Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | COGENT COMMUNICATIONS HOLDINGS, INC. | |
Entity Central Index Key | 1,158,324 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
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 | 45,228,854 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 196,050 | $ 203,591 |
Accounts receivable, net of allowance for doubtful accounts of $1,241 and $1,757, respectively | 31,528 | 30,718 |
Prepaid expenses and other current assets | 19,815 | 17,030 |
Total current assets | 247,393 | 251,339 |
Property and equipment, net | 366,482 | 360,136 |
Deferred tax assets - noncurrent | 42,858 | 45,142 |
Deposits and other assets - $133 and $355 restricted, respectively | 8,363 | 6,199 |
Total assets | 665,096 | 662,816 |
Current liabilities: | ||
Accounts payable | 19,025 | 12,401 |
Accrued and other current liabilities | 40,896 | 38,355 |
Installment payment agreement, current portion, net of discount of $540 and $678, respectively | 13,406 | 11,901 |
Current maturities, capital lease obligations | 5,584 | 6,247 |
Total current liabilities | 78,911 | 68,904 |
Senior secured 2022 notes, net of unamortized debt costs of $1,209 and $1,252, respectively | 248,791 | 248,748 |
Senior unsecured 2021 notes, net of unamortized debt costs of $3,171 and $3,305, respectively | 196,829 | 196,695 |
Capital lease obligations, net of current maturities | 131,371 | 129,763 |
Other long term liabilities | 27,576 | 30,977 |
Total liabilities | $ 683,478 | $ 675,087 |
Commitments and contingencies: | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 75,000,000 shares authorized; 45,217,520 and 45,198,718 shares issued and outstanding, respectively | $ 45 | $ 45 |
Additional paid-in capital | 436,793 | 434,161 |
Accumulated other comprehensive income-foreign currency translation | (10,619) | (14,693) |
Accumulated deficit | (444,601) | (431,784) |
Total stockholders' (deficit) equity | (18,382) | (12,271) |
Total liabilities and stockholders' equity | $ 665,096 | $ 662,816 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,241 | $ 1,757 |
Deposits and other assets, restricted (in dollars) | 133 | 355 |
Liabilities and stockholders' equity | ||
Installment payment agreement, discount | $ 540 | $ 678 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 45,217,520 | 45,217,520 |
Common stock, shares outstanding | 45,198,718 | 45,198,718 |
Senior Secured 2022 Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | $ 1,209 | $ 1,252 |
Senior Unsecured Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | $ 3,171 | $ 3,305 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Sales Revenue, Services, Net [Abstract] | ||
Service revenue | $ 108,291 | $ 97,242 |
Operating expenses: | ||
Network operations (including $121 and $172 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below) | 47,277 | 41,079 |
Selling, general, and administrative (including $2,060 and $2,969 of equity-based compensation expense, respectively) | 29,532 | 29,677 |
Depreciation and amortization | 17,753 | 17,513 |
Total operating expenses | 94,562 | 88,269 |
Gains on equipment transactions | 1,946 | 1,548 |
Gain on Lease termination | 10,110 | |
Loss on Debt extinguishment and redemption | (10,144) | |
Operating income | 15,675 | 10,487 |
Interest income and other | 133 | 97 |
Interest expense | (10,065) | (11,307) |
Income (loss) before income taxes | 5,743 | (723) |
Income tax provision | (2,389) | (862) |
Net income (loss) | 3,354 | (1,585) |
Comprehensive income (loss) | ||
Net income (loss) | 3,354 | (1,585) |
Foreign currency translation adjustment | 4,074 | (7,396) |
Comprehensive income (loss) | $ 7,428 | $ (8,981) |
Net income (loss) per common share: | ||
Basic and diluted net (loss) income per common share (in dollars per share) | $ 0.08 | $ (0.04) |
Dividends declared per common share (in dollars per share) | $ 0.36 | $ 0.35 |
Weighted-average common shares - basic (in shares) | 44,402,640 | 45,158,250 |
Weighted-average common shares - diluted (in shares) | 44,571,937 | 45,158,250 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Network operations, equity-based compensation expense | $ 121 | $ 172 |
Selling, general, and administrative, equity-based compensation expense | $ 2,060 | $ 2,969 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 3,354 | $ (1,585) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 17,753 | 17,513 |
Amortization of debt discount and premium | 216 | (164) |
Equity-based compensation expense (net of amounts capitalized) | 2,181 | 3,141 |
Loss on Debt extinguishment and redemption | 10,144 | |
Gain on capital lease termination | (10,110) | |
(Gains) losses - equipment transactions and other, net | (2,186) | (1,022) |
Deferred income taxes | 2,323 | 822 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (387) | 2,123 |
