Financial and Business Highlights
WASHINGTON, April 29, 2022 /PRNewswire/ -- Cogent Communications Holdings, Inc. (NASDAQ: CCOI) ("Cogent") today announced service revenue of $149.2 million for the three months ended March 31, 2022, an increase of 1.3% from the three months ended December 31, 2021 and an increase of 1.6% from the three months ended March 31, 2021. Foreign exchange rates negatively impacted service revenue growth from the three months ended December 31, 2021 to the three months ended March 31, 2022 by $0.5 million and negatively impacted service revenue growth from the three months ended March 31, 2021 to the three months ended March 31, 2022 by $1.9 million. On a constant currency basis, service revenue increased by 1.7% from the three months ended December 31, 2021 to the three months ended March 31, 2022 and increased by 2.9% from the three months ended March 31, 2021 to the three months ended March 31, 2022. The impact of excise taxes, including Universal Service Fund fees, recorded on a gross basis and included in service revenue and cost of network operations expense, negatively impacted service revenue growth from the three months ended December 31, 2021 to the three months ended March 31, 2022 by $0.6 million and negatively impacted service revenue growth from the three months ended March 31, 2021 to the three months ended March 31, 2022 by $0.8 million. On a constant currency basis, and adjusting for the impact of changes in excise tax revenue, service revenue increased by 2.1% from the three months ended December 31, 2021 to the three months ended March 31, 2022 and increased by 3.5% from the three months ended March 31, 2021 to the three months ended March 31, 2022.
On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was $112.6 million for the three months ended March 31, 2022, an increase of 1.7% from the three months ended December 31, 2021 and an increase of 2.4% from the three months ended March 31, 2021.
Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Off-net revenue was $36.4 million for the three months ended March 31, 2022; an increase of 0.2% from the three months ended December 31, 2021 and a decrease of 0.9% from the three months ended March 31, 2021.
Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. GAAP gross profit increased by 2.0% from the three months ended March 31, 2021 to $69.0 million for the three months ended March 31, 2022 and increased by 1.2% from the three months ended December 31, 2021. GAAP gross margin was 46.3% for the three months ended March 31, 2022, 46.1% for the three months ended March 31, 2021 and 46.3% for the three months ended December 31, 2021.
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as Non-GAAP gross profit divided by total service revenue. Non-GAAP gross profit increased by 0.1% from the three months ended March 31, 2021 to $91.9 million for the three months ended March 31, 2022 and increased by 1.0% from the three months ended December 31, 2021. Non-GAAP gross margin was 61.6% for the three months ended March 31, 2022, 62.5% for the three months ended March 31, 2021 and 61.8% for the three months ended December 31, 2021.
Excise taxes, including Universal Service Fund fees, recorded on a gross basis and included in service revenue and cost of network operations expense were $3.7 million for the three months ended March 31, 2022, $4.5 million for the three months ended March 31, 2021 and $4.3 million for the three months ended December 31, 2021.
Net cash provided by operating activities increased by 4.9% from the three months ended March 31, 2021 to $49.4 million for the three months ended March 31, 2022 and increased by 37.3% from the three months ended December 31, 2021.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 2.9% from the three months ended March 31, 2021 to $57.2 million for the three months ended March 31, 2022 and decreased by 0.4% from the three months ended December 31, 2021. EBITDA margin was 38.3% for the three months ended March 31, 2022, 37.8% for the three months ended March 31, 2021 and 39.0% for the three months ended December 31, 2021.
Basic net income per share was $0.02 for the three months ended March 31, 2022, $0.41 for the three months ended March 31, 2021 and $0.40 for the three months ended December 31, 2021. Diluted net income per share was $0.02 for the three months ended March 31, 2022, $0.41 for the three months ended March 31, 2021 and $0.39 for the three months ended December 31, 2021.
Unrealized foreign exchange gains on Cogent's 2024 Senior Euro Unsecured Notes were $8.0 million for the three months ended March 31, 2022, $18.9 million for the three months ended March 31, 2021 and $8.8 million for the three months ended December 31, 2021.
Total customer connections increased by 4.4% from March 31, 2021 to 94,884 as of March 31, 2022 and increased by 1.2% from December 31, 2021. On-net customer connections increased by 4.1% from March 31, 2021 to 81,627 as of March 31, 2022 and increased by 1.1% from December 31, 2021. Off-net customer connections increased by 5.8% from March 31, 2021 to 12,922 as of March 31, 2022 and increased by 2.0% from December 31, 2021.
The number of on-net buildings increased by 126 from March 31, 2021 to 3,065 as of March 31, 2022 and increased by 30 from December 31, 2021.
Effective April 29, 2022, Sean Wallace resigned his position as Cogent's Chief Financial Officer to accept another CFO position and Thaddeus ''Tad" Weed, Cogent's Senior Vice President of Audit & Operations was reappointed as Cogent's Chief Financial Officer. Dave Schaeffer, Cogent's Chief Executive Officer stated; "I want to personally thank Sean, who I have known for 25 years, for his excellent performance and his willingness to step in as Cogent's Chief Financial Officer while Tad Weed was on medical leave. Tad has been serving as our Senior Vice President of Audit & Operations and while in this position, Tad implemented numerous operational improvements which led to substantial cost savings for Cogent. Tad previously served as our Chief Financial Officer from May 2004 until March 2020 and, now that Tad has recovered and after a brief transition period with Sean, Tad will resume his CFO duties. I am excited to welcome Tad back to serve as our CFO."
Quarterly Dividend Increase Approved
On April 29, 2022, Cogent's Board approved a regular quarterly dividend of $0.880 per share payable on May 27, 2022 to shareholders of record on May 13, 2022. This second quarter 2022 regular dividend represents an increase of $0.025 per share, or 2.9%, from the first quarter 2022 regular dividend of $0.855 per share and an annual increase of 12.8% from the second quarter 2021 dividend of $0.780 per share.
The payment of any future dividends and any other returns of capital will be at the discretion of the Board and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements, limitations under Cogent's debt indentures and other factors deemed relevant by the Board.
Impact of COVID-19
Cogent continues to be impacted by the COVID-19 pandemic and the accompanying responses by governments around the world. The recent spread of variants of COVID-19 has introduced new uncertainty.
The ongoing impact of the COVID-19 pandemic, including the spread of variant strains, and related government restrictions on Cogent's business is unknown as a significant amount of uncertainty and volatility remains. Cogent does not know the ultimate scope and duration of the pandemic, the availability, efficacy and uptake of vaccines and therapeutic treatments, government actions that have been taken, or may be taken in the future in response to the pandemic and global economic conditions during and after the pandemic. Cogent has experienced a slight slowdown in the availability and delivery of networking equipment but Cogent believes it can adequately manage the operation, maintenance, upgrading and growth of its network. A worsening or prolonged slowdown may impact our ability to expand and augment our network. Most Cogent employees worldwide returned to its offices on a full-time basis in the first quarter of 2022. Cogent is implementing measures to protect its workforce, but it can provide no assurance that these measures will be sufficient. Cogent's decisions to require its employees to return to its offices on a full-time basis and to implement a COVID-19 vaccine mandate, where legally permitted, may impede its ability to retain existing employees or attract new employees. Moreover, Cogent's results of operations may be adversely affected in the future as the pandemic and the related government restrictions continue or are reintroduced. Cogent may also experience slowdowns in new customer orders, find it difficult to collect from customers who are experiencing financial distress, undergo an increase in customer churn, encounter difficulties accessing the buildings and locations where Cogent installs new services and serves existing customers, or have difficulties procuring, shipping or installing necessary equipment on its network. Cogent may find that the impact of the pandemic on its vendors and their respective workforces may slow the delivery of services from these vendors to Cogent. Cogent may also find that its largest customer base, which is served primarily in its multi-tenant office buildings, may be adversely affected by falling demand for commercial office space in central business districts as companies located in these buildings elect not to return to their office space either on a temporary or even permanent basis or slow the pace of opening new offices. In addition, Cogent's corporate customer base may reduce their overall number of locations due to adverse economic conditions or new working configurations which may adversely affect Cogent's number of corporate connections and service revenues. As a result, the global economic impact of the COVID-19 pandemic may have prolonged effects that impact Cogent's business well into the future. These and other risks are described in more detail in Cogent's Annual Report on Form 10-K for the year ended December 31, 2021 and it Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.
Conference Call and Website Information
Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on May 5, 2022 to discuss Cogent's operating results for the first quarter of 2022 and to discuss Cogent's expectations for full year 2022. Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" section of Cogent's website at www.cogentco.com/events. A replay of the webcast, together with the press release, will be available on the website following the earnings call. A downloadable file of Cogent's "Summary of Financial and Operational Results" and a transcript of its conference call will also be available on Cogent's website following the conference call.
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high-speed Internet access, Ethernet transport, and colocation services. Cogent's facilities-based, all-optical IP network backbone provides services in 216 markets globally.
Cogent Communications is headquartered at 2450 N Street, NW, Washington, D.C. 20037. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at [email protected].
COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES Summary of Financial and Operational Results
|
|||||
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
|
Metric ($ in 000's, except |
|||||
On-Net revenue |
$109,947 |
$111,041 |
$111,099 |
$110,749 |
$112,634 |
% Change from previous Qtr. |
2.6% |
1.0% |
0.1% |
-0.3% |
1.7% |
Off-Net revenue |
$36,723 |
$36,699 |
$36,656 |
$36,304 |
$36,387 |
% Change from previous Qtr. |
0.1% |
-0.1% |
-0.1% |
-1.0% |
0.2% |
Non-Core revenue (1) |
$107 |
$139 |
$172 |
$155 |
$154 |
% Change from previous Qtr. |
-10.8% |
29.9% |
23.7% |
-9.9% |
-0.6% |
Service revenue – total |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
% Change from previous Qtr. |
2.0% |
0.8% |
0.0% |
-0.5% |
1.3% |
Constant currency total |
1.7% |
0.6% |
0.5% |
0.1% |
1.7% |
Constant currency total |
2.3% |
2.8% |
3.6% |
2.9% |
2.9% |
Constant currency and |
1.4% |
0.5% |
0.5% |
0.4% |
2.1% |
Constant currency and |
1.8% |
1.7% |
2.9% |
2.8% |
3.5% |
Excise Taxes included in |
$4,528 |
$4,811 |
$4,813 |
$4,336 |
$3,742 |
% Change from previous Qtr. |
9.3% |
6.3% |
0.0% |
-9.9% |
-13.7% |
Network operations expenses (2) |
$55,016 |
$56,044 |
$56,482 |
$56,272 |
$57,305 |
% Change from previous Qtr. |
0.9% |
1.9% |
0.8% |
-0.4% |
1.8% |
GAAP gross profit (3) |
$67,715 |
$69,603 |
$68,673 |
$68,223 |
$69,038 |
% Change from previous Qtr. |
1.6% |
2.8% |
-1.3% |
-0.7% |
1.2% |
GAAP gross margin (3) |
46.1% |
47.1% |
46.4% |
46.3% |
46.3% |
Non-GAAP gross profit (4) (6) |
$91,761 |
$91,835 |
$91,445 |
$90,936 |
$91,870 |
% Change from previous Qtr. |
2.7% |
0.1% |
-0.4% |
-0.6% |
1.0% |
Non-GAAP gross margin (4) (6) |
62.5% |
62.1% |
61.8% |
61.8% |
61.6% |
Selling, general and |
$36,211 |
$34,654 |
$33,692 |
$33,526 |
$34,715 |
% Change from previous Qtr. |
7.4% |
-4.3% |
-2.8% |
-0.5% |
3.5% |
Depreciation and amortization expense |
$21,970 |
$22,096 |
$22,609 |
$22,567 |
$22,688 |
% Change from previous Qtr. |
-2.2% |
0.6% |
2.3% |
-0.2% |
0.5% |
Equity-based compensation expense |
$7,307 |
$6,874 |
$6,588 |
$6,053 |
$6,056 |
% Change from previous Qtr. |
25.0% |
-5.9% |
-4.2% |
-8.1% |
0.0% |
Operating income |
$26,291 |
$28,211 |
$28,556 |
$36,165 |
$28,784 |
% Change from previous Qtr. |
-4.0% |
7.3% |
1.2% |
26.6% |
-20.4% |
Interest expense |
$15,836 |
$14,236 |
$17,349 |
$19,653 |
$35,439 |
% Change from previous Qtr. |
-1.1% |
-10.1% |
21.9% |
13.3% |
80.3% |
Non-cash interest expense – |
$3,076 |
$5,939 |
$21,271 |
||
% Change from previous Qtr. |
93.1% |
258.2% |
|||
Net income (loss) |
$18,851 |
$(2,493) |
$13,320 |
$18,507 |
$1,137 |
Realized and unrealized |
$18,870 |
$(5,280) |
$10,169 |
$8,763 |
$8,014 |
Basic net income (loss) per |
$0.41 |
$(0.05) |
$0.29 |
$0.40 |
$0.02 |
Diluted net income (loss) |
$0.41 |
$(0.05) |
$0.28 |
$0.39 |
$0.02 |
Weighted average common |
46,067,096 |
46,229,603 |
46,293,524 |
46,420,168 |
46,575,848 |
% Change from previous Qtr. |
0.4% |
0.4% |
0.1% |
0.3% |
0.3% |
Weighted average common |
46,507,258 |
46,229,603 |
46,866,929 |
46,992,639 |
46,929,191 |
% Change from previous Qtr. |
1.3% |
-0.6% |
1.4% |
0.3% |
-0.1% |
EBITDA (6) |
$55,550 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
% Change from previous Qtr. |
-0.2% |
2.9% |
1.0% |
-0.6% |
-0.4% |
EBITDA margin |
37.8% |
38.7% |
39.0% |
39.0% |
38.3% |
Gains on asset related transactions |
$18 |
$- |
$- |
$- |
$- |
EBITDA, as adjusted (6) |
$55,568 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
% Change from previous Qtr. |
-0.2% |
2.9% |
1.0% |
-0.6% |
-0.4% |
EBITDA, as adjusted, margin |
37.9% |
38.7% |
39.0% |
39.0% |
38.3% |
Net cash provided by |
$47,106 |
$39,749 |
$47,418 |
$35,984 |
$49,411 |
% Change from previous Qtr. |
25.4% |
-15.6% |
19.3% |
-24.1% |
37.3% |
Capital expenditures |
$15,444 |
$17,217 |
$21,959 |
$15,296 |
$18,121 |
% Change from previous Qtr. |
-2.6% |
11.5% |
27.5% |
-30.3% |
18.5% |
Principal payments of |
$5,744 |
$6,192 |
$4,890 |
$6,228 |
$5,863 |
% Change from previous Qtr. |
24.9% |
7.8% |
-21.0% |
27.4% |
-5.9% |
Dividends paid |
$36,081 |
$37,001 |
$37,654 |
$39,552 |
$41,298 |
Purchases of common stock |
$- |
$- |
$- |
$- |
$- |
Gross Leverage Ratio |
4.39 |
5.13 |
5.07 |
5.02 |
4.94 |
Net Leverage Ratio |
3.31 |
3.45 |
3.50 |
3.58 |
3.58 |
Customer Connections – |
|||||
On-Net |
78,389 |
79,146 |
80,162 |
80,723 |
81,627 |
% Change from previous Qtr. |
1.4% |
1.0% |
1.3% |
0.7% |
1.1% |
Off-Net |
12,216 |
12,386 |
12,495 |
12,669 |
12,922 |
% Change from previous Qtr. |
2.1% |
1.4% |
0.9% |
1.4% |
2.0% |
Non-Core (1) |
320 |
336 |
334 |
334 |
335 |
% Change from previous Qtr. |
-1.5% |
5.0% |
-0.6% |
-% |
0.3% |
Total customer connections |
90,925 |
91,868 |
92,991 |
93,726 |
94,884 |
% Change from previous Qtr. |
1.5% |
1.0% |
1.2% |
0.8% |
1.2% |
On-Net Buildings – end of period |
|||||
Multi-Tenant office buildings |
1,796 |
1,802 |
1,816 |
1,817 |
1,824 |
Carrier neutral data center buildings |
1,089 |
1,119 |
1,138 |
1,164 |
1,187 |
Cogent data centers |
54 |
54 |
54 |
54 |
54 |
Total on-net buildings |
2,939 |
2,975 |
3,008 |
3,035 |
3,065 |
Total carrier neutral data |
1,274 |
1,309 |
1,332 |
1,359 |
1,383 |
Square feet – multi-tenant |
978,095,164 |
979,876,141 |
984,753,702 |
986,941,224 |
992,336,259 |
Network – end of period |
|||||
Intercity route miles |
58,761 |
59,741 |
59,741 |
60,676 |
60,869 |
Metro fiber miles |
38,058 |
38,351 |
38,825 |
39,559 |
40,113 |
Connected networks – AS's |
7,471 |
7,530 |
7,597 |
7,569 |
7,625 |
Headcount – end of period |
|||||
Sales force – quota bearing |
547 |
565 |
516 |
490 |
479 |
Sales force - total |
693 |
710 |
662 |
633 |
620 |
Total employees |
1,066 |
1,087 |
1,031 |
1,001 |
987 |
Sales rep productivity – |
4.3 |
4.5 |
4.3 |
4.2 |
4.7 |
FTE – sales reps |
522 |
511 |
521 |
467 |
453 |
(1) |
Consists of legacy services of companies whose assets or businesses were acquired by Cogent. |
(2) |
Network operations expense excludes equity-based compensation expense of $2,076, $136, $163, $146 and $144 in the three month periods ended March 31, 2021 through March 31, 2022, respectively. Network operations expense includes excise taxes, including Universal Service Fund fees of $4,528, $4,811, $4,813, $4,336 and $3,742 in the three month periods ended March 31, 2021 through March 31, 2022, respectively. |
(3) |
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. |
(4) |
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue. Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures to provide investors. Management uses them to measure the margin available to the company after network service costs, in essence a measure of the efficiency of the Company's network. |
(5) |
Excludes equity-based compensation expense of $5,231, $6,738, $6,425, $5,907 and $5,912 in the three month periods |
(6) |
See Schedules of Non-GAAP measures below for definitions and reconciliations to GAAP measures. |
Schedules of Non-GAAP Measures EBITDA, EBITDA, as adjusted, EBITDA margin and EBITDA, as adjusted, margin
EBITDA represents net cash flows provided by operating activities plus changes in operating assets and liabilities, cash interest expense and cash income tax expense. Management believes the most directly comparable measure to EBITDA calculated in accordance with generally accepted accounting principles in the United States, or GAAP, is net cash provided by operating activities. The Company also believes that EBITDA is a measure frequently used by securities analysts, investors, and other interested parties in their evaluation of issuers. EBITDA, as adjusted, represents EBITDA plus net gains (losses) on asset related transactions. EBITDA margin is defined as EBITDA divided by total service revenue. EBITDA, as adjusted, margin is defined as EBITDA, as adjusted, divided by total service revenue.
