Sizzling Mover Update: Switch, Inc. (NYSE-SWCH)

On Thursday 23 May, Switch, Inc. (NYSE-SWCH) oscillated between $12.47 and $12.73 before concluding trading period lower/higher -0.24% at $12.70. The stock recorded total trading quantity of 836,110 shares as compared to its average volume of 1,270,593 shares. The firm has a total market worth of $1.27M and $3.09B shares remain outstanding.

Switch, Inc. (SWCH) recently reported financial results for the quarter and the year ended December 31, 2018.

2018 Financial Results

  • Total revenue of $405.9M, an raise of 7% contrast to $378.3Min 2017.
  • Operating income of $54.7M, contrast to $18.8Min 2017, which included the impact of $71.3M in non-recurring equity-based compensation expense resulting from the accelerated vesting of certain incentive units of Switch, Ltd. and related awards granted under Switch’s 2017 Incentive Award Plan in connection with Switch’s initial public offering (“IPO”). Operating income in 2018 also included a $17.5Mraise in depreciation from assets placed into service.
  • Net income of $29.3M, contrast to a loss of $8.6Mduring 2017, which included the impact of $71.3M in non-recurring equity-based compensation expense before discussed.
  • Adjusted EBITDA of $201.7M, contrast to $194.7Min 2017, an raise of 4%.
  • Capital expenditures of $276.2M, contrast to $402.6Min 2017, a decrease of 31%. The decrease in capital expenditures was Because of lower spending in The Core Campus, The Citadel Campus, and The Pyramid Campus, partially offset by raised investment in The Keep Campus. Maintenance capital expenditures were $8.0M in 2018, representing 2.0% of total revenues.
  • Churn of 0.5%, contrast to 0.6% in 2017.(1)

Fourth Quarter 2018 Financial Results

  • Quarterly revenue of $103.2M, contrast to $99.3Mfor the same quarter in 2017.
  • Operating income of $16.9M, contrast to an operating loss of $54.6Mfor the same quarter last year. Operating income in the fourth quarter of 2018 includes the impact of $7.5M in equity-based compensation expense, contrast to $79.9M in the same quarter of 2017, and $2.9M in additional depreciation from assets placed into service.
  • Net income of $11.2M, contrast to a loss of $60.3Mfor the same quarter in 2017.
  • Adjusted EBITDA of $53.6M, contrast to $51.1Mfor the same quarter in 2017; reflecting EBITDA margins of 52.0%, contrast to 51.4% for the same quarter in 2017.
  • Capital expenditures of $55.0M, contrast to $118.6Mfor the same quarter in 2017.
  • Churn of 0.4%, contrast to 0.3% for the same quarter in 2017.

Balance Sheet and Liquidity

As of December 31, 2018, Switch’s total debt outstanding, including capital lease obligations, net of cash and cash equivalents was $524.5M, equating to a net debt to fourth quarter 2018 annualized Adjusted EBITDA ratio of 2.4x. As of December 31, 2018, Switch had liquidity of $581.6M, including cash and cash equivalents and availability under its revolving line of credit.

The stock price switched up 10.73% 20-Days Simple Moving Average added 16.34% from 50-Days Simple Moving Average and rose 32.78% from 200 Days Simple Moving Average. Return on assets ratio of the Company was 0.30% and return on equity ratio was 3.00% while its return on investment ratio was 7.00%.

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