WASHINGTON, Feb. 27 /PRNewswire-FirstCall/ -- Cogent Communications
Group, Inc. (Nasdaq: CCOI) today announced net service revenue of $50.0
million for the three months ended December 31, 2007, an increase of 23.3%
over $40.5 million for the three months ended December 31, 2006. On-net
revenue was $40.5 million for the three months ended December 31, 2007, an
increase of 35.1% over $30.0 million for the three months ended December
31, 2006. On-net service is provided to customers located in buildings that
are physically connected to Cogent's network by Cogent facilities. Off-net
revenue was $8.0 million for the three months ended December 31, 2007, a
decrease of 5.4% from $8.4 million for the three months ended December 31,
2006. Off-net customers are located in buildings directly connected to
Cogent's network using other carriers' facilities and services to provide
the last mile portion of the link from the customers' premises to Cogent's
network. Non-core revenue was $1.5 million for the three months ended
December 31, 2007, a decrease of 29.8% from $2.1 million for the three
months ended December 31, 2006. Non-core services are legacy services,
which Cogent acquired and continues to support but does not actively sell.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020204/DCM032LOGO )
Net service revenue was $185.7 million for the year ended December 31,
2007 an increase of 24.5% over $149.1 million for the year ended December
31, 2006. On-net revenue was $146.6 million for the year ended December 31,
2007, an increase of 39.3% over $105.3 million for the year ended December
31, 2006. Off-net revenue was $32.1 million for the year ended December 31,
2007, a decrease of 6.7% from $34.4 million for the year ended December 31,
2006. Non-core revenue was $6.9 million for the year ended December 31,
2007, a decrease of 26.1% from $9.4 million for the year ended December 31,
2006.
Gross profit, excluding equity-based compensation expense, increased
36.7% from $20.2 million for the three months ended December 31, 2006 to
$27.6 million for the three months ended December 31, 2007. Gross profit
margin, excluding equity-based compensation expense, increased from 49.8%
for the three months ended December 31, 2006 to 55.2% for the three months
ended December 31, 2007. Gross profit, excluding equity-based compensation
expense, increased 42.3% from $69.0 million for the year ended December 31,
2006 to $98.1 million for the year ended December 31, 2007. Gross profit
margin, excluding equity-based compensation expense, expanded from 46.3%
for the year ended December 31, 2006 to 52.8% for the year ended December
31, 2007.
Earnings before interest, taxes, depreciation and amortization
(EBITDA), as adjusted, was $13.3 million for the three months ended
December 31, 2007, an increase of 67.5%, over $8.0 million for the three
months ended December 31, 2006. EBITDA, as adjusted, margin increased from
19.7% for the three months ended December 31, 2006 to 26.7% for the three
months ended December 31, 2007. EBITDA, as adjusted, was $46.2 million for
the year ended December 31, 2007, an increase of 104.2%, over $22.6 million
for the year ended December 31, 2006. EBITDA, as adjusted, margin increased
from 15.2% for the year ended December 31, 2006 to 24.9% for the year ended
December 31, 2007.
Basic and diluted net loss applicable to common stock was $(0.15) per
share for the three months ended December 31, 2007 compared to $(0.21) per
share for the three months ended December 31, 2006. Weighted average common
shares outstanding - basic and diluted - were 46.9 million for the three
months ended December 31, 2007 as compared to 48.5 million for the three
months ended December 31, 2006. Basic and diluted net loss applicable to
common stock was $(0.65) per share for the year ended December 31, 2007
compared to $(1.16) per share for the year ended December 31, 2006.
Weighted average common shares outstanding - basic and diluted - were 47.8
million for the year ended December 31, 2007 as compared to 46.3 million
for the year ended December 31, 2006.
Total customer connections were 14,982 as of December 31, 2007 compared
to 12,315 as of December 31, 2006, an increase of 21.7%. On-net customer
connections were 11,192 as of December 31, 2007 compared to 7,778 as of
December 31, 2006, an increase of 43.9%. Off-net customer connections were
2,986 as of December 31, 2007 compared to 3,528 as of December 31, 2006, a
decrease of 15.4%. Non-core customer connections were 804 as of December
31, 2007 compared to 1,009 as of December 31, 2006, a decrease of 20.3%.
