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Equinix Reports First Quarter 2011 Results
  • Reported revenues of $363.0 million, a 5% increase over the previous quarter and a 46% increase over the same quarter last year
  • Reported adjusted EBITDA of $167.3 million, a 12% increase over the previous quarter and a 43% increase over the same quarter last year
  • Increased 2011 annual revenue guidance to greater than $1,525.0 million and increased 2011 adjusted EBITDA guidance to greater than $685.0 million
  • Sets target to exceed $2.0 billion in annual revenues in 2013

REDWOOD CITY, Calif., Apr 27, 2011 (BUSINESS WIRE) -- Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today reported quarterly results for the quarter ended March 31, 2011.

Revenues were $363.0 million for the first quarter, a 5% increase over the previous quarter and a 46% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services were $343.9 million for the first quarter, a 5% increase over the previous quarter and a 45% increase over the same quarter last year. Non-recurring revenues were $19.1 million in the quarter.

"We are extremely pleased with our first quarter results and are well positioned to achieve our 2011 financial objectives. Whether it's cloud computing or mobile and video traffic, Internet growth is propelling demand for Platform Equinix," said Steve Smith, president and CEO of Equinix. "Due to this momentum, we are increasing our expansion investments to provide the capacity required to support greater than $2 billion in revenues, which we expect to achieve in 2013. We have a great opportunity for disciplined investment to meet our customers' need for network-dense, global data center capacity while generating strong returns for our shareholders."

Cost of revenues were $194.6 million for the first quarter, a 1% increase over the previous quarter and a 46% increase over the same quarter last year. Cost of revenues, excluding depreciation, amortization, accretion and stock-based compensation of $72.0 million, were $122.6 million for the first quarter, a 2% decrease from the previous quarter and a 44% increase over the same quarter last year. Cash gross margins, defined as gross profit before depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 66%, up from 64% for the previous quarter and unchanged from the same quarter last year.

Selling, general and administrative expenses were $96.2 million for the first quarter, essentially flat over the previous quarter and a 54% increase over the same quarter last year. Selling, general and administrative expenses, excluding depreciation, amortization and stock-based compensation of $23.1 million, were $73.1 million for the first quarter, a 3% increase over the previous quarter and a 58% increase over the same quarter last year.

Restructuring charges were $0.5 million for the first quarter and the previous quarter, which were primarily related to Switch and Data. Acquisition costs were $0.4 million for the first quarter and the previous quarter.

Interest expense was $37.4 million for the first quarter, a 4% decrease from the previous quarter and a 46% increase over the same quarter last year. The Company recorded income tax expense of $11.1 million for the first quarter as compared to an income tax benefit of $2.8 million in the prior quarter and income tax expense of $8.7 million in the same quarter last year.

Net income for the first quarter was $25.1 million. This represents a basic net income per share of $0.54 and diluted net income per share of $0.53 based on a weighted average share count of 46.5 million and 47.2 million, respectively, for the first quarter of 2011.

Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation, restructuring charges and acquisition costs for the first quarter, was $167.3 million, an increase of 12% over the previous quarter and a 43% increase over the same quarter last year.

Capital expenditures, defined as gross capital expenditures less the net change in accrued property, plant and equipment in the first quarter, were $172.5 million, of which $139.8 million was attributed to expansion capital expenditures and $32.7 million was attributed to ongoing capital expenditures. In addition, the Company purchased a building in Paris for cash in March 2011 totaling $15.0 million.

The Company generated cash from operating activities of $115.2 million for the first quarter as compared to $122.9 million in the previous quarter and $99.8 million for the same quarter last year. Cash used in investing activities was $283.8 million in the first quarter as compared to cash provided by investing activities of $17.5 million in the previous quarter and cash used in investing activities of $31.6 million for the same quarter last year. Cash provided by financing activities was $26.1 million for the first quarter, which was primarily related to the proceeds from employee equity awards and draw downs of certain loans payable.

As of March 31, 2011, the Company's cash, cash equivalents and investments were $456.7 million, as compared to $592.8 million as of December 31, 2010.

