Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 000-51829 | |
Entity Registrant Name | COGENT COMMUNICATIONS HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-5706863 | |
Entity Address, Address Line One | 2450 N Street N.W. | |
Entity Address, Country | US | |
Entity Address, City or Town | Washington, D.C | |
Entity Address, Postal Zip Code | 20037 | |
City Area Code | 202 | |
Local Phone Number | 295-4200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CCOI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,673,776 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001158324 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 351,879 | $ 371,301 |
Restricted cash | 3,076 | |
Accounts receivable, net of allowance for credit losses of $1,413 and $1,921, respectively | 43,672 | 44,185 |
Prepaid expenses and other current assets | 37,491 | 40,851 |
Total current assets | 436,118 | 456,337 |
Property and equipment, net | 454,710 | 430,335 |
Right-of-use leased assets | 103,666 | 99,666 |
Deposits and other assets | 14,255 | 14,139 |
Total assets | 1,008,749 | 1,000,477 |
Current liabilities: | ||
Accounts payable | 11,639 | 9,775 |
Accrued and other current liabilities | 57,510 | 51,029 |
Installment payment agreement, current portion, net of discounts of $18 and $136, respectively | 1,850 | 6,786 |
Current maturities, operating lease liabilities | 11,312 | 11,151 |
Current maturities, finance lease obligations | 16,685 | 15,702 |
Total current liabilities | 98,996 | 94,443 |
Operating lease liabilities, net of current maturities | 115,065 | 111,318 |
Finance lease obligations, net of current maturities | 222,854 | 203,438 |
Other long-term liabilities | 28,989 | 14,792 |
Total liabilities | 1,365,516 | 1,293,643 |
Commitments and contingencies: | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 75,000,000 shares authorized; 47,663,276 and 47,214,077 shares issued and outstanding, respectively | 48 | 47 |
Additional paid-in capital | 540,575 | 515,867 |
Accumulated other comprehensive income - foreign currency translation | (8,558) | (1,306) |
Accumulated deficit | (888,832) | (807,774) |
Total stockholders' deficit | (356,767) | (293,166) |
Total liabilities and stockholders' deficit | 1,008,749 | 1,000,477 |
2022 Notes | ||
Current liabilities: | ||
Senior secured notes | 444,492 | |
Senior unsecured 2024 Notes | ||
Current liabilities: | ||
Senior unsecured Notes | 402,447 | $ 425,160 |
Senior secured 2026 Notes | ||
Current liabilities: | ||
Senior secured notes | $ 497,165 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Accounts receivable, allowance for credit losses (in dollars) | $ 1,413 | $ 1,921 |
Liabilities and stockholders' equity | ||
Installment payment agreement, current portion, net of discounts | $ 18 | $ 136 |
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 | 47,663,276 | 47,214,077 |
Common stock, shares outstanding | 47,663,276 | 47,214,077 |
2022 Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | $ 1,052 | |
Unamortized debt premium noncurrent | 544 | |
Senior unsecured 2024 Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | 2,327 | $ 2,961 |
Unamortized debt premium noncurrent | 863 | $ 1,142 |
Senior secured 2026 Notes | ||
Liabilities and stockholders' equity | ||
Unamortized debt costs | 1,217 | |
Unamortized debt premium noncurrent | $ 1,618 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Service revenue | $ 147,927 | $ 142,302 | $ 442,584 | $ 424,205 |
Operating expenses: | ||||
Network operations (including $163 and $346 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below) | 56,645 | 54,519 | 169,920 | 164,326 |
Selling, general, and administrative (including $6,425 and $6,176 of equity-based compensation expense, respectively) | 40,117 | 39,722 | 122,952 | 119,232 |
Depreciation and amortization | 22,609 | 21,619 | 66,675 | 61,022 |
Total operating expenses | 119,371 | 115,860 | 359,547 | 344,580 |
Loss on finance lease amendment | (505) | (423) | ||
Gains on equipment transactions | 99 | 18 | 343 | |
Operating income | 28,556 | 26,036 | 83,055 | 79,545 |
Interest expense | (17,349) | (15,760) | (47,421) | (46,481) |
Realized foreign exchange gain on issuance on 2024 Euro Notes | 2,547 | |||
Unrealized foreign exchange gain (loss) on 2024 Euro Notes | 10,169 | (17,315) | 23,759 | (17,827) |
Interest income and other, net | 648 | 484 | 1,460 | 430 |
Income (loss) before income taxes | 22,024 | (6,555) | 46,155 | 17,576 |
Income tax (provision) benefit | (8,704) | 1,600 | (16,477) | (4,740) |
Net income (loss) | 13,320 | (4,955) | 29,678 | 12,836 |
Comprehensive income: | ||||
Net income (loss) | 13,320 | (4,955) | 29,678 | 12,836 |
Foreign currency translation adjustment | (3,818) | 5,408 | (7,252) | 4,828 |
Comprehensive income | $ 9,502 | $ 453 | $ 22,426 | $ 17,664 |
Net income (loss) per common share: | ||||
Basic net income (loss) per common share (in dollars per share) | $ 0.29 | $ (0.11) | $ 0.64 | $ 0.28 |
Diluted net income (loss) per common share (in dollars per share) | 0.28 | (0.11) | 0.63 | 0.28 |
Dividends declared per common share (in dollars per share) | $ 0.805 | $ 0.705 | $ 2.340 | $ 2.045 |
Weighted-average common shares - basic (in shares) | 46,293,524 | 45,815,718 | 46,290,452 | 45,818,677 |
Weighted-average common shares - diluted (in shares) | 46,866,929 | 45,815,718 | 46,825,948 | 46,598,870 |
2021 Notes | ||||
Operating expenses: | ||||
Loss on debt extinguishment and redemption | $ (638) | |||
2022 Notes | ||||
Operating expenses: | ||||
Loss on debt extinguishment and redemption | $ (14,698) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity-based compensation expense | $ 20,769 | $ 17,679 | ||
Network operations | ||||
Equity-based compensation expense | $ 163 | $ 346 | 2,375 | 903 |
Selling, general and administrative | ||||
Equity-based compensation expense | $ 6,425 | $ 6,176 | $ 18,394 | $ 16,776 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, € in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 29,678 | $ 12,836 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 66,675 | 61,022 |
Amortization of debt costs, discounts and premium | 1,333 | 1,426 |
Equity-based compensation expense (net of amounts capitalized) | 20,769 | 17,679 |
Unrealized (gain) loss on foreign exchange - 2024 Notes | (23,759) | 17,281 |
Realized foreign exchange gain on issuance of 2024 Euro Notes | (2,547) | |
Gains - equipment transactions and other, net | (347) | 80 |
Deferred income taxes | 11,922 | 2,100 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (159) | (1,102) |
Prepaid expenses and other current assets | 1,734 | (3,253) |
Accounts payable, accrued liabilities and other long-term liabilities | 11,752 | (2,783) |
Deposits and other assets | (23) | (628) |
Net cash provided by operating activities | 134,273 | 102,749 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (54,620) | (40,092) |
Net cash used in investing activities | (54,620) | (40,092) |
Cash flows from financing activities: | ||
Dividends paid | (110,736) | (94,952) |
Purchases of common stock | (270) | |
Principal payments on installment payment agreement | (5,845) | (7,855) |
Principal payments of finance lease obligations | (16,826) | (19,392) |
Proceeds from exercises of stock options | 1,237 | 1,175 |
Net cash used in financing activities | (94,554) | (70,234) |
Effect of exchange rates changes on cash | (1,445) | 1,448 |
Net decrease in cash and cash equivalents & restricted cash | (16,346) | (6,129) |
Cash and cash equivalents & restricted cash, beginning of period | 371,301 | 399,422 |
Cash and cash equivalents & restricted cash, end of period | 354,955 | 393,293 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Non-cash component of network equipment obtained in exchange transactions | 310 | |
PP&E obtained for installment payment agreement | 5,771 | |
Finance lease obligations incurred | 38,411 | 61,504 |
Fair value of equipment acquired in leases | 536 | |
2021 Notes | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss on debt extinguishment and redemption | 638 | |
Cash flows from financing activities: | ||
Extinguishment and redemption of Notes | (189,225) | |
2022 Notes | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss on debt extinguishment and redemption | 14,698 | |
Cash flows from financing activities: | ||
Extinguishment and redemption of Notes | (459,317) | |
Senior unsecured 2024 Notes | ||
Cash flows from financing activities: | ||
Net proceeds from issuance of senior unsecured 2024 Euro Notes - net of debt costs of $2,137 | $ 240,285 | |
Senior secured 2026 Notes | ||
Cash flows from financing activities: | ||
Net proceeds from issuance of senior secured 2026 Notes - net of debt costs of $1,317 | $ 496,933 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Senior unsecured 2024 Notes | ||
Debt costs | $ 2,137 | |
Senior secured 2026 Notes | ||
Debt costs | $ 1,317 |
Description of the business and
Description of the business and recent developments: | 9 Months Ended |
Sep. 30, 2021 | |
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, 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”). 