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08/02/17
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NOT FOR DISTRIBUTION TO ANY PERSON LOCATED OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

Interxion Reports Second Quarter 2017 Results

Connectivity, Content and Cloud Communities Drive Strong Growth Revenue Increased by 16% Year Over Year

AMSTERDAM--(BUSINESS WIRE)--Aug. 2, 2017-- Interxion Holding NV (NYSE:INXN), a leading European provider of carrier and cloud-neutral colocation data centre services, announced its results today for the three months ended 30 June 2017.

Financial Highlights

  • Revenue increased by 16% to €120.8 million (2Q 2016: €104.0 million).
  • Recurring revenue1 increased by 14% to €113.4 million (2Q 2016: €99.3 million).
  • Net income increased by 13% to €10.3 million (2Q 2016: €9.2 million).
  • Adjusted net income2 increased by 12% to €10.1 million (2Q 2016: €9.0 million).
  • Earnings per diluted share increased by 11% to €0.14 (2Q 2016: €0.13).
  • Adjusted earnings2 per diluted share increased by 12% to €0.14 (2Q 2016: €0.13).
  • Adjusted EBITDA2 increased by 15% to €54.3 million (2Q 2016: €47.3 million).
  • Adjusted EBITDA margin decreased to 45.0% (2Q 2016: 45.5%).
  • Capital expenditures, including intangible assets3, were €56.4 million (2Q 2016: €62.6 million).

Operating Highlights

  • Equipped space4 increased by 2,900 square metres in the quarter to 117,000 square metres.
  • Revenue generating space4 increased by 5,200 square metres in the quarter to 95,000 square metres.
  • Utilisation rate at the end of the quarter was 81%.
  • During the second quarter, Interxion completed the following expansions:
    • 300 sqm expansion in Copenhagen,
    • 900 sqm expansion in Marseille,
    • 600 sqm expansion in Paris, and
    • 1,100 sqm expansion in Vienna.

“Interxion delivered a strong second quarter as communities of interest within Interxion facilities continued to grow. Second quarter revenue growth was 16% year over year and we installed 5,200 square metres of new revenue generating space,” said David Ruberg, Interxion’s Chief Executive Officer. “Demand continues to be strong and we are adding further capacity to meet that demand. Our strategic focus of developing robust connectivity and global cloud communities to create value for our customers has positioned us to grow at the heart of the digital economy.”

Quarterly Review

Revenue in the second quarter of 2017 was €120.8 million, a 16% increase over the second quarter of 2016 and a 6% increase over the first quarter of 2017. Recurring revenue was €113.4 million, a 14% increase over the second quarter of 2016 and a 5% increase over the first quarter of 2017. Recurring revenue in the second quarter represented 94% of total revenue. On an organic constant currency5 basis, revenue in the second quarter of 2017 was 16% higher than in the second quarter of 2016 and 5% higher than in the first quarter of 2017.

Cost of sales in the second quarter of 2017 was €47.9 million, a 21% increase over the second quarter of 2016 and a 9% increase over the first quarter of 2017.

Gross profit was €72.9 million in the second quarter of 2017, a 13% increase over the second quarter of 2016 and a 4% increase over the first quarter of 2017. Gross profit margin was 60.3% in the second quarter of 2017, compared with 61.9% in the second quarter of 2016 and 61.3% in the first quarter of 2017.

Sales and marketing costs in the second quarter of 2017 were €8.3 million, a 14% increase over the second quarter of 2016 and a 5% increase from the first quarter of 2017.

Other general and administrative costs, which exclude depreciation, amortisation, impairments, share-based payments, and M&A transaction costs, were €10.3 million in the second quarter of 2017, a 6% increase over the second quarter of 2016 and a 3% decrease from the first quarter of 2017.

Depreciation, amortisation, and impairments in the second quarter of 2017 was €27.2 million, an increase of 24% from the second quarter of 2016 and a 13% increase from the first quarter of 2017.

Operating income in the second quarter of 2017 was €25.0 million, an increase of 6% from the second quarter of 2016 and a 2% increase from the first quarter of 2017.

Net finance expense for the second quarter of 2017 was €10.9 million, a 7% increase over the second quarter of 2016 and an 6% increase over the first quarter of 2017. Comparisons to prior periods are impacted by the issuance of €150.0 million of additional 6.00% senior secured notes due 2020 in April 2016 and drawings under our €75.0 million senior secured revolving facility that we entered into in March 2017.