Company Metricsand Q1 Results Presentation

  • A presentation to accompany Equinix's Q1 Results conference call, as well as the Company's Non-Financial Metrics tracking sheet, have been posted on the Investors section of Equinix's web site at http://www.equinix.com.

    Business Outlook

For the second quarter of 2011, the Company expects revenues to be in the range of $376.0 to $378.0 million. Cash gross margins are expected to be approximately 65%. Cash selling, general and administrative expenses are expected to be approximately $76.0 million. Adjusted EBITDA is expected to be between $166.0 and $170.0 million. Capital expenditures are expected to be in the range of $220.0 and $240.0 million, comprised of approximately $40.0 million of ongoing capital expenditures and between $180.0 and $200.0 million of expansion capital expenditures. The anticipated results of ALOG are not included in the Company's business outlook at this time.

For the full year of 2011, total revenues are expected to be greater than $1,525.0 million. Total year cash gross margins are expected to range between 65% and 66%. Cash selling, general and administrative expenses are expected to approximate $315.0 million. Adjusted EBITDA for the year is expected to be greater than $685.0 million. Capital expenditures for 2011 are expected to be in the range of $615.0 to $665.0 million, comprised of approximately $115.0 million of ongoing capital expenditures and $500.0 to $550.0 million for expansion capital expenditures. The anticipated results of ALOG are not included in the Company's business outlook at this time.

The Company will discuss its results and guidance on its quarterly conference call on Wednesday, April 27, 2011, at 5:30 p.m. ET (2:30 p.m. PT). A presentation to accompany the call will be available on the Company's website at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.equinix.com%2Finvestors&esheet=6698891&lan=en-US&anchor=www.equinix.com%2Finvestors&index=2&md5=03d260915032e4270916dd8d41d70437. To hear the conference call live, please dial 210-234-8004 (domestic and international) and reference the passcode (EQIX). A simultaneous live Webcast of the call will also be available at http://www.equinix.com.

A replay of the call will be available beginning on Wednesday, April 27, 2011, at 7:30 p.m. (ET) through May 28, 2011, by dialing 402-998-1022. In addition, the webcast will be available on the company's web site at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.equinix.com%2Finvestors&esheet=6698891&lan=en-US&anchor=www.equinix.com%2Finvestors&index=4&md5=7afe502783cd70281dfacbecf4146a30 over the same time period. No password is required for the replay or the webcast.

About Equinix

Equinix, Inc. (Nasdaq:EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. More than 3,350 enterprises, cloud, digital content and financial companies connect to more than 650 network service providers and rely on Platform Equinix to grow their business, improve application performance and protect their vital digital assets. Equinix operates in 37 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix uses non-GAAP financial measures, such as adjusted EBITDA, cash cost of revenues, cash gross margins, cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A), adjusted EBITDA margins, free cash flow and adjusted free cash flow to evaluate its operations. In presenting these non-GAAP financial measures, Equinix excludes certain items that it believes are not good indicators of the Company's current or future operating performance. These items are depreciation, amortization, accretion of asset retirement obligations and accrued restructuring charges, stock-based compensation, restructuring charges and acquisition costs. Legislative and regulatory requirements encourage use of and emphasis on GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. Equinix excludes these items in order for Equinix's lenders, investors, and industry analysts who review and report on the Company, to better evaluate the Company's operating performance and cash spending levels relative to its industry sector and competitors.

Equinix excludes depreciation expense as these charges primarily relate to the initial construction costs of our IBX centers and do not reflect our current or future cash spending levels to support our business. Our IBX centers are long-lived assets, and have an economic life greater than 10 years. The construction costs of our IBX centers do not recur and future capital expenditures remain minor relative to our initial investment. This is a trend we expect to continue. In addition, depreciation is also based on the estimated useful lives of our IBX centers. These estimates could vary from actual performance of the asset, are based on historic costs incurred to build out our IBX centers, and are not indicative of current or expected future capital expenditures. Therefore, Equinix excludes depreciation from its operating results when evaluating its operations.