Prepaid expenses and other current assets | (2,217) | (4,550) |
Accounts payable, accrued liabilities and other long-term liabilities | 8,379 | 2,088 |
Deposits and other assets | (1,859) | (28) |
Net cash provided by operating activities | 27,557 | 18,372 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (15,034) | (12,916) |
Net cash used in investing activities | (15,034) | (12,916) |
Cash flows from financing activities: | ||
Dividends paid | (16,171) | (16,001) |
Purchases of common stock | (8,119) | |
Net proceeds from issuance of senior secured 2022 notes | 248,659 | |
Redemption of senior secured 2018 notes | (251,280) | |
Proceeds from exercises of stock options | 206 | 130 |
Principal payments of installment payment agreement | 2,184 | |
Principal payments of capital lease obligations | (3,369) | (3,650) |
Net cash used in financing activities | (21,518) | (30,261) |
Effect of exchange rates changes on cash | 1,454 | (2,935) |
Net decrease in cash and cash equivalents | (7,541) | (27,740) |
Cash and cash equivalents, beginning of period | 203,591 | 287,790 |
Cash and cash equivalents, end of period | 196,050 | 260,050 |
Non-cash investing and financing activities: | ||
Non-cash component of network equipment obtained in exchange transactions | 1,946 | 3,956 |
PP&E obtained for installment payment agreement | 1,704 | |
Capital lease obligations incurred | $ 3,281 | $ 4,217 |
Description of the business and
Description of the business and recent developments: | 3 Months Ended |
Mar. 31, 2016 | |
Description of the business and summary of significant accounting policies: | |
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. 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 Asia. 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 corporate and net-centric customers. 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. 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 carrier neutral data centers 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. 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 annual report on Form 10-K for the year ended December 31, 2015. 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 March 31, 2016, 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 March 31, 2016 the fair value of the Company’s $200.0 million senior unsecured notes was $196.0 million and the fair value of the Company’s $250.0 million senior secured notes was $247.5 million. The Company was party to letters of credit totaling $0.1 million as of March 31, 2016. These letters of credit are secured by investments that are restricted and included in other assets. Gross receipts taxes, universal service fund and other surcharges Revenue recognition standards include guidance relating to taxes or surcharges assessed by a governmental authority that are directly imposed on a revenue-producing transaction between a seller and a customer and may include, but are not limited to, gross receipts taxes, excise taxes, Universal Service Fund fees and certain state regulatory fees. Such charges may be presented gross or net based upon the Company’s accounting policy election. The Company records certain excise taxes and surcharges on a gross basis and includes them in its revenues and costs of network operations. Excise taxes and surcharges billed to customers and recorded on a gross basis (as service revenue and network operations expense) were $2.0 million and $0.1 million for the three months ended March 31, 2016 and March 31, 2015, respectively. 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. For the three months ended March 31, 2016 and 2015, the Company’s employees exercised options for 9,510 and 6,459 common shares, respectively. The following details the determination of diluted weighted average shares for the three months ended March 31, 2016: Three Months Ended March 31, 2016 Weighted average common shares - basic Dilutive effect of stock options Dilutive effect of restricted stock Weighted average common shares - diluted The following details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding: March 31, 2016 March 31, 2015 Unvested shares of restricted common stock Anti-dilutive options for common stock Anti-dilutive shares of restricted common stock — Recent accounting pronouncements—to be adopted In February 2016, the FASB issued ASU No. 2016-02, Leases . The ASU will replace most existing accounting for lease guidance when it becomes effective. The new standard is effective for the Company beginning on January 1, 2019. Early application is permitted. The standard must be adopted using the modified retrospective approach. The standard will require the Company to record a right to use asset and a lease liability for most of the Company’s leases including the Company’s leases currently treated as operating leases. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures and has not yet determined the effect of the standard on its ongoing financial reporting. In May 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 the Company beginning on January 1, 2018. Early application is permitted for annual periods beginning after December 31, 2016. 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. |