The Company believes that EBITDA, EBITDA, as adjusted, EBITDA margin and EBITDA as adjusted margin are useful measures of its ability to service debt, fund capital expenditures and expand its business. The measurements are an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. EBITDA, EBITDA, as adjusted, EBITDA margin and EBITDA, as adjusted, margin are not recognized terms under GAAP and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, these measures are not intended to reflect the Company's free cash flow, as it does not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of these measures may also differ from the calculations performed by its competitors and other companies and as such, its utility as a comparative measure is limited.
EBITDA, and EBITDA, as adjusted, are reconciled to net cash provided by operating activities in the table below.
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
|
($ in 000's) – unaudited |
|||||
Net cash provided by operating activities |
$47,106 |
$39,749 |
$47,418 |
$35,984 |
$49,411 |
Changes in operating assets and liabilities |
$(9,060) |
$2,352 |
$(6,267) |
$(7,095) |
$(35,572) |
Cash interest expense and income tax expense |
17,504 |
15,080 |
16,602 |
28,521 |
43,316 |
EBITDA |
$55,550 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
PLUS: Gains on asset related transactions |
18 |
- |
- |
- |
- |
EBITDA, as adjusted |
$55,568 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
EBITDA margin |
37.8% |
38.7% |
39.0% |
39.0% |
38.3% |
EBITDA, as adjusted, margin |
37.9% |
38.7% |
39.0% |
39.0% |
38.3% |
Constant currency revenue is reconciled to service revenue as reported in the tables below.
Constant currency impact on revenue changes – sequential periods
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(447) |
(150) |
709 |
808 |
516 |
Service revenue - as adjusted for currency impact (1) |
$146,330 |
$147,729 |
$148,636 |
$148,016 |
$149,691 |
Service revenue, as reported – prior sequential period |
$143,901 |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
Constant currency increase |
$2,429 |
$952 |
$757 |
$89 |
$2,483 |
Constant currency percent increase |
1.7% |
0.6% |
0.5% |
0.1% |
1.7% |
(1) |
Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Constant currency impact on revenue changes – prior year periods
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(2,608) |
(2,965) |
(555) |
916 |
1,914 |
Service revenue - as adjusted for currency impact (2) |
$144,169 |
$144,914 |
$147,372 |
$148,124 |
$151,089 |
Service revenue, as reported – prior year period |
$140,915 |
$140,990 |
$142,302 |
$143,901 |
$146,777 |
Constant currency increase |
$3,254 |
$3,924 |
$5,070 |
$4,223 |
$4,312 |
Constant currency percent increase |
2.3% |
2.8% |
3.6% |
2.9% |
2.9% |
(2) |
Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the comparable prior year period. The Company believes that disclosing year over year revenue growth without the impact of foreign currencies on service revenue is a useful measure of revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Revenue on a constant currency basis and adjusted for the impact of excise taxes is reconciled to service revenue as reported in the tables below.
Constant currency and excise tax impact on revenue changes – sequential periods
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(447) |
(150) |
709 |
808 |
516 |
Impact of excise taxes on service revenue |
(384) |
(283) |
(2) |
477 |
594 |
Service revenue - as adjusted for currency and excise taxes impact (3) |
$145,946 |
$147,446 |
$148,634 |
$148,493 |
$150,285 |
Service revenue, as reported – prior sequential period |
$143,901 |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
Constant currency and excise taxes increase |
$2,045 |
$669 |
$755 |
$566 |
$3,077 |
Constant currency and excise tax percent increase |
1.4% |
0.5% |
0.5% |
0.4% |
2.1% |
(3) |
Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Constant currency and excise tax impact on revenue changes – prior year periods
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(2,608) |
(2,965) |
(555) |
916 |
1,914 |
Impact of excise taxes on service revenue |
(785) |
(1,513) |
(911) |
(192) |
786 |
Service revenue - as adjusted for currency and excise taxes impact (4) |
$143,384 |
$143,401 |
$146,461 |
$147,932 |
$151,875 |
Service revenue, as reported – prior year period |
$140,915 |
$140,990 |
$142,302 |
$143,901 |
$146,777 |
Constant currency and excise taxes increase |
$2,469 |
$2,411 |
$4,159 |
$4,031 |
$5,098 |
Constant currency and excise tax percent increase |
1.8% |
1.7% |
2.9% |
2.8% |
3.5% |
(4) |
Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior year period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Non-GAAP gross profit and Non-GAAP gross margin
Non-GAAP gross profit and Non-GAAP gross margin are reconciled to GAAP gross profit and GAAP gross margin in the table below.
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
|
($ in 000's) – unaudited |
|||||
Service revenue total |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Minus - Network operations expense including equity-based compensation |
79,062 |
78,276 |
79,254 |
78,985 |
80,137 |
GAAP Gross Profit (1) |
$67,715 |
$69,603 |
$68,673 |
$68,223 |
$69,038 |
Plus - Equity-based compensation – network operations expense |
2,076 |
136 |
163 |
146 |
144 |
Plus – Depreciation and amortization expense |
21,970 |
22,096 |
22,609 |
22,567 |
22,688 |
Non-GAAP Gross Profit (2) |
$91,761 |
$91,835 |
$91,445 |
$90,936 |
$91,870 |
GAAP Gross Margin (1) |
46.1% |
47.1% |
46.4% |
46.3% |
46.3% |
Non-GAAP Gross Margin (2) |
62.5% |
62.1% |
61.8% |
61.8% |
61.6% |
(1) |
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. |
(2) |
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue. Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures to provide to investors, as they are measures that management uses to measure the margin and amount available to the Company after network service costs, in essence these are measures of the efficiency of the Company's network. |
Gross and Net Leverage RatiosGross leverage ratio is defined as total debt divided by the trailing last 12 months EBITDA, as adjusted. Net leverage ratio is defined as total net debt (total debt minus cash and cash equivalents) divided by the trailing last 12 months EBITDA, as adjusted. Cogent's gross leverage ratio and net leverage ratio are shown below.
($ in 000's) – unaudited |
As of December 31, 2021 |
As of March 31, 2022 |
Cash and cash equivalents & restricted cash |
$328,624 |
$311,771 |
Debt |
||
Capital (finance) leases – current portion |
17,048 |
17,147 |
Capital (finance) leases – long term |
228,822 |
228,102 |
Senior Secured 2022 Notes |
- |
- |
Senior Secured 2026 Notes |
500,000 |
500,000 |
Senior Unsecured Euro 2024 Notes |
397,005 |
389,019 |
Note payable |
791 |
219 |
Total debt |
1,143,666 |
1,134,487 |
Total net debt |
815,042 |
822,716 |
Trailing 12 months EBITDA, as adjusted |
227,902 |
229,499 |
Gross leverage ratio |
5.02 |
4.94 |
Net leverage ratio |
3.58 |
3.58 |
Cogent's SEC filings are available online via the Investor Relations section of www.cogentco.com or on the Securities and Exchange Commission's website at www.sec.gov.
