Cogent Communications (CCOI) 10-Q7 Nov 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Oct. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'COGENT COMMUNICATIONS HOLDINGS, INC.	'
Entity Central Index Key	'0001158324	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	46,240,836
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$311,779	$304,866
Accounts receivable, net of allowance for doubtful accounts of $2,012 and $1,871, respectively	31,770	30,628
Prepaid expenses and other current assets	20,705	18,777
Total current assets	364,254	354,271
Property and equipment, net	357,699	341,193
Deferred tax assets - noncurrent	49,175	50,861
Deposits and other assets - $392 and $448 restricted, respectively	13,333	8,776
Total assets	784,461	755,101
Current liabilities:	'	'
Accounts payable	16,303	14,098
Accrued liabilities	31,257	31,465
Convertible senior notes - current portion, net of discount of $3,099 (Note 3)	'	88,879
Current maturities, capital lease obligations	8,980	9,252
Total current liabilities	56,540	143,694
Senior secured notes including premium of $4,535 and $5,423, respectively	244,535	245,423
Senior unsecured notes	200,000	'
Capital lease obligations, net of current maturities	153,495	152,527
Other long term liabilities	21,227	19,965
Total liabilities	675,797	561,609
Commitments and contingencies:	'	'
Stockholders' equity:	'	'
Common stock, $0.001 par value; 75,000,000 shares authorized; 46,449,080 and 47,334,218 shares issued and outstanding, respectively	46	47
Additional paid-in capital	467,846	508,256
Accumulated other comprehensive income-foreign currency translation	-3,404	2,136
Accumulated deficit	-355,824	-316,947
Total stockholders' equity	108,664	193,492
Total liabilities and stockholders' equity	$784,461	$755,101

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Accounts receivable, allowance for doubtful accounts (in dollars)	$2,012	$1,871
Deposits and other assets, restricted (in dollars)	392	448
Convertible senior notes, discount (in dollars)	'	3,099
Senior secured notes, premium (in dollars)	$4,535	$5,423
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	46,449,080	47,334,218
Common stock, shares outstanding	46,449,080	47,334,218

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	'	'	'	'
Service revenue	$95,691	$87,761	$283,252	$258,118
Operating expenses:	'	'	'	'
Network operations (including $114 and $114 and $341 and $395 of equity-based compensation expense for three months and nine months ended September 30, 2014 and 2013, respectively, exclusive of depreciation and amortization shown separately below)	40,407	37,441	118,848	111,825
Selling, general, and administrative (including $2,578 and $1,947 and $6,229 and $6,317 of equity-based compensation expense for three months and nine months ended September 30, 2014 and 2013, respectively)	27,353	21,719	79,775	64,410
Gains on equipment transactions	-3,114	'	-8,140	'
Depreciation and amortization	17,431	16,024	51,937	47,798
Total operating expenses	82,077	75,184	242,420	224,033
Operating income	13,614	12,577	40,832	34,085
Interest income and other, net	140	292	544	1,537
Interest expense	-12,662	-10,568	-37,756	-30,653
Income before income taxes	1,092	2,301	3,620	4,969
Income tax provision	-1,276	-179	-2,471	-879
Net (loss) income	-184	2,122	1,149	4,090
Comprehensive (loss) income:	'	'	'	'
Net (loss) income	-184	2,122	1,149	4,090
Foreign currency translation adjustment	-5,034	2,341	-5,540	874
Comprehensive (loss) income	($5,218)	$4,463	($4,391)	$4,964
Net (loss) income per common share:	'	'	'	'
Basic and diluted net (loss) income per common share (in dollars per share)	$0	$0.05	$0.02	$0.09
Dividends declared per common share (in dollars per share)	$0.30	$0.14	$0.86	$0.39
Weighted-average common shares -basic (in shares)	45,629,079	46,171,194	46,111,192	46,145,642
Weighted-average common shares - diluted (in shares)	45,629,079	46,823,167	46,526,523	46,905,154

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)	'	'	'	'
Network operations, equity-based compensation expense	$114	$114	$341	$395
Selling, general, and administrative, equity-based compensation expense	$2,578	$1,947	$6,229	$6,317

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$1,149	$4,090
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	51,937	47,798
Amortization of debt discount and premium	2,269	4,696
Equity-based compensation expense (net of amounts capitalized)	6,570	6,712
(Gains) losses - equipment transactions and other, net	-7,780	-24
Deferred income taxes	1,911	418
Changes in operating assets and liabilities:	'	'
Accounts receivable	-2,081	-4,509
Prepaid expenses and other current assets	-2,890	-2,767
Accounts payable, accrued liabilities and other long-term liabilities	4,616	-4,478
Deposits and other assets	-596	627
Net cash provided by operating activities	55,105	52,563
Cash flows from investing activities:	'	'
Purchases of property and equipment	-47,010	-38,936
Proceeds from dispositions of assets	91	42
Net cash used in investing activities	-46,919	-38,894
Cash flows from financing activities:	'	'
Dividends paid	-40,026	-18,146
Purchases of common stock	-48,027	'
Repayment of convertible senior notes	-91,978	'
Net proceeds from issuance of senior secured notes	'	69,882
Net proceeds from issuance of senior unsecured notes	195,824	'
Proceeds from exercises of stock options	438	974
Principal payments of capital lease obligations	-15,439	-8,930
Net cash provided by financing activities	792	43,780
Effect of exchange rate changes on cash	-2,065	41
Net increase in cash and cash equivalents	6,913	57,490
Cash and cash equivalents, beginning of period	304,866	247,285
Cash and cash equivalents, end of period	311,779	304,775
Supplemental disclosure of non-cash financing activities:	'	'
Non-cash component of network equipment obtained in exchange transactions	8,014	'
Capital lease obligations incurred	$19,107	$27,649

Description_of_the_business_an

Description of the business and recent developments:	9 Months Ended
	Sep. 30, 2014
Description of the business and recent developments:	'
Description of the business and recent developments:	'
	1. Description of the business and recent developments:

	Reorganization and merger

	On May 15, 2014, pursuant to the Agreement and Plan of Reorganization (the “Merger Agreement”) by and among Cogent Communications Group, Inc. (“Group”), a Delaware corporation, Cogent Communications Holdings, Inc., a Delaware corporation (“Holdings”) and Cogent Communications Merger Sub, Inc., a Delaware corporation (“Merger Sub”), Group adopted a new holding company organizational structure whereby Group is now a wholly owned subsidiary of Holdings. Holdings is a “successor issuer” to Group pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In connection with the succession, the common stock of Holdings is deemed to be registered under Section 12(b) of the Exchange Act by operation of law.

