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.
Financial Highlights
52 data pointsBeta
Financial Statements
Beta
| Revenue | $484.83M |
| Cost of Revenue | $250.95M |
| Gross Profit | $233.89M |
| Operating Expenses | $391.99M |
| Operating Income | $92.85M |
| Interest Expense | $50.21M |
| Net Income | $26.96M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 48.36M |
| Shares Outstanding (Diluted) | 52.66M |
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.
Frequently Asked Questions
Equinix reported a 20% increase in revenue to $488.7 million and a 42% increase in net income attributable to Equinix to $28.8 million for the third quarter of 2012 compared to the same period in 2011. This growth was driven by strong performance across all geographic segments, acquisitions, and organic growth.
Equinix announced its plan to convert to a Real Estate Investment Trust (REIT) with a target effective date of January 1, 2015. Additionally, the company made significant strategic acquisitions, purchasing Asia Tone and ancotel GmbH in July 2012, and completed the divestiture of 16 US IBX data centers in November 2012.
Equinix undertook significant financing activities, including drawing down a new $750 million credit facility in the US and using these funds to repay the Asia-Pacific financing. The company also completed the settlement of its 2.50% convertible subordinated notes and paid down other loans payable and financing obligations.
Equinix expects to fund its ongoing expansion plans with existing resources and cash generated from operations. As of September 30, 2012, the company had $519.8 million in cash and investments, and $528.5 million in additional liquidity available under its US credit facility. Capital expenditures are expected to remain significant due to ongoing IBX data center expansions and potential acquisitions.