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Cogent Communications Holdings Inc. (CCOI+1.89%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in service revenue to $257.2 million from $275.4 million in the same quarter the previous year, with the decline attributed to cancellations of low-margin and non-core customers acquired with the Sprint Business (TMUS+0.17%).
Network operations expenses decreased to $161.6 million from $173.6 million, reflecting efforts to reduce costs associated with the Sprint Business acquisition.
Selling, general, and administrative expenses increased to $67.7 million from $65.3 million, primarily due to an increase in bad debt expense related to the Sprint Business.
Depreciation and amortization expenses were $85.8 million, compared to $86.7 million in the previous year, with the decrease resulting from a change in estimated useful life for owned fiber acquired in the Sprint Business.
Interest income from the IP Transit Services Agreement was $5.4 million, down from $10.3 million in the previous year.
Interest expense, including changes in valuation of the interest rate swap agreement, was $26.9 million, compared to $29.0 million, reflecting changes in the swap agreement valuation.
The company reported an income tax benefit of $16.9 million, up from $13.6 million in the previous year, due to projected operating results related to the Sprint Business acquisition.
Cogent's acquisition of the Sprint Business contributed to an increase in service revenue for the nine months ended September 30, 2024, totaling $783.8 million, up from $668.8 million in the previous year.
The company issued $300.0 million of 2027 Mirror Notes and $206.0 million of IPv4 Notes during the period, with proceeds used for general corporate purposes and to prepay an IRU finance lease agreement.
Cogent's total indebtedness at September 30, 2024, was $1.9 billion, including $482.6 million of finance lease obligations for dark fiber under long-term IRU agreements.
Cash, cash equivalents, and restricted cash totaled $316.1 million as of September 30, 2024, with $29.9 million restricted for use under the company's Swap Agreement.
The company declared a quarterly dividend of $0.995 per common share, with an estimated payment of $47.2 million expected on December 6, 2024.
Cogent continues to focus on integrating the Sprint Business, reducing operating costs, and expanding its product offerings to include wavelength and optical transport services.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cogent Communications Holdings Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.