Cogent Communications Holdings, Inc 8-K/A, filed Mar 16, 2021

Cogent Communications Holdings, Inc. (CCOI)

8-K/A 2021-03-16 For: 2021-02-25

View Original

Added on April 08, 2026

About this 8-K/A

Cogent Communications Holdings, Inc filed this 8-K/A on March 16, 2021, reporting on events of February 25, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Delaware		000-51829		46-5706863
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

2450 N St NW, Washington, D.C.		20037
(Address of principal executive offices)		(Zip Code)

Title of Each Class	Trading Symbol	Name of Each Exchange on which Registered
Common Stock, par value $0.001 per share	CCOI	NASDAQ Global Select Market

Exhibit Number		Description
99.1		Press Release of Cogent Communications Holdings, Inc. dated February 25, 2021. (filed herewith).

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

	Cogent Communications Holdings, Inc.


March 16, 2021	By:	/s/ David Schaeffer
		Name:	David Schaeffer
		Title:	President and Chief Executive Officer

Cogent Contacts:
For Public Relations:		For Investor Relations:
Jocelyn Johnson		Sean Wallace
+ 1 (202) 295-4299		+ 1 (202) 295-4202
jajohnson@cogentco.com		investor.relations@cogentco.com

Metric ($ in 000’s, except share and per share data) – unaudited	Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020			Q3 2020			Q4 2020
On-Net revenue	$	97,183		$	97,472		$	99,416		$	102,683		$	103,457		$	103,800		$	105,091		$	107,109
% Change from previous Qtr.		1.9	%		0.3	%		2.0	%		3.3	%		0.8	%		0.3	%		1.2	%		1.9	%
Off-Net revenue	$	36,843		$	37,191		$	37,418		$	37,479		$	37,321		$	37,044		$	37,092		$	36,672
% Change from previous Qtr.		0.8	%		0.9	%		0.6	%		0.2	%		-0.4	%		-0.7	%		0.1	%		-1.1	%
Non-Core revenue (1)	$	111		$	126		$	108		$	130		$	137		$	146		$	119		$	120
% Change from previous Qtr.		-24.5	%		13.5	%		-14.3	%		20.4	%		5.4	%		6.6	%		-18.5	%		0.8	%
Service revenue – total	$	134,137		$	134,789		$	136,942		$	140,292		$	140,915		$	140,990		$	142,302		$	143,901
% Change from previous Qtr.		1.6	%		0.5	%		1.6	%		2.4	%		0.4	%		0.1	%		0.9	%		1.1	%
Constant currency total revenue quarterly growth rate – sequential quarters (6)		1.7	%		0.7	%		1.7	%		2.5	%		0.6	%		0.2	%		-0.2	%		0.7	%
Constant currency total revenue quarterly growth rate – year over year quarters (6)		5.8	%		5.4	%		6.0	%		6.8	%		5.6	%		5.1	%		3.1	%		1.2	%
Excise Taxes included in service revenue	$	3,391		$	3,191		$	3,998		$	4,334		$	3,743		$	3,298		$	3,902		$	4,144
% Change from previous Qtr.		4.9	%		-5.9	%		25.3	%		8.4	%		-13.6	%		-11.9	%		18.3	%		6.2	%
Network operations expenses (2)	$	53,970		$	54,181		$	54,971		$	55,684		$	55,669		$	53,581		$	54,173		$	54,513
% Change from previous Qtr.		-2.6	%		0.4	%		1.5	%		1.3	%		-%			-3.8	%		1.1	%		0.6	%
GAAP gross profit (3)	$	59,724		$	60,403		$	61,683		$	64,300		$	65,486		$	67,208		$	66,164		$	66,617
% Change from previous Qtr.		7.7	%		1.1	%		2.1	%		4.2	%		1.8	%		2.6	%		-1.6	%		0.7	%
GAAP gross margin (3)		44.5	%		44.8	%		45.0	%		45.8	%		46.5	%		47.7	%		46.5	%		46.3	%
Non-GAAP gross profit (4) (6)	$	80,167		$	80,608		$	81,971		$	84,608		$	85,246		$	87,409		$	88,129		$	89,388
% Change from previous Qtr.		4.6	%		0.6	%		1.7	%		3.2	%		0.8	%		2.5	%		0.8	%		1.4	%
Non-GAAP gross margin (4) (6)		59.8	%		59.8	%		59.9	%		60.3	%		60.5	%		62.0	%		61.9	%		62.1	%
Selling, general and administrative expenses (5)	$	32,568		$	33,503		$	31,456		$	31,884		$	34,852		$	34,061		$	33,546		$	33,713
% Change from previous Qtr.		12.2	%		2.9	%		-6.1	%		1.4	%		9.3	%		-2.3	%		-1.5	%		0.5	%