Income tax expense for the second quarter of 2017 was €3.7 million, an 11% decrease compared with the second quarter of 2016 and a 13% increase from the first quarter of 2017.

Net income was €10.3 million in the second quarter of 2017, a 13% increase over the second quarter of 2016 and a 4% decrease from the first quarter of 2017.

Adjusted net income was €10.1 million in the second quarter of 2017, a 12% increase over the second quarter of 2016 and a 6% decrease from the first quarter of 2017.

Adjusted EBITDA for the second quarter of 2017 was €54.3 million, a 15% increase over the second quarter of 2016 and a 6% increase over the first quarter of 2017. Adjusted EBITDA margin was 45.0% in the second quarter of 2017, compared with 45.5% in the second quarter of 2016 and 45.1% in the first quarter of 2017.

Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €40.6 million in the second quarter of 2017, compared with €39.3 million in the second quarter of 2016 and €63.0 million in the first quarter of 2017.

Capital expenditures, including intangible assets, were €56.4 million in the second quarter of 2017, compared with €62.6 million in the second quarter of 2016 and €54.8 million in the first quarter of 2017.

Cash and cash equivalents were €49.2 million at 30 June 2017, compared with €115.9 million at year end 2016. Total borrowings, net of deferred revolving facility financing fees, were €777.7 million at 30 June 2017, compared with €735.0 million at year end 2016. On 9 March 2017, we entered into a €75.0 million senior secured revolving facility. As of 30 June 2017, €45.0 million was drawn. On 28 July 2017, we increased the aggregate capacity of this facility to €100.0 million.

The following capacity metrics do not include Science Park. Equipped space at the end of the second quarter of 2017 was 117,000 square metres, compared with 104,200 square metres at the end of the second quarter of 2016 and 114,100 square metres at the end of the first quarter of 2017. Revenue generating space at the end of the second quarter of 2017 was 95,000 square metres, compared with 81,600 square metres at the end of the second quarter of 2016 and 89,800 square metres at the end of the first quarter of 2017. Utilisation rate, the ratio of revenue-generating space to equipped space, was 81% at the end of the second quarter of 2017, compared with 78% at the end of the second quarter of 2016 and 79% at the end of the first quarter of 2017.

Business Outlook

Interxion today reaffirms guidance for its revenue, Adjusted EBITDA and capital expenditures (including intangibles) for full year 2017:

Revenue   €468 million – €483 million
Adjusted EBITDA €212 million – €222 million
Capital expenditures (including intangibles) €250 million – €270 million
 

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

Conference Call to Discuss Results

Interxion will host a conference call today at 8:30 a.m. EDT (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 1-866-966-9439; callers outside the U.S. may dial direct +44 (0) 1452 555 566. The conference ID for this call is INXN. This event also will be webcast live over the Internet in listen-only mode at investors.interxion.com.

A replay of this call will be available shortly after the call concludes and will be available until 15 August 2017. To access the replay, U.S. callers may dial toll free 1-866-247-4222; callers outside the U.S. may dial direct +44 (0) 1452 550 000. The replay access number is 48725099.

Forward-looking Statements

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

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

Non-IFRS Financial Measures

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

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

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

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

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

  • Share-based payments – primarily the fair value at the date of grant to employees of equity awards, are recognised as an employee expense over the vesting period. We believe that this expense does not represent our operating performance.
  • Income or expense related to the evaluation and execution of potential mergers or acquisitions (“M&A”) – under IFRS, gains and losses associated with M&A activity are recognised in the period in which such gains or losses are incurred. We exclude these effects because we believe they are not reflective of our ongoing operating performance.
  • Adjustments related to terminated and unused data centre sites – these gains and losses relate to historical leases entered into for certain brownfield sites, with the intention of developing data centres, which were never developed and for which management has no intention of developing into data centres. We believe the impact of gains and losses related to unused data centres are not reflective of our business activities and our on-going operating performance.

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

We define Recurring revenue as revenue incurred monthly from colocation, connectivity and associated power charges, office space, amortised set-up fees and certain recurring managed services (but excluding any ad hoc managed services) provided by us directly or through third parties, excluding rents received for the sublease of unused sites.

