COGENT COMMUNICATIONS HOLDINGS INC

For the period ended Sep 30, 2024. Filed Nov 7, 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.

Sep 30, 2024 · Filed Nov 7, 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 SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(IN THOUSANDS, EXCEPT SHARE DATA)


· September 30, · December 31,
· · 2024 · · 2023
· · (Unaudited) · · ·
Assets
Current assets:
Cash and cash equivalents	$279,191	$75,092
Restricted cash	36,901	38,689
Accounts receivable, net of allowance for credit losses of $10,223 and $3,677, respectively	99,565	135,475
Due from T-Mobile, IP Transit Services Agreement, current portion, net of discount of $18,468 and $24,898, respectively	81,532	179,269
Due from T-Mobile, Transition Services Agreement	—	4,514
Prepaid expenses and other current assets	72,214	80,588
Total current assets	569,403	513,627
Property and equipment:
Property and equipment	3,227,805	2,947,376
Accumulated depreciation and amortization	(1,607,122)	(1,409,559)
Total property and equipment, net	1,620,683	1,537,817
Right-of-use leased assets	289,894	361,587
IPv4 intangible assets	458,000	458,000
Other intangible assets, net	13,481	14,815
Deposits and other assets	29,668	23,438
Due from T-Mobile, IP Transit Services Agreement, net of discount of $15,644 and $27,916, respectively	201,022	263,750
Due from T-Mobile, Purchase Agreement, net of discount of $6,172 and $13,725, respectively	21,943	38,585
Total assets	$3,204,094	$3,211,619
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$53,053	$48,356
Accrued and other current liabilities	148,204	120,523
Due to T-Mobile – Transition Services Agreement	1,570	66,908
Due to T-Mobile – Purchase Agreement	—	4,981
Current maturities, operating lease liabilities	55,867	67,962
Finance lease obligations, current maturities	21,939	64,594
Total current liabilities	280,633	373,324
Senior secured 2026 notes, net of unamortized debt costs of $443 and $645, respectively, and discounts of $590 and $857, respectively	498,967	498,498
Senior unsecured 2027 notes, net of unamortized debt costs of $1,997 and $941, respectively, and discounts of $7,699 and $1,970, respectively	740,304	447,088
Secured IPv4 notes, net of debt costs of $7,016	198,984	—
Operating lease liabilities, net of current maturities	270,932	330,095
Finance lease obligations, net of current maturities	460,632	419,921
Deferred income tax liabilities	382,987	471,498
Other long-term liabilities	47,102	61,639
Total liabilities	2,880,541	2,602,063
Commitments and contingencies:
Stockholders’ equity:
Common stock, $0.001 par value; 75,000,000 shares authorized; 49,012,688 and 48,608,569 shares issued and outstanding, respectively	49	49
Additional paid-in capital	620,410	606,755
Accumulated other comprehensive loss	(12,294)	(14,385)
Accumulated (deficit) earnings	(284,612)	17,137
Total stockholders’ equity	323,553	609,556
Total liabilities and stockholders’ equity	$3,204,094	$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

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


· · Three Months Ended · Three Months Ended
· September 30, 2024 · · September 30, 2023
· · (Unaudited) · (Unaudited)
Service revenue	$257,202	$275,429
Operating expenses:
Network operations (including $469 and $370 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below)	161,552	173,594
Selling, general, and administrative (including $7,406 and $7,041 of equity-based compensation expense, respectively)	67,664	65,308
Acquisition costs – Sprint Business	—	351
Depreciation and amortization	85,815	86,734
Total operating expenses	315,031	325,987
Operating loss	(57,829)	(50,558)
Interest expense, including change in valuation interest rate swap agreement	(26,877)	(29,023)
Gain on bargain purchase – Sprint Business	—	(3,332)
Interest income – IP Transit Services Agreement	5,438	10,299
Interest income – Purchase Agreement	409	664
Interest income and other, net	(1,153)	1,604
Loss before income taxes	(80,012)	(70,346)
Income tax benefit	16,900	13,623
Net loss	$(63,112)	$(56,723)

Comprehensive loss:
Net loss	$(63,112)	$(56,723)
Foreign currency translation adjustment	8,847	(4,134)
Comprehensive loss	$(54,265)	$(60,857)

Net loss per common share:
Basic net loss per common share	$(1.33)	$(1.20)
Diluted net loss per common share	$(1.33)	$(1.20)
Dividends declared per common share	$0.985	$0.945

