Attached files
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| 8-K - FORM 8-K - EQUINIX INC | d634255d8k.htm |
Exhibit 99.1
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share data)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||
| September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
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| Recurring revenues |
$ | 515,566 | $ | 501,814 | $ | 494,522 | $ | 482,826 | $ | 460,482 | $ | 433,615 | $ | 420,145 | ||||||||||||||
| Non-recurring revenues |
27,518 | 27,057 | 21,612 | 23,233 | 24,353 | 21,915 | 20,807 | |||||||||||||||||||||
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| Revenues |
543,084 | 528,871 | 516,134 | 506,059 | 484,835 | 455,530 | 440,952 | |||||||||||||||||||||
| Cost of revenues |
268,960 | 267,109 | 258,591 | 249,329 | 250,946 | 225,604 | 218,738 | |||||||||||||||||||||
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| Gross profit |
274,124 | 261,762 | 257,543 | 256,730 | 233,889 | 229,926 | 222,214 | |||||||||||||||||||||
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| Operating expenses: |
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| Sales and marketing |
61,619 | 59,478 | 58,276 | 55,690 | 53,211 | 47,603 | 46,410 | |||||||||||||||||||||
| General and administrative |
96,874 | 88,632 | 90,818 | 86,536 | 83,290 | 80,268 | 78,172 | |||||||||||||||||||||
| Restructuring charges |
— | (4,837 | ) | — | — | — | — | — | ||||||||||||||||||||
| Impairment charges |
— | — | — | 9,861 | — | — | — | |||||||||||||||||||||
| Acquisition costs |
438 | 2,526 | 3,662 | 1,939 | 4,542 | 1,666 | 675 | |||||||||||||||||||||
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| Total operating expenses |
158,931 | 145,799 | 152,756 | 154,026 | 141,043 | 129,537 | 125,257 | |||||||||||||||||||||
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| Income from operations |
115,193 | 115,963 | 104,787 | 102,704 | 92,846 | 100,389 | 96,957 | |||||||||||||||||||||
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| Interest and other income (expense): |
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| Interest income |
929 | 917 | 747 | 758 | 1,054 | 963 | 691 | |||||||||||||||||||||
| Interest expense |
(61,957 | ) | (61,001 | ) | (60,331 | ) | (50,516 | ) | (50,207 | ) | (46,787 | ) | (52,818 | ) | ||||||||||||||
| Loss on debt extinguishment |
— | (93,602 | ) | — | — | (5,204 | ) | — | — | |||||||||||||||||||
| Other income (expense) |
985 | 2,768 | (459 | ) | (717 | ) | 507 | (1,844 | ) | (154 | ) | |||||||||||||||||
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| Total interest and other, net |
(60,043 | ) | (150,918 | ) | (60,043 | ) | (50,475 | ) | (53,850 | ) | (47,668 | ) | (52,281 | ) | ||||||||||||||
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| Income (loss) from continuing operations before income taxes |
55,150 | (34,955 | ) | 44,744 | 52,229 | 38,996 | 52,721 | 44,676 | ||||||||||||||||||||
| Income tax benefit (expense) |
(12,397 | ) | 9,668 | (11,460 | ) | (17,476 | ) | (12,348 | ) | (16,271 | ) | (12,469 | ) | |||||||||||||||
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| Net income (loss) from continuing operations |
42,753 | (25,287 | ) | 33,284 | 34,753 | 26,648 | 36,450 | 32,207 | ||||||||||||||||||||
| Net income from discontinued operations, net of tax |
— | — | — | 6 | 679 | 350 | 199 | |||||||||||||||||||||
| Gain on sale of discontinued operations, net of tax |
— | — | — | 11,852 | — | — | — | |||||||||||||||||||||
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| Net income (loss) |
42,753 | (25,287 | ) | 33,284 | 46,611 | 27,327 | 36,800 | 32,406 | ||||||||||||||||||||
| Net income attributable to redeemable non-controlling interests |
(282 | ) | (529 | ) | (441 | ) | (1,273 | ) | (362 | ) | (1,193 | ) | (288 | ) | ||||||||||||||
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| Net income (loss) attributable to Equinix |
$ | 42,471 | $ | (25,816 | ) | $ | 32,843 | $ | 45,338 | $ | 26,965 | $ | 35,607 | $ | 32,118 | |||||||||||||
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| Net income (loss) per share attributable to Equinix: |
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| Basic net income (loss) per share from continuing operations |