In addition, in presenting the non-GAAP financial measures, Equinix excludes amortization expense related to certain intangible assets, as it represents a cost that may not recur and is not a good indicator of the Company's current or future operating performance. Equinix excludes accretion expense, both as it relates to its asset retirement obligations as well as its accrued restructuring charges, as these expenses represent costs which Equinix believes are not meaningful in evaluating the Company's current operations. Equinix excludes non-cash stock-based compensation expense as it represents expense attributed to equity awards that have no current or future cash obligations. As such, we, and many investors and analysts, exclude this stock-based compensation expense when assessing the cash generating performance of our operations. Equinix excludes restructuring charges from its non-GAAP financial measures. The restructuring charges relate to the Company's decision to exit leases for excess space adjacent to several of our IBX centers, which we did not intend to build out, or our decision to reverse such restructuring charges or severance charges related to the Switch and Data acquisition. Equinix excludes acquisition costs from its non-GAAP financial measures. The acquisition costs relate to costs the Company incurs in connection with business combinations. Management believes such items as restructuring charges and acquisition costs are non-core transactions; however, these types of costs will or may occur in future periods.

Our management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. However, we have presented such non-GAAP financial measures to provide investors with an additional tool to evaluate our operating results in a manner that focuses on what management believes to be our core, ongoing business operations. Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports and provides a better understanding of the overall performance of the business and its ability to perform in subsequent periods. Equinix believes that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze Equinix effectively.

Investors should note, however, that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. In addition, whenever Equinix uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation, 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 to non-GAAP financial measures for forward-looking data. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how it was calculated for the periods presented within this press release.

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 challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

Equinix and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.

EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31, December 31, March 31,
2011 2010 2010
Recurring revenues $ 343,909 $ 326,338 $ 237,236
Non-recurring revenues 19,120 18,906 11,413
Revenues 363,029 345,244 248,649
Cost of revenues 194,576 193,559 133,050
Gross profit 168,453 151,685 115,599
Operating expenses:
Sales and marketing 33,636 31,518 19,468
General and administrative 62,601 64,820 43,155
Restructuring charges 496 491 -
Acquisition costs 415 380 4,994
Total operating expenses 97,148 97,209 67,617
Income from operations 71,305 54,476 47,982
Interest and other income (expense):
Interest income 215 208 506
Interest expense (37,361 ) (38,822 ) (25,675 )
Other-than-temporary impairment recovery on investments - - 3,420
Loss on debt extinguishment and interest rate swaps, net - (5,356 ) (3,377 )
Other income 2,111 497 20
Total interest and other, net (35,035 ) (43,473 ) (25,106 )
Income before income taxes 36,270 11,003 22,876
Income tax benefit (expense) (11,125 ) 2,757 (8,677 )
Net income $ 25,145 $ 13,760 $ 14,199
Net income per share:
Basic net income per share $ 0.54 $ 0.30 $ 0.36
Diluted net income per share $ 0.53 $ 0.29 $ 0.35
Shares used in computing basic net
income per share 46,451 46,059 39,562
Shares used in computing diluted net
income per share 47,219 46,871 40,791
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION
(in thousands)
(unaudited)
Three Months Ended
March 31, December 31, March 31,
2011 2010 2010
Recurring revenues $ 343,909 $ 326,338 $ 237,236
Non-recurring revenues 19,120 18,906 11,413
Revenues (1) 363,029 345,244 248,649
Cash cost of revenues (2) 122,631 125,456 85,084
Cash gross profit (3) 240,398 219,788 163,565
Cash operating expenses (4):
Cash sales and marketing expenses (5) 27,104 25,523 15,185
Cash general and administrative expenses (6) 46,018 45,318 31,108
Total cash operating expenses (7) 73,122 70,841 46,293
Adjusted EBITDA (8) $ 167,276 $ 148,947 $ 117,272
Cash gross margins (9) 66 % 64 % 66 %
Adjusted EBITDA margins (10) 46 % 43 % 47 %
Adjusted EBITDA flow-through rate (11) 103 % 17 % 92 %
(1) The geographic split of our revenues on a services basis is presented below:
Americas Revenues:
Colocation $ 176,196 $ 166,477 $ 118,932
Interconnection 45,922 44,443 23,764
Managed infrastructure 767 779 539
Rental 504 642 182
Recurring revenues 223,389 212,341 143,417
Non-recurring revenues 9,138 8,307 5,139
Revenues 232,527 220,648 148,556
EMEA Revenues:
Colocation 68,200 64,439 54,442
Interconnection 2,812 2,607 1,939
Managed infrastructure 3,198 3,002 2,901
Rental 118 134 163
Recurring revenues 74,328 70,182 59,445
Non-recurring revenues 7,711 8,569 4,719
Revenues 82,039 78,751 64,164
Asia-Pacific Revenues:
Colocation 36,339 34,546 26,985
Interconnection 5,341 4,948 3,529
Managed infrastructure 4,512 4,321 3,860
Recurring revenues 46,192 43,815 34,374
Non-recurring revenues 2,271 2,030 1,555
Revenues 48,463 45,845 35,929
Worldwide Revenues:
Colocation 280,735 265,462 200,359
Interconnection 54,075 51,998 29,232
Managed infrastructure 8,477 8,102 7,300
Rental 622 776 345
Recurring revenues 343,909 326,338 237,236
Non-recurring revenues 19,120 18,906 11,413
Revenues $ 363,029 $ 345,244 $ 248,649
(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues $ 194,576 $ 193,559 $ 133,050
Depreciation, amortization and accretion expense (70,600 ) (66,978 ) (46,372 )
Stock-based compensation expense (1,345 ) (1,125 ) (1,594 )
Cash cost of revenues $ 122,631 $ 125,456 $ 85,084
The geographic split of our cash cost of revenues is presented below:
Americas cash cost of revenues $ 70,210 $ 72,651 $ 44,148
EMEA cash cost of revenues 34,491 34,808 28,536
Asia-Pacific cash cost of revenues 17,930 17,997 12,400
Cash cost of revenues $ 122,631 $ 125,456 $ 85,084
(3) We define cash gross profit as revenues less cash cost of revenues (as defined above).
(4)

