Cogent reports Q309
Cogent Communications Reports Third Quarter 2009 Results
Press Release
Source: Cogent Communications Group, Inc.
On 7:00 am EST, Monday November 9, 2009
WASHINGTON, Nov. 9 –
Financial and Business Highlights
Service revenue for Q3 2009 of $60.2 million - an increase of 3.9% from $58.0 million for Q2 2009 and an increase of 10.3% from $54.6 million for Q3 2008
Foreign exchange positively impacts revenue growth from Q2 2009 to Q3 2009 by $0.9 million and negatively impacts revenue growth from Q3 2008 to Q3 2009 by $0.9 million
Traffic growth of over 15% from Q2 2009 to Q3 2009
EBITDA, as adjusted, of $17.0 million for Q3 2009 an increase of 2.0% from $16.7 million for Q2 2009 and an increase of 20.1% from $14.2 million for Q3 2008
Operating income for Q3 2009 of $0.5 million
Approximately 21,000 customer connections on the Cogent network
1,421 on-net buildings on the Cogent network
Cogent Communications Group, Inc. (Nasdaq: CCOI - News) today announced service revenue of $60.2 million for the three months ended September 30, 2009, an increase of 3.9% over $58.0 million for the three months ended June 30, 2009 and an increase of 10.3% over $54.6 million for the three months ended September 30, 2008.
On-net revenue was $48.1 million for the three months ended September 30, 2009, an increase of 3.4% over $46.5 million for the three months ended June 30, 2009 and an increase of 8.6% over $44.2 million for the three months ended September 30, 2008. On-net service is provided to customers located in buildings that are physically connected to Cogent’s network by Cogent facilities. Off-net revenue was $11.1 million for the three months ended September 30, 2009, an increase of 5.3% over $10.6 million for the three months ended June 30, 2009 and an increase of 23.7% over $9.0 million for the three months ended September 30, 2008.
Off-net customers are located in buildings directly connected to Cogent’s network using other carriers’ facilities and services to provide the last mile portion of the link from the customers’ premises to Cogent’s network. Non-core revenue was $1.1 million for the three months ended September 30, 2009, an increase of 7.8% over $1.0 million for the three months ended June 30, 2009 and a decrease of 22.4% from $1.4 million for the three months ended September 30, 2008. Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.
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Gross profit, excluding equity-based compensation expense, increased 1.1% to $33.9 million for the three months ended September 30, 2009 from $33.5 million for the three months ended June 30, 2009 and increased 10.9% from $30.5 million for the three months ended September 30, 2008. Gross profit margin, excluding equity-based compensation expense, was 56.2% for the three months ended September 30, 2009, 57.7% for the three months ended June 30, 2009, and 55.9% for the three months ended September 30, 2008.
Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased 2.0% to $17.0 million for the three months ended September 30, 2009 from $16.7 million for the three months ended June 30, 2009 and increased 20.1% from $14.2 million for the three months ended September 30, 2008. EBITDA, as adjusted, margin was 28.2% for the three months ended September 30, 2009, 28.7% for the three months ended June 30, 2009, and 25.9% for the three months ended September 30, 2008.
Basic and diluted net loss per share was $(0.07) for the three months ended September 30, 2009, $(0.10) for the three months ended June 30, 2009, and $(0.15) for the three months ended September 30, 2008. Weighted average common shares outstanding - basic and diluted - were 43.9 million for the three months ended September 30, 2009, 43.7 million for the three months ended June 30, 2009, and 43.6 million for the three months ended September 30, 2008.
Total customer connections increased 2.7% to 20,988 as of September 30, 2009 from 20,428 as of June 30, 2009 and increased 23.8% from 16,954 as of September 30, 2008. On-net customer connections increased 4.0% to 16,633 as of September 30, 2009 from 15,988 as of June 30, 2009 and increased 25.0% from 13,307 as of September 30, 2008. Off-net customer connections were 3,290 as of September 30, 2009, 3,291 as of June 30, 2009 and 2,996 as of September 30, 2008. Non-core customer connections decreased 7.3% from 1,149 as of June 30, 2009 to 1,065 as of September 30, 2009 and increased 63.6% from 651 as of September 30, 2008.
The number of on-net buildings increased by 32 on-net buildings to 1,421 on-net buildings as of September 30, 2009 from 1,389 on-net buildings as of June 30, 2009, and increased by 120 on-net buildings from 1,301 on-net buildings as of September 30, 2008.
Conference Call and Website Information
Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on November 9, 2009 to discuss Cogent’s operating results for the third quarter of 2009 and Cogent’s expectations for fiscal year 2009. Investors and other interested parties may access a live audio webcast of the earnings call under “Events” at the Investor Relations section of Cogent’s website at http://www.cogentco.com/us/ir_events.php. A replay of the webcast, together with the press release, will be available on the website following the earnings call.
About Cogent Communications
Cogent Communications (Nasdaq: CCOI - News) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed Internet access and point-to-point transport services. Cogent’s facilities-based, all-optical IP network backbone provides IP services in over 140 markets located in North America and Europe.
Cogent Communications is headquartered at 1015 31st Street, NW, Washington, D.C. 20007. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.
