Switch and Data Reports First Quarter 2007 Financial Results.* Reports 18% Increase in Revenues Over Same Quarter Prior Year * Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , a Non-GAAP Measure, Increases 18% Over First Quarter 2006 * 857 Customers: Excellent Quarter for New Customers and Key Customer Expansions including 121 Media, NTT NTT Nippon Telegraph and Telephone Corporation NTT New Technology Telescope NTT National Technology Transfer, Inc NTT Name That Tune (TV game show) NTT National Tree Trust NTT Number Theoretic Transform America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. and Time Warner Cable This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. TAMPA, Fla. -- Switch & Data Facilities Company, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SDXC SDXC Synchronous Digital Crossconnect ), a leading provider of network neutral interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. and colocation services, today reported financial results for the three months ended March 31, 2007. For the three months ended March 31, 2007 total revenue increased 18% to $31.5 million from $26.6 million in the comparable period in 2006. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue, which consists of colocation and interconnection services, was $29.8 million in first quarter 2007, an increase of 17% over the comparable period in 2006. The increase in recurring revenue was primarily due to the sale of services to new and existing customers. For the first quarter 2007, non-recurring revenue, representing one time installation fees and services, was $1.6 million, compared to $1.0 million in the prior year. Cost of revenues, excluding depreciation and amortization, for the three months ended March 31, 2007 was $16.5 million as compared to $14.5 million for the three months ended March 31, 2006. The increase in cost of revenues was primarily due to the expansion of the Company's facilities in several markets and increased demand for power. As a percent of revenue, cost of revenues in the first quarter of 2007 was 52%, an improvement from 54% in the same period of the prior year. For the three months ended March 31, 2007, sales and marketing costs were $3.8 million as compared to $3.1 million in the comparable quarter in 2006. The increase was due primarily to an increase in sales commissions due to revenue performance, wage expense due to increased headcount and stock based compensation expense. General and administrative expenses increased by $1.6 million for the three months ended March 31, 2007 to $3.9 million from $2.3 million for the three months ended March 31, 2006. The increase was due primarily to an increase in professional fees, stock compensation expense and costs related to being a public company. Stock based compensation expense recorded in general and administrative expense was $0.5 million in the first quarter of 2007. Total stock based compensation expense was $0.9 million in the first quarter of 2007. Depreciation and amortization was $6.2 million in first quarter 2007, up from $5.8 million in the same period of the prior year. The increase was attributable to expansion of the Company's facilities. Adjusted EBITDA, which is a non-GAAP measure, and which the Company defines as operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from operations, plus depreciation and amortization, stock-based compensation expense and other non-cash items such as deferred rent and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. , was $8.9 million in the first quarter of 2007 as compared to $7.5 million for the first three months of 2006. A reconciliation of adjusted EBITDA to operating income can be found at the end of this release. Results for first quarter 2007 included a $2.6 million lease litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement expense and a $2.8 million loss from debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. . Excluding the impact of the non-recurring items: * Income from operations would be $1.1, compared to $0.8 million in the same period in the prior year; * Net loss would be ($1.2) million as compared to a net loss of ($2.3) million in first quarter 2006. Loss per common share was affected by a $225.8 million deemed preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend recorded in connection with the corporate reorganization and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the on preferred stock. A reconciliation of net income excluding one-time items can be found at the end of this release. Balance Sheet and Cash Flow The Company had cash and cash equivalents of $42.0 million on March 31, 2007. Total debt outstanding on March 31, 2007 was $39.5 million down from $144.2 million as of December 31, 2006. Keith Olsen  This article or section resembles a .Please help [ improve this article] by removing excessive trivia, irrelevant praise and criticism, lists and collections of links that are of . , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President commented, "We had an excellent first quarter. The success of our first quarter results can be measured by our financial and operating results. We ended the quarter with strong operating metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. . We won bigger deals, added more new logos than in any quarter in 2006, experienced increased demand from our existing customers, as well as growth in our interconnection services." Mr. Olsen further added, "The macro drivers in the industry continue to scale, and Switch and Data benefits from this industry growth." Business Outlook Switch and Data is reiterating its guidance for 2007. The Company expects total revenue to be approximately $127 million, with $122 million from recurring revenue. Adjusted EBITDA is expected to be approximately $40 million. Adjusted EBITDA margins are projected to be approximately 32%. Capital expenditures for 2007 are estimated to be between $28 million and $30 million. Switch and Data does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, net income (loss) from