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. Cogent Communications, Inc. is wholly owned by Group and the vast majority of Group's assets, contractual arrangements, and operations are executed by Cogent Communications, Inc. and its subsidiaries. Description of business The Company is a facilities-based provider of low-cost, high-speed Internet access, private network services, and data center colocation space and power. The Company’s network is specifically designed and optimized to transmit packet switched data. The Company delivers its services primarily to small and medium-sized businesses, communications service providers and other bandwidth-intensive organizations in 50 countries across North America, Europe, Asia, South America, Australia and Africa. The Company is a Delaware corporation and is headquartered in Washington, DC. The Company offers on-net Internet access services exclusively through its own facilities, which run from its network to its customers’ premises. The Company offers its on-net services to customers located in buildings that are physically connected to its network. As a result, the Company is not dependent on local telephone companies or cable TV companies to serve its customers for its on-net Internet access and private network service. The Company’s on-net service consists of high-speed Internet access and private network services offered at speeds ranging from 100 megabits per second to 100 gigabits per second. The Company provides its on-net Internet access and private network 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, as well as health care providers, educational institutions and other professional services businesses. The Company’s net-centric customers include bandwidth-intensive users that leverage its network to either deliver content to end users or to provide access to residential or commercial internet users. Content delivery customers include over the top (“OTT”) media service providers, content delivery networks, web hosting companies, and commercial content and application software providers. Access customers include access networks comprised of other Internet Service Providers (“ISPs”), telephone companies, mobile phone operators and cable television companies that collectively provide internet access to a substantial number of broadband subscribers and mobile phone subscribers across the world. These net-centric customers generally receive the Company’s services in carrier neutral colocation facilities and in the Company’s own 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 on-net services, the Company provides Internet access and private network services to customers that are not located in buildings directly connected to its network. The Company provides these off-net services primarily to corporate customers using other carriers’ circuits 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 ("GAAP") 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, 2020. The accompanying unaudited condensed 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 US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Financial instruments At September 30, 2021, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). Based upon recent trading prices (Level 2— market approach), at September 30, 2021, the fair value of the Company’s $500.0 million senior secured notes was $507.5 million and the fair value of the Company’s €350.0 million ($405.6 million USD) senior unsecured notes was $413.2 million. The estimated fair value of the Company’s interest rate swap agreement using the Level 2 market approach was a long-term liability of $3.1 million. Restricted cash and interest rate swap agreement Restricted cash represents amounts held in segregated bank accounts by our clearing broker as margin in support of our interest rate swap agreement as discussed in Note 3 and was $3.1 million as of September 30, 2021. Additional cash may be further restricted to maintain our interest rate swap instrument as interest rates fluctuate and margin requirements change. The Company does not use derivative financial instruments for trading purposes. 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 network operations expense. Excise taxes and surcharges billed to customers and recorded on a gross basis (as service revenue and network operations expense)were $4.8 million and $3.9 million for the three months ended September 30, 2021 and 2020, respectively, and $14.2 million and $10.9 million for the nine months ended September 30, 2021 and 2020, respectively. Basic and diluted net income 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. The following details the determination of diluted weighted average shares: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Weighted average common shares - basic 46,293,524 45,815,718 46,290,452 45,818,677 Dilutive effect of stock options 36,406 — 34,191 99,581 Dilutive effect of restricted stock 536,999 — 501,305 680,612 Weighted average common shares - diluted 46,866,929 45,815,718 46,825,948 46,598,870 The following details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Unvested shares of restricted common stock 1,371,217 1,472,572 1,371,217 1,472,572 Anti-dilutive options for common stock 43,648 87,214 42,531 24,453 Anti-dilutive shares of restricted common stock 827 925,866 133,468 191 Stockholders’ Deficit The following details the changes in stockholders’ deficit for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands except share amounts): Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at June 30, 2020 47,279,201 $ 47 $ 506,391 $ (12,906) $ (729,082) $ (235,550) Forfeitures of shares granted to employees (4,932) — — — — — Equity-based compensation — — 7,147 — — 7,147 Foreign currency translation — — — 5,408 — 5,408 Issuances of common stock 10,500 — — — — — Exercises of options 4,134 — 185 — — 185 Common stock purchases and retirement (4,567) — (269) — — (269) Dividends paid — — — — (32,657) (32,657) Net (loss) — — — — (4,955) (4,955) Balance at September 30, 2020 47,284,336 $ 47 $ 513,454 $ (7,498) $ (766,694) $ (260,691) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at June 30, 2021 47,655,131 $ 48 $ 533,049 $ (4,740) $ (864,498) $ (336,141) Forfeitures of shares granted to employees (10,933) — — — — — Equity-based compensation — — 7,164 — — 7,164 Foreign currency translation — — — (3,818) — (3,818) Issuances of common stock 11,820 — — — — — Exercises of options 7,258 — 362 — — 362 Dividends paid — — — — (37,654) (37,654) Net income — — — — 13,320 13,320 Balance at September 30, 2021 47,663,276 $ 48 $ 540,575 $ (8,558) $ (888,832) $ (356,767) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at December 31, 2019 46,840,434 $ 47 $ 493,178 $ (12,326) $ (684,578) $ (203,679) Forfeitures of shares granted to employees (42,212) — — — — — Equity-based compensation — — 19,371 — — 19,371 Foreign currency translation — — — 4,828 — 4,828 Issuances of common stock 465,530 — — — — — Exercises of options 25,151 — 1,174 — — 1,174 Common stock purchases and retirement (4,567) — (269) — — (269) Dividends paid — — — — (94,952) (94,952) Net income — — — — 12,836 12,836 Balance at September 30, 2020 47,284,336 $ 47 $ 513,454 $ (7,498) $ (766,694) $ (260,691) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at December 31, 2020 47,214,077 $ 47 $ 515,867 $ (1,306) $ (807,774) $ (293,166) Forfeitures of shares granted to employees (36,235) — — — — — Equity-based compensation — — 23,471 — — 23,471 Foreign currency translation — — — (7,252) — (7,252) Issuances of common stock 460,580 1 — — — 1 Exercises of options 24,854 — 1,237 — — 1,237 Dividends paid — — — — (110,736) (110,736) Net income — — — — 29,678 29,678 Balance at September 30, 2021 47,663,276 $ 48 $ 540,575 $ (8,558) $ (888,832) $ (356,767) Revenue recognition The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers The Company’s service offerings consist of on-net and off-net telecommunications services. Fixed fees are billed monthly in advance and usage fees are billed monthly in arrears. Amounts billed are due upon receipt and contract lengths range from one month to 60 months. The Company satisfies its performance obligations to provide services to customers over time as the services are rendered. In accordance with ASC 606, revenue is recognized when a customer obtains the promised service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company has adopted the practical expedient related to certain performance obligation disclosures since it has a right to consideration from its customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. To achieve this core principle, the Company follows the following five steps: 1) Identification of the contract, or contracts with a customer 2) Identification of the performance obligations in the contract 3) Determination of the transaction price 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, we satisfy a performance obligation. Fees billed in connection with customer installations are deferred (as deferred revenue) and recognized as noted above. If a customer contract is terminated prior to its contractual end, the customer is subject to termination fees. The Company vigorously seeks payment of these amounts. The Company recognizes revenue for these amounts as they are collected. Service revenue recognized from amounts in deferred revenue (contract liabilities) at the beginning of the period during the three months ended September 30, 2021 was $1.9 million and during the three months ended September 30, 2020 was $1.6 million. Service revenue recognized from amounts in deferred revenue (contract liabilities) at the beginning of the period during the nine months ended September 30, 2021 was $4.1 million and during the nine months ended September 30, 2020 was $3.9 million. Amortization expense for contract costs was $4.6 million for the three months ended September 30, 2021 and $4.2 million for the three months ended September 30, 2020. Amortization expense for contract costs was $13.8 million for the nine months ended September 30, 2021 and $12.6 million for the nine months ended September 30, 2020. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Finance lease cost Amortization of right-of-use assets $ 6,847 $ 6,382 $ 19,571 $ 16,117 Interest expense on finance lease liabilities 4,977 4,804 14,888 13,794 Operating lease cost 4,572 4,269 13,660 12,860 Total lease costs $ 16,396 $ 15,455 $ 48,119 $ 42,771 Nine Months Nine Months Ended Ended September 30, 2021 September 30, 2020 Other lease information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (12,694) $ (14,150) Operating cash flows from operating leases (14,077) (13,785) Financing cash flows from finance leases (16,826) (19,392) Right-of-use assets obtained in exchange for new finance lease liabilities 38,411 61,504 Right-of-use assets obtained in exchange for new operating lease liabilities 15,732 24,866 Weighted-average remaining lease term — finance leases (in years) 12.6 12.3 Weighted-average remaining lease term — operating leases (in years) 19.2 20.4 Weighted average discount rate — finance leases 9.3 % 10.5 % Weighted average discount rate — operating leases 5.5 % 5.4 % Finance leases—fiber lease agreements The Company has entered into lease agreements with numerous providers of dark fiber under indefeasible-right-of-use agreements (“IRUs”). These IRUs typically have initial terms of 15- 20 years and include renewal options after the initial lease term. The Company establishes the number of renewal option periods used in determining the lease term based upon its assessment at the inception of the lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the dark fiber provider and the Company. Once the Company has accepted the related fiber route, leases that meet the criteria for treatment as finance leases are recorded as a finance lease obligation and an IRU asset. The interest rate used in determining the present value of the aggregate future minimum lease payments is the Company’s incremental borrowing rate for the reasonably certain lease term. Finance lease assets are included in property and equipment in the Company’s consolidated balance sheets. As of September 30, 2021, the Company had committed to additional dark fiber IRU lease agreements totaling $35.1 million in future payments to be paid over periods of up to 20 years. These obligations begin when the related fiber is accepted, which is generally expected to occur in the next 12 months. Operating leases The Company leases office space and certain data center facilities under operating leases. In certain cases the Company also enters into short-term operating leases for dark fiber. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates within the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgment. The Company determines its incremental borrowing rate for each lease using its current borrowing rate, adjusted for various factors including level of collateralization and term to align with the term of the lease. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal option periods used in determining the operating lease term based upon its assessment at the inception of the operating lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the landlord or dark fiber provider and the Company. Once the Company has accepted the related fiber route or the facility lease term has begun, the present value of the aggregate future minimum operating lease payments are recorded as an operating lease liability and a right-of-use leased asset. Lease incentives and deferred rent liabilities for facilities operating leases are presented with the right-of-use leased asset. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands): Operating Finance For the twelve months ending September 30, Leases Leases 2022 $ 17,802 $ 35,675 2023 18,295 34,812 2024 17,243 34,997 2025 15,228 31,738 2026 13,116 26,829 Thereafter 115,788 248,490 Total minimum lease obligations 197,472 412,541 Less—amounts representing interest (71,095) (173,002) Present value of minimum lease obligations 126,377 239,539 Current maturities (11,312) (16,685) Lease obligations, net of current maturities $ 115,065 $ 222,854 Allowance for credit losses Effective January 1, 2020, the Company adopted Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Current-period Provision for Write offs Beginning Expected Credit Charged Against Ending Description Balance Losses Allowance Balance Allowance for credit losses (deducted from accounts receivable) Three months ending September 30, 2021 $ 1,673 $ 1,340 $ (1,600) $ 1,413 Three months ending September 30, 2020 $ 2,115 $ 1,174 $ (1,085) $ 2,204 Nine months ending September 30, 2021 $ 1,921 $ 4,539 $ (5,047) $ 1,413 Nine months ending September 30, 2020 $ 1,771 $ 3,942 $ (3,509) $ 2,204 Net bad debt expense for the three and nine months ended September 30, 2021 was $1.0 million and $2.6 million, respectively, which is net of bad debt recoveries of $0.3 million and $1.9 million, respectively. Net bad debt expense for the three and nine months ended September 30, 2020 was $0.8 million and $3.2 million, respectively, which is net of bad debt recoveries of $0.4 million and $0.8 million, respectively . |
Property and equipment_
Property and equipment: | 9 Months Ended |
Sep. 30, 2021 | |
Property and equipment: | |
Property and equipment: | 2. Property and equipment: Depreciation and amortization expense related to property and equipment and finance leases was $22.6 million and $21.6 million for the three months ended September 30, 2021 and 2020, respectively, and $66.7 million and $61.0 million for the nine months ended September 30, 2021 and 2020, respectively. The Company capitalized salaries and related benefits of employees working directly on the construction and build-out of its network of $3.1 million and $3.0 million for the three months ended September 30, 2021 and 2020, respectively, and $10.4 million and $8.9 million for the nine months ended September 30, 2021 and 2020, respectively. |
Long-term debt_
Long-term debt: | 9 Months Ended |
Sep. 30, 2021 | |
Long-term debt: | |
Long-term debt: | 3. Long-term debt: As of September 30, 2021, the Company had outstanding $500.0 million aggregate principal amount of Senior Secured Notes due 2026 (the “2026 Notes”) and €350.0 million ($405.6 million USD) aggregate principal amount of Senior Unsecured Euro Notes due 2024 (the “2024 Notes”). The 2026 Notes are due on May 1, 2026 and bear interest at a rate of 3.50% per year. Interest on the 2026 Notes is paid semi-annually on May 1 and November 1 of each year. The 2024 Notes are due on June 30, 2024 and bear interest at a rate of 4.375% per year. Interest on the 2024 Notes is paid semi-annually on June 30 and December 30 of each year. Interest rate swap agreement As of September 30, 2021, Group held an interest rate swap agreement (the “Swap Agreement”) that has the economic effect of modifying the fixed interest rate obligation associated with its 2026 Notes to a variable interest rate obligation based on the Secured Overnight Financing Rate (“SOFR”) so that the interest payable on the 2026 Notes effectively became variable based on overnight SOFR. The critical terms of the Swap Agreement match the terms of the 2026 Notes, including the notional amount and the optional redemption date on February 1, 2026. The Company did not elect hedge accounting.The Swap Agreement is recorded at its fair value at each reporting period, and Group incurs gains and losses due to changes in market interest rates. By entering into the Swap Agreement, Group has assumed the risk associated with variable interest rates. Changes in interest rates affect the interest expense that the Company recognizes in its consolidated statements of comprehensive income. The values that the Company reports for the Swap Agreement as of each reporting date are recognized as interest expense with the corresponding amounts included in assets or liabilities in the Company’s consolidated balance sheets. As of September 30, 2021 the fair value of the Swap Agreement was a long-term liability of $ Issuance of the 2026 Notes On May 7, 2021 (the “Closing Date”), Group completed an offering of $500.0 million aggregate principal amount of its 2026 Notes for issuance in a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The 2026 Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States in compliance with Regulation S under the Securities Act. The net proceeds from the 2026 Notes offering were $496.9 million after deducting the $1.8 million discount and $1.3 million of offering expenses. In May 2021 and prior to the consummation of the offering of the 2026 Notes, Group completed the redemption of $45.0 million aggregate principal amount of its 5.375% Senior Secured Notes due 2022 (the “2022 Notes”), following which $284.1 million aggregate principal amount of 2022 Notes remained outstanding. On the Closing Date, Group issued a notice of full redemption to holders of its remaining 2022 Notes, specifying December 1, 2021 as the redemption date. On the Closing Date, Group used the net proceeds from the offering of the 2026 Notes to satisfy and discharge its obligations under the remaining 2022 Notes by depositing with the trustee the funds necessary to pay the $284.1 million aggregate principal amount and $11.5 million of interest due on the 2022 Notes through December 1, 2021. Under the indenture governing the 2022 Notes (the “2022 Notes Indenture”), Group could redeem the 2022 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2022 Notes, plus accrued and unpaid interest beginning on December 1, 2021. Prior to December 1, 2021, any redemption of the 2022 Notes would have included a “make-whole” premium as set forth in the 2022 Notes Indenture. The Company expects to use the remaining net proceeds from the 2026 Notes offering for general corporate purposes, to repay debt obligations, to repurchase the Company’s common stock or for special or recurring dividends to the Company’s stockholders. The 2026 Notes were issued pursuant to, and are governed by, an indenture (the “2026 Notes Indenture”), dated the Closing Date by and among Group, Holdings, the other guarantors named therein, the trustee and the collateral agent. The 2026 Notes are guaranteed on a senior secured basis, jointly and severally, by Group’s material domestic subsidiaries, subject to certain exceptions (the “Subsidiary Guarantors”). In addition, the 2026 Notes are guaranteed on a senior unsecured basis by Holdings (together with the Subsidiary Guarantors, the “Guarantors”). Under certain circumstances, the Guarantors may be released from these guarantees without the consent of the holders of the 2026 Notes. The 2026 Notes and the guarantees of the Subsidiary Guarantors (the “subsidiary guarantees”) are Group’s and the Subsidiary Guarantors’ senior obligations, secured by a first priority lien on substantially all of Group’s and the Subsidiary Guarantors’ assets, subject to certain exceptions, limitations and permitted liens. The 2026 Notes and the subsidiary guarantees are effectively senior to any of Group’s and the Subsidiary Guarantors’ existing and future senior unsecured indebtedness and future indebtedness secured by liens on the collateral securing the 2026 Notes that are junior to the liens on the collateral securing the 2026 Notes, in each case, to the extent of the value of the collateral securing the 2026 Notes. The 2026 Notes and the subsidiary guarantees rank pari passu in right of payment with Group’s and the Subsidiary Guarantors’ existing and future indebtedness that is not subordinated in right of payment to the 2026 Notes or the subsidiary guarantees. The 2026 Notes and the subsidiary guarantees are effectively subordinated to any of Group’s and the Subsidiary Guarantors’ indebtedness that is secured by assets that do not constitute collateral or that is secured by liens on the collateral securing the 2026 Notes that are senior to the liens securing the 2026 Notes, in each case, to the extent of the value of the collateral securing such indebtedness. In addition, the 2026 Notes and the subsidiary guarantees thereof rank contractually senior in right of payment to all of Group’s and the Subsidiary Guarantors’ future subordinated indebtedness and are structurally subordinated to the liabilities of the non-guarantor subsidiaries. Holdings’ guarantee is its senior unsecured obligation, and ranks equally in right of payment with all of Holdings’ existing and future senior indebtedness and senior in right of payment to all of Holdings’ future subordinated indebtedness. Holdings’ guarantee is effectively subordinated to its secured indebtedness to the extent of the value of the collateral securing such indebtedness. The 2026 Notes bear interest at a rate of 3.50% per annum. Interest began to accrue on the 2026 Notes on May 7, 2021 and will be paid semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2021. Unless earlier redeemed or repurchased, the 2026 Notes will mature on