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 (IN THOUSANDS, EXCEPT SHARE DATA)
|
||||||
March 31, |
December 31, |
|||||
(Unaudited) |
||||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
281,485 |
$ |
319,609 |
||
Restricted cash |
30,286 |
9,015 |
||||
Accounts receivable, net of allowance for credit losses of $1,476 and $1,510, respectively |
41,662 |
41,938 |
||||
Prepaid expenses and other current assets |
41,757 |
39,015 |
||||
Total current assets |
395,190 |
409,577 |
||||
Property and equipment, net |
456,419 |
457,880 |
||||
Right-of-use leased assets |
100,909 |
101,687 |
||||
Deposits and other assets |
17,251 |
15,413 |
||||
Total assets |
$ |
969,769 |
$ |
984,557 |
||
Liabilities and stockholders' equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
13,808 |
$ |
11,923 |
||
Accrued and other current liabilities |
48,314 |
39,057 |
||||
Installment payment agreement, current portion |
218 |
785 |
||||
Current maturities, operating lease liabilities |
12,118 |
12,197 |
||||
Current maturities, finance lease obligations |
17,147 |
17,048 |
||||
Total current liabilities |
91,605 |
81,010 |
||||
Senior unsecured 2024 Euro Notes, net of unamortized debt costs of $1,917 and $2,121, respectively, and |
386,418 |
394,112 |
||||
Senior secured 2026 Notes, net of unamortized debt costs of $1,094 and $1,156, respectively, and net of |
497,452 |
497,308 |
||||
Operating lease liabilities, net of current maturities |
111,656 |
111,794 |
||||
Finance lease obligations, net of current maturities |
228,102 |
228,822 |
||||
Other long term liabilities |
63,142 |
44,609 |
||||
Total liabilities |
1,378,375 |
1,357,655 |
||||
Commitments and contingencies: |
||||||
Stockholders' equity: |
||||||
Common stock, $0.001 par value; 75,000,000 shares authorized; 47,926,580 and 47,674,189 shares issued and |
48 |
48 |
||||
Additional paid-in capital |
554,552 |
547,734 |
||||
Accumulated other comprehensive income — foreign currency translation |
(13,168) |
(11,003) |
||||
Accumulated deficit |
(950,038) |
(909,877) |
||||
Total stockholders' deficit |
(408,606) |
(373,098) |
||||
Total liabilities and stockholders' deficit |
$ |
969,769 |
$ |
984,557 |
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
||||||
Three Months |
Three Months |
|||||
(Unaudited) |
(Unaudited) |
|||||
Service revenue |
$ |
149,175 |
$ |
146,777 |
||
Operating expenses: |
||||||
Network operations (including $144 and $2,076 of equity-based compensation expense, respectively, |
57,449 |
57,092 |
||||
Selling, general, and administrative (including $5,912 and $5,231 of equity-based compensation expense, |
40,627 |
41,442 |
||||
Depreciation and amortization |
22,688 |
21,970 |
||||
Total operating expenses |
120,764 |
120,504 |
||||
Gains on equipment transactions |
- |
18 |
||||
Gains on lease terminations |
373 |
|||||
Operating income |
28,784 |
26,291 |
||||
Interest expense |
(35,439) |
(15,836) |
||||
Unrealized foreign exchange gain on 2024 Euro Notes |
8,014 |
18,870 |
||||
Loss on debt extinguishment and repurchase - 2022 Notes |
- |
(3,868) |
||||
Interest income and other, net |
319 |
744 |
||||
Income before income taxes |
1,678 |
26,201 |
||||
Income tax expense |
(541) |
(7,350) |
||||
Net income |
$ |
1,137 |
$ |
18,851 |
||
Comprehensive (loss) income: |
||||||
Net income |
$ |
1,137 |
$ |
18,851 |
||
Foreign currency translation adjustment |
(2,165) |
(5,210) |
||||
Comprehensive (loss) income |
$ |
(1,028) |
$ |
13,641 |
||
Net income per common share: |
||||||
Basic and diluted net income per common share |
$ |
0.02 |
$ |
0.41 |
||
Dividends declared per common share |
$ |
0.855 |
$ |
0.755 |
||
Weighted-average common shares - basic |
46,575,848 |
46,067,096 |
||||
Weighted-average common shares - diluted |
46,929,191 |
46,507,258 |
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (IN THOUSANDS)
|
||||||
Three months |
Three months |
|||||
(Unaudited) |
(Unaudited) |
|||||
Cash flows from operating activities: |
||||||
Net income |
$ |
1,137 |
$ |
18,851 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation and amortization |
22,688 |
21,970 |
||||
Amortization of debt discount and premium |
417 |
441 |
||||
Equity-based compensation expense (net of amounts capitalized) |
6,056 |
7,307 |
||||
Gains – lease transactions |
(373) |
- |
||||
Gains - equipment transactions and other, net |
525 |
371 |
||||
Unrealized foreign currency exchange gain on 2024 Euro Notes |
(8,014) |
(18,870) |
||||
Loss on debt extinguishment and repurchase of 2022 Notes |
- |
3,868 |
||||
Deferred income taxes |
(58) |
4,497 |
||||
Changes in operating assets and liabilities: |
||||||
Accounts receivable |
76 |
2,420 |
||||
Prepaid expenses and other current assets |
(2,953) |
2,826 |
||||
Accounts payable, accrued liabilities and other long-term liabilities |
31,317 |
2,951 |
||||
Deposits and other assets |
(1,407) |
474 |
||||
Net cash provided by operating activities |
49,411 |
47,106 |
||||
Cash flows from investing activities: |
||||||
Purchases of property and equipment |
(18,121) |
(15,444) |
||||
Net cash used in investing activities |
(18,121) |
(15,444) |
||||
Cash flows from financing activities: |
||||||
Dividends paid |
(41,298) |
(36,081) |
||||
Repurchase and extinguishment of 2022 Notes |
- |
(119,679) |
||||
Proceeds from exercises of stock options |
204 |
215 |
||||
Principal payments on installment payment agreement |
(571) |
(2,378) |
||||
Principal payments of finance lease obligations |
(5,863) |
(5,744) |
||||
Net cash used in financing activities |
(47,528) |
(163,667) |
||||
Effect of exchange rates changes on cash |
(615) |
(1,316) |
||||
Net decrease in cash and cash equivalents |
(16,853) |
(133,321) |
||||
Cash, cash equivalents and restricted cash, beginning of period |
328,624 |
371,301 |
||||
Cash, cash equivalents and restricted cash, end of period |
$ |
311,771 |
$ |
237,980 |
Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including the impact of the COVID-19 pandemic and the related government policies; future economic instability in the global economy or a contraction of the capital markets which could affect spending on Internet services and our ability to engage in financing activities; the impact of changing foreign exchange rates (in particular the Euro to USD and Canadian dollar to USD exchange rates) on the translation of our non-USD denominated revenues, expenses, assets and liabilities; legal and operational difficulties in new markets; the imposition of a requirement that we contribute to the US Universal Service Fund on the basis of our Internet revenue; changes in government policy and/or regulation, including net neutrality rules by the United States Federal Communications Commission and in the area of data protection; cyber-attacks or security breaches of our network; increasing competition leading to lower prices for our services; our ability to attract new customers and to increase and maintain the volume of traffic on our network; the ability to maintain our Internet peering arrangements on favorable terms; our reliance on an equipment vendor, Cisco Systems Inc., and the potential for hardware or software problems associated with such equipment; the dependence of our network on the quality and dependability of third-party fiber providers; our ability to retain certain customers that comprise a significant portion of our revenue base; the management of network failures and/or disruptions; and outcomes in litigation as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2021 and our Form 10-Q for the quarter ended March 31, 2022. Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.
SOURCE Cogent Communications Holdings, Inc.
Основные финансовые и деловые моменты
ВАШИНГТОН, 29 апреля 2022 г. /PRNewswire/ -- Cogent Communications Holdings, Inc. (NASDAQ: CCOI) ("Cogent") сегодня объявила о доходах от услуг в размере 149,2 млн долларов США за три месяца, закончившихся 31 марта 2022 года, что на 1,3% больше, чем за три месяца, закончившихся 31 декабря 2021 года, и на 1,6% больше, чем за три месяца, закончившихся 31 марта 2021 года. Курсы иностранных валют негативно повлияли на рост выручки от услуг с трех месяцев, закончившихся 31 декабря 2021 года, по три месяца, закончившихся 31 марта 2022 года, на 0,5 миллиона долларов США и негативно повлияли на рост выручки от услуг с трех месяцев, закончившихся 31 марта 2021 года, по три месяца, закончившихся 31 марта 2022 года, на 1,9 миллиона долларов США. На постоянной валютной основе выручка от услуг увеличилась на 1,7% за три месяца, закончившихся 31 декабря 2021 года, по сравнению с тремя месяцами, закончившимися 31 марта 2022 года, и увеличилась на 2,9% за три месяца, закончившихся 31 марта 2021 года, по сравнению с тремя месяцами, закончившимися 31 марта 2022 года. Влияние акцизных налогов, включая сборы в Фонд универсального обслуживания, учитываемых на валовой основе и включаемых в доходы от услуг и расходы на эксплуатацию сети, негативно сказалось на росте доходов от услуг с трех месяцев, закончившихся 31 декабря 2021 года, по три месяца, закончившихся 31 марта 2022 года, на 0,6 млн. долл. США и негативно сказалось на обслуживании рост выручки за три месяца, закончившихся 31 марта 2021 года, по сравнению с тремя месяцами, закончившимися 31 марта 2022 года, составил 0,8 миллиона долларов. На постоянной валютной основе и с поправкой на влияние изменений в поступлениях от акцизного налога выручка от услуг увеличилась на 2,1% за три месяца, закончившихся 31 декабря 2021 года, по сравнению с тремя месяцами, закончившимися 31 марта 2022 года, и увеличилась на 3,5% за три месяца, закончившихся 31 марта 2021 года, по сравнению с тремя месяцами, закончившимися 31 марта 2021 года закончилась 31 марта 2022 года.
Сетевое обслуживание предоставляется клиентам, расположенным в зданиях, которые физически подключены к сети Cogent средствами Cogent. Чистая выручка за три месяца, закончившихся 31 марта 2022 года, составила 112,6 млн долларов, что на 1,7% больше, чем за три месяца, закончившихся 31 декабря 2021 года, и на 2,4% больше, чем за три месяца, закончившихся 31 марта 2021 года.
Клиенты, находящиеся вне сети, расположены в зданиях, непосредственно подключенных к сети Cogent, используя средства и услуги других операторов для обеспечения последней мили участка связи от помещений клиентов до сети Cogent. Нетто-выручка составила 36,4 млн долларов США за три месяца, закончившихся 31 марта 2022 года; увеличение на 0,2% по сравнению с тремя месяцами, закончившимися 31 декабря 2021 года, и снижение на 0,9% по сравнению с тремя месяцами, закончившимися 31 марта 2021 года.
Непрофильные услуги - это устаревшие услуги, которые Cogent приобрела и продолжает поддерживать, но активно не продает.
Валовая прибыль по ОПБУ определяется как общий доход от услуг за вычетом расходов на эксплуатацию сети, износа и амортизации, а также компенсации на основе собственного капитала, включенной в расходы на эксплуатацию сети. Валовая прибыль по ОПБУ определяется как валовая прибыль по ОПБУ, деленная на общий доход от услуг. Валовая прибыль по GAAP увеличилась на 2,0% по сравнению с тремя месяцами, закончившимися 31 марта 2021 года, до 69,0 млн долларов США за три месяца, закончившихся 31 марта 2022 года, и увеличилась на 1,2% по сравнению с тремя месяцами, закончившимися 31 декабря 2021 года. Валовая прибыль по GAAP составила 46,3% за три месяца, закончившихся 31 марта 2022 года, 46,1% за три месяца, закончившихся 31 марта 2021 года, и 46,3% за три месяца, закончившихся 31 декабря 2021 года.