	The holding company organizational structure was effected by a merger (the “Merger”) structured as a tax-free transaction and conducted pursuant to Section 251(g) of Delaware General Corporation Law which provides for the formation of a holding company structure without a vote of the stockholders of the constituent corporations. Because the holding company organizational structure has occurred at the parent company level, the remainder of the Company’s subsidiaries, operations and customers were not affected by the Merger. Accordingly, the historical financial statements reflect the effect of the reorganization for all periods presented. Under the terms of the Merger Agreement, Merger Sub merged with and into Group, with Group surviving the Merger and becoming a direct, wholly owned subsidiary of Holdings.

	Pursuant to the Merger Agreement, all of the outstanding capital stock of Group was converted, on a share for share basis, into the common stock of Holdings. As a result, each former stockholder of Group became the owner of an identical number of shares of common stock of Holdings, evidencing the same proportional interests in the Company (as defined below) and having the same designations, rights, powers and preferences, qualifications, limitations and restrictions, as those that the stockholder held in Group. Additionally, each outstanding option to purchase shares of common stock of Group was automatically converted into an option to purchase, upon the same terms and conditions, an identical number of shares of Holding’s common stock. Each outstanding restricted share of common stock of Group was also converted into a restricted share of common stock of Holdings upon the same terms and conditions. The directors and executive officers of the Company immediately after completion of the Merger are comprised of the same persons who were directors of and executive officers of Group immediately prior to the Merger.

	References to the “Company” for events that occurred prior to May 15, 2014 refer to Cogent Communications Group, Inc. and its subsidiaries and on and after May 15, 2014 the “Company” refers to Cogent Communications Holdings, Inc. and its subsidiaries.

	Description of business

	The Company is a Delaware corporation and is headquartered in Washington, DC. The Company is a facilities-based provider of low-cost, high-speed Internet access and Internet Protocol (“IP”) communications services. The Company’s network is specifically designed and optimized to transmit data using IP. The Company delivers its services primarily to small and medium-sized businesses, communications service providers and other bandwidth-intensive organizations in North America, Europe and Japan.

	The Company offers on-net Internet access services exclusively through its own facilities, which run from its network to its customers’ premises. The Company is not dependent on local telephone companies to serve its customers for its on-net Internet access services because of its integrated network architecture. The Company offers its on-net services to customers located in buildings that are physically connected to its network. The Company’s on-net service consists of high-speed Internet access and IP connectivity ranging from 100 Megabits per second to 100 Gigabits per second of bandwidth. The Company provides its on-net Internet access services to its net-centric and corporate customers. The Company’s net-centric customers include bandwidth-intensive users such as universities, other Internet service providers, telephone companies, cable television companies, web hosting companies, content delivery network companies and commercial content and application service providers. These net-centric customers obtain the Company’s services in colocation facilities and in the Company’s data centers. The Company operates data centers throughout North America and Europe that allow its customers to collocate their equipment and access the Company’s network. The Company’s corporate customers are located in multi-tenant office buildings and typically include law firms, financial services firms, advertising and marketing firms and other professional services businesses.

	In addition to providing its on-net services, the Company provides Internet connectivity to customers that are not located in buildings directly connected to its network. The Company provides this off-net service primarily to corporate customers using other carriers’ facilities to provide the “last mile” portion of the link from the customers’ premises to the Company’s network. The Company also provides certain non-core services that resulted from acquisitions. The Company continues to support but does not actively sell these non-core services.

	Basis of presentation

	The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. While the Company believes that the disclosures are adequate to not make the information misleading, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in its 2013 annual report on Form 10-K.

	The accompanying unaudited consolidated financial statements include all wholly-owned subsidiaries. All inter-company accounts and activity have been eliminated.

	Use of estimates

	The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

	Financial instruments

	At September 30, 2014, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). Based upon recent trading prices (Level 2 — market approach) at September 30, 2014 the fair value of the Company’s $200.0 million senior unsecured notes was $197.0 million and the fair value of the Company’s $240.0 million senior secured notes was $252.0 million.

	The Company was party to letters of credit totaling $0.4 million as of September 30, 2014. These letters of credit are secured by investments that are restricted and included in other assets.

	Basic and diluted net income (loss) per common share

	Basic earnings per share (“EPS”) excludes dilution for common stock equivalents and is computed by dividing net income or (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock outstanding during each period, adjusted for the effect of dilutive common stock equivalents.

	Shares of restricted stock are included in the computation of basic EPS as they vest and are included in diluted EPS, to the extent they are dilutive, determined using the treasury stock method. As of September 30, 2014 and 2013, 1.1 million and 1.2 million unvested shares of restricted common stock, respectively, are not included in the computation of basic income per share, as these shares were not vested. Using the “if-converted” method, the shares issuable upon conversion of the Company’s convertible senior notes (the “Convertible Notes”) were anti-dilutive for the three and nine months ended September 30, 2013. Accordingly, that impact has been excluded from the computation of diluted loss per share. The Convertible Notes were convertible into 1.9 million shares of the Company’s common stock at September 30, 2013. The Convertible Notes were repaid in June 2014 and are no longer outstanding. For the three and nine months ended September 30, 2014 and 2013, the Company’s employees exercised options for 7,623, 32,658, 15,839 and 72,802 common shares, respectively.

