Attached files
| file | filename |
|---|---|
| 8-K - ABOVENET INC | v176837_8k.htm |
| EX-99.2 - ABOVENET INC | v176837_ex99-2.htm |
|
Company
Contact:
|
Investor
Contact:
|
|
AboveNet,
Inc.
|
Lippert/Heilshorn
& Associates, Inc
|
|
Lloyd
Jarkow
|
Jody
Burfening/Amy Gibbons
|
|
Vice
President, Corporate Development
|
212-838-3777
|
|
914-421-6700
|
agibbons@lhai.com
|
|
ljarkow@above.net
|
AboveNet
Reports Fourth Quarter 2009 Adjusted EBITDA of $39.2 Million
on
Revenue of $94.3 Million
White Plains, N.Y., March 10,
2010 — AboveNet, Inc. (NYSE: ABVT), a leading provider of
high-bandwidth connectivity solutions, announced results for the fourth quarter
and full year ended December 31, 2009.
“In 2009
we posted strong results that were in line with our expectations for revenue
growth, Adjusted EBITDA margin and capital spending,” said Bill LaPerch,
AboveNet’s President and CEO. “We executed well against our strategy to grow
with our customers and enlarge our addressable market by focusing on lit
services. In 2009, for the first time, lit services revenue surpassed dark fiber
revenue. We also turned free cash flow positive, giving us additional capital
for growth.”
“Beginning
in 2010, we plan to invest a greater portion of our capital spending on projects
designed to position the company for growth over the next five years,” added Mr.
LaPerch. “The market for next-generation Wavelength and Ethernet services is in
its early stages, opening up attractive growth opportunities for us. We intend
to leverage our capabilities as a focused provider of high-bandwidth solutions
to help us achieve industry-leading growth rates over the
long-term.”
Fourth Quarter and Full Year
2009 Highlights
|
·
|
Revenue
in the fourth quarter of 2009 was $94.3 million, an increase of $4.5
million, or 5.0%, compared to the fourth quarter of 2008. Excluding
contract termination revenue from the 2008 and 2009 fourth quarters,
revenue would have been $81.1 million and $93.4 million, respectively, an
increase of $12.3 million, or
15.2%.
|
|
·
|
Domestic
metro services revenue grew 27.6% to $25.4 million in the fourth quarter
of 2009 from $19.9 million in the fourth quarter of 2008; domestic WAN
services revenue increased 21.4% to $17.6 million in the fourth quarter of
2009 from $14.5 million in the fourth quarter of
2008.
|
|
·
|
Net
income for the fourth quarter of 2009 was $206.9 million which includes
the recognition of $183.0 million of non-cash tax
benefits.
|
|
·
|
Cash
provided by operating activities increased to $157.2 million for the full
year of 2009, compared to $116.1 million for the full year of
2008.
|
|
·
|
Cash
used for capital expenditures was $118.7 million for the full year of
2009, compared to $117.2 million for the full year of
2008.
|
|
·
|
Cash
and cash equivalents at December 31, 2009 were $165.3 million, compared to
$87.1 million at December 31, 2008.
|
“During
2009, we further strengthened our financial position, adding $78.2 million to
our cash balance. The increase in cash was achieved from cash flow provided by
operating activities and cash from financing activities, which included
borrowing under our delayed draw facility. Our balance sheet creates a
competitive advantage for us in our markets and gives us the flexibility to
invest in long-term growth opportunities,” said Joe Ciavarella, Senior Vice
President and Chief Financial Officer.
Stock
Split
All share
and per share information has been retroactively adjusted to reflect the
two-for-one stock split, effective September 3, 2009.
Fourth Quarter Financial
Results
Revenue
for the fourth quarter of 2009 was $94.3 million, a 5.0% increase from $89.8
million for the fourth quarter of 2008. Included in revenue was contract
termination revenue of $0.9 million for the fourth quarter of 2009, compared to
$8.7 million, for the fourth quarter of 2008. Excluding contract termination
revenue from the 2008 and 2009 fourth quarters, revenue would have been $81.1
million and $93.4 million, respectively, an increase of $12.3 million, or
15.2%.