Валовая прибыль, не относящаяся к ОПБУ, представляет собой выручку от услуг за вычетом расходов на эксплуатацию сети, исключая компенсацию, основанную на долевом участии, и суммы, указанные отдельно (расходы на износ и амортизацию). Валовая прибыль, не относящаяся к GAAP, определяется как валовая прибыль, не относящаяся к GAAP, деленная на общий доход от услуг. Валовая прибыль без учета GAAP увеличилась на 0,1% по сравнению с тремя месяцами, закончившимися 31 марта 2021 года, до 91,9 млн долларов США за три месяца, закончившихся 31 марта 2022 года, и увеличилась на 1,0% по сравнению с тремя месяцами, закончившимися 31 декабря 2021 года. Валовая прибыль без учета GAAP составила 61,6% за три месяца, закончившихся 31 марта 2022 года, 62,5% за три месяца, закончившихся 31 марта 2021 года, и 61,8% за три месяца, закончившихся 31 декабря 2021 года.
Акцизные налоги, включая сборы в Фонд универсального обслуживания, учтенные на валовой основе и включенные в доходы от услуг и расходы на сетевые операции, составили 3,7 млн долларов США за три месяца, закончившихся 31 марта 2022 года, 4,5 млн долларов США за три месяца, закончившихся 31 марта 2021 года, и 4,3 млн долларов США за три месяца, закончившихся 31 декабря 2021 года.
Чистые денежные средства, полученные от операционной деятельности, увеличились на 4,9% по сравнению с тремя месяцами, закончившимися 31 марта 2021 года, до 49,4 млн долларов США за три месяца, закончившихся 31 марта 2022 года, и увеличились на 37,3% по сравнению с тремя месяцами, закончившимися 31 декабря 2021 года.
Прибыль до вычета процентов, налогов, износа и амортизации (EBITDA) увеличилась на 2,9% по сравнению с тремя месяцами, закончившимися 31 марта 2021 года, до 57,2 млн долларов США за три месяца, закончившихся 31 марта 2022 года, и снизилась на 0,4% по сравнению с тремя месяцами, закончившимися 31 декабря 2021 года. Рентабельность по EBITDA составила 38,3% за три месяца, закончившихся 31 марта 2022 года, 37,8% за три месяца, закончившихся 31 марта 2021 года, и 39,0% за три месяца, закончившихся 31 декабря 2021 года.
Базовая чистая прибыль на акцию составила $0,02 за три месяца, закончившихся 31 марта 2022 года, $0,41 за три месяца, закончившихся 31 марта 2021 года, и $0,40 за три месяца, закончившихся 31 декабря 2021 года. Разводненная чистая прибыль на акцию составила 0,02 доллара за три месяца, закончившихся 31 марта 2022 года, 0,41 доллара за три месяца, закончившихся 31 марта 2021 года, и 0,39 доллара за три месяца, закончившихся 31 декабря 2021 года.
Нереализованная курсовая прибыль по Старшим необеспеченным облигациям Cogent в евро на 2024 год составила 8,0 млн долларов США за три месяца, закончившихся 31 марта 2022 года, 18,9 млн долларов США за три месяца, закончившихся 31 марта 2021 года, и 8,8 млн долларов США за три месяца, закончившихся 31 декабря 2021 года.
Общее количество подключений клиентов увеличилось на 4,4% с 31 марта 2021 года до 94 884 по состоянию на 31 марта 2022 года и увеличилось на 1,2% с 31 декабря 2021 года. Количество подключений клиентов внутри сети увеличилось на 4,1% с 31 марта 2021 года до 81 627 по состоянию на 31 марта 2022 года и увеличилось на 1,1% с 31 декабря 2021 года. Количество подключений клиентов вне сети увеличилось на 5,8% с 31 марта 2021 года до 12 922 по состоянию на 31 марта 2022 года и увеличилось на 2,0% с 31 декабря 2021 года.
Количество сетевых зданий увеличилось на 126 с 31 марта 2021 года до 3065 по состоянию на 31 марта 2022 года и увеличилось на 30 с 31 декабря 2021 года.
С 29 апреля 2022 года Шон Уоллес подал в отставку с поста финансового директора Cogent, чтобы занять другую должность финансового директора, а Таддеус "Тэд" Вид, старший вице-президент Cogent по аудиту и операциям, был вновь назначен финансовым директором Cogent. Дейв Шеффер, главный исполнительный директор Cogent, заявил: "Я хочу лично поблагодарить Шона, которого я знаю уже 25 лет, за его отличную работу и готовность занять пост финансового директора Cogent, пока Тэд Вид был в отпуске по болезни. Тад занимал должность нашего старшего вице-президента по аудиту и операциям, и, находясь на этой должности, Тад внедрил многочисленные операционные усовершенствования, которые привели к существенной экономии средств для Cogent. Тэд ранее занимал должность нашего финансового директора с мая 2004 года по март 2020 года, и теперь, когда Тэд восстановился и после короткого переходного периода с Шоном, Тэд возобновит свои обязанности финансового директора. Я рад приветствовать Тэда в качестве нашего финансового директора".
Утверждено Ежеквартальное Увеличение Дивидендов
29 апреля 2022 года Совет директоров Cogent утвердил регулярные ежеквартальные дивиденды в размере 0,880 доллара на акцию, подлежащие выплате 27 мая 2022 года акционерам record 13 мая 2022 года. Этот регулярный дивиденд за второй квартал 2022 года представляет собой увеличение на 0,025 доллара на акцию, или на 2,9%, по сравнению с регулярным дивидендом за первый квартал 2022 года в размере 0,855 доллара на акцию и годовым увеличением на 12,8% по сравнению с дивидендом за второй квартал 2021 года в размере 0,780 доллара на акцию.
Выплата любых будущих дивидендов и любых других доходов от капитала будет осуществляться по усмотрению Правления и может быть уменьшена, исключена или увеличена и будет зависеть от финансового положения Cogent, результатов операций, имеющихся денежных средств, движения денежных средств, требований к капиталу, ограничений по долговым обязательствам Cogent и других факторов сочтено Правлением уместным.
Воздействие COVID-19
На Cogent продолжает оказывать влияние пандемия COVID-19 и сопутствующие ответные меры правительств по всему миру. Недавнее распространение вариантов COVID-19 внесло новую неопределенность.
Продолжающееся воздействие пандемии COVID-19, включая распространение различных штаммов, и связанных с этим правительственных ограничений на бизнес Cogent неизвестно, поскольку сохраняется значительная неопределенность и волатильность. Cogent не знает конечных масштабов и продолжительности пандемии, наличия, эффективности и использования вакцин и терапевтических методов лечения, действий правительства, которые были предприняты или могут быть предприняты в будущем в ответ на пандемию, а также глобальных экономических условий во время и после пандемии. Cogent столкнулась с небольшим замедлением доступности и поставки сетевого оборудования, но Cogent считает, что может адекватно управлять эксплуатацией, обслуживанием, модернизацией и ростом своей сети. Ухудшение или длительное замедление может повлиять на нашу способность расширять и расширять нашу сеть. Большинство сотрудников Cogent по всему миру вернулись в свои офисы на постоянной основе в первом квартале 2022 года. Cogent принимает меры по защите своей рабочей силы, но не может гарантировать, что эти меры будут достаточными. Решения Cogent требовать от своих сотрудников возвращения в свои офисы на постоянной основе и внедрять мандат на вакцинацию от COVID-19, где это разрешено законом, могут помешать ее способности удерживать существующих сотрудников или привлекать новых сотрудников. Более того, результаты деятельности Cogent могут отрицательно сказаться в будущем, поскольку пандемия и связанные с ней правительственные ограничения продолжаются или вводятся вновь. Cogent также может столкнуться с замедлением новых заказов клиентов, испытывать трудности с получением средств от клиентов, испытывающих финансовые трудности, испытывать увеличение оттока клиентов, испытывать трудности с доступом к зданиям и местам, где Cogent устанавливает новые услуги и обслуживает существующих клиентов, или испытывать трудности с закупкой, доставкой или установкой необходимого оборудования в своей сети. Компания Cogent может обнаружить, что воздействие пандемии на ее поставщиков и их соответствующую рабочую силу может замедлить предоставление услуг от этих поставщиков компании Cogent. Cogent также может обнаружить, что на ее крупнейшей клиентской базе, которая обслуживается в основном в офисных зданиях с несколькими арендаторами, может негативно сказаться падение спроса на коммерческие офисные помещения в центральных деловых районах, поскольку компании, расположенные в этих зданиях, предпочитают не возвращаться в свои офисные помещения ни на временной, ни даже на постоянной основе, ни замедлите темпы открытия новых офисов. Кроме того, корпоративная клиентская база Cogent может сократить общее количество филиалов из-за неблагоприятных экономических условий или новых рабочих конфигураций, что может негативно сказаться на количестве корпоративных подключений Cogent и доходах от услуг. В результате глобальные экономические последствия пандемии COVID-19 могут иметь длительные последствия, которые повлияют на бизнес Cogent в будущем. Эти и другие риски более подробно описаны в Годовом отчете Cogent по форме 10-K за год, закончившийся 31 декабря 2021 года, и в Ежеквартальном отчете по форме 10-Q за квартал, закончившийся 31 марта 2022 года.
Конференц-связь и информация на веб-сайте
Cogent проведет телефонную конференцию с финансовыми аналитиками в 8:30 утра (по восточному времени) 5 мая 2022 года, чтобы обсудить операционные результаты Cogent за первый квартал 2022 года и обсудить ожидания Cogent на весь 2022 год. Инвесторы и другие заинтересованные стороны могут получить доступ к прямой аудиотрансляции объявления о доходах в разделе "События" на веб-сайте Cogent по адресу www.cogentco.com/events . Повтор веб-трансляции вместе с пресс-релизом будет доступен на веб-сайте после объявления о доходах. Загружаемый файл "Резюме финансовых и операционных результатов Cogent" и стенограмма его телефонной конференции также будут доступны на веб-сайте Cogent после телефонной конференции.