	The following details the determination of diluted weighted average shares:

		Nine Months Ended	Three Months Ended	Nine Months Ended
		September 30, 2014	September 30, 2013	September 30, 2013
	Weighted average common shares - basic	46,111,192	46,171,194	46,145,642
	Dilutive effect of stock options	62,998	70,557	76,632
	Dilutive effect of restricted stock	352,333	581,416	682,880
	Weighted average common shares - diluted	46,526,523	46,823,167	46,905,154

	Recent Accounting Pronouncements

	On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

	In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Prior to the issuance of ASU 2013-11 there was no explicit guidance on the presentation of unrecognized tax benefits when such carryforwards exist. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position was disallowed. The ASU was effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The adoption of this guidance did not have any effect on our consolidated financial statements.

Property_and_equipment

Property and equipment:	9 Months Ended
Property and equipment:	Sep. 30, 2014
Property and equipment:	'
Property and equipment:	'
	2. Property and equipment:

	Depreciation and amortization expense related to property and equipment and capital leases was $17.4 million $51.9 million, $16.0 million and $47.8 million for the three and nine months ended September 30, 2014 and 2013, respectively. The Company capitalized salaries and related benefits of employees working directly on the construction and build-out of its network of $2.0 million, $5.9 million, $1.8 million and $5.6 million for the three and nine months ended September 30, 2014 and 2013, respectively.

	In the nine months ended September 30, 2014, the Company exchanged certain used network equipment for new network equipment and cash consideration. The fair value of the equipment received was estimated to be $16.8 million resulting in gains of $8.0 million. The estimated fair value of the equipment received was based upon the cash consideration price the Company pays for the new network equipment on a standalone basis (level 3).

Longterm_debt

Long-term debt:	9 Months Ended
	Sep. 30, 2014
Long-term debt:	'
Long-term debt:	'
	3. Long-term debt:

	Senior unsecured notes

	On April 9, 2014, Cogent Communications Finance, Inc. ( “Cogent Finance”), a newly formed financing subsidiary of Group, completed an offering of $200.0 million in aggregate principal amount at par of 5.625% Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes were sold in private offerings for resale to qualified institutional buyers pursuant to SEC Rule 144A. The offering closed into escrow pursuant to an escrow agreement, dated as of April 9, 2014 (the “Escrow Agreement”). The term “Issuer” refers to Cogent Finance prior to the release of the funds from the escrow account (such date of release, the “Escrow Release Date”) and to Group after the Escrow Release Date. As a condition to releasing the funds from escrow the Company redeemed its remaining outstanding Convertible Notes on June 20, 2014 (the “Redemption Transaction”). After consummation of the Redemption Transaction, Cogent Finance merged with Group, with Group continuing as the surviving corporation (the “Finance Merger”). At the time of consummation of the Finance Merger, Group assumed the obligations of Cogent Finance under the 2021 Notes and the indenture governing the 2021 Notes (the “Indenture”) and Group and each of Group’s domestic subsidiaries became party to the Indenture pursuant to a supplemental indenture to the Indenture and the obligations under the Indenture became obligations solely of Group and each of Group’s domestic subsidiaries. Holdings also provided a guarantee of the 2021 Notes but Holdings is not subject to any of the covenants under the Indenture. After the conditions to the release of the escrow proceeds were satisfied, on June 25, 2014 (the “Escrow Release Date”) the proceeds from the 2021 Notes were released. The net proceeds from the offering were $195.8 million after deducting discounts and commissions and offering expenses. Issuance costs are included in deposits and other assets. The net proceeds from the offering are intended to be used for general corporate purposes.

	The 2021 Notes were issued pursuant to, and are governed by the Indenture between Cogent Finance and the trustee. The 2021 Notes bear interest at a rate of 5.625% per year and will mature on April 15, 2021. Interest began to accrue on the 2021 Notes on April 9, 2014 and will be paid semi-annually on April 15 and October 15, commencing on October 15, 2014. Following the Escrow Release Date, the 2021 Notes became Group’s senior unsecured obligations and are guaranteed on a senior unsecured basis by the Company. The 2021 Notes are effectively subordinated in right of payment to all of Group’s and each guarantor’s secured indebtedness, including the Group’s existing $240.0 million of senior secured notes and future secured indebtedness, if any, to the extent of the value of the assets securing such indebtedness. The 2021 Notes are equal in right of payment with Group’s and each guarantor’s unsecured indebtedness that is not subordinated in right of payment to the 2021 Notes. The 2021 Notes will rank senior in right of payment to Group’s and each guarantor’s future subordinated debt, if any; and will be structurally subordinated in right of payment to all indebtedness and other liabilities of any of the Group’s subsidiaries that are not guarantors, which will only consist of immaterial subsidiaries and foreign subsidiaries that do not guarantee other indebtedness of Group.

	The Company may redeem the 2021 Notes, in whole or in part, at any time prior to April 15, 2017 at a price equal to 100% of the principal amount plus an “applicable” premium, plus accrued and unpaid interest, if any, to the date of redemption. The “applicable” premium means, with respect to a note at any date of redemption, the greater of (i) 1.0% of the then-outstanding principal amount of such note and (ii) the excess of (A) the present value at such date of redemption of (1) the redemption price of 104.219% plus (2) all remaining required interest payments due on such note through April 15, 2017 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the Treasury Rate as of such date of redemption plus 50 basis points, over (B) the then-outstanding principal amount of such note. The Company may also redeem the 2021 Notes, in whole or in part, at any time on or after April 15, 2017 at the applicable redemption prices specified under the indenture governing the 2021 Notes plus accrued and unpaid interest, if any, to the date of redemption. The redemption prices (expressed as a percentage of the principal amount) are 104.219% during the 12-month period beginning on April 15, 2017, 102.813% during the 12-month period beginning on April 15, 2018, 101.406% during the 12-month period beginning on April 15, 2019 and 100.0% during the 12-month period beginning on April 15, 2020 and thereafter. In addition, the Company may redeem up to 35% of the 2021 Notes before April 15, 2017 with the net cash proceeds from certain equity offerings at a redemption price of 105.625% of the principal amount plus accrued and unpaid interest. If the Company experiences specific kinds of changes of control, the Company must offer to repurchase all of the 2021 Notes at a purchase price of 101.0% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date.