Property and equipment_
Property and equipment: | 3 Months Ended |
Mar. 31, 2016 | |
Property and equipment: | |
Property and equipment: | 2. Property and equipment: Depreciation and amortization expense related to property and equipment and capital leases was $17.8 million and $17.5 million for the three months ended March 31, 2016 and 2015, respectively. The Company capitalized salaries and related benefits of employees working directly on the construction and build-out of its network of $2.2 million and $2.2 million for the three months ended March 31, 2016 and 2015, respectively. Exchange agreement In the three months ended March 31, 2016 and 2015, the Company exchanged certain used network equipment and cash consideration for new network equipment. The fair value of the equipment received was estimated to be $5.1 million and $6.6 million, respectively, and after considering the cash component the transactions resulted in gains of $1.9 million and $1.5 million, respectively. 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). Purchase and installment payment agreements In January 2015, the Company entered into a purchase agreement with a vendor. Under the purchase agreement the Company was required to purchase a total of $28.9 million of network equipment during the eighteen month term. As of March 31, 2016, the Company completed the purchases required under the purchase agreement. In March 2015, the Company entered into an installment payment agreement (“IPA”) with this vendor. Under the IPA the Company was able to purchase up to $25.0 million of network equipment in exchange for interest free note obligations each with a twenty-four month term. There are no payments under each note obligation for the first six months followed by eighteen equal installment payments for the remaining eighteen month term. As of March 31, 2016, and December 31, 2015 there was $19.0 million and $21.2 million, respectively, of note obligations outstanding under the IPA, secured by the related equipment. The Company recorded the net present value of the note obligation utilizing an imputed interest rate. The resulting discount was $0.6 million and $0.8 million as of March 31, 2016 and December 31, 2015, respectively, and is being amortized over the note term using the effective interest rate method. Gain on capital lease termination In March 2015 the Company elected to terminate certain IRU capital lease obligations in Spain with a vendor. The Company has obtained alternative fiber to serve its customers in Spain. Under its estimate of the termination provisions of the related contracts the Company has recorded an estimated termination liability of $8.1 million included in accrued and other current liabilities. The difference between the remaining carrying amount of the related IRU capital lease liabilities ($29.9 million), the remaining net book value of the IRU assets ($10.0 million) and the termination liability and amounts due through the termination date was recorded as a gain on capital lease termination of $10.1 million. |
Long-term debt_
Long-term debt: | 3 Months Ended |
Mar. 31, 2016 | |
Long-term debt: | |
Long-term debt: | 3. Long-term debt: Debt extinguishment, redemption and new debt issuance- $250.0 million In March 2015, Group redeemed its $240.0 million 8.375% senior notes due in 2018 (the “2018 Notes”) with the proceeds from its February 2015 issuance of $250.0 million of 5.375% senior secured notes (the “2022 Notes”) and existing cash on hand. In February 2015 the Company deposited $251.6 million with the trustee for the benefit of the holders of the 2018 Notes in order to redeem on March 12, 2015 the entire outstanding amount of 2018 Notes at a redemption price of 104.188% of the $240.0 million principal amount thereof plus accrued and unpaid interest. As a result of this transaction the Company incurred a loss on debt extinguishment and redemption of $10.1 million in the three months ended March 31, 2015. The 2022 Notes were sold in private offerings for resale to qualified institutional buyers pursuant to SEC Rule 144A and mature on March 1, 2022. Interest accrues at 5.375% beginning on February 20, 2015 and is paid semi-annually in arrears on March 1 and September 1 of each year, commencing on September 1, 2015. The net proceeds from the offering were $248.7 million after deducting discounts and commissions and offering expenses. The net proceeds from the offering are intended to be used for general corporate purposes. Senior unsecured notes- $200.0 million 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. 