О убедительных коммуникациях
Cogent Communications (NASDAQ: CCOI) - многонациональный интернет-провайдер уровня 1. Cogent специализируется на предоставлении предприятиям высокоскоростного доступа в Интернет, транспорта Ethernet и услуг коллокации. Полностью оптическая магистральная IP-сеть Cogent, основанная на оборудовании, предоставляет услуги на 216 рынках по всему миру.
Штаб-квартира Cogent Communications находится по адресу: 2450 N Street, NW, Вашингтон, округ Колумбия, 20037. Для получения дополнительной информации посетите www.cogentco.com . С Cogent Communications можно связаться в Соединенных Штатах по телефону (202) 295-4200 или по электронной почте [email protected].
Cogent Communications Holdings, INC., AND SUBSIDIARIES Summary of Financial and Operational Results
|
|||||
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
|
Metric ($ in 000's, except |
|||||
On-Net revenue |
$109,947 |
$111,041 |
$111,099 |
$110,749 |
$112,634 |
% Change from previous Qtr. |
2.6% |
1.0% |
0.1% |
-0.3% |
1.7% |
Off-Net revenue |
$36,723 |
$36,699 |
$36,656 |
$36,304 |
$36,387 |
% Change from previous Qtr. |
0.1% |
-0.1% |
-0.1% |
-1.0% |
0.2% |
Non-Core revenue (1) |
$107 |
$139 |
$172 |
$155 |
$154 |
% Change from previous Qtr. |
-10.8% |
29.9% |
23.7% |
-9.9% |
-0.6% |
Service revenue – total |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
% Change from previous Qtr. |
2.0% |
0.8% |
0.0% |
-0.5% |
1.3% |
Constant currency total |
1.7% |
0.6% |
0.5% |
0.1% |
1.7% |
Constant currency total |
2.3% |
2.8% |
3.6% |
2.9% |
2.9% |
Constant currency and |
1.4% |
0.5% |
0.5% |
0.4% |
2.1% |
Constant currency and |
1.8% |
1.7% |
2.9% |
2.8% |
3.5% |
Excise Taxes included in |
$4,528 |
$4,811 |
$4,813 |
$4,336 |
$3,742 |
% Change from previous Qtr. |
9.3% |
6.3% |
0.0% |
-9.9% |
-13.7% |
Network operations expenses (2) |
$55,016 |
$56,044 |
$56,482 |
$56,272 |
$57,305 |
% Change from previous Qtr. |
0.9% |
1.9% |
0.8% |
-0.4% |
1.8% |
GAAP gross profit (3) |
$67,715 |
$69,603 |
$68,673 |
$68,223 |
$69,038 |
% Change from previous Qtr. |
1.6% |
2.8% |
-1.3% |
-0.7% |
1.2% |
GAAP gross margin (3) |
46.1% |
47.1% |
46.4% |
46.3% |
46.3% |
Non-GAAP gross profit (4) (6) |
$91,761 |
$91,835 |
$91,445 |
$90,936 |
$91,870 |
% Change from previous Qtr. |
2.7% |
0.1% |
-0.4% |
-0.6% |
1.0% |
Non-GAAP gross margin (4) (6) |
62.5% |
62.1% |
61.8% |
61.8% |
61.6% |
Selling, general and |
$36,211 |
$34,654 |
$33,692 |
$33,526 |
$34,715 |
% Change from previous Qtr. |
7.4% |
-4.3% |
-2.8% |
-0.5% |
3.5% |
Depreciation and amortization expense |
$21,970 |
$22,096 |
$22,609 |
$22,567 |
$22,688 |
% Change from previous Qtr. |
-2.2% |
0.6% |
2.3% |
-0.2% |
0.5% |
Equity-based compensation expense |
$7,307 |
$6,874 |
$6,588 |
$6,053 |
$6,056 |
% Change from previous Qtr. |
25.0% |
-5.9% |
-4.2% |
-8.1% |
0.0% |
Operating income |
$26,291 |
$28,211 |
$28,556 |
$36,165 |
$28,784 |
% Change from previous Qtr. |
-4.0% |
7.3% |
1.2% |
26.6% |
-20.4% |
Interest expense |
$15,836 |
$14,236 |
$17,349 |
$19,653 |
$35,439 |
% Change from previous Qtr. |
-1.1% |
-10.1% |
21.9% |
13.3% |
80.3% |
Non-cash interest expense – |
$3,076 |
$5,939 |
$21,271 |
||
% Change from previous Qtr. |
93.1% |
258.2% |
|||
Net income (loss) |
$18,851 |
$(2,493) |
$13,320 |
$18,507 |
$1,137 |
Realized and unrealized |
$18,870 |
$(5,280) |
$10,169 |
$8,763 |
$8,014 |
Basic net income (loss) per |
$0.41 |
$(0.05) |
$0.29 |
$0.40 |
$0.02 |
Diluted net income (loss) |
$0.41 |
$(0.05) |
$0.28 |
$0.39 |
$0.02 |
Weighted average common |
46,067,096 |
46,229,603 |
46,293,524 |
46,420,168 |
46,575,848 |
% Change from previous Qtr. |
0.4% |
0.4% |
0.1% |
0.3% |
0.3% |
Weighted average common |
46,507,258 |
46,229,603 |
46,866,929 |
46,992,639 |
46,929,191 |
% Change from previous Qtr. |
1.3% |
-0.6% |
1.4% |
0.3% |
-0.1% |
EBITDA (6) |
$55,550 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
% Change from previous Qtr. |
-0.2% |
2.9% |
1.0% |
-0.6% |
-0.4% |
EBITDA margin |
37.8% |
38.7% |
39.0% |
39.0% |
38.3% |
Gains on asset related transactions |
$18 |
$- |
$- |
$- |
$- |
EBITDA, as adjusted (6) |
$55,568 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
% Change from previous Qtr. |
-0.2% |
2.9% |
1.0% |
-0.6% |
-0.4% |
EBITDA, as adjusted, margin |
37.9% |
38.7% |
39.0% |
39.0% |
38.3% |
Net cash provided by |
$47,106 |
$39,749 |
$47,418 |
$35,984 |
$49,411 |
% Change from previous Qtr. |
25.4% |
-15.6% |
19.3% |
-24.1% |
37.3% |
Capital expenditures |
$15,444 |
$17,217 |
$21,959 |
$15,296 |
$18,121 |
% Change from previous Qtr. |
-2.6% |
11.5% |
27.5% |
-30.3% |
18.5% |
Principal payments of |
$5,744 |
$6,192 |
$4,890 |
$6,228 |
$5,863 |
% Change from previous Qtr. |
24.9% |
7.8% |
-21.0% |
27.4% |
-5.9% |
Dividends paid |
$36,081 |
$37,001 |
$37,654 |
$39,552 |
$41,298 |
Purchases of common stock |
$- |
$- |
$- |
$- |
$- |
Gross Leverage Ratio |
4.39 |
5.13 |
5.07 |
5.02 |
4.94 |
Net Leverage Ratio |
3.31 |
3.45 |
3.50 |
3.58 |
3.58 |
Customer Connections – |
|||||
On-Net |
78,389 |
79,146 |
80,162 |
80,723 |
81,627 |
% Change from previous Qtr. |
1.4% |
1.0% |
1.3% |
0.7% |
1.1% |
Off-Net |
12,216 |
12,386 |
12,495 |
12,669 |
12,922 |
% Change from previous Qtr. |
2.1% |
1.4% |
0.9% |
1.4% |
2.0% |
Non-Core (1) |
320 |
336 |
334 |
334 |
335 |
% Change from previous Qtr. |
-1.5% |
5.0% |
-0.6% |
-% |
0.3% |
Total customer connections |
90,925 |
91,868 |
92,991 |
93,726 |
94,884 |
% Change from previous Qtr. |
1.5% |
1.0% |
1.2% |
0.8% |
1.2% |
On-Net Buildings – end of period |
|||||
Multi-Tenant office buildings |
1,796 |
1,802 |
1,816 |
1,817 |
1,824 |
Carrier neutral data center buildings |
1,089 |
1,119 |
1,138 |
1,164 |
1,187 |
Cogent data centers |
54 |
54 |
54 |
54 |
54 |
Total on-net buildings |
2,939 |
2,975 |
3,008 |
3,035 |
3,065 |
Total carrier neutral data |
1,274 |
1,309 |
1,332 |
1,359 |
1,383 |
Square feet – multi-tenant |
978,095,164 |
979,876,141 |
984,753,702 |
986,941,224 |
992,336,259 |
Network – end of period |
|||||
Intercity route miles |
58,761 |
59,741 |
59,741 |
60,676 |
60,869 |
Metro fiber miles |
38,058 |
38,351 |
38,825 |
39,559 |
40,113 |
Connected networks – AS's |
7,471 |
7,530 |
7,597 |
7,569 |
7,625 |
Headcount – end of period |
|||||
Sales force – quota bearing |
547 |
565 |
516 |
490 |
479 |
Sales force - total |
693 |
710 |
662 |
633 |
620 |
Total employees |
1,066 |
1,087 |
1,031 |
1,001 |
987 |
Sales rep productivity – |
4.3 |
4.5 |
4.3 |
4.2 |
4.7 |
FTE – sales reps |
522 |
511 |
521 |
467 |
453 |
(1) |
Consists of legacy services of companies whose assets or businesses were acquired by Cogent. |
(2) |
Network operations expense excludes equity-based compensation expense of $2,076, $136, $163, $146 and $144 in the three month periods ended March 31, 2021 through March 31, 2022, respectively. Network operations expense includes excise taxes, including Universal Service Fund fees of $4,528, $4,811, $4,813, $4,336 and $3,742 in the three month periods ended March 31, 2021 through March 31, 2022, respectively. |
(3) |
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. |
(4) |
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue. Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures to provide investors. Management uses them to measure the margin available to the company after network service costs, in essence a measure of the efficiency of the Company's network. |
(5) |
Excludes equity-based compensation expense of $5,231, $6,738, $6,425, $5,907 and $5,912 in the three month periods |
(6) |
See Schedules of Non-GAAP measures below for definitions and reconciliations to GAAP measures. |
Графики показателей, не относящихся к GAAP, EBITDA, скорректированная EBITDA, рентабельность по EBITDA и скорректированная EBITDA, рентабельность
Показатель EBITDA представляет собой чистые денежные потоки, полученные от операционной деятельности, плюс изменения в операционных активах и обязательствах, процентные расходы по денежным средствам и расходы по налогу на прибыль. Руководство считает, что наиболее непосредственно сопоставимым показателем с показателем EBITDA, рассчитанным в соответствии с общепринятыми принципами бухгалтерского учета в Соединенных Штатах, или GAAP, являются чистые денежные средства, полученные от операционной деятельности. Компания также считает, что показатель EBITDA часто используется аналитиками по ценным бумагам, инвесторами и другими заинтересованными сторонами при оценке эмитентов. Скорректированный показатель EBITDA представляет собой показатель EBITDA плюс чистые прибыли (убытки) по операциям, связанным с активами. Рентабельность по EBITDA определяется как показатель EBITDA, деленный на общий доход от услуг. Скорректированный показатель EBITDA Маржа определяется как скорректированный показатель EBITDA, деленный на общий доход от услуг.