	The indenture governing the 2021 Notes, among other things, limits the Company’s ability to incur indebtedness; to pay dividends or make other distributions; to make certain investments and other restricted payments; to create liens; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; to incur restrictions on the ability of a subsidiary to pay dividends or make other payments; and to enter into certain transactions with its affiliates. Limitations on the ability to incur additional indebtedness (excluding IRU agreements incurred in the normal course of business) include a restriction on incurring additional indebtedness if the Company’s consolidated leverage ratio, as defined in the Indenture is greater than 5.0. Permitted investments and payments that are not restricted include an amount of up to $150.0 million. This amount may be increased by the Company’s consolidated cash flow, as defined in the Indenture as long as the Company’s consolidated leverage ratio is less than 4.25. Holdings had cash and cash equivalents totaling $80.0 million as of September 30, 2014 which are not subject to these limitations.

	Senior secured notes

	On January 26, 2011 and on August 19, 2013, the Company issued its 8.375% Senior Secured Notes (the “Senior Notes”) due February 15, 2018, for aggregate principal amounts of $175.0 million and $65.0 million, respectively, in private offerings for resale to qualified institutional buyers pursuant to SEC Rule 144A. The Senior Notes are secured and bear interest at 8.375% per annum. Interest is payable in cash semiannually in arrears on February 15 and August 15, of each year. On January 26, 2011, the Company received net proceeds of $170.5 million after deducting $4.5 million of issuance costs from issuing $175.0 million of Senior Notes. On August 19, 2013, the Company received net proceeds of approximately $69.9 million after deducting $1.0 million of issuance costs from issuing $65.0 million of Senior Notes. The Senior Notes sold in August 2013 were sold at 109.00% of par value. The resulting $5.9 million premium is being amortized as a reduction to interest expense to the maturity date using the effective interest rate method. Issuance costs are included in deposits and other assets.

	Convertible senior notes

	In June 2007, the Company issued its Convertible Notes for an aggregate principal amount of $200.0 million in a private offering for resale to qualified institutional buyers pursuant to SEC Rule 144A. The Convertible Notes were scheduled to mature on June 15, 2027, were unsecured, and bore interest at 1.00% per annum. Interest was payable in cash semiannually in arrears on June 15 and December 15, of each year, beginning on December 15, 2007. The Company received net proceeds from the issuance of the Convertible Notes of approximately $195.1 million, after deducting the original issue discount of 2.25% and issuance costs. The discount and other issuance costs were being amortized to interest expense using the effective interest method through June 15, 2014, which was the earliest put date. In 2008, the Company purchased an aggregate of $108.0 million of face value of the Convertible Notes for $48.6 million in cash in a series of transactions resulting in $92.0 million of principal amount of the Convertible Notes remaining after these purchase transactions.

	Holders of the Convertible Notes had the right to require the Company to repurchase for cash all or some of their notes on June 15, 2014, 2017 and 2022 at a redemption price of 100% of the principal amount plus accrued interest. Holders of $58.5 million of principal amount of the Convertible Notes issued a repurchase notice to the Company and on June 16, 2014 the Company repaid $58.5 million of Convertible Notes principal amount plus accrued interest. The Convertible Notes may have been redeemed by the Company at any time on and after June 20, 2014 at a redemption price of 100% of the principal amount plus accrued interest. On June 20, 2014 the Company redeemed the remaining $33.5 million principal amount of the Convertible Notes.

	The debt and equity components for the Convertible Notes and of December 31, 2013 were as follows (in thousands):

		December 31,
		2013

	Principal amount	$	91,978
	Unamortized discount	(3,099		)
	Net carrying amount	88,879
	Additional paid-in capital	74,933

	The amount of interest expense recognized and effective interest rate for the Convertible Notes were as follows (in thousands):

		Three Months Ended			Nine Months Ended			Nine Months Ended
		September 30, 2013			September 30, 2014			September 30, 2013

	Contractual coupon interest	$	230		$	419		$	690
	Amortization of discount and costs on Notes	1,619			3,106			4,755
	Interest expense	$	1,849		$	3,525		$	5,445
	Effective interest rate	8.7		%	8.7		%	8.7		%

Commitments_and_contingencies

Commitments and contingencies:	9 Months Ended
Commitments and contingencies:	Sep. 30, 2014
Commitments and contingencies:	'
Commitments and contingencies:	'
	4. Commitments and contingencies:

	Current and potential litigation

	In accordance with the accounting guidance for contingencies, the Company accrues its estimate of a contingent liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Where it is probable that a liability has been incurred and there is a range of expected loss for which no amount in the range is more likely than any other amount, the Company accrues at the low end of the range. The Company reviews its accruals at least quarterly and adjusts them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. The Company has taken certain positions related to its obligations for leased circuit and dark fiber obligations for which it is reasonably possible could result in a loss of up to $2.0 million in excess of the amount accrued at September 30, 2014.

	Certain former sales employees of the Company filed a collective action against the Company in December 2011 in the United States District Court, Southern District of Texas, Houston Division alleging misclassification of the Company’s sales employees throughout the U.S. in violation of the Fair Labor Standards Act. The lawsuit seeks to recover pay for allegedly unpaid overtime and other damages, including attorney’s fees. In March 2014, the judge de-certified the collective action. Each of the former employees that opted-in to the collective action retains the right to file an individual action. Approximately 70 former employees have done so. In several of the jurisdictions in which the lawsuits have been filed the plaintiffs seek certification of a collective action related to the employees in that jurisdiction. The Company denies the claims and believes that the claims for unpaid overtime are without merit. The Company believes its classification of sales employees is in compliance with applicable law.