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. The net proceeds from the offering were $195.8 million after deducting discounts and commissions and offering expenses. The net proceeds from the offering are intended to be used for general corporate purposes. Limitations under the Indentures The indentures governing the 2022 and 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 indentures is greater than 5.0. Permitted investments and payments that are not restricted total $27.1 million as of March 31, 2016 plus Holdings permitted investments of $0.8 million as of March 31, 2016 which are not subject to these limitations for a total permitted investment amount of $27.9 million as of March 31, 2016. This amount may be increased by the Company’s consolidated cash flow, as defined in the indentures, as long as the Company’s consolidated leverage ratio is less than 4.25. The Company’s consolidated leverage ratio is currently above 4.25 so as of March 31, 2016 no amounts other than those described above are available for permitted investments including dividends and stock purchases. Senior secured notes- $240.0 million On January 26, 2011 and on August 19, 2013, the Company issued its 8.375% 2018 Notes 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 2018 Notes were secured and bore interest at 8.375% per annum. Interest was 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 its 2018 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 2018 Notes. The 2018 Notes sold in August 2013 were sold at 109.00% of par value. The resulting $5.9 million premium was being amortized as a reduction to interest expense to the maturity date using the effective interest rate method. In March 2015, the 2018 Notes were extinguished and redeemed with the proceeds of the Company’s issuance of its $250.0 million of 2022 Notes and cash on hand. |
Commitments and contingencies_
Commitments and contingencies: | 3 Months Ended |
Mar. 31, 2016 | |
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 $2.5 million in excess of the amount accrued at March 31, 2016. 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 United States in violation of the Fair Labor Standards Act. The lawsuit sought 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 retained the right to file an individual action. Approximately 70 former employees did so. The Company has settled a number of the cases that were filed and made the required settlement payments. Currently, only one case in California remains (Ambrosia v. Cogent Communications, Inc. in the U. S. District Court for the Northern District of California). On January 4, 2016, the judge provisionally certified a class and collective action related to the employees in California. The Company has sought appellate review of the decision. 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 ordinary 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: | 3 Months Ended |
Mar. 31, 2016 | |
Income taxes: | |
Income taxes: | 5. Income taxes: The components of income (loss) before income taxes consist of the following (in thousands): Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Domestic $ $ ) Foreign ) Total $ $ ) |
Common stock buyback program_
Common stock buyback program: | 3 Months Ended |
Mar. 31, 2016 | |
Common stock buyback program: | |
Common stock buyback program: | 6. Common stock buyback program: The Company’s Board of Directors has approved purchases of the Company’s common stock under a buyback program (the “Buyback Program”) through December 31, 2016. At March 31, 2016, there was approximately $47.8 million remaining for purchases under the Buyback Program. During the three months ended March 31, 2015 the Company purchased 0.2 million shares of its common stock for $8.1 million. There were no purchases of common stock during the three months ended March 31, 2016. |
Dividends on common stock_
Dividends on common stock: | 3 Months Ended |
Mar. 31, 2016 | |
