Summary
Equinix Inc. reported strong revenue growth in the third quarter and first nine months of 2013, with a 12% and 15% increase year-over-year, respectively. This growth was driven by expansions in its global IBX data centers and increased customer orders across all regions. The company's adjusted EBITDA also saw a significant rise, indicating operational efficiency and strong cash-generating abilities. Financially, Equinix strengthened its balance sheet by issuing $1.5 billion in senior notes and utilizing a portion for the redemption of its 8.125% senior notes. The company ended the period with substantial cash and investments, supported by its operating activities and available credit facilities. Equinix continues to advance its plan to convert to a Real Estate Investment Trust (REIT), anticipating significant tax and conversion costs but expecting long-term benefits. The company also disclosed several accounting policy changes and revisions for prior periods related to revenue recognition and cash flow statements, which were deemed immaterial to previously issued financial statements.
Financial Highlights
51 data points| Revenue | $543.08M |
| Cost of Revenue | $268.96M |
| Gross Profit | $274.12M |
| Operating Expenses | $427.89M |
| Operating Income | $115.19M |
| Interest Expense | $61.96M |
| Net Income | $42.47M |
| EPS (Basic) | $0.86 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Basic) | 49.55M |
| Shares Outstanding (Diluted) | 53.58M |
Key Highlights
- 1Revenue increased by 12% year-over-year for the third quarter of 2013 to $543.1 million and by 15% for the first nine months to $1.59 billion.
- 2Adjusted EBITDA showed strong growth, increasing by 10% year-over-year to $248.4 million for Q3 and 14% to $737.4 million for the first nine months.
- 3The company issued $1.5 billion in senior notes in March 2013 to redeem $750 million of 8.125% senior notes and for general corporate purposes, strengthening its liquidity.
- 4Equinix continued its global expansion, with capital expenditures of $243.0 million in Q3 and $444.5 million year-to-date, primarily for IBX data center development.
- 5The company is actively pursuing a conversion to a Real Estate Investment Trust (REIT), with an expected tax impact and conversion costs.
- 6Several accounting revisions were noted for prior periods, primarily related to revenue recognition from installation fees and cash flow statement reclassifications, which were determined to be immaterial.
- 7The company experienced an unfavorable foreign currency impact on its revenues and adjusted EBITDA, particularly in the Asia-Pacific region, due to a stronger U.S. dollar.