This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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."

1 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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