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Press release from Business Wire

Interxion Reports Q4 and Full Year 2011 Results

<ul> <li class='bwlistitemmargb'> Revenue for the year increased by 17% to €244.3 million (2010: €208.4 million) </li> <li class='bwlistitemmargb'> Adjusted EBITDA for the year increased by 23% to €97.6 million (2010: €79.2 million) </li> <li class='bwlistitemmargb'> Adjusted EBITDA margin for the year increased to 40.0% (2010: 38.0%) </li> <li class='bwlistitemmargb'> Net profit increased by 74% to €25.6 million (2010: €14.7 million) </li> <li class='bwlistitemmargb'> Capital Expenditures, including intangible assets<sup>1</sup>, were €162.0 million </li> </ul> <p> </p>

Wednesday, February 29, 2012

Interxion Reports Q4 and Full Year 2011 Results07:00 EST Wednesday, February 29, 2012 AMSTERDAM (Business Wire) -- Interxion Holding NV (NYSE: INXN), a leading European provider of carrier-neutral collocation data centre services, announced its results today for the three months and year ended 31 December 2011. Interxion Chief Executive Officer, David Ruberg, stated, “In Interxion's first year as a public company, we continued our track record of strong performance by consistently executing on our business strategy, achieving continued organic growth across all key metrics while positioning the company for continued growth in 2012 and beyond. “Our fourth quarter and full year results demonstrate our focused execution, the strength of our business model, and the favourable secular trends in our industry. Despite economic uncertainty across the Eurozone in 2011, Interxion recorded 17% organic revenue growth and 23% adjusted EBITDA growth for the year, while accelerating our disciplined expansion program.” Annual Review Revenue for the full year 2011 was €244.3 million, a 17% increase over full year 2010. Recurring revenue for 2011 was €228.3 million, an 18% increase over 2010, and 93% of total revenue in 2011, the same as 2010. Net profit was €25.6 million in 2011, up 74% from 2010. Adjusted EBITDA for 2011 was €97.6 million, up 23% year over year. Adjusted EBITDA margin for full year 2011 expanded to 40.0% from 38.0% in 2010. Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €90.0 million compared to €85.3 million in 2010. Capital Expenditures, including intangible assets, were €162.0 million in 2011 compared to €100.4 million in 2010. During 2011, Interxion completed expansion projects in Dusseldorf, London, Vienna, and Dublin and added 1,800 square metres of equipped space. Revenue generating space grew by 3,400 square metres in 2011. The company also announced and commenced construction on expansion projects in Stockholm, Frankfurt, London, Paris, and Amsterdam representing over 12,000 square metres of equipped space, all of which are scheduled for completion in 2012. Quarterly Review Revenue for the fourth quarter of 2011 was €64.4 million, a 16% increase over the fourth quarter of 2010 and a 4% increase over the third quarter of 2011. Recurring revenue was €59.7 million, a 16% increase over the fourth quarter of 2010 and a 3% increase over the third quarter of 2011. Recurring revenue was 93% of total revenue. Cost of sales for the fourth quarter increased by 9% to €25.5 million compared to the fourth quarter 2010. Gross profit margin increased to 60.4% compared to 58.1% in the same quarter of 2010. Sales and marketing costs in the fourth quarter were €4.6 million, up 22% compared to the prior year quarter. General and administrative costs, excluding depreciation, amortisation, impairments, exceptional general and administrative costs, and share-based payments were €7.2 million, an increase of 5% compared to the prior year quarter. Depreciation, amortisation, and impairments decreased by 3% compared to the prior year quarter to €8.4 million. Net financing costs for the fourth quarter of 2011 were €5.0 million, compared to €6.1 million in the fourth quarter of 2010. Net profit was €10.6 million in the fourth quarter of 2011, up 12% from the fourth quarter of 2010. Adjusted EBITDA for the fourth quarter of 2011 was €27.1 million, up 27% year over year. Adjusted EBITDA margin expanded to 42.1% compared to 38.5% in the prior year quarter. Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was €22.6 million. Capital Expenditures, including intangible assets, were €68.5 million in the fourth quarter 2011 and included €19.1 million relating to the purchase of the land and buildings of our Paris 3 and Paris 5 data centres. Cash and equivalents and short term investments were €142.7 million at 31 December 2011, up from €99.1 million at year end 2010. Equipped space at the end of the fourth quarter 2011 was 62,800 square metres compared to 61,000 square metres at the end of fourth quarter 2010 and 62,200 square metres at the end of the third quarter 2011. Utilisation rate, the ratio of revenue-generating space to equipped space, was 75%, up from 72% in the fourth quarter 2010, and up from 74% in the third quarter 2011. Business Outlook The company today is providing guidance for full year 2012: Revenue     €275 million - €285 million Adjusted EBITDA €112 million - €120 million Capital Expenditures (including intangibles) €170 million - €190 million Conference Call to Discuss Results The company will host a conference call at 8:30 a.m. ET (1:30 pm GMT, 2:30 pm CET) today to discuss the results. To participate on this call, U.S. callers may dial toll free 1-866-966-9439; callers outside the U.S. may dial direct +44 (0) 1452 555 566. The conference ID for this call is 49634657. This event also will be webcast live over the Internet in listen-only mode at investors.interxion.com. A replay of this call will be available shortly after the call concludes and will be available until 6 March 2012. To access the replay, U.S. callers may dial toll free 1866 247 4222; callers outside the U.S. may dial direct +44 (0) 1452 55 00 00. The replay access number is 49634657#. Forward Looking Statements This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the difficulty of reducing operating expenses in the short term, inability to utilise the capacity of newly planned data centres and data centre expansions, significant competition, the cost and supply of electrical power, data centre industry over-capacity, performance under service level agreements and other risks described from time to time in Interxion's filings with the Securities and Exchange Commission. Interxion does not assume any obligation to update the forward-looking information contained in this press release. Adjusted EBITDA EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments and exceptional and non-recurring items, and to include share of profits (losses) of non-group companies. We present Adjusted EBITDA as additional information because we believe this measure is used by certain investors in their analysis and because it is used in the financial covenants in our €50 million revolving credit facility and €260 million 9.50% Senior Secured Notes due 2017. However, other companies may present Adjusted EBITDA differently than we do. Adjusted EBITDA is not a measure of financial performance under IFRS and should not be considered as a measure of liquidity or as an alternative to operating profit, net income or any other measure of performance derived in accordance with IFRS as an indicator of our operating performance. A reconciliation of Adjusted EBITDA to EBITDA and operating profit is provided in the Notes to Consolidated Income Statement: Group Metrics. Interxion does not provide forward-looking estimates of Operating Profit, Depreciation, amortization, and impairments, Share-based payments, or Exception items, which it uses to reconcile to Adjusted EBITDA. Therefore, the company is unable to provide reconciling information. Interxion intends to calculate Adjusted EBITDA in future periods consistent with how it is calculated for the periods presented within this press release. About Interxion Interxion (NYSE: INXN) is a leading provider of carrier-neutral collocation data centre services in Europe, serving a wide range of customers through 28 data centres in 11 European countries. Interxion's uniformly