Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CyrusOne Inc. | d533674d8k.htm |
| EX-99.1 - EX-99.1 - CyrusOne Inc. | d533674dex991.htm |
 First Quarter
2013 Financial Results May 8, 2013
Exhibit 99.2 |
 This
presentation contains forward-looking statements regarding future events and our future results that are subject to the “safe
harbor”
provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than
statements of historical facts, are statements that could be deemed forward-looking
statements. These statements are based on current expectations, estimates, forecasts,
and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as
“expects,”
“anticipates,”
“predicts,”
“projects,”
“intends,”
“plans,”
“believes,”
“seeks,”
“estimates,”
“continues,”
“endeavors,”
“strives,”
“may,”
variations of such words and similar expressions are intended to identify such
forward-looking statements. In addition, any statements that refer to projections
of our future financial performance, our anticipated growth and trends in our businesses, and other
characterizations of future events or circumstances are forward-looking statements.
Readers are cautioned these forward-looking statements are based on current
expectations and assumptions that are subject to risks and uncertainties, which could cause our actual
results to differ materially and adversely from those reflected in the forward-looking
statements. Factors that could cause or contribute to such differences include, but are
not limited to, those discussed in this release and those discussed in other documents we file with
the Securities and Exchange Commission (SEC). More information on potential risks and
uncertainties is available in our recent filings with the SEC, including
CyrusOne’s Form 10-K and Form 8-Ks. Actual results may differ materially and adversely from those expressed in
any forward-looking statements. We undertake no obligation to revise or update any
forward-looking statements for any reason.
2 |
 Highlights
•
Revenue of $60M an increase of 15% from Q1 2012
•
Signed leases for 31,000 CSF
(1)
in Q1 2013, compared to 15,000 CSF
(1)
in Q1 2012
•
Normalized FFO and AFFO increased 15% and 45% respectively from Q1 2012
•
Launch of CyrusOne Texas Internet Exchange (IX)
•
Purchased
an
additional
33
acres
of
land
adjacent
to
the
Houston
West
data
center
First Quarter 2013
3
Note:
1.
Colocation square feet (CSF) represents NRSF currently leased or available for lease as
colocation space, where customers locate their servers and other IT equipment.
Net rentable square feet (NRSF) represent the total square feet of a building currently leased
or available for lease based on engineers’ drawings and estimates but does not include space held for
development or space used by CyrusOne.
•
Acquired two previously leased data centers and under contract to acquire
a third leased data center
Pro forma for these acquisitions, owned facilities accounted for
70% of Q1 2013
NOI and 76% of CSF
(1)
as of March 31, 2013 |
 •
76% of annualized rent
(1)
is from the Fortune 1000
(2)
•
56% of annualized rent
(1)
is from investment grade companies
(2)
•
9 of the Fortune 20 are customers and a total of 119 Fortune
1000
(2)
customers
•
Niche in large and growing energy vertical
-
5 of the 6 “Supermajor”
oil and gas companies
-
Need for data sharing = powerful network effects
Revenue Diversity with a Geographic Niche …
Other
Healthcare
IT
Full Service
Customers
Metered Power
Customers
% of Annualized Rent
(1)
…
And Equal Mix of Metered Power and Full Service
% of Annualized Rent
(1)
0.5%
1.8%
1.5%
0.6%
0.4%
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
Consistently Low Churn
Recurring Rent Quarterly Churn
(3)
4
Highlights
Telecommunications
Financial Services
Industrial
Energy
9%
8%
1. Annualized Rent represents monthly contractual rent (defined as cash rent including metered power reimbursements) under
existing customer leases as of March 31, 2013, multiplied by 12.
2. Customer’s ultimate parent is a Fortune 1000 company or a foreign or private company of equivalent size.
3. Recurring Rent Quarterly Churn is defined as any reduction in recurring rent due to customer terminations, service reductions
or net pricing decreases as a percentage of annualized rent
at the beginning of the quarter, excluding any impact from metered power
reimbursements.
