INAP Announces Outlook for 2018
ATLANTA, March 05, 2018 (GLOBE NEWSWIRE) — Internap Corporation (NASDAQ:INAP), a provider of high-performance data center services, including colocation, managed hosting, cloud and network services, in anticipation of its presentation at the Raymond James 39th Annual Institutional Investors Conference at 8:40 a.m. ET today, Monday, March 5, reaffirms guidance for 2017 and announces outlook for 2018.
Reaffirming Guidance for 2017
As previously reported, fourth quarter 2017 revenue of $70 million was up sequentially, coinciding with the rebuilding of our sales force, operations improvements, and business development. With fourth quarter revenue finalized, 2017 annual revenue reached $280 million, well within the tightened range of $277 million to $282 million, set at the Company’s third quarter 2017 report on November 2, 2017.
In addition, INAP’s 2017 Adjusted EBITDA is expected to be at the upper end of our increased range of $87 million to $92 million, updated at the Company’s third quarter 2017 report. This is significantly above the original guidance for Adjusted EBITDA of $84 million to $87 million, set at the fourth quarter 2016 earnings report on March 9, 2017.
Capital expenditures in 2017 are expected to be within the reduced range of $32 million to $37 million, which was adjusted down from approximately $42 million on March 9, 2017.
Outlook for 2018
Management projects that INAP’s total revenues for 2018 will be in the range of $320 million to $330 million, reflecting continued sales productivity, the acquisition of SingleHop which closed on February 28, 2018, offset by planned exits of certain non-core facilities.
Adjusted EBITDA is expected to increase significantly to the range of $105 million to $115 million, incorporating INAP’s growth initiatives, the acquisition of SingleHop and related synergies, and continued cost savings.
Capital expenditures are currently targeted to range between $40 million and $45 million with SingleHop included. As a result, Adjusted EBITDA less Capex is expected to be between $65 million and $70 million.
Peter D. Aquino, INAP’s President and CEO, stated, “We continue our momentum into 2018, with our salesforce rebuilt, improved profitability, and SingleHop. We are enhancing our customers’ experience by delivering a premier data center platform with value-added services in colocation, managed services, and high-performance IP. We expect to drive further top-line improvement and margin expansion throughout the year. I look forward to meeting with investors at the Raymond James Conference.”
A webcast of the conference presentation will be available on https://ir.inap.com/events-and-presentations.
Fourth Quarter 2017 Conference Call
As previously announced, INAP will report final results on its fourth quarter and year end 2017 earnings call on Thursday, March 8, 2018. At 8:30 a.m. ET the same day, senior management will host a conference call presentation to discuss the results.
The call can be accessed by dialing 877-334-0775. International callers should dial 631-291-4567. Listeners may connect to the simultaneous webcast, which will include accompanying presentation slides, on the Investor Relations section of the INAP website.
The online webcast will be archived in the investor relations section of the Company’s website. An audio-only telephonic replay will be accessible from Thursday, March 8, 2018 at 11:30 AM ET through Tuesday, March 13, 2018 at 855-859-2056 using replay code 1494399. International callers can listen to the archived event at 404-537-3406 with the same code.
Adjusted EBITDA and Adjusted EBITDA less CapEx are non-GAAP financial measures, which we define in an attachment to this press release entitled “Non-GAAP (Adjusted) Financial Measures.” A reconciliation between GAAP information and non-GAAP information related to Adjusted EBITDA is contained in the table entitled “Reconciliation of GAAP Net Loss Attributed to INAP Shareholders to Forward Adjusted EBITDA.” A reconciliation between GAAP information and non-GAAP information related to Adjusted EBITDA less CapEx is contained in the table entitled “Reconciliation of GAAP Net Cash Flows provided by Operating Activities to Forward Looking Adjusted EBITDA less CapEx.”
To view the full release, please click here.
About Internap Corporation
Internap Corporation (NASDAQ:INAP) is a leading provider of high-performance data center services including colocation, managed hosting, cloud and network services. INAP partners with its customers, who range from the Fortune 500 to emerging start-ups, to create secure, scalable and reliable IT infrastructure solutions that meet the customers unique business requirements. INAP operates in 56 Tier 3-type data centers in 21 metropolitan markets and has 97 POPs around the world. INAP has over 1 million gross square feet under lease, with over 500,000 square feet of data center space. For more information, visit www.INAP.com.
This press release contains forward-looking statements. These forward-looking statements include statements related to sales, improved profitability, margin expansion, operations improvement, cost reductions, participation in strategic transactions, our strategy to align into pure-play businesses and our expectations for full-year 2017 and 2018 revenue, Adjusted EBITDA, Adjusted EBITDA less CapEx, and capital expenditures. Our ability to achieve these forward-looking statements is based on certain assumptions, including our ability to execute on our business strategy, leveraging of multiple routes to market, expanded brand awareness for high-performance internet infrastructure services and customer churn levels. These assumptions may prove inaccurate in the future. Because such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, there are important factors that could cause INAP’s actual results to differ materially from those expressed or implied in the forward-looking statements, due to a variety of important factors. Such important factors include, without limitation: our ability to execute on our business strategy into a pure-play business and drive growth while reducing costs; our ability to maintain current customers and obtain new ones, whether in a cost-effective manner or at all; the robustness of the IT infrastructure services market; our ability to achieve or sustain profitability; our ability to expand margins and drive higher returns on investment; our ability to sell into new and existing data center space; the actual performance of our IT infrastructure services and improving operations; our ability to correctly forecast capital needs, demand planning and space utilization; our ability to respond successfully to technological change and the resulting competition; the geographic concentration of the Company’s data centers in certain markets and any adverse developments in local economic conditions or the demand for data center space in these markets; ability to identify any suitable strategic transactions; INAP’s ability to realize anticipated revenue, growth, synergies and cost savings from the acquisition of SingleHop; INAP’s ability to successfully integrate SingleHop’s sales, operations, technology, and products generally; the availability of services from internet network service providers or network service providers providing network access loops and local loops on favorable terms, or at all; failure of third party suppliers to deliver their products and services on favorable terms, or at all; failures in our network operations centers, data centers, network access points or computer systems; our ability to provide or improve internet infrastructure services to our customers; our ability to protect our intellectual property; our substantial amount of indebtedness, our possibility to raise additional capital when needed, on attractive terms, or at all, our ability to service existing debt or maintain compliance with financial and other covenants contained in our credit agreement; our compliance with and changes in complex laws and regulations in the U.S. and internationally; our ability to attract and retain qualified management and other personnel; and volatility in the trading price of INAP common stock.
These risks and other important factors discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release.
Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements attributable to INAP or persons acting on its behalf are expressly qualified in their entirety by the foregoing forward-looking statements. All such statements speak only as of the date made, and INAP undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor ContactsRichard Ramlall
Carolyn Capaccio/Jody Burfening