Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,498,751 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 263,196 | $ 274,319 |
Accounts receivable, net of allowance for doubtful accounts of $1,543 and $1,734, respectively | 33,698 | 33,598 |
Prepaid expenses and other current assets | 20,944 | 19,706 |
Total current assets | 317,838 | 327,623 |
Property and equipment, net | 368,938 | 361,641 |
Deferred tax assets | 38,914 | 42,241 |
Deposits and other assets ($663 and $128 restricted, respectively) | 6,985 | 6,387 |
Total assets | 732,675 | 737,892 |
Current liabilities: | ||
Accounts payable | 12,286 | 11,551 |
Accrued and other current liabilities | 45,146 | 47,149 |
Installment payment agreement, current portion, net of discount of $306 and $204, respectively | 4,602 | 2,587 |
Current maturities, capital lease obligations | 7,215 | 6,626 |
Total current liabilities | 69,249 | 67,913 |
Senior secured 2022 notes, net of unamortized debt costs of $2,162 and $2,257, respectively and including premium of $441 and $462, respectively | 373,279 | 373,205 |
Senior unsecured 2021 notes, net of unamortized debt costs of $2,445 and $2,575, respectively | 186,780 | 186,650 |
Capital lease obligations, net of current maturities | 137,917 | 135,335 |
Other long term liabilities | 29,062 | 28,043 |
Total liabilities | 796,287 | 791,146 |
Commitments and contingencies: | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 75,000,000 shares authorized; 45,498,751 and 45,478,787 shares issued and outstanding, respectively | 45 | 45 |
Additional paid-in capital | 445,976 | 442,799 |
Accumulated other comprehensive income-foreign currency translation | (15,865) | (17,193) |
Accumulated deficit | (493,768) | (478,905) |
Total stockholders' deficit | (63,612) | (53,254) |
Total liabilities and stockholders' equity | $ 732,675 | $ 737,892 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,543 | $ 1,734 |
Deposits and other assets, restricted (in dollars) | 663 | 128 |
Liabilities and stockholders' equity | ||
Installment payment agreement, discount | 306 | 204 |
Unamortized debt premium | $ 441 | $ 462 |
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 | 45,498,751 | 45,478,787 |
Common stock, shares outstanding | 45,498,751 | 45,478,787 |
2022 Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | $ 2,162 | $ 2,257 |
2021 Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | $ 2,445 | $ 2,575 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Service Revenue | ||
Service revenue | $ 117,203 | $ 108,291 |
Operating expenses: | ||
Network operations (including $111, and $121 of equity-based compensation expense, respectively, exclusive of depreciation and amortization show separately below) | 50,662 | 47,277 |
Selling, general, and administrative (including $2,536 and $2,060 of equity-based compensation expense, respectively) | 31,461 | 29,532 |
Depreciation and amortization | 18,538 | 17,753 |
Total operating expenses | 100,661 | 94,562 |
Gains on equipment transactions | 2,124 | 1,946 |
Operating income | 18,666 | 15,675 |
Interest income and other, net | 854 | 133 |
Interest expense | (11,891) | (10,065) |
Income before income taxes | 7,629 | 5,743 |
Income tax provision | (3,493) | (2,389) |
Net income | 4,136 | 3,354 |
Comprehensive income: | ||
Net income | 4,136 | 3,354 |
Foreign currency translation adjustment | 1,328 | 4,074 |
Comprehensive income | $ 5,464 | $ 7,428 |
Net income per common share: | ||
Basic and diluted net income per common share (in dollars per share) | $ 0.09 | $ 0.08 |
Dividends declared per common share (in dollars per share) | $ 0.42 | $ 0.36 |
Weighted-average common shares - basic (in shares) | 44,649,645 | 44,402,640 |
Weighted-average common shares - diluted (in shares) | 44,917,014 | 44,593,710 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Network operations, equity-based compensation expense | $ 111 | $ 121 |
Selling, general, and administrative, equity-based compensation expense | $ 2,536 | $ 2,060 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 4,136 | $ 3,354 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,538 | 17,753 |
Amortization of debt discount and premium | 280 | 216 |
Equity-based compensation expense (net of amounts capitalized) | 2,647 | 2,181 |
Gains - equipment transactions and other, net | (2,172) | (2,186) |
Deferred income taxes | 3,229 | 2,323 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 43 | (387) |
Prepaid expenses and other current assets | (1,067) | (2,217) |
Accounts payable, accrued liabilities and other long-term liabilities | (1,660) | 8,379 |
Deposits and other assets | (460) | (1,859) |
Net cash provided by operating activities | 23,514 | 27,557 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (12,249) | (15,034) |
Net cash used in investing activities | (12,249) | (15,034) |
Cash flows from financing activities: | ||
Dividends paid | (18,999) | (16,171) |
Proceeds from exercises of stock options | 300 | 206 |
Principal payments on installment payment agreement | (218) | (2,184) |
Principal payments of capital lease obligations | (3,854) | (3,369) |
