EQUINIX INC Quarterly Report for Q2 Ended Jun 30, 2014

Summary

Equinix Inc. reported a significant increase in revenue for the second quarter of 2014, driven by organic growth across its global data center footprint, particularly in the Americas and EMEA regions. The company saw a rise in recurring revenues, indicating a strong, stable customer base. Despite revenue growth, Equinix incurred a substantial loss on debt extinguishment due to the exchange of convertible subordinated notes, which significantly impacted net income for the period. The company also provided updates on its plan to convert to a Real Estate Investment Trust (REIT), including ongoing tax implications and estimated conversion costs, which are expected to be material. Liquidity remains strong with substantial cash and available credit facilities, though the company continues to invest heavily in data center expansions and potential acquisitions.

Key Highlights

• 1Total revenues increased by 14% year-over-year to $605.2 million for the three months ended June 30, 2014.
• 2Net income attributable to Equinix was $11.3 million, a significant improvement from a net loss of $25.8 million in the prior year's quarter, though this was heavily influenced by debt extinguishment activities.
• 3The company recognized a $51.2 million loss on debt extinguishment related to exchanges of convertible subordinated notes.
• 4Adjusted EBITDA, a non-GAAP measure, increased by 11% to $275.3 million for the three months ended June 30, 2014, reflecting underlying operational improvements.
• 5Total assets grew to $7.64 billion from $7.49 billion at the end of 2013.
• 6Cash and cash equivalents increased substantially to $408.3 million from $261.9 million at the end of 2013.
• 7Capital expenditures for the six months ended June 30, 2014, were $282.5 million, primarily for data center expansions.

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