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

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

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

Adjusted net income, Adjusted basic earnings per share and Adjusted diluted earnings per share

We define Adjusted net income as net income adjusted for the following items and the related income tax effect, which may occur in any period, and which management believes are not reflective of our operating performance:

  • Income or expense related to the evaluation and execution of potential mergers or acquisitions (“M&A”) – under IFRS, gains and losses associated with M&A activity are recognised in the period in which such gains or losses are incurred. We exclude these effects because we believe they are not reflective of our on-going operating performance.
  • Adjustments related to provisions – these adjustments are made for adjustments in provisions that are not reflective of the on-going operating performance of Interxion. These adjustments may include changes in provisions for onerous lease contracts.
  • Adjustments related to capitalised interest – Under IFRS we are required to calculate and capitalise interest allocated to the investment in data centres and exclude it from net income. We believe that reversing the impact of capitalised interest provides information about the impact of the total interest costs and facilitates comparisons with other data centre operators.

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

Management believe that the exclusion of certain items listed above, provides useful supplemental information to net income to aid investors in evaluating the operating performance of our business and comparing our operating performance with other data centre operators and infrastructure companies. We believe the presentation of Adjusted net income, when combined with net income (loss) prepared in accordance with IFRS is beneficial to a complete understanding of our performance. A reconciliation from reported net income to Adjusted net income is provided in the tables attached to this press release.

Adjusted basic earnings per share and Adjusted diluted earnings per share amounts are determined on Adjusted net income.

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

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 45 data centres in 11 European countries. Interxion’s uniformly designed, energy efficient data centres offer customers extensive security and uptime for their mission-critical applications.

With over 600 connectivity providers, 21 European Internet exchanges, and most leading cloud and digital media platforms across its footprint, Interxion has created connectivity, cloud, content and finance hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.

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

1 Recurring revenue is revenue incurred from colocation and associated power charges, office space, amortised set-up fees, cross-connects and certain recurring managed services (but excluding any ad hoc managed services) provided by us directly or through third parties, excluding rents received for the sublease of unused sites.

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

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

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

5 We present organic constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of acquisitions and foreign currency rate fluctuations. For purposes of calculating Revenue on an organic constant currency basis, results from entities acquired during the current and comparison period are excluded. Also, current and comparative prior period results for entities reporting in currencies other than Euro are converted into Euro using the average exchange rates from the prior period rather than the actual exchange rates in effect during the current period. The reconciliation of total revenue growth to total revenue growth on an organic constant currency basis, is as follows:

Three Months Ended 30 June 2017   Year-on-year   Sequential
 
Reported total revenue growth 16 % 6 %
Add back: impact of foreign currency translation 1 % 0 %
Reverse: impact of acquired ISP business

(2

%)

(1

%)

Total revenue growth on an organic constant currency basis

16

% 5 %
 
Percentages may not add due to rounding
 
       
INTERXION HOLDING NV
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in €'000 ― except per share data and where stated otherwise)
(unaudited)
 
Three Months Ended Six Months Ended
Jun-30 Jun-30 Jun-30 Jun-30
2017 2016 2017 2016
 
Revenue 120,823 104,026 234,773 206,026
Cost of sales (47,926 ) (39,663 ) (92,021 ) (78,782 )
Gross Profit 72,897 64,363 142,752 127,244
Other income - 33 27 130
Sales and marketing costs (8,285 ) (7,284 ) (16,210 ) (15,008 )
General and administrative costs (39,623 ) (33,568 ) (77,181 ) (65,953 )
               
Operating income 24,989 23,544 49,388 46,413
Net finance expense (10,920 ) (10,170 ) (21,207 ) (18,128 )
               
Profit or loss before income taxes 14,069 13,374 28,181 28,285
Income tax expense (3,727 ) (4,209 ) (7,027 ) (8,901 )
Net income 10,342   9,165   21,154   19,384  
 
Basic earnings per share(a): (€) 0.15 0.13 0.30 0.28
Diluted earnings per share(b): (€) 0.14 0.13 0.30 0.27
 
 
Number of shares outstanding at the end of the period (shares in thousands) 71,060 70,479 71,060 70,479
Weighted average number of shares for Basic EPS (shares in thousands) 71,035 70,316 70,907 70,163
Weighted average number of shares for Diluted EPS (shares in thousands) 71,739 71,198 71,599 71,018
 