Net cash used in financing activities | (22,771) | (21,518) |
Effect of exchange rate changes on cash | 383 | 1,454 |
Net decrease in cash and cash equivalents | (11,123) | (7,541) |
Cash and cash equivalents, beginning of period | 274,319 | 203,591 |
Cash and cash equivalents, end of period | 263,196 | 196,050 |
Supplemental disclosure of non-cash financing activities: | ||
Non-cash component of network equipment obtained in exchange transactions | 2,124 | 1,946 |
PP&E obtained for installment payment agreement | 3,307 | |
Capital lease obligations incurred | $ 5,957 | $ 3,281 |
Description of the business and
Description of the business and recent developments: | 3 Months Ended |
Mar. 31, 2017 | |
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. 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 consortiums of universities, 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, 2016. 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, 2017, 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, 2017 the fair value of the Company’s $189.2 million senior unsecured notes was $193.5 million and the fair value of the Company’s $375.0 million senior secured notes was $387.2 million. The Company was party to letters of credit totaling $0.7 million as of March 31, 2017. 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 $2.6 million and $2.0 million for the three months ended March 31, 2017 and March 31, 2016, 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, 2017 and 2016, the Company’s employees exercised options for 11,918 and 9,510 common shares, respectively. The following details the determination of diluted weighted average shares: Three Months Ended Three Months Ended 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, 2017 March 31, 2016 Unvested shares of restricted common stock Anti-dilutive options for common stock Recent Accounting Pronouncements—to be Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This ASU will replace most existing lease accounting 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 for all leases that exist at or commence after the beginning of the earliest comparative period presented (with the option to apply certain practical expedients), which for the Company will be the period beginning January 1, 2017. The standard will require the Company to record a right to use asset and a lease liability for most of its leases, including its 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 will elect to apply certain practical expedients. The Company has not yet determined the effect of the standard on its ongoing financial reporting or quantified the impact to its balance sheet, however it does expect that the right to use asset and lease liability recorded will be material. The Company does not expect to early adopt this ASU. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), 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, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. This ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. Early application is permitted for annual periods beginning after December 15, 2016. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company anticipates adopting ASU 2014-09 using the modified retrospective transition method on January 1, 2018. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. The Company does not expect to early adopt this ASU. The Company has not quantified the effect of adopting ASU 2014-09, however it anticipates that the period for which it recognizes revenue for fees billed in connection with customer installations will change. The Company expects that revenues will be recognized over the contract term for installation fees associated with customer contracts with terms that are longer than month-to-month, which may be a shorter period than the average customer life currently used, because the fee does not give rise to a material right as defined by ASU 2014-09. The Company expects that revenues will be recognized over the estimated average customer life for installation fees associated with month-to-month contracts, because the fee represents a material right as defined by ASU 2014-09. The impact of adopting the new standard on the Company’s total service revenue and operating income is not expected to be material. Additionally, the Company will be required to capitalize certain contract acquisition costs, including commissions paid to its sales team and agents, and to amortize these costs over the period the services are transferred for commission paid to its sales team and over the remaining contract term for agent commissions. The Company currently expenses these contract acquisition costs as incurred. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments. ” This guidance is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. This new standard is effective for annual and interim reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its financial statements and related disclosures. |
Property and equipment_
Property and equipment: | 3 Months Ended |
Mar. 31, 2017 | |
Property and equipment: | |