	In the normal course of business the Company is involved in other legal activities and claims. Because such matters are subject to many uncertainties and the outcomes are not predictable with assurance, the liability related to these legal actions and claims cannot be determined with certainty. Management does not believe that such claims and actions will have a material impact on the Company’s financial condition or results of operations. Judgment is required in estimating the ultimate outcome of any dispute resolution process, as well as any other amounts that may be incurred to conclude the negotiations or settle any litigation. Actual results may differ from these estimates under different assumptions or conditions and such differences could be material.

Income_taxes

Income taxes:	9 Months Ended
	Sep. 30, 2014
Income taxes:	'
Income taxes:	'
	5. Income taxes:

	The effective income tax rates for the three and nine months ended September 30, 2014 and 2013 are different from the U.S. federal income tax statutory rate of 35.0% primarily due to the impact of discrete expenses. Since the Company is near breakeven these discrete items result in a significant impact on the effective income tax rate during the period. Additional deviation from the U.S. federal income tax statutory rate are due to permanent differences resulting from non-deductible equity-based compensation expense and from the impact of state taxes and foreign losses that have not met the criteria for recording as an income tax benefit. The components of income (loss) before income taxes consist of the following (in thousands):

		Three Months			Three Months
		Ended			Ended
		September 30, 2014			September 30, 2013

	Domestic	$	7,874		$	8,011
	Foreign	(6,782		)	(5,710		)
	Total	$	1,092		$	2,301

		Nine Months			Nine Months
		Ended			Ended
		September 30, 2014			September 30, 2013

	Domestic	$	23,888		$	22,150
	Foreign	(20,268		)	(17,181		)
	Total	$	3,620		$	4,969

Common_stock_buyback_program

Common stock buyback program:	9 Months Ended
Common stock buyback program:	Sep. 30, 2014
Common stock buyback program:	'
Common stock buyback program:	'

	6. Common stock buyback program:

	The Company’s board of directors has approved through February 29, 2016, purchases of the Company’s common stock under a buyback program (the “Buyback Program”). At September 30, 2014, there was approximately $47.7 million remaining for purchases under the Buyback Program. During the three and nine months ended September 30, 2014, the Company purchased 475,803 shares and 1,402,691 shares of its common stock for $15.9 million and $48.0 million, respectively. There were no purchases made during the nine months ended September 30, 2013.

Dividends_on_common_stock

Dividends on common stock:	9 Months Ended
Dividends on common stock:	Sep. 30, 2014
Dividends on common stock:	'
Dividends on common stock:	'
	7. Dividends on common stock:

	Dividends are recorded as a reduction to retained earnings. Dividends on unvested restricted shares of common stock are paid as the awards vest. The Company’s initial quarterly dividend payment was made in the third quarter of 2012. In addition to the Company’s regular quarterly dividends, in 2013, the Company’s board of directors approved an additional return of capital program (the “Capital Program”). Under the Capital Program the Company plans on returning additional capital to the Company’s shareholders each quarter through either stock buybacks or a special dividend or a combination of stock buybacks and a special dividend. The aggregate payment under the Capital Program initially was a minimum of $10.0 million each quarter and was increased to be a minimum of $10.5 million each quarter. Amounts paid under the Capital Program are in addition to the Company’s regular quarterly dividend payments. The initial $10.0 million ($0.22 per share) quarterly dividend payment under the Capital Program was paid on December 20, 2013. The Company bought $14.2 million, $17.9 million and $15.9 million of its stock in the first, second and third quarters of 2014, respectively, which were greater than the minimum quarterly amount under the Capital Program; as a result, special dividends under the Capital Program are not included with the second, third and fourth quarter 2014 dividend payments.

	On November 3, 2014, the Company’s board of directors approved the payment of the Company’s regular quarterly dividend of $0.31 per common share and an increase to the minimum quarterly amount under the Capital Program to $12.0 million. The dividend for the fourth quarter of 2014 will be paid to holders of record on November 26, 2014. This estimated $14.1 million dividend payment is expected to be made on December 12, 2014.

	A summary of the Company’s quarterly dividends paid since its initial dividend payment is as follows (in thousands, except per share amounts):

	Dividend Period	Amount per		Record Date	Payment Date	Dividends Paid
	Dividend Period	Common Share		Record Date	Payment Date	Dividends Paid
	Q3 2012	$	0.10	August 22, 2012	September 12, 2012	$	4,537
	Q4 2012	$	0.11	November 21, 2012	December 12, 2102	$	5,012
	Q1 2013	$	0.12	March 4, 2013	March 15, 2013	$	5,489
	Q2 2013	$	0.13	May 31, 2013	June 18, 2013	$	6,145
	Q3 2013	$	0.14	September 5, 2013	September 25, 2013	$	6,512
	Q4 2013	$	0.37	November 27, 2013	December 20, 2013	$	17,206
	Q1 2014	$	0.39	March 7, 2014	March 27, 2014	$	18,352
	Q2 2014	$	0.17	May 30, 2014	June 18, 2014	$	7,882
	Q3 2014	$	0.30	August 29, 2014	September 19, 2014	$	13,792

	The payment of any future dividends and any other returns of capital will be at the discretion of the Company’s board of directors and may be reduced, eliminated or increased and will be dependent upon the Company’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Company’s board of directors.

Related_party_transactions

Related party transactions:	9 Months Ended
Related party transactions:	Sep. 30, 2014
Related party transactions:	'
Related party transactions:	'
	8. Related party transactions:

	Office lease

	The Company’s headquarters is located in an office building owned by Niobium LLC (a successor to 6715 Kenilworth Avenue Partnership). The two owners of the company are the Company’s Chief Executive Officer, David Schaeffer, who has a 51% interest in the partnership and his wife who has a 49% interest. The Company paid $0.2 million and $0.4 million in the three and nine months ended September 30, 2014 and paid $0.2 million and $0.5 million in the three and nine months ended September 30, 2013, for rent and related costs (including taxes and utilities) to this company, respectively. The lease ends on August 31, 2016.

