Market Overview

Zayo Group Holdings, Inc. Reports Financial Results for the Fourth Fiscal Quarter Ended June 30, 2019

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Fourth Fiscal Quarter 2019 Financial Highlights

  • $650.6 million of consolidated revenue, including $485.4 million from the Zayo Networks segment, $66.1 million from the zColo segment and $88.0 million from the Allstream segment.
  • Net income of $63.0 million resulting in basic and diluted net income per share during the quarter of $0.27 and $0.26, respectively.
  • $321.2 million of adjusted EBITDA, including $276.8 million from the Zayo Networks segment, $30.6 million from the zColo segment and $12.0 million from the Allstream segment.
  • Consolidated net installs, on a monthly recurring revenue (MRR) and monthly amortized revenue (MAR) basis, were $1.1 million, excluding the Allstream segment. This includes $1.6 million of net installs from the Zayo Networks segment, and $(0.4) million of net installs from the zColo segment.
  • Adjusted unlevered free cash flow of $140.6 million.

Zayo Group Holdings, Inc. ("Zayo" or "the Company") (NYSE:ZAYO), a global leader in Communications Infrastructure, announced results for the three months ended June 30, 2019.

Fourth quarter net income increased by $28.3 million over the previous quarter. During the three months ended June 30, 2019, capital expenditures were $195.8 million. As of June 30, 2019, the Company had $186.1 and $296.5 million available under its revolving credit facility.

Recent Developments

Significant Merger Development

On July 26, 2019, the Company held a special meeting of stockholders where the stockholders approved the adoption of the previously announced merger agreement. On July 31, 2019, the Company announced the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976. The closing of the merger remains subject to customary conditions, including certain regulatory approvals. The transaction is expected to close in the first half of 2020.

Fourth Fiscal Quarter Financial Results

Three Months Ended June 30, 2019 and March 31, 2019

(in millions)

 

 

 

Three Months Ended

 

 

June 30, 2019

 

March 31, 2019

Revenue

 

$

 

650.6

 

 

$

 

647.2

 

Annualized revenue growth

 

 

2

%

 

 

5

%

Operating income

 

 

121.2

 

 

 

131.6

 

 

 

 

 

 

 

 

Income from operations before income taxes

 

 

27.3

 

 

 

52.7

 

Provision for income taxes

 

 

(35.7

)

 

 

18.0

 

Net income

 

$

 

63.0

 

 

$

 

34.7

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

 

321.2

 

 

$

 

321.3

 

Annualized Adjusted EBITDA growth

 

 

0

%

 

 

 

Adjusted EBITDA margin

 

 

49

%

 

 

50

%

 

 

 

 

 

 

 

Levered free cash flow

 

$

 

29.3

 

 

$

 

47.2

 

Three Months Ended June 30, 2019 and June 30, 2018

(in millions)

 

 

 

Three Months Ended

 

 

June 30, 2019

 

June 30, 2018

Revenue

 

$

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