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Cbeyond Reports First Quarter 2013 Results

Stocks in this article: CBEY

ATLANTA, May 1, 2013 (GLOBE NEWSWIRE) -- Cbeyond, Inc. (Nasdaq:CBEY), ("Cbeyond"), the technology ally for small and mid-sized businesses, today announced its results for the first quarter ended March 31, 2013.

Recent financial and operating highlights include:

  • First quarter 2013 total revenue of $119.9 million compared with $123.8 million in the first quarter of 2012 and $118.9 million in the fourth quarter of 2012;
  • Adjusted EBITDA of $20.8 million in the first quarter of 2013 compared with $23.0 million in the first quarter of 2012 and $18.8 million in the fourth quarter of 2012 (see reconciliation tables for reconciliation to net income);
  • Free cash flow (defined as adjusted EBITDA less cash capital expenditures) of $8.4 million in the first quarter of 2013 compared with $8.1 million in the first quarter of 2012 and $4.3 million in the fourth quarter of 2012;
  • Net loss of $0.6 million in the first quarter of 2013 compared with a net loss of $1.2 million in the first quarter of 2012 and a net loss of $5.8 million in the fourth quarter of 2012;
  • Cbeyond 2.0 revenue was 11.4% of total revenue in the first quarter of 2013, an increase from 9.5% last quarter; 2.0 revenue in the first quarter of 2013 increased 99.8% over the first quarter of 2012;
  • Average monthly revenue per customer (ARPU) of $656 during the first quarter of 2013 compared with $645 in the first quarter of 2012 and $638 in the fourth quarter of 2012 (see selected quarterly operating metrics table for an ARPU definition); and,
  • Reiterate annual guidance for 2013 of $475 million to $485 million of revenue, $75 million to $82 million of adjusted EBITDA, $60 million to $65 million of cash capital expenditures, and $15 million to $20 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, 2013, include:

  For the Three Months Ended March 31,
  2012 2013 Change % Change
Selected Financial Data (dollars in thousands)        
Revenue (total)  $ 123,843  $ 119,946  $ (3,897) (3.1%)
Operating expenses  $ 125,168  $ 120,164  $ (5,004) (4.0%)
Operating income (loss)  $ (1,325)  $ (218)  $ 1,107 83.5%
Net income (loss)  $ (1,194)  $ (556)  $ 638 53.4%
Capital expenditures (total)  $ 17,236  $ 15,451  $ (1,785) (10.4%)
         
Key Operating Metrics and Non-GAAP Financial Measures        
(dollars in thousands, except Average Monthly Revenue Per Network Access Customer)  
Network Access Customers (At Period End)  62,465  58,434  (4,031) (6.5%)
Net Network Access Customer Additions  296  (1,258)  (1,554) N/M
Average Monthly Churn Rate 1.5% 1.6% 0.1% 6.7%
Average Monthly Revenue Per Network Access Customer  $ 645  $ 656  $ 11 1.7%
Adjusted EBITDA  $ 22,974  $ 20,833  $ (2,141) (9.3%)
Cash capital expenditures  $ 14,836  $ 12,434  $ (2,402) (16.2%)

Management Comments

"I am pleased with our progress in evolving our business model to provide services at the intersection of cloud, network and security," said Jim Geiger, chief executive officer of Cbeyond, Inc. "We have achieved several significant milestones over the past six months. We have continued to build capabilities of our TotalCloud Data Center TM and TotalCloud Phone System TM products; reached the targeted staffing level for our 2.0 sales channels; launched our new offering that bundles cloud services with broadband; have lit dark fiber in over 250 buildings and significantly increased the size of our Metro Ethernet network footprint."

Geiger added, "We believe the combination of these four milestones provides a strong foundation for our future growth. As we move through the remainder of 2013, we expect to continue to build on these milestones, gain momentum in sales productivity and drive further refinement to our service delivery processes to fulfill the needs of our technology dependent customers."

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