EQIX Reports Q2-19

I failed to post the Equinix (EQIX) earnings when it was posted on early August due to some unusual numbers that required some double checks.

As reported by Seeking Alpha

Q2-19 FFO Actual was $4.16/share - a miss of 5 cents per share.

Q2-19 Revenue Actual was $1.38 billion - a miss of 2 million.

EQIX retains a heck of a lot of FFO (a metric provided in the prior sector updated posted earlier today) - and that may be the source of funds that then caused the falling in debt and the fall in interest payments. The credit metrics have had a large improvement in 2019 - and they were not bad to begin with.

EQIX	Equinix	Q2-19	Q1-19	Q4-18	Q3-18	Q2-18	Q1-18	Q4-17	Q3-17	Q2-17	Q1-17	Q4-16	Q3-16	Q2-16	Q1-16	Q4-15	Q3-15
	FFO	352,973	326,073	332,816	340.030	289.525	290.755	285.618	286.119	219.760	200.866	219.868	187.831	201.505	115.875	131.483	151.197
	FFO/share	4.16	3.97	4.12	4.24	3.63	3.65	3.61	3.63	2.80	2.74	3.06	2.61	2.83	1.68	2.14	2.59
	LTM FFO/share	16.49	15.96	15.64	15.13	14.52	13.69	12.78	12.23	11.21	11.24	10.18	9.26	9.24	9.28	10.69	4.19
	AFFO	497,647	488,120	414,145	402.250	428.126	414.576	381.527	391.289	360.114	304.110	293.785	284.179	290.529	209.846	178.293	210.361
	AFFO/share	5.87	5.95	5.13	5.01	5.37	5.21	4.82	4.97	4.59	4.15	4.08	3.95	4.04	2.98	2.85	3.55
	LTM AFFO/share	21.96	21.46	20.72	20.41	20.37	19.59	18.53	17.79	17.66	16.22	15.05	13.82	13.42	13.13	13.92	14.46
	AFFO Guidance	22.69	23.08	22.69	20.31	20.20	20.28	20.38	18.26	17.92	15.66	17.19
	EBITDA $ Guidance	2,675	2,660	2,630	2,405	2,399	2,415	2,385	2,053	2,039	1,860	1,842	1,653	1,663	1,705	1,678	1,269
	AFFO $ Guidance	1,920	1,895	1,850	1,629	1,616	1,850	1,635	1,469	1,439	1,331	1,313	1,062	1,045	830	810	868
	My calc. nAFFO Guidance	22.64	23.08	22.92	20.29	20.20	20.19	20.66	18.66	18.33	18.14	18.24	14.77	14.52	11.74	12.85	14.62
	Share Count	84,800	82,090	80,720	80,283	79,752	79,649	79,128	78,719	78,508	73,367	71,959	71,908	71,991	70,686	63,046	59,367
	Recurring Revenue	1,363,662	1,363,218	1,230,318	1,206,401	1,186,426	1,150,629	1,122,216	1,087,363	1,008,424	895,613	887,748	874,149	851,300	797,100	686,100	646,700
	Revenue/share	16.08	16.61	15.24	15.03	14.88	14.45	14.18	13.81	12.86	12.21	12.20	12.16	11.83	11.28	10.88	10.89
	FFO/share to Rev/share	25.9%	23.9%	27.0%	28.2%	24.4%	25.2%	25.5%	26.3%	21.8%	22.4%	25.1%	21.5%	23.9%	14.9%	19.7%	23.8%
	AFFO/sh to Revenue/share	36.5%	35.8%	33.7%	33.3%	36.1%	36.1%	34.0%	36.0%	35.7%	34.0%	33.4%	32.5%	34.1%	26.4%	26.2%	32.6%
	Revenue/Investments	30.4%	30.4%	27.0%	26.9%	26.8%	27.8%	27.7%	27.9%	26.3%	31.5%	32.6%	31.3%	31.1%	28.7%	39.8%	40.9%
	Investments Property	10,992,740	10,898,210	11,026,020	10,682,826	10,378,915	9,696,692	9,394,602	9,006,171	8,746,595	7,605,829	7,199,210	7,251,399	6,958,794	6,888,232	5,606,436	5,218,595
	Investments Goodwill	4,768,880	4,808,085	4,836,388	4,852,549	4,870,300	4,486,155	4,411,762	4,226,490	4,225,553	3,053,026	2,986,064	3,118,686	3,190,197	3,336,968	1,063,200	983,530
	Investments Intangibles	2,201,405	2,243,106	2,333,296	2,383,377	2,440,087	2,356,608	2,384,972	2,335,175	2,382,230	710,706	719,231	803,260	788,955	867,536	224,565	123,454
	Investments	17,963,025	17,949,401	18,195,704	17,918,752	17,689,302	16,539,455	16,191,336	15,567,836	15,354,358	11,369,561	10,904,505	11,173,170	10,937,946	11,092,736	6,894,201	6,325,579
	Net Debt(CapLease+Mort+SrNts)	9,374,000	11,021,583	10,880,525	11,032,519	10,484,000	9,137,000	8,717,000	8,479,000	8,299,000	4,325,000	6,058,000	5,975,000	6,562,000	7,241,000	3,551,000	4,333,000
	Enterprise Value	52,014,000	47,471,000	45,347,000	45,347,000	44,664,000	44,539,000	44,539,000	43,395,000	41,750,000	35,519,000	31,580,000	31,689,000	34,120,000	16,860,000	23,087,000	19,995,000
	Net Debt/share	110.54	134.26	134.79	137.42	131.45	114.72	110.16	107.71	104.82	58.95	84.19	83.09	91.15	102.44	56.32	72.99
	Interest Expense	120,547	122,846	129,978	130,566	134,673	126,277	126,144	121,828	119,042	111,758	101,297	92,200	100,322	160,648	78,293	76,269
	Interest Expense/Debt	5.14%	4.46%	4.78%	4.73%	5.14%	5.53%	5.79%	5.75%	5.74%	10.33%	6.69%	6.17%	6.12%	8.87%	8.82%	7.04%
	Blended borrowing rate	4.11%	4.11%	4.13%	4.12%	4.13%	4.00%	4.13%	4.18%	5.16%	4.59%	4.67%	4.74%	4.63%	4.89%	4.58%	4.89%
	Net Debt/EBITDA	3.4x	3.6x	4.3x	4.3x	4.3x	3.9x	3.9x	4.1x	4.1x	2.5x	3.5x	3.6x	3.9x	4.3x	3.2x	3.4x
	FFO/Investments	7.86%	7.27%	7.32%	7.95%	6.55%	7.03%	7.06%	7.35%	5.73%	7.07%	8.07%	6.73%	7.37%	4.18%	7.63%	9.65%

"Enterprise value" is not a metric that I consistently track. So I can not tell you the importance of the significant improvement there.

Falling debt results in falling expenses. And while interest expenses fell - they did not fall proportionately - resulting in a higher interest expense to debt ratio. The Debt/EBITDA ratio is back to being tiny again. It is logical that as interest expenses fall - the FFO to investment ratio rises.

Bottom line - there is good news happening. But that news is not showing up in the place I would normally look for good news. I look for news to change the FFO and their forward projections. That is not happening. But it is still good news.

I look forward to any comments that would help me size the importance of the major change in "enterprise value".