earnings call presentation€¦ · 1 quarter ended dec -15 annualized 2 every quarter since...
TRANSCRIPT
Earnings Call Presentation
Zayo Group Holdings, Inc.
Fiscal Year 2016 Q2NYSE: ZAYO@ZayoGroup
2
Safe HarborInformation contained in this presentation that is not historical by nature constitutes “forward-looking statements”
which can be identified by the use of forward-looking terminology such as “believes,” “expects,” “plans,”
“intends,” “estimates,” “projects,” “could,” “may,” “will,” “should,” or “anticipates” or the negatives thereof, other
variations thereon or comparable terminology, or by discussions of strategy. No assurance can be given that
future results expressed or implied by the forward-looking statements will be achieved and actual results may
differ materially from those contemplated by the forward-looking statements. Such statements are based on
management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those expressed or implied by the forward-looking statements.
These risks and uncertainties include, but are not limited to, those relating to Zayo Group Holdings, Inc.’s (“the
Company” or “ZGH”) financial and operating prospects, current economic trends, future opportunities, ability to
retain existing customers and attract new ones, outlook of customers, and strength of competition and pricing.
In addition, there is risk and uncertainty in the Company’s acquisition strategy including our ability to integrate
acquired companies and assets. Specifically there is a risk associated with our recent acquisitions, and the
benefits thereof, including financial and operating results and synergy benefits that may be realized from these
acquisitions and the timeframe for realizing these benefits. Other factors and risks that may affect our business
and future financial results are detailed in the “Risk Factors” section of our Annual Report or Form 10-K filed with
the Securities and Exchange Commission (“SEC”) on September 18, 2015. We caution you not to place undue
reliance on these forward-looking statements, which speak only as of their respective dates. We undertake no
obligation to publicly update or revise forward-looking statements to reflect events or circumstances after
releasing this supplemental information or to reflect the occurrence of unanticipated events, except as required
by law.
In addition to this presentation and our filings with the SEC, the Company provides a supplemental earnings
presentation, pricing supplement and a glossary of terms used throughout. All of which can be found under the
investor section of the Company’s website at http://www.zayo.com/investors.
2
Dan Caruso Chairman & Chief Executive Officer
3
4
FY 2Q16 Highlights
25th consecutive quarter of consecutive revenue growth
6% organic recurring revenue growth
record gross installs of $6.4M and near-record net installs of $2.2M
bookings of $6.8M
closed Viatel (UK/EU fiber) and Stream (Dallas colo) acquisitions
signed Allstream acquisition
Zayo at a Glance
7,442,113 fiber miles
95,178 route miles
1,949 employees
135 QBHC
Customers
6.7k customers
54% of rev from enterprise & content
46% carriers & wireless
Products
37% Dark Fiber Solutions
46% Network Connectivity
16% Colo & Cloud Infrastructure
1% Other
International Network Unique Metro Fiber Datacenters
Leading Fiber &
Datacenter Consolidator
37 acquisitions to date
5 since Jan 2015
Growth
5
Ou
r assets
Wh
at
we d
oTra
ck
reco
rd
55 zColo datacenters
>590k billable sf
People
Financial1
$
1 Quarter ended Dec -15 annualized2 Every quarter since becoming a public filer inclusive of Zayo Group, LLC operating subsidiary3 Based on average closing price for month of Dec-15
19,341 buildings
149 avg metro fiber count
$1.5B revenue
$876M adjusted EBITDA
Value Creation
25 consecutive quarters of
sequential revenue growth2
$1.1B invested equity since
2007 inception
~$6.3B equity value3
>5x return
FY2015 Q4 Earnings Presentation 6
% Revenue % EBITDA% of Adj.