Segment_information

Segment information:	9 Months Ended
	Sep. 30, 2014
Segment information:	'
Segment information:	'
	9. Segment information:

	The Company operates as one operating segment. The Company’s service revenue and long lived assets by geographic region are as follows (in thousands):

		Three Months		Three Months		Nine Months		Nine Months
		Ended		Ended		Ended		Ended
		September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
	Revenues
	North America	$	76,089	$	69,327	$	223,701	$	203,923
	Europe	19,602		18,434		59,551		54,195
	Total	$	95,691	$	87,761	$	283,252	$	258,118

		September 30,		December 31,
		2014		2013
	Long lived assets, net
	North America	$	265,850	$	251,352
	Europe	91,885		89,879
	Total	$	357,735	$	341,231

	The majority of North American revenue consists of services delivered within the United States.

Description_of_the_business_an1

Description of the business and recent developments: (Policies)	9 Months Ended
	Sep. 30, 2014
Description of the business and recent developments:	'
Basis of presentation	'
	Basis of presentation

	The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. While the Company believes that the disclosures are adequate to not make the information misleading, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in its 2013 annual report on Form 10-K.

	The accompanying unaudited consolidated financial statements include all wholly-owned subsidiaries. All inter-company accounts and activity have been eliminated.

Use of estimates	'
	Use of estimates

	The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

Financial instruments	'
	Financial instruments

	At September 30, 2014, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). Based upon recent trading prices (Level 2 — market approach) at September 30, 2014 the fair value of the Company’s $200.0 million senior unsecured notes was $197.0 million and the fair value of the Company’s $240.0 million senior secured notes was $252.0 million.

	The Company was party to letters of credit totaling $0.4 million as of September 30, 2014. These letters of credit are secured by investments that are restricted and included in other assets.

Basic and diluted net income (loss) per common share	'
	Basic and diluted net income (loss) per common share

	Basic earnings per share (“EPS”) excludes dilution for common stock equivalents and is computed by dividing net income or (loss) available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock outstanding during each period, adjusted for the effect of dilutive common stock equivalents.

	Shares of restricted stock are included in the computation of basic EPS as they vest and are included in diluted EPS, to the extent they are dilutive, determined using the treasury stock method. As of September 30, 2014 and 2013, 1.1 million and 1.2 million unvested shares of restricted common stock, respectively, are not included in the computation of basic income per share, as these shares were not vested. Using the “if-converted” method, the shares issuable upon conversion of the Company’s convertible senior notes (the “Convertible Notes”) were anti-dilutive for the three and nine months ended September 30, 2013. Accordingly, that impact has been excluded from the computation of diluted loss per share. The Convertible Notes were convertible into 1.9 million shares of the Company’s common stock at September 30, 2013. The Convertible Notes were repaid in June 2014 and are no longer outstanding. For the three and nine months ended September 30, 2014 and 2013, the Company’s employees exercised options for 7,623, 32,658, 15,839 and 72,802 common shares, respectively.

	The following details the determination of diluted weighted average shares:

		Nine Months Ended	Three Months Ended	Nine Months Ended
		September 30, 2014	September 30, 2013	September 30, 2013
	Weighted average common shares - basic	46,111,192	46,171,194	46,145,642
	Dilutive effect of stock options	62,998	70,557	76,632
	Dilutive effect of restricted stock	352,333	581,416	682,880
	Weighted average common shares - diluted	46,526,523	46,823,167	46,905,154


Recent accounting pronouncements-adopted	'
	Recent Accounting Pronouncements

	On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

	In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Prior to the issuance of ASU 2013-11 there was no explicit guidance on the presentation of unrecognized tax benefits when such carryforwards exist. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position was disallowed. The ASU was effective for fiscal years beginning after December 15, 2013, and interim periods within those years. The adoption of this guidance did not have any effect on our consolidated financial statements.

Description_of_the_business_an2

Description of the business and recent developments: (Tables)	9 Months Ended
	Sep. 30, 2014
Description of the business and recent developments:	'
Schedule of diluted weighted average shares	'

		Nine Months Ended	Three Months Ended	Nine Months Ended
		September 30, 2014	September 30, 2013	September 30, 2013
	Weighted average common shares - basic	46,111,192	46,171,194	46,145,642
	Dilutive effect of stock options	62,998	70,557	76,632
	Dilutive effect of restricted stock	352,333	581,416	682,880
	Weighted average common shares - diluted	46,526,523	46,823,167	46,905,154

Longterm_debt_Tables

Long-term debt: (Tables)	9 Months Ended
Long-term debt: (Tables)	Sep. 30, 2014
Long-term debt:	'
Schedule of debt and equity components for the Convertible Notes	'
	The debt and equity components for the Convertible Notes and of December 31, 2013 were as follows (in thousands):

		December 31,
		2013

	Principal amount	$	91,978
	Unamortized discount	(3,099		)
	Net carrying amount	88,879
	Additional paid-in capital	74,933


Schedule of interest expense recognized and the effective interest rate for the Convertible Notes	'
	The amount of interest expense recognized and effective interest rate for the Convertible Notes were as follows (in thousands):

		Three Months Ended			Nine Months Ended			Nine Months Ended
		September 30, 2013			September 30, 2014			September 30, 2013

	Contractual coupon interest	$	230		$	419		$	690
	Amortization of discount and costs on Notes	1,619			3,106			4,755
	Interest expense	$	1,849		$	3,525		$	5,445
	Effective interest rate	8.7		%	8.7		%	8.7		%

Income_taxes_Tables

Income taxes: (Tables)	9 Months Ended
	Sep. 30, 2014
Income taxes:	'
Schedule of components of income (loss) before income taxes	'
	The components of income (loss) before income taxes consist of the following (in thousands):

		Three Months			Three Months
		Ended			Ended
		September 30, 2014			September 30, 2013