Property and equipment: | 2. Property and equipment: Depreciation and amortization expense related to property and equipment and capital leases was $18.5 million and $17.8 million for the three months ended March 31, 2017 and 2016, respectively. The Company capitalized salaries and related benefits of employees working directly on the construction and build-out of its network of $2.4 million and $2.2 million for the three months ended March 31, 2017 and 2016, respectively. Exchange agreement In the three months ended March 31, 2017 and 2016, 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 $4.8 million and $5.1 million, respectively, and after considering the cash component the transactions resulted in gains of $2.1 million and $1.9 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). Installment payment agreement In March 2015, the Company entered into an installment payment agreement (“IPA”) with a vendor. Under the IPA the Company was able to purchase 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, 2017, and December 31, 2016 there was $8.6 million and $5.5 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 $0.4 million and $0.3 million as of March 31, 2017 and December 31, 2016, respectively, and is being amortized over the note term using the effective interest rate method. |
Long-term debt_
Long-term debt: | 3 Months Ended |
Mar. 31, 2017 | |
Long-term debt: | |
Long-term debt: | 3. Long-term debt: Debt extinguishment, redemption and new debt issuances—$375 million 2022 Notes In March 2015, Group redeemed its $240.0 million 8.375% senior notes due in 2018 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. The net proceeds from the offering were $248.6 million after deducting discounts and commissions and offering expenses. In December 2016, the Company issued an additional $125.0 million par value of its 2022 Notes at a premium of 100.375% of par value. The Company received net proceeds of $124.3 million after deducting $1.2 million of offering costs. The $0.5 million premium is amortized as a reduction to interest expense to the maturity date using the effective interest rate method. The net proceeds from these offerings are intended to be used for general corporate purposes. 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. The indenture governing the 2022 Notes provides that the Company and each of the Company’s existing domestic subsidiaries and future material domestic subsidiaries guarantee the 2022 Notes, subject to certain exceptions and permitted liens. The 2022 Notes are also secured by a pledge of all of the equity interests in Group’s domestic subsidiaries and 65% of the equity interests in Group’s first-tier foreign subsidiaries. The 2022 Notes and the subsidiary guarantees will be Group’s and the subsidiary guarantors’ senior indebtedness and will rank pari passu in right of payment with all of Group’s and the subsidiary guarantors’ existing and future senior indebtedness, effectively senior to Group’s senior unsecured indebtedness, including Group’s 2021 Notes described below, to the extent of the value of the collateral securing the 2022 Notes and the subsidiary guarantees and senior to any of the Company’s and the subsidiary guarantors’ future subordinated indebtedness. The 2022 Notes are structurally subordinated to the liabilities of the non-guarantor subsidiaries and are effectively subordinated to Group’s and the subsidiary guarantors’ secured indebtedness to the extent of the value of the collateral securing such indebtedness on a basis senior to the 2022 Notes and the subsidiary guarantees. Holdings is also a guarantor of the 2022 Notes; however Holdings’ guarantee is unsecured and thus its guarantee is not secured by any of Holdings assets. Holdings is also not subject to the covenants under the indenture governing the 2022 Notes. The 2022 Notes may be redeemed prior to December 1, 2021 (three months prior to the maturity date of the Notes) in whole or from time to time in part, at a redemption price equal to the sum of (1) 100% of the principal amount plus accrued and unpaid interest, if any, to, but not including, the redemption date, and (2) a make-whole premium, if any. The make-whole premium is the excess of (1) the net present value, on the redemption date, of the principal being redeemed or paid and the amount of interest (exclusive of interest accrued to the date of redemption) that would have been payable if such redemption had not been made, over (2) the aggregate principal amount of the notes being redeemed or paid. Net present value shall be determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate (as determined in the indenture governing the 2022 Notes) from the respective dates on which such principal and interest would have been payable if such redemption had not been made. In addition, at any time on or after December 1, 2021 (three months prior to the maturity date of the 2022 Notes), the Issuer may redeem the 2022 Notes, in whole and or in part, at a redemption price equal to 100% of the principal amount of the 2022 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Senior unsecured notes—$189.2 million 2021 Notes On April 9, 2014, Cogent Communications Finance, Inc. (“Cogent Finance”), a newly formed financing subsidiary of Group, completed an offering at par of $200.0 million in aggregate principal amount 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 net proceeds from the offering were $195.8 million after deducting commissions and offering expenses. The net proceeds from the offering are intended to be used for general corporate purposes. In the second quarter of 2016, the Company paid $10.9 million for the purchase of $10.8 million of par value and accrued interest on its 2021 Notes reducing the principal amount to $189.2 million and resulting in a loss of $0.2 million. The loss resulted from the write off of the remaining unamortized debt issuance costs related to the purchased notes. 