The number of on-net buildings increased by 110 from 1,107 as of
December 31, 2006 to 1,217 as of December 31, 2007.
Outlook - First Quarter 2008 Estimates
-- Cogent estimates net service revenue for the first quarter of 2008 to
increase by over 4.0% from the fourth quarter of 2007 to be over $52.0
million.
-- Cogent estimates that its On-net revenues for the first quarter of 2008
will increase by over 7.0% from the fourth quarter of 2007.
-- Cogent estimates EBITDA, as adjusted, for the first quarter of 2008 to
be over $14.5 million.
-- Cogent estimates its net loss per basic and diluted common share for
the first quarter of 2008 to be between $(0.17) and $(0.22). Cogent's
guidance includes an expected $5.5 million to $6.0 million of estimated
non-cash equity-based compensation expense and assumes approximately
46.0 million weighted average common shares outstanding.
Outlook - Full Year 2008 Estimates
Cogent is refining and updating the following previously released
fiscal year 2008 estimates:
-- Cogent estimates net service revenue for fiscal 2008 to be between
$225.0 million and $235.0 million.
-- Cogent estimates that its on-net revenues will increase from 30% to 33%
from fiscal year 2007 to fiscal year 2008.
-- Cogent estimates EBITDA, as adjusted, for fiscal 2008 to be between
$75.0 million and $80.0 million.
-- Cogent estimates its net loss per basic and diluted common share for
fiscal 2008 to be between $(0.10) and $(0.20) from its previously
released guidance of between $(0.15) and $(0.30). Cogent's 2008 net
loss per basic and diluted common share guidance includes $18.0 million
to $19.0 million of non-cash equity-based compensation expense from its
previously released guidance of between $14.5 million to $15.5 million
of non-cash equity-based compensation expense and assumes 46.0 million
weighted average common shares outstanding from its previously released
guidance of 47.0 million weighted average common shares outstanding.
-- Cogent's previously released fiscal 2008 guidance of its net loss per
basic and diluted common share assumed the adoption of FASB Staff
Position APB 14-a "Accounting for Convertible Debt Instruments That May
Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)"
as of January 1, 2008. The adoption of FASB Staff Position APB 14-a,
as proposed, was expected to result in an increase to the discount on
Cogent's convertible senior notes with a corresponding increase to
stockholder's equity. This accounting change was expected to result in
an additional $9.0 million of non-cash interest expense for fiscal
2008. The adoption date of FASB Staff Position APB 14-a was previously
expected to be January 1, 2008. The adoption date has been delayed by
the FASB, so Cogent has removed the impact of the adoption of FASB
Staff Position APB 14-a from its fiscal 2008 guidance.
Conference Call and Web site Information
Cogent will host a conference call with financial analysts at 8:30 a.m.
(ET) on February 27, 2008 to discuss Cogent's operating results for the
fourth quarter of 2007 and fiscal year 2007 and Cogent's expectations for
the first quarter of 2008 and fiscal year 2008. Investors and other
interested parties may access a live audio webcast of the earnings call
under "Events" at the Investor Relations section of Cogent's website at
http://www.cogentco.com/htdocs/events.php. A replay of the web cast,
together with the press release, will be available on the website following
the earnings call.
About Cogent Communications
Cogent Communications (Nasdaq: CCOI) is a multinational, Tier 1
facilities-based ISP. Cogent specializes in providing businesses with high
speed Internet access and point-to-point transport services. Cogent's
facilities-based, all-optical IP network backbone spans over 20 countries
and provides IP services in over 100 markets located in North America and
Europe.
Cogent Communications is headquartered at 1015 31st Street, NW,
Washington, D.C. 20007. For more information, visit http://www.cogentco.com.
Cogent Communications can be reached in the United States at (202) 295-4200
or via email at info@cogentco.com.
COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES
Summary of Financial and Operational Results
Q1 2006 Q2 2006 Q3 2006 Q4 2006
Metric ($ in 000's, except
share and per share data) -
unaudited
On-Net revenue $22,693 $25,142 $27,465 $29,976
% Change from previous Qtr. 8.1% 10.8% 9.2% 9.1%
Off-Net revenue $9,114 $8,583 $8,296 $8,422
% Change from previous Qtr. -5.3% -5.8% -3.3% 1.5%
Non-Core revenue (1) $2,640 $2,430 $2,193 $2,117
% Change from previous Qtr. 1.4% -8.0% -9.7% -3.5%
Net service revenue - total $34,447 $36,155 $37,954 $40,515
% Change from previous Qtr. 3.7% 5.0% 5.0% 6.7%
Network operations
expenses (2) $20,337 $20,076 $19,353 $20,340
% Change from previous Qtr. 1.9% -1.3% -3.6% 5.1%
Gross profit (2) $14,110 $16,079 $18,601 $20,175
% Change from previous Qtr. 6.4% 14.0% 15.7% 8.5%
Gross profit margin (2) 41.0% 44.5% 49.0% 49.8%
Selling, general and
administrative expenses (3) $10,785 $11,594 $11,749 $12,465
% Change from previous Qtr. 0.1% 7.5% 1.3% 6.1%
Depreciation and amortization
expenses $14,144 $14,658 $14,878 $14,735
% Change from previous Qtr. -15.3% 3.6% 1.5% -1.0%
Equity-based compensation
expense $3,499 $3,372 $2,619 $1,019
% Change from previous Qtr. -7.2% -3.6% -22.3% -61.1%
Net loss $(16,441) $(15,491) $(11,854) $(9,971)
% Change from previous Qtr. 19.0% 5.8% 23.5% 15.9%
Basic and diluted net loss per
common share $(0.38) $(0.34) $(0.24) $(0.21)
% Change from previous Qtr. 19.1% 10.5% 29.4% 12.5%
Weighted average common
shares - basic and
diluted 43,841,837 45,099,826 48,463,130 48,510,716
% Change from previous Qtr. 0.5% 2.9% 7.5% 0.1%
EBITDA, as adjusted (4) $3,325 $4,485 $6,852 $7,964
% Change from previous Qtr. 34.0% 34.9% 52.8% 16.2%
EBITDA, as adjusted margin (4) 9.7% 12.4% 18.1% 19.7%
Cash (used in)
provided by
operating
activities $(1,591) $4,918 $1,498 $460
% Change from
previous Qtr. 41.9% 409.1% -69.5% -69.3%
Capital
expenditures $4,662 $7,097 $6,138 $3,585
% Change from
previous Qtr. -10.2% 52.2% -13.5% -41.6%
Customer
Connections -
end of period
On-Net 5,267 6,051 6,919 7,778
% Change from
previous Qtr. 13.1% 14.9% 14.3% 12.4%
Off-Net 3,614 3,461 3,356 3,528
% Change from
previous Qtr. -10.3% -4.2% -3.0% 5.1%
Non Core 1,185 1,129 1,097 1,009
% Change from
previous Qtr. -9.1% -4.7% -2.8% -8.0%
Total 10,066 10,641 11,372 12,315
% Change from
previous Qtr. 0.8% 5.7% 6.9% 8.3%
Other - end of
period
Buildings On-Net 1,053 1,076 1,094 1,107
Employees 334 337 361 372
Q1 2007 Q2 2007 Q3 2007 Q4 2007
Metric ($ in 000's, except
share and per share data) -
unaudited
On-Net revenue $33,153 $35,295 $37,646 $40,511
% Change from previous Qtr. 10.6% 6.5% 6.7% 7.6%
Off-Net revenue $8,460 $7,938 $7,757 $7,968
% Change from previous Qtr. 0.5% -6.2% -2.3% 2.7%
Non-Core revenue (1) $2,008 $1,875 $1,566 $1,486
% Change from previous Qtr. -5.1% -6.6% -16.5% -5.1%
Net service revenue - total $43,621 $45,108 $46,969 $49,965
% Change from previous Qtr. 7.7% 3.4% 4.1% 6.4%
Network operations expenses
(2) $21,015 $21,428 $22,710 $22,395
% Change from previous Qtr. 3.3% 2.0% 6.0% -1.4%
Gross profit (2) $22,606 $23,680 $24,259 $27,570
% Change from previous Qtr. 12.0% 4.8% 2.4% 13.6%
Gross profit margin (2) 51.8% 52.5% 51.6% 55.2%
Selling, general and
administrative expenses (3) $12,562 $12,625 $12,512 $14,312
% Change from previous Qtr. 0.8% 0.5% - 0.9% 14.4%
Depreciation and amortization