$ | 0.86 | $ | (0.52 | ) | $ | 0.67 | $ | 0.69 | $ | 0.54 | $ | 0.73 | $ | 0.68 | |||||||||||||
| Basic net income per share from discontinued operations |
— | — | — | 0.24 | 0.02 | 0.01 | 0.01 | |||||||||||||||||||||
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| Basic net income (loss) per share (2) |
$ | 0.86 | $ | (0.52 | ) | $ | 0.67 | $ | 0.93 | $ | 0.56 | $ | 0.74 | $ | 0.69 | |||||||||||||
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| Diluted net income (loss) per share from continuing operations |
$ | 0.83 | $ | (0.52 | ) | $ | 0.65 | $ | 0.67 | $ | 0.53 | $ | 0.71 | $ | 0.66 | |||||||||||||
| Diluted net income per share from discontinued operations |
— | — | — | 0.22 | 0.01 | — | 0.01 | |||||||||||||||||||||
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| Diluted net income (loss) per share (3) |
$ | 0.83 | $ | (0.52 | ) | $ | 0.65 | $ | 0.89 | $ | 0.54 | $ | 0.71 | $ | 0.67 | |||||||||||||
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| Shares used in computing basic net income (loss) per share |
49,555 | 49,379 | 49,029 | 48,673 | 48,361 | 48,016 | 46,955 | |||||||||||||||||||||
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| Shares used in computing diluted net income (loss) per share |
53,581 | 49,379 | 53,480 | 52,917 | 52,655 | 52,351 | 51,061 | |||||||||||||||||||||
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(1) In November 2013, we completed our evaluation of whether a lengthening of the estimated period over which non-recurring installation fees are recognized, which we originally incorrectly considered a change in estimate that we began to recognize prospectively beginning in the second quarter of 2013, should have been applied in earlier periods. We concluded that these longer lives should have been identified and utilized for revenue recognition purposes beginning in 2006. We assessed the materiality of this error individually and in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the error was not material to any of our prior interim and annual financial statements and, therefore, the previously-issued financial statements could continue to be relied upon and that amendment of previously filed reports with the SEC was not required. We also determined that correcting the cumulative amount of the non-recurring installation fees of $27.2 million as of December 31, 2012 in 2013 would be material to the projected 2013 consolidated financial statements, and, as such, we revised our previously-issued consolidated financial statements accordingly, commencing with our Form 10-Q for the quarterly period ended September 30, 2013. Such adjustment has no effect on our total cash flows. As part of the revision to our previously-issued consolidated financial statements noted above, we also revised our consolidated financial statements for several previously identified immaterial errors that were either uncorrected or corrected in a period subsequent to the period in which the error originated, as more fully described in Note 2 of our Form 10-Q filed for the quarterly period ended September 30, 2013. The financial results contained herein are the as revised financial statements. |
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| (2) The net income (loss) used in the computation of basic net income per share attributable to Equinix is presented below: |
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| Net income (loss) from continuing operations |
$ | 42,753 | $ | (25,287 | ) | $ | 33,284 | $ | 34,753 | $ | 26,648 | $ | 36,450 | $ | 32,207 | |||||||||||||
| Net income attributable to non-controlling interests |
(282 | ) | (529 | ) | (441 | ) | (1,273 | ) | (362 | ) | (1,193 | ) | (288 | ) | ||||||||||||||
| Adjustments attributable to redemption value of non-controlling interests |
— | — | — | — | — | — | 209 | |||||||||||||||||||||
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| Net income (loss) from continuing operations attributable to Equinix, basic |
42,471 | (25,816 | ) | 32,843 | 33,480 | 26,286 | 35,257 | 32,128 | ||||||||||||||||||||
| Net income from discontinued operations |
— | — | — | 11,858 | 679 | 350 | 199 | |||||||||||||||||||||
