Cyxtera Technologies Inc.

09/20/2021 | Press release | Distributed by Public on 09/20/2021 05:45

Earnings Document

Disclaimer

Disclaimer

This presentation contains certain supplemental financial and performance data for Cyxtera Technologies, Inc. (the "Company"). The financial and performance information and data contained in this presentation is unaudited. Further, the financial information for quarterly periods in 2019 was extrapolated from combined financial statements including the financial results of the Company and its former cybersecurity subsidiaries which were spun-out on December 31, 2019. Such quarterly financial information represents the Company's good faith estimates of the financial performance of the Company on a standalone basis and is being presented to provide investors additional information as to the historical quarterly financial performance of the Company. The Company cautions investors not to unduly rely on such information. This presentation includes Transaction Adjusted EBITDA, which is a supplemental measure that is not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). Cyxtera defines Transaction Adjusted EBITDA as net income (loss) from continuing operations before the following items: depreciation and amortization, interest and other expenses, income tax (benefit) expense, equity-based compensation, straight line rent adjustment, amortization of favorable / unfavorable leasehold interest & asset retirement obligation accretion, stand-up separation & other, restructuring costs & other, and impairment on note and other receivables from affiliate. As a non-GAAP financial measure, Transaction Adjusted EBITDA excludes items that are significant in understanding and assessing the Company's financial results or position. Therefore, this measure should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. Investors should be aware that the Company's presentation of this measure may not be comparable to similarly titled measures used by other companies. Investors should review the Company's audited financial statements filed with the United States Securities and Exchange Commission and not rely on any single financial measure to evaluate the Company's business. Due to the estimated nature of the 2019 quarterly financial information and difficulty in estimating the excluded information, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for such quarterly periods without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of non-GAAP financial measures is included with respect to quarterly periods in 2019.