Notes: |
 Portfolio
Update 14% increase in capacity provides inventory for growth
Powered
shell
of
820,000
NRSF
(1)
available
for
incremental
development
across all markets in addition to existing inventory and 170 acres of land
held for development
5
As of March 31, 2013
As of March 31, 2012
Market
CSF
Capacity
(1)
(Sq Ft)
% Utilized
(2)
CSF
Capacity
(1)
(Sq Ft)
% Utilized
(2)
Cincinnati
395,815
92%
438,830
91%
Dallas
171,100
76%
123,734
84%
Houston
188,602
94%
157,263
99%
Austin
57,078
35%
57,078
30%
Phoenix
36,222
37%
-
0%
San Antonio
35,765
62%
-
0%
Chicago
23,278
49%
23,278
59%
International
13,200
70%
8,200
23%
Total Footprint
921,060
81%
808,383
85%
Notes
1.
Colocation square feet (CSF) represents NRSF currently leased or available for lease as
colocation space, where customers locate their servers and other IT equipment.
Net rentable square feet (NRSF) represent the total square feet of a building currently leased
or available for lease based on engineers’ drawings and estimates but does not
include space held for development or space used by CyrusOne. 2.
Utilization is calculated by dividing CSF under signed leases for available space (whether or not the contract has commenced billing) by total CSF.
Utilization
(2)
Highlights
•
14% increase in available CSF capacity
(1)
•
Total capacity (CSF)
(1)
expanded 21%
excluding decommissioned space at
West Seventh Street
•
Utilization
(2)
improved from December 31, 2012
to 81%
•
South Ellis Street (Phoenix) is 37% utilized and
has only been open for 3 months
•
Houston is 94% utilized; additional capacity of
42,000 CSF
(1)
added in a new building at
Houston West in April 2013
•
Doubled capacity in Kestral Way (London) in
Q1 2013 by adding 5,000 CSF
(1)
, pre-leased to
one customer in Q4 2012 |
 Houston
West 6 |
 CyrusOne
Interconnection Enhancing Asset Value and Tenant Loyalty With Connectivity
Interconnection benefits current customers and drives new customers from underserved
markets 7
•
Enterprise IT groups today are stretched -
explosion of big data, applications, and new
technology
•
Demands include highly-reliable data centers and
access to efficient global connectivity
•
CyrusOne Texas IX enables customers to mix and
match data centers AND get robust, low-latency
interconnectivity
•
Interconnection between all metro-enabled sites
within the CyrusOne facility footprint and beyond
•
Customers get reduced service costs, improved
speed, and incredible scalability
•
High margin revenue |
 First Quarter
Review |
 Revenue
First Quarter
9
0.5%
1.8%
1.5%
0.6%
0.4%
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
Consistently Low Churn
Recurring Rent Quarterly Churn
(1)
Lowest churn in past 5 quarters
($MM)
Highlights
•
Revenue growth of 15% for the first quarter of 2013 was driven by:
•
Expansion of customer base to 554 customers, an increase of 66 from Q1 2012
•
Annualized
rent
(2)
increased
17%
from
Q1
2012
•
Existing customers drove 69% of growth
•
Leased 31,000 CSF
(3)
in the quarter as compared to 15,000 CSF
(3)
in Q1 2012
•
Leased
square
footage
increased
8%
from
Q1
2012
or
16%
excluding
the
decommissioned
West
Seventh Street facility
•
72% of the CSF
(3)
was leased to metered power customers
•
Weighted average lease term of 71 months
Notes:
1.
Recurring Rent Quarterly Churn is defined as any reduction in recurring rent due to customer
terminations, service reductions or net pricing decreases as a percentage of annualized rent at
the beginning of the quarter, excluding any impact from metered power reimbursements.
2.
Annualized Rent represents monthly contractual rent (defined as cash rent including metered
power reimbursements) under existing customer leases as of March 31, 2013, multiplied by 12.
3.