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| Net income (loss) attributable to Equinix, basic |
$ | 42,471 | $ | (25,816 | ) | $ | 32,843 | $ | 45,338 | $ | 26,965 | $ | 35,607 | $ | 32,327 | |||||||||||||
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| (3) The net income (loss) used in the computation of diluted net income per share attributable to Equinix is presented below: |
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| Net income (loss) from continuing operations attributable to Equinix, basic |
$ | 42,471 | $ | (25,816 | ) | $ | 32,843 | $ | 33,480 | $ | 26,286 | $ | 35,257 | $ | 32,128 | |||||||||||||
| Interest on convertible debt |
1,865 | — | 1,851 | 1,707 | 1,696 | 1,678 | 1,699 | |||||||||||||||||||||
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| Net income (loss) from continuing operations attributable to Equinix, diluted |
44,336 | (25,816 | ) | 34,694 | 35,187 | 27,982 | 36,935 | 33,827 | ||||||||||||||||||||
| Net income from discontinued operations |
— | — | — | 11,858 | 679 | 350 | 199 | |||||||||||||||||||||
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| Net income (loss) attributable to Equinix, diluted |
$ | 44,336 | $ | (25,816 | ) | $ | 34,694 | $ | 47,045 | $ | 28,661 | $ | 37,285 | $ | 34,026 | |||||||||||||
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EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (1)
(in thousands)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||
| September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
March 31, 2012 |
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| Recurring revenues |
$ | 515,566 | $ | 501,814 | $ | 494,522 | $ | 482,826 | $ | 460,482 | $ | 433,615 | $ | 420,145 | ||||||||||||||
| Non-recurring revenues |
27,518 | 27,057 | 21,612 | 23,233 | 24,353 | 21,915 | 20,807 | |||||||||||||||||||||
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| Revenues (2) |
543,084 | 528,871 | 516,134 | 506,059 | 484,835 | 455,530 | 440,952 | |||||||||||||||||||||
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| Cash cost of revenues (3) |
174,111 | 168,421 | 162,010 | 158,086 | 157,425 | 141,352 | 137,929 | |||||||||||||||||||||
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| Cash gross profit (4) |
368,973 | 360,450 | 354,124 | 347,973 | 327,410 | 314,178 | 303,023 | |||||||||||||||||||||
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| Cash operating expenses (5): |
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| Cash sales and marketing expenses (6) |
48,172 | 46,430 | 46,280 | 43,996 | 42,120 | 38,689 | 38,119 | |||||||||||||||||||||
| Cash general and administrative expenses (7) |
72,356 | 65,985 | 66,956 | 64,291 | 60,274 | 59,069 | 58,169 | |||||||||||||||||||||
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| Total cash operating expenses (8) |
120,528 | 112,415 | 113,236 | 108,287 | 102,394 | 97,758 | 96,288 | |||||||||||||||||||||
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| Adjusted EBITDA (9) |
$ | 248,445 | $ | 248,035 | $ | 240,888 | $ | 239,686 | $ | 225,016 | $ | 216,420 | $ | 206,735 | ||||||||||||||
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| Cash gross margins (10) |
68 | % | 68 | % | 69 | % | 69 | % | 68 | % | 69 | % | 69 | % | ||||||||||||||
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| Adjusted EBITDA margins (11) |
46 | % | 47 | % | 47 | % | 47 | % | 46 | % | 48 | % | 47 | % | ||||||||||||||
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| Adjusted EBITDA flow-through rate (12) |
3 | % | 56 | % | 12 | % | 69 | % | 29 | % | 66 | % | 66 | % | ||||||||||||||