P&L and KPI

Condensed Consolidated Statements of Operations and Key Performance Indicators (Unaudited)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2019 2020 YTD Q2 2021
P&L ($ in Millions)
Revenues $175.7 $166.6 $163.1 $173.2 $172.5 $173.2 $172.0 $172.7 $172.9 $175.4 $678.6 $690.5 $348.3
Cost of revenues, excluding depreciation and amortization $103.0 $101.5 $96.4 $104.9 $95.9 $94.1 $97.3 $103.2 $98.4 $95.5 $405.8 $390.5 $193.9
As a % of Total Revenue 58.6% 60.9% 59.1% 60.6% 55.6% 54.3% 56.6% 59.7% 56.9% 59.8% 56.6% 55.7%
Gross profit $72.7 $65.1 $66.7 $68.3 $76.6 $79.1 $74.7 $69.5 $74.5 $79.9 $272.8 $300.0 $154.4
Margin % 41.4% 39.1% 40.9% 39.4% 44.4% 45.7% 43.4% 40.3% 43.1% 40.2% 43.4% 44.3%
Selling, general and administrative expenses $33.8 $39.4 $33.7 $39.6 $31.1 $25.8 $24.5 $34.1 $27.6 $22.9 $146.5 $115.5 $50.5
As a % of Total Revenue 19.2% 23.6% 20.7% 22.9% 18.0% 14.9% 14.2% 19.7% $0.2 21.6% 16.7% 14.5%
Restructuring, impairment, site closures and related costs - - - - - - - - $8.1 $58.9 - - $67.0
(Recovery) impairment on notes receivable from affiliate - - - $127.7 $6.7 $2.1 $9.4 ($115.9) - - $127.7 ($97.7) -
Depreciation and amortization $59.2 $53.3 $54.3 $53.0 $57.0 $57.9 $57.5 $59.4 $60.6 $60.5 $219.8 $231.8 $121.1
Loss on asset sales - ($1.0) - $7.1 - - - - - - $6.1 - -
Total operating costs and expenses $196.0 $193.2 $184.4 $332.3 $190.7 $179.9 $188.7 $80.8 $194.7 $237.8 $905.9 $640.1 $432.5
Income (loss) from continuing operations ($18.1) ($6.7) ($16.7) $92.0 ($21.8) ($62.4) ($227.3) $50.4 ($84.2)
Interest expense, net ($43.3) ($42.1) ($42.3) ($41.7) ($43.2) ($43.1) ($152.7) ($169.4) ($86.3)
Other expenses, net ($0.3) ($0.4) ($1.5) $1.9 ($0.5) ($0.4) ($0.9) ($0.3) ($0.9)
Total interest and other expenses, net ($43.6) ($42.5) ($43.8) ($39.8) ($43.7) ($43.5) ($153.6) ($169.7) ($87.2)
Loss from continuing operations before income taxes ($61.7) ($49.2) ($60.6) $52.2 ($65.5) ($105.9) ($380.9) ($119.3) ($171.4)
Income tax benefit (expense) $14.4 ($6.3) $14.6 ($26.2) $12.9 $12.9 $85.9 ($3.5) $25.8
Net loss from continuing operations ($47.3) ($55.5) ($46.0) $26.0 ($52.6) ($93.0) ($295.0) ($122.8) ($145.6)
Net loss from discontinued operations, net of tax - - - - - - ($219.2) - -
Net loss ($47.3) ($55.5) ($46.0) $26.0 ($52.6) ($93.0) ($514.2) ($122.8) ($145.6)
1000 KPI
PUE 1.51 1.55 1.61
Michael Morales: Michael Morales: Mark Hamilton: "Related to seasonal impact of temperature." 		1.52 1.50 1.56 1.58 1.55 1.53
Stabilized Markets Total Sellable SQFT, ('000) (1) 1,859 1,867 1,869 1,826 1,821 1,832 1,855 1,826 1,832
Stabilized Markets Available SF ('000) (1) 596 598 616 601 596 578 604 601 578
Stabilized Markets Sold SQFT, ('000) (1) 1,263 1,270 1,253 1,226 1,225 1,253 1,251 1,226 1,253
Stabilized Markets Occupancy Rate % (1) 67.9% 68.0% 67.0% 67.1% 67.3% 68.4% 67.4% 67.1% 68.4%
Core Exit MRR ($ in Millions) (2) $45.4 $45.6 $46.1 $47.5 $47.7 $48.0 $45.7 $47.5 $48.0
Total Exit MRR ($ in Millions) $53.4 $52.9 $52.7 $52.9 $52.6 $52.9 $53.5 $52.9 $52.9
Annualized Core Bookings ($ in Millions) (2) $19.2 $20.0 $20.3 $21.0 $27.1 $30.9 $56.6 $80.5 $58.0
MRR per Cab ($ in Thousands) (3) $1,317 $1,339 $1,333 $1,396 $1,448 $1,421 $1,327 $1,396 $1,421
Mthly Core Churn as % of Avg Core MRR (2) 0.8% 1.0% 0.9% 1.2% 1.0% 0.9% 1.1% 1.0% 0.9%
LTM Mthly Core Churn (% of BoP LTM MRR) 0.93% 1.01% 0.98% 0.97% 1.03% 1.00% 0.97% 1.02%
# Inter Connects 33,178 32,721 32,970 38,227 38,902 40,253 40,210 33,178 38,902 40,210
# of customers 2,115 2,078 2,057 2,097 2,064 2,045 2,010 2,115 2,064 2,010
Footnotes:
(1) Stabilized Markets are markets that have been in operation for more than 3 years or have an occupancy rate greater than 50%.
(2) Core results exclude Lumen.
(3) For purposes of this calculation, Revenue consists of all recurring revenue and all variable revenue and excludes certain large-scale customers with concentrated data center deployments.
Numbers may not foot or cross-foot due to rounding.