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. The 2021 Notes became Group’s senior unsecured obligations and are guaranteed on a senior unsecured basis by Holdings. The 2021 Notes are effectively subordinated in right of payment to all of Group’s and each guarantor’s secured indebtedness and future secured indebtedness, including the 2022 Notes, 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 rank senior in right of payment to Group’s and each guarantor’s future subordinated debt, if any; and are structurally subordinated in right of payment to all indebtedness and other liabilities of any of the Group’s subsidiaries that are not guarantors, which only consist of immaterial subsidiaries and foreign subsidiaries that do not guarantee other indebtedness of Group. Group may 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. If Group experiences specific kinds of changes of control, Group 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. Limitations under the indentures The indentures governing the 2022 Notes and 2021 Notes, among other things, limit 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. The indentures prohibit certain payments, such as dividends and stock purchases, when the Company’s consolidated leverage ratio, as defined by the indentures, is greater than 4.25. A certain amount of such unrestricted payments is permitted notwithstanding this prohibition. The unrestricted payment 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 as of March 31, 2017. As of March 31, 2017, a total of $128.8 million was permitted for investment payments including dividends and stock purchases. |
Commitments and contingencies_
Commitments and contingencies: | 3 Months Ended |
Mar. 31, 2017 | |
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 circuits for which it is reasonably possible could result in a loss of up to $2.4 million in excess of the amount accrued at March 31, 2017. In December 2011, certain former sales employees of the Company filed a collective action against the Company 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). The parties have agreed to a settlement under which Cogent will pay approximately $3.1 million to settle the claims. The $3.1 million proposed settlement, which was recorded in the fourth quarter of 2016 and is accrued at March 31, 2017 is subject to approval by the court and individual plaintiffs will be able to opt out of the settlement if they wish and pursue claims separately. 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, 2017 | |
Income taxes: | |
Income taxes: | 5. Income taxes: The components of income before income taxes consist of the following (in thousands): Three Months Three Months March 31, 2017 March 31, 2016 Domestic $ $ Foreign ) ) Total $ $ |
Common stock buyback program_
Common stock buyback program: | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017. At March 31, 2017, there was approximately $43.3 million remaining for purchases under the Buyback Program. There were no purchases of common stock during the three months ended March 31, 2017 and three months ended March 31, 2016. |
Dividends on common stock_
Dividends on common stock: | 3 Months Ended |
Mar. 31, 2017 | |
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. On May 3, 2017, the Company’s Board of Directors approved the payment of our quarterly dividend of $0.44 per common share. This dividend for the second quarter of 2017 will be paid to holders of record on May 18, 2017. This estimated $19.7 million dividend payment is expected to be made on June 2, 2017. The payment of any future dividends and any other returns of capital, including stock buybacks 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. |
Related party transactions_
Related party transactions: | 3 Months Ended |
Mar. 31, 2017 | |
Related party transactions: | |
Related party transactions: | 8. Related party transactions: Office leases The Company’s headquarters is located in an office building owned by 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 fixed annual rent for the headquarters building is $1.0 million per year plus an allocation of taxes and utilities. The lease began in May 2015 and the lease term is for five years which 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 $0.3 million in the three months ended March 31, 2017 and 2016, 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, 2017 | |