May 1, 2026. Group may redeem some or all of the 2026 Notes at any time prior to February 1, 2026 at a price equal to 100% of the principal amount of the 2026 Notes, plus a “make-whole” premium as set forth in the 2026 Notes Indenture, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. Thereafter, Group may redeem the 2026 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2026 Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. Debt extinguishment and redemption of 2022 Notes In March 2021, Group redeemed $115.9 million aggregate principal amount of its 2022 Notes at an average price of 103.2% of the principal amount plus $0.4 million of accrued and unpaid interest. As a result of this transaction, the Company incurred a loss on debt extinguishment and redemption of $3.9 million from the premium payment above par value, the amortization of the remaining unamortized notes cost and certain transaction expenses. On April 6, 2021, Group issued a notice of conditional partial redemption for $45.0 million aggregate principal amount of its 2022 Notes. Group redeemed the $45.0 million aggregate principal amount of its 2022 Notes on May 6, 2021 at par plus the “make-whole amount” as defined in the 2022 Notes Indenture of $1.9 million ($41.41533 per $1,000 aggregate principal amount) plus accrued interest to, but excluding, the redemption date of $0.4 million ($9.70486 per $1,000 aggregate principal amount). Following this $45.0 million redemption there was $284.1 million aggregate principal amount of 2022 Notes remaining. On the Closing Date of the issuance of the 2026 Notes, Group used the net proceeds from the offering of the 2026 Notes to satisfy and discharge its remaining obligations under its 2022 Notes. As a result of these transactions, the Company incurred a loss on debt extinguishment and redemption of $10.8 million from the payment of $11.5 million of interest on the 2022 Notes through December 1, 2021 and the amortization of the remaining unamortized notes costs and debt premium. 2024 Notes issuances In June 2020, Group completed an offering of €215.0 million aggregate principal amount of its 2024 Notes. The net proceeds from the June 2020 offering, after deducting offering expenses, were $240.3 million. In June 2019, Group completed an offering of €135.0 million aggregate principal amount of its 2024 Notes. The net proceeds from the June 2019 offering, after deducting offering expenses, were $152.1 million. The Company expects to use , and has used, some of the proceeds from these offerings for general corporate purposes, to repay debt obligations, to repurchase the Company’s common stock or for special or recurring dividends to the Company’s stockholders. The 2024 Notes bear interest at a rate of 4.375% per annum. Interest began to accrue on the 2024 Notes issued in June 2020 on June 4, 2020 and interest began to accrue on the 2024 Notes issued in June 2019 on June 25, 2019. Interest is paid semi-annually in arrears on June 30 and December 30 of each year. Unless earlier redeemed, the 2024 Notes will mature on June 30, 2024. The June 2020 issuance of €215.0 million aggregate principal amount 2024 Notes were issued at a price of 99.5% for €213.9 million ($240.0 million USD) on June 3, 2020 at a Euro to USD exchange rate of $1.112. The discount is amortized to interest expense to the maturity date under the effective interest rate method. The Company received proceeds in USD on the 2024 Notes issued in June 2020 on June 9, 2020 at a Euro to USD rate of $1.133 resulting in a realized gain on foreign exchange of $2.5 million. The June 2019 issuance of 2024 Notes were issued at par for €135.0 million on June 25, 2019. The issuances of the 2024 Notes were in Euros and are reported in the Company’s reporting currency – US Dollars. As of September 30, 2021, the 2024 Notes were valued at $405.6 million. The unrealized gain (loss) on foreign exchange on the Company’s 2024 Notes from converting the 2024 Notes into USD was $10.2 million for the three months ended September 30, 2021 and $(17.3) million for the three months ended September 30, 2020 and was $23.8 million for the nine months ended September 30, 2021 and $(17.8) million for the nine months ended September 30, 2020. Debt extinguishment and redemption of 2021 Notes In June 2020, Group redeemed its 5.625% senior unsecured notes due in 2021 (the "2021 Notes") with the proceeds from its June 2020 issuance of €215.0 million aggregate principal amount of 2024 Notes. Group redeemed the entire outstanding amount of the 2021 Notes at a redemption price of 100% of the $189.2 million aggregate principal amount plus $1.6 million of accrued and unpaid interest. As a result of this transaction, the Company incurred a loss on debt extinguishment and redemption of $0.6 million from the amortization of the remaining unamortized notes costs and certain transaction expenses. Limitations under the indentures The indenture governing the 2024 Notes (the “2024 Notes Indenture”) and the 2026 Notes Indenture, 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; to 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. There are certain exceptions to the limitations on the Company’s ability to incur indebtedness under the 2024 Notes Indenture and the 2026 Notes Indenture, including IRU agreements incurred in the normal course of business and any additional indebtedness if (i) under the 2024 Notes Indenture, the Company’s consolidated leverage ratio, as defined in 2024 Notes Indenture, is less than 6.0 to 1.0 and (ii) under the 2026 Notes Indenture, either the Company’s consolidated leverage ratio, as defined in 2026 Notes Indenture, is less than 6.0 to 1.0 or the Company’s fixed charge coverage ratio, as defined in the 2026 Notes Indenture, is greater than 2.0 to 1.0. The Company can also incur unlimited liens (which can be used, together with capacity under the debt covenant, to incur additional secured indebtedness) if the Company’s consolidated secured leverage ratio, as defined in each of the 2024 Notes Indenture and the 2026 Notes Indenture, is less than 4.0 to 1.0. The 2024 Notes Indenture permits restricted payments, such as dividends and stock purchases, using accumulated consolidated cash flow, as defined in the 2024 Notes indenture, when the Company’s consolidated leverage ratio, as defined by the 2024 Notes Indenture, is less than 4.25 to 1.00. Under the 2026 Notes Indenture, such accumulated consolidated cash flow, as defined therein, can be used to make such restricted payments if the Company is able to incur $1 of debt, as defined (i.e., either its consolidated leverage ratio is less than 6.0 to 1.0 or its fixed charge coverage ratio is greater than 2.0 to 1.0). The Company’s consolidated leverage ratio was above 4.25 as of September 30, 2021, and the Company’s fixed charge coverage ratio was above 2.0 as of September 30, 2021. As of September 30, 2021, a total of $226.3 million was unrestricted and permitted for restricted payments including dividends and stock purchases. |
Commitments and contingencies_
Commitments and contingencies: | 9 Months Ended |
Sep. 30, 2021 | |
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 $3.5 million in excess of the amount accrued at September 30, 2021. The Company is engaged in an arbitration proceeding in Spain in which a former provider of optical fiber to the Company is seeking approximately $9 million for the Company’s early termination of the optical fiber leases, which amount the Company accrued in 2015. The Company has counterclaimed for damages and is contesting its obligation to pay the termination liability. The arbitration is being conducted by the Civil and Commercial Arbitration Court (CIMA) in Madrid, Spain. On October 25, 2021, CIMA issued its decision, awarding the former provider approximately $0.7 million and rejecting the Company’s counterclaims. Both parties have until (i) November 4, 2021 to request clarifications from CIMA regarding clerical or mathematical errors, unaddressed claims or other minor issues and (ii) two months from the later of the date of the award or a subsequent clarifying order from CIMA to file a court action before the High Court of Justice of Madrid to annul the award. The Company’s policy is to not record the impact of legal proceedings until all appeals have been exhausted or legal counsel has advised that any further appeal will likely not change the outcome of the matter. 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: | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Domestic $ 24,849 $ (4,084) $ 54,179 $ 27,818 Foreign (2,825) (2,471) (8,024) (10,242) Total $ 22,024 $ (6,555) $ 46,155 $ 17,576 |
Common stock buyback program_
Common stock buyback program: | 9 Months Ended |
Sep. 30, 2021 | |
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, 2022. At September 30, 2021, there was approximately $30.4 million remaining for purchases under the Buyback Program. In the three and nine months ended September 30, 2020 the Company purchased 4,567 shares of its common stock for $0.3 million. There were no purchases of common stock during the three and nine months ended September 30, 2021. |
Dividends on common stock_
Dividends on common stock: | 9 Months Ended |
Sep. 30, 2021 | |
Dividends on common stock: | |
Dividends on common stock: | 7. Dividends on common stock: On November 2, 2021, the Company’s Board of Directors approved the payment of a quarterly dividend of $0.83 per common share. This estimated $38.4 million dividend payment is expected to be made on December 3, 2021. 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 2024 Notes Indenture and the 2026 Notes Indenture limit the Company’s ability to return cash to its stockholders. |
Related party transactions_
Related party transactions: | 9 Months Ended |
Sep. 30, 2021 | |
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 owner is the Company’s Chief Executive Officer. 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 was for five years. In February 2020, the lease term was extended to May 2025. The lease 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 $0.5 million and $0.5 million in the three months ended September 30, 2021 and 2020, respectively, and $1.3 million and $1.3 million in the nine months ended September 30, 2021 and 2020, respectively, for rent and related costs (including taxes and utilities) to Sodium LLC for this lease. |
Segment information_
Segment information: | 9 Months Ended |
Sep. 30, 2021 | |
Segment information: | |