Occupancy by Mkt

Occupancy by Market
2019 2020 2020 2020 2020 2021 2021
December March June September December March June
Markets Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate % Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate % Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate % Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate % Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate % Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate % Total Sellable (Sq. Ft) Available to Sell (Sq.Ft.) Sold (Sq.Ft) Occupancy Rate %
Albuquerque 12,759 4,875 7,884 61.8% 12,759 4,833 7,926 62.1% 12,773 5,644 7,128 55.8% 12,773 5,658 7,114 55.7% 12,773 7,160 5,613 43.9% 12,773 7,146 5,627 44.1% 12,370 7,199 5,171 41.8%
Atlanta 44,030 21,356 22,674 51.5% 44,030 21,356 22,674 51.5% 43,967 21,519 22,448 51.1% 44,088 21,889 22,199 50.4% 44,191 21,404 22,787 51.6% 44,261 21,752 22,509 50.9% 44,260 21,755 22,504 50.8%
Boston 56,676 13,868 42,809 75.5% 56,590 6,847 49,742 87.9% 56,237 4,683 51,554 91.7% 50,099 4,946 45,152 90.1% 50,204 4,524 45,680 91.0% 50,252 4,579 45,673 90.9% 50,231 4,434 45,798 91.2%
Chicago 174,182 36,747 137,436 78.9% 186,869 32,908 153,961 82.4% 186,669 40,628 146,041 78.2% 186,676 44,106 142,569 76.4% 186,527 45,381 141,146 75.7% 186,671 51,181 135,490 72.6% 186,800 51,198 135,601 72.6%
Colmbs 19,054 5,029 14,024 73.6% 19,338 5,445 13,894 71.8% 19,344 5,417 13,927 72.0% 19,344 7,350 11,994 62.0% 19,343 7,813 11,530 59.6% 19,335 7,917 11,418 59.1% 19,461 7,795 11,666 59.9%
Dallas 112,988 64,660 48,328 42.8% 113,349 64,912 48,437 42.7% 113,357 64,455 48,902 43.1% 119,309 69,988 49,321 41.3% 119,388 70,704 48,684 40.8% 119,383 70,901 48,481 40.6% 119,252 70,898 48,353 40.5%
Denver 63,911 16,606 47,305 74.0% 63,911 18,771 45,140 70.6% 63,925 19,814 44,111 69.0% 63,925 20,334 43,591 68.2% 63,937 23,133 40,804 63.8% 63,901 23,243 40,658 63.6% 63,901 23,132 40,769 63.8%
Frankfurt 10,706 5,867 4,630 43.2% 10,497 5,418 5,080 48.4% 10,498 5,404 5,094 48.5% 10,498 5,509 4,989 47.5% 10,226 5,290 4,936 48.3% 10,226 5,290 4,936 48.3% 10,226 5,304 4,922 48.1%
London 135,748 36,665 99,083 73.0% 135,666 15,356 120,309 88.7% 135,873 14,788 121,084 89.1% 136,398 17,072 119,326 87.5% 131,247 22,639 108,608 82.8% 130,992 27,540 103,453 79.0% 127,233 24,464 102,769 80.8%
Los Angeles 128,860 50,665 78,195 60.7% 127,661 54,132 73,529 57.6% 127,689 50,179 77,510 60.7% 128,880 52,681 76,198 59.1% 128,905 52,832 76,073 59.0% 128,635 52,646 75,989 59.1% 128,415 52,437 75,979 59.2%
Minneapolis 16,861 3,568 13,293 78.8% 16,898 3,542 13,356 79.0% 16,912 3,714 13,198 78.0% 16,993 3,898 13,096 77.1% 16,941 3,796 13,145 77.6% 17,291 1,394 15,896 91.9% 17,421 406 17,015 97.7%
Montreal 4,847 585 4,262 87.9% 4,832 613 4,218 87.3% 4,832 599 4,232 87.6% 4,831 2,556 2,275 47.1% 3,993 1,606 2,387 59.8% 3,993 1,606 2,387 59.8% 3,993 1,578 2,415 60.5%
Moses Lake 29,029 15,214 13,815 47.6% 29,029 23,331 5,698 19.6% 29,029 23,331 5,698 19.6% 29,029 23,331 5,698 19.6%
N. Virginia 216,798 36,138 180,660 83.3% 216,985 56,814 160,170 73.8% 216,682 69,208 147,474 68.1% 214,687 70,506 144,181 67.2% 214,667 73,656 141,010 65.7% 214,667 73,711 140,956 65.7% 214,603 74,358 140,246 65.4%
New Jersey 275,253 135,831 139,422 50.7% 275,826 138,418 137,408 49.8% 275,933 128,197 147,735 53.5% 276,202 127,913 148,290 53.7% 275,829 127,417 148,412 53.8% 269,668 125,595 144,073 53.4% 272,675 115,275 157,400 57.7%
Phoenix 63,286 22,994 40,292 63.7% 63,292 23,162 40,130 63.4% 63,292 23,678 39,614 62.6% 64,923 23,228 41,695 64.2% 64,452 23,043 41,409 64.2% 64,452 22,959 41,493 64.4% 64,428 22,171 42,257 65.6%
Seattle 106,638 38,529 68,109 63.9% 106,681 38,082 68,599 64.3% 107,938 40,597 67,341 62.4% 107,654 39,354 68,301 63.4% 105,947 35,333 70,615 66.7% 106,316 37,709 68,606 64.5% 106,590 38,996 67,594 63.4%
Silicon Valley 248,113 55,178 192,935 77.8% 250,183 53,963 196,220 78.4% 250,191 52,578 197,614 79.0% 250,303 52,274 198,028 79.1% 247,667 51,389 196,278 79.3% 246,445 36,098 210,346 85.4% 245,664 35,972 209,692 85.4%
Singpre 48,759 20,918 27,841 57.1% 39,639 6,223 33,416 84.3% 47,020 700 46,320 98.5% 46,896 700 46,196 98.5% 46,347 518 45,829 98.9% 46,428 1,136 45,291 97.6% 46,791 1,904 44,886 95.9%
St. Louis 929 - 0 929 100.0%
Tampa 19,248 4,017 15,231 79.1% 19,194 3,990 15,204 79.2% 19,222 4,289 14,933 77.7% 19,222 4,275 14,947 77.8% 19,208 4,387 14,821 77.2% 19,208 4,289 14,919 77.7% 19,208 4,255 14,953 77.8%
Tokyo 5,363 770 4,593 85.6% 5,363 770 4,593 85.6% 5,363 798 4,565 85.1% 5,363 798 4,565 85.1% 5,363 826 4,537 84.6% 5,363 770 4,593 85.6% 5,363 805 4,558 85.0%
Toronto 54,969 13,126 41,843 76.1% 54,571 16,650 37,921 69.5% 54,572 17,087 37,485 68.7% 54,559 16,833 37,725 69.1% 53,021 16,768 36,253 68.4% 54,420 17,540 36,880 67.8% 66,655 13,154 53,500 80.3%
Vancouver 6,024 739 5,285 87.7% 6,024 795 5,229 86.8% 6,024 529 5,495 91.2% 6,024 529 5,495 91.2% 6,024 1,051 4,973 82.6% 5,934 627 5,307 89.4% 5,972 706 5,267 88.2%
Stable Markets 1,855,032 603,945 1,250,877 67.4% 1,859,185 596,331 1,262,854 67.9% 1,867,340 597,836 1,269,504 68.0% 1,868,676 615,730 1,252,946 67.0% 1,826,199 600,669 1,225,530 67.1% 1,820,611 595,629 1,224,982 67.3% 1,831,511 578,196 1,253,315 68.4%
Netherlands - 0 - 0 - 0 12,338 11,653 685 5.6% 12,334 11,607 727 5.9% 12,334 11,607 727 5.9% 12,314 11,663 651 5.3% 12,314 11,663 651 5.3% 12,297 11,632 665 5.4%
Total Markets 1,855,032 603,945 1,250,877 67.4% 1,871,524 607,984 1,263,540 67.5% 1,879,674 609,442 1,270,232 67.6% 1,881,010 627,337 1,253,673 66.6% 1,838,513 612,332 1,226,181 66.7% 1,832,925 607,292 1,225,633 66.9% 1,843,808 589,829 1,253,980 68.0%
Footnotes:
Numbers may not foot or cross-foot due to rounding.