UFCF
Dark Fiber Leased raw fiber
Mobile Infrastructure Tower/small cell backhaul
Subtotal
Da
rk F
ibe
r
So
luti
on
s
Wavelengths1G, 2.5G, 10G & 100G
waves
EthernetSwitched & dedicated
service
IP Services Internet access & transit
SONETLegacy carrier-grade
service
Subtotal
Ne
two
rk C
on
nec
tivit
y
1 Based on quarter ended Dec-15 Dark Fiber Solutions, Network Connectivity, & Colocation & Cloud Infrastructure segment results; revenue from “Other” segment represents 1% of total revenue
1
30% 37% 71%
7% 8% -60%
37% 45% 11%
19% 16% 4%
11% 11% 25%
9% 8% 17%
6% 6% 20%
46% 41% 66%
Interconnect-Oriented ColoSpace, power &
interconnects
Cloud ServicesInfrastructure-as-a-
Service
Subtotal
13% 12% 20%
3% 2% 2%
16% 13% 22%
Co
loc
ati
on
& C
lou
d
Infr
astr
uc
ture
Segments & Products
7
$314 $359 $365
$9
$8 $5 $324
$367 $370
$0
$50
$100
$150
$200
$250
$300
$350
$400
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Recurring Other
($M)Revenue
Q2 Financial Highlights
>98% of revenue is recurring
3% QoQ annualized total revenue growth
4% in constant currency
6% QoQ annualized recurring revenue growth
7% in constant currency
$184 $211 $217
$6
$5 $2 $190
$215 $219
59% 58% 57% 59% 58% 58% 59% 59%
$0
$50
$100
$150
$200
$250
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
($M)
Adjusted EBITDA
7% QoQ annualized total EBITDA growth
12% QoQ annualized recurring EBITDA growth
Associated with Other Revenue
Excluding Associated with Other Revenue
Adjusted EBITDA Margin
7
8
1 Includes churn replacement capex plus ~0.5% implied growth2 Quarter ended Sep-15 LFCF impacted by ~$8M non-cash charge offset in cash flow from financing activities3 Quarter ended Dec-15 includes $54M of semi-annual interest payments and $17M of deferred interest from Jun-15 quarter senior notes offerings
Q2 Financial Highlights Cont.
$120 $150 $163
$6
$7$6
$4
$3
$3
$130
$159 $172
$0
$50
$100
$150
$200
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Growth Maintenance Other
Purchases of Property & Equipment($M)
Net AFFO(capturing churn replacement)
$85
$127
$98
30% 24% 20% 26% 32% 32% 35% 27%
$0
$50
$100
$150
$200
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
Levered FCF($M) ($M)
>90% of capex growth-related
net AFFO1 of $98M or 27% of revenue
($26M) of quarterly levered free cash flow
($130) ($159)($172)
124
195146
($6)$36
($26)
24% 25% 1% -2% 11% 11% 10% -7%
($250)
($150)
($50)
$50
$150
$250
$350
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Purchases of PP&E Cash Flow From Operations LFCF
8
% of Revenue
2 3
9
Q2 Operational Highlights
Net Installations
($M)
MR
R a
nd M
AR
MR
R a
nd M
AR
($2.5) ($2.8) ($3.1)
($1.2)($1.0)
($1.0)
($3.7) ($3.8)($4.2)
-1.3% -1.3% -1.3% -1.2% -1.3% -1.2% -1.1% -1.2%($7.0)
($6.0)
($5.0)
($4.0)
($3.0)
($2.0)
($1.0)
$0.0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Hard Disconnects
Upgrades / Price Decrease / Replacement
Churn % = $4.1 $4.9 $5.1
$1.4
$1.1$1.3
$5.5$6.0
$6.4
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Upgrades / Price Increase / Replacement
Installations from New Services
Gross Installations Churn Processed($M)
$1.8$2.2 $2.2
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
MR
R a
nd M
AR
($M)
record gross install quarter at $6.4M
near-record $2.2M net installs
net installs imply 7% annualized recurring
revenue growth rate1
91 Implied by the current quarter pace of Net Installs, calculated as Net Installs annualized ($2.199M * 4 = $8.796M), divided by the beginning of quarter run-rate $119.8M = 7.3%
10
Q2 Operational Highlights Cont.