 

 

As at

 

 

Jun-30 Jun-30
Capacity metrics

 

 

2017 2016
Equipped space (in square meters) (c)

 

 

117,000 104,200

Revenue generating space (in square meters) (c)

 

 

95,000 81,600
Utilization rate

 

 

81 % 78 %
 
(a) Basic earnings per share are calculated as net income divided by the weighted average number of shares for Basic EPS.
(b) Diluted earnings per share are calculated as net income divided by the weighted average number of shares for Diluted EPS.
(c) Equipped space and Revenue generating space (and other metrics derived from these measures) exclude Interxion Science Park, which was acquired on February 24, 2017.
 
       
INTERXION HOLDING NV
NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: SEGMENT INFORMATION
(in €'000 ― except where stated otherwise)
(unaudited)
 
Three Months Ended Six Months Ended
Jun-30 Jun-30 Jun-30 Jun-30
2017 2016 2017 2016
Consolidated
 
Recurring revenue 113,427 99,331 221,702 196,542
Non-recurring revenue 7,396   4,695   13,071   9,484  
Revenue 120,823   104,026   234,773   206,026  
Net income 10,342 9,165 21,154 19,384
Net income margin 8.6 % 8.8 % 9.0 % 9.4 %
Operating income 24,989 23,544 49,388 46,413
Operating income margin 20.7 % 22.6 % 21.0 % 22.5 %
Adjusted EBITDA 54,313   47,346   105,650   93,265  
Gross profit margin 60.3 % 61.9 % 60.8 % 61.8 %
Adjusted EBITDA margin 45.0 % 45.5 % 45.0 % 45.3 %
 
Total assets 1,589,211 1,473,099 1,589,211 1,473,099
Total liabilities 1,015,136 946,348 1,015,136 946,348
Capital expenditure, including intangible assets(a) (56,441 ) (62,592 ) (111,198 ) (112,594 )
 
France, Germany, the Netherlands, and the UK
 
Recurring revenue 74,183 63,773 144,181 126,039
Non-recurring revenue 4,688   2,608   8,070   5,884  
Revenue 78,871 66,381 152,251 131,923
Operating income 24,784 22,374 48,770 44,056
Operating income margin 31.4 % 33.7 % 32.0 % 33.4 %
Adjusted EBITDA 43,115   37,012   83,284   73,193  
Gross profit margin 62.0 % 63.4 % 61.9 % 62.9 %
Adjusted EBITDA margin 54.7 % 55.8 % 54.7 % 55.5 %
 
Total assets 1,130,979 954,598 1,130,979 954,598
Total liabilities 231,445 205,333 231,445 205,333
Capital expenditure, including intangible assets(a) (40,753 ) (43,627 ) (75,819 ) (80,383 )
 
Rest of Europe
 
Recurring revenue 39,244 35,558 77,521 70,503
Non-recurring revenue 2,708   2,087   5,001   3,600  
Revenue 41,952   37,645   82,522   74,103  
Operating income 16,445 15,083 33,155 30,352
Operating income margin 39.2 % 40.1 % 40.2 % 41.0 %
Adjusted EBITDA 24,041   21,574   47,695   43,089  
Gross profit margin 65.2 % 65.8 % 66.0 % 66.3 %
Adjusted EBITDA margin 57.3 % 57.3 % 57.8 % 58.1 %
 
Total assets 379,372 340,529 379,372 340,529
Total liabilities 82,176 81,711 82,176 81,711
Capital expenditure, including intangible assets(a) (13,635 ) (16,389 ) (29,852 ) (26,671 )
 
Corporate and other
 
Operating income (16,240 ) (13,913 ) (32,537 ) (27,995 )
Adjusted EBITDA (12,843 ) (11,240 ) (25,329 ) (23,017 )
 
Total assets 78,860 177,972 78,860 177,972
Total liabilities 701,515 659,304 701,515 659,304
Capital expenditure, including intangible assets(a) (2,053 ) (2,576 ) (5,527 ) (5,540 )
 

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

 
       
INTERXION HOLDING NV
NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION
(in €'000 ― except where stated otherwise)
(unaudited)
 
Three Months Ended Six Months Ended
Jun-30 Jun-30 Jun-30 Jun-30
2017 2016 2017 2016
 