Segment information: | 9. Segment information: The Company operates as one operating segment. The Company’s service revenue by geographic region and product class and long lived assets by geographic region are as follows (in thousands): Three Months Ended September 30, 2021 Revenues On-net Off-net Non-core Total North America $ 85,569 $ 31,945 $ 147 $ 117,661 Europe 21,658 4,379 25 26,062 South America 1,042 54 — 1,096 Asia Pacific 2,657 277 — 2,934 Africa 173 1 — 174 Total $ 111,099 $ 36,656 $ 172 $ 147,927 Three Months Ended September 30, 2020 Revenues On-net Off-net Non-core Total North America $ 82,730 $ 32,416 $ 107 $ 115,253 Europe 19,966 4,422 12 24,400 South America 599 14 — 613 Asia Pacific 1,786 240 — 2,026 Africa 10 — — 10 Total $ 105,091 $ 37,092 $ 119 $ 142,302 Nine Months Ended September 30, 2021 Revenues On-net Off-net Non-core Total North America $ 255,157 $ 95,680 $ 361 $ 351,198 Europe 66,450 13,465 57 79,972 South America 2,859 119 — 2,978 Asia Pacific 7,279 812 — 8,091 Africa 342 3 — 345 Total $ 332,087 $ 110,079 $ 418 $ 442,584 Nine Months Ended September 30, 2020 Revenues On-net Off-net Non-core Total North America $ 247,679 $ 97,951 $ 369 $ 345,999 Europe 58,433 12,781 32 71,246 South America 1,344 34 — 1,378 Asia Pacific 4,880 692 — 5,572 Africa 10 — — 10 Total $ 312,346 $ 111,458 $ 401 $ 424,205 September 30, December 31, 2021 2020 Long lived assets, net North America $ 326,350 $ 306,652 Europe and other 128,372 123,699 Total $ 454,722 $ 430,351 The majority of North American revenue consists of services delivered within the United States. |
Description of the business a_2
Description of the business and recent developments: (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 ("GAAP") 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, 2020. The accompanying unaudited condensed 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 US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. |
Financial instruments | Financial instruments At September 30, 2021, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). Based upon recent trading prices (Level 2— market approach), at September 30, 2021, the fair value of the Company’s $500.0 million senior secured notes was $507.5 million and the fair value of the Company’s €350.0 million ($405.6 million USD) senior unsecured notes was $413.2 million. The estimated fair value of the Company’s interest rate swap agreement using the Level 2 market approach was a long-term liability of $3.1 million. |
Restricted cash and interest rate swap agreement | Restricted cash and interest rate swap agreement Restricted cash represents amounts held in segregated bank accounts by our clearing broker as margin in support of our interest rate swap agreement as discussed in Note 3 and was $3.1 million as of September 30, 2021. Additional cash may be further restricted to maintain our interest rate swap instrument as interest rates fluctuate and margin requirements change. The Company does not use derivative financial instruments for trading purposes. |
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 network operations expense. Excise taxes and surcharges billed to customers and recorded on a gross basis (as service revenue and network operations expense)were $4.8 million and $3.9 million for the three months ended September 30, 2021 and 2020, respectively, and $14.2 million and $10.9 million for the nine months ended September 30, 2021 and 2020, respectively. |
Basic and diluted net income per common share | Basic and diluted net income 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. The following details the determination of diluted weighted average shares: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Weighted average common shares - basic 46,293,524 45,815,718 46,290,452 45,818,677 Dilutive effect of stock options 36,406 — 34,191 99,581 Dilutive effect of restricted stock 536,999 — 501,305 680,612 Weighted average common shares - diluted 46,866,929 45,815,718 46,825,948 46,598,870 The following details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Unvested shares of restricted common stock 1,371,217 1,472,572 1,371,217 1,472,572 Anti-dilutive options for common stock 43,648 87,214 42,531 24,453 Anti-dilutive shares of restricted common stock 827 925,866 133,468 191 |
Stockholder's Deficit | Stockholders’ Deficit The following details the changes in stockholders’ deficit for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands except share amounts): Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at June 30, 2020 47,279,201 $ 47 $ 506,391 $ (12,906) $ (729,082) $ (235,550) Forfeitures of shares granted to employees (4,932) — — — — — Equity-based compensation — — 7,147 — — 7,147 Foreign currency translation — — — 5,408 — 5,408 Issuances of common stock 10,500 — — — — — Exercises of options 4,134 — 185 — — 185 Common stock purchases and retirement (4,567) — (269) — — (269) Dividends paid — — — — (32,657) (32,657) Net (loss) — — — — (4,955) (4,955) Balance at September 30, 2020 47,284,336 $ 47 $ 513,454 $ (7,498) $ (766,694) $ (260,691) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at June 30, 2021 47,655,131 $ 48 $ 533,049 $ (4,740) $ (864,498) $ (336,141) Forfeitures of shares granted to employees (10,933) — — — — — Equity-based compensation — — 7,164 — — 7,164 Foreign currency translation — — — (3,818) — (3,818) Issuances of common stock 11,820 — — — — — Exercises of options 7,258 — 362 — — 362 Dividends paid — — — — (37,654) (37,654) Net income — — — — 13,320 13,320 Balance at September 30, 2021 47,663,276 $ 48 $ 540,575 $ (8,558) $ (888,832) $ (356,767) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at December 31, 2019 46,840,434 $ 47 $ 493,178 $ (12,326) $ (684,578) $ (203,679) Forfeitures of shares granted to employees (42,212) — — — — — Equity-based compensation — — 19,371 — — 19,371 Foreign currency translation — — — 4,828 — 4,828 Issuances of common stock 465,530 — — — — — Exercises of options 25,151 — 1,174 — — 1,174 Common stock purchases and retirement (4,567) — (269) — — (269) Dividends paid — — — — (94,952) (94,952) Net income — — — — 12,836 12,836 Balance at September 30, 2020 47,284,336 $ 47 $ 513,454 $ (7,498) $ (766,694) $ (260,691) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at December 31, 2020 47,214,077 $ 47 $ 515,867 $ (1,306) $ (807,774) $ (293,166) Forfeitures of shares granted to employees (36,235) — — — — — Equity-based compensation — — 23,471 — — 23,471 Foreign currency translation — — — (7,252) — (7,252) Issuances of common stock 460,580 1 — — — 1 Exercises of options 24,854 — 1,237 — — 1,237 Dividends paid — — — — (110,736) (110,736) Net income — — — — 29,678 29,678 Balance at September 30, 2021 47,663,276 $ 48 $ 540,575 $ (8,558) $ (888,832) $ (356,767) |
Revenue recognition | Revenue recognition The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers The Company’s service offerings consist of on-net and off-net telecommunications services. Fixed fees are billed monthly in advance and usage fees are billed monthly in arrears. Amounts billed are due upon receipt and contract lengths range from one month to 60 months. The Company satisfies its performance obligations to provide services to customers over time as the services are rendered. In accordance with ASC 606, revenue is recognized when a customer obtains the promised service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company has adopted the practical expedient related to certain performance obligation disclosures since it has a right to consideration from its customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. To achieve this core principle, the Company follows the following five steps: 1) Identification of the contract, or contracts with a customer 2) Identification of the performance obligations in the contract 3) Determination of the transaction price 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, we satisfy a performance obligation. Fees billed in connection with customer installations are deferred (as deferred revenue) and recognized as noted above. If a customer contract is terminated prior to its contractual end, the customer is subject to termination fees. The Company vigorously seeks payment of these amounts. The Company recognizes revenue for these amounts as they are collected. Service revenue recognized from amounts in deferred revenue (contract liabilities) at the beginning of the period during the three months ended September 30, 2021 was $1.9 million and during the three months ended September 30, 2020 was $1.6 million. Service revenue recognized from amounts in deferred revenue (contract liabilities) at the beginning of the period during the nine months ended September 30, 2021 was $4.1 million and during the nine months ended September 30, 2020 was $3.9 million. Amortization expense for contract costs was $4.6 million for the three months ended September 30, 2021 and $4.2 million for the three months ended September 30, 2020. Amortization expense for contract costs was $13.8 million for the nine months ended September 30, 2021 and $12.6 million for the nine months ended September 30, 2020. |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Finance lease cost Amortization of right-of-use assets $ 6,847 $ 6,382 $ 19,571 $ 16,117 Interest expense on finance lease liabilities 4,977 4,804 14,888 13,794 Operating lease cost 4,572 4,269 13,660 12,860 Total lease costs $ 16,396 $ 15,455 $ 48,119 $ 42,771 Nine Months Nine Months Ended Ended September 30, 2021 September 30, 2020 Other lease information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (12,694) $ (14,150) Operating cash flows from operating leases (14,077) (13,785) Financing cash flows from finance leases (16,826) (19,392) Right-of-use assets obtained in exchange for new finance lease liabilities 38,411 61,504 Right-of-use assets obtained in exchange for new operating lease liabilities 15,732 24,866 Weighted-average remaining lease term — finance leases (in years) 12.6 12.3 Weighted-average remaining lease term — operating leases (in years) 19.2 20.4 Weighted average discount rate — finance leases 9.3 % 10.5 % Weighted average discount rate — operating leases 5.5 % 5.4 % Finance leases—fiber lease agreements The Company has entered into lease agreements with numerous providers of dark fiber under indefeasible-right-of-use agreements (“IRUs”). These IRUs typically have initial terms of 15- 20 years and include renewal options after the initial lease term. The Company establishes the number of renewal option periods used in determining the lease term based upon its assessment at the inception of the lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the dark fiber provider and the Company. Once the Company has accepted the related fiber route, leases that meet the criteria for treatment as finance leases are recorded as a finance lease obligation and an IRU asset. The interest rate used in determining the present value of the aggregate future minimum lease payments is the Company’s incremental borrowing rate for the reasonably certain lease term. Finance lease assets are included in property and equipment in the Company’s consolidated balance sheets. As of September 30, 2021, the Company had committed to additional dark fiber IRU lease agreements totaling $35.1 million in future payments to be paid over periods of up to 20 years. These obligations begin when the related fiber is accepted, which is generally expected to occur in the next 12 months. Operating leases The Company leases office space and certain data center facilities under operating leases. In certain cases the Company also enters into short-term operating leases for dark fiber. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates within the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgment. The Company determines its incremental borrowing rate for each lease using its current borrowing rate, adjusted for various factors including level of collateralization and term to align with the term of the lease. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal option periods used in determining the operating lease term based upon its assessment at the inception of the operating lease of the number of option periods for which failure to renew the lease imposes a penalty in such amount that renewal appears to be reasonably certain. The option to renew may be automatic, at the option of the Company or mutually agreed to between the landlord or dark fiber provider and the Company. Once the Company has accepted the related fiber route or the facility lease term has begun, the present value of the aggregate future minimum operating lease payments are recorded as an operating lease liability and a right-of-use leased asset. Lease incentives and deferred rent liabilities for facilities operating leases are presented with the right-of-use leased asset. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands): Operating Finance For the twelve months ending September 30, Leases Leases 2022 $ 17,802 $ 35,675 2023 18,295 34,812 2024 17,243 34,997 2025 15,228 31,738 2026 13,116 26,829 Thereafter 115,788 248,490 Total minimum lease obligations 197,472 412,541 Less—amounts representing interest (71,095) (173,002) Present value of minimum lease obligations 126,377 239,539 Current maturities (11,312) (16,685) Lease obligations, net of current maturities $ 115,065 $ 222,854 |
Allowance for credit losses | Allowance for credit losses Effective January 1, 2020, the Company adopted Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Current-period Provision for Write offs Beginning Expected Credit Charged Against Ending Description Balance Losses Allowance Balance Allowance for credit losses (deducted from accounts receivable) Three months ending September 30, 2021 $ 1,673 $ 1,340 $ (1,600) $ 1,413 Three months ending September 30, 2020 $ 2,115 $ 1,174 $ (1,085) $ 2,204 Nine months ending September 30, 2021 $ 1,921 $ 4,539 $ (5,047) $ 1,413 Nine months ending September 30, 2020 $ 1,771 $ 3,942 $ (3,509) $ 2,204 Net bad debt expense for the three and nine months ended September 30, 2021 was $1.0 million and $2.6 million, respectively, which is net of bad debt recoveries of $0.3 million and $1.9 million, respectively. Net bad debt expense for the three and nine months ended September 30, 2020 was $0.8 million and $3.2 million, respectively, which is net of bad debt recoveries of $0.4 million and $0.8 million, respectively . |
Description of the business a_3
Description of the business and recent developments: (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Description of the business and recent developments: | |
Schedule of diluted weighted average shares | Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Weighted average common shares - basic 46,293,524 45,815,718 46,290,452 45,818,677 Dilutive effect of stock options 36,406 — 34,191 99,581 Dilutive effect of restricted stock 536,999 — 501,305 680,612 Weighted average common shares - diluted 46,866,929 45,815,718 46,825,948 46,598,870 |
Schedule of unvested and anti-dilutive shares | Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Unvested shares of restricted common stock 1,371,217 1,472,572 1,371,217 1,472,572 Anti-dilutive options for common stock 43,648 87,214 42,531 24,453 Anti-dilutive shares of restricted common stock 827 925,866 133,468 191 |
Schedule of Stockholders' Deficit | The following details the changes in stockholders’ deficit for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands except share amounts): Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at June 30, 2020 47,279,201 $ 47 $ 506,391 $ (12,906) $ (729,082) $ (235,550) Forfeitures of shares granted to employees (4,932) — — — — — Equity-based compensation — — 7,147 — — 7,147 Foreign currency translation — — — 5,408 — 5,408 Issuances of common stock 10,500 — — — — — Exercises of options 4,134 — 185 — — 185 Common stock purchases and retirement (4,567) — (269) — — (269) Dividends paid — — — — (32,657) (32,657) Net (loss) — — — — (4,955) (4,955) Balance at September 30, 2020 47,284,336 $ 47 $ 513,454 $ (7,498) $ (766,694) $ (260,691) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at June 30, 2021 47,655,131 $ 48 $ 533,049 $ (4,740) $ (864,498) $ (336,141) Forfeitures of shares granted to employees (10,933) — — — — — Equity-based compensation — — 7,164 — — 7,164 Foreign currency translation — — — (3,818) — (3,818) Issuances of common stock 11,820 — — — — — Exercises of options 7,258 — 362 — — 362 Dividends paid — — — — (37,654) (37,654) Net income — — — — 13,320 13,320 Balance at September 30, 2021 47,663,276 $ 48 $ 540,575 $ (8,558) $ (888,832) $ (356,767) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at December 31, 2019 46,840,434 $ 47 $ 493,178 $ (12,326) $ (684,578) $ (203,679) Forfeitures of shares granted to employees (42,212) — — — — — Equity-based compensation — — 19,371 — — 19,371 Foreign currency translation — — — 4,828 — 4,828 Issuances of common stock 465,530 — — — — — Exercises of options 25,151 — 1,174 — — 1,174 Common stock purchases and retirement (4,567) — (269) — — (269) Dividends paid — — — — (94,952) (94,952) Net income — — — — 12,836 12,836 Balance at September 30, 2020 47,284,336 $ 47 $ 513,454 $ (7,498) $ (766,694) $ (260,691) Accumulated Additional Other Total Common Stock Paid-in Comprehensive Accumulated Stockholders’ Shares Amount Capital Income (Loss) Deficit Equity (Deficit) Balance at December 31, 2020 47,214,077 $ 47 $ 515,867 $ (1,306) $ (807,774) $ (293,166) Forfeitures of shares granted to employees (36,235) — — — — — Equity-based compensation — — 23,471 — — 23,471 Foreign currency translation — — — (7,252) — (7,252) Issuances of common stock 460,580 1 — — — 1 Exercises of options 24,854 — 1,237 — — 1,237 Dividends paid — — — — (110,736) (110,736) Net income — — — — 29,678 29,678 Balance at September 30, 2021 47,663,276 $ 48 $ 540,575 $ (8,558) $ (888,832) $ (356,767) |
Schedule of lease cost | Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Finance lease cost Amortization of right-of-use assets $ 6,847 $ 6,382 $ 19,571 $ 16,117 Interest expense on finance lease liabilities 4,977 4,804 14,888 13,794 Operating lease cost 4,572 4,269 13,660 12,860 Total lease costs $ 16,396 $ 15,455 $ 48,119 $ 42,771 Nine Months Nine Months Ended Ended September 30, 2021 September 30, 2020 Other lease information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ (12,694) $ (14,150) Operating cash flows from operating leases (14,077) (13,785) Financing cash flows from finance leases (16,826) (19,392) Right-of-use assets obtained in exchange for new finance lease liabilities 38,411 61,504 Right-of-use assets obtained in exchange for new operating lease liabilities 15,732 24,866 Weighted-average remaining lease term — finance leases (in years) 12.6 12.3 Weighted-average remaining lease term — operating leases (in years) 19.2 20.4 Weighted average discount rate — finance leases 9.3 % 10.5 % Weighted average discount rate — operating leases 5.5 % 5.4 % |
Schedule of future minimum payments under these operating lease and finance lease agreements | The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands): Operating Finance For the twelve months ending September 30, Leases Leases 2022 $ 17,802 $ 35,675 2023 18,295 34,812 2024 17,243 34,997 2025 15,228 31,738 2026 13,116 26,829 Thereafter 115,788 248,490 Total minimum lease obligations 197,472 412,541 Less—amounts representing interest (71,095) (173,002) Present value of minimum lease obligations 126,377 239,539 Current maturities (11,312) (16,685) Lease obligations, net of current maturities $ 115,065 $ 222,854 |
Schedule of impact on financial statement line items from adopting ASC 326 | Current-period Provision for Write offs Beginning Expected Credit Charged Against Ending Description Balance Losses Allowance Balance Allowance for credit losses (deducted from accounts receivable) Three months ending September 30, 2021 $ 1,673 $ 1,340 $ (1,600) $ 1,413 Three months ending September 30, 2020 $ 2,115 $ 1,174 $ (1,085) $ 2,204 Nine months ending September 30, 2021 $ 1,921 $ 4,539 $ (5,047) $ 1,413 Nine months ending September 30, 2020 $ 1,771 $ 3,942 $ (3,509) $ 2,204 |
Income taxes_ (Tables)
Income taxes: (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income taxes: | |
Schedule of components of (loss) income before income taxes | The components of income (loss) before income taxes consist of the following (in thousands): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Domestic $ 24,849 $ (4,084) $ 54,179 $ 27,818 Foreign (2,825) (2,471) (8,024) (10,242) Total $ 22,024 $ (6,555) $ 46,155 $ 17,576 |
Segment information_ (Tables)
Segment information: (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment information: | |
Schedule of service revenue by geographic region and product class and long lived assets by geographic region | The Company operates as one operating segment. The Company’s service revenue by geographic region and product class and long lived assets by geographic region are as follows (in thousands): Three Months Ended September 30, 2021 Revenues On-net Off-net Non-core Total North America $ 85,569 $ 31,945 $ 147 $ 117,661 Europe 21,658 4,379 25 26,062 South America 1,042 54 — 1,096 Asia Pacific 2,657 277 — 2,934 Africa 173 1 — 174 Total $ 111,099 $ 36,656 $ 172 $ 147,927 Three Months Ended September 30, 2020 Revenues On-net Off-net Non-core Total North America $ 82,730 $ 32,416 $ 107 $ 115,253 Europe 19,966 4,422 12 24,400 South America 599 14 — 613 Asia Pacific 1,786 240 — 2,026 Africa 10 — — 10 Total $ 105,091 $ 37,092 $ 119 $ 142,302 Nine Months Ended September 30, 2021 Revenues On-net Off-net Non-core Total North America $ 255,157 $ 95,680 $ 361 $ 351,198 Europe 66,450 13,465 57 79,972 South America 2,859 119 — 2,978 Asia Pacific 7,279 812 — 8,091 Africa 342 3 — 345 Total $ 332,087 $ 110,079 $ 418 $ 442,584 Nine Months Ended September 30, 2020 Revenues On-net Off-net Non-core Total North America $ 247,679 $ 97,951 $ 369 $ 345,999 Europe 58,433 12,781 32 71,246 South America 1,344 34 — 1,378 Asia Pacific 4,880 692 — 5,572 Africa 10 — — 10 Total $ 312,346 $ 111,458 $ 401 $ 424,205 September 30, December 31, 2021 2020 Long lived assets, net North America $ 326,350 $ 306,652 Europe and other 128,372 123,699 Total $ 454,722 $ 430,351 |
Description of the business a_4
Description of the business and recent developments: (Details) | 9 Months Ended |
Sep. 30, 2021countryGBMB | |
Number of countries entity operates | country | 50 |
Minimum | |
On-net service speed range | MB | 100 |
Maximum | |
On-net service speed range | GB | 100 |
Description of the business a_5
Description of the business and recent developments: Financial instruments (Details) - Sep. 30, 2021 € in Millions, $ in Millions | USD ($) | EUR (€) |
Level 2 | Interest Rate Swap | ||
Financial instruments | ||
Fair value of interest rate swaps | $ 3.1 | |
long-term liability | 3.1 | |
Senior unsecured 2024 Notes | ||
Financial instruments | ||
Senior notes | 405.6 | € 350 |
Senior unsecured 2024 Notes | Level 2 | ||
Financial instruments | ||
Senior notes, fair value | 413.2 | |
Senior secured 2026 Notes | ||
Financial instruments | ||
Senior notes | 500 | |
Senior secured 2026 Notes | Level 2 | ||
Financial instruments | ||
Senior notes, fair value | $ 507.5 |
Description of the business a_6
Description of the business and recent developments: Gross receipts taxes, universal service fund and other surcharges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Description of the business and recent developments: | ||||
Excise taxes and surcharge | $ 4.8 | $ 3.9 | $ 14.2 | $ 10.9 |
Description of the business a_7
Description of the business and recent developments: Basic and diluted net income per common share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Diluted weighted average shares | ||||
Weighted average common shares - basic (in shares) | 46,293,524 | 45,815,718 | 46,290,452 | 45,818,677 |
Weighted average common shares - diluted | 46,866,929 | 45,815,718 | 46,825,948 | 46,598,870 |
Stock options | ||||
Diluted weighted average shares | ||||
Dilutive effect (options or restricted stock) | 36,406 | 34,191 | 99,581 | |
Anti-dilutive effects | ||||
Anti-dilutive (options or restricted stock) | 43,648 | 87,214 | 42,531 | 24,453 |
Restricted stock | ||||
Diluted weighted average shares | ||||
Dilutive effect (options or restricted stock) | 536,999 | 501,305 | 680,612 | |
Anti-dilutive effects | ||||
Unvested shares of restricted common stock | 1,371,217 | 1,472,572 | 1,371,217 | 1,472,572 |
Anti-dilutive (options or restricted stock) | 827 | 925,866 | 133,468 | 191 |
Description of the business a_8
Description of the business and recent developments: Stockholders' deficit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance | $ (336,141) | $ (235,550) | $ (293,166) | $ (203,679) |
Balance (in shares) | 47,214,077 | |||
Equity-based compensation | 7,164 | 7,147 | $ 23,471 | 19,371 |
Foreign currency translation | (3,818) | 5,408 | (7,252) | 4,828 |
Issuances of common stock | 1 | |||
Exercises of options | 362 | 185 | 1,237 | 1,174 |
Common stock purchases and retirement | (269) | (269) | ||
Dividends paid | (37,654) | (32,657) | (110,736) | (94,952) |
Net income (loss) | 13,320 | (4,955) | 29,678 | 12,836 |
Balance | $ (356,767) | (260,691) | $ (356,767) | (260,691) |
Balance (in shares) | 47,663,276 | 47,663,276 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance | $ 48 | $ 47 | $ 47 | $ 47 |
Balance (in shares) | 47,655,131 | 47,279,201 | 47,214,077 | 46,840,434 |
Forfeitures of shares granted to employees (in shares) | (10,933) | (4,932) | (36,235) | (42,212) |
Issuances of common stock | $ 1 | |||
Issuances of common stock (in shares) | 11,820 | 10,500 | 460,580 | 465,530 |
Exercises of options (in shares) | 7,258 | 4,134 | 24,854 | 25,151 |
Common stock purchases and retirement (in shares) | (4,567) | (4,567) | ||
Balance | $ 48 | $ 47 | $ 48 | $ 47 |
Balance (in shares) | 47,663,276 | 47,284,336 | 47,663,276 | 47,284,336 |
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance | $ 533,049 | $ 506,391 | $ 515,867 | $ 493,178 |
Equity-based compensation | 7,164 | 7,147 | 23,471 | 19,371 |
Exercises of options | 362 | 185 | 1,237 | 1,174 |
Common stock purchases and retirement | (269) | (269) | ||
Balance | 540,575 | 513,454 | 540,575 | 513,454 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance | (4,740) | (12,906) | (1,306) | (12,326) |
Foreign currency translation | (3,818) | 5,408 | (7,252) | 4,828 |
Balance | (8,558) | (7,498) | (8,558) | (7,498) |
Accumulated Deficit | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance | (864,498) | (729,082) | (807,774) | (684,578) |
Dividends paid | (37,654) | (32,657) | (110,736) | (94,952) |
Net income (loss) | 13,320 | (4,955) | 29,678 | 12,836 |
Balance | $ (888,832) | $ (766,694) | $ (888,832) | $ (766,694) |
Description of the business a_9
Description of the business and recent developments: Revenue recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Recent accounting pronouncements- adopted | ||||
Service revenue recognized | $ 1.9 | $ 1.6 | $ 4.1 | $ 3.9 |
Amortization expense for contract costs | $ 4.6 | $ 4.2 | $ 13.8 | $ 12.6 |
Minimum | ASU 2014-09 | ||||
Recent accounting pronouncements- adopted | ||||
Maximum contract lengths for billing due upon receipts (in months) | 1 month | |||
Maximum | ASU 2014-09 | ||||
Recent accounting pronouncements- adopted | ||||
Maximum contract lengths for billing due upon receipts (in months) | 60 months |
Description of the business _10
Description of the business and recent developments: Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finance leases-fiber lease agreements | |||||
Additional finance lease future payments due | $ 35,100 | $ 35,100 | |||
Cash paid for amounts included in the measurement of lease liabilities | |||||
Finance lease cost, Amortization of right-of-use assets | 6,847 | $ 6,382 | 19,571 | $ 16,117 | |
Interest expense on finance lease liabilities | 4,977 | 4,804 | 14,888 | 13,794 | |
Operating lease cost | 4,572 | 4,269 | 13,660 | 12,860 | |
Total lease costs | $ 16,396 | $ 15,455 | 48,119 | 42,771 | |
Operating cash flows from finance leases | (12,694) | (14,150) | |||
Operating cash flows from operating leases | (14,077) | (13,785) | |||
Financing cash flows from finance leases | (16,826) | (19,392) | |||
Right-of-use assets obtained in exchange for new finance lease liabilities | 38,411 | 61,504 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 15,732 | $ 24,866 | |||
Weighted-average remaining lease term - finance leases (in years) | 12 years 7 months 6 days | 12 years 3 months 18 days | 12 years 7 months 6 days | 12 years 3 months 18 days | |
Weighted-average remaining lease term - operating leases (in years) | 19 years 2 months 12 days | 20 years 4 months 24 days | 19 years 2 months 12 days | 20 years 4 months 24 days | |
Weighted average discount rate - finance leases | 9.30% | 10.50% | 9.30% | 10.50% | |
Weighted average discount rate - operating leases | 5.50% | 5.40% | 5.50% | 5.40% | |
Future minimum payments (principal and interest) under these finance leases | |||||
2022 | $ 35,675 | $ 35,675 | |||
2023 | 34,812 | 34,812 | |||
2024 | 34,997 | 34,997 | |||
2025 | 31,738 | 31,738 | |||
2026 | 26,829 | 26,829 | |||
Thereafter | 248,490 | 248,490 | |||
Total minimum lease obligations | 412,541 | 412,541 | |||
Less-amounts representing interest | (173,002) | (173,002) | |||
Present value of minimum lease obligations | 239,539 | 239,539 | |||
Current maturities | (16,685) | (16,685) | $ (15,702) | ||
Finance lease obligations, net of current maturities | 222,854 | 222,854 | 203,438 | ||
Future minimum payments under these operating lease agreements | |||||
2022 | 17,802 | 17,802 | |||
2023 | 18,295 | 18,295 | |||
2024 | 17,243 | 17,243 | |||
2025 | 15,228 | 15,228 | |||
2026 | 13,116 | 13,116 | |||
Thereafter | 115,788 | 115,788 | |||
Total minimum lease obligations | 197,472 | 197,472 | |||
Less-amounts representing interest | (71,095) | (71,095) | |||
Present value of minimum lease obligations | 126,377 | 126,377 | |||
Current maturities | (11,312) | (11,312) | (11,151) | ||
Lease obligations, net of current maturities | $ 115,065 | $ 115,065 | $ 111,318 | ||
Minimum | |||||
Finance leases-fiber lease agreements | |||||
Initial terms | 15 years | 15 years | |||
Maximum | |||||
Finance leases-fiber lease agreements | |||||
Initial terms | 20 years | 20 years |
Description of the business _11
Description of the business and recent developments: Recent Accounting Pronouncements - to be adopted (Details) $ in Millions | Jan. 01, 2019USD ($) |
Cumulative effect adjustment | ASU 2016-02 | |
Recent accounting pronouncements- adopted | |
Asset and lease liability | $ 97.3 |
Description of the business _12
Description of the business and recent developments: Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Description of the business and recent developments: | ||||
Balance at Beginning of Period | $ 1,673 | $ 2,115 | $ 1,921 | $ 1,771 |
Current-period Provision for Expected Credit Losses | 1,340 | 1,174 | 4,539 | 3,942 |
Write offs Charged Against Allowance | (1,600) | (1,085) | (5,047) | (3,509) |
Balance at End of Period | 1,413 | 2,204 | 1,413 | 2,204 |
Bad debt recoveries | $ 300 | $ 400 | $ 1,900 | $ 800 |
Description of the business _13
Description of the business and recent developments: Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Description of the business and recent developments: | ||||
Bad debt expense, net of recoveries | $ 1 | $ 0.8 | $ 2.6 | $ 3.2 |
Property and equipment_ (Detail
Property and equipment: (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property and equipment: | ||||
Depreciation and amortization | $ 22,609 | $ 21,619 | $ 66,675 | $ 61,022 |
Capitalized salaries and related benefits of employees | $ 3,100 | $ 3,000 | $ 10,400 | $ 8,900 |
Long-term debt_ (Details)
Long-term debt: (Details) $ in Thousands, € in Millions | Jun. 09, 2020USD ($)$ / € | May 31, 2021USD ($) | Jun. 30, 2020USD ($)$ / € | Jun. 30, 2020EUR (€) | Jun. 30, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021EUR (€) | May 07, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020EUR (€)$ / € | Jun. 30, 2019EUR (€) | Jun. 25, 2019EUR (€) |
Long-term debt | |||||||||||||||
Realized foreign exchange gain on issuance on 2024 Euro Notes | $ 2,547 | ||||||||||||||