	Domestic	$	7,874		$	8,011
	Foreign	(6,782		)	(5,710		)
	Total	$	1,092		$	2,301

		Nine Months			Nine Months
		Ended			Ended
		September 30, 2014			September 30, 2013

	Domestic	$	23,888		$	22,150
	Foreign	(20,268		)	(17,181		)
	Total	$	3,620		$	4,969

Dividends_on_common_stock_Tabl

Dividends on common stock: (Tables)	9 Months Ended
Dividends on common stock: (Tables)	Sep. 30, 2014
Dividends on common stock:	'
Summary of the Company's quarterly dividends since the initial dividend payment	'
	A summary of the Company’s quarterly dividends paid since its initial dividend payment is as follows (in thousands, except per share amounts):

	Dividend Period	Amount per		Record Date	Payment Date	Dividends Paid
	Dividend Period	Common Share		Record Date	Payment Date	Dividends Paid
	Q3 2012	$	0.10	August 22, 2012	September 12, 2012	$	4,537
	Q4 2012	$	0.11	November 21, 2012	December 12, 2102	$	5,012
	Q1 2013	$	0.12	March 4, 2013	March 15, 2013	$	5,489
	Q2 2013	$	0.13	May 31, 2013	June 18, 2013	$	6,145
	Q3 2013	$	0.14	September 5, 2013	September 25, 2013	$	6,512
	Q4 2013	$	0.37	November 27, 2013	December 20, 2013	$	17,206
	Q1 2014	$	0.39	March 7, 2014	March 27, 2014	$	18,352
	Q2 2014	$	0.17	May 30, 2014	June 18, 2014	$	7,882
	Q3 2014	$	0.30	August 29, 2014	September 19, 2014	$	13,792

Segment_information_Tables

Segment information: (Tables)	9 Months Ended
	Sep. 30, 2014
Segment information:	'
Schedule of service revenues and long lived assets by geographic region	'
	The Company operates as one operating segment. The Company’s service revenue and long lived assets by geographic region are as follows (in thousands):

		Three Months		Three Months		Nine Months		Nine Months
		Ended		Ended		Ended		Ended
		September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
	Revenues
	North America	$	76,089	$	69,327	$	223,701	$	203,923
	Europe	19,602		18,434		59,551		54,195
	Total	$	95,691	$	87,761	$	283,252	$	258,118

		September 30,		December 31,
		2014		2013
	Long lived assets, net
	North America	$	265,850	$	251,352
	Europe	91,885		89,879
	Total	$	357,735	$	341,231

Description_of_the_business_an3

Description of the business and recent developments: (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Aug. 19, 2013	Jan. 26, 2011	Sep. 30, 2014
In Millions, unless otherwise specified		Minimum	Maximum	Senior unsecured notes	Senior unsecured notes	Senior secured notes	Senior secured notes	Senior secured notes	Senior secured notes
		MB	MB		Level 2				Level 2
Financial instruments	'	'	'	'	'	'	'	'	'
Aggregate principal amount of debt issued	'	'	'	$200	'	$240	$65	$175	'
Debt instrument, amount	'	'	'	'	197	'	'	'	252
Letters of credit, outstanding amount	$0.40	'	'	'	'	'	'	'	'
On-net service - high-speed Internet access and IP connectivity	'	'	'	'	'	'	'	'	'
Speed per second of bandwidth (in megabits)	'	100	10,240	'	'	'	'	'	'

Description_of_the_business_an4

Description of the business and recent developments: (Details 2)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Diluted weighted average shares	'	'	'	'
Weighted average common shares-basic	45,629,079	46,171,194	46,111,192	46,145,642
Weighted average common shares-diluted	45,629,079	46,823,167	46,526,523	46,905,154
Convertible senior notes	'	'	'	'
Basic and diluted net (loss) income per common share	'	'	'	'
Number of shares yield after conversion	'	'	'	1,900,000
Restricted stock	'	'	'	'
Basic and diluted net (loss) income per common share	'	'	'	'
Restricted common stock not included in computation of basic income per share as shares were not vested (in shares)	1,100,000	1,200,000	1,100,000	1,200,000
Diluted weighted average shares	'	'	'	'
Dilutive effect of awards (in shares)	'	581,416	352,333	682,880
Stock options	'	'	'	'
Basic and diluted net (loss) income per common share	'	'	'	'
Options exercised during the period (in shares)	7,623	15,839	32,658	72,802
Diluted weighted average shares	'	'	'	'
Dilutive effect of awards (in shares)	'	70,557	62,998	76,632

Property_and_equipment_Details

Property and equipment: (Details) (USD $)	3 Months Ended		9 Months Ended
Property and equipment: (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Property and equipment	'	'	'	'
Depreciation and amortization expense	$17,431,000	$16,024,000	$51,937,000	$47,798,000
Gain on network equipment obtained in exchange transaction	'	'	8,014,000	'
Capitalized salaries and related benefits of employees	2,000,000	1,800,000	5,900,000	5,600,000
Network equipment	'	'	'	'
Property and equipment	'	'	'	'
Gain on network equipment obtained in exchange transaction	'	'	8,000,000	'
Fair market value of equipment received in exchange	'	'	$16,800,000	'

Longterm_debt_Details

Long-term debt: (Details) (USD $)

9 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Apr. 09, 2014

Aug. 19, 2013

Jan. 26, 2011

Sep. 30, 2014

Jun. 20, 2014

Jun. 16, 2014

Jun. 30, 2007

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2008

Dec. 31, 2013

Sep. 30, 2014

Senior unsecured notes

Senior secured notes

Convertible senior notes

Treasury Rate

Minimum

Maximum

Prior to April 15, 2017

12-month period beginning on April 15, 2017

12-month period beginning on April 15, 2018

12-month period beginning on April 15, 2019

12-month period beginning on April 15, 2020 and thereafter

Cogent Finance

June 15, 2014, 2017 and 2022

After June 20, 2014

Long-term debt

Aggregate principal amount of debt issued

$200,000,000

$65,000,000

$175,000,000

$240,000,000

$200,000,000

$92,000,000

Interest rate (as a percent)

