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Cogent Communications Group Inc. Cogent Reports Operating Results (10-Q)

November 05, 2010 | About:
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10qk

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Cogent Communications Group Inc. Cogent (CCOI) filed Quarterly Report for the period ended 2010-09-30.

Cogent Communications Group Inc. Cogent has a market cap of $524.5 million; its shares were traded at around $11.6 with and P/S ratio of 2.1. CCOI is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Revenues from our corporate and net centric customers represented 47.2% and 52.8%, respectively, for the three months ended September 30, 2009 and represented 50.1% and 49.9%, respectively, for the three months ended September 30, 2010. Revenues from corporate customers increased 17.9% from $28.4 million for the three months ended September 30, 2009 to $33.5 million for the three months ended September 30, 2010. Revenues from our net centric customers increased 4.7% from $31.8 million for the three months ended September 30, 2009 to $33.3 million for the three months ending September 30, 2010.

Revenues from our corporate and net centric customers represented 47.6% and 52.4%, respectively, for the nine months ended September 30, 2009 and represented 49.0% and 51.0%, respectively, for the nine months ended September 30, 2010. Revenues from corporate customers increased 15.1% from $82.5 million for the nine months ended September 30, 2009 to $95.0 million for the nine months ended September 30, 2010. Revenues from our net centric customers increased 9.0% from $90.8 million for the nine months ended September 30, 2009 to $98.9 million for the nine months ending September 30, 2010.

Net Cash Used In Investing Activities. Net cash used in investing activities was $41.9 million for the nine months ended September 30, 2009 and $40.6 million for the nine months ended September 30, 2010. Our primary use of investing cash for the nine months ended September 30, 2009 and nine months ended September 30, 2010 was $41.8 million and $41.0 million, respectively, for the purchases of property and equipment.

Net Cash Used In Financing Activities. Net cash used in financing activities was $19.6 million for the nine months ended September 30, 2009 and $17.0 million for the nine months ended September 30, 2010. Our primary uses of financing cash for the nine months ended September 30, 2009 were $19.2 million of principal payments under our capital lease obligations and $0.7 million for the purchases of shares of our common stock. Our primary use of financing cash for the nine months ended September 30, 2010 was $17.1 million of principal payments under our capital lease obligations.

Our total indebtedness, net of discount, at September 30, 2010 was $181.2 million and our total cash and cash equivalents were $47.8 million. Our total indebtedness, net of discount, at September 30, 2010 includes $111.3 million of capital lease obligations for dark fiber primarily under 15-25 year indefeasible right of use lease agreements (IRUs), of which approximately $6.7 million is considered a current liability.

In the fourth quarter of 2008, we purchased an aggregate of $108.0 million of face value of the Notes for $48.6 million in cash in a series of transactions. These transactions resulted in a gain of $23.1 million for the year ended December 31, 2008. After these transactions, there is $92.0 million of face value of the Notes outstanding. We may purchase additional Notes.

Read the The complete Report

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