Reconciliation to Adjusted EBITDA
 
Consolidated
 
Net income 10,342 9,165 21,154 19,384
Income tax expense 3,727   4,209   7,027   8,901  
Profit before taxation 14,069 13,374 28,181 28,285
Net finance expense 10,920   10,170   21,207   18,128  
Operating income 24,989 23,544 49,388 46,413
Depreciation, amortisation and impairments 27,209   22,021   51,392   43,498  
EBITDA(1) 52,198 45,565 100,780 89,911
Share-based payments 1,559 1,322 3,568 2,763
Income or expense related to the evaluation and execution of potential mergers or acquisitions
M&A transaction costs(2) 556 492 1,329 721
Items related to terminated or unused data centre sites:
Items related to sub-leases on unused data centre sites(3) - (33 ) (27 ) (130 )
        -   -  
Adjusted EBITDA(1) 54,313   47,346   105,650   93,265  
 
France, Germany, the Netherlands, and the UK  
 
Operating income 24,784 22,374 48,770 44,056
Depreciation, amortisation and impairments 18,097   14,543   33,996   28,835  
EBITDA(1) 42,881 36,917 82,766 72,891
Share-based payments 234 128 545 432
Items related to terminated or unused data centre sites:
Items related to sub-leases on unused data centre sites(3) -   (33 ) (27 ) (130 )
Adjusted EBITDA(1) 43,115   37,012   83,284   73,193  
 
Rest of Europe
 
Operating income 16,445 15,083 33,155 30,352
Depreciation, amortisation and impairments 7,382   6,387   14,340   12,529  
EBITDA(1) 23,827 21,470 47,495 42,881
Share-based payments 214   104   200   208  
Adjusted EBITDA(1) 24,041   21,574   47,695   43,089  
 
Corporate and Other
 
Operating income (16,240 ) (13,913 ) (32,537 ) (27,995 )
Depreciation, amortisation and impairments 1,730   1,091   3,056   2,134  
EBITDA(1) (14,510 ) (12,822 ) (29,481 ) (25,861 )
Share-based payments 1,111 1,090 2,823 2,123
Income or expense related to the evaluation and execution of potential mergers or acquisitions
M&A transaction costs(2) 556   492   1,329   721  
Adjusted EBITDA(1) (12,843 ) (11,240 ) (25,329 ) (23,017 )
 
(1) “EBITDA” and “Adjusted EBITDA” are non-IFRS financial measures. See “Non-IFRS Financial Measures” for more information on these measures, including why we believe

that these supplemental measures are useful, and the limitations on the use of these supplemental measures.

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

“General and administrative costs”. In the quarter ended 30 June 2017, M&A transaction costs included €0.6 million related to other activity including the evaluation of

potential asset acquisitions.

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

‘Other income.’

 
   
INTERXION HOLDING NV
CONDENSED CONSOLIDATED BALANCE SHEET
(in €'000 ― except where stated otherwise)
(unaudited)
 
As at
Jun-30 Dec-31
2017 2016
Non-current assets
Property, plant and equipment 1,235,319 1,156,031
Intangible assets 59,650 28,694
Goodwill 39,364 -
Deferred tax assets 24,713 20,370
Other investments 3,281 1,942
Other non-current assets 14,442   11,914  
1,376,769 1,218,951
Current assets
Trade receivables and other current assets 163,199 147,821
Cash and cash equivalents 49,243   115,893  
212,442   263,714  
Total assets 1,589,211   1,482,665  
 
Shareholders’ equity
Share capital 7,106 7,060
Share premium 526,176 519,604
Foreign currency translation reserve 7,473 9,988
Hedging reserve, net of tax (194 ) (243 )
Accumulated profit 33,514   12,360  
574,075 548,769
Non-current liabilities
Other non-current liabilities 13,505 11,718
Deferred tax liabilities 20,888 9,628
Borrowings 717,732   723,975  
752,125 745,321
Current liabilities
Trade payables and other current liabilities 196,336 171,399
Income tax liabilities 6,406 5,694
Borrowings 60,269   11,482  
263,011   188,575  
Total liabilities 1,015,136   933,896  
Total liabilities and shareholders’ equity 1,589,211   1,482,665  
 
   
INTERXION HOLDING NV
NOTES TO THE CONDENSED CONSOLIDATED BALANCE SHEET: BORROWINGS
(in €'000 ― except where stated otherwise)
(unaudited)
 