$104.8$119.8
$123.5
$0
$50
$100
$150
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
($M)Last day of quarter run-rate
(MRR+MAR)
12% QoQ annualized revenue run-rate growth
14% in constant currency
6% excluding December 31, 2015 acquisitions
7% in constant currency
record service activation pipeline represents
12% of revenue run-rate
47 months average remaining contract term
$5.9 $5.7 $6.5
$5.1 $8.4 $7.9
$11.0
$14.0 $14.4
87 91 93 90 95 96 100 98
$0
$5
$10
$15
$20
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Delivery date after 6 months
Delivery date within the next 6 months
Implied Average Days to Install
Service Activation Pipeline
10
($M)
11
$3.8 $4.4 $4.3
$1.4
$1.7 $1.6$0.1
$0.3 $0.9$5.2
$6.4$6.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
<12 Month Payback and Positive IRR >12 Month Payback and Positive IRR
Speculative Projects
Q2 Operational Highlights Cont.
$227
$404 $474
($96)($134) ($312)
17 16 35 15 38 33 12 42
($450)
($250)
($50)
$150
$350
$550
$750
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Contract Value Capex & Upfront Expenditures Payback Months
Contract Value vs. Capex on Bookings
($M)
CY15 bookings grew >20% YOY
~2/3 of bookings have <12 month payback
13% associated with speculative projects
total bookings contract value >1.5x the
associated committed capex
average payback of 42 months includes
$0.9M of speculative project bookings
Net New Sales (Bookings) Stratification
MR
R a
nd M
AR
($M)
11
12
Q2 Commercial Highlights
12
FTT market expansion and small cell acceleration drove >90% of committed
speculative projects in quarterLarge Atlanta FTT Project
fiber network to increase by >1,000 route miles
adding ~500 towers
~$100M of committed capex
175 502 596216
6981,628
391
1,200
2,224
0
500
1,000
1,500
2,000
2,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
In Service - SC Under Construction - SC
Small Cells
committed to build >1,000 incremental small cells
~$75M in committed capex
85% QoQ growth
13
Q2 Commercial Highlights Cont.
13
Bookings leverage completed and in-process FTT builds
leverages fiber from in-process FTT build
customer migrating from legacy lit service to Zayo
dark fiber
$121k MRR, >12 month payback
leverages existing network from completed FTT build
multiple, diverse 100G metro waves for high-
throughput datacenter connectivity
$75k MRR, <12 month payback
Note: Maps are shown for illustrative purposes
Metro Dark Fiber /
Municipal Government Customer
Metro Waves /
Internet Services Customer
14
Q2 Commercial Highlights Cont.