expenses $15,907 $16,332 $16,627 $16,773
% Change from previous Qtr. 8.0% 2.7% 1.8% 0.9%
Equity-based compensation
expense $1,619 $2,466 $3,061 $3,238
% Change from previous Qtr. 58.9% 52.3% 24.1% 5.8%
Net loss $(9,404) $(9,192) $(5,423) $(7,006)
% Change from previous Qtr. 5.7% 2.3% 41.0% -29.2%
Basic and diluted net loss per
common share $(0.19) $(0.19) $(0.12) $(0.15)
% Change from previous Qtr. 9.5% 0.0% 36.8% -25.0%
Weighted average common
shares - basic and
diluted 48,655,385 48,378,853 47,073,070 46,885,843
% Change from previous Qtr. 0.3% -0.6% -2.7% -0.4%
EBITDA, as adjusted (4) $10,057 $11,055 $11,747 $13,340
% Change from previous Qtr. 26.3% 9.9% 6.3 13.6%
EBITDA, as adjusted margin (4) 23.1% 24.5% 25.0% 26.7%
Cash (used in) provided by
operating activities $13,627 $10,286 $11,256 $13,461
% Change from previous Qtr. 2,862.4% -24.5% 9.4% 19.6%
Capital expenditures $7,580 $9,548 $8,977 $4,284
% Change from
previous Qtr. 111.4% 26.0% -6.0% -52.3%
Customer
Connections -
end of period
On-Net 8,565 9,773 10,501 11,192
% Change from
previous Qtr. 10.1% 14.1% 7.4% 6.6%
Off-Net 3,433 3,128 3,021 2,986
% Change from
previous Qtr. -2.7% -8.9% -3.4% -1.2%
Non Core 941 885 861 804
% Change from
previous Qtr. -6.7% -6.0% -2.7% -6.6%
Total 12,939 13,786 14,383 14,982
% Change from
previous Qtr. 5.1% 6.5% 4.3% 4.2%
Other - end of
period
Buildings On-Net 1,129 1,159 1,189 1,217
Employees 372 394 421 451
(1) Consists of legacy services of companies whose assets or businesses
were acquired by Cogent, including voice services (only provided in
Toronto, Canada), point-to-point private line services and managed
modem services.
(2) Excludes equity-based compensation expense of $105, $101, $79, $31,
$49, $74, $61 and $65 in the three months ended March 31, 2006, June
30, 2006, September 30, 2006, December 31, 2006, March 31, 2007, June
30, 2007, September 30, 2007 and December 31, 2007, respectively.
(3) Excludes equity-based compensation expense of $3,394, $3,271, $2,540,
$988, $1,570, $2,392, $3,000 and $3,173 in the three months ended
March 31, 2006, June 30, 2006, September 30, 2006, December 31, 2006,
March 31, 2007, June 30, 2007, September 30, 2007 and December 31,
2007, respectively.
(4) See schedule of non-GAAP metrics below for definition and
reconciliation to GAAP measures. EBITDA, as adjusted, includes net
gains from the disposition of assets of $27, $254, $13 and $82 in the
three months ended March 31, 2006, December 31, 2006, March 31, 2007
and December 31, 2007, respectively. EBITDA, as adjusted, excludes
gains on lease restructurings of $255, $154 and $2,110 for the three
months ended September 30, 2006, March 31, 2007 and September 30,
2007, respectively.
Schedule of Non-GAAP Measures - EBITDA and EBITDA, as adjusted
EBITDA represents net (loss) income before income taxes, net interest
expense, depreciation and amortization. Management believes the most
directly comparable measure to EBITDA calculated in accordance with GAAP is
cash flows (used in) provided by operating activities.
EBITDA, as adjusted, represents EBITDA less gains on lease
restructurings. The Company has excluded these gains because they relate to
its capital structure. The Company believes EBITDA, as adjusted, is a
useful measure of its ability to service debt, fund capital expenditures,
expand its business and make bonus determinations for its employees.