For the
fourth quarter of 2009, revenue from domestic operations was $85.0 million,
compared to $82.5 million for the fourth quarter of 2008. Revenue from domestic
metro services in the 2009 fourth quarter totaled $25.4 million, up 27.6% from
$19.9 million for the 2008 fourth quarter. Revenue from domestic WAN services
was $17.6 million in the 2009 fourth quarter, an increase of 21.4% from $14.5
million in the 2008 fourth quarter. Revenue from domestic fiber infrastructure
services in the fourth quarter of 2009 totaled $40.2 million, an increase of
6.9% from $37.6 million for the fourth quarter of 2008. Revenue from our foreign
operations, primarily in the U.K., increased to $9.3 million for the fourth
quarter of 2009 from $7.3 million in the prior year period. This increase is
primarily due to the growth in revenue in local currency in the U.K., partially
aided by the strengthening exchange rate of the British pound versus the U.S.
dollar in the 2009 fourth quarter compared to the 2008 fourth
quarter.
Costs of
revenue was $35.1 million for the fourth quarter of 2009, compared to $31.5
million for the fourth quarter of 2008, an increase of 11.4%. The increase in
costs of revenue reflects increased co-location and third party network costs.
Selling, general and administrative expenses were $21.4 million for the fourth
quarter of 2009, compared to $21.7 million for the fourth quarter of 2008, a
decrease of $0.3 million. This decrease is primarily a result of the reduction
in professional fees due to the normalization of our financial reporting and
lower non-cash stock-based compensation expense offset, in part, by increased
costs associated with additional sales organization headcount. Depreciation and
amortization expense was $14.3 million for the fourth quarter of 2009, compared
to $11.3 million for the fourth quarter of 2008.
2
Operating
income was $23.5 million for the fourth quarter of 2009, compared to $25.3
million for the fourth quarter of 2008, reflecting a decrease of $1.8 million,
primarily due to increased depreciation expense in the 2009 fourth quarter
compared to the 2008 fourth quarter. The fourth quarter of 2009 reflects a net
benefit from income taxes of $182.9 million, compared to a provision for income
taxes for the fourth quarter of 2008 of $5.3 million. Included in the 2009
amount are non-cash tax benefits of $183.0 million relating to the reduction of
certain valuation allowances previously established with respect to deferred tax
assets in the U.S. and the U.K. Net income for the fourth quarter of 2009,
including the aforementioned tax benefits, was $206.9 million, or $7.96 per
diluted share, compared to $17.3 million, or $0.71 per diluted share, for the
fourth quarter of 2008.
Adjusted
EBITDA for the fourth quarter of 2009 was $39.2 million, compared to $39.5
million for the fourth quarter of 2008. Adjusted EBITDA Margin was 41.6% for the
fourth quarter of 2009, compared to 44.0% in the fourth quarter of
2008.
Year Ended 2009 Financial
Results
Revenue
for the year ended December 31, 2009 was $360.1 million, an increase of 12.6%
from $319.9 million for the year ended December 31, 2008. Included in revenue
was contract termination revenue of $3.9 million and $15.4 million for 2009 and
2008, respectively. Excluding contract termination revenue, 2009 revenue would
have increased 17.0% from 2008.
For the
twelve months ended December 31, 2009, revenue from our domestic operations was
$327.3 million, an increase of 13.6% from $288.2 million in the prior year
period. Revenue from domestic metro services totaled $94.8 million, up 38.6%
from $68.4 million in 2008. Revenue from domestic WAN services was $67.0
million, an increase of 34.8% from the $49.7 million reported for 2008. Revenue
from domestic fiber infrastructure services totaled $158.3 million, an increase
of 5.9% from the $149.5 million reported for 2008. Revenue from our foreign
operations, primarily in the U.K., increased to $32.8 million in 2009 from $31.7
million in the prior year. This increase was attributed to revenue growth in
local currency, which more than offset the weakening exchange rate of the
British pound compared to the U.S. dollar during the two periods.