14
Bookings also leverage long-haul assets and international scale
Ethernet Private Line /
International Law Firm
10G & 1G diverse
circuits
connecting 11 US offices
$71k MRR, >12 month
payback
IP Services /
Content Infrastructure
IP via 2x 100G ports
significant upgrade at
primary datacenter
locations
$40k MRR, <12 month
payback
Metro Dark Fiber /
Alternative Carrier
dark fiber connectivity in 9US & UK/EU metro markets
leverages international tier 1
metro footprint
$59k MRR, <12 month
payback
Note: Maps are shown for illustrative purposes
Ken desGarennes Chief Financial Officer
15
FY2015 Q4 Earnings Presentation
Q2 Financial Results
161 Pro-forma annualized growth for revenue and Adjusted EBITDA are calculated as if the acquisitions occurred on the first day of the quarter preceding the respective quarter in which the acquisitions closed2 Dec-15 EPS is based on 244.8 million weighted average shares outstanding for the quarter; 244.7 million shares were outstanding on 12/31/15
($ in millions)
December 31, March 31, June 30, September 30, December 31,2014 2015 2015 2015 2015
Revenue
Zayo Dark Fiber Solutions 129.7 133.5 135.3 135.0 137.7
Zayo Network Connectivity 161.7 163.0 163.0 167.0 168.7
Zayo Colocation & Cloud Infrastructure 27.0 38.5 57.6 58.3 58.5
Other 5.5 5.7 6.0 6.5 4.7
Corporate/Intercompany Elimination 0.0 0.0 0.0 0.0 0.0
Zayo Group Holdings Revenue $323.9 $340.7 $361.9 $366.8 $369.6
Annualized revenue growth 4% 21% 25% 5% 3%
Pro-forma annualized revenue growth1 4% 6% 5% 5% 3%
Operating income/(loss) 97.1 56.7 54.7 52.1 58.7
Net Earnings/(loss) 3.8 (53.7) 5.1 (15.2) (10.8)
EPS (basic and diluted) 0.02 (0.22) 0.02 (0.06) (0.04)
EBITDA
Zayo Dark Fiber Solutions 89.6 92.6 96.8 96.6 99.1
Zayo Network Connectivity 85.6 85.7 85.0 88.7 89.9
Zayo Colocation & Cloud Infrastructure 13.4 19.5 27.8 28.4 29.0
Other 1.1 1.2 1.3 1.7 0.9
Corporate/Intercompany Elimination 0.0 0.0 0.0 0.0 0.0
Zayo Group Holdings Adjusted EBITDA $189.7 $199.0 $210.9 $215.4 $218.9
Annualized Adjusted EBITDA growth 15% 20% 24% 9% 7%
Pro-forma annualized Adjusted EBITDA
growth1 15% 10% 7% 9% 7%
Adjusted EBITDA margin 59% 58% 58% 59% 59%
Three Months Ended
2
17
Recent AcquisitionsTransform Zayo into pan-North America and European infrastructure provider
closed December 31, 2015 for $17M
Dallas datacenter adds 36k billable square feet
closed December 31, 2015 for $101M
24.2x pre-synergy LQA multiple 9.0x post-synergy
expect synergies to be substantially realized within CY16
adds 4.7k intercity and 560 metro miles of fiber
Viatel
Allstream
closed January 15, 2016 for $298M
3.7x pre-synergy LQA multiple
adds 12.5k of intercity and 5.5k metro miles of fiber
Stream Dallas
Colo Facility
Equity
18
size authorized $500M
term6 months
(expires May 9, 2016)
shares
repurchased in Q2356k
associated
capital used$8.4M
public floatPE &
Management
post-2009
investors &
management
pre-2009
investors
Estimated Shareholder Base Share Repurchase Program
Since November 16, 1015 waiver, estimate ~30M shares have transferred
from private equity ownership
243.9M shares outstanding1
1 Shares outstanding as of 2/12/2016
FY2015 Q4 Earnings Presentation
$326
$1,639
$1,430
$350
$0
$1,000
$2,000
$3,000
$4,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Balance Sheet
6.375%6.000%10.125% L+275
ample liquidity including $441M of
revolver capacity
$1.1B of net operating loss carry
forwards
19
($M)
Interest Rate
Debt Schedule1
4.3x gross leverage
>75% fixed rate incl. rate swap
>50% is unsecured
leverage neutral $400M incremental
term loan (L+350 bps / 1% floor)
closed in January to fund Allstream