EBITDA, as adjusted, is an integral part of the internal reporting and
planning system used by management as a supplement to GAAP financial
information. The Company also believes that EBITDA is a frequently used
measure by securities analysts, investors, and other interested parties in
their evaluation of issuers.
EBITDA and EBITDA, as adjusted, are not recognized terms under
generally accepted accounting principles in the United States, or GAAP, and
accordingly, should not be viewed in isolation or as a substitute for the
analysis of results as reported under GAAP, but rather as a supplemental
measure to GAAP. For example, EBITDA is not intended to reflect the
Company's free cash flow, as it does not consider certain current or future
cash requirements, such as capital expenditures, contractual commitments,
and changes in working capital needs, interest expenses and debt service
requirements. The Company's calculations of EBITDA and EBITDA, as adjusted,
may also differ from the calculation of EBITDA and EBITDA, as adjusted, by
its competitors and other companies and as such, its utility as a
comparative measure is limited.
COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES
EBITDA and EBITDA, as adjusted, are reconciled to cash flows (used in)
provided by operating activities in the table below.
Q1 2006 Q2 2006 Q3 2006 Q4 2006
($ In 000's) - unaudited
Cash flows (used in) provided
by operating activities $(1,591) $4,918 $1,498 $460
Changes in operating assets and
liabilities 3,261 (1,854) 4,489 5,710
Cash interest expense (income) 1,628 1,421 865 1,540
Gains on lease restructurings
and asset sales 27 - 255 254
EBITDA, including gains $3,325 $4,485 $7,107 $7,964
Gains on lease restructurings - - (255) -
EBITDA, as adjusted $3,325 $4,485 $6,852 $7,964
Q1 2007 Q2 2007 Q3 2007 Q4 2007
($ In 000's) - unaudited
Cash flows (used in)
provided by operating
activities $13,627 $10,286 $11,256 $13,461
Changes in operating assets
and liabilities (4,947) (144) 590 (351)
Cash interest expense
(income) 1,364 913 (99) 148
Gains on lease restructurings
and asset sales 167 - 2,110 82
EBITDA, including gains $10,211 $11,055 $13,857 $13,340
Gains on lease restructurings (154) - (2,110) -
EBITDA, as adjusted $10,057 $11,055 $11,747 $13,340
Q1 2008 2008
Estimated Midpoint
Estimated
($ In 000's) - unaudited
Cash flows (used in) provided by
operating activities $13,500 $70,000
Changes in operating assets and
liabilities 500 4,500
Cash interest expense (income) 500 3,000
Gains on lease restructurings and
asset sales - -
EBITDA, including gains $14,500 $77,500
Gains on lease restructurings - -
EBITDA, as adjusted $14,500 $77,500
Cogent's SEC filings are available online via the Investor Relations
section of http://www.cogentco.com or on the Securities and Exchange Commission's
website at http://www.sec.gov.
COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2006 AND 2007
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
2006 2007
-------- --------
Assets
Current assets:
Cash and cash equivalents $42,642 $177,021
Short term investments ($0 and $812
restricted, respectively) 80 812
Accounts receivable, net of allowance for
doubtful accounts of $1,233 and $1,159,
respectively 20,053 21,760
Prepaid expenses and other current assets 5,339 6,636
-------- --------
Total current assets 68,114 206,229
Property and equipment:
Property and equipment 512,321 561,907
Accumulated depreciation and amortization (249,053) (316,487)
-------- --------
Total property and equipment, net 263,268 245,420
Intangible assets, net 1,150 165
Deposits and other assets ($1,118 and $306
restricted, respectively) 4,344 3,511
-------- --------
Total assets $336,876 $455,325
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,096 $12,868
Accrued liabilities 11,779 12,891
Convertible subordinated notes, net of discount
of $1,213 8,978 -
Current maturities, capital lease obligations 6,027 7,717
-------- --------
Total current liabilities 35,880 33,476
Capital lease obligations, net of current
maturities 82,019 84,857
Convertible senior notes, net of
discount of $4,133 - 195,867
Other long term liabilities 3,345 2,295
-------- --------
Total liabilities 121,244 316,495
-------- --------
Commitments and contingencies:
Stockholders' equity:
Common stock, $0.001 par value; 75,000,000 shares
authorized; 48,928,108 and 47,929,874 shares
issued and outstanding, respectively 49 48
Additional paid-in capital 478,140 430,402
Stock purchase warrants 764 764
Accumulated other comprehensive income-foreign