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(1) In November 2013, we completed our evaluation of whether a lengthening of the estimated period over which non-recurring installation fees are recognized, which we originally incorrectly considered a change in estimate that we began to recognize prospectively beginning in the second quarter of 2013, should have been applied in earlier periods. We concluded that these longer lives should have been identified and utilized for revenue recognition purposes beginning in 2006. We assessed the materiality of this error individually and in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the error was not material to any of our prior interim and annual financial statements and, therefore, the previously-issued financial statements could continue to be relied upon and that amendment of previously filed reports with the SEC was not required. We also determined that correcting the cumulative amount of the non-recurring installation fees of $27.2 million as of December 31, 2012 in 2013 would be material to the projected 2013 consolidated financial statements, and, as such, we revised our previously-issued consolidated financial statements accordingly, commencing with our Form 10-Q for the quarterly period ended September 30, 2013. Such adjustment has no effect on our total cash flows. As part of the revision to our previously-issued consolidated financial statements noted above, we also revised our consolidated financial statements for several previously identified immaterial errors that were either uncorrected or corrected in a period subsequent to the period in which the error originated, as more fully described in Note 2 of our Form 10-Q filed for the quarterly period ended September 30, 2013. The financial results contained herein are the as revised financial statements. |
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| (2) The geographic split of our revenues on a services basis is presented below: |
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| Americas Revenues: |
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| Colocation |
$ | 230,583 | $ | 226,290 | $ | 223,285 | $ | 216,052 | $ | 212,805 | $ | 209,536 | $ | 203,702 | ||||||||||||||
| Interconnection |
61,984 | 59,800 | 58,206 | 56,426 | 54,943 | 53,048 | 51,739 | |||||||||||||||||||||
| Managed infrastructure |
12,905 | 13,567 | 13,147 | 11,981 | 12,017 | 12,125 | 13,464 | |||||||||||||||||||||
| Rental |
818 | 445 | 460 | 490 | 469 | 445 | 439 | |||||||||||||||||||||
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| Recurring revenues |
306,290 | 300,102 | 295,098 | 284,949 | 280,234 | 275,154 | 269,344 | |||||||||||||||||||||
| Non-recurring revenues |
13,123 | 13,366 | 10,694 | 10,023 | 11,602 | 10,874 | 7,663 | |||||||||||||||||||||
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| Revenues |
319,413 | 313,468 | 305,792 | 294,972 | 291,836 | 286,028 | 277,007 | |||||||||||||||||||||
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| EMEA Revenues: |
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| Colocation |
108,906 | 103,916 | 100,532 | 95,823 | 91,512 | 87,820 | 83,951 | |||||||||||||||||||||
| Interconnection |
9,233 | 8,854 | 8,381 | 7,989 | 7,188 | 4,192 | 3,824 | |||||||||||||||||||||
| Managed infrastructure |
6,215 | 5,734 | 4,249 | 4,596 | 5,112 | 3,262 | 3,414 | |||||||||||||||||||||
| Rental |
116 | 138 | 120 | 325 | 314 | 336 | 344 | |||||||||||||||||||||
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| Recurring revenues |
124,470 | 118,642 | 113,282 | 108,733 | 104,126 | 95,610 | 91,533 | |||||||||||||||||||||
| Non-recurring revenues |
8,784 | 8,367 | 6,687 | 8,593 | 7,699 | 6,955 | 9,671 | |||||||||||||||||||||
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| Revenues |
133,254 | 127,009 | 119,969 | 117,326 | 111,825 | 102,565 | 101,204 | |||||||||||||||||||||
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| Asia-Pacific Revenues: |
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| Colocation |
69,080 | 67,881 | 71,014 | 73,824 | 61,470 | 50,139 | 47,060 | |||||||||||||||||||||
| Interconnection |
10,433 | 9,699 | 9,404 | 9,090 | 8,550 | 7,794 | 7,320 | |||||||||||||||||||||
| Managed infrastructure |
5,293 | 5,490 | 5,724 | 6,230 | 6,102 | 4,918 | 4,888 | |||||||||||||||||||||
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| Recurring revenues |
84,806 | 83,070 | 86,142 | 89,144 | 76,122 | 62,851 | 59,268 | |||||||||||||||||||||
| Non-recurring revenues |
5,611 | 5,324 | 4,231 | 4,617 | 5,052 | 4,086 | 3,473 | |||||||||||||||||||||
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| Revenues |
90,417 | 88,394 | 90,373 | 93,761 | 81,174 | 66,937 | 62,741 | |||||||||||||||||||||
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| Worldwide Revenues: |
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| Colocation |