Depreciation and amortization expense	$	20,263		$	19,979		$	20,006		$	20,002		$	19,508		$	19,896		$	21,619		$	22,455
% Change from previous Qtr.		-3.3	%		-1.4	%		0.1	%		-%			-2.5	%		2.0	%		8.7	%		3.9	%
Equity-based compensation expense	$	3,434		$	5,289		$	4,797		$	4,940		$	5,075		$	6,083		$	6,522		$	5,846
% Change from previous Qtr.		-22.1	%		54.0	%		-9.3	%		3.0	%		2.7	%		19.9	%		7.2	%		-10.4	%
Operating income	$	24,400		$	22,022		$	25,799		$	28,033		$	25,850		$	27,574		$	26,036		$	27,384
% Change from previous Qtr.		9.4	%		-9.7	%		17.2	%		8.7	%		-7.8	%		6.7	%		-5.6	%		5.2	%
Interest expense	$	13,456		$	13,595		$	15,191		$	15,211		$	15,220		$	15,499		$	15,760		$	16,007
% Change from previous Qtr.		-0.4	%		1.0	%		11.7	%		0.1	%		0.1	%		1.8	%		1.7	%		1.6	%
Net income (loss)	$	9,217		$	7,136		$	13,701		$	7,465		$	9,227		$	8,564		$	(4,955	)	$	(6,620	)
Realized and unrealized gains (losses) on 2024 Euro Notes	$	-		$	177		$	6,128		$	(4,068	)	$	2,908		$	(873	)	$	(17,315	)	$	(19,170	)
Basic net income (loss) per common share	$	0.20		$	0.16		$	0.30		$	0.16		$	0.20		$	0.19		$	(0.11	)	$	(0.14	)
Diluted net income (loss) per common share	$	0.20		$	0.16		$	0.30		$	0.16		$	0.20		$	0.18		$	(0.11	)	$	(0.14	)
Weighted average common shares – basic		45,223,157			45,354,327			45,438,656			45,553,727			45,658,565			45,754,880			45,815,718			45,904,943
% Change from previous Qtr.		-0.1	%		0.3	%		0.2	%		0.3	%		0.2	%		0.2	%		0.1	%		0.2	%
Weighted average common shares – diluted		45,644,236			45,912,291			46,019,691			46,145,970			46,391,066			46,686,665			45,815,718			45,904,943
% Change from previous Qtr.		-0.3	%		0.6	%		0.2	%		0.3	%		0.5	%		0.6	%		-1.9	%		0.2	%
EBITDA (6)	$	47,561		$	47,105		$	50,515		$	52,724		$	50,394		$	53,348		$	54,583		$	55,675
% Change from previous Qtr.		-%			-1.0	%		7.2	%		4.4	%		-4.4	%		5.9	%		2.3	%		2.0	%
EBITDA margin		35.5	%		34.9	%		36.9	%		37.6	%		35.8	%		37.8	%		38.4	%		38.7	%
Gains on asset related transactions	$	536		$	185		$	87		$	251		$	39		$	205		$	99		$	10

