Equinix Closes Divestment to 365 Main, Reports Q3

Yesterday in a Sandy-delayed report, Equinix (NASDAQ:EQIX, news, filings) issued its third quarter financials while also closing its divestment of non-core datacenter assets to 365 Main.  The latter led to their reclassifying revenue from those assets as from discontinued operations, which confused things since analyst estimates were for the whole thing.  Further complicating matters was the addition of Asia Tone and ancotel, which analysts *were* factoring in.  But after hunting through the numbers, it seems clear that Equinix had its usual solid quarter, slightly beating estimates and its often conservative guidance.  Here’s a quick table, with only two quarters of context since we don’t have the restated numbers for continuing operations before that yet.

$ in millionsfor continuing operations	Q2/12	Q3/12	Q4/12 (derived guidance)	FY/12 (guidance)	FY/13 (guidance)
– Recurring	433.8	462.8
– Non-recurring	23.5	25.9
Revenues	457.2	488.7	501-506	1890-1895	>2200
Cash COS	142.0	158.0
Cash SG&A	97.8	102.4		410-415
Adjusted EBITDA	217.5	228.3	224-229	880-885	>1010
Earnings Per Share	0.73	0.58
Ongoing Capex	37.5	37.6		145	165
Expansion Capex	158.9	174.5		625-645	385-485

Revenues from all operations were $497.5M, slightly above expectations, with $8.8M of that being from the discontinued operations sold to 365Main.  Earnings per share of $0.60 likewise included $0.02 from discontinued operations, thus also slightly above estimates.

Equinix also provided a first look at its 2013 guidance, projecting revenues of more than $2.2B and EBITDA of $1.01B.  They expect $20M in expenses as part of the REIT conversion process, which has several years left to run of course.  Interestingly, capital expenditures are expected to back off somewhat next year.

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Categories: Datacenter · Financials