As at
Jun-30 Dec-31
2017 2016
 
Borrowings net of cash and cash equivalents
 
Cash and cash equivalents 49,243   115,893  
 
6.00% Senior Secured Notes due 2020(a) 628,734 629,327
Mortgages 53,057 54,412
Financial leases 51,435 51,718
Other borrowings(b) 44,775   -  
Borrowings excluding Revolving Facility deferred financing costs 778,001   735,457  
Revolving Facility deferred financing costs(c) (285 ) (426 )
Total borrowings 777,716   735,031  
       
Borrowings net of cash and cash equivalents 728,473   619,138  
 

(a) €625 million 6.00% Senior Secured Notes due 2020 include a premium on the additional issuance and are shown after deducting underwriting discounts and commissions, offering fees and expenses.

(b) On 28 July 2017, we amended the terms of our €75.0 million senior secured revolving facility agreement dated 9 March 2017 to increase the amount available under the facility to €100.0 million and to add a second extension option enabling us to extend the maturity of this credit facility to 31 December 2018. Also, on 31 July 2017, we extended the maturity of our €100.0 million senior multicurrency revolving facility agreement dated 17 June 2013 from 3 July 2018 to 31 December 2018.
(c) Deferred financing costs of €0.3 million as of 30 June 2017 were incurred in connection with the €100 million revolving facility.
 
       
INTERXION HOLDING NV
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in €'000 ― except where stated otherwise)
(unaudited)
 
Three Months Ended Six Months Ended
Jun-30 Jun-30 Jun-30 Jun-30
2017 2016((b)) 2017 2016((b))
 
Net income 10,342 9,165 21,154 19,384
Depreciation, amortisation and impairments 27,209 22,021 51,392 43,498
Provision for onerous lease contracts - (392 ) - (1,271 )
Share-based payments 1,528 1,158 2,569 2,558
Net finance expense 10,920 10,170 21,207 18,128
Income tax expense 3,727   4,209   7,027   8,901  
53,726 46,331 103,349 91,198
Movements in trade receivables and other assets (16,191 ) (3,732 ) (13,388 ) 1,310
Movements in trade payables and other liabilities 3,051   (3,264 ) 13,581   (2,758 )
Cash generated from / (used in) operations 40,586 39,335 103,542 89,750
Interest and fees paid(a) (2,462 ) (1,060 ) (20,912 ) (15,422 )
Interest received 8 18 (53 ) 25
Income tax paid (2,474 ) (2,484 ) (5,305 ) (3,538 )
Net cash flows from / (used in) operating activities 35,658 35,809 77,272 70,815
Cash flows from / (used in) investing activities
Purchase of property plant and equipment (53,399 ) (60,729 ) (106,322 ) (108,176 )
Financial investments - deposits (148 ) - (366 ) 748
Acquisition Interxion Science Park B.V. - - (77,517 ) -
Purchase of intangible assets (3,042 ) (1,863 ) (4,876 ) (4,419 )
Loans provided (1,341 ) -   (1,341 ) -  
Net cash flows from / (used in) investing activities (57,930 ) (62,592 ) (190,422 ) (111,847 )
Cash flows from / (used in) financing activities
Proceeds from exercised options 541 4,250 4,088 6,176
Proceeds from mortgages - 14,625 - 14,625
Repayment of mortgages (872 ) (948 ) (1,420 ) (1,268 )
Proceeds from revolving credit facilities - - 74,775 -
Repayment Revolving facilities - - (30,000 ) -
Proceeds Senior secured notes at 6% - 155,346 - 155,346
Interest received at issue of additional notes -   2,225   -   2,225  
Net cash flows from / (used in) financing activities (331 ) 175,498 47,443 177,104
Effect of exchange rate changes on cash (695 ) 147   (943 ) (404 )
Net increase / (decrease) in cash and cash equivalents (23,298 ) 148,862 (66,650 ) 135,668
Cash and cash equivalents, beginning of period 72,541   40,492   115,893   53,686  
Cash and cash equivalents, end of period 49,243   189,354   49,243   189,354  
 

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

(b) The collaterized cash has been reclassified from ”Cash and cash equivalents” to ”Other current assets” and ”Other non-current assets.” The impact on the consolidated statement of cash flows has been presented in investing cash flows. Comparative figures have been adjusted accordingly.