designed, energy-efficient data centres offer customers extensive security and uptime for their mission-critical applications. With connectivity provided by over 400 carriers and ISPs and 18 European Internet exchanges across its footprint, Interxion has created content and connectivity hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com. 1 Capital expenditures, including intangible assets, represent payments to acquire property, plant, and equipment and intangible assets, as recorded in the consolidated statement of cash flows as "Purchase of property, plant and equipment" and "Purchase of intangible assets" respectively.         INTERXION HOLDING NVCONSOLIDATED INCOME STATEMENTS (in €'000 - except per share data and where stated otherwise) (unaudited)     Three Months EndedYear Ended31-Dec 31-Dec 31-Dec 31-Dec 2011   2010   2011   2010     Revenue64,39055,555244,310208,379 Cost of sales (25,495 ) (23,287 ) (101,766 ) (91,154 ) Gross profit38,89532,268142,544117,225 Other income 146 132 487 425 Sales and marketing costs (4,643 ) (3,810 ) (17,680 ) (15,072 ) General and administrative costs (16,869 ) (16,175 ) (67,258 ) (55,892 ) Operating profit17,52912,41558,09346,686 Net finance expense (4,955 ) (6,123 ) (22,784 ) (29,444 ) Profit before taxation12,5746,29235,30917,242 Income tax expense (1,925 ) 3,222   (9,737 ) (2,560 ) Net profit10,649   9,514   25,572   14,682     Basic earnings per share: (€) (i)0.160.210.400.33Diluted earnings per share: (€) (i)0.160.200.390.31     Number of shares outstanding at the end of the period (shares in thousands) 66,129 44,354 66,129 44,354 Weighted average number of shares for Basic EPS (shares in thousands) 66,052 44,351 64,176 44,352 Weighted average number of shares for Diluted EPS (shares in thousands) 67,449 47,635 65,896 47,707       Capacity Metrics Equipped space (in sqm) 62,800 61,000 62,800 61,000 Revenue generating space (in sqm) 47,100 43,700 47,100 43,700 Utilisation rate 75 % 72 % 75 % 72 %   (i) Number of shares have been adjusted to take account of the 1 for 5 reverse stock split which took place on 2 February 2011.           INTERXION HOLDING NVNOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION (in €'000 - except where stated otherwise) (unaudited)     Three Months EndedYear Ended31-Dec 31-Dec 31-Dec 31-Dec 2011   2010   2011   2010   Consolidated   Recurring revenue 59,717 51,422 228,328 192,973 Non-recurring Revenue 4,673   4,133   15,982   15,406   Revenue64,390   55,555   244,310   208,379   Adjusted EBITDA27,101   21,380   97,637   79,203   Gross Margin60.4%58.1%58.3%56.3%Adjusted EBITDA Margin42.1%38.5%40.0%38.0%   Total assets 744,281 546,762 744,281 546,762 Total liabilities 413,720 391,493 413,720 391,493 Capital expenditures, including intangible assets (ii) (68,543 ) (19,732 ) (161,956 ) (100,394 )   France, Germany, Netherlands, and UK   Recurring revenue 36,184 30,502 136,460 114,689 Non-recurring Revenue 3,440   1,568   10,352   9,161   Revenue39,624   32,070   146,812   123,850   Adjusted EBITDA21,558   15,933   74,774   58,060   Gross Margin62.2%60.8%59.8%57.3%Adjusted EBITDA Margin54.4%49.7%50.9%46.9%   Total assets 412,160 279,735 412,160 279,735 Total liabilities 97,779 81,339 97,779 81,339 Capital expenditures, including intangible assets (ii) (60,230 ) (12,167 ) (122,880 ) (59,419 )   Rest of Europe   Recurring revenue 23,533 20,920 91,868 78,284 Non-recurring Revenue 1,233   2,565   5,630   6,245   Revenue24,766   23,485   97,498   84,529   Adjusted EBITDA13,253   12,118   50,676   43,010   Gross Margin62.7%60.3%61.4%60.4%Adjusted EBITDA Margin53.5%51.6%52.0%50.9%   Total assets 181,186 150,026 181,186 150,026 Total liabilities 40,774 35,335 40,774 35,335 Capital expenditures, including intangible assets (ii) (6,913 ) (6,644 ) (35,366 ) (35,709 )   Corporate and Other                 Adjusted EBITDA(7,710)(6,671)(27,813)(21,867)   Total assets 150,935 117,001 150,935 117,001 Total liabilities 275,167 274,819 275,167 274,819 Capital expenditures, including intangible assets (ii) (1,400 ) (921 ) (3,710 ) (5,266 )   (ii) Capital expenditures, including intangible assets, represent payments to acquire property, plant, and equipment and intangible assets, as recorded in the consolidated statement of cash flows as "Purchase of property, plant and equipment" and "Purchase of intangible assets" respectively.           