Exhibit 99.1

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended  
     September 30,
2013
    June 30,
2013
    March 31,
2013
    December 31,
2012
    September 30,
2012
    June 30,
2012
    March 31,
2012
 

Recurring revenues

   $ 515,566      $ 501,814      $ 494,522      $ 482,826      $ 460,482      $ 433,615      $ 420,145   

Non-recurring revenues

     27,518        27,057        21,612        23,233        24,353        21,915        20,807   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     543,084        528,871        516,134        506,059        484,835        455,530        440,952   

Cost of revenues

     268,960        267,109        258,591        249,329        250,946        225,604        218,738   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     274,124        261,762        257,543        256,730        233,889        229,926        222,214   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

              

Sales and marketing

     61,619        59,478        58,276        55,690        53,211        47,603        46,410   

General and administrative

     96,874        88,632        90,818        86,536        83,290        80,268        78,172   

Restructuring charges

     —          (4,837     —          —          —          —          —     

Impairment charges

     —          —          —          9,861        —          —          —     

Acquisition costs

     438        2,526        3,662        1,939        4,542        1,666        675   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     158,931        145,799        152,756        154,026        141,043        129,537        125,257   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     115,193        115,963        104,787        102,704        92,846        100,389        96,957   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest and other income (expense):

              

Interest income

     929        917        747        758        1,054        963        691   

Interest expense

     (61,957     (61,001     (60,331     (50,516     (50,207     (46,787     (52,818

Loss on debt extinguishment

     —          (93,602     —          —          (5,204     —          —     

Other income (expense)

     985        2,768        (459     (717     507        (1,844     (154
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest and other, net

     (60,043     (150,918     (60,043     (50,475     (53,850     (47,668     (52,281
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     55,150        (34,955     44,744        52,229        38,996        52,721        44,676   

Income tax benefit (expense)

     (12,397     9,668        (11,460     (17,476     (12,348     (16,271     (12,469
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations

     42,753        (25,287     33,284        34,753        26,648        36,450        32,207   

Net income from discontinued operations, net of tax

     —          —          —          6        679        350        199   

Gain on sale of discontinued operations, net of tax

     —          —          —          11,852        —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     42,753        (25,287     33,284        46,611        27,327        36,800        32,406   

Net income attributable to redeemable non-controlling interests

     (282     (529     (441     (1,273     (362     (1,193     (288
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Equinix

   $ 42,471      $ (25,816   $ 32,843      $ 45,338      $ 26,965      $ 35,607      $ 32,118   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share attributable to Equinix:

              

Basic net income (loss) per share from continuing operations

   $ 0.86      $ (0.52   $ 0.67      $ 0.69      $ 0.54      $ 0.73      $ 0.68   

Basic net income per share from discontinued operations

     —          —          —          0.24        0.02        0.01        0.01   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income (loss) per share (2)

   $ 0.86      $ (0.52   $ 0.67      $ 0.93      $ 0.56      $ 0.74      $ 0.69   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income (loss) per share from continuing operations

   $ 0.83      $ (0.52   $ 0.65      $ 0.67      $ 0.53      $ 0.71      $ 0.66   

Diluted net income per share from discontinued operations

     —          —          —          0.22        0.01        —          0.01   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income (loss) per share (3)

   $ 0.83      $ (0.52   $ 0.65      $ 0.89      $ 0.54      $ 0.71      $ 0.67   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing basic net income (loss) per share

     49,555        49,379        49,029        48,673        48,361        48,016        46,955   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing diluted net income (loss) per share