currency translation adjustment 1,638 3,600
Accumulated deficit (264,959) (295,984)
-------- --------
Total stockholders' equity 215,632 138,830
-------- --------
Total liabilities and stockholders' equity $336,876 $455,325
======== ========
COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND DECEMBER 31, 2007
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
2006 2007
---------- ----------
Service revenue, net $ 149,071 $ 185,663
Operating expenses:
Network operations (including $315
and $208 of equity-based
compensation expense, respectively,
exclusive of amounts shown separately) 80,421 87,756
Selling, general, and administrative
(including $10,194 and $10,176 of
equity-based compensation expense,
and $2,584 and $2,005 of bad debt
expense, respectively) 56,787 62,187
Depreciation and amortization 58,414 65,638
---------- ----------
Total operating expenses 195,622 215,581
---------- ----------
Operating loss (46,551) (29,918)
Gains- lease obligation restructurings 255 2,110
Gains-disposition of assets 254 95
Interest income and other 2,969 6,914
Interest expense (10,684) (10,226)
---------- ----------
Net loss $(53,757) $(31,025)
========== ==========
Net loss per common share:
Basic and diluted net loss per common share $(1.16) $(0.65)
========== ==========
Weighted-average common shares-basic
and diluted 46,343,372 47,800,159
========== ==========
COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2006 AND DECEMBER 31, 2007
(UNAUDITED AND IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
2006 2007
---------- ----------
Service revenue, net $40,515 $49,965
Operating expenses:
Network operations (including $31
and $65 of equity-based compensation
expense, respectively, exclusive of
amounts shown separately) 20,371 22,460
Selling, general, and administrative (including
$988 and $3,173 of equity-based compensation
expense, and $582 and $584 of bad debt
expense, respectively) 13,453 17,485
Depreciation and amortization 14,735 16,773
---------- ----------
Total operating expenses 48,559 56,718
---------- ----------
Operating loss (8,044) (6,753)
Gains-disposition of assets 254 82
Interest income and other 497 2,139
Interest expense (2,678) (2,474)
---------- ----------
Net loss $(9,971) $(7,006)
========== ==========
Net loss per common share:
Basic and diluted net loss per common share $(0.21) $(0.15)
========== ==========
Weighted-average common shares-basic and
diluted 48,510,716 46,885,843
========== ==========
COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND DECEMBER 31, 2007
(UNAUDITED AND IN THOUSANDS)
2006 2007
------- -------
Cash flows from operating activities:
Net cash provided by operating activities $5,285 $48,630
------- -------
Cash flows from investing activities:
Purchases of property and equipment (21,526) (30,389)
Purchases of intangible assets (100) -
Maturities (purchases) of short term investments 1,203 (732)
Proceeds from asset sales 945 257
------- -------
Net cash used in investing activities (19,478) (30,864)
------- -------
Cash flows from financing activities:
Proceeds from issuance of senior convertible notes, net - 195,147
Purchases of common stock - (59,949)
Repayment of convertible subordinated notes - (10,187)
Proceeds from sales of common stock, net 36,479 -
Repayment of capital lease obligations (9,861) (9,812)
Proceeds from exercises of common stock options 427 1,106
------- -------
Net cash provided by financing activities 27,045 116,305
------- -------
Effect of exchange rate changes on cash (93) 308
------- -------
Net increase in cash and cash equivalents 12,759 134,379
Cash and cash equivalents, beginning of year 29,883 42,642
------- -------
Cash and cash equivalents, end of year $42,642 $177,021
======= =======
Except for historical information and discussion contained herein,
statements contained in this release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to statements identified by
words such as "believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "projects" and similar expressions. The statements in
this release are based upon the current beliefs and expectations of
Cogent's management and are subject to significant risks and uncertainties.
Actual results may differ from those set forth in the forward-looking
statements. Numerous factors could cause or contribute to such differences.
Some of the factors and risks associated with our business are discussed in
Cogent's filings with the Securities and Exchange Commission.
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