Costs of
revenue was $130.7 million for 2009, compared to $126.0 million for 2008, an
increase of $4.7 million, or 3.7%. Costs of revenue includes a provision for
equipment impairment of $1.2 million in 2009 and $0.4 million in 2008. In
addition, 2008 includes a lease abandonment cost of $0.7 million. The net
increase in costs of revenue was related to higher co-location costs, third
party network charges, increased payroll related expenses (due to the full year
effect of headcount hired in 2008 and new headcount in 2009) and right-of-way
related charges, which were partially offset by the savings of costs incurred
for temporary capacity in 2008 that were not required in 2009. Selling, general
and administrative expenses were $82.5 million for 2009, compared to $90.5
million for 2008, a reduction of $8.0 million, or 8.8%. The decrease related
primarily to a reduction in non-cash stock-based compensation expense and
reduced professional fees, which were partially offset by an increase in payroll
related charges. Additionally, 2008 selling, general and administrative expense
included the loss on asset abandonment of $2.3 million. Depreciation and
amortization expense was $52.0 million for 2009, compared to $48.3 million for
2008, reflecting depreciation on additions to our property and
equipment.
3
Operating
income was $94.9 million for the year ended December 31, 2009, compared to $55.1
million for the year ended December 31, 2008, an increase of $39.8 million. The
Company recorded net tax benefits totaling $187.6 million in 2009, of which
$183.0 million represents the non-cash tax benefits recorded in connection with
the release of certain valuation allowances discussed above. Full year 2008
included a tax provision of $8.3 million. Net income for 2009 was $281.6
million, or $11.06 per diluted share, compared to $42.3 million, or $1.73 per
diluted share, for 2008.
Adjusted
EBITDA for full year 2009 was $156.6 million, compared to $115.9 million for
2008. Adjusted EBITDA Margin was 43.5% for 2009, compared to 36.2% for
2008.
Capital
expenditures for 2009 were $118.7 million, compared to $117.2 million for
2008.
As of
December 31, 2009, cash and cash equivalent balances were $165.3 million,
compared to $87.1 million at December 31, 2008. Additionally, at December 31,
2009, indebtedness for borrowed money totaled $57.3 million, compared to $36.0
million at December 31, 2008. The Company used $3.2 million to make its
quarterly scheduled principal repayments during the last three quarters of 2009.
Guidance
Management
provided its 2010 outlook for revenue in the range of $395 million to $400
million. Adjusted EBITDA Margin for 2010 is expected to be roughly in line with
the actual Adjusted EBITDA Margin for 2009. Cash used for capital expenditures
for 2010 is expected to be between $150 million and $160 million. Management
expects Adjusted EBITDA to exceed cash used for capital expenditures in
2010.
Non-GAAP Financial
Measures
“Adjusted
EBITDA” is defined as net income before provision for (benefit from) income
taxes, other income/expense, interest income/expense, gain on reversal of
foreign currency translation adjustments from liquidation of subsidiaries,
income/loss from discontinued operations, gain/loss on asset dispositions,
depreciation and amortization, and non-cash based stock compensation. Adjusted
EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA
and Adjusted EBITDA Margin are not intended to replace operating income (loss),
net income (loss), cash flow and other measures of financial performance and
liquidity reported in accordance with accounting principles generally accepted
in the United States. Rather, Adjusted EBITDA and Adjusted EBITDA Margin are
measures of operating performance that investors may consider in addition to
such measures. AboveNet’s management believes that adjusted or modified EBITDA
and its related margin are measures of operating performance that are commonly
reported and widely used by analysts, investors, and other interested parties in
the telecommunications industry because they eliminate many differences in
financial, capitalization, and tax structures, as well as certain non-cash and
non-operating charges to earnings. AboveNet’s management currently uses Adjusted
EBITDA and Adjusted EBITDA Margin for these purposes. AboveNet’s management
believes that Adjusted EBITDA and Adjusted EBITDA Margin trends can be used
as indicators of whether the Company’s operations are able to produce sufficient
operating cash flow to fund working capital needs, service debt obligations, and
fund capital expenditures.