INTERXION HOLDING NVNOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION (in €'000 - except where stated otherwise) (unaudited)     Three Months EndedYear Ended31-Dec 31-Dec 31-Dec 31-Dec 2011   2010   2011   2010   Reconciliation of adjusted EBITDA   Consolidated   Adjusted EBITDA27,101   21,380   97,637   79,203   Income from subleases on unused data center sites 146   132   487   425   Exceptional income146   132   487   425     (Increase)/decrease in provision for onerous lease contracts - 143 (18 ) (150 ) IPO transaction costs (iii) - - (1,725 ) - Share-based payments (1,347 ) (615 ) (2,736 ) (1,684 ) Exceptional general and administrative costs(1,347)(472)(4,479)(1,834)EBITDA25,900   21,040   93,645   77,794   Depreciation, amortization and impairments (8,371 ) (8,625 ) (35,552 ) (31,108 ) Operating profit17,529   12,415   58,093   46,686     France, Germany, Netherlands, and UK   Adjusted EBITDA21,558   15,933   74,774   58,060   Income from subleases on unused data center sites 146   132   487   425   Exceptional income146   132   487   425     (Increase)/decrease in provision for onerous lease contracts - 143 (18 ) (150 ) Share-based payments (368 ) (418 ) (368 ) (418 ) Exceptional general and administrative costs(368)(275)(386)(568)EBITDA21,336   15,790   74,875   57,917   Depreciation, amortization and impairments (5,272 ) (5,002 ) (21,289 ) (18,659 ) Operating profit16,064   10,788   53,586   39,258     Rest of Europe   Adjusted EBITDA13,253   12,118   50,676   43,010   Share-based payments (324 ) (233 ) (324 ) (233 ) Exceptional general and administrative costs(324)(233)(324)(233)EBITDA12,929   11,885   50,352   42,777   Depreciation, amortization and impairments (2,673 ) (3,141 ) (12,371 ) (10,972 ) Operating profit10,256   8,744   37,981   31,805     Corporate and Other   Adjusted EBITDA(7,710)(6,671)(27,813)(21,867) IPO transaction costs (iii) - - (1,725 ) - Share-based payments (655 ) 36   (2,044 ) (1,033 ) Exceptional general and administrative costs(655)36   (3,769)(1,033)EBITDA(8,365)(6,635)(31,582)(22,900) Depreciation, amortization and impairments (426 ) (482 ) (1,892 ) (1,477 ) Operating profit(8,791)(7,117)(33,474)(24,377)   (iii) The IPO transaction costs represent the write off of the proportion of the IPO costs allocated to selling shareholders at the Initial Public Offering.       INTERXION HOLDING NVCONSOLIDATED BALANCE SHEET (in €'000 - except where stated otherwise) (unaudited)     As at31-Dec 31-Dec 2011   2010   Non-current assets Property, plant and equipment 477,798 342,420 Intangible assets 12,542 6,005 Deferred tax assets 39,557 39,841 Other non-current assets 3,841   3,709   533,738391,975Current assets Trade and other current assets 67,874 55,672 Cash and cash equivalents 142,669   99,115   210,543   154,787   Total assets744,281   546,762     Shareholders' equity Share capital 6,613 4,434 Share premium 466,166 321,078 Foreign currency translation reserve 7,386 4,933 Accumulated deficit (149,604 ) (175,176 ) 330,561155,269Non-current liabilities Trade payables and other liabilities 10,294 7,795 Deferred tax liabilities 1,742 660 Provision for onerous lease contracts 10,618 13,260 Borrowings 257,267   257,403   279,921279,118Current liabilities Trade payables and other liabilities 127,639 106,038 Current tax liabilities 2,249 868 Provision for onerous lease contracts 3,108 3,073 Borrowings 803   2,396   133,799   112,375   Total liabilities413,720   391,493   Total liabilities and shareholders' equity744,281   546,762         INTERXION HOLDING NVNOTES TO THE CONSOLIDATED BALANCE SHEET: BORROWINGS (in €'000 - except where stated otherwise) (unaudited)     As at31-Dec 31-Dec 2011   2010     Borrowings net of cash and cash equivalents   Cash and cash equivalents (iv)142,669   99,115     9.5% Senior Secured Notes due 2017 (v) 255,560 254,924 Financial Leases 337 765 Other Borrowings 2,173   4,110   Borrowings excluding revolving credit facility deferred financing costs258,070   259,799   Revolving credit facility deferred financing costs (vi) (667 ) (1,283 ) Total Borrowings257,403   258,516           Borrowings net of cash and cash equivalents114,734   159,401     (iv) Cash and cash equivalents includes €4.8 million as of December 31, 2011 and €4.2 million as of December 31, 2010, which is restricted and held as collateral to support the issuance of bank guarantees on behalf of a number of subsidiary companies.   (v) €260 million 9.5% Senior Secured Notes due 2017 include premium on additional issue and are shown after deducting underwriting discounts and commissions, offering fees and expenses.   (vi) We reported deferred financing costs of €0.7 million in connection with entering into our €50 million revolving credit facility which was undrawn at the end of the period.           INTERXION HOLDING NVCONSOLIDATED STATEMENT OF CASH FLOWS (in €'000 - except where stated otherwise) (unaudited)     Three Months EndedYear Ended31-Dec 31-Dec 31-Dec 31-Dec 2011   2010   2011   2010       Profit for the period 10,649 9,514 25,572 14,682 Depreciation, amortization and impairments 8,371 8,625 35,552 31,108 IPO transaction costs - - 1,725 - Provision for onerous lease contracts (822 ) (1,329 ) (3,125 ) (3,157 ) Share-based payments 1,347 615 2,736 1,684 Net finance expense 4,955 6,412 22,784 29,444 Income tax expense 1,925   (3,222 ) 9,737   2,560   26,425 20,615 94,981 76,321 Movements in trade and other current assets (8,947 ) 2,129 (16,942 ) 511 Movements in trade and other liabilities 5,096   4,265   12,009   8,476   Cash generated from operations22,57427,00990,04885,308 Interest paid (294 ) (802 ) (24,472 ) (9,980 ) Interest received 1,010 53 2,251 390 Income tax paid (2,240 ) (389 ) (3,784 ) (1,339 ) Net cash flows from operating activities21,05025,87164,04374,379Cash flow from investing activities Purchase of property, plant and equipment (65,432 ) (19,058 ) (154,559 ) (98,171 ) Disposals of property, plant and equipment - 230 945 230 Purchase of intangible assets (3,111 ) (674 ) (7,397 ) (2,223 ) Proceeds /(acquisition) short-term investments 40,000   -   -   -   Net cash flows from investing activities(28,543)(19,502)(161,011)(100,164)Cash flow from financing activities Proceeds from exercised options 452 6 3,474 6 Proceeds from issuance new shares - - 142,952 - Repayment of 'Liquidation Price' to former preferred shareholders - - (3,055 ) - Proceeds/(repayment) bank facilities - - - (159,046 ) Proceeds from Senior Secured Notes and RCF - 63,446 (645 ) 254,276 Other Borrowings (131 ) (1,312 ) (2,396 ) (2,488 ) Net cash flows from financing activities32162,140140,33092,748 Effect of exchange rate changes on cash 302   14   192   149   Net movement in cash and cash equivalents(6,870)68,52343,55467,112 Cash and cash equivalents, beginning of period 149,539   30,592   99,115   32,003   Cash and cash equivalents, end of period142,669   99,115   142,669   99,115             INTERXION HOLDING NVAnnounced Expansion Projects 2011     MarketProjectCAPEX (a, b)Equipped Space (a)Target Completion         (€ million)   (Sqm)       Düsseldorf DUS 1 : Phase 2 Power Expansion € 7 500 (c) 2Q 2011 (completed) London LON 1 : Phase 9 Expansion € 7 525 2Q 2011 (completed) Vienna VIE 1 : Phase 3 Expansion € 5 600 (d) 3Q 2011 (completed) Dublin DUB 2 : Phase 3 Expansion € 8 640 4Q 2011 (completed) Stockholm STO 1: Phase 4 Expansion € 5 500 1Q 2012 (completed) Frankfurt FRA 7: New Build € 21 1,550 1Q 2012 London LON 2: New Build € 38 1,700 2Q 2012 Paris PAR 7 : Phase 1 New Build € 70 4,500 2Q 2012 Amsterdam AMS 6: New Build € 60 4,000 4Q 2012 Total€ 22114,515   (a) CAPEX and Equipped Space are approximate and may change after project completion.(b) CAPEX reflects the total for the listed project and may not be all invested in the current year.(c) Previously included in equipped space(d) Announced as a 2 phase project with 1300 sqm and €12 million capex   Interxion Holding NVInvestor Relations:Jim Huseby, +1 813-644-9399IR@interxion.com