EQUINIX INC Quarterly Report for Q3 Ended Sep 30, 2012

Summary

Equinix Inc. (EQIX) reported solid revenue growth of 20% year-over-year for the third quarter of 2012, reaching $488.7 million. This growth was driven by strong performance across all regions, particularly in Asia-Pacific which saw a 47% revenue increase, fueled by acquisitions and organic expansion. The company's strategic decision to pursue a Real Estate Investment Trust (REIT) conversion, planned for 2015, was a significant development, though it entails substantial conversion costs and potential tax liabilities. Despite increased operating expenses and interest expenses, the company demonstrated improved profitability with net income attributable to Equinix rising to $28.8 million, a 42% increase year-over-year.

Key Highlights

• 1Total revenues increased by 20% to $488.7 million for the three months ended September 30, 2012, compared to $408.2 million for the same period in 2011.
• 2Net income attributable to Equinix increased by 42% to $28.8 million for the three months ended September 30, 2012, compared to $20.3 million for the same period in 2011.
• 3The company announced a plan to convert to a Real Estate Investment Trust (REIT), with a target effective date of January 1, 2015.
• 4Significant acquisitions were completed in July 2012: Asia Tone for $230.5 million and ancotel GmbH for $85.7 million.
• 5The company completed the divestiture of 16 US IBX data centers in November 2012 for net proceeds of $76.5 million.
• 6Total assets grew to $5,990.9 million as of September 30, 2012, up from $5,785.3 million as of December 31, 2011, driven by property, plant, and equipment, and goodwill.
• 7Debt repayment and new financing activities were prominent, including the full repayment of the Asia-Pacific financing and the drawdown of a new $750 million US financing facility.

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