1 Principal value; excludes capital lease obligations; as of 12/31/2015
($ in millions) December 31, December 31,
2014 2015
Consolidated Balance Sheet Data
Cash and cash equivalents 164 176
Property and equipment, net 2,931 3,626
Total assets 4,989 6,274
Long-term debt and capital lease
obligations,
including current portion 2,937 3,702
Total Stockholders' equity 1,075 1,248
FY2015 Q4 Earnings Presentation
($13)
$20 $26
$27 $17
-$6.0
$46.1 $42.9
($50)
($25)
$0
$25
$50
$75
$100
$125
$150
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Pre-IPO Plan Post-IPO RSU Actual Dilution1
Stock-Based Comp
20
Performance oriented stock-based compensation
post-IPO RSU plans based primarily
on measured equity IRR and share
price performance
pre-IPO plan non-dilutive to current
shares outstanding
($M)
Stock Based Compensation
2,228 157N/A N/A N/A N/A N/A N/A
1 Dilution represents the actual dilution for shares vested and delivered during the quarter
Share Dilution (000s)
0.9% 0.1%N/A N/A N/A N/A N/A N/ADilution %
FY2015 Q4 Earnings Presentation
Consolidation
21Note: Acquisitions shown on the Calendar Year in which the transactions were closed
remain active & opportunistic
CY15 was consistent with historical
pace of acquisitions
focused on fiber and datacenter targets
targeting both North America & Europe
ample debt capacity for additional deals
37 closed acquisitions totaling >$5 billion
For detailed Supplemental Earnings Information presentation, please visit:
investors.zayo.com
Q&A
Segment-Level Results
24
$1,618
$1,914 $1,907
$1,960 $1,816
$1,672
$1,914
$2,322
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
$91.6 $97.5 $107.4 $109.0 $111.3 $113.4 $115.4 $117.4
$0.3 $0.4
$0.2 $0.3 $0.2 $0.3 $0.3 $0.3
$10.9 $11.6
$13.3 $13.4 $14.3 $14.9 $15.7 $16.6
$2.7 $5.0
$6.4 $7.0 $7.6 $6.7 $3.6 $3.5
$105.5 $114.4
$127.4 $129.7 $133.5 $135.3 $135.0 $137.7
$0
$25
$50
$75
$100
$125
$150
$175
$200
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
MRR Usage MAR Other Revenue
millions
Revenue Stratification
$35 $36 $134 $9 $157 $141 $10 $181
$0
$25
$50
$75
$100
$125
$150
$175
$200
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Estimated Capital and Upfront
Expenditures associated with Net
New Sales (Bookings) less Upfront
Chargesmillions
Zayo Dark Fiber Solutions revenue stratification & operational data
thousands
($597) ($725)($945) ($818) ($993) ($836) ($761)
($1,017)
-0.6% -0.7% -0.8% -0.7% -0.8% -0.7% -0.6% -0.8%($4,500)
($4,000)
($3,500)
($3,000)
($2,500)
($2,000)
($1,500)
($1,000)
($500)
$0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Churn ProcessedGross Installations
MR
R a
nd
MA
R
MR
R a
nd
MA
R
thousands
$1,021 $1,189
$962 $1,141
$824 $837 $1,153 $1,305
12% 14% 10% 11% 8% 8% 11% 12%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Implied Recurring Revenue Growth1=
Net Installationsthousands
MR
R a
nd
MA
RChurn % =
$1,592 $2,115 $1,956 $1,239 $2,272 $2,136 $1,668 $2,165
$325
$327 $531
$212
$546 $484
$330
$373 $1,917
$2,442 $2,488
$1,450
$2,818 $2,619
$1,998
$2,538
$240M $326M $439M $101M $429M $392M $256M $357M
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Net Sales - MRR
Net Sales - MAR
Contract Value =
Net New Sales (Bookings)
thousands
MR
R a
nd
MA
R
24
Segment Information
1 Calculated as Net Installs annualized, divided by beginning quarter MRR+MAR run-rate
25
$48 $50 $58 $70 $73 $79 $94 $109
45% 44% 46% 54% 55% 58% 69% 79%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Purchases of Property and Equipment
$73 $77 $85 $90 $93 $97 $97 $99
69% 68% 67% 69% 69% 72% 72% 72%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Adjusted EBITDA
($14)
$4 $20 $35 $32 $56 $54 $76
