logo     Print Page | Close Window

SEC Filings

10-Q
EQUINIX INC filed this Form 10-Q on 05/03/2019
Entire Document
 

the amortization of deferred financing costs and debt discounts and premiums as these expenses relate to the initial costs incurred in connection with debt financings that have no current or future cash obligations. We exclude gain (loss) on debt extinguishment since it generally represents the write-off of initial costs incurred in connection with debt financings or a cost that is incurred to reduce future interest costs and is not a good indicator of our current or future operating performance. We include an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes that do not relate to current period's operations. We deduct recurring capital expenditures, which represent expenditures to extend the useful life of its IBX data centers or other assets that are required to support current revenues. We also exclude net income (loss) from discontinued operations, net of tax, which represents results that may not recur and are not a good indicator of our current future operating performance.
Our FFO and AFFO for the three months ended March 31, 2019, and 2018 were as follows (in thousands):
 
Three Months Ended
March 31,
 
2019
 
2018
Net income
$
117,747

 
$
62,894

Net loss attributable to non-controlling interests
331

 

Net income attributable to Equinix
118,078

 
62,894

Adjustments:
 
 
 
Real estate depreciation
205,649

 
222,855

Loss on disposition of real estate property
2,346

 
5,006

FFO attributable to common shareholders
$
326,073

 
$
290,755

 
 
 
 
 
Three Months Ended
March 31,
 
2019
 
2018
FFO attributable to common shareholders
$
326,073

 
$
290,755

Adjustments:
 
 
 
Installation revenue adjustment
1,029

 
2,159

Straight-line rent expense adjustment
2,378

 
2,301

Contract cost adjustment
(6,778
)
 
(3,355
)
Amortization of deferred financing costs and debt discounts and premiums
2,995

 
4,099

Stock-based compensation expense
49,023

 
42,536

Non-real estate depreciation expense
57,994

 
34,097

Amortization expense
49,535

 
50,616

Accretion expense (adjustment)
1,527

 
(1,103
)
Recurring capital expenditures
(20,947
)
 
(35,231
)
Loss on debt extinguishment
382

 
21,491

Acquisition costs
2,471

 
4,639

Impairment charges
14,448

 

Income tax expense adjustment
7,990

 
1,572

AFFO attributable to common shareholders
$
488,120

 
$
414,576

Our AFFO results have improved due to the improved operating results discussed earlier in "Results of Operations," as well as due to the nature of our business model which consists of a recurring revenue stream and a cost structure which has a large base that is fixed in nature as discussed earlier in "Overview."
Constant Currency Presentation
Our revenues and certain operating expenses (cost of revenues, sales and marketing and general and administrative expenses) from our international operations have represented and will continue to represent a significant portion of our total revenues and certain operating expenses. As a result, our revenues and certain operating expenses have been and will continue to be affected by changes in the U.S. Dollar against major international currencies such as the Euro, British Pound, Japanese Yen, Singapore Dollar, Australian Dollar and Brazilian Real. In order to provide a framework for assessing how each of our business segments

42