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

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First Fiscal Quarter 2020 Financial Highlights

  • $638.6 million of consolidated revenue; including $483.2 million from the Zayo Networks segment, $63.7 million from the zColo segment and $86.6 million from the Allstream segment.
  • Net income of $17.9 million resulting in basic and diluted net income per share during the quarter of $0.08.
  • $314.8 million of adjusted EBITDA, including $277.5 million from the Zayo Networks segment, $26.6 million from the zColo segment and $9.3 million from the Allstream segment.
  • Consolidated net installs, on a monthly recurring revenue (MRR) and monthly amortized revenue (MAR) basis, were $0.9 million, excluding the Allstream segment. This includes $1.1 million of net installs from the Zayo Networks segment and ($0.2) million of net installs from the zColo segment.
  • Net cash provided by operating activities of $311.8 million and adjusted unlevered free cash flow of $138.8 million.

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

First quarter net income decreased by $45.1 million over the previous quarter. During the three months ended September 30, 2019, capital expenditures were $217.1 million. As of September 30, 2019, the Company had $254.6 million of cash and $316.4 million available under its revolving credit facility.

Recent Developments

With respect to its previously announced pending merger, the Company continues to make progress on all necessary approvals and the transaction is expected to close in the first half of 2020. The closing of the merger remains subject to customary conditions, including certain regulatory approvals.

First Fiscal Quarter Financial Results

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

(in millions)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 2019

 

June 30, 2019

Revenue

 

$

638.6

 

 

$

650.6

 

Annualized revenue growth

 

 

-7

%

 

 

 

Operating income

 

 

128.9

 

 

 

121.2

 

 

 

 

 

 

 

 

Income from operations before income taxes

 

 

31.9

 

 

 

27.3

 

Provision/(benefit) for income taxes

 

 

14.0

 

 

 

(35.7

)

Net income

 

$

17.9

 

 

$

63.0

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

314.8

 

 

$

321.2

 

Annualized Adjusted EBITDA growth

 

 

-8

%

 

 

 

Adjusted EBITDA margin

 

 

49

%

 

 

49

%

 

 

 

 

 

 

 

Adjusted unlevered free cash flow

 

$

138.8

 

 

$

140.6

 

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

(in millions)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

September 30, 2019

 

September 30, 2018

Revenue

 

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