-14% 4% 16% 27% 24% 41% 40% 55%
($25)
$0
$25
$50
$75
$100
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Net Capital1
$76 $61 $52 $41 $46 $26 $26 $7
72% 54% 40% 31% 35% 19% 20% 5%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millionsAdj Unlevered FCF3
$25 $27 $27 $20 $20 $18 $3
($10)
24% 24% 21% 15% 15% 13% 2% -7%
($25)
$0
$25
$50
$75
$100
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millionsUnlevered Free Cash Flow (FCF)2
1 Net Capital is equal to “Cash Outflows for Purchases of Property and Equipment” less “Additions to Deferred Revenue”2 Unlevered Free Cash Flow is equal to Adjusted EBITDA less “Cash Outflows for Purchases of Property and Equipment”3 Adjusted Unlevered Free Cash Flow is equal to Adjusted EBITDA less “Net Capital” less “Monthly Amortized Revenue” 25
Segment InformationZayo Dark Fiber Solutions cash flow stratification
26
$2,961 $2,899 $2,942 $3,017 $2,988
$3,307 $3,381 $3,230
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
$144.8 $146.1 $153.1 $154.0 $154.2 $156.3 $159.2 $161.6
$1.7 $1.4 $1.8 $2.4 $2.2 $1.9 $1.8 $2.5
$2.6 $2.9 $3.4 $3.4 $3.4 $3.5 $3.8 $3.9
$2.6 $3.3 $1.9 $1.9 $3.2 $1.4 $2.2 $0.7
$151.7 $153.8 $160.2 $161.7 $163.0 $163.0 $167.0 $168.7
$0
$25
$50
$75
$100
$125
$150
$175
$200
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
MRR Usage MAR Other Revenue
millions
Revenue Stratification
$2,705 $2,968 $2,735 $3,017 $3,125 $3,148 $3,259 $2,800
$94
$162
$57
$177 $95 $107 $164
$147 $2,799
$3,130
$2,792
$3,194 $3,220 $3,255 $3,423
$2,947
$100M $150M $90M $106M $103M $100M $119M $86M
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Net Sales - MRR
Net Sales - MAR
Contract Value =
Net New Sales (Bookings)
thousands
MR
R a
nd
MA
R
thousands
($2,669)($2,452)($2,458)($2,587)($2,595)
($2,263) ($2,308)($2,435)
-1.8% -1.6% -1.6% -1.6% -1.6% -1.4% -1.4% -1.5%($4,500)
($4,000)
($3,500)
($3,000)
($2,500)
($2,000)
($1,500)
($1,000)
($500)
$0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Churn ProcessedGross Installations
MR
R a
nd
MA
R
MR
R a
nd
MA
R
thousands
$292 $447 $484 $430 $393
$1,044 $1,073
$795
2% 4% 4% 3% 3% 8% 8% 6%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Net Installationsthousands
MR
R a
nd
MA
RChurn % =
$36 $41 $32 $41 $35 $35 $40 $39
$0
$25
$50
$75
$100
$125
$150
$175
$200
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Estimated Capital and Upfront
Expenditures associated with Net
New Sales (Bookings) less Upfront
Chargesmillions
26
Segment InformationZayo Network Connectivity revenue stratification & operational data
1 Calculated as Net Installs annualized, divided by beginning quarter MRR+MAR run-rate
Implied Recurring Revenue Growth1=
27
$34 $35 $46 $53 $47 $49 $47 $48
22% 23% 29% 32% 29% 30% 28% 29%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Purchases of Property and Equipment
$82 $82 $83 $86 $86 $85 $89 $90
54% 53% 52% 53% 53% 52% 53% 53%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Adjusted EBITDA
$31 $32 $40 $47 $47 $48 $38 $45
20% 21% 25% 29% 29% 29% 22% 27%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Net Capital1
$49 $46 $40 $35 $35 $34 $47 $41
32% 30% 25% 22% 22% 21% 28% 24%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millionsAdj Unlevered FCF3
$49 $47 $37 $33 $39 $36 $42 $42
32% 30% 23% 20% 24% 22% 25% 25%
$0
$25
$50
$75
$100
$125
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millionsUnlevered Free Cash Flow (FCF)2
1 Net Capital is equal to “Cash Outflows for Purchases of Property and Equipment” less “Additions to Deferred Revenue”2 Unlevered Free Cash Flow is equal to Adjusted EBITDA less “Cash Outflows for Purchases of Property and Equipment”3 Adjusted Unlevered Free Cash Flow is equal to Adjusted EBITDA less “Net Capital” less “Monthly Amortized Revenue” 27