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 $12.0 million each quarter. Amounts paid under the Capital Program are in addition to the Company’s regular quarterly dividend payments. On May 4, 2016, the Company’s Board of Directors approved the payment of our quarterly dividend of $0.37 per common share. The dividend for the second quarter of 2016 will be paid to holders of record on May 20, 2016. This estimated $16.4 million dividend payment is expected to be made on June 7, 2016. The payment of any future dividends and any other returns of capital, including stock buybacks and our Capital Program, 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, limitations under the Company’s debt indentures and other factors deemed relevant by the Company’s Board of Directors. The Company is a Delaware Corporation and under the General Corporate Law of the State of Delaware distributions may be restricted including a restriction that distributions, including stock purchases and dividends, do not result in an impairment of a corporation’s capital, as defined under Delaware Law. The indentures governing the Company’s notes limit the Company’s ability to return cash to its stockholders. Consequently, on November 2, 2015, the Company’s Board of Directors suspended the $12.0 million quarterly minimum payment under the Capital Program. As the Company’s cash flow increases the indenture covenants permit additional distributions to stockholders. See Note 3 for additional discussion of limitations on the Capital Program. |
Related party transactions_
Related party transactions: | 3 Months Ended |
Mar. 31, 2016 | |
Related party transactions: | |
Related party transactions: | 8. Related party transactions: Office leases The Company’s headquarters was located in an office building owned by Niobium LLC (a successor to 6715 Kenilworth Avenue Partnership). The two owners of Niobium LLC are the Company’s Chief Executive Officer, David Schaeffer, who has a 51% interest in Niobium LLC and his wife who has a 49% interest. The lease was scheduled to end on August 31, 2016 and was cancellable by the Company upon 60 days’ notice. The Company terminated the lease effective as of May 10, 2015. In April 2015, the Company entered into a new lease agreement for its headquarters building with Sodium LLC whose two owners are the Company’s Chief Executive Officer, who has a 51% interest in Sodium LLC and his wife who has a 49% interest. The Company moved into the new headquarters building in May 2015. The fixed annual rent for the new headquarters building is $1.0 million per year plus an allocation of taxes and utilities. The lease term is for five years and is cancellable by the Company upon 60 days’ notice. The Company’s audit committee reviews and approves all transactions with related parties. The Company paid $0.3 million and $0.1 million in the three months ended March 31, 2016 and 2015, respectively, for rent and related costs (including taxes and utilities) to these lessors for these leases. |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2016 | |
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 Ended March 31, 2016 Three Months Ended March 31, 2015 Revenues North America $ $ Europe Total $ $ March 31, 2016 December 31, 2015 Long lived assets, net North America $ $ Europe Total $ $ The majority of North American revenue consists of services delivered within the United States. |
Description of the business a16
Description of the business and recent developments: (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Description of the business and summary of significant accounting policies: | |
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 annual report on Form 10-K for the year ended December 31, 2015. 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 March 31, 2016, 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 March 31, 2016 the fair value of the Company’s $200.0 million senior unsecured notes was $196.0 million and the fair value of the Company’s $250.0 million senior secured notes was $247.5 million. The Company was party to letters of credit totaling $0.1 million as of March 31, 2016. These letters of credit are secured by investments that are restricted and included in other assets. |
Gross receipts taxes, universal service fund and other surcharges | Gross receipts taxes, universal service fund and other surcharges Revenue recognition standards include guidance relating to taxes or surcharges assessed by a governmental authority that are directly imposed on a revenue-producing transaction between a seller and a customer and may include, but are not limited to, gross receipts taxes, excise taxes, Universal Service Fund fees and certain state regulatory fees. Such charges may be presented gross or net based upon the Company’s accounting policy election. The Company records certain excise taxes and surcharges on a gross basis and includes them in its revenues and costs of network operations. Excise taxes and surcharges billed to customers and recorded on a gross basis (as service revenue and network operations expense) were $2.0 million and $0.1 million for the three months ended March 31, 2016 and March 31, 2015, respectively. |