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 Revenues North America $ $ Europe Total $ $ March 31, December 31, 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, 2017 | |
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 annual report on Form 10-K for the year ended December 31, 2016. 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, 2017, 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, 2017 the fair value of the Company’s $189.2 million senior unsecured notes was $193.5 million and the fair value of the Company’s $375.0 million senior secured notes was $387.2 million. The Company was party to letters of credit totaling $0.7 million as of March 31, 2017. 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 $2.6 million and $2.0 million for the three months ended March 31, 2017 and March 31, 2016, 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, 2017 and 2016, the Company’s employees exercised options for 11,918 and 9,510 common shares, respectively. The following details the determination of diluted weighted average shares: Three Months Ended Three Months Ended 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, 2017 March 31, 2016 Unvested shares of restricted common stock Anti-dilutive options for 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 (“ASU 2016-02”). This ASU will replace most existing lease accounting 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 for all leases that exist at or commence after the beginning of the earliest comparative period presented (with the option to apply certain practical expedients), which for the Company will be the period beginning January 1, 2017. The standard will require the Company to record a right to use asset and a lease liability for most of its leases, including its 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 will elect to apply certain practical expedients. The Company has not yet determined the effect of the standard on its ongoing financial reporting or quantified the impact to its balance sheet, however it does expect that the right to use asset and lease liability recorded will be material. The Company does not expect to early adopt this ASU. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), 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, and also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. This ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. Early application is permitted for annual periods beginning after December 15, 2016. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company anticipates adopting ASU 2014-09 using the modified retrospective transition method on January 1, 2018. Under the modified retrospective method, the cumulative effect of applying the standard would be recognized at the date of initial application. The Company does not expect to early adopt this ASU. The Company has not quantified the effect of adopting ASU 2014-09, however it anticipates that the period for which it recognizes revenue for fees billed in connection with customer installations will change. The Company expects that revenues will be recognized over the contract term for installation fees associated with customer contracts with terms that are longer than month-to-month, which may be a shorter period than the average customer life currently used, because the fee does not give rise to a material right as defined by ASU 2014-09. The Company expects that revenues will be recognized over the estimated average customer life for installation fees associated with month-to-month contracts, because the fee represents a material right as defined by ASU 2014-09. The impact of adopting the new standard on the Company’s total service revenue and operating income is not expected to be material. Additionally, the Company will be required to capitalize certain contract acquisition costs, including commissions paid to its sales team and agents, and to amortize these costs over the period the services are transferred for commission paid to its sales team and over the remaining contract term for agent commissions. The Company currently expenses these contract acquisition costs as incurred. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments. ” This guidance is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. This new standard is effective for annual and interim reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its financial statements and related disclosures. |
Description of the business a17
Description of the business and recent developments: (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Description of the business and recent developments: | |
Schedule of diluted weighted average shares | Three Months Ended Three Months Ended Weighted average common shares - basic Dilutive effect of stock options Dilutive effect of restricted stock Weighted average common shares - diluted |
Schedule of unvested and anti-dilutive shares | March 31, 2017 March 31, 2016 Unvested shares of restricted common stock Anti-dilutive options for common stock |
Income taxes_ (Tables)
