Cogent Communications Reports Third Quarter 2017 Results and Increases Regular Quarterly Dividend on Common Stock

COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

Summary of Financial and Operational Results

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Metric ($ in 000's, except share and per share data) – unaudited

On-Net revenue

$78,705

$79,539

$81,846

$83,511

$83,586

$85,586

$87,898

  % Change from previous Qtr.

2.9%

1.1%

2.9%

2.0%

0.1%

2.4%

2.7%

Off-Net revenue

$29,356

$30,149

$30,972

$31,861

$33,386

$33,980

$34,865

  % Change from previous Qtr.

3.3%

2.7%

2.7%

2.9%

4.8%

1.8%

2.6%

Non-Core revenue (1)

$230

$267

$239

$224

$231

$211

$206

  % Change from previous Qtr.

-5.3%

16.1%

-10.5%

-6.3%

3.1%

-8.7%

-2.4%

Service revenue – total

$108,291

$109,955

$113,057

$115,596

$117,203

$119,777

$122,969

  % Change from previous Qtr.

3.0%

1.5%

2.8%

2.2%

1.4%

2.2%

2.7%

Constant currency total revenue quarterly growth rate – sequential quarters (4)

3.0%

0.9%

3.1%

2.9%

1.6%

1.7%

1.2%

Constant currency total revenue quarterly growth rate – year over year quarters (4)

12.2%

11.1%

9.7%

10.2%

8.7%

9.6%

7.7%

Network operations expenses (2)

$47,156

$47,727

$48,666

$49,943

$50,551

$50,974

$53,405

  % Change from previous Qtr.

3.2%

1.2%

2.0%

2.6%

1.2%

0.8%

4.8%

GAAP gross profit (3)

$43,261

$43,479

$45,426

$45,434

$48,003

$49,765

$50,238

  % Change from previous Qtr.

4.7%

0.5%

4.5%

0.0%

5.7%

3.7%

1.0%

GAAP gross margin (3)

39.9%

39.5%

40.2%

39.3%

41.0%

41.5%

40.9%

Non-GAAP gross profit (4) (6)

$61,135

$62,228

$64,391

$65,653

$66,652

$68,803

$69,564

  % Change from previous Qtr.

2.8%

1.8%

3.5%

2.0%

1.5%

3.2%

1.1%

Non-GAAP gross margin (4) (6)

56.5%

56.6%

57.0%

56.8%

56.9%

57.4%

56.6%

Selling, general and administrative expenses (5)

$27,472

$27,278

$27,220

$28,576

$28,925

$28,704

$29,360

  % Change from previous Qtr.

11.1%

-0.7%

-0.2%

5.0%

1.2%

-0.8%

2.3%

Depreciation and amortization expense

$17,753

$18,604

$18,804

$20,073

$18,538

$18,897

$19,147

  % Change from previous Qtr.

-1.4%

4.8%

1.1%

6.7%

-7.6%

1.9%

1.3%

Equity-based compensation expense

$2,181

$2,687

$2,991

$2,876

$2,647

$3,225

$3,734

  % Change from previous Qtr.

-15.2%

23.2%

11.3%

-3.8%

-8.0%

21.8%

15.8%

Operating income

$15,675

$17,511

$16,063

$14,795

$18,666

$19,000

$17,891

  % Change from previous Qtr.

-3.1%

11.7%

-8.3%

-7.9%

26.2%

1.8%

-5.8%

Interest expense

$10,065

$10,243

$9,891

$10,602

$11,891

$12,090

$12,266

  % Change from previous Qtr.

-2.1%

1.8%

-3.4%

7.2%

12.2%

1.7%

1.5%

Net income

$3,354

$4,224

$3,459

$3,892

$4,136

$4,317

$3,650

Basic net income per common share

$0.08

$0.09

$0.08

$0.09

$0.09

$0.10

$0.08

Diluted net income per common share

$0.08

$0.09

$0.08

$0.09

$0.09

$0.10

$0.08

Weighted average common shares – basic

44,402,640

44,491,899

44,574,583

44,577,826

44,649,645

44,717,372

44,767,163

  % Change from previous Qtr.

0.2%

0.2%

0.2%

0.0%

0.2%

0.2%

0.1%

Weighted average common shares – diluted

44,593,710

44,757,494

44,816,860

44,803,782

44,917,014

44,988,655

45,118,607

  % Change from previous Qtr.