5.63%

8.38%

1.00%

Proceeds from issuance of long-term debt, net of issuance costs

195,800,000

69,900,000

170,500,000

195,100,000

Debt issuance costs

1,000,000

4,500,000

Premium price of debt instrument (as a percent)

109.00%

Senior secured notes, premium (in dollars)

4,535,000

5,423,000

5,900,000

Percentage of principal amount that the holders of the Convertible Notes may require the Company to repurchase

100.00%

104.22%

102.81%

101.41%

100.00%

Percentage of outstanding principal amount used in calculation of make-whole premium

1.00%

Percentage of redemption price of principal amount accrued interest

104.22%

Discount rate used to compute make-whole premium, basis points added to reference rate (as a percent)

0.50%

Maximum percentage of principal amount of debt instrument which the entity may redeem with proceeds from certain equity offerings

35.00%

Percentage of redemption price which may redeem with net cash proceeds from certain equity offerings

105.63%

Percentage of principal amount at which notes will be required to be repurchased in the event of a change of control

101.00%

Consolidated leverage ratio to restrict on incurring additional indebtedness

Permitted investments and payments

150,000,000

Consolidated leverage ratio to be maintained to increase amount of permitted investments and payments by consolidated cash flow

4.25%

Cash and cash equivalents not subject to debt limitations

80,000,000

Percentage of original issuance discount

2.25%

Aggregate face value of debt purchased

108,000,000

Purchase of convertible notes in cash

91,978,000

33,500,000

58,500,000

48,600,000

Debt and equity components for the Convertible Notes

Principal amount

91,978,000

Unamortized discount

-3,099,000

Net carrying amount

88,879,000

Additional paid-in capital

74,933,000

Amount of interest expense recognized and effective interest rate

Contractual coupon interest

230,000

419,000

690,000

Amortization of discount and costs on Notes

1,619,000

3,106,000

4,755,000

Interest expense

$1,849,000

$3,525,000

$5,445,000

Effective interest rate (as a percent)

8.70%

Commitments_and_contingencies_

Commitments and contingencies: (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014
	employee
Commitments and contingencies	'
Number of employees who opted to file an action	70
Leased circuit and dark fiber costs \| Maximum	'
Commitments and contingencies	'
Estimate of possible loss in excess of the amount accrued	2

Income_taxes_Details

Income taxes: (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income taxes:	'	'	'	'
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	'	'	35.00%	35.00%
Components of (loss) income before income taxes	'	'	'	'
Domestic	$7,874	$8,011	$23,888	$22,150
Foreign	-6,782	-5,710	-20,268	-17,181
Income before income taxes	$1,092	$2,301	$3,620	$4,969

Common_stock_buyback_program_D

Common stock buyback program: (Details) (USD $)	3 Months Ended	9 Months Ended
Common stock buyback program: (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Common stock buyback program	'	'	'
Remaining authorized amount of common stock repurchases under the Buyback Program	$47,700,000	$47,700,000	'
Repurchase of common stock (in shares)	475,803	1,402,691	0
Repurchase of common stock, amount	$15,900,000	$48,027,000	'

Dividends_on_common_stock_Deta

Dividends on common stock: (Details) (USD $)

0 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

Sep. 19, 2014

Jun. 18, 2014

Mar. 27, 2014

Dec. 20, 2013

Sep. 25, 2013

Jun. 18, 2013

Mar. 15, 2013

Dec. 12, 2012

Sep. 12, 2012

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Dec. 20, 2013

Nov. 03, 2014

Dec. 12, 2014

Nov. 03, 2014

Minimum

Subsequent Event

Expected

Minimum

Dividends on common stock

Approved quarterly payments under Capital Program

$10,500,000

$10,000,000

$12,000,000

Quarterly payment under return of capital program

10,000,000

Dividend per common share under Capital Program (in dollars per share)

$0.22

Dividends paid

13,792,000

7,882,000

18,352,000

17,206,000

6,512,000

6,145,000

5,489,000

5,012,000

4,537,000

Amount per Common Share (in dollars per share)

$0.30

$0.17

$0.39

$0.37

$0.14

$0.13

$0.12

$0.11

$0.10

$0.86

$0.39

Regular quarterly dividend (in dollars per share)

0.31

Expected value of dividend to be paid

14,100,000

Repurchase of common stock

Repurchase under the common stock buyback program

$15,900,000

$17,900,000

$14,200,000

Related_party_transactions_Det

Related party transactions: (Details) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Lease	'	'	'	'
Office lease	'	'	'	'
Payment for rent and related costs (in dollars)	$0.20	$0.20	$0.40	$0.50
Headquarters building	'	'	'	'
Office lease	'	'	'	'
Number of owners of the LLC	'	'	2	'
Chief Executive Officer \| Headquarters building	'	'	'	'
Office lease	'	'	'	'
Ownership interest of related parties held in the partnership (as a percent)	'	'	51.00%	'
Chief Executive Officer's wife \| Headquarters building	'	'	'	'
Office lease	'	'	'	'
Ownership interest of related parties held in the partnership (as a percent)	'	'	49.00%	'

Segment_information_Details

Segment information: (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
	Sep. 30, 2014	Sep. 30, 2013	segment	Sep. 30, 2013	Dec. 31, 2013
Segment information:	'	'	'	'	'
Number of operating segments	'	'	1	'	'
Geographic information	'	'	'	'	'
Revenues	$95,691	$87,761	$283,252	$258,118	'
Long lived assets, net	357,735	'	357,735	'	341,231
North America	'	'	'	'	'
Geographic information	'	'	'	'	'
Revenues	76,089	69,327	223,701	203,923	'
Long lived assets, net	265,850	'	265,850	'	251,352
Europe	'	'	'	'	'
Geographic information	'	'	'	'	'
Revenues	19,602	18,434	59,551	54,195	'
Long lived assets, net	$91,885	'	$91,885	'	$89,879