408,569 | 398,087 | 394,831 | 385,699 | 365,787 | 347,495 | 334,713 | |||||||||||||||||||||
| Interconnection |
81,650 | 78,353 | 75,991 | 73,505 | 70,681 | 65,034 | 62,883 | |||||||||||||||||||||
| Managed infrastructure |
24,413 | 24,791 | 23,120 | 22,807 | 23,231 | 20,305 | 21,766 | |||||||||||||||||||||
| Rental |
934 | 583 | 580 | 815 | 783 | 781 | 783 | |||||||||||||||||||||
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| Recurring revenues |
515,566 | 501,814 | 494,522 | 482,826 | 460,482 | 433,615 | 420,145 | |||||||||||||||||||||
| Non-recurring revenues |
27,518 | 27,057 | 21,612 | 23,233 | 24,353 | 21,915 | 20,807 | |||||||||||||||||||||
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| Revenues |
$ | 543,084 | $ | 528,871 | $ | 516,134 | $ | 506,059 | $ | 484,835 | $ | 455,530 | $ | 440,952 | ||||||||||||||
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| (3) We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below: |
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| Cost of revenues |
$ | 268,960 | $ | 267,109 | $ | 258,591 | $ | 249,329 | $ | 250,946 | $ | 225,604 | $ | 218,738 | ||||||||||||||
| Depreciation, amortization and accretion expense |
(92,579 | ) | (96,894 | ) | (94,979 | ) | (89,602 | ) | (91,795 | ) | (82,718 | ) | (79,492 | ) | ||||||||||||||
| Stock-based compensation expense |
(2,270 | ) | (1,794 | ) | (1,602 | ) | (1,641 | ) | (1,726 | ) | (1,534 | ) | (1,317 | ) | ||||||||||||||
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| Cash cost of revenues |
$ | 174,111 | $ | 168,421 | $ | 162,010 | $ | 158,086 | $ | 157,425 | $ | 141,352 | $ | 137,929 | ||||||||||||||
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| The geographic split of our cash cost of revenues is presented below: |
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| Americas cash cost of revenues |
$ | 92,882 | $ | 89,890 | $ | 87,724 | $ | 82,665 | $ | 84,771 | $ | 80,806 | $ | 80,650 | ||||||||||||||
| EMEA cash cost of revenues |
47,924 | 47,304 | 43,629 | 43,888 | 42,615 | 37,392 | 35,353 | |||||||||||||||||||||
| Asia-Pacific cash cost of revenues |
33,305 | 31,227 | 30,657 | 31,533 | 30,039 | 23,154 | 21,926 | |||||||||||||||||||||
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| Cash cost of revenues |
$ | 174,111 | $ | 168,421 | $ | 162,010 | $ | 158,086 | $ | 157,425 | $ | 141,352 | $ | 137,929 | ||||||||||||||
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| (4) We define cash gross profit as revenues less cash cost of revenues (as defined above). |
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| (5) We define cash operating expenses as operating expenses less depreciation, amortization and stock-based compensation. We also refer to cash operating expenses as cash selling, general and administrative expenses or “cash SG&A”. |
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| (6) We define cash sales and marketing expenses as sales and marketing expenses less depreciation, amortization and stock-based compensation as presented below: |
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| Sales and marketing expenses |
$ | 61,619 | $ | 59,478 | $ | 58,276 | $ | 55,690 | $ | 53,211 | $ | 47,603 | $ | 46,410 | ||||||||||||||
| Depreciation and amortization expense |
(6,197 | ) | (6,223 | ) | (6,275 | ) | (6,469 | ) | (6,296 | ) | (4,239 | ) | (4,256 | ) | ||||||||||||||
| Stock-based compensation expense |
(7,250 | ) | (6,825 | ) | (5,721 | ) | (5,225 | ) | (4,795 | ) | (4,675 | ) | (4,035 | ) | ||||||||||||||
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| Cash sales and marketing expenses |
$ | 48,172 | $ | 46,430 | $ | 46,280 | $ | 43,996 | $ | 42,120 | $ | 38,689 | $ | 38,119 | ||||||||||||||
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| (7) We define cash general and administrative expenses as general and administrative expenses less depreciation, amortization and stock-based compensation as presented below: |
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| General and administrative expenses |
$ | 96,874 | $ | 88,632 | $ | 90,818 | $ | 86,536 | $ | 83,290 | $ | 80,268 | $ | 78,172 | ||||||||||||||
| Depreciation and amortization expense |