0.2%

0.4%

0.1%

0.0%

0.3%

0.2%

0.3%

EBITDA (6)

$33,663

$34,950

$37,171

$37,077

$37,727

$40,099

$40,204

  % Change from previous Qtr.

-3.1%

3.8%

6.4%

-0.3%

1.8%

6.3%

0.3%

EBITDA margin

31.1%

31.8%

32.9%

32.1%

32.2%

33.5%

32.7%

Gains on asset related transactions

$1,946

$4,439

$687

$667

$2,124

$1,023

$397

EBITDA, as adjusted (6)

$35,609

$39,389

$37,858

$37,744

$39,851

$41,122

$40,601

  % Change from previous Qtr.

-3.1%

10.6%

-3.9%

-0.3%

5.6%

3.2%

-1.3%

EBITDA, as adjusted, margin

32.9%

35.8%

33.5%

32.7%

34.0%

34.3%

33.0%

 Fees – net neutrality

$493

$1,036

$1,315

$432

$2

$188

$824

Net cash provided by operating activities

$27,557

$23,698

$22,833

$33,879

$23,514

$28,045

$28,783

  % Change from previous Qtr.

25.3%

-14.0%

-3.7%

48.4%

-30.6%

19.3%

2.6%

Capital expenditures

$15,034

$14,260

$8,745

$7,195

$12,249

$12,007

$10,927

  % Change from previous Qtr.

203.0%

-5.1%

-38.7%

-17.7%

70.2%

-2.0%

-9.0%

Principal payments on capital leases

$3,369

$3,935

$2,354

$2,808

$3,854

$2,194

$3,320

  % Change from previous Qtr.

2.9%

16.8%

-40.2%

19.3%

37.3%

-43.1%

51.3%

Dividends paid

$16,171

$16,671

$17,169

$18,199

$18,999

$19,946

$20,879

Purchases of common stock

$ -

$ -

$ 1,666

$ 2,826

$ -

$ 1,829

$ -

Gross Leverage Ratio

4.39

3.94

3.89

4.73

4.64

4.62

4.57

Net Leverage Ratio

2.97

2.88

2.90

2.90

2.94

2.98

3.00

Customer Connections – end of period

On-Net

47,252

49,243

51,079

52,874

54,805

57,307

59,357

  % Change from previous Qtr.

3.9%

4.2%

3.7%

3.5%

3.7%

4.6%

3.6%

Off-Net

7,654

7,971

8,259

8,598

9,055

9,355

9,724

  % Change from previous Qtr.

5.2%

4.1%

3.6%

4.1%

5.3%

3.1%

4.2%

Non-Core (1)

450

349

386

350

383

340

336

  % Change from previous Qtr.

12.5%

-22.4%

10.6%

-9.3%

9.4%

-11.2%

-1.2%

Total customer connections

55,356

57,563

59,724

61,822

64,243

66,982

69,417

  % Change from previous Qtr.

4.1%

4.0%

3.8%

3.5%

3.9%

4.3%

3.6%

On-Net Buildings – end of period

Multi-Tenant office buildings

1,545

1,560

1,577

1,592

1,601

1,618

1,635

Carrier neutral data center buildings

675

686

706

729

752

767

784

Cogent data centers

51

51

51

52

53

53

53

Total on-net buildings

2,271

2,297

2,334

2,373

2,406

2,438

2,472

Square feet – multi-tenant office buildings – on-net

834,341,216

840,042,330

847,266,071

858,958,167

864,432,176

872,293,092

881,184,145

Network  – end of period

Intercity route miles

56,183

56,183

56,684

57,213

57,213

57,403

57,403

Metro fiber miles

28,316

28,874

29,326

29,536

30,190

30,516

31,071

Connected networks – AS's

5,617

5,700

5,834

5,927

5,949

5,983

6,076

Headcount – end of period

Sales force – quota bearing

398

397

394

422

432

434

444

Sales force - total

517

519

516

542

554

559

565

Total employees

855

854

858

887

900

909

919

Sales rep productivity – units per full time equivalent sales rep ("FTE") per month

6.3

5.9

5.7

6.1

6.1

6.5

5.7

FTE – sales reps

373

373

377

384

416

410

420

(1)

Consists of legacy services of companies whose assets or businesses were acquired by Cogent, primarily including voice services (only provided in Toronto, Canada).

(2)

Network operations expense excludes equity-based compensation expense of $121, $145, $161, $146, $111, $141 and $179 in the three month periods ended March 31, 2016 through September 30, 2017, respectively.  Network operations expense includes excise taxes, including Universal Service Fund fees of $2,003, $2,156, $2,362, $2,549, $2,604, $2,672 and $2,691 in the three month periods ended March 31, 2016 through September 30, 2017, respectively. 