We define cash operating expenses as operating expenses less depreciation, amortization, stock-based compensation, restructuring charges and acquisition costs. We also refer to cash operating expenses as cash selling, general and administrative expenses or "cash SG&A".

(5)

We define cash sales and marketing expenses as sales and marketing expenses less depreciation, amortization and stock-based compensation as presented below:

Sales and marketing expenses $ 33,636 $ 31,518 $ 19,468
Depreciation and amortization expense (3,666 ) (3,645 ) (1,352 )
Stock-based compensation expense (2,866 ) (2,350 ) (2,931 )
Cash sales and marketing expenses $ 27,104 $ 25,523 $ 15,185
(6)

We define cash general and administrative expenses as general and administrative expenses less depreciation, amortization and stock-based compensation as presented below:

General and administrative expenses $ 62,601 $ 64,820 $ 43,155
Depreciation and amortization expense (5,259 ) (5,508 ) (1,598 )
Stock-based compensation expense (11,324 ) (13,994 ) (10,449 )
Cash general and administrative expenses $ 46,018 $ 45,318 $ 31,108
(7) Our cash operating expenses, or cash SG&A, as defined above, is presented below:
Cash sales and marketing expenses $ 27,104 $ 25,523 $ 15,185
Cash general and administrative expenses 46,018 45,318 31,108
Cash SG&A $ 73,122 $ 70,841 $ 46,293
The geographic split of our cash operating expenses, or cash SG&A, is presented below:
Americas cash SG&A $ 48,812 $ 45,469 $ 30,626
EMEA cash SG&A 16,936 16,212 10,673
Asia-Pacific cash SG&A 7,374 9,160 4,994
Cash SG&A $ 73,122 $ 70,841 $ 46,293
(8)

We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges and acquisition costs as presented below:

Income from operations $ 71,305 $ 54,476 $ 47,982
Depreciation, amortization and accretion expense 79,525 76,131 49,322
Stock-based compensation expense 15,535 17,469 14,974
Restructuring charges 496 491 -
Acquisition costs 415 380 4,994
Adjusted EBITDA $ 167,276 $ 148,947 $ 117,272
The geographic split of our adjusted EBITDA is presented below:
Americas income from operations $ 47,319 $ 37,067 $ 29,601
Americas depreciation, amortization and accretion expense 53,482 51,448 28,174
Americas stock-based compensation expense 11,842 13,620 11,013
Americas restructuring charges 496 491 -
Americas acquisition costs 366 (98 ) 4,994
Americas adjusted EBITDA 113,505 102,528 73,782
EMEA income from operations 11,471 8,678 8,321
EMEA depreciation, amortization and accretion expense 16,844 16,539 14,484
EMEA stock-based compensation expense 2,295 2,214 2,150
EMEA acquisition costs 2 300 -
EMEA adjusted EBITDA 30,612 27,731 24,955
Asia-Pacific income from operations 12,515 8,731 10,060
Asia-Pacific depreciation, amortization and accretion expense 9,199 8,144 6,664
Asia-Pacific stock-based compensation expense 1,398 1,635 1,811
Asia-Pacific acquisition costs 47 178 -
Asia-Pacific adjusted EBITDA 23,159 18,688 18,535
Adjusted EBITDA $ 167,276 $ 148,947 $ 117,272

(9)

We define cash gross margins as cash gross profit divided by revenues.
Our cash gross margins by geographic region is presented below:
Americas cash gross margins 70 % 67 % 70 %
EMEA cash gross margins 58 % 56 % 56 %
Asia-Pacific cash gross margins 63 % 61 % 65 %

(10)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.
Americas adjusted EBITDA margins 49 % 46 % 50 %
EMEA adjusted EBITDA margins 37 % 35 % 39 %
Asia-Pacific adjusted EBITDA margins 48 % 41 % 52 %
(11)

We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:

Adjusted EBITDA - current period $ 167,276 $ 148,947 $ 117,272
Less adjusted EBITDA - prior period (148,947 ) (146,461 ) (111,660 )
Adjusted EBITDA growth $ 18,329 $ 2,486 $ 5,612
Revenues - current period $ 363,029 $ 345,244 $ 248,649
Less revenues - prior period (345,244 ) (330,347 ) (242,552 )
Revenue growth $ 17,785 $ 14,897 $ 6,097
Adjusted EBITDA flow-through rate 103 % 17 % 92 %
EQUINIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
Assets March 31, December 31,
2011 2010
Cash and cash equivalents $ 304,466 $ 442,841
Short-term investments 150,040 147,192
Accounts receivable, net 114,207 116,358
Other current assets 126,277 71,657
Total current assets 694,990 778,048
Long-term investments 2,145 2,806
Property, plant and equipment, net 2,881,126 2,650,953
Goodwill 789,876 774,365
Intangible assets, net 148,874 150,945
Other assets 135,502 90,892
Total assets $ 4,652,513 $ 4,448,009
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 133,536 $ 145,854
Accrued property and equipment 125,579 91,667
Current portion of capital lease and other financing obligations 8,381 7,988
Current portion of loans payable 20,204 19,978
Other current liabilities 55,574 52,628
Total current liabilities 343,274 318,115
Capital lease and other financing obligations, less current portion 296,913 253,945
Loans payable, less current portion 126,617 100,337
Senior notes 750,000 750,000
Convertible debt 922,325 916,337
Other liabilities 225,987 228,760
Total liabilities 2,665,116 2,567,494
Common stock 47 46
Additional paid-in capital 2,372,660 2,341,586
Accumulated other comprehensive loss (61,356 ) (112,018 )
Accumulated deficit (323,954 ) (349,099 )
Total stockholders' equity 1,987,397 1,880,515
Total liabilities and stockholders' equity $ 4,652,513 $ 4,448,009
Ending headcount by geographic region is as follows:
Americas headcount 1,169 1,156
EMEA headcount 498 482
Asia-Pacific headcount 297 283
Total headcount 1,964 1,921
EQUINIX, INC.
SUMMARY OF DEBT OUTSTANDING
(in thousands)
(unaudited)
March 31, December 31,
2011 2010
Capital lease and other financing obligations $ 305,294 $ 261,933
Paris IBX financing 12,101 -
New Asia-Pacific financing 134,720 120,315
Total loans payable 146,821 120,315
Senior notes 750,000 750,000
Convertible debt, net of debt discount 922,325 916,337
Plus debt discount 97,411 103,399
Total convertible debt principal 1,019,736 1,019,736
Total debt outstanding $ 2,221,851 $ 2,151,984
EQUINIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31, December 31, March 31,
2011 2010 2010
Cash flows from operating activities:
Net income $ 25,145 $ 13,760 $ 14,199
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, amortization and accretion 79,525 76,131 49,322
Stock-based compensation 15,535 17,469 14,974
Debt issuance costs and debt discount 7,284 8,512 5,554
Loss on debt extinguishment and interest rate swaps - 5,356 3,377
Restructuring charges 496 491 -
Other reconciling items 1,563 1,888 434
Changes in operating assets and liabilities:
Accounts receivable 3,099 (1,400 ) (6,086 )
Deferred tax assets, net 5,640 (1,611 ) 5,002
Accounts payable and accrued expenses (13,606 ) 14,316 15,886
Other assets and liabilities (9,510 ) (12,021 ) (2,850 )
Net cash provided by operating activities 115,171 122,891 99,812
Cash flows from investing activities:
Purchases, sales and maturities of investments, net (2,185 ) 176,172 112,285
Purchase of Amsterdam IBX property - (14,861 ) -
Purchase of Paris IBX property (14,951 ) - -
Purchases of property and equipment (172,516 ) (143,351 ) (143,400 )
Other investing activities (94,138 ) (422 ) (442 )
Net cash provided by (used in) investing activities (283,790 ) 17,538 (31,557 )
Cash flows from financing activities:
Proceeds from employee equity awards 15,668 3,638 10,883
Proceeds from loans payable 22,653 5,770 -
Proceeds from senior notes - - 750,000
Repayment of capital lease and other financing obligations (1,968 ) (2,019 ) (1,554 )
Repayment of mortgage and loans payable (10,102 ) (88,930 ) (114,340 )
Debt issuance costs (125 ) - (15,193 )
Debt extinguishment costs - (4,448 ) -
Net cash provided by (used in) financing activities 26,126 (85,989 ) 629,796
Effect of foreign currency exchange rates on cash and cash equivalents 4,118 (748 ) (4,805 )
Net increase (decrease) in cash and cash equivalents (138,375 ) 53,692 693,246
Cash and cash equivalents at beginning of period 442,841 389,149 346,056
Cash and cash equivalents at end of period $ 304,466 $ 442,841 $ 1,039,302
Free cash flow (1) $ (166,434 ) $ (35,743 ) $ (44,030 )
Adjusted free cash flow (2) $ (151,483 ) $ (20,882 ) $ (44,030 )
(1) We define free cash flow as net cash provided by operating activities plus net cash provided by (used in) investing activities (excluding the net purchases, sales and maturities of investments) as presented below:
Net cash provided by operating activities as presented above $ 115,171 $ 122,891 $ 99,812
Net cash provided by (used in) investing activities as presented above (283,790 ) 17,538 (31,557 )
Purchases, sales and maturities of investments, net 2,185 (176,172 ) (112,285 )
Free cash flow (negative free cash flow) $ (166,434 ) $ (35,743 ) $ (44,030 )
(2)

We define adjusted free cash flow as free cash flow (as defined above) excluding any purchases or sales of real estate and acquisitions as presented below:

Free cash flow (as defined above) $ (166,434 ) $ (35,743 ) $ (44,030 )
Less purchase of Amsterdam IBX property - 14,861 -
Less purchase of Paris IBX property 14,951 - -
Adjusted free cash flow (negative adjusted free cash flow) $ (151,483 ) $ (20,882 ) $ (44,030 )

SOURCE: Equinix, Inc.

Equinix Investor Relations Contacts:
Equinix, Inc.
Katrina Rymill, (650) 598-6583
krymill@equinix.com
Jason Starr, (650) 598-6020
jstarr@equinix.com
or
Equinix Media Contact:
LEWIS PR
Scott Blevins, (415) 992-4400
equinixlewisus@equinix.com