EBITDA, as adjusted (6)	$	48,097		$	47,290		$	50,602		$	52,975		$	50,433		$	53,553		$	54,682		$	55,685
% Change from previous Qtr.		0.9	%		-1.7	%		7.0	%		4.7	%		-4.8	%		6.2	%		2.1	%		1.8	%
EBITDA, as adjusted, margin		35.9	%		35.1	%		37.0	%		37.8	%		35.8	%		38.0	%		38.4	%		38.7	%
Net cash provided by operating activities	$	28,637		$	40,632		$	33,443		$	46,097		$	28,458		$	41,311		$	32,980		$	37,571
% Change from previous Qtr.		-29.7	%		41.9	%		-17.7	%		37.8	%		-38.3	%		45.2	%		-20.2	%		13.9	%
Capital expenditures	$	13,288		$	11,720		$	12,051		$	9,899		$	12,866		$	13,930		$	13,296		$	15,860
% Change from previous Qtr.		21.5	%		-11.8	%		2.8	%		-17.9	%		30.0	%		8.3	%		-4.6	%		19.3	%
Principal payments of capital (finance) lease obligations	$	3,030		$	1,976		$	2,029		$	2,056		$	6,167		$	3,716		$	9,509		$	4,598
% Change from previous Qtr.		42.4	%		-34.8	%		2.7	%		1.3	%		200.0	%		-39.7	%		155.9	%		-51.6	%
Dividends paid	$	26,565		$	27,741		$	28,565		$	29,776		$	30,557		$	31,738		$	32,657		$	34,460
Purchases of common stock	$	-		$	-		$	-		$	-		$	-		$	-		$	270		$	4,225
Gross Leverage Ratio		4.28			5.08			4.97			4.86			4.78			5.08			5.10			5.14
Net Leverage Ratio		2.92			2.93			2.92			2.86			2.92			3.07			3.24			3.40
Customer Connections – end of period
On-Net		71,066			72,415			73,870			74,554			75,163			75,927			76,338			77,305
% Change from previous Qtr.		3.3	%		1.9	%		2.0	%		0.9	%		0.8	%		1.0	%		0.5	%		1.3	%
Off-Net		11,138			11,321			11,503			11,660			11,721			11,846			11,849			11,970
% Change from previous Qtr.		1.5	%		1.6	%		1.6	%		1.4	%		0.5	%		1.1	%		0.0	%		1.0	%
Non-Core (1)		318			318			319			325			329			339			322			325
% Change from previous Qtr.		-12.2	%		-%			-0.3	%		1.9	%		1.2	%		3.0	%		-5.0	%		0.9	%
Total customer connections		82,522			84,054			85,692			86,539			87,213			88,112			88,509			89,600
% Change from previous Qtr.		3.0	%		1.9	%		1.9	%		1.0	%		0.8	%		1.0	%		0.5	%		1.2	%

On-Net Buildings – end of period
Multi-Tenant office buildings	1,746	1,751	1,757	1,767	1,769	1,771	1,783	1,792
Carrier neutral data center buildings	908	933	960	980	1,000	1,029	1,047	1,068
Cogent data centers	52	53	54	54	54	54	54	54
Total on-net buildings	2,706	2,737	2,771	2,801	2,823	2,854	2,884	2,914
Total carrier neutral data center nodes	1,071	1,101	1,128	1,153	1,175	1,203	1,225	1,252
Square feet – multi-tenant office buildings – on-net	949,486,923	951,031,709	954,013,024	957,173,183	961,154,384	962,049,183	968,355,695	976,813,678
Network – end of period
Intercity route miles	57,426	57,426	57,426	57,600	58,009	58,009	58,142	58,285
Metro fiber miles	33,664	34,163	34,985	35,526	36,079	36,438	36,725	37,567
Connected networks – AS’s	6,668	6,762	6,844	6,954	7,042	7,133	7,222	7,338
Headcount – end of period
Sales force – quota bearing	501	519	530	548	542	572	597	569
Sales force - total	639	656	667	686	684	716	740	712
Total employees	997	1,026	1,036	1,055	1,052	1,083	1,110	1,083
Sales rep productivity – units per full time equivalent sales rep (“FTE”) per month	5.1	4.9	4.4	4.1	4.5	4.0	3.7	4.2
FTE – sales reps	464	478	488	502	522	533	563	542

($ in 000’s) – unaudited	Q1 2019			Q2 2019			Q3 2019			Q4 2019			Year 2019			Q1 2020			Q2 2020			Q3 2020			Q4 2020			Year 2020
Net cash provided by operating activities	$	28,637		$	40,632		$	33,443		$	46,097		$	148,809		$	28,458		$	41,311		$	32,980		$	37,571		$	140,320
Changes in operating assets and liabilities		6,727			(5,729	)		3,785			(6,557	)		(1,949	)		5,325		$	(3,232	)	$	6,255		$	1,920		$	12,780
Cash interest expense and income tax expense		12,197			12,202			13,287			13,184			51,045			16,611			15,269			15,348			16,184			60,895
EBITDA	$	47,561		$	47,105		$	50,515		$	52,724		$	197,905		$	50,394		$	53,348		$	54,583		$	55,675		$	213,995
PLUS: Gains on asset related transactions		536			185			87			251			1,059			39			205			99			10			352
EBITDA, as adjusted	$	48,097		$	47,290		$	50,602		$	52,975		$	198,964		$	50,433		$	53,553		$	54,682		$	55,685		$	214,347
EBITDA margin		35.5	%		34.9	%		36.9	%		37.6	%		36.2	%		35.8	%		37.8	%		38.4	%		38.7	%		37.7	%
EBITDA, as adjusted, margin		35.9	%		35.1	%		37.0	%		37.8	%		36.4	%		35.8	%		38.0	%		38.4	%		38.7	%		37.7	%