(6,758 | ) | (7,072 | ) | (7,349 | ) | (7,480 | ) | (7,431 | ) | (7,291 | ) | (6,474 | ) | ||||||||||||||
| Stock-based compensation expense |
(17,760 | ) | (15,575 | ) | (16,513 | ) | (14,765 | ) | (15,585 | ) | (13,908 | ) | (13,529 | ) | ||||||||||||||
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| Cash general and administrative expenses |
$ | 72,356 | $ | 65,985 | $ | 66,956 | $ | 64,291 | $ | 60,274 | $ | 59,069 | $ | 58,169 | ||||||||||||||
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| (8) Our cash operating expenses, or cash SG&A, as defined above, is presented below: |
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| Cash sales and marketing expenses |
$ | 48,172 | $ | 46,430 | $ | 46,280 | $ | 43,996 | $ | 42,120 | $ | 38,689 | $ | 38,119 | ||||||||||||||
| Cash general and administrative expenses |
72,356 | 65,985 | 66,956 | 64,291 | 60,274 | 59,069 | 58,169 | |||||||||||||||||||||
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| Cash SG&A |
$ | 120,528 | $ | 112,415 | $ | 113,236 | $ | 108,287 | $ | 102,394 | $ | 97,758 | $ | 96,288 | ||||||||||||||
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| The geographic split of our cash operating expenses, or cash SG&A, is presented below: |
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| Americas cash SG&A |
$ | 76,227 | $ | 69,287 | $ | 73,551 | $ | 65,466 | $ | 67,136 | $ | 65,774 | $ | 66,849 | ||||||||||||||
| EMEA cash SG&A |
28,191 | 29,016 | 27,611 | 28,043 | 22,818 | 20,100 | 19,099 | |||||||||||||||||||||
| Asia-Pacific cash SG&A |
16,110 | 14,112 | 12,074 | 14,778 | 12,440 | 11,884 | 10,340 | |||||||||||||||||||||
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| Cash SG&A |
$ | 120,528 | $ | 112,415 | $ | 113,236 | $ | 108,287 | $ | 102,394 | $ | 97,758 | $ | 96,288 | ||||||||||||||
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| (9) We define adjusted EBITDA as income from continuing operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges and acquisition costs as presented below: |
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| Income from continuing operations |
$ | 115,193 | $ | 115,963 | $ | 104,787 | $ | 102,704 | $ | 92,846 | $ | 100,389 | $ | 96,957 | ||||||||||||||
| Depreciation, amortization and accretion expense |
105,534 | 110,189 | 108,603 | 103,551 | 105,522 | 94,248 | 90,222 | |||||||||||||||||||||
| Stock-based compensation expense |
27,280 | 24,194 | 23,836 | 21,631 | 22,106 | 20,117 | 18,881 | |||||||||||||||||||||
| Restructuring charges |
— | (4,837 | ) | — | — | — | — | — | ||||||||||||||||||||
| Impairment charges |
— | — | — | 9,861 | — | — | — | |||||||||||||||||||||
| Acquisition costs |
438 | 2,526 | 3,662 | 1,939 | 4,542 | 1,666 | 675 | |||||||||||||||||||||
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| Adjusted EBITDA |
$ | 248,445 | $ | 248,035 | $ | 240,888 | $ | 239,686 | $ | 225,016 | $ | 216,420 | $ | 206,735 | ||||||||||||||
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| The geographic split of our adjusted EBITDA is presented below: |
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| Americas income from continuing operations |
$ | 70,691 | $ | 73,673 | $ | 59,379 | $ | 63,394 | $ | 62,567 | $ | 64,591 | $ | 57,948 | ||||||||||||||
| Americas depreciation, amortization and accretion expense |
58,939 | 65,149 | 63,296 | 59,833 | 60,394 | 59,633 | 56,721 | |||||||||||||||||||||
| Americas stock-based compensation expense |
20,591 | 18,168 | 18,444 | 16,641 | 16,968 | 15,225 | 14,929 | |||||||||||||||||||||
| Americas restructuring charges |
— | (4,837 | ) | — | — | — | — | — | ||||||||||||||||||||
| Americas impairment charges |
— | — | — | 6,972 | — | — | — | |||||||||||||||||||||
| Americas acquisition costs |
83 | 2,138 | 3,398 | 1 | — | (1 | ) | (90 | ) | |||||||||||||||||||
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| Americas adjusted EBITDA |
150,304 | 154,291 | 144,517 | 146,841 | 139,929 | 139,448 | 129,508 | |||||||||||||||||||||
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| EMEA income from continuing operations |
28,685 | 23,811 | 22,538 | 18,605 | 20,432 | 22,830 | 27,147 | |||||||||||||||||||||
| EMEA depreciation, amortization and accretion expense |