4
Adjusted
EBITDA is also used by the Company for other purposes, including, management’s
assessment of ongoing operations and as a measure for performance based
compensation. However, the definition of adjusted EBITDA for other purposes may
differ from the definition of Adjusted EBITDA used herein. For example, for 2009
and 2010 the definition of adjusted EBITDA in the Company’s incentive cash bonus
plan excludes certain customer termination fees. Additionally, Adjusted EBITDA
as used in this press release may not be calculated identically to similarly
titled measures reported by other companies.
The
Company also reviews revenue, net of contract termination revenue as well as
revenue in local currency. Revenue, net of contract termination revenue shows
the change in the Company’s recurring revenue from period to period excluding
the impact of non-recurring contract termination revenue. Revenue in local
currency shows the changes of foreign subsidiary revenue without the impact of
currency fluctuations. Management believes these non-GAAP metrics provide
helpful insight into revenue trends.
Conference
Call
AboveNet
will hold a conference call to report fourth quarter 2009 results at 10:00 a.m.
ET today, March 10, 2010. The dial in number for the call is 866-394-9472,
conference ID is 58532525. The call is also being webcast with an accompanying
presentation, which can be accessed through the investor relations section of
AboveNet’s website at http://investors.above.net. Please allow time to download
the presentation before the call starts. A replay of the call will be available
from 1:00 p.m. ET on March 10 until 11:59 p.m. ET on March 17. To listen to the
telephone replay in the U.S., please dial 800-642-1687 and for international
callers, please dial 706-645-9291. The conference ID is the same as above. The
webcast and the slide presentation will also be archived in the investor
relations section of AboveNet's website for 90 days.
About AboveNet,
Inc.
AboveNet,
Inc. provides high-bandwidth connectivity solutions for business and carriers.
Its private optical network delivers key network and IP services in and among
top U.S. metro markets and globally. AboveNet's network is widely used in
demanding markets such as financial services, media, health care, retail and
government. For more information about AboveNet, please visit the Company’s
website at www.above.net.
Forward Looking
Statements
Statements made in this press release that are not historical in nature
constitute forward-looking statements within the meaning of the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995. We cannot assure you that the future
results expressed or implied by the forward-looking statements will be
achieved. Such statements are based on the current
expectations and beliefs of the management of AboveNet, Inc. and are subject to
a number of risks and uncertainties that could cause actual results to differ
materially from the future results expressed or implied by such forward-looking
statements. These risks and uncertainties
include, but are not limited to, the Company's financial and operating
prospects, current economic trends and recessionary pressures, future
opportunities, the Company's exposure to the financial services industry, and
strength of competition and pricing. The Company's business could be
materially adversely affected and the trading price of the Company's common
stock could decline if these risks and uncertainties develop into actual
events. The Company cautions you not to place
undue reliance on these forward-looking statements, which speak only as of their
respective dates. The Company undertakes no obligation to
publicly update or revise forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect the occurrence of
unanticipated events. A more detailed discussion of factors
that may affect the Company's business or future financial results, is included
in the Company's SEC filings, including, but not limited to, those described in
"Risk Factors" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations"
in the Company's Annual Report on Form 10-K for the year ended December 31,
2008 and in the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 2009. We discuss certain non-GAAP financial
measures in this press
release and provide the
GAAP financial measures that correspond to such non-GAAP measures, as well as
the reconciliation between
the two.