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. For the three months ended March 31, 2016 and 2015, the Company’s employees exercised options for 9,510 and 6,459 common shares, respectively. The following details the determination of diluted weighted average shares for the three months ended March 31, 2016: Three Months Ended March 31, 2016 Weighted average common shares - basic Dilutive effect of stock options Dilutive effect of restricted stock Weighted average common shares - diluted The following details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding: March 31, 2016 March 31, 2015 Unvested shares of restricted common stock Anti-dilutive options for common stock Anti-dilutive shares of restricted common stock — |
Recent accounting pronouncements-to be adopted | Recent accounting pronouncements—to be adopted In February 2016, the FASB issued ASU No. 2016-02, Leases . The ASU will replace most existing accounting for lease guidance when it becomes effective. The new standard is effective for the Company beginning on January 1, 2019. Early application is permitted. The standard must be adopted using the modified retrospective approach. The standard will require the Company to record a right to use asset and a lease liability for most of the Company’s leases including the Company’s leases currently treated as operating leases. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures and has not yet determined the effect of the standard on its ongoing financial reporting. In May 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 the Company beginning on January 1, 2018. Early application is permitted for annual periods beginning after December 31, 2016. 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. |
Description of the business a17
Description of the business and recent developments: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Description of the business and summary of significant accounting policies: | |
Schedule of diluted weighted average shares | Three Months Ended March 31, 2016 Weighted average common shares - basic Dilutive effect of stock options Dilutive effect of restricted stock Weighted average common shares - diluted |
Schedule of unvested and antidiluted shares | March 31, 2016 March 31, 2015 Unvested shares of restricted common stock Anti-dilutive options for common stock Anti-dilutive shares of restricted common stock — |
Income taxes_ (Tables)
Income taxes: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income taxes: | |
Schedule of components of income (loss) before income taxes | Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Domestic $ $ ) Foreign ) Total $ $ ) |
Segment information_ (Tables)
Segment information: (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment information: | |
Schedule of service revenues and long lived assets by geographic region | Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Revenues North America $ $ Europe Total $ $ March 31, 2016 December 31, 2015 Long lived assets, net North America $ $ Europe Total $ $ |
Description of the business a20
Description of the business and recent developments: (Details) | 3 Months Ended |
Mar. 31, 2016MB | |
Minimum | |
On-net service - high-speed Internet access and IP connectivity | |
Speed per second of bandwidth (in megabits) | 100 |
Maximum | |
On-net service - high-speed Internet access and IP connectivity | |
Speed per second of bandwidth (in megabits) | 100 |
Description of the business a21
Description of the business and recent developments: Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial instruments | ||
Senior unsecured notes | $ 196,829 | $ 196,695 |
Letters of credit, outstanding amount | 100 | |
Senior Unsecured Notes | ||
Financial instruments | ||
Senior unsecured notes | 200,000 | |
Senior Unsecured Notes | Level 2 | ||
Financial instruments | ||
Debt instrument, fair value amount | 196,000 | |
Senior Secured Notes | ||
Financial instruments | ||
Senior secured notes | 250,000 | |
Senior Secured Notes | Level 2 | ||
Financial instruments | ||
Debt instrument, fair value amount | $ 247,500 |
Description of the business a22
Description of the business and recent developments: Gross receipts taxes, universal service fund and other surcharges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Gross receipts taxes, universal service fund and other surcharges | ||
Excise and Sales Taxes | $ 2 | $ 0.1 |
Description of the business a23
Description of the business and recent developments: Basic and diluted net (loss) income per common share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic and diluted net (loss) income per common share | ||
Weighted average common shares-diluted | 44,571,937 | 45,158,250 |
Weighted-average common shares - basic (in shares) | 44,402,640 | 45,158,250 |
Restricted stock | ||
Basic and diluted net (loss) income per common share | ||
Dilutive effect of awards (in shares) | 134,817 | |
Diluted weighted average shares | ||
Unvested shares of restricted common stock | 807,973 | 1,211,929 |
Anti-dilutive shares | 3,360 | |
Stock options | ||
