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Abovenet Inc. (ABVT) filed Quarterly Report for the period ended 2011-09-30.
Abovenet has a market cap of $1.57 billion; its shares were traded at around $60.98 with a P/E ratio of 25.6 and P/S ratio of 3.8.
This is the annual revenues and earnings per share of ABVT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ABVT.
Highlight of Business Operations:
Revenue. Consolidated revenue was $350.9 million for the nine months ended September 30, 2011, compared to $301.6 million for the nine months ended September 30, 2010, an increase of $49.3 million, or 16.3%. Revenue from our U.S. operations increased by $43.5 million, or 15.9%, from $274.3 million for the nine months ended September 30, 2010 to $317.8 million for the nine months ended September 30, 2011. The principal reason for this increase was the continued growth in each of our metro, fiber infrastructure and WAN services. This continued growth in revenue for each of these services is attributable principally to the increase in revenue from new service installations over reductions in revenue caused by contract terminations and any contractual price decreases. U.S. revenue from metro services increased by $12.1 million, or 14.4%, from $84.1 million for the nine months ended September 30, 2010 to $96.2 million for the nine months ended September 30, 2011, U.S. revenue from fiber infrastructure services increased by $9.8 million, or 7.8%, from $126.4 million for the nine months ended September 30, 2010 to $136.2 million for the nine months ended September 30, 2011 and U.S. revenue from WAN services increased by $15.6 million, or 26.6%, from $58.6 million for the nine months ended September 30, 2010 to $74.2 million for the nine months ended September 30, 2011. Consolidated other revenue increased by $6.0 million from $5.2 million for the nine months ended September 30, 2010 to $11.2 million for the nine months ended September 30, 2011, due to increases of $4.5 million in equipment sales and $1.6 million in domestic contract termination revenue. Revenue from our foreign operations, primarily in the U.K., increased by $5.8 million, or 21.2%, from $27.3 million for the nine months ended September 30, 2010 to $33.1 million (which includes $0.2 million of contract termination revenue) for the nine months ended September 30, 2011. The primary reasons for this increase were due to an increase in provisioning of services in the U.K. bolstered by a 5.2% increase in the translation rate due to the strengthening of the British pound compared to the U.S. dollar during the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010.Costs of revenue. Consolidated costs of revenue for the nine months ended September 30, 2011 were $118.7 million, compared to $102.9 million for the nine months ended September 30, 2010, an increase of $15.8 million, or 15.4%. Consolidated costs of revenue as a percentage of revenue were 33.8% for the nine months ended September 30, 2011, compared to 34.1% for the nine months ended September 30, 2010, resulting in consolidated gross profit margin of 66.2% and 65.9% for the nine months ended September 30, 2011 and 2010, respectively. The costs of revenue for our U.S. operations were $109.5 million and $93.6 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of $15.9 million, or 17.0%. The increase in domestic costs of revenue for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010 was attributable principally to (i) an increase of $3.9 million in amounts rebilled to customers for equipment sales (for which there was a corresponding increase in related revenue); (ii) an increase of $3.9 million in payroll-related expenses due to headcount added since the nine months ended September 30, 2010; (iii) an increase of $3.3 million for expenses associated with third party network costs; (iv) an increase of $2.6 million in co-location expenses, to support our IP network services and increase our presence in third party data centers; (v) an increase of $1.2 million for right-of-way expenses; and (vi) an increase of $0.7 million for repairs and maintenance charges for our cable and transmission equipment. Additionally, the nine month periods ended September 30, 2011 and 2010 include provisions for equipment impairment relating to inventory of $0.1 million and $0.4 million, respectively. The costs of revenue for our foreign operations were $9.2 million for the nine months ended September 30, 2011, compared to $9.3 million for the nine months ended September 30, 2010, a decrease of $0.1 million, or 1.1%. This change was primarily due to increases in expenses required to support our European operations and the needs of our existing customers, payroll-related expenses needed to support our provisioning of services and repairs and maintenance charges, offset by the release of accruals for certain business tax rates on installed fiber of $2.8 million and data telco and third party network costs totaling $1.0 million. In addition, the results for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010 reflect a 5.2% increase in the translation rate of the British pound compared to the U.S. dollar.