Income taxes: (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income taxes: | |
Schedule of components of income before income taxes | The components of income before income taxes consist of the following (in thousands): Three Months Three Months March 31, 2017 March 31, 2016 Domestic $ $ Foreign ) ) Total $ $ |
Segment information_ (Tables)
Segment information: (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment information: | |
Schedule of service revenues and long lived assets by geographic region | The Company’s service revenue and long lived assets by geographic region are as follows (in thousands): Three Months Three Months Revenues North America $ $ Europe Total $ $ March 31, December 31, 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, 2017MB | |
Minimum | |
On-net service - high-speed Internet access and IP connectivity | |
Speed per second of bandwidth (in megabits and gigabits) | 100 |
Maximum | |
On-net service - high-speed Internet access and IP connectivity | |
Speed per second of bandwidth (in megabits and gigabits) | 100 |
Description of the business a21
Description of the business and recent developments: Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial instruments | ||
Senior unsecured notes | $ 186,780 | $ 186,650 |
Letters of credit | 700 | |
Senior Unsecured Notes | Level 2 | ||
Financial instruments | ||
Senior unsecured notes | 189,200 | |
Debt instrument, fair value amount | 193,500 | |
Senior Secured Notes | Level 2 | ||
Financial instruments | ||
Senior secured notes | 375,000 | |
Debt instrument, fair value amount | $ 387,200 |
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, 2017 | Mar. 31, 2016 | |
Gross receipts taxes, universal service fund and other surcharges | ||
Excise taxes and surcharge | $ 2.6 | $ 2 |
Description of the business a23
Description of the business and recent developments: Basic and diluted net income (loss) per common share (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Diluted weighted average shares | ||
Weighted-average common shares - basic (in shares) | 44,649,645 | 44,402,640 |
Weighted average common shares-diluted | 44,917,014 | 44,593,710 |
Restricted stock | ||
Diluted weighted average shares | ||
Dilutive effect of awards (in shares) | 238,979 | 156,590 |
Unvested shares of restricted common stock | 844,195 | 807,973 |
Stock options | ||
Basic and diluted net income (loss) per common share | ||
Options exercised during the period (in shares) | 11,918 | 9,510 |
Diluted weighted average shares | ||
Dilutive effect of awards (in shares) | 28,390 | 34,480 |
Anti-dilutive shares | 48,534 | 111,897 |
Property and equipment_ (Detail
Property and equipment: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property and equipment | ||
Depreciation and amortization | $ 18,538 | $ 17,753 |
Capitalized salaries and related benefits of employees | 2,400 | 2,200 |
Property, equipment and capital leases | ||
Property and equipment | ||
Depreciation and amortization | $ 18,500 | $ 17,800 |
Property and equipment_ Exchang
Property and equipment: Exchange agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property and equipment | ||
Gains from asset related transactions | $ 2,124 | $ 1,946 |
System infrastructure | ||
Property and equipment | ||
Gains from asset related transactions | 2,100 | 1,900 |
System infrastructure | Level 3 | ||
Property and equipment | ||
Fair value of equipment received in exchange | $ 4,800 | $ 5,100 |
Property and equipment_ Install
Property and equipment: Installment payment agreement (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2015payment | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Installment payment agreement | ||||
Gain (loss) on equipment transactions | $ 2,124 | $ 1,946 | ||
System infrastructure | Note obligations | ||||
Installment payment agreement | ||||
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 | 8,600 | $ 5,500 | ||
Unamortized discount | $ 400 | $ 300 |
Long-term debt_ Debt extinguish
Long-term debt: Debt extinguishment, redemption and new debt issuances $375 million 2022 Notes- (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2016 | Mar. 31, 2015 | Feb. 28, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Debt extinguishment, redemption and new debt issuance | |||||
Premium on debt | $ 11,891 | $ 10,065 | |||
2018 Notes | |||||
Debt extinguishment, redemption and new debt issuance | |||||
Amount of debt redeemed | $ 240,000 | ||||
Interest rate (as a percent) | 8.375% | ||||
2022 Notes | |||||
Debt extinguishment, redemption and new debt issuance | |||||
Interest rate (as a percent) | 5.375% | ||||
Aggregate principal amount of debt issued | $ 125,000 | $ 250,000 | |||
Net proceeds | $ 124,300 | $ 248,600 | |||
Premium of par value, in percent | 100.375% | ||||
Offering costs | $ 1,200 | ||||
Premium on debt | $ 500 | ||||
Note payment frequency | semi-annually | semi-annually | |||
Percentage of equity interest in foreign entities used as collateral | 65.00% | ||||
2022 Notes | Prior to December 1, 2021 | |||||
Debt extinguishment, redemption and new debt issuance | |||||
Period prior to maturity date may be redeemed at specified price | 3 months | ||||