5
|
ABOVENET,
INC. AND SUBSIDIARIES
|
||||||||
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
|
(in
millions, except share and per share information)*
|
||||||||
|
December
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
ASSETS:
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 165.3 | $ | 87.1 | ||||
|
Restricted
cash and cash equivalents
|
3.7 | 3.5 | ||||||
|
Accounts
receivable, net of allowances of $2.0 and $1.3 at December 31, 2009
and
|
||||||||
|
2008,
respectively
|
20.1 | 19.2 | ||||||
|
Prepaid
costs and other current assets
|
13.5 | 9.8 | ||||||
|
Total
current assets
|
202.6 | 119.6 | ||||||
|
Property
and equipment, net of accumulated depreciation and amortization of $236.5
and
|
||||||||
|
$207.4
at December 31, 2009 and 2008, respectively
|
469.1 | 398.4 | ||||||
|
Deferred
tax assets
|
183.0 | — | ||||||
|
Other
assets
|
7.3 | 5.9 | ||||||
|
Total
assets
|
$ | 862.0 | $ | 523.9 | ||||
|
LIABILITIES:
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 10.7 | $ | 13.9 | ||||
|
Accrued
expenses, including income taxes payable
|
68.4 | 65.9 | ||||||
|
Deferred
revenue - current portion
|
27.3 | 24.8 | ||||||
|
Note
payable - current portion
|
7.6 | 3.2 | ||||||
|
Total
current liabilities
|
114.0 | 107.8 | ||||||
|
Note
payable
|
49.7 | 32.8 | ||||||
|
Deferred
revenue
|
93.8 | 88.5 | ||||||
|
Other
long-term liabilities
|
10.3 | 10.5 | ||||||
|
Total
liabilities
|
267.8 | 239.6 | ||||||
|
Commitments
and contingencies
|
||||||||
|
SHAREHOLDERS’
EQUITY:
|
||||||||
|
Preferred
stock, 9,500,000 shares authorized, $0.01 par value, none issued or
outstanding
|
— | — | ||||||
|
Junior
preferred stock, 500,000 shares authorized, $0.01 par value, none issued
or
|
||||||||
|
outstanding
|
— | — | ||||||
|
Common
stock, 30,000,000 shares authorized, $0.01 par value, 25,271,788 issued
and
|
||||||||
|
24,750,560
outstanding at December 31, 2009 and 23,219,474 issued and
22,716,602
|
||||||||
|
outstanding
at December 31, 2008
|
0.3 | 0.2 | ||||||
|
Additional
paid-in capital
|
308.2 | 279.9 | ||||||
|
Treasury
stock at cost, 521,228 and 502,872 shares at December 31, 2009 and
2008,
|
||||||||
|
respectively
|
(16.7 | ) | (16.3 | ) | ||||
|
Accumulated
other comprehensive loss
|
(9.0 | ) | (9.3 | ) | ||||
|
Retained
earnings
|
311.4 | 29.8 | ||||||
|
Total
shareholders’ equity
|
594.2 | 284.3 | ||||||
|
Total
liabilities and shareholders’ equity
|
$ | 862.0 | $ | 523.9 | ||||
* All
share information has been retroactively adjusted to reflect the two-for-one
stock split, effective September 3, 2009.