Weighted-average common shares - basic	47,426,131	47,227,338

Weighted-average common shares - diluted	47,426,131	47,227,338

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


· Nine Months Ended · Nine Months Ended
· · September 30, 2024 · · September 30, 2023
· (Unaudited) · (Unaudited)
Service revenue	$783,813	$668,822
Operating expenses:
Network operations (including $1,204 and $750 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below)	486,657	369,734
Selling, general, and administrative (including $17,186 and $19,491 of equity-based compensation expense, respectively)	212,706	194,046
Acquisition costs – Sprint Business	21,407	1,490
Depreciation and amortization	230,747	164,403
Total operating expenses	951,517	729,673
Gain on lease termination	3,332	—
Operating loss	(164,372)	(60,851)
Interest expense, including change in valuation interest rate swap agreement	(85,575)	(76,138)
Gain on bargain purchase – Sprint Business	22,202	1,152,386
Interest income – IP Transit Services Agreement	18,702	17,968
Interest income – Purchase Agreement	331	1,170
Interest income and other, net	4,074	5,154
(Loss) income before income taxes	(204,638)	1,039,689
Income tax benefit	43,881	33,599
Net (loss) income	$(160,757)	$1,073,288

Comprehensive (loss) income:
Net (loss) income	$(160,757)	$1,073,288
Foreign currency translation adjustment	2,091	(605)
Comprehensive (loss) income	$(158,666)	$1,072,683

Net (loss) income per common share:
Basic net (loss) income per common share	$(3.39)	$22.72
Diluted net (loss) income per common share	$(3.39)	$22.54
Dividends declared per common share	$2.925	$2.805

Weighted-average common shares - basic	47,453,906	47,234,025

Weighted-average common shares - diluted	47,453,906	47,624,709

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023

(IN THOUSANDS)


· · Nine Months Ended · · Nine Months Ended
· September 30, 2024 · September 30, 2023
· · (Unaudited) · · (Unaudited)
Cash flows from operating activities:
Net (loss) income	$(160,757)	$1,073,288
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	230,747	164,403
Amortization of debt costs and discounts	2,364	986
Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements	(19,033)	(19,138)
Equity-based compensation expense (net of amounts capitalized)	18,390	20,241
Gain on bargain purchase – Sprint Business	(22,202)	(1,152,386)
Gains – lease terminations and other, net	(3,332)	(277)
Deferred income taxes	(66,902)	(63,509)
Changes in operating assets and liabilities:
Accounts receivable	35,910	(3,247)
Prepaid expenses and other current assets	(3,949)	(4,763)
Due to T-Mobile – Transition Services Agreement	(65,338)	69,629
Due from T-Mobile – Transition Services Agreement	4,514	(16,831)
Accounts payable, accrued liabilities and other long-term liabilities	32,785	(2,176)
Deposits and other assets	(6,374)	(177)
Net cash (used in) provided by operating activities	(23,177)	66,043
Cash flows from investing activities:
Cash payments - IP Transit Services Agreement – T-Mobile	179,167	116,667
Acquisition of Sprint Business, net of $47.1 million of cash acquired in 2023	12,323	(14,037)
Purchases of property and equipment	(148,894)	(86,023)
Net cash provided by investing activities	42,596	16,607
Cash flows from financing activities:
Dividends paid	(140,992)	(135,354)
Purchases of common stock	(7,968)	—
Net proceeds from issuance of senior unsecured 2027 Notes - net of discount of $6.8 million and debt costs of $1.4 million	291,879	—
Net proceeds from issuance of secured IPv4 notes – net of debt costs of $7.6 million	198,426	—
Proceeds from exercises of stock options	952	787
Principal payments of finance lease obligations	(46,653)	(58,549)
Settlement of finance lease – at a discount	(114,576)	—
Net cash provided by (used in) financing activities	181,068	(193,116)
Effect of exchange rates changes on cash	1,824	626
Net increase (decrease) in cash, cash equivalents and restricted cash	202,311	(109,840)
Cash, cash equivalents and restricted cash, beginning of period	113,781	275,912
Cash, cash equivalents and restricted cash, end of period	$316,092	$166,072
Supplemental disclosure of non-cash financing activities:
Finance lease obligations incurred	$171,638	$217,782

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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.