

     61,121       5,128       55,993  

Adjusted EBITDA margin

     60.3     5.0     55.3

Rest of Europe

      

Recurring revenue

     48,415       —         48,415  

Non-recurring revenue

     1,817       —         1,817  
  

 

 

   

 

 

   

 

 

 

Revenue

     50,232       —         50,232  

Operating income

     21,008       376       20,632  

Adjusted EBITDA

     32,242       2,397       29,845  

Adjusted EBITDA margin

     64.2     4.8     59.4

Corporate and Other

      

Operating income

     (24,481     16       (24,497

Adjusted EBITDA

     (16,086     470       (16,556
     As at  
     Mar-31
2019

As Reported
    Effect of
change
due to IFRS 16
    Mar-31
2019
Excl. IFRS 16
 

Consolidated

      

Non-current assets

     2,388,503       414,259       1,974,244  

Current assets

     310,586       (18,299     328,885  

Non-current liabilities

     1,694,671       371,975       1,322,696  

Current liabilities

     354,187       25,363       328,824  

France, Germany, the Netherlands, and the UK

      

Total assets

     1,885,683       288,169       1,597,514  

Total liabilities

     616,165       289,314       326,851  

Rest of Europe

      

Total assets

     649,091       104,238       544,853  

Total liabilities

     205,603       104,473       101,130  

Corporate and Other

      

Total assets

     164,315       3,553       160,762  

Total liabilities

     1,227,090       3,551       1,223,539  

 

20


LOGO

Press Release, 9 May 2019

 

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  
     Mar-31
2019
    Mar-31
2018
 

Net income - as reported

     8,399       11,657  

Add back

    

+ M&A transaction costs

     80       1,208  
  

 

 

   

 

 

 
     80       1,208  

Reverse

    

- Interest capitalised

     (1,880     (884
  

 

 

   

 

 

 
     (1,880     (884

Tax effect of above add backs & reversals

     450       (81
  

 

 

   

 

 

 

Adjusted net income

     7,049       11,900  
  

 

 

   

 

 

 

Reported basic EPS: (€)

     0.12       0.16  

Reported diluted EPS: (€)

     0.12       0.16  

Adjusted basic EPS: (€)

     0.10       0.17  

Adjusted diluted EPS: (€)

     0.10       0.17  

 

21


LOGO

Press Release, 9 May 2019

 

INTERXION HOLDING NV

Status of Announced Expansion Projects as at 9 May 2019

with Target Open Dates after 31 December 2018

 

Market

  

Project

   CAPEX(a)(b)
(€ million)
     Equipped
Space(a)
(sqm)
    

Schedule

Amsterdam

   AMS10: Phases 1 - 3      195        9,500      4Q 2019 - 3Q 2020(c)

Copenhagen

   CPH2: Phases 3 - 5      18        1,500      2Q 2018 - 4Q 2019(d)

Dusseldorf

   DUS2: Phase 3      5        500      1Q 2019 - 2Q 2019(e)

Frankfurt

   FRA13: Phases 1 - 2 New Build      90        4,900      3Q 2018 - 1Q 2019(f)

Frankfurt

   FRA14: Phases 1 - 2 New Build      76        4,600      3Q 2019 - 4Q 2019(g)

Frankfurt

   FRA15: Phases 1 - 2 New Build      137        4,900      2Q 2020 - 4Q 2020(h)

London

   LON3: New Build      35        1,800      1Q 2019 - 3Q 2019(i)

Madrid

   MAD3: New Build      44        2,500      2Q 2019 - 4Q 2019(j)

Marseille

   MRS2: Phase 2 - 4      72        4,200      2Q 2018 - 4Q 2019(k)

Marseille

   MRS3: Phase 1 New Build      79        2,300      1Q 2020

Paris

   PAR7.2: Phase B (cont.) - C      47        2,500      2Q 2018 -2Q 2019(l)

Stockholm

   STO5: Phases 2 - 3      19        1,200      1Q 2018 - 2Q 2019(m)

Vienna

   VIE2: Phase 7 - 9      94        4,300      4Q 2017 - 2Q 2019(n)

Zurich

   ZUR1: Phase 6      10        300      2Q 2019

Zurich

   ZUR2: Phase 1 - 2 New Build      93        3,600      3Q 2020(o)
     

 

 

    

 

 

    

Total

        1,014        48,600     

 

(a)

CAPEX and Equipped space are approximate and may change. SQM figures are rounded to nearest 100 sqm unless otherwise noted, and totals may not add due to rounding.

(b)

CAPEX reflects the total spend for the projects listed at full power and capacity and the amounts shown in the table above may be invested over time.

(c)

AMS10: Phase 1 (2,700 sqm) is scheduled to open in 4Q 2019; phase 2 (4,100 sqm) is scheduled to open in 1Q 2020, phase 3 (2,700 sqm) is scheduled to open in 3Q 2020.

(d)

CPH2: Phases 3 and 4 (900 sqm total) opened in 2Q 2018; phase 5 (600 sqm) is scheduled to open in 4Q 2019.

(e)

DUS2: Phase 3 partially opened (300 sqm) in 1Q 2019, the remaining 200 sqm is scheduled to open in 2Q 2019.

(f)

FRA13: Phase 1 (2,300 sqm) opened in 3Q 2018; phase 2 (2,600 sqm) opened in 1Q 2019.

(g)

FRA14: Phase 1 (2,400 sqm) is scheduled to open in 3Q 2019 and phase 2 (2,200 sqm) is scheduled to open in 4Q 2019.

(h)

FRA15: Phase 1 (2,300 sqm) is scheduled to open in 2Q 2020 and phase 2 (2,600 sqm) is scheduled to open in 4Q 2020.

(i)

LON3: Phase 1 (300 sqm) opened in 1Q 2019, phase 2 (600 sqm) is scheduled to open in 2Q 2019 and phase 3 (900 sqm) is scheduled to open in 3Q 2019.

(j)

MAD3: 1,100 sqm is scheduled to open in 2Q 2019, 700 sqm is scheduled to open in 3Q 2019, and 700 sqm is scheduled to open in 4Q 2019.

(k)

MRS2: Phase 2 (700 sqm) opened in 2Q and 3Q 2018; phase 3 (1,100 sqm) is scheduled to open in 2Q 2019 and phase 4 (2,500 sqm) is scheduled to open 4Q 2019.

(l)

PAR7.2: Phase B (cont.) (500 sqm) opened in 2Q 2018; phase C part (1,500 sqm) opened in 4Q2018 and the rest (500 sqm) is scheduled to open in 2Q 2019.

(m)

STO5: Phases 2-3—100 sqm opened in 1Q 2018; 300 sqm became operational in 2Q 2018; 800 sqm is scheduled to open in 2Q 2019.

(n)

VIE2: 2,300 sqm opened in 4Q 2017 through 3Q 2018; remaining 2,000 sqms are scheduled to open in 2Q 2019.

(o)

ZUR2: Phase 1 (1,700 sqm) and phase 2 (1,900 sqm) are scheduled to open in 3Q 2020.

 

22