Principal amount plus accrued and unpaid interest (as a percent) | 100.00% | ||||
2022 Notes | On or after December 1, 2021 | |||||
Debt extinguishment, redemption and new debt issuance | |||||
Period prior to maturity date may be redeemed at specified price | 3 months | ||||
Principal amount plus accrued and unpaid interest (as a percent) | 100.00% |
Long-term debt_ Senior unsecure
Long-term debt: Senior unsecured notes $189.2 Million 2021 Notes (Details) - 2021 Notes - USD ($) $ in Millions | Apr. 09, 2014 | Mar. 31, 2017 | Jun. 30, 2016 |
Senior unsecured notes- $189.2 million 2021 Notes | |||
Percentage of principal amount at which notes will be required to be repurchased in the event of a change of control | 101.00% | ||
12-month period beginning on April 15, 2017 | |||
Senior unsecured notes- $189.2 million 2021 Notes | |||
Principal amount plus accrued and unpaid interest (as a percent) | 104.219% | ||
12-month period beginning on April 15, 2018 | |||
Senior unsecured notes- $189.2 million 2021 Notes | |||
Principal amount plus accrued and unpaid interest (as a percent) | 102.813% | ||
12-month period beginning on April 15, 2019 | |||
Senior unsecured notes- $189.2 million 2021 Notes | |||
Principal amount plus accrued and unpaid interest (as a percent) | 101.406% | ||
12-month period beginning on April 15, 2020 | |||
Senior unsecured notes- $189.2 million 2021 Notes | |||
Principal amount plus accrued and unpaid interest (as a percent) | 100.00% | ||
Cogent Finance | |||
Senior unsecured notes- $189.2 million 2021 Notes | |||
Aggregate principal amount of debt issued | $ 200 | ||
Interest rate (as a percent) | 5.625% | ||
Net proceeds | $ 195.8 | ||
Interest expense on original debt | $ 10.9 | ||
Interest expense on repurchased debt | 10.8 | ||
Repurchased amount | 189.2 | ||
Loss on debt purchases | $ 0.2 | ||
Note payment frequency | semi-annually |
Long-term debt_ Limitations und
Long-term debt: Limitations under the Indentures (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Limitations under the Indentures | |
Permitted investments and payments | $ 128.8 |
Minimum | |
Limitations under the Indentures | |
Consolidated leverage ratio to restrict on incurring additional indebtedness | 5 |
Maximum | |
Limitations under the Indentures | |
Consolidated leverage ratio to be maintained to increase amount of permitted investments and payments by consolidated cash flow | 4.25 |
Commitments and contingencies_
Commitments and contingencies: Current and potential litigation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)caseemployee | |
Current and potential litigation | |
Number of employees who opted to file an action | employee | 70 |
Ambrosia v. Cogent Communications Inc | Pending Litigation | |
Current and potential litigation | |
Number of pending claims | case | 1 |
Settlement amount | $ 3.1 |
Maximum | Leased circuits | |
Current and potential litigation | |
Estimate of possible loss in excess of the amount accrued | $ 2.4 |
Income taxes_ (Details)
Income taxes: (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Components of (loss) income before income taxes | ||
Domestic | $ 12,366 | $ 11,387 |
Foreign | (4,737) | (5,644) |
Income before income taxes | $ 7,629 | $ 5,743 |
Common stock buyback programs_
Common stock buyback programs: (Details) - Buyback Program - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Remaining authorized amount for common stock repurchases | $ 43.3 | |
Repurchase of common stock (in shares) | 0 | 0 |
Dividends on common stock_ (Det
Dividends on common stock: (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 02, 2017 | May 03, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Dividends on common stock and return of capital program | ||||
Dividends declared per common share (in dollars per share) | $ 0.42 | $ 0.36 | ||
Dividends paid | $ 18,999 | $ 16,171 | ||
Expected | ||||
Dividends on common stock and return of capital program | ||||
Dividends declared per common share (in dollars per share) | $ 0.44 | |||
Dividends paid | $ 19,700 |
Related party transactions_ (De
Related party transactions: (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)item | Mar. 31, 2016USD ($) | |
Office lease | ||
Payment for rent and related costs (in dollars) | $ 0.3 | $ 0.3 |
Sodium LLC | ||
Office lease | ||
Number of owners | item | 2 | |
Sodium LLC | Lease | ||
Office lease | ||
Fixed annual rent | $ 1 | |
Lease term (in years) | 5 years | |
Notice period for cancellation of lease | 60 days | |
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 | 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, 2017USD ($)segment | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment information | |||
Number of operating segments | segment | 1 | ||
Service revenue | $ 117,203 | $ 108,291 | |
Long lived assets, net | 368,962 | $ 361,665 | |
North America | |||
Segment information | |||
Service revenue | 97,853 | 90,053 | |
Long lived assets, net | 287,458 | 285,651 | |
Europe | |||
Segment information | |||
Service revenue | 19,350 | $ 18,238 | |
Long lived assets, net | $ 81,504 | $ 76,014 |