Cogent(US:CCOI)2023-11-08 16:00Revenue and Customer Growth - Average Revenue Per Unit (ARPU) for on-net customers increased by 4.9% to $482, while off-net ARPU rose by 28.0% to $1,194 compared to the same period last year[104]. - Customer connections at the end of the period reached 89,623 for on-net, an increase of 8.5%, and 36,766 for off-net, a significant increase of 175.2%[104]. - Service revenue for the three months ended September 30, 2023, was $275.429 million, compared to $150 million for the same period in 2022, representing an increase of 83.6%[145]. - Service revenue for the nine months ended September 30, 2023, was $668.8 million, a 49.5% increase from $447.6 million in the same period of 2022[1]. - The company recorded an increase in revenues of $18.5 million from taxes billed to customers, including the Universal Service Fund, for the nine months ended September 30, 2023[105]. - The acquisition of Sprint Business resulted in revenue of $191.0 million and a pre-tax loss of $141.6 million for the nine months ended September 30, 2023[163]. Financial Performance - The company reported net cash provided by operating activities of $66,043 thousand for the nine months ended September 30, 2023, down from $137,384 thousand in the same period last year[115]. - The net loss for the three months ended September 30, 2023, was $56.723 million, compared to a net loss of $8.007 million for the same period in 2022, indicating a deterioration in financial performance[145]. - Basic and diluted net loss per common share for the three months ended September 30, 2023, was $(1.20), compared to $(0.17) for the same period in 2022[145]. - The company reported a comprehensive loss of $60.857 million for the three months ended September 30, 2023, compared to a comprehensive loss of $15.759 million for the same period in 2022[145]. - The company recognized a net income of $1.073 billion for the nine months ended September 30, 2023, compared to a net loss of $19.2 million in the previous year[241]. - The company recorded a gain on bargain purchase of $1.2 billion related to the Sprint acquisition[163]. Dividends and Shareholder Returns - The Board of Directors approved a quarterly dividend of $0.955 per common share, amounting to an estimated $45.1 million, expected to be paid on December 8, 2023[118]. - The company has returned over $1.4 billion to stockholders through share repurchases and dividends since its initial public offering[112]. - Dividends declared per common share increased to $0.945 for the three months ended September 30, 2023, compared to $0.905 for the same period in 2022[145]. Assets and Liabilities - Total current assets increased to $581.3 million as of September 30, 2023, compared to $365.9 million at December 31, 2022, representing a 58.8% increase[1]. - Total assets reached $2.96 billion, up from $1.01 billion at the end of 2022, marking a 194.5% increase[1]. - Total liabilities rose to $2.52 billion, compared to $1.53 billion at December 31, 2022, reflecting a 64.7% increase[1]. - The company reported an accumulated deficit of $136.7 million as of September 30, 2023, a significant improvement from an accumulated deficit of $1.07 billion at the end of 2022[1]. - The company’s total stockholders' equity improved to $442.1 million from a deficit of $518.6 million at the end of 2022[1]. Operating Expenses - Total operating expenses for the three months ended September 30, 2023, were $325.987 million, up from $121.235 million in the same period last year, reflecting a significant increase of 169.5%[145]. - Total operating expenses for the nine months ended September 30, 2023, were $729.7 million, up from $361.0 million in the prior year, representing a 102.2% increase[1]. - The company incurred $3.7 million in professional fees related to the acquisition of Sprint Communications, with $1.5 million incurred in the nine months ended September 30, 2023[1]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to $109.7 million from $223.8 million at the end of 2022, a decline of 50.9%[1]. - Cash receipts from the IP Transit Agreement with T-Mobile amounted to $116.667 million during the nine months ended September 30, 2023[148]. - The company received $116.7 million under the IP Transit Services Agreement during the nine months ended September 30, 2023, with total payments expected to reach $700 million[1]. Acquisitions and Agreements - The acquisition of Sprint Business resulted in a cash outflow of $14.037 million, net of cash acquired[148]. - The company has committed to additional dark fiber IRU lease agreements totaling $167.0 million in future payments over periods of up to 20 years, expected to begin within the next 12 months[245]. - Transition Services are intended to be provided for up to two years post-Closing Date, with fees calculated on a per service monthly fee or hourly rate[298]. Lease and Financing - The company recorded $147.5 million of unfavorable lease liabilities due to leases with terms greater than current market rates, which are being amortized into network operations expenses[247]. - Total minimum lease obligations for operating leases are projected to be $612.8 million, while finance leases total $745.3 million, indicating substantial future commitments[246]. - The weighted-average discount rate for finance leases decreased to 7.6% from 8.6% year-over-year, indicating a potential reduction in financing costs[244].