 
       
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 Six Months Ended
Jun-30 Jun-30 Jun-30 Jun-30
2017 2016 2017 2016
 
Net income - as reported 10,342 9,165 21,154 19,384
 
Add back
+ M&A transaction costs 556   492   1,329   721  
556 492 1,329 721
Reverse
- Interest capitalised (853 ) (701 ) (1,765 ) (1,166 )
(853 ) (701 ) (1,765 ) (1,166 )
 
Tax effect of above add backs & reversals 74 52 109 111
               
Adjusted net income 10,119   9,008   20,827   19,050  
 
Reported basic EPS: (€) 0.15 0.13 0.30 0.28
Reported diluted EPS: (€) 0.14 0.13 0.30 0.27
 
Adjusted basic EPS: (€) 0.14 0.13 0.29 0.27
Adjusted diluted EPS: (€) 0.14 0.13 0.29 0.27
 
       
INTERXION HOLDING NV
Status of Announced Expansion Projects as at 2 August 2017
with Target Open Dates after 1 January 2017
 

CAPEX(a)(b)

Equipped
Space(a)

Market   Project   (€ million)   (sqm)   Target Opening Dates
 
Amsterdam AMS8: Phases 1 - 2 New Build 50 2,800 4Q 2016 -1Q 2017(c)
Copenhagen CPH2: Phase 2 15 600 1Q 2017 - 2Q 2017(d)
Frankfurt FRA11: Phases 1 - 4 New Build 95 4,800 4Q 2017 - 2Q 2018 (e)
Frankfurt FRA12: New Build 19 1,100 4Q 2017
Frankfurt FRA13: Phases 1 - 2 New Build 90 4,800 4Q 2018 - 1Q 2019 (f)
London LON3: New Build 35 1,800 3Q 2018
Marseille MRS 1: Phase 3 20 1,400 1Q 2017 - 2Q 2017 (g)
Marseille MRS2: Phases 1 - 2 New Build 76 4,300 1Q 2018 - 3Q 2018(h)
Paris PAR7: Phase 2 37 2,100 4Q 2016 - 2Q 2017 (i)
Stockholm STO5: Phase 1 New Build 11 500 3Q 2017
Vienna VIE2: Phase 6 - 8 68 3,000 3Q 2016 - 3Q 2018 (j)
Zurich ZUR1: Phase 3 (cont.) 1 400 3Q17
Total € 517 27,600
 
(a) CAPEX and Equipped space are approximate and may change. Figures are rounded to nearest 100 sqm unless otherwise noted. Totals may not add due to rounding.
(b) CAPEX reflects the total spend for the projects listed at full power and capacity and the amounts shown in the table above may be invested over the duration of more than one fiscal year.
(c) AMS8: Phase 1 (1,500 square metres) became operational in 4Q 2016. Phase 2 (1,300 square metres) became operational in 1Q 2017.
(d) CPH2: 300 square metres became operational in 1Q 2017; another 300 square metres became operational in 2Q 2017.
(e) FRA11: Phases 1 and 2 (1,200 square metres each) are scheduled to become operational in 4Q 2017; phases 3 & 4 (1,200 square metres each) are scheduled to become operational in 2Q 2018.
(f) FRA13: Phase 1 (2,300 square metres) is scheduled to become operational in 4Q 2018; phase 2 (2,500 square metres) is scheduled to become operational in 1Q 2019.
(g) MRS1: 600 square metres became operational in 1Q 2017; another 900 square metres became operational in 2Q 2017.

(h) MRS2: 900 square metres is scheduled to become operational in 1Q 2018; 1,800 square metres is scheduled to become operational in 3Q 2018. Further phases have not yet been announced.

(i) PAR7: 400 square metres became operational in 4Q 2016.1,100 square metres became operational in 1Q 2017; another 600 square metres became available in 2Q 2017.

(j) VIE2: 300 sqm became operational in 3Q 2016; 1,100 square metres became operational in 2Q 2017; 300 square metres is scheduled to become operational in 4Q 2017; 700 square metres is scheduled to become operational in 2Q 2018; 600 square metres is scheduled to become operational in 3Q 2018.

Source: Interxion Holding NV

Interxion Holding NV
Investor Relations:
Jim Huseby, +1 813-644-9399
IR@interxion.com