Компания считает, что показатель EBITDA, скорректированный показатель EBITDA, рентабельность по EBITDA и скорректированная рентабельность по EBITDA являются полезными показателями ее способности обслуживать долг, финансировать капитальные затраты и расширять свой бизнес. Измерения являются неотъемлемой частью системы внутренней отчетности и планирования, используемой руководством в качестве дополнения к финансовой информации по ОПБУ. EBITDA, скорректированная EBITDA, рентабельность по EBITDA и скорректированная рентабельность по EBITDA не признаются в соответствии с GAAP и, соответственно, не должны рассматриваться изолированно или как замена анализа результатов, представленных в соответствии с GAAP, а скорее как дополнительный показатель к GAAP. Например, эти показатели не предназначены для отражения свободного денежного потока Компании, поскольку они не учитывают определенные текущие или будущие потребности в денежных средствах, такие как капитальные затраты, договорные обязательства и изменения в потребностях в оборотном капитале, процентных расходах и требованиях к обслуживанию долга. Расчеты Компании по этим показателям также могут отличаться от расчетов, выполняемых ее конкурентами и другими компаниями, и поэтому их полезность в качестве сравнительного показателя ограничена.
Показатель EBITDA и скорректированный показатель EBITDA сверены с чистыми денежными средствами, полученными от операционной деятельности, в таблице ниже.
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
|
($ in 000's) – unaudited |
|||||
Net cash provided by operating activities |
$47,106 |
$39,749 |
$47,418 |
$35,984 |
$49,411 |
Changes in operating assets and liabilities |
$(9,060) |
$2,352 |
$(6,267) |
$(7,095) |
$(35,572) |
Cash interest expense and income tax expense |
17,504 |
15,080 |
16,602 |
28,521 |
43,316 |
EBITDA |
$55,550 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
PLUS: Gains on asset related transactions |
18 |
- |
- |
- |
- |
EBITDA, as adjusted |
$55,568 |
$57,181 |
$57,753 |
$57,410 |
$57,155 |
EBITDA margin |
37.8% |
38.7% |
39.0% |
39.0% |
38.3% |
EBITDA, as adjusted, margin |
37.9% |
38.7% |
39.0% |
39.0% |
38.3% |
Постоянный валютный доход сверяется с доходом от услуг, как указано в таблицах ниже.
Постоянное влияние валюты на изменения выручки – последовательные периоды
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(447) |
(150) |
709 |
808 |
516 |
Service revenue - as adjusted for currency impact (1) |
$146,330 |
$147,729 |
$148,636 |
$148,016 |
$149,691 |
Service revenue, as reported – prior sequential period |
$143,901 |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
Constant currency increase |
$2,429 |
$952 |
$757 |
$89 |
$2,483 |
Constant currency percent increase |
1.7% |
0.6% |
0.5% |
0.1% |
1.7% |
(1) |
Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Постоянное влияние валюты на изменения выручки – периоды предыдущего года
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(2,608) |
(2,965) |
(555) |
916 |
1,914 |
Service revenue - as adjusted for currency impact (2) |
$144,169 |
$144,914 |
$147,372 |
$148,124 |
$151,089 |
Service revenue, as reported – prior year period |
$140,915 |
$140,990 |
$142,302 |
$143,901 |
$146,777 |
Constant currency increase |
$3,254 |
$3,924 |
$5,070 |
$4,223 |
$4,312 |
Constant currency percent increase |
2.3% |
2.8% |
3.6% |
2.9% |
2.9% |
(2) |
Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the comparable prior year period. The Company believes that disclosing year over year revenue growth without the impact of foreign currencies on service revenue is a useful measure of revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Выручка, рассчитанная в постоянной валюте и скорректированная с учетом влияния акцизов, сверяется с выручкой от услуг, как указано в таблицах ниже.
Влияние постоянной валюты и акцизного налога на изменения доходов – последовательные периоды
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(447) |
(150) |
709 |
808 |
516 |
Impact of excise taxes on service revenue |
(384) |
(283) |
(2) |
477 |
594 |
Service revenue - as adjusted for currency and excise taxes impact (3) |
$145,946 |
$147,446 |
$148,634 |
$148,493 |
$150,285 |
Service revenue, as reported – prior sequential period |
$143,901 |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
Constant currency and excise taxes increase |
$2,045 |
$669 |
$755 |
$566 |
$3,077 |
Constant currency and excise tax percent increase |
1.4% |
0.5% |
0.5% |
0.4% |
2.1% |
(3) |
Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Влияние постоянной валюты и акцизного налога на изменения доходов – периоды предыдущего года
($ in 000's) – unaudited |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Service revenue, as reported – current period |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Impact of foreign currencies on service revenue |
(2,608) |
(2,965) |
(555) |
916 |
1,914 |
Impact of excise taxes on service revenue |
(785) |
(1,513) |
(911) |
(192) |
786 |
Service revenue - as adjusted for currency and excise taxes impact (4) |
$143,384 |
$143,401 |
$146,461 |
$147,932 |
$151,875 |
Service revenue, as reported – prior year period |
$140,915 |
$140,990 |
$142,302 |
$143,901 |
$146,777 |
Constant currency and excise taxes increase |
$2,469 |
$2,411 |
$4,159 |
$4,031 |
$5,098 |
Constant currency and excise tax percent increase |
1.8% |
1.7% |
2.9% |
2.8% |
3.5% |
(4) |
Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior year period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Валовая прибыль без учета ОПБУ и валовая прибыль без учета ОПБУ
Валовая прибыль без учета GAAP и валовая прибыль без учета GAAP сверяются с валовой прибылью по GAAP и валовой прибылью по GAAP в таблице ниже.
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
|
($ in 000's) – unaudited |
|||||
Service revenue total |
$146,777 |
$147,879 |
$147,927 |
$147,208 |
$149,175 |
Minus - Network operations expense including equity-based compensation |
79,062 |
78,276 |
79,254 |
78,985 |
80,137 |
GAAP Gross Profit (1) |
$67,715 |
$69,603 |
$68,673 |
$68,223 |
$69,038 |
Plus - Equity-based compensation – network operations expense |
2,076 |
136 |
163 |
146 |
144 |
Plus – Depreciation and amortization expense |
21,970 |
22,096 |
22,609 |
22,567 |
22,688 |
Non-GAAP Gross Profit (2) |
$91,761 |
$91,835 |
$91,445 |
$90,936 |
$91,870 |
GAAP Gross Margin (1) |
46.1% |
47.1% |
46.4% |
46.3% |
46.3% |
Non-GAAP Gross Margin (2) |
62.5% |
62.1% |
61.8% |
61.8% |
61.6% |
(1) |
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. |
(2) |
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue. Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures to provide to investors, as they are measures that management uses to measure the margin and amount available to the Company after network service costs, in essence these are measures of the efficiency of the Company's network. |
Коэффициент валового и чистого левереджа Коэффициент валового левереджа определяется как общий долг, деленный на скорректированный показатель EBITDA за последние 12 месяцев. Коэффициент чистого кредитного плеча определяется как общий чистый долг (общий долг минус денежные средства и их эквиваленты), деленный на скорректированный показатель EBITDA за последние 12 месяцев. Коэффициент валового кредитного плеча Cogent и коэффициент чистого кредитного плеча показаны ниже.
($ in 000's) – unaudited |
As of December 31, 2021 |
As of March 31, 2022 |
Cash and cash equivalents & restricted cash |
$328,624 |
$311,771 |
Debt |
||
Capital (finance) leases – current portion |
17,048 |
17,147 |
Capital (finance) leases – long term |
228,822 |
228,102 |
Senior Secured 2022 Notes |
- |
- |
Senior Secured 2026 Notes |
500,000 |
500,000 |
Senior Unsecured Euro 2024 Notes |
397,005 |
389,019 |
Note payable |
791 |
219 |
Total debt |
1,143,666 |
1,134,487 |
Total net debt |
815,042 |
822,716 |
Trailing 12 months EBITDA, as adjusted |
227,902 |
229,499 |
Gross leverage ratio |
5.02 |
4.94 |
Net leverage ratio |
3.58 |
3.58 |
Заявки Cogent в SEC доступны онлайн через раздел по связям с инвесторами www.cogentco.com или на веб-сайте Комиссии по ценным бумагам и биржам по адресу www.sec.gov .