6
|
ABOVENET,
INC. AND SUBSIDIARIES
|
||||||||||||||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
(in
millions, except share and per share information)*
|
||||||||||||||||
|
Three
Months Ended December 31,
|
Years
Ended December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Revenue
|
$ | 94.3 | $ | 89.8 | $ | 360.1 | $ | 319.9 | ||||||||
|
Costs
of revenue (excluding depreciation and
|
||||||||||||||||
|
amortization,
shown separately below, and including
|
||||||||||||||||
|
provision
for equipment impairment of $0.3 for the
|
||||||||||||||||
|
three
months ended December 31, 2009, and $1.2 and
|
||||||||||||||||
|
$0.4
for the years ended December 31, 2009 and 2008,
|
||||||||||||||||
|
respectively)
|
35.1 | 31.5 | 130.7 | 126.0 | ||||||||||||
|
Selling,
general and administrative expenses
|
21.4 | 21.7 | 82.5 | 90.5 | ||||||||||||
|
Depreciation
and amortization
|
14.3 | 11.3 | 52.0 | 48.3 | ||||||||||||
|
Operating
income
|
23.5 | 25.3 | 94.9 | 55.1 | ||||||||||||
|
Other
income (expense):
|
||||||||||||||||
|
Interest
income
|
— | 0.4 | 0.3 | 1.8 | ||||||||||||
|
Interest
expense
|
(1.2 | ) | (1.2 | ) | (4.8 | ) | (3.9 | ) | ||||||||
|
Other
income (expense), net
|
1.7 | (1.9 | ) | 3.6 | (2.4 | ) | ||||||||||
|
Income
before income taxes
|
24.0 | 22.6 | 94.0 | 50.6 | ||||||||||||
|
(Benefit
from) provision for income taxes
|
(182.9 | ) | 5.3 | (187.6 | ) | 8.3 | ||||||||||
|
|
||||||||||||||||
|
Net
income
|
$ | 206.9 | $ | 17.3 | $ | 281.6 | $ | 42.3 | ||||||||
|
Income
per share, basic:
|
||||||||||||||||
|
Basic
net income per share
|
$ | 8.43 | $ | 0.76 | $ | 11.98 | $ | 1.93 | ||||||||
|
Weighted
average number of common shares
|
24,549,240 | 22,937,434 | 23,504,077 | 21,985,284 | ||||||||||||
|
Income
per share, diluted:
|
||||||||||||||||
|
Diluted
net income per share
|
$ | 7.96 | $ | 0.71 | $ | 11.06 | $ | 1.73 | ||||||||
|
Weighted
average number of common shares
|
25,994,937 | 24,604,984 | 25,468,405 | 24,454,150 | ||||||||||||
* All
share and per share information has been retroactively adjusted to reflect the
two-for-one stock split, effective September 3, 2009.
7
|
ABOVENET,
INC. AND SUBSIDIARIES
|
||||||||
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
|
(in
millions)
|
||||||||
|
Years
Ended December 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Cash
flows provided by operating activities:
|
||||||||
|
Net
income
|
$ | 281.6 | $ | 42.3 | ||||
|
Adjustments
to reconcile net income to net cash provided by
operations:
|
||||||||
|
Depreciation
and amortization
|
52.0 | 48.3 | ||||||
|
Reversal
of valuation allowance on deferred tax assets
|
(183.0 | ) | — | |||||
|
Provision
for equipment impairment and asset abandonment
|
1.2 | 2.7 | ||||||
|
Provision
for bad debts
|
0.9 | 0.7 | ||||||
|
Non-cash
stock-based compensation expense
|
9.7 | 12.5 | ||||||
|
Loss
(gain) on sale or disposition of property and equipment, net
|
1.3 | (0.9 | ) | |||||
|
Changes
in operating working capital:
|
||||||||
|
Accounts
receivable
|
(1.2 | ) | (5.6 | ) | ||||
|
Prepaid
costs and other current assets
|
(3.5 | ) | 1.8 | |||||
|
Accounts
payable
|
(3.4 | ) | 6.5 | |||||
|
Accrued
expenses
|
(4.6 | ) | 2.4 | |||||
|
Other
assets
|
(1.3 | ) | (0.3 | ) | ||||
|
Deferred