(3)

GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity based compensation included in network operations expense.  GAAP gross margin is defined as GAAP gross profit divided by total service revenue.

(4)

Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue.  Management believes that Non-GAAP gross profit and Non-GAAP gross profit margin are relevant metrics to provide investors, as they are metrics that management uses to measure the margin available to the company after network service costs, in essence a measure of the efficiency of the Company's network.

(5)

Excludes equity-based compensation expense of $2,060, $2,542, $2,830, $2,730, $2,536, $3,084 and $3,555 in the three month periods ended March 31, 2016 through September 30, 2017, respectively. 

(6)

See schedule of non-GAAP metrics below for definitions and reconciliations to GAAP measures below.

Q1
2016

Q2
2016

Q3
2016

Q4
2016

Year
2016

Q1

2017

Q2

2017

Q3

2017

($ in 000's) – unaudited

Net cash flows provided by operating activities

$27,557

$23,698

$22,833

$33,879

$107,967

$23,514

$28,045

$28,783

Changes in operating assets and liabilities

(3,681)

1,755

4,737

(6,781)

(3,968)

3,192

950

721

Cash interest expense and income tax expense

9,787

9,497

9,601

9,979

38,861

11,021

11,104

10,700

EBITDA

$33,663

$34,950

$37,171

$37,077

$142,860

$37,727

$40,099

$40,204

PLUS: Gains on asset related transactions

1,946

4,439

687

667

7,739

2,124

1,023

397

EBITDA, as adjusted

$35,609

$39,389

$37,858

$37,744

$150,599

$39,851

$41,122

$40,601

EBITDA margin

31.1%

31.8%

32.9%

32.1%

32.0%

32.2%

33.5%

32.7%

EBITDA, as adjusted, margin

32.9%

35.8%

33.5%

32.7%

33.7%

34.0%

34.3%

33.0%

($ in 000's) – unaudited

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Year

2016

Q1

2017

Q2

2017

Q3

2017

Service revenue, as reported – current period

$108,291

$109,955

$113,057

$115,596

$446,900

$117,203

$119,777

$122,969

Impact of foreign currencies on service revenue

(10)

(709)

273

749

892

195

(531)

(1,701)

Service revenue - as adjusted  for currency impact (1)

$108,281

$109,246

$113,330

$116,345

$447,792

$117,398

$119,246

$121,268

Service revenue, as reported – prior sequential period

$105,177

$108,291

$109,955

$113,057

$404,234

$115,596

$117,203

$119,777

Constant currency increase

$3,104

$955

$3,375

$3,288

$43,558

$1,802

$2,043

$1,491

Constant currency percent increase

3.0%

0.9%

3.1%

2.9%

10.8%

1.6%

1.7%

1.2%

(1)

Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information.

($ in 000's) – unaudited

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Year

2016

Q1

2017

Q2

2017

Q3

2017

Service revenue, as reported – current period

$108,291

$109,955

$113,057

$115,596

$446,900

$117,203

$119,777

$122,969

Impact of foreign currencies on service revenue

855

(168)

(68)

276

892

503

743

(1,257)

Service revenue - as adjusted for currency impact  (2)

$109,146

$109,787

$112,989

$115,872

$447,792

$117,706

$120,520

$121,712

Service revenue, as reported – prior year period

$97,242

$98,799

$103,017

$105,177

$404,234

$108,291

$109,955

$113,057

Constant currency increase

$11,904

$10,988

$9,972

$10,695

$43,558

$9,415

$10,565

$8,655

Percent increase

12.2%

11.1%

9.7%

10.2%

10.8%

8.7%

9.6%

7.7%

(2)

Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the comparable prior year period. The Company believes that disclosing year over year revenue growth without the impact of foreign currencies on service revenue is a useful measure of revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information.