Basic and diluted net (loss) income per common share | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 9,510 | 6,459 |
Dilutive effect of awards (in shares) | 34,480 | |
Diluted weighted average shares | ||
Anti-dilutive shares | 111,897 | 98,102 |
Property and equipment_ Propert
Property and equipment: Property and equipment additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property and equipment | ||
Depreciation and amortization expense | $ 17,753 | $ 17,513 |
Capitalized salaries and related benefits of employees | 2,200 | 2,200 |
Gain (Loss) on Asset Exchange Transactions | 1,946 | 3,956 |
Property, equipment and capital leases | ||
Property and equipment | ||
Depreciation and amortization expense | 17,800 | 17,500 |
Network equipment | ||
Property and equipment | ||
Gain (Loss) on Asset Exchange Transactions | 1,900 | 1,500 |
Network equipment | Level 3 | ||
Property and equipment | ||
Fair market value of equipment received in exchange | $ 5,100 | $ 6,600 |
Property and equipment_ Purchas
Property and equipment: Purchase and installment payment agreements (Details) - Network equipment $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2015 | Jan. 31, 2015USD ($) | Mar. 31, 2016USD ($)payment | Dec. 31, 2015USD ($) | |
Equipment purchase agreement | ||||
Purchase agreement | $ 28.9 | |||
Term of purchase agreement | 18 months | |||
Note obligations | ||||
Installment payment agreement | ||||
Amount of installment payment agreement | $ 25 | |||
Term of debt | 24 months | |||
Number of payments during the first six months | payment | 0 | |||
Number of equal payments | payment | 18 | |||
Remaining term | 18 months | |||
Outstanding obligation | $ 19 | $ 21.2 | ||
Unamortized discount | $ 0.6 | $ 0.8 |
Property and equipment_ Gain on
Property and equipment: Gain on capital lease termination (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Gain on capital lease termination | ||||
Net book value | $ 366,482 | $ 360,136 | ||
Gain on capital lease termination | $ 10,110 | |||
Vendor in Spain | ||||
Gain on capital lease termination | ||||
Estimated termination liability of IRU capital leases | $ 8,100 | |||
Carrying value of lease liabilities | 29,900 | 29,900 | ||
Gain on capital lease termination | 10,100 | |||
Indefeasible rights of use (IRUs) | Vendor in Spain | ||||
Gain on capital lease termination | ||||
Net book value | $ 10,000 | $ 10,000 |
Long-term debt_ Debt extinguish
Long-term debt: Debt extinguishment, redemption and new debt issuance- $250.0 million (Details) - USD ($) $ in Thousands | Mar. 12, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Apr. 09, 2014 | Aug. 19, 2013 | Jan. 26, 2011 |
Debt extinguishment, redemption and new debt issuance- $250.0 million 2022 Notes | ||||||||
Amount of debt redeemed | $ 251,280 | |||||||
Proceeds from Issuance of Secured Debt | $ 248,659 | |||||||
Senior Secured 2022 Notes | ||||||||
Debt extinguishment, redemption and new debt issuance- $250.0 million 2022 Notes | ||||||||
Interest rate (as a percent) | 5.375% | |||||||
Aggregate principal amount of debt issued | $ 250,000 | |||||||
Proceeds from Issuance of Secured Debt | $ 248,700 | |||||||
Senior Secured 2018 Notes | ||||||||
Debt extinguishment, redemption and new debt issuance- $250.0 million 2022 Notes | ||||||||
Amount of debt redeemed | $ 240,000 | |||||||
Interest rate (as a percent) | 8.375% | 8.375% | 8.375% | 8.375% | ||||
Amount deposited with the trustee for the benefit of the holders | $ 251,600 | |||||||
Aggregate principal amount of debt issued | $ 65,000 | $ 175,000 | ||||||
Percentage of principal amount that the holders of the Convertible Notes may require the Company to repurchase | 104.188% | |||||||
Aggregate face value of debt repurchased | $ 240,000 | |||||||
Senior Unsecured Notes | Cogent Finance | ||||||||
Debt extinguishment, redemption and new debt issuance- $250.0 million 2022 Notes | ||||||||
Interest rate (as a percent) | 5.625% | |||||||
Aggregate principal amount of debt issued | $ 200,000 |
Long-term debt_ Senior unsecure
Long-term debt: Senior unsecured notes- $200.0 million (Details) - Senior Unsecured Notes - Cogent Finance $ in Millions | Apr. 09, 2014USD ($) |
Senior unsecured notes- $200.0 million 2021 Notes | |
Aggregate principal amount of debt issued | $ 200 |
Interest rate (as a percent) | 5.625% |
Proceeds from issuance of long-term debt, net of issuance costs | $ 195.8 |
Long-term debt_ Limitations und
Long-term debt: Limitations under the Indentures (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Limitations under the Indentures | |
Permitted investments and payments | $ 27.9 |
Maximum | |
Limitations under the Indentures | |
Permitted investments and payments | $ 27.1 |
Consolidated leverage ratio to be maintained to increase amount of permitted investments and payments by consolidated cash flow | 4.25 |