revenue and other long-term liabilities
|
7.5 | 5.7 | ||||||
|
Net
cash provided by operating activities
|
157.2 | 116.1 | ||||||
|
Cash
flows used in investing activities:
|
||||||||
|
Proceeds
from sales of property and equipment
|
0.3 | 1.6 | ||||||
|
Purchases
of property and equipment
|
(118.7 | ) | (117.2 | ) | ||||
|
Net
cash used in investing activities
|
(118.4 | ) | (115.6 | ) | ||||
|
Cash
flows provided by financing activities:
|
||||||||
|
Proceeds
from note payable, net of financing costs
|
24.5 | 33.6 | ||||||
|
Proceeds
from exercise of options to purchase shares of common stock
|
10.0 | — | ||||||
|
Proceeds
from exercise of warrants
|
8.7 | 10.7 | ||||||
|
Change
in restricted cash and cash equivalents
|
(0.2 | ) | 1.4 | |||||
|
Principal
payments - note payable
|
(3.2 | ) | — | |||||
|
Purchase
of treasury stock
|
(0.4 | ) | (2.9 | ) | ||||
|
Principal
payments - capital lease obligation
|
(0.5 | ) | (0.2 | ) | ||||
|
Net
cash provided by financing activities
|
38.9 | 42.6 | ||||||
|
Effect
of exchange rates on cash
|
0.5 | (1.8 | ) | |||||
|
Net
increase in cash and cash equivalents
|
78.2 | 41.3 | ||||||
|
Cash
and cash equivalents, beginning of year
|
87.1 | 45.8 | ||||||
|
Cash
and cash equivalents, end of year
|
$ | 165.3 | $ | 87.1 | ||||
|
Supplemental
cash flow information:
|
||||||||
|
Cash
paid for interest
|
$ | 2.7 | $ | 2.1 | ||||
|
Cash
paid for income taxes
|
$ | 2.8 | $ | 1.0 | ||||
|
Non-cash
financing activity:
|
||||||||
|
Non-cash
exercise of five year warrants at maturity
|
$ | — | $ | 3.2 | ||||
|
Non-cash
purchase of shares into treasury
|
$ | — | $ | 3.2 | ||||
8
|
ABOVENET,
INC. AND SUBSIDIARIES
|
||||||||||||||||
|
RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||
|
(dollars
in millions)
|
||||||||||||||||
|
Three
Months Ended December 31,
|
Years
Ended December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Reconciliation of Net
Income to Adjusted EBITDA
|
||||||||||||||||
|
NET INCOME
|
$ | 206.9 | $ | 17.3 | $ | 281.6 | $ | 42.3 | ||||||||
|
Interest
income
|
— | (0.4 | ) | (0.3 | ) | (1.8 | ) | |||||||||
|
Interest
expense
|
1.2 | 1.2 | 4.8 | 3.9 | ||||||||||||
|
Other
(income) expense, net
|
(1.7 | ) | 1.9 | (3.6 | ) | 2.4 | ||||||||||
|
(Benefit
from) provision for income taxes
|
(182.9 | ) | 5.3 | (187.6 | ) | 8.3 | ||||||||||
|
OPERATING
INCOME
|
23.5 | 25.3 | 94.9 | 55.1 | ||||||||||||
|
Depreciation
and amortization
|
14.3 | 11.3 | 52.0 | 48.3 | ||||||||||||
|
Non-cash
stock-based compensation
|
1.4 | 2.9 | 9.7 | 12.5 | ||||||||||||
|
Adjusted EBITDA
|
$ | 39.2 | $ | 39.5 | $ | 156.6 | $ | 115.9 | ||||||||
|
Calculation of
Adjusted EBITDA Margins
|
||||||||||||||||
|
Adjusted
EBITDA
|
$ | 39.2 | $ | 39.5 | $ | 156.6 | $ | 115.9 | ||||||||
|
Revenue
|
$ | 94.3 | $ | 89.8 | $ | 360.1 | $ | 319.9 | ||||||||
|
Adjusted EBITDA Margin
|
41.6 | % | 44.0 | % | 43.5 | % | 36.2 | % | ||||||||
|
Reconciliation of
Revenue to Revenue, Net of Contract Termination
Revenue
|
||||||||||||||||
|
Revenue
|
$ | 94.3 | $ | 89.8 | $ | 360.1 | $ | 319.9 | ||||||||
|
Less:
Contract Termination Revenue
|
(0.9 | ) | (8.7 | ) | (3.9 | ) | (15.4 | ) | ||||||||
|
Revenue,
Net of Contract Termination Revenue
|
$ | 93.4 | $ | 81.1 | $ | 356.2 | $ | 304.5 | ||||||||
9