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Year 2016

Q1 2017

Q2 2017

Q3 2017

($ in 000's) – unaudited

Service revenue total

$108,291

$109,955

$113,057

$115,596

$446,900

$117,203

$119,777

$122,969

Minus - Network operations expense including equity-based compensation and including depreciation and amortization expense

65,030

66,476

67,631

70,162

269,299

69,200

70,012

72,731

GAAP Gross Profit (1)

$43,261

$43,479

$45,426

$45,434

$177,601

$48,003

$49,765

$50,238

Plus  - Equity-based compensation – network operations expense

121

145

161

146

573

111

141

179

Plus – Depreciation and amortization expense

17,753

18,604

18,804

20,073

75,234

18,538

18,897

19,147

Non-GAAP Gross Profit (2)

$61,135

$62,228

$64,391

$65,653

$253,408

$66,652

$68,803

$69,564

GAAP Gross Margin (1)

39.9%

39.5%

40.2%

39.3%

39.7%

41.0%

41.5%

40.9%

Non-GAAP Gross Margin (2)

56.5%

56.6%

57.0%

56.8%

56.7%

56.9%

57.4%

56.6%

(1)

GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity based compensation included in network operations expense.  GAAP gross margin is defined as GAAP gross profit divided by total service revenue.

(2)

Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue.  Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant metrics to provide to investors, as they are metrics that management uses to measure the margin and amount available to the Company after network service costs, in essence these are measures of the efficiency of the Company's network.

($ in 000's) – unaudited

As of June 30, 2017

As of September 30, 2017

Cash and cash equivalents

$256,492

$250,765

Debt

Capital leases – current portion

7,635

6,698

Capital leases – long term

142,155

147,623

Senior unsecured notes

189,225

189,225

Senior secured notes

375,000

375,000

Note payable

9,445

9,915

Total debt

723,460

728,461

Total net debt

466,968

477,696

Trailing 12 months EBITDA, as adjusted

156,575

159,318

Gross leverage ratio

4.62

4.57

Net leverage ratio

2.98

3.00

COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2017 AND DECEMBER 31, 2016

(IN THOUSANDS, EXCEPT SHARE DATA)

September 30,
2017

December 31,
2016

      (Unaudited)

Assets

Current assets:

Cash and cash equivalents

$

250,765

$

274,319

Accounts receivable, net of allowance for doubtful accounts of $2,044 and $1,734, respectively

39,118

33,598

Prepaid expenses and other current assets

20,427

19,706

Total current assets

310,310

327,623

Property and equipment, net

381,010

361,641

Deferred tax assets, net

32,668

42,241

Deposits and other assets - $727 and $128 restricted, respectively

5,872

6,387

Total assets

$

729,860

$

737,892

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

$

12,314

$

11,551

Accrued and other current liabilities

47,449

47,149

Installment payment agreement, current portion, net of discount of $309 and $204, respectively

7,090

2,587

Current maturities, capital lease obligations

6,698

6,626

Total current liabilities

73,551

67,913

Senior secured 2022 notes, net of unamortized debt costs of $1,969 and $2,257, respectively and including premium of $402 and $462, respectively

373,433

373,205

Senior unsecured 2021 notes, net of unamortized debt costs of $2,200 and $2,575, respectively

187,025

186,650

Capital lease obligations, net of current maturities

147,623

135,335

Other long term liabilities

28,351

28,043

Total liabilities

809,983

791,146

Commitments and contingencies:

Stockholders' equity:

Common stock, $0.001 par value; 75,000,000 shares authorized; 45,946,226 and 45,478,787 shares issued and outstanding, respectively

46

45

Additional paid-in capital

452,369

442,799

Accumulated other comprehensive income — foreign currency translation

(5,912)

(17,193)

Accumulated deficit

(526,626)

(478,905)

Total stockholders' deficit

(80,123)

(53,254)

Total liabilities and stockholders' deficit

$

729,860

$

737,892

COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30, 2016

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Three Months
Ended
September 30, 2017

Three Months
Ended
September 30, 2016

(Unaudited)

(Unaudited)

Service revenue

$

122,969

$

113,057

Operating expenses:

Network operations (including $179 and $161 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below)

53,584

48,827

Selling, general, and administrative (including $3,555 and $2,830 of equity-based compensation expense, respectively)

32,915

30,050

Depreciation and amortization

19,147

18,804

Total operating expenses

105,646

97,681

Gains on equipment transactions

397

687

Operating income

17,720

16,063

Interest income and other, net

1,632

207

Interest expense

(12,266)

(9,891)

Income before income taxes

7,086

6,379

Income tax provision

(3,436)

(2,920)

Net income

$

3,650

$

3,459

Comprehensive income:

Net income

$

3,650

$

3,459

Foreign currency translation adjustment

3,790

688

Comprehensive income

$

7,440

$

4,147

Net income per common share:

Basic and diluted net income per common share

$

0.08

$

0.08

Dividends declared per common share

$

0.46

$

0.38

Weighted-average common shares – basic

44,767,163

44,574,583

Weighted-average common shares - diluted

45,118,607

44,816,860

COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30, 2016

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Nine Months
Ended
September 30, 2017