     53,581        49,379        53,480        52,917        52,655        52,351        51,061   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)    In November 2013, we completed our evaluation of whether a lengthening of the estimated period over which non-recurring installation fees are recognized, which we originally incorrectly considered a change in estimate that we began to recognize prospectively beginning in the second quarter of 2013, should have been applied in earlier periods. We concluded that these longer lives should have been identified and utilized for revenue recognition purposes beginning in 2006. We assessed the materiality of this error individually and in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the error was not material to any of our prior interim and annual financial statements and, therefore, the previously-issued financial statements could continue to be relied upon and that amendment of previously filed reports with the SEC was not required. We also determined that correcting the cumulative amount of the non-recurring installation fees of $27.2 million as of December 31, 2012 in 2013 would be material to the projected 2013 consolidated financial statements, and, as such, we revised our previously-issued consolidated financial statements accordingly, commencing with our Form 10-Q for the quarterly period ended September 30, 2013. Such adjustment has no effect on our total cash flows. As part of the revision to our previously-issued consolidated financial statements noted above, we also revised our consolidated financial statements for several previously identified immaterial errors that were either uncorrected or corrected in a period subsequent to the period in which the error originated, as more fully described in Note 2 of our Form 10-Q filed for the quarterly period ended September 30, 2013. The financial results contained herein are the as revised financial statements.

                       

(2)    The net income (loss) used in the computation of basic net income per share attributable to Equinix is presented below:

       

Net income (loss) from continuing operations

   $ 42,753      $ (25,287   $ 33,284      $ 34,753      $ 26,648      $ 36,450      $ 32,207   

Net income attributable to non-controlling interests

     (282     (529     (441     (1,273     (362     (1,193     (288

Adjustments attributable to redemption value of non-controlling interests

     —          —          —          —          —          —          209   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations attributable to Equinix, basic

     42,471        (25,816     32,843        33,480        26,286        35,257        32,128   

Net income from discontinued operations

     —          —          —          11,858        679        350        199   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Equinix, basic

   $ 42,471      $ (25,816   $ 32,843      $ 45,338      $ 26,965      $ 35,607      $ 32,327   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(3)    The net income (loss) used in the computation of diluted net income per share attributable to Equinix is presented below:

       

Net income (loss) from continuing operations attributable to Equinix, basic

   $ 42,471      $ (25,816   $ 32,843      $ 33,480      $ 26,286      $ 35,257      $ 32,128   

Interest on convertible debt

     1,865        —          1,851        1,707        1,696        1,678        1,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations attributable to Equinix, diluted

     44,336        (25,816     34,694        35,187        27,982        36,935        33,827   

Net income from discontinued operations

     —          —          —          11,858        679        350        199   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Equinix, diluted

   $ 44,336      $ (25,816   $ 34,694      $ 47,045      $ 28,661      $ 37,285      $ 34,026   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (1)

(in thousands)

(unaudited)

 

     Three Months Ended  
     September 30,
2013
    June 30,
2013
    March 31,
2013
    December 31,
2012
    September 30,
2012
    June 30,
2012
    March 31,
2012
 

Recurring revenues

   $ 515,566      $ 501,814      $ 494,522      $ 482,826      $ 460,482      $ 433,615      $ 420,145   

Non-recurring revenues

     27,518        27,057        21,612        23,233        24,353        21,915        20,807   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues (2)

     543,084        528,871        516,134        506,059        484,835        455,530        440,952   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash cost of revenues (3)

     174,111        168,421        162,010        158,086        157,425        141,352        137,929   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash gross profit (4)

     368,973        360,450        354,124        347,973        327,410        314,178        303,023   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash operating expenses (5):

              

Cash sales and marketing expenses (6)

     48,172        46,430        46,280        43,996        42,120        38,689        38,119   

Cash general and administrative expenses (7)

     72,356        65,985        66,956        64,291        60,274        59,069        58,169   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cash operating expenses (8)

     120,528        112,415        113,236        108,287        102,394        97,758        96,288   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (9)

   $ 248,445      $ 248,035      $ 240,888      $ 239,686      $ 225,016      $ 216,420      $ 206,735   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash gross margins (10)

     68     68     69     69     68     69     69
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margins (11)

     46     47     47     47     46     48     47
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA flow-through rate (12)

     3     56     12     69     29     66     66
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)    In November 2013, we completed our evaluation of whether a lengthening of the estimated period over which non-recurring installation fees are recognized, which we originally incorrectly considered a change in estimate that we began to recognize prospectively beginning in the second quarter of 2013, should have been applied in earlier periods. We concluded that these longer lives should have been identified and utilized for revenue recognition purposes beginning in 2006. We assessed the materiality of this error individually and in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the error was not material to any of our prior interim and annual financial statements and, therefore, the previously-issued financial statements could continue to be relied upon and that amendment of previously filed reports with the SEC was not required. We also determined that correcting the cumulative amount of the non-recurring installation fees of $27.2 million as of December 31, 2012 in 2013 would be material to the projected 2013 consolidated financial statements, and, as such, we revised our previously-issued consolidated financial statements accordingly, commencing with our Form 10-Q for the quarterly period ended September 30, 2013. Such adjustment has no effect on our total cash flows. As part of the revision to our previously-issued consolidated financial statements noted above, we also revised our consolidated financial statements for several previously identified immaterial errors that were either uncorrected or corrected in a period subsequent to the period in which the error originated, as more fully described in Note 2 of our Form 10-Q filed for the quarterly period ended September 30, 2013. The financial results contained herein are the as revised financial statements.

                       

(2)    The geographic split of our revenues on a services basis is presented below:

       

Americas Revenues:

              

Colocation

   $ 230,583      $ 226,290      $ 223,285      $ 216,052      $ 212,805      $ 209,536      $ 203,702   

Interconnection

     61,984        59,800        58,206        56,426        54,943        53,048        51,739   

Managed infrastructure

     12,905        13,567        13,147        11,981        12,017        12,125        13,464   

Rental

     818        445        460        490        469        445        439   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recurring revenues

     306,290        300,102        295,098        284,949        280,234        275,154        269,344   

Non-recurring revenues

     13,123        13,366        10,694        10,023        11,602        10,874        7,663   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     319,413        313,468        305,792        294,972        291,836        286,028        277,007   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EMEA Revenues:

              

Colocation

     108,906        103,916        100,532        95,823        91,512        87,820        83,951   

Interconnection

     9,233        8,854        8,381        7,989        7,188        4,192        3,824   

Managed infrastructure

     6,215        5,734        4,249        4,596        5,112        3,262        3,414   

Rental

     116        138        120        325        314        336        344   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recurring revenues

     124,470        118,642        113,282        108,733        104,126        95,610        91,533   

Non-recurring revenues

     8,784        8,367        6,687        8,593        7,699        6,955        9,671   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     133,254        127,009        119,969        117,326        111,825        102,565        101,204   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asia-Pacific Revenues:

              

Colocation

     69,080        67,881        71,014        73,824        61,470        50,139        47,060   

Interconnection

     10,433        9,699        9,404        9,090        8,550        7,794        7,320   

Managed infrastructure

     5,293        5,490        5,724        6,230        6,102        4,918        4,888   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recurring revenues

     84,806        83,070        86,142        89,144        76,122        62,851        59,268   

Non-recurring revenues

     5,611        5,324        4,231        4,617        5,052        4,086        3,473   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     90,417        88,394        90,373        93,761        81,174        66,937        62,741   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Worldwide Revenues:

              

Colocation

     408,569        398,087        394,831        385,699        365,787        347,495        334,713   

Interconnection

     81,650        78,353        75,991        73,505        70,681        65,034        62,883   

Managed infrastructure

     24,413        24,791        23,120        22,807        23,231        20,305        21,766   

Rental

     934        583        580        815        783        781        783   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recurring revenues

     515,566        501,814        494,522        482,826        460,482        433,615        420,145   

Non-recurring revenues

     27,518        27,057        21,612        23,233        24,353        21,915        20,807   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

   $ 543,084      $ 528,871      $ 516,134      $ 506,059      $ 484,835      $ 455,530      $ 440,952   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(3)    We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

        

Cost of revenues

   $ 268,960      $ 267,109      $ 258,591      $ 249,329      $ 250,946      $ 225,604      $ 218,738   

Depreciation, amortization and accretion expense

     (92,579     (96,894     (94,979     (89,602     (91,795     (82,718     (79,492

Stock-based compensation expense

     (2,270     (1,794     (1,602     (1,641     (1,726     (1,534     (1,317
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash cost of revenues

   $ 174,111      $ 168,421      $ 162,010      $ 158,086      $ 157,425      $ 141,352      $ 137,929   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The geographic split of our cash cost of revenues is presented below:

  

Americas cash cost of revenues

   $ 92,882      $ 89,890      $ 87,724      $ 82,665      $ 84,771      $ 80,806      $ 80,650   

EMEA cash cost of revenues

     47,924        47,304        43,629        43,888        42,615        37,392        35,353   

Asia-Pacific cash cost of revenues

     33,305        31,227        30,657        31,533        30,039        23,154        21,926   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash cost of revenues

   $ 174,111      $ 168,421      $ 162,010      $ 158,086      $ 157,425      $ 141,352      $ 137,929   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(4)    We define cash gross profit as revenues less cash cost of revenues (as defined above).

       

(5)    We define cash operating expenses as operating expenses less depreciation, amortization and stock-based compensation. We also refer to cash operating expenses as cash selling, general and administrative expenses or “cash SG&A”.

        

(6)    We define cash sales and marketing expenses as sales and marketing expenses less depreciation, amortization and stock-based compensation as presented below:

        

Sales and marketing expenses

   $ 61,619      $ 59,478      $ 58,276      $ 55,690      $ 53,211      $ 47,603      $ 46,410   

Depreciation and amortization expense

     (6,197     (6,223     (6,275     (6,469     (6,296     (4,239     (4,256

Stock-based compensation expense

     (7,250     (6,825     (5,721     (5,225     (4,795     (4,675     (4,035
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash sales and marketing expenses

   $ 48,172      $ 46,430      $ 46,280      $ 43,996      $ 42,120      $ 38,689      $ 38,119   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(7)    We define cash general and administrative expenses as general and administrative expenses less depreciation, amortization and stock-based compensation as presented below:

        

General and administrative expenses

   $ 96,874      $ 88,632      $ 90,818      $ 86,536      $ 83,290      $ 80,268      $ 78,172   

Depreciation and amortization expense

     (6,758     (7,072     (7,349     (7,480     (7,431     (7,291     (6,474

Stock-based compensation expense

     (17,760     (15,575     (16,513     (14,765     (15,585     (13,908     (13,529
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash general and administrative expenses

   $ 72,356      $ 65,985      $ 66,956      $ 64,291      $ 60,274      $ 59,069      $ 58,169   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(8)    Our cash operating expenses, or cash SG&A, as defined above, is presented below:

       

Cash sales and marketing expenses

   $ 48,172      $ 46,430      $ 46,280      $ 43,996      $ 42,120      $ 38,689      $ 38,119   

Cash general and administrative expenses

     72,356        65,985        66,956        64,291        60,274        59,069        58,169   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash SG&A

   $ 120,528      $ 112,415      $ 113,236      $ 108,287      $ 102,394      $ 97,758      $ 96,288   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The geographic split of our cash operating expenses, or cash SG&A, is presented below:

  

Americas cash SG&A

   $ 76,227      $ 69,287      $ 73,551      $ 65,466      $ 67,136      $ 65,774      $ 66,849   

EMEA cash SG&A

     28,191        29,016        27,611        28,043        22,818        20,100        19,099   

Asia-Pacific cash SG&A

     16,110        14,112        12,074        14,778        12,440        11,884        10,340   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash SG&A

   $ 120,528      $ 112,415      $ 113,236      $ 108,287      $ 102,394      $ 97,758      $ 96,288   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(9)    We define adjusted EBITDA as income from continuing operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges and acquisition costs as presented below:

        

Income from continuing operations

   $ 115,193      $ 115,963      $ 104,787      $ 102,704      $ 92,846      $ 100,389      $ 96,957   

Depreciation, amortization and accretion expense

     105,534        110,189        108,603        103,551        105,522        94,248        90,222   

Stock-based compensation expense

     27,280        24,194        23,836        21,631        22,106        20,117        18,881   

Restructuring charges

     —          (4,837     —          —          —          —          —     

Impairment charges

     —          —          —          9,861        —          —          —     

Acquisition costs

     438        2,526        3,662        1,939        4,542        1,666        675   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 248,445      $ 248,035      $ 240,888      $ 239,686      $ 225,016      $ 216,420      $ 206,735   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The geographic split of our adjusted EBITDA is presented below:

  

Americas income from continuing operations

   $ 70,691      $ 73,673      $ 59,379      $ 63,394      $ 62,567      $ 64,591      $ 57,948   

Americas depreciation, amortization and accretion expense

     58,939        65,149        63,296        59,833        60,394        59,633        56,721   

Americas stock-based compensation expense

     20,591        18,168        18,444        16,641        16,968        15,225        14,929   

Americas restructuring charges

     —          (4,837     —          —          —          —          —     

Americas impairment charges

     —          —          —          6,972        —          —          —     

Americas acquisition costs

     83        2,138        3,398        1        —          (1     (90
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Americas adjusted EBITDA

     150,304        154,291        144,517        146,841        139,929        139,448        129,508   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EMEA income from continuing operations

     28,685        23,811        22,538        18,605        20,432        22,830        27,147   

EMEA depreciation, amortization and accretion expense

     24,503        23,424        23,071        22,554        22,054        18,329        17,312   

EMEA stock-based compensation expense

     3,596        3,065        3,038        2,633        2,900        2,673        2,164   

EMEA acquisition costs

     355        389        82        1,603        1,006        1,241        129   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EMEA adjusted EBITDA

     57,139        50,689        48,729        45,395        46,392        45,073        46,752   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asia-Pacific income from continuing operations

     15,817        18,479        22,870        20,705        9,847        12,968        11,862   

Asia-Pacific depreciation, amortization and accretion expense

     22,092        21,616        22,236        21,164        23,074        16,286        16,189   

Asia-Pacific stock-based compensation expense

     3,093        2,961        2,354        2,357        2,238        2,219        1,788   

Asia-Pacific impairment charges

     —          —          —          2,889        —          —          —     

Asia-Pacific acquisition costs

     —          (1     182        335        3,536        426        636   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asia-Pacific adjusted EBITDA

     41,002        43,055        47,642        47,450        38,695        31,899        30,475   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 248,445      $ 248,035      $ 240,888      $ 239,686      $ 225,016      $ 216,420      $ 206,735   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(10)  We define cash gross margins as cash gross profit divided by revenues.

     

Our cash gross margins by geographic region is presented below:

  

Americas cash gross margins

     71     71     71     72     71     72     71
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EMEA cash gross margins

     64     63     64     63     62     64     65
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asia-Pacific cash gross margins

     63     65     66     66     63     65     65
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(11) We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

  

Americas adjusted EBITDA margins

     47     49     47     50     48     49     47
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EMEA adjusted EBITDA margins

     43     40     41     39     41     44     46
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asia-Pacific adjusted EBITDA margins

     45     49     53     51     48     48     49
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(12)  We define adjusted EBITDA flow-through rate as incremental adjusted EBITDA growth divided by incremental revenue growth as follows:

      

Adjusted EBITDA - current period

   $ 248,445      $ 248,035      $ 240,888      $ 239,686      $ 225,016      $ 216,420      $ 206,735   

Less adjusted EBITDA - prior period

     (248,035     (240,888     (239,686     (225,016     (216,420     (206,735     (192,880
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA growth

   $ 410      $ 7,147      $ 1,202      $ 14,670      $ 8,596      $ 9,685      $ 13,855   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues - current period

   $ 543,084      $ 528,871      $ 516,134      $ 506,059      $ 484,835      $ 455,530      $ 440,952   

Less revenues - prior period

     (528,871     (516,134     (506,059     (484,835     (455,530     (440,952     (419,849
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue growth

   $ 14,213      $ 12,737      $ 10,075      $ 21,224      $ 29,305      $ 14,578      $ 21,103   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA flow-through rate

     3     56     12     69     29     66     66