Cogent Communications Holdings, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 (IN THOUSANDS, EXCEPT SHARE DATA)
|
||||||
March 31, |
December 31, |
|||||
(Unaudited) |
||||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
281,485 |
$ |
319,609 |
||
Restricted cash |
30,286 |
9,015 |
||||
Accounts receivable, net of allowance for credit losses of $1,476 and $1,510, respectively |
41,662 |
41,938 |
||||
Prepaid expenses and other current assets |
41,757 |
39,015 |
||||
Total current assets |
395,190 |
409,577 |
||||
Property and equipment, net |
456,419 |
457,880 |
||||
Right-of-use leased assets |
100,909 |
101,687 |
||||
Deposits and other assets |
17,251 |
15,413 |
||||
Total assets |
$ |
969,769 |
$ |
984,557 |
||
Liabilities and stockholders' equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
13,808 |
$ |
11,923 |
||
Accrued and other current liabilities |
48,314 |
39,057 |
||||
Installment payment agreement, current portion |
218 |
785 |
||||
Current maturities, operating lease liabilities |
12,118 |
12,197 |
||||
Current maturities, finance lease obligations |
17,147 |
17,048 |
||||
Total current liabilities |
91,605 |
81,010 |
||||
Senior unsecured 2024 Euro Notes, net of unamortized debt costs of $1,917 and $2,121, respectively, and |
386,418 |
394,112 |
||||
Senior secured 2026 Notes, net of unamortized debt costs of $1,094 and $1,156, respectively, and net of |
497,452 |
497,308 |
||||
Operating lease liabilities, net of current maturities |
111,656 |
111,794 |
||||
Finance lease obligations, net of current maturities |
228,102 |
228,822 |
||||
Other long term liabilities |
63,142 |
44,609 |
||||
Total liabilities |
1,378,375 |
1,357,655 |
||||
Commitments and contingencies: |
||||||
Stockholders' equity: |
||||||
Common stock, $0.001 par value; 75,000,000 shares authorized; 47,926,580 and 47,674,189 shares issued and |
48 |
48 |
||||
Additional paid-in capital |
554,552 |
547,734 |
||||
Accumulated other comprehensive income — foreign currency translation |
(13,168) |
(11,003) |
||||
Accumulated deficit |
(950,038) |
(909,877) |
||||
Total stockholders' deficit |
(408,606) |
(373,098) |
||||
Total liabilities and stockholders' deficit |
$ |
969,769 |
$ |
984,557 |
Cogent Communications Holdings, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
||||||
Three Months |
Three Months |
|||||
(Unaudited) |
(Unaudited) |
|||||
Service revenue |
$ |
149,175 |
$ |
146,777 |
||
Operating expenses: |
||||||
Network operations (including $144 and $2,076 of equity-based compensation expense, respectively, |
57,449 |
57,092 |
||||
Selling, general, and administrative (including $5,912 and $5,231 of equity-based compensation expense, |
40,627 |
41,442 |
||||
Depreciation and amortization |
22,688 |
21,970 |
||||
Total operating expenses |
120,764 |
120,504 |
||||
Gains on equipment transactions |
- |
18 |
||||
Gains on lease terminations |
373 |
|||||
Operating income |
28,784 |
26,291 |
||||
Interest expense |
(35,439) |
(15,836) |
||||
Unrealized foreign exchange gain on 2024 Euro Notes |
8,014 |
18,870 |
||||
Loss on debt extinguishment and repurchase - 2022 Notes |
- |
(3,868) |
||||
Interest income and other, net |
319 |
744 |
||||
Income before income taxes |
1,678 |
26,201 |
||||
Income tax expense |
(541) |
(7,350) |
||||
Net income |
$ |
1,137 |
$ |
18,851 |
||
Comprehensive (loss) income: |
||||||
Net income |
$ |
1,137 |
$ |
18,851 |
||
Foreign currency translation adjustment |
(2,165) |
(5,210) |
||||
Comprehensive (loss) income |
$ |
(1,028) |
$ |
13,641 |
||
Net income per common share: |
||||||
Basic and diluted net income per common share |
$ |
0.02 |
$ |
0.41 |
||
Dividends declared per common share |
$ |
0.855 |
$ |
0.755 |
||
Weighted-average common shares - basic |
46,575,848 |
46,067,096 |
||||
Weighted-average common shares - diluted |
46,929,191 |
46,507,258 |
Cogent Communications Holdings, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (IN THOUSANDS)
|
||||||
Three months |
Three months |
|||||
(Unaudited) |
(Unaudited) |
|||||
Cash flows from operating activities: |
||||||
Net income |
$ |
1,137 |
$ |
18,851 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation and amortization |
22,688 |
21,970 |
||||
Amortization of debt discount and premium |
417 |
441 |
||||
Equity-based compensation expense (net of amounts capitalized) |
6,056 |
7,307 |
||||
Gains – lease transactions |
(373) |
- |
||||
Gains - equipment transactions and other, net |
525 |
371 |
||||
Unrealized foreign currency exchange gain on 2024 Euro Notes |
(8,014) |
(18,870) |
||||
Loss on debt extinguishment and repurchase of 2022 Notes |
- |
3,868 |
||||
Deferred income taxes |
(58) |
4,497 |
||||
Changes in operating assets and liabilities: |
||||||
Accounts receivable |
76 |
2,420 |
||||
Prepaid expenses and other current assets |
(2,953) |
2,826 |
||||
Accounts payable, accrued liabilities and other long-term liabilities |
31,317 |
2,951 |
||||
Deposits and other assets |
(1,407) |
474 |
||||
Net cash provided by operating activities |
49,411 |
47,106 |
||||
Cash flows from investing activities: |
||||||
Purchases of property and equipment |
(18,121) |
(15,444) |
||||
Net cash used in investing activities |
(18,121) |
(15,444) |
||||
Cash flows from financing activities: |
||||||
Dividends paid |
(41,298) |
(36,081) |
||||
Repurchase and extinguishment of 2022 Notes |
- |
(119,679) |
||||
Proceeds from exercises of stock options |
204 |
215 |
||||
Principal payments on installment payment agreement |
(571) |
(2,378) |
||||
Principal payments of finance lease obligations |
(5,863) |
(5,744) |
||||
Net cash used in financing activities |
(47,528) |
(163,667) |
||||
Effect of exchange rates changes on cash |
(615) |
(1,316) |
||||
Net decrease in cash and cash equivalents |
(16,853) |
(133,321) |
||||
Cash, cash equivalents and restricted cash, beginning of period |
328,624 |
371,301 |
||||
Cash, cash equivalents and restricted cash, end of period |
$ |
311,771 |
$ |
237,980 |
За исключением исторической информации и обсуждений, содержащихся в настоящем документе, заявления, содержащиеся в этом релизе, представляют собой прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Такие заявления включают, но не ограничиваются ими, заявления, обозначаемые такими словами, как "полагает", "ожидает", "ожидает", "оценивает", "намеревается", "планирует", "цели", "проекты" и аналогичные выражения. Заявления, содержащиеся в настоящем пресс-релизе, основаны на текущих убеждениях и ожиданиях руководства Cogent и подвержены значительным рискам и неопределенностям. Фактические результаты могут отличаться от результатов, изложенных в прогнозных заявлениях. Многочисленные факторы могут вызывать или способствовать появлению таких различий, в том числе о влиянии COVID-19 пандемией и связанными с государством политики; в будущем экономической нестабильности в глобальной экономике или сокращение рынков капитала, которые могут повлиять на расходы на интернет и наша способность участвовать в финансировании деятельности; влияние изменения курсов иностранных валют (в частности, курс евро к доллару США и канадского доллара к доллару США курсу) на перевод наши номера-номинированные в долларах США, доходы, расходы, активы и обязательства; правовые и операционные сложности в выходе на новые рынки; введение требования о том, что мы вносим вклад в нас универсального обслуживания фонда на основании нашего интернет доход; изменения в политике правительства и/или правилам, в том числе правила сетевого нейтралитета в США Федеральная комиссия по коммуникациям и в области защиты персональных данных; кибератаки или нарушения системы безопасности нашей сети; усиление конкуренции привело к снижению цен на наши услуги; наши возможности для того чтобы привлечь новых клиентов и увеличить объем трафика в нашей сети; способность поддерживать наш интернет пиринговых договоренностей на выгодных условиях; мы полагаемся на поставщиков оборудования, "Сиско Системз Инкорпорейтед", и потенциал для аппаратных или программных проблем, связанных с такими оборудования; зависимость нашей сети на качество и надежность сторонних поставщиков волокно; нам возможность удерживать определенную клиентов, которые составляют значительную часть доходной базы; управление сетевыми сбоями и/или сбои; и решений в судебных тяжбах, а также другие риски, время от времени обсуждаются в нашем заявок по ценным бумагам и биржам, включая, без ограничений, наш годовой отчет по форме 10-K за год, закончившийся 31 декабря 2021 и форму 10-Q за квартал, закончившийся 31 марта 2022 года,. Cogent не берет на себя никаких обязательств по обновлению каких-либо прогнозных заявлений или любой информации, содержащейся в этом пресс-релизе или в других публичных сообщениях в любое время.
ИСТОЧНИК Cogent Communications Holdings, Inc.
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