Colocation square feet (CSF) represents NRSF currently leased or available for lease as
colocation space, where customers locate their servers and other IT equipment. Net rentable square
feet (NRSF) represent the total square feet of a building currently leased or available for
lease based on engineers’ drawings and estimates but does not include space held for development
or space used by CyrusOne. |
 Profitability
Metrics ($MM)
Three Months Ended
March 31,
2013
2012
$ Change
% Change
Net Operating Income (NOI)
$40.0
$34.8
$5.2
15%
Adjusted EBITDA
$31.5
$28.3
$3.2
11%
Normalized Funds from
Operations (FFO)
$17.2
$14.9
$2.3
15%
Adjusted Funds from
Operations (AFFO)
$17.5
$12.1
$5.4
45%
Highlights:
10
NOI growth of 15% and strong NOI margin of 67%
Adjusted EBITDA growth of 11%, impacted by additional investment in sales and
marketing to support growth and an increase in general and administrative expenses
Normalized FFO and AFFO increased 15% and 45%, respectively, from Q1 2012 from Adjusted
EBITDA growth, lower leasing commissions and lower recurring capital expenditures |
 Capital
Expenditures First Quarter
11
•
NRSF
(1)
as of Q1 2013 = 1,709,470
•
NRSF
(1)
as of Q1 2012 = 1,482,054
May 2013 Update
•
Annualized Rent
(3)
for March 2013 of $18.7
million for these facilities
•
NOI from owned facilities improves from 62%
for Q1 2013 to pro forma 70% giving effect to
the acquisitions
Highlights
•
Acquired 33 acres of land adjacent to Houston West
facility for $18.2 million
•
New Houston West facility commissioned in April 2013
with 42,000 CSF
(2)
in first data hall
•
Power upgrade projects in Houston, San Antonio, and
Lewisville
•
Completion of office space in Phoenix Purchased Industrial
Road (Florence) and Springer Street (Lombard) facilities for $16.0 million and under
contract to acquire Metropolis Drive (Austin 2)
($MM)
Recurring Capex
Notes:
1. Net rentable square feet (NRSF) represent the total square feet of a building
currently leased or available for lease based on engineers’ drawings and estimates but does not include space
held for development or space used by CyrusOne.
2. Colocation square feet (CSF) represents NRSF currently leased or available for lease
as colocation space, where customers locate their servers and other IT equipment.
3. Annualized Rent represents monthly contractual rent (defined as cash rent including
metered power reimbursements) under existing customer leases as of March 31, 2013, multiplied by 12. |
 Net Debt and
Dividends March 31, 2013
Long term debt
$525.0
Capital lease obligations
31.0
Less:
Cash and cash equivalents
(328.6)
Net debt
$227.4
Liquidity
$553.6
12
($MM)
•
No significant debt maturities until 2022
•
Net leverage of 1.8x
(1)
CyrusOne Inc. paid its first dividend of $0.16 per share and share equivalent on
April 15, 2013
Notes:
1.
Calculated as net debt as of March 31, 2013 divided by Adjusted EBITDA for the last quarter
annualized. |
 Guidance
Category
2013 Guidance
Revenue
$260 -
$270
Adjusted EBITDA
$133 -
$137
Normalized FFO per diluted common share or
common share equivalent
(1)
$1.15 -
$1.25
Capital Expenditures
Development
$170 -
$180
Recurring
$5 -
$10
Acquisition of leased facilities
$20 -
$35
Acquisition of land for future development
$20 -
$25
13
Category
CyrusOne is introducing the following guidance for the full year
2013:
($MM) except per share amounts
Notes:
1.
Calculated as if all diluted common shares and common share equivalents were issued and
outstanding on January 1, 2013. The annual guidance provided
above represents forward-looking projections, which are based on current economic conditions, internal
assumptions about our existing customer base and the supply and demand dynamics of the markets
in which CyrusOne operates. Further, the guidance does not include the impact of any
future financing, investment or disposition activities. |
 See Earnings
Release Supplement at www.cyrusone.com for reconciliations of
Non-GAAP financial measures |
 www.cyrusone.com |