($ in 000’s) – unaudited	Q1 2019			Q2 2019			Q3 2019			Q4 2019			Year 2019			Q1 2020			Q2 2020			Q3 2020			Q4 2020			Year 2020
Service revenue, as reported – current period	$	134,137		$	134,789		$	136,942		$	140,292		$	546,159		$	140,915		$	140,990		$	142,302		$	143,901		$	568,103
Impact of foreign currencies on service revenue		135			260			176			88			5,286			184			202			(1,616	)		(621	)		(1,492	)
Service revenue - as adjusted for currency impact (1)	$	134,272		$	135,049		$	137,118		$	140,380		$	551,445		$	141,099		$	141,192		$	140,686		$	143,280		$	566,611
Service revenue, as reported – prior sequential period	$	132,049		$	134,137		$	134,789		$	136,942		$	520,193		$	140,292		$	140,915		$	140,990		$	142,302		$	546,159
Constant currency (decrease) increase	$	2,223		$	912		$	2,329		$	3,438		$	31,252		$	807		$	277		$	(304	)	$	978		$	20,452
Constant currency percent (decrease) increase		1.7	%		0.7	%		1.7	%		2.5	%		6.0	%		0.6	%		0.2	%		(0.2	)%		0.7	%		3.7	%

($ in 000’s) – unaudited	As of September 30, 2020		As of December 31, 2020
Cash and cash equivalents	$	393,293	$	371,301
Debt
Capital (finance) leases – current portion		15,252		15,702
Capital (finance) leases – long term		197,688		203,438
Senior Secured 2022 Notes		445,000		445,000
Senior Unsecured Euro 2024 Notes		410,365		429,264
Note payable		10,404		7,712
Total debt		1,078,709		1,101,116
Total net debt		685,416		729,815
Trailing 12 months EBITDA, as adjusted		211,643		214,353
Gross leverage ratio		5.10		5.14
Net leverage ratio		3.24		3.40

	2020			2019
Assets
Current assets:
Cash and cash equivalents	$	371,301		$	399,422
Accounts receivable, net of allowance for credit losses of $1,921 and $1,771, respectively		44,185			40,484
Prepaid expenses and other current assets		40,851			35,822
Total current assets		456,337			475,728
Property and equipment:
Property and equipment		1,515,867			1,366,782
Accumulated depreciation and amortization		(1,085,532	)		(997,853	)
Total property and equipment, net		430,335			368,929
Right-of-use leased assets		99,666			73,460
Deposits and other assets		14,139			14,007
Total assets	$	1,000,477		$	932,124
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	9,775		$	11,075
Accrued and other current liabilities		51,029			51,301
Current maturities, operating lease liabilities		11,151			10,101
Installment payment agreement, current portion, net of discount of $136 and $350, respectively		6,786			9,063
Finance lease obligations, current maturities		15,702			8,154
Total current liabilities		94,443			89,694
Senior unsecured 2024 Euro notes, net of unamortized debt costs of $2,961 and $1,410, respectively and net of discount of $1,142 and $0, respectively		425,160			150,001
Senior secured 2022 notes, net of unamortized debt costs of $1,052 and $1,897 respectively and including premium of $544 and $985, respectively		444,492			444,088
Senior unsecured 2021 notes, net of unamortized debt costs of $857		—			188,368
Operating lease liabilities, net of current maturities		111,318			86,690
Finance lease obligations, net of current maturities		203,438			161,635
Other long-term liabilities		14,792			15,327
Total liabilities		1,293,643			1,135,803
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 75,000,000 shares authorized; 47,214,077 and 46,840,434 shares issued and outstanding, respectively		47			47
Additional paid-in capital		515,867			493,178
Accumulated other comprehensive income (loss)		(1,306	)		(12,326	)
Accumulated deficit		(807,774	)		(684,578	)
Total stockholders' deficit		(293,166	)		(203,679	)
Total liabilities and stockholders' equity	$	1,000,477		$	932,124