Foreign Currency Transaction Gain Loss Unrealized On 2024 Euro Notes | $ 10,169 | $ (17,315) | $ 23,759 | (17,827) | |||||||||||
Net proceeds from issuance of senior unsecured 2024 Euro Notes | $ 152,100 | ||||||||||||||
Interest Rate Swap | |||||||||||||||
Long-term debt | |||||||||||||||
Interest expense | 3,100 | 3,100 | |||||||||||||
Senior unsecured 2024 Notes | |||||||||||||||
Long-term debt | |||||||||||||||
Face amount | $ 405,600 | $ 405,600 | € 350 | € 215 | € 135 | € 135 | |||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% | ||||||||||
Discount rate (as a percent) | 99.50% | 99.50% | |||||||||||||
Original amount issued at a discount | $ 240,000 | € 213.9 | |||||||||||||
Foreign currency exchange rate at Euro to USD | $ / € | 1.133 | 1.112 | 1.112 | ||||||||||||
Realized foreign exchange gain on issuance on 2024 Euro Notes | $ 2,500 | ||||||||||||||
Foreign Currency Transaction Gain Loss Unrealized On 2024 Euro Notes | $ 10,200 | $ 17,300 | $ 23,800 | 17,800 | |||||||||||
Net proceeds from issuance of senior unsecured 2024 Euro Notes | $ 240,300 | € 215 | 240,285 | ||||||||||||
Debt costs | $ 2,137 | ||||||||||||||
Senior unsecured 2021 notes | |||||||||||||||
Long-term debt | |||||||||||||||
Face amount | $ 189,200 | ||||||||||||||
Interest rate (as a percent) | 5.625% | 5.625% | |||||||||||||
Senior secured 2026 Notes | |||||||||||||||
Long-term debt | |||||||||||||||
Face amount | $ 500,000 | $ 500,000 | $ 500,000 | ||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||||||||||||
Proceeds from Issuance of Secured Debt | $ 496,933 | ||||||||||||||
Discount on issuance of debt | 1,800 | ||||||||||||||
Debt costs | $ 1,317 | ||||||||||||||
Redemption price percentage of principal amount redeemed | 100.00% | ||||||||||||||
Senior secured notes due 2022 | |||||||||||||||
Long-term debt | |||||||||||||||
Face amount | $ 284,100 | $ 284,100 | $ 115,900 | ||||||||||||
Interest rate (as a percent) | 5.375% | ||||||||||||||
Senior secured debt outstanding | $ 284,100 | ||||||||||||||
Redemption of debt | $ 45,000 | ||||||||||||||
Redemption price percentage of principal amount redeemed | 100.00% | ||||||||||||||
Interest amount deposited with trustee | $ 11,500 | ||||||||||||||
Senior secured notes due 2022 | Interest Rate Swap | |||||||||||||||
Long-term debt | |||||||||||||||
Face amount | $ 3,100 | $ 3,100 |
Long-term debt_ Limitations und
Long-term debt: Limitations under the Indentures (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Long-term debt | |
Amount unrestricted and permitted for investment payments | $ 226.3 |
Restriction on incurring additional indebtedness | Senior unsecured 2024 Notes | Minimum | |
Long-term debt | |
Consolidated leverage ratio | 6 |
Consolidated secured leverage ratio | 4.25 |
Restriction on incurring additional indebtedness | Senior unsecured 2024 Notes | Maximum | |
Long-term debt | |
Consolidated leverage ratio | 1 |
Consolidated secured leverage ratio | 1 |
Restriction on incurring additional indebtedness | Senior secured 2026 Notes | Minimum | |
Long-term debt | |
Consolidated leverage ratio | 6 |
Consolidated secured leverage ratio | 4 |
Fixed charge coverage ratio | 2 |
Restriction on incurring additional indebtedness | Senior secured 2026 Notes | Maximum | |
Long-term debt | |
Consolidated leverage ratio | 1 |
Consolidated secured leverage ratio | 1 |
Fixed charge coverage ratio | 1 |
Restriction on dividends and stock purchases | Maximum | |
Long-term debt | |
Fixed charge coverage ratio | 2 |
Restriction on dividends and stock purchases | Senior secured 2026 Notes | |
Long-term debt | |
Fixed charge coverage ratio | 1 |
Restriction on dividends and stock purchases | Senior secured 2026 Notes | Minimum | |
Long-term debt | |
Consolidated leverage ratio | 6 |
Fixed charge coverage ratio | 2 |
Restriction on dividends and stock purchases | Senior secured 2026 Notes | Maximum | |
Long-term debt | |
Consolidated leverage ratio | 1 |
Fixed charge coverage ratio | 1 |
Increase in unrestricted payment amount | Maximum | |
Long-term debt | |
Consolidated leverage ratio | 4.25 |
Long-term debt_ Debt extinguish
Long-term debt: Debt extinguishment and redemptions of 2022 Notes (Details) € in Millions | Dec. 01, 2021USD ($) | May 06, 2021USD ($) | Apr. 06, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | May 31, 2021 | May 07, 2021USD ($) | Jun. 30, 2020EUR (€) | Jun. 30, 2019EUR (€) | Jun. 25, 2019EUR (€) |
Senior unsecured 2021 notes | ||||||||||||
Long-term debt | ||||||||||||
Interest rate (as a percent) | 5.625% | 5.625% | ||||||||||
Principal amount plus accrued and unpaid interest (as a percent) | 100.00% | |||||||||||
Face amount | $ 189,200,000 | |||||||||||
Interest | 1,600,000 | |||||||||||
Loss on debt purchase | $ 600,000 | |||||||||||
Senior unsecured 2024 Notes | ||||||||||||
Long-term debt | ||||||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | ||||||||
Face amount | $ 405,600,000 | € 350 | € 215 | € 135 | € 135 | |||||||
Senior notes outstanding | 405,600,000 | € 350 | ||||||||||
Senior secured notes due 2022 | ||||||||||||
Long-term debt | ||||||||||||
Interest rate (as a percent) | 5.375% | |||||||||||
Principal amount plus accrued and unpaid interest (as a percent) | 103.20% | |||||||||||
Face amount | $ 115,900,000 | $ 284,100,000 | ||||||||||
Interest | 400,000 | |||||||||||
Loss on debt purchase | $ 3,900,000 | |||||||||||
Notice issued for redemption of debt | $ 45,000,000 | |||||||||||
Amount of debt redeemed | $ 45,000,000 | 45,000,000 | ||||||||||
Redemption value | $ 1,900,000 | |||||||||||
Redemption price per $1,000 aggregate principal amount | 41.41533 | |||||||||||
Accrued interest value | $ 400,000 | |||||||||||
Accrued interest per $1,000 aggregate principal amount | 9.70486 | |||||||||||
Senior notes outstanding | $ 284,100,000 | |||||||||||
Senior secured notes due 2022 | Subsequent Event | ||||||||||||
Long-term debt | ||||||||||||
Interest | $ 11,500,000 | |||||||||||
Loss on debt purchase | $ 10,800,000 | |||||||||||
Senior secured 2026 Notes | ||||||||||||
Long-term debt | ||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | ||||||||||
Face amount | $ 500,000,000 | $ 500,000,000 | ||||||||||
Senior notes outstanding | $ 500,000,000 |
Commitments and contingencies_
Commitments and contingencies: Current and potential litigation (Details) - USD ($) $ in Millions | Oct. 25, 2021 | Sep. 30, 2021 | Mar. 31, 2015 |
Commitments and contingencies | |||
Estimate of possible loss in excess of accrual | $ 3.5 | ||
CIMA | |||
Commitments and contingencies | |||
Loss contingency, damages awarded, value | $ 0.7 | ||
Spain | |||
Commitments and contingencies | |||
Estimate of possible loss | $ 9 |
Income taxes_ Components of (lo
Income taxes: Components of (loss) income before income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of income before income taxes | ||||
Domestic | $ 24,849 | $ (4,084) | $ 54,179 | $ 27,818 |
Foreign | (2,825) | (2,471) | (8,024) | (10,242) |
Income (loss) before income taxes | $ 22,024 | $ (6,555) | $ 46,155 | $ 17,576 |
Common stock buyback program_ (
Common stock buyback program: (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Common stock buyback program: | ||||
Remaining authorized amount for common stock repurchases | $ 30.4 | $ 30.4 | ||
Repurchase of common stock (in shares) | 0 | 4,567 | 0 | 4,567 |
Stock Buyback Amount During the Period | $ 0.3 | $ 0.3 |
Dividends on common stock_ (Det
Dividends on common stock: (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 03, 2021 | Nov. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Dividends on common stock and return of capital program | ||||
Dividends paid | $ 110,736 | $ 94,952 | ||
Subsequent Event | ||||
Dividends on common stock and return of capital program | ||||
Quarterly dividend payment approved (per share) | $ 0.83 | |||
Estimated | ||||
Dividends on common stock and return of capital program | ||||
Dividends paid | $ 38,400 |
Related party transactions_ (De
Related party transactions: (Details) - CEO - Lease - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 31, 2015 | |
Office lease | |||||
Fixed annual rent | $ 1 | ||||
Lease term (in years) | 5 years | ||||
Payment for rent and related costs (in dollars) | $ 0.5 | $ 0.5 | $ 1.3 | $ 1.3 |
Segment information_ (Details)
Segment information: (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Geographic information | |||||
Number of operating segments | segment | 1 | ||||
Revenues | $ 147,927 | $ 142,302 | $ 442,584 | $ 424,205 | |
Long-lived assets, net | 454,722 | 454,722 | $ 430,351 | ||
On-net | |||||
Geographic information | |||||
Revenues | 111,099 | 105,091 | 332,087 | 312,346 | |
Off-net | |||||
Geographic information | |||||
Revenues | 36,656 | 37,092 | 110,079 | 111,458 | |
Non-core | |||||
Geographic information | |||||
Revenues | 172 | 119 | 418 | 401 | |
North America | |||||
Geographic information | |||||
Revenues | 117,661 | 115,253 | 351,198 | 345,999 | |
Long-lived assets, net | 326,350 | 326,350 | 306,652 | ||
North America | On-net | |||||
Geographic information | |||||
Revenues | 85,569 | 82,730 | 255,157 | 247,679 | |
North America | Off-net | |||||
Geographic information | |||||
Revenues | 31,945 | 32,416 | 95,680 | 97,951 | |
North America | Non-core | |||||
Geographic information | |||||
Revenues | 147 | 107 | 361 | 369 | |
Europe | |||||
Geographic information | |||||
Revenues | 26,062 | 24,400 | 79,972 | 71,246 | |
Europe | On-net | |||||
Geographic information | |||||
Revenues | 21,658 | 19,966 | 66,450 | 58,433 | |
Europe | Off-net | |||||
Geographic information | |||||
Revenues | 4,379 | 4,422 | 13,465 | 12,781 | |
Europe | Non-core | |||||
Geographic information | |||||
Revenues | 25 | 12 | 57 | 32 | |
Asia Pacific | |||||
Geographic information | |||||
Revenues | 2,934 | 2,026 | 8,091 | 5,572 | |
Asia Pacific | On-net | |||||
Geographic information | |||||
Revenues | 2,657 | 1,786 | 7,279 | 4,880 | |
Asia Pacific | Off-net | |||||
Geographic information | |||||
Revenues | 277 | 240 | 812 | 692 | |
Europe and other | |||||
Geographic information | |||||
Long-lived assets, net | 128,372 | 128,372 | $ 123,699 | ||
Africa | |||||
Geographic information | |||||
Revenues | 174 | 10 | 345 | 10 | |
Africa | On-net | |||||
Geographic information | |||||
Revenues | 173 | 10 | 342 | 10 | |
Africa | Off-net | |||||
Geographic information | |||||
Revenues | 1 | 3 | |||
South America | |||||
Geographic information | |||||
Revenues | 1,096 | 613 | 2,978 | 1,378 | |
South America | On-net | |||||
Geographic information | |||||
Revenues | 1,042 | 599 | 2,859 | 1,344 | |
South America | Off-net | |||||
Geographic information | |||||
Revenues | $ 54 | $ 14 | $ 119 | $ 34 |