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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cbeyond Reports Second Quarter 2013 Results

Stocks in this article: CBEY

ATLANTA, July 31, 2013 (GLOBE NEWSWIRE) -- Cbeyond, Inc. (Nasdaq:CBEY), ("Cbeyond"), the technology ally for small and mid-sized businesses, today announced its results for the second quarter ended June 30, 2013.

Recent financial and operating highlights include:

  • Second quarter 2013 total revenue of $118.2 million compared with $123.8 million in the second quarter of 2012 and $119.9 million in the first quarter of 2013;  
  • Cbeyond 2.0 revenue was $16.1 million, or 13.6% of total revenue in the second quarter of 2013, an increase of 100% from the second quarter of 2012 and an increase of 17% from the first quarter of 2013;   
  • Average monthly revenue per customer (ARPU) of $662 during the second quarter of 2013 compared with $645 in the second quarter of 2012 and $656 in the first quarter of 2013 (see selected quarterly operating metrics table for an ARPU definition);  
  • Adjusted EBITDA of $21.9 million in the second quarter of 2013 compared with $27.2 million in the second quarter of 2012 and $20.8 million in the first quarter of 2013 (see reconciliation tables for reconciliation to net loss);  
  • Free cash flow (defined as adjusted EBITDA less cash capital expenditures) of $7.1 million in the second quarter of 2013 compared with $12.5 million in the second quarter of 2012 and $8.4 million in the first quarter of 2013;  
  • Net loss of less than $0.1 million in the second quarter of 2013 compared with net income of $2.7 million in the second quarter of 2012 and a net loss of $0.6 million in the first quarter of 2013;  
  • Revised annual guidance for 2013 of $464 million to $471 million of revenue, $76 million to $80 million of adjusted EBITDA, $56 million to $60 million of cash capital expenditures, and $18 million to $22 million of free cash flow;  
  • Board approves up to $20 million share repurchase plan expiring June 30, 2015. 

Financial Overview and Key Operating Metrics

Financial and operating metrics, which include non-GAAP financial measures, for the three and six months ended June 30, 2013, include:

  For the Three Months Ended June 30,
  2012 2013 Change % Change
Selected Financial Data (dollars in thousands)        
Revenue (total)  $ 123,762  $ 118,215  $ (5,547) (4.5%)
Operating expenses  $ 118,119  $ 117,791  $ (328) (0.3%)
Operating income (loss)  $ 5,643  $ 424  $ (5,219) (92.5%)
Net income (loss)  $ 2,694  $ (41)  $ (2,735) (101.5%)
Capital expenditures (total)  $ 15,722  $ 20,065  $ 4,343 27.6%
         
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)  62,015  57,013  (5,002) (8.1%)
Net Network Access Customer Additions  (450)  (1,421)  (971) (215.8%)
Average Monthly Churn Rate 1.5% 1.6% 0.1% 6.7%
Average Monthly Revenue Per Network Access Customer  $ 645  $ 662  $ 17 2.6%
Adjusted EBITDA  $ 27,236  $ 21,929  $ (5,307) (19.5%)
Cash capital expenditures  $ 14,765  $ 14,780  $ 15 0.1%
         
         
  For the Six Months Ended June 30,
  2012 2013 Change % Change
Selected Financial Data (dollars in thousands)        
Revenue (total)  $ 247,605  $ 238,161  $ (9,444) (3.8%)
Operating expenses  $ 243,287  $ 237,955  $ (5,332) (2.2%)
Operating income (loss)  $ 4,318  $ 206  $ (4,112) (95.2%)
Net income (loss)  $ 1,500  $ (597)  $ (2,097) (139.8%)
Capital expenditures (total)  $ 32,958  $ 35,516  $ 2,558 7.8%
         
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)  62,015  57,013  (5,002) (8.1%)
Net Network Access Customer Additions  (154)  (2,679)  (2,525) N/M
Average Monthly Churn Rate 1.5% 1.6% 0.1% 6.7%
Average Monthly Revenue Per Network Access Customer  $ 647  $ 660  $ 13 2.0%
Adjusted EBITDA  $ 50,210  $ 42,762  $ (7,448) (14.8%)
Cash capital expenditures  $ 29,601  $ 27,214  $ (2,387) (8.1%)

Management Comments

"I am pleased with the progress we are making at transitioning our company from a communications centric business to a cloud solutions provider for the small and mid-sized business segment," said Jim Geiger, chief executive officer of Cbeyond, Inc. "This quarter, our 2.0 revenue doubled from the second quarter last year and our 2.0 metrics, such as ARPU and sales productivity, are moving in the right direction."

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • 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