	Three Months Ended December 31, 2020			Three Months Ended December 31, 2019
Service revenue	$	143,901		$	140,292
Operating expenses:
Network operations (including $316 and $306 of equity-based compensation expense, respectively), exclusive of amounts shown separately		54,829			55,990
Selling, general, and administrative (including $5,530 and $4,634 of equity-based compensation expense, respectively)		39,243			36,518
Depreciation and amortization		22,455			20,002
Total operating expenses		116,527			112,510
Gains on equipment transactions		10			251
Operating income		27,384			28,033
Interest expense		(16,007	)		(15,211	)
Unrealized foreign exchange (loss) gain on 2024 Euro Notes		(19,170	)		(4,068	)
Interest income and other		529			2,012
(Loss) income before income taxes		(7,264	)		10,766
Income tax benefit (expense)		644			(3,301	)
Net (loss) income	$	(6,620	)	$	7,465

Comprehensive (loss) income:
Net (loss) income	$	(6,620	)	$	7,465
Foreign currency translation adjustment		6,192			3,350
Comprehensive (loss) income	$	(428	)	$	10,815

Basic net (loss) income per common share	$	(0.14	)	$	0.16
Diluted net (loss) income per common share	$	(0.14	)	$	0.16

Dividends declared per common share	$	0.73		$	0.64

Weighted-average common shares—basic		45,904,943			45,553,727

Weighted-average common shares—diluted		45,904,943			46,145,970

	2020			2019			2018
Service revenue	$	568,103		$	546,159		$	520,193
Operating expenses:
Network operations (including $1,219, $994 and $895 of equity-based compensation expense, respectively), exclusive of amounts shown separately		219,157			219,801			219,526
Selling, general, and administrative (including $22,306, $17,466 and $16,813 of equity-based compensation expense, respectively)		158,476			146,913			133,858
Depreciation and amortization		83,477			80,247			81,233
Total operating expenses		461,110			446,961			434,617
Gains on equipment transactions		352			1,059			982
Losses on lease terminations		(423	)		—			—
Operating income		106,922			100,257			86,558
Interest expense		(62,486	)		(57,453	)		(51,056	)
Realized foreign exchange gain on 2024 Euro Notes		2,533			—			—
Unrealized foreign exchange (loss) gain on 2024 Euro Notes		(36,997	)		2,271			—
Loss on debt extinguishment and redemption – 2021 Notes		(638	)		—			—
Interest income and other		978			7,599			5,880
Income before income taxes		10,312			52,674			41,382
Income tax expense		(4,096	)		(15,154	)		(12,715	)
Net income	$	6,216		$	37,520		$	28,667

Comprehensive income:
Net income	$	6,216		$	37,520		$	28,667
Foreign currency translation adjustment		11,020			(1,398	)		(6,328	)
Comprehensive income	$	17,236		$	36,122		$	22,339

Basic net income per common share	$	0.14		$	0.82		$	0.63
Diluted net income per common share	$	0.13		$	0.81		$	0.63

Dividends declared per common share	$	2.78		$	2.44		$	2.12

Weighted-average common shares—basic		45,947,772			45,542,315			45,280,161

Weighted-average common shares—diluted		46,668,198			46,080,395			45,780,954

	Three Months Ended December 31, 2020			Three Months Ended December 31, 2019
Cash flows from operating activities:
Net (loss) income	$	(6,620	)	$	7,466
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		22,455			20,001
Amortization of debt discount and premium		468			479
Equity-based compensation expense (net of amounts capitalized)		5,846			4,940
Gains—equipment transactions and other, net		(115	)		(263	)
Unrealized foreign currency exchange loss on 2024 Euro notes		19,170			4,068
Deferred income taxes		(1,818	)		2,873
Changes in operating assets and liabilities:
Accounts receivable		(1,600	)		1,110
Prepaid expenses and other current assets		482			1,132
Deposits and other assets		(245	)		599
Accounts payable, accrued liabilities and other long-term liabilities		(452	)		3,692
Net cash provided by operating activities		37,571			46,097
Cash flows from investing activities:
Purchases of property and equipment		(15,860	)		(9,899	)
Net cash used in investing activities		(15,860	)		(9,899	)
Cash flows from financing activities:
Dividends paid		(34,460	)		(29,776	)
Principal payments of capital lease obligations		(4,598	)		(2,056	)
Principal payments of installment payment agreement		(2,692	)		(2,659	)
Purchases of common stock		(4,225	)		—
Proceeds from exercises of common stock options		207			367
Net cash used in financing activities		(45,768	)		(34,124	)
Effect of exchange rate changes on cash		2,065			1,077
Net (decrease) increase in cash and cash equivalents		(21,992	)		3,151
Cash and cash equivalents, beginning of period		393,293			396,271
Cash and cash equivalents, end of period	$	371,301		$	399,422