Segment InformationZayo Network Connectivity cash flow stratification
28
$470 $443 $517 $489
$1,069
$1,189
$680
$783
$0
$250
$500
$750
$1,000
$1,250
$1,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
$18.4 $20.3 $25.5 $25.8 $34.9 $54.5 $55.4 $55.2
$0.4 $0.4 $0.6 $0.8
$1.3
$2.2 $2.2 $2.3
$0.3 $0.3 $0.4 $0.4
$0.6
$0.8 $0.8 $0.9
$0.5 $0.5 $0.3 $0.0
$1.9
$0.1
($0.1)
$0.1
$19.6 $21.5 $26.9 $27.0
$38.5
$57.6 $58.3 $58.5
($20)
$0
$20
$40
$60
$80
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
MRR Usage MAR Other Revenue
millions
Revenue Stratification
$5 $7 $2 $18 $31 $13 $14 $23
$0
$20
$40
$60
$80
$100
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Estimated Capital and Upfront
Expenditures associated with Net
New Sales (Bookings) less Upfront
Chargesmillions
thousands
($216)($237)
($301) ($262)
($475)
($700)($613) ($629)
-1.2% -1.2% -1.2% -1.0% -1.3% -1.3% -1.1% -1.1%($1,500)
($1,250)
($1,000)
($750)
($500)
($250)
$0
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Churn ProcessedGross Installations
MR
R a
nd
MA
R
MR
R a
nd
MA
R
thousands
$254 $205 $216 $227
$594
$489
$67 $154
17% 12% 10% 10% 27% 11% 1% 3%
$0
$250
$500
$750
$1,000
$1,250
$1,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Net Installationsthousands
MR
R a
nd
MA
RChurn % =
$397 $415 $452 $536 $852 $831 $847 $1,187
$22 $48 $37
$35
$80 $51 $72
$64
$420 $462 $489
$570
$932 $882 $918
$1,251
$13M $17M $15M $19M $31M $23M $30M $30M
$0
$250
$500
$750
$1,000
$1,250
$1,500
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
Net Sales - MRR
Net Sales - MAR
Contract Value =
Net New Sales (Bookings)
thousands
MR
R a
nd
MA
R
28
Segment InformationZayo Colo and Cloud Infrastructure revenue stratification & operational data
Implied Recurring Revenue Growth1=
1 Calculated as Net Installs annualized, divided by beginning quarter MRR+MAR run-rate
29
$9 $10 $11 $7 $10 $27 $19 $15
48% 47% 40% 27% 26% 47% 33% 26%
$0
$20
$40
$60
$80
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Purchases of Property and Equipment
$10 $11 $13 $13 $20 $28 $28 $29
49% 50% 50% 50% 51% 48% 49% 50%
$0
$20
$40
$60
$80
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Adjusted EBITDA
$9 $10 $12 $6 $12 $26 $18 $15
46% 44% 44% 24% 30% 46% 30% 25%
$0
$20
$40
$60
$80
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millions
Net Capital1
$0 $1 $1 $7 $7 $1 $10 $14
1% 4% 4% 24% 19% 1% 17% 23%
$0
$20
$40
$60
$80
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millionsAdj Unlevered FCF3
$0 $1 $2 $6 $9 $1 $9 $14
1% 3% 9% 23% 24% 1% 16% 24%
$0
$20
$40
$60
$80
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
% of Revenue
millionsUnlevered Free Cash Flow (FCF)2
1 Net Capital is equal to “Cash Outflows for Purchases of Property and Equipment” less “Additions to Deferred Revenue”2 Unlevered Free Cash Flow is equal to Adjusted EBITDA less “Cash Outflows for Purchases of Property and Equipment”3 Adjusted Unlevered Free Cash Flow is equal to Adjusted EBITDA less “Net Capital” less “Monthly Amortized Revenue” 29
Segment InformationZayo Colo and Cloud Infrastructure cash flow stratification
Reconciliations
Non-GAAP Financial Measures
The Company provides financial measures that are not defined under generally accepted accounting principles in the United States, or GAAP,
including Adjusted EBITDA, Adjusted EBITDA Margin, unlevered free cash flow, adjusted unlevered free cash flow, levered free cash flow, adjusted
funds from operations, and net adjusted funds from operations.