Non-GAAP Reconciliations

Non-GAAP Reconciliations (Unaudited)
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2019 2020 YTD Q2 2021
Reconciliation of GAAP to Non-GAAP Results:
Net loss from continuing operations (47.3) (55.5) (46.0) 26.0 (52.6) (93.0) (295.0) (122.8) (145.6)
Depreciation and amortization 57.0 57.9 57.5 59.4 60.6 60.5 219.8 231.8 121.1
Total interest and other expenses, net 43.6 42.5 43.8 39.8 43.7 43.5 153.6 169.7 87.2
Income tax (benefit) expense (14.4) 6.3 (14.6) 26.2 (12.9) (12.9) (85.9) 3.5 (25.8)
EBITDA $38.9 $51.2 $40.8 $151.4 $38.9 ($1.9) ($7.5) $282.2 $36.9
1000000 Transaction Adjustments
Equity-based compensation $2.0 $1.9 $1.8 $1.7 $1.8 $1.8 $15.7 $7.4 $3.6
Straight-line rent adjustment $0.8 $0.8 $0.7 $0.7 $1.1 $0.7 $6.5 $2.9 $1.9
Amortization of Favorable / Unfavorable Leasehold Interest. & ARO accretion $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $4.6 $3.5 $1.7
Stand-up, separation & other $2.8 $0.9 $1.0 $6.4 $3.1 $0.3 $46.2 $11.1 $3.5
Restructuring costs & other $2.6 $1.4 ($0.1) $2.1 $10.3 $60.6 - $6.0 $70.9
Impairment of note and other receivables from affiliate $6.7 $2.1 $9.4 ($115.9) - - $127.7 ($97.7) -
Total Adjustments $15.8 $8.0 $13.8 ($104.2) $17.2 $64.3 $200.7 ($66.7) $81.5
Transaction Adjusted EBITDA $54.7 $59.1 $54.6 $47.2 $56.1 $62.3 $193.2 $215.6 $118.4
Footnotes:
Numbers may not foot or cross-foot due to rounding.