24,503 | 23,424 | 23,071 | 22,554 | 22,054 | 18,329 | 17,312 | |||||||||||||||||||||
| EMEA stock-based compensation expense |
3,596 | 3,065 | 3,038 | 2,633 | 2,900 | 2,673 | 2,164 | |||||||||||||||||||||
| EMEA acquisition costs |
355 | 389 | 82 | 1,603 | 1,006 | 1,241 | 129 | |||||||||||||||||||||
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| EMEA adjusted EBITDA |
57,139 | 50,689 | 48,729 | 45,395 | 46,392 | 45,073 | 46,752 | |||||||||||||||||||||
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| Asia-Pacific income from continuing operations |
15,817 | 18,479 | 22,870 | 20,705 | 9,847 | 12,968 | 11,862 | |||||||||||||||||||||
| Asia-Pacific depreciation, amortization and accretion expense |
22,092 | 21,616 | 22,236 | 21,164 | 23,074 | 16,286 | 16,189 | |||||||||||||||||||||
| Asia-Pacific stock-based compensation expense |
3,093 | 2,961 | 2,354 | 2,357 | 2,238 | 2,219 | 1,788 | |||||||||||||||||||||
| Asia-Pacific impairment charges |
— | — | — | 2,889 | — | — | — | |||||||||||||||||||||
| Asia-Pacific acquisition costs |
— | (1 | ) | 182 | 335 | 3,536 | 426 | 636 | ||||||||||||||||||||
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| Asia-Pacific adjusted EBITDA |
41,002 | 43,055 | 47,642 | 47,450 | 38,695 | 31,899 | 30,475 | |||||||||||||||||||||
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| Adjusted EBITDA |
$ | 248,445 | $ | 248,035 | $ | 240,888 | $ | 239,686 | $ | 225,016 | $ | 216,420 | $ | 206,735 | ||||||||||||||
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| (10) We define cash gross margins as cash gross profit divided by revenues. |
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| Our cash gross margins by geographic region is presented below: |
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| Americas cash gross margins |
71 | % | 71 | % | 71 | % | 72 | % | 71 | % | 72 | % | 71 | % | ||||||||||||||
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| EMEA cash gross margins |
64 | % | 63 | % | 64 | % | 63 | % | 62 | % | 64 | % | 65 | % | ||||||||||||||
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| Asia-Pacific cash gross margins |
63 | % | 65 | % | 66 | % | 66 | % | 63 | % | 65 | % | 65 | % | ||||||||||||||
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| (11) We define adjusted EBITDA margins as adjusted EBITDA divided by revenues. |
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| Americas adjusted EBITDA margins |
47 | % | 49 | % | 47 | % | 50 | % | 48 | % | 49 | % | 47 | % | ||||||||||||||
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| EMEA adjusted EBITDA margins |
43 | % | 40 | % | 41 | % | 39 | % | 41 | % | 44 | % | 46 | % | ||||||||||||||
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| Asia-Pacific adjusted EBITDA margins |
45 | % | 49 | % | 53 | % | 51 | % | 48 | % | 48 | % | 49 | % | ||||||||||||||
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| (12) We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows: |
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| Adjusted EBITDA - current period |
$ | 248,445 | $ | 248,035 | $ | 240,888 | $ | 239,686 | $ | 225,016 | $ | 216,420 | $ | 206,735 | ||||||||||||||
| Less adjusted EBITDA - prior period |
(248,035 | ) | (240,888 | ) | (239,686 | ) | (225,016 | ) | (216,420 | ) | (206,735 | ) | (192,880 | ) | ||||||||||||||
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| Adjusted EBITDA growth |
$ | 410 | $ | 7,147 | $ | 1,202 | $ | 14,670 | $ | 8,596 | $ | 9,685 | $ | 13,855 | ||||||||||||||
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| Revenues - current period |
$ | 543,084 | $ | 528,871 | $ | 516,134 | $ | 506,059 | $ | 484,835 | $ | 455,530 | $ | 440,952 | ||||||||||||||
| Less revenues - prior period |
(528,871 | ) | (516,134 | ) | (506,059 | ) | (484,835 | ) | (455,530 | ) | (440,952 | ) | (419,849 | ) | ||||||||||||||
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| Revenue growth |
$ | 14,213 | $ | 12,737 | $ | 10,075 | $ | 21,224 | $ | 29,305 | $ | 14,578 | $ | 21,103 | ||||||||||||||
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| Adjusted EBITDA flow-through rate |
3 | % | 56 | % | 12 | % | 69 | % | 29 | % | 66 | % | 66 | % | ||||||||||||||
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