operations, cash generated from operating activities and cash used in investing activities, and as a result, is not able to provide a reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to non-GAAP financial measures for forward-looking data. The Company intends to calculate the various non-GAAP financial measures in future periods consistent with the calculation method utilized for the three months ended March 31, 2007 as presented within this press release. A reconciliation between GAAP information and non-GAAP information contained in this press release can be found in the table immediately following the Consolidated Statements of Cash Flow as well as on the Company's website in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. Conference Call Info The Company will host a conference call to discuss first quarter 2007 results on Monday, May 14, 2007 at 4:30 p.m. ET. To listen to the conference call live, please dial 1-888-396-2386 or 1-617-847-8712 (international callers) and reference Passcode 25298771. The conference call will be webcast and can be accessed from the Company's website at www.switchanddata.com under the Investor Relations section. A replay of the conference call will be available for one week beginning at 6:30 p.m. ET on Monday, May 14, 2007 until May 21, 2007. The replay can be accessed by calling 1-888-286-8010 or 1-617-801-6888 (international) and reference Passcode 60041494. In addition, the webcast will be archived on the Company's website at www.switchanddata.com. About the Company Switch and Data is a leading provider of Internet exchange See IXP and NAP. and colocation services. Based in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. , Switch and Data operates one of the largest footprints of neutral Internet exchange and colocation facilities in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. serving more than 850 customers. Switch and Data's PAIX PAIX Palo Alto Internet Exchange (Palo Alto, CA peering facility) is recognized worldwide as the premier name in peering and Internet exchange services and is home to one of the largest commercial exchange points in North America. For more information, please visit http://www.switchanddata.com/. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements herein are "forward-looking statements". Such forward-looking statements are not historical facts but instead reflect Switch and Data's current expectations or beliefs concerning future events and results of operations, many of which, by their nature, are inherently uncertain and outside of Switch and Data's control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. The information set forth under the caption "Business Outlook" are forward-looking statements. Words such as expects, believes, estimates, anticipates and similar language indicate forward-looking statements. Further information concerning Switch and Data and its business, including factors that potentially could materially affect Switch and Data's financial results and conditions, as well as its other achievements, are contained in Switch and Data's filings with the Securities and Exchange Commission. Switch and Data does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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>
As of March 31,
>
2006
2007
>
Number of >
794
857
Number of cross >
16,602
18,194
Cabinet >
5,127
5,987
Utilization >
65%
67%
> > Three
> > March
> >
2006
2007
New Sales > >
Monthly Recurring > > $
658
$
896
Non-recurring > > $
809
$
1,617
TOTAL > > $
1,467
$
2,513
*Monthly recurring revenue represents new service agreements entered into by new and existing customers during the given quarter. Revenue from these agreements will recur monthly over the life of the agreement. **Non recurring revenue represents the one-time installation fees associated with new service agreements. These one-time fees are billed to customers upon completion of the installation service and such revenue is recognized on a straight-line basis over the life of the agreement. [TABLE OMITTED] Adjusted EBITDA Reconciliation The following is a reconciliation of the Company's operating income (loss) for the three month periods ended March 31, 2006 and March 31, 2007 to Adjusted EBITDA. Switch and Data uses Adjusted EBITDA: * As measurements of operating performance because they assist management in comparing the results on a consistent basis as they remove the impact of items not directly resulting from operations; * For planning purposes, including the preparation of its internal annual operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. ; * To establish targets for certain management compensation; and * To evaluate the Company's capacity to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and service debt, fund capital expenditures and expand the business. Adjusted EBITDA as calculated by the Company is not necessarily comparable to similarly titled measures used by other companies. In addition, Adjusted EBITDA: (a) does not represent net income or cash flows from operating activities as defined by GAAP; (b) is not necessarily indicative of cash available to fund the Company's cash flow needs; and (c) should not be considered as alternatives to net income, operating income, cash flows from operating activities or the Company's other financial information as determined under GAAP. The Company prepares Adjusted EBITDA by adjusting EBITDA to eliminate the impact of a number of items that it does not consider indicative of its core operating performance. Investors are encouraged to evaluate each adjustment and the reasons the Company considers them appropriate. As an analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, investors should be aware that in the future the Company may incur expenses similar to the adjustments in this presentation. Switch and Data's presentation of Adjusted EBITDA should not be construed as an implication that its future results will be unaffected by unusual or non-recurring items. [TABLE OMITTED] |
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