Holdings | |
Limitations under the Indentures | |
Permitted investments and payments | $ 0.8 |
Senior Unsecured Notes | Minimum | |
Limitations under the Indentures | |
Consolidated leverage ratio to restrict on incurring additional indebtedness | 5 |
Long-term debt_ Senior secured
Long-term debt: Senior secured notes-$240.0 millions (Details) - USD ($) $ in Millions | Aug. 19, 2013 | Jan. 26, 2011 | Mar. 31, 2015 | Feb. 28, 2015 |
Senior Secured 2022 Notes | ||||
Senior secured notes-2018 Notes | ||||
Interest rate (as a percent) | 5.375% | |||
Aggregate principal amount of debt issued | $ 250 | |||
Senior Secured 2018 Notes | ||||
Senior secured notes-2018 Notes | ||||
Interest rate (as a percent) | 8.375% | 8.375% | 8.375% | |
Aggregate principal amount of debt issued | $ 65 | $ 175 | ||
Proceeds from issuance of long-term debt, net of issuance costs | 69.9 | 170.5 | ||
Debt issuance costs | 1 | $ 4.5 | ||
Senior secured notes, premium (in dollars) | $ 5.9 | |||
Premium price of debt instrument (as a percent) | 109.00% |
Commitments and contingencies_
Commitments and contingencies: (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)employee | |
Former Sales Employees Fair Labor Standards Act | |
Commitments and contingencies | |
Number of employees who opted to file an action | employee | 70 |
Maximum | Leased circuit and dark fiber costs | |
Commitments and contingencies | |
Estimate of possible loss in excess of the amount accrued | $ | $ 2.5 |
Income taxes_ (Details)
Income taxes: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Components of (loss) income before income taxes | ||
Domestic | $ 11,387 | $ (5,176) |
Foreign | (5,644) | 4,453 |
Income (loss) before income taxes | $ 5,743 | $ (723) |
Common stock buyback programs_
Common stock buyback programs: (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Common stock buyback program: | ||
Remaining authorized amount of common stock repurchases under the Buyback Program | $ 47.8 | |
Repurchase of common stock (in shares) | 0 | 200,000 |
Cost of shares of common stock repurchase under buyback program | $ 8.1 |
Dividends on common stock_ (Det
Dividends on common stock: (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 07, 2016 | May. 04, 2016 | Nov. 02, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 20, 2013 |
Dividends on common stock and return of capital program | |||||||
Dividends declared per common share (in dollars per share) | $ 0.37 | $ 0.36 | $ 0.35 | ||||
Stock Buyback Amount During the Period | $ 8,100 | ||||||
Dividends paid | $ 16,171 | $ 16,001 | |||||
Amount of suspended dividends | $ 12,000 | ||||||
Expected | |||||||
Dividends on common stock and return of capital program | |||||||
Dividends paid | $ 16,400 | ||||||
Minimum | |||||||
Dividends on common stock and return of capital program | |||||||
Capital Program Amount | $ 12,000 | $ 10,000 |
Related party transactions_ (De
Related party transactions: (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | |
Apr. 30, 2015USD ($)item | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | May. 10, 2015item | |
Office lease | ||||
Payment for rent and related costs (in dollars) | $ | $ 0.3 | $ 0.1 | ||
Niobium LLC | ||||
Office lease | ||||
Number of owners of the LLC | item | 2 | |||
Niobium LLC | Lease | ||||
Office lease | ||||
Notice period for cancellation of lease | 60 days | |||
Sodium LLC | ||||
Office lease | ||||
Number of owners of the LLC | item | 2 | |||
Sodium LLC | Lease | ||||
Office lease | ||||
Notice period for cancellation of lease | 60 days | |||
Fixed annual rent | $ | $ 1 | |||
Lease term (in years) | 5 years | |||
Chief Executive Officer | Niobium LLC | ||||
Office lease | ||||
Ownership interest of related parties held in the partnership (as a percent) | 51.00% | |||
Chief Executive Officer | Sodium LLC | ||||
Office lease | ||||
Ownership interest of related parties held in the partnership (as a percent) | 51.00% | |||
Chief Executive Officer's wife | Niobium LLC | ||||
Office lease | ||||
Ownership interest of related parties held in the partnership (as a percent) | 49.00% | |||
Chief Executive Officer's wife | Sodium LLC | ||||
Office lease | ||||
Ownership interest of related parties held in the partnership (as a percent) | 49.00% |
Segment information_ (Details)
Segment information: (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment information | |||
Number of operating segments | segment | 1 | ||
Revenues | $ 108,291 | $ 97,242 | |
Long lived assets, net | 366,510 | $ 360,163 | |
North America | |||
Segment information | |||
Revenues | 90,053 | 79,638 | |
Long lived assets, net | 287,636 | 285,187 | |
Europe | |||
Segment information | |||
Revenues | 18,238 | $ 17,604 | |
Long lived assets, net | $ 78,874 | $ 74,976 |