Nine Months
Ended
September 30, 2016

(Unaudited)

(Unaudited)

Service revenue

$

359 ,949

$

331,304

Operating expenses:

Network operations (including $431 and $427 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below)

155,362

143,976

Selling, general, and administrative (including $9,175 and $7,432 of equity-based compensation expense, respectively)

96,165

89,403

Depreciation and amortization

56,583

55,161

Total operating expenses

308,110

288,540

Losses on debt purchases and installment loan repayment

—

(587)

Gains on equipment transactions

3,543

7,071

Operating income

55,382

49,248

Interest income and other, net

3,502

677

Interest expense

(36,245)

(30,200)

Income before income taxes

22,639

19,725

Income tax provision

(10,536)

(8,688)

Net income

$

12,103

$

11,037

Comprehensive income:

Net income

$

12,103

$

11,037

Foreign currency translation adjustment

11,281

2,795

Comprehensive income

$

23,384

$

13,832

Net income per common share:

Basic and diluted net income per common share

$

0.27

$

0.25

Dividends declared per common share

$

1.32

$

1.11

Weighted-average common shares - basic

44,787,067

44,563,279

Weighted-average common shares - diluted

45,083,765

44,796,259

COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30, 2016

(IN THOUSANDS)

Three months
Ended
September 30, 2017

Three months
Ended
September 30, 2016

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net income

$

3,650

$

3,459

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

19,148

18,804

Amortization of debt discount

332

183

Equity-based compensation expense (net of amounts capitalized)

3,734

2,991

Gains — equipment transactions and other, net

(766)

(645)

Deferred income taxes

3,209

2,820

Changes in operating assets and liabilities:

Accounts receivable

(3,976)

(1,033)

Prepaid expenses and other current assets

1,845

179

Accounts payable, accrued liabilities and other long-term liabilities

673

(4,265)

Deposits and other assets

934

340

Net cash provided by operating activities

28,783

22,833

Cash flows from investing activities:

Purchases of property and equipment

(10,927)

(8,745)

Net cash used in investing activities

(10,927)

(8,745)

Cash flows from financing activities:

Dividends paid

(20,879)

(17,169)

Purchases of common stock

—

(1,666)

Proceeds from exercises of stock options

433

264

Principal payments on installment payment agreement

(1,232)

—

Principal payments of capital lease obligations

(3,320)

(2,354)

Net cash used in financing activities

(24,998)

(20,925)

Effect of exchange rates changes on cash

1,415

21

Net decrease in cash and cash equivalents

(5,727)

(6,816)

Cash and cash equivalents, beginning of period

256,492

154,967

Cash and cash equivalents, end of period

$

250,765

$

148,151

COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 AND SEPTEMBER 30, 2016

(IN THOUSANDS)

Nine months
Ended
September 30, 2017

Nine months
Ended
September 30, 2016

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net income

$

12,103

$

11,037

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

56,583

55,161

Amortization of debt discount and premium

899

879

Equity-based compensation expense (net of amounts capitalized)

9,606

7,859

Losses on debt purchases and installment loan repayment

—

587

Gains — equipment transactions and other, net

(4,394)

(7,124)

Deferred income taxes

9,835

8,453

Changes in operating assets and liabilities:

Accounts receivable

(4,317)

(2,478)

Prepaid expenses and other current assets

645

(3,256)

Accounts payable, accrued liabilities and other long-term liabilities

(1,411)

4,499

Deposits and other assets

793

(1,529)

Net cash provided by operating activities

80,342

74,088

Cash flows from investing activities:

Purchases of property and equipment

(35,183)

(38,039)

Net cash used in investing activities

(35,183)

(38,039)

Cash flows from financing activities:

Dividends paid

(59,824)

(50,011)

Purchases of common stock

(1,829)

(1,666)

Purchases of senior secured 2021 notes

—

(10,775)

Proceeds from exercises of stock options

919

894

Principal payments on installment payment agreement

(2,183)

(21,203)

Principal payments of capital lease obligations

(9,368)

(9,658)

Net cash used in financing activities

(72,285)

(92,419)

Effect of exchange rates changes on cash

3,572

930

Net decrease in cash and cash equivalents

(23,554)

(55,440)

Cash and cash equivalents, beginning of period

274,319

203,591

Cash and cash equivalents, end of period

$

250,765

$

148,151