Selling, General and Administrative Expenses (“SG&A”). Consolidated SG&A for the nine months ended September 30, 2011 was $90.3 million, compared to $69.7 million for the nine months ended September 30, 2010, an increase of $20.6 million, or 29.6%. SG&A as a percentage of revenue was 25.7% and 23.1% for the nine months ended September 30, 2011 and 2010, respectively. In the U.S., SG&A was $78.9 million for the nine months ended September 30, 2011, compared to $61.6 million for the nine months ended September 30, 2010, an increase of $17.3 million, or 28.1%. SG&A for our U.S. operations for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010 increased primarily due to (i) an increase of $12.7 million in domestic non-cash stock-based compensation expense from $5.8 million for the nine months ended September 30, 2010 to $18.5 million for the nine months ended September 30, 2011; (ii) an increase of $1.6 million in domestic payroll and payroll-related expenses from $35.0 million for the nine months ended September 30, 2010 to $36.6 million for the nine months ended September 30, 2011, which is attributable principally to an increase in sales commissions paid to our sales force due to the year over year increase in sales; (iii) an increase of $0.9 million in commissions paid to third party sales agents attributable to the increased revenue base on which such commissions are based; (iv) an increase of $0.8 million for property taxes; and (v) an increase of $0.6 million in occupancy-related expenses. SG&A from our foreign operations was $11.4 million for the nine months ended September 30, 2011, compared to $8.1 million for the nine months ended September 30, 2010, an increase of $3.3 million, or 40.7%. Our foreign operations reported increases in payroll and payroll-related expenses of $1.2 million, non-cash stock-based compensation expense of $0.8 million and occupancy costs of $0.5 million, primarily related to the relocation of our London office, and reflects a 5.2% increase in the translation rate of the British pound compared to the U.S. dollar.
Revenue. Consolidated revenue was $118.2 million for the three months ended September 30, 2011, compared to $103.7 million for the three months ended September 30, 2010, an increase of $14.5 million, or 14.0%. Revenue from our U.S. operations increased by $12.5 million, or 13.3%, from $94.3 million for the three months ended September 30, 2010 to $106.8 million for the three months ended September 30, 2011. The principal reason for this increase was the continued growth in each of our metro, fiber infrastructure and WAN services. This continued growth in revenue for each of these services is attributable principally to the increase in revenue from new service installations over reductions in revenue caused by contract terminations and any contractual price decreases. U.S. revenue from metro services increased by $3.5 million, or 12.0%, from $29.2 million for the three months ended September 30, 2010 to $32.7 million for the three months ended September 30, 2011, U.S. revenue from fiber infrastructure services increased by $2.6 million, or 6.0%, from $43.2 million for the three months ended September 30, 2010 to $45.8 million for the three months ended September 30, 2011 and U.S. revenue from WAN services increased by $6.3 million, or 30.6%, from $20.6 million for the three months ended September 30, 2010 to $26.9 million for the three months ended September 30, 2011. Consolidated other revenue increased by $0.1 million from $1.3 million for the three months ended September 30, 2010 to $1.4 million for the three months ended September 30, 2011, primarily due to an increase of $0.1 million in equipment sales. Revenue from our foreign operations, primarily in the U.K., increased by $2.0 million, or 21.3%, from $9.4 million for the three months ended September 30, 2010 to $11.4 million (which includes $0.1 million of contract termination revenue) for the three months ended September 30, 2011. The primary reasons for this increase were due to both an increase in the volume of service provision in the U.K. and a 4.0% increase in the translation rate due to the strengthening of the British pound compared to the U.S. dollar during the three months ended September 30, 2011 compared to the three months ended September 30, 2010.
Selling, General and Administrative Expenses (“SG&A”). Consolidated SG&A for the three months ended September 30, 2011 was $30.1 million, compared to $23.1 million for the three months ended September 30, 2010, an increase of $7.0 million, or 30.3%. SG&A as a percentage of revenue was 25.2% and 22.3% for the three months ended September 30, 2011 and 2010, respectively. In the U.S., SG&A was $26.1 million for the three months ended September 30, 2011, compared to $20.2 million for the three months ended September 30, 2010, an increase of $5.9 million, or 29.2%. SG&A for our U.S. operations for the three months ended September 30, 2011 compared to the three months ended September 30, 2010 increased primarily due to (i) an increase of $3.5 million in domestic non-cash stock-based compensation expense from $2.1 million for the three months ended September 30, 2010 to $5.6 million for the three months ended September 30, 2011; (ii) an increase of $0.8 million in domestic payroll and payroll-related expenses from $11.3 million for the three months ended September 30, 2010 to $12.1 million for the three months ended September 30, 2011, which is attributable to an increase in sales commissions due to the year over year increase in sales; (iii) an increase of $0.4 million in commissions paid to third party sales agents attributable to the increased revenue base on which such commissions are based; (iv) an increase of $0.3 million in occupancy costs; and (v) an increase of $0.2 million for property taxes. SG&A from our foreign operations was $4.0 million for the three months ended September 30, 2011, compared to $2.9 million for the three months ended September 30, 2010, an increase of $1.1 million, or 37.9%. Our foreign operations reported increases in payroll and payroll-related expenses of $0.8 million, non-cash stock-based compensation expense of $0.2 million, and occupancy costs of $0.1 million, primarily related to the relocation of our London office.
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