This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cbeyond Reports First Quarter 2012 Results

Cbeyond, Inc. (NASDAQ: CBEY), (“Cbeyond”), a managed services provider delivering integrated packages of IT infrastructure and communications services to small and medium sized businesses, including network services, virtual and dedicated servers and cloud PBX, today announced its results for the first quarter ended March 31, 2012, including the highest quarterly adjusted EBITDA and free cash flow in its history.

Recent financial and operating highlights include:

  • First quarter 2012 total revenue of $123.8 million, up 4.1% over the first quarter of 2011;
  • Adjusted EBITDA of $23.0 million in the first quarter of 2012 compared with $19.4 million in the first quarter of 2011, and $22.6 million in the fourth quarter of 2011 (see page 10 for reconciliation to net income);
  • Free cash flow (defined as adjusted EBITDA less cash capital expenditures) of $8.1 million in the first quarter of 2012, compared with ($1.4) million in the first quarter of 2011;
  • Net loss of ($1.2) million in the first quarter of 2012, compared with a net loss of ($0.1) million in the first quarter of 2011, which includes $2.3 million of realignment costs;
  • Executed construction contracts with Zayo and FiberLight and placed orders for dark fiber network assets to connect more than 700 buildings;
  • Redeployed sales and support resources to focus on Cbeyond 2.0 opportunity;
  • Average monthly revenue per Core Managed Services customer location (ARPU) of $642 during the first quarter of 2012, compared with $646 in the fourth quarter of 2011 and $668 in the first quarter of 2011; and,
  • Reiterated annual guidance for 2012 of $485 million to $490 million of revenue, $85 million to $90 million of adjusted EBITDA, $55 million to $60 million of cash capital expenditures, and $25 million to $35 million of free cash flow.

Financial Overview and Key Operating Metrics

Financial and operating metrics, which include non-GAAP financial measures, for the three months ended March 31, 2012, include:

       
For the Three Months Ended March 31,
2011 2012 Change % Change
Selected Financial Data (dollars in thousands)
Revenue $ 118,978 $ 123,843 $ 4,865 4.1 %
Operating expenses $ 120,511 $ 125,168 $ 4,657 3.9 %
Operating income (loss) $ (1,533 ) $ (1,325 ) $ 208 13.6 %
Net income (loss) $ (141 ) $ (1,194 ) $ (1,053 ) N/M
Capital expenditures (total) $ 20,962 $ 17,236 $ (3,726 ) (17.8 %)
 
Key Operating Metrics and Non-GAAP Financial Measures
Customers (Core Managed Services) at end of period 58,554 62,465 3,911 6.7 %
Net customer additions (Core Managed Services) 1,582 296 (1,286 ) (81.3 %)
Average monthly churn rate (Core Managed Services) 1.3 % 1.5 % 0.2 % 15.4 %
Average monthly revenue per Core Managed Services customer $ 668 $ 642 $ (26 ) (3.9 %)
Adjusted EBITDA (in thousands) $ 19,386 $ 22,974 $ 3,588 18.5 %
Cash capital expenditures $ 20,778 $ 14,836 $ (5,942 ) (28.6 %)
 

Management Comments

“We are pleased with our progress in the 'Cbeyond 2.0’ business transition that we outlined on our February 16, 2012, earnings call. In fact, the first quarter of 2012 showed our highest level of quarterly adjusted EBITDA and free cash flow in our history, as we re-focused a substantial portion of our sales force to address our Cbeyond 2.0 initiative,” said Jim Geiger, chief executive officer of Cbeyond, Inc. “Our early Cbeyond 2.0 efforts have been rewarded as our sequential ARPU decline was the lowest it has been in the previous 12 quarters. We are confident that we are taking the necessary steps to drive ARPU higher in future periods, as we target accounts with more complex business needs.”

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,919.46 -56.85 -0.32%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs