COGENT COMMUNICATIONS HOLDINGS INC

For the period ended Mar 31, 2024. Filed May 9, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 9, 2024

CCOI$4.35-2.2%Stored close · as of Nov 10, 2026

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Contents

Item 1. Financial Statements

ITEM 1.

FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2024 AND DECEMBER 31, 2023

(IN THOUSANDS, EXCEPT SHARE DATA)


· March 31, · December 31,
· · 2024 · · 2023
· · (Unaudited) · · ·
Assets
Current assets:
Cash and cash equivalents	$118,433	$75,092
Restricted cash	44,841	38,689
Accounts receivable, net of allowance for credit losses of $5,588 and $3,677, respectively	107,169	135,475
Due from T-Mobile, IP Transit Services Agreement, current portion, net of discount of $21,878 and $24,898, respectively	119,788	179,269
Due from T-Mobile, Transition Services Agreement	3,232	4,514
Prepaid expenses and other current assets	79,698	80,588
Total current assets	473,161	513,627
Property and equipment:
Property and equipment	3,046,160	2,947,376
Accumulated depreciation and amortization	(1,484,792)	(1,409,559)
Total property and equipment, net	1,561,368	1,537,817
Right-of-use leased assets	347,993	361,587
IPV4 intangible assets	458,000	458,000
Other intangible assets, net	14,370	14,815
Deposits and other assets	26,327	23,438
Due from T-Mobile, IP Transit Services Agreement, net of discount of $23,606 and $27,916, respectively	243,061	263,750
Due from T-Mobile, Purchase Agreement, net of discount of $6,982 and $13,725, respectively	21,132	38,585
Total assets	$3,145,412	$3,211,619
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$45,932	$48,356
Accrued and other current liabilities	187,495	120,523
Accrued dividend payable	45,789	—
Due to T-Mobile – Transition Services Agreement	5,816	66,908
Due to T-Mobile – Purchase Agreement	4,981	4,981
Current maturities, operating lease liabilities	66,553	67,962
Finance lease obligations, current maturities	64,043	64,594
Total current liabilities	420,609	373,324
Senior secured 2026 notes, net of unamortized debt costs of $578 and $645, respectively, and discounts of $769 and $857, respectively	498,653	498,498
Senior unsecured 2027 notes, net of unamortized debt costs of $880 and $941, respectively, and discounts of $1,844 and $1,970, respectively	447,276	447,088
Operating lease liabilities, net of current maturities	320,898	330,095
Finance lease obligations, net of current maturities	453,473	419,921
Deferred income tax liabilities	436,504	471,498
Other long-term liabilities	67,355	61,639
Total liabilities	2,644,768	2,602,063
Commitments and contingencies:
Stockholders’ equity:
Common stock, $0.001 par value; 75,000,000 shares authorized; 49,013,487 and 48,608,569 shares issued and outstanding, respectively	49	49
Additional paid-in capital	614,535	606,755
Accumulated other comprehensive loss	(19,419)	(14,385)
Accumulated (deficit) earnings	(94,521)	17,137
Total stockholders’ equity	500,644	609,556
Total liabilities and stockholders’ equity	$3,145,412	$3,211,619

The accompanying notes are an integral part of these condensed consolidated balance sheets.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE** (LOSS) INCOME**

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND MARCH 31, 2023

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


· Three Months Ended · Three Months Ended
· · March 31, 2024 · · March 31, 2023
· (Unaudited) · (Unaudited)
Service revenue	$266,168	$153,588
Operating expenses:
Network operations (including $385 and $149 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below)	168,933	58,638
Selling, general, and administrative (including $6,565 and $6,432 of equity-based compensation expense, respectively)	76,696	45,078
Acquisition costs – Sprint Business	9,037	400
Depreciation and amortization	70,891	25,160
Total operating expenses	325,557	129,276
Operating (loss) income	(59,389)	24,312
Interest expense	(23,010)	(19,005)
Reduction to gain on bargain purchase – Sprint Business	(5,470)	—
Change in valuation – interest rate swap agreement	(6,152)	1,847
Interest income – IP Transit Services Agreement	7,330	—
Interest income – Purchase Agreement	(480)	—
Interest income and other, net	2,737	3,498
Income before income taxes	(84,434)	10,652
Income tax benefit (expense)	19,127	(4,504)
Net (loss) income	$(65,307)	$6,148


Comprehensive (loss) income:
Net (loss) income	$(65,307)	$6,148
Foreign currency translation adjustment	(5,034)	1,788
Comprehensive (loss) income	$(70,341)	$7,936

Net (loss) income per common share:
Basic net (loss) income per common share	$(1.38)	$0.13
Diluted net (loss) income per common share	$(1.38)	$0.13
Dividends declared per common share	$0.965	$0.925

Weighted-average common shares - basic	47,416,268	47,037,091

Weighted-average common shares - diluted	47,416,268	47,381,226

The accompanying notes are an integral part of these condensed consolidated statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND MARCH 31, 2023

(IN THOUSANDS)


· Three Months Ended · Three Months Ended
· March 31, 2024 · March 31, 2023
· · (Unaudited) · · (Unaudited)
Cash flows from operating activities:
Net (loss) income	$(65,307)	$6,148
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	70,891	25,160
Amortization of debt discounts	342	324
Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements	(6,850)	—
Equity-based compensation expense (net of amounts capitalized)	6,950	6,581
Reduction to gain on bargain purchase – Sprint Business	5,470	—
Gains – lease transactions	—	(615)
Deferred income taxes	(33,069)	890
Changes in operating assets and liabilities:
Accounts receivable	28,306	(860)
Prepaid expenses and other current assets	890	(2,919)
Change in valuation – interest rate swap agreement	6,152	(1,847)
Due to T-Mobile – Transition Services Agreement	(61,092)	—
Due from T-Mobile – Transition Services Agreement	(3,052)	—
Unfavorable lease liabilities	(2,451)	—
Accounts payable, accrued liabilities and other long-term liabilities	75,397	2,923
Deposits and other assets	(3,358)	36
Net cash provided by operating activities	19,219	35,821
Cash flows from investing activities:
Cash receipts - IP Transit Services Agreement – T-Mobile	87,500	—
Acquisition of Sprint Business – severance reimbursement	4,334	—
Purchases of property and equipment	(40,883)	(23,204)
Net cash provided by (used in) investing activities	50,951	(23,204)
Cash flows from financing activities:
Dividends paid	(478)	(45,311)
Proceeds from exercises of stock options	164	145
Principal payments of finance lease obligations	(23,235)	(9,450)
Net cash used in financing activities	(23,549)	(54,616)
Effect of exchange rates changes on cash	2,872	510
Net increase (decrease) in cash, cash equivalents and restricted cash	49,493	(41,489)
Cash, cash equivalents and restricted cash, beginning of period	113,781	275,912
Cash, cash equivalents and restricted cash, end of period	$163,274	$234,423
Supplemental disclosure of non-cash financing activities:
Fair value of equipment acquired in leases	$—	$171
Finance lease obligations incurred	$54,423	$25,871

The accompanying notes are an integral part of these condensed consolidated statements.

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COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.