Adjusted EBITDA is defined as earnings/(loss) from continuing operations before interest, income taxes, depreciation, and amortization (“EBITDA”)
adjusted to exclude acquisition or disposal-related transaction costs, losses on extinguishment of debt, stock-based compensation, unrealized
foreign currency gains/ (losses) on intercompany loans, and non-cash income/(loss) on equity and cost method investments. Adjusted EBITDA
Margin is defined as Adjusted EBITDA divided by revenue. Unlevered free cash flow is defined as Adjusted EBITDA minus purchases of property
and equipment, net of stimulus grants. Adjusted unlevered free cash flow is defined as Adjusted EBITDA minus purchases of property and
equipment, net of stimulus grants, plus additions to deferred revenue, less non-cash monthly amortized revenue. Levered free cash flow is defined
as operating cash flow minus purchases of property and equipment, net of stimulus grants. Adjusted funds from operations (“AFFO”) is defined as
earnings/(loss) from continuing operations before depreciation and amortization, unrealized foreign currency gains/(losses) on intercompany loans,
stock-based compensation, acquisition or disposal-related transaction costs, losses on extinguishment of debt, non-cash income/(loss) on equity
and cost investments, non-cash monthly amortized revenue, less cash payments related to maintenance capital expenditures. Net AFFO is defined
as AFFO plus upfront customer payments from less than twelve month payback on net new sales less cash payments related to capital
expenditures for (i) less than twelve month payback on net new sales and (ii) network capacity. These measures are not measurements of our
financial performance under GAAP and should not be considered in isolation or as alternatives to net income, net cash flows provided by operating
activities, total net cash flows or any other performance measures derived in accordance with GAAP or as alternatives to net cash flows from
operating activities or total net cash flows as measures of our liquidity.
We use Adjusted EBITDA to evaluate our operating performance and liquidity, and we use levered free cash flow as a measure to evaluate cash
generated through normal operating activities. In addition to Adjusted EBITDA, management uses unlevered free cash flow, which measures the
ability of Adjusted EBITDA to cover capital expenditures. Adjusted EBITDA is a performance rather than cash flow measure. Correlating our capital
expenditures to our Adjusted EBITDA does not imply that we will be able to fund such capital expenditures solely with cash from operations. In
addition to these measures, we use levered free cash flow as a measure to evaluate cash generated through normal operating activities. These
metrics are among the primary measures used by management for planning and forecasting future periods. We believe the presentation of
Adjusted EBITDA is relevant and useful for investors because it allows investors to view results in a manner similar to the method used by
management and make it easier to compare our results with the results of other companies that have different financing and capital structures. We
believe that the presentation of levered free cash flow is relevant and useful to investors because it provides a measure of cash available to pay the
principal on our debt and pursue acquisitions of businesses or other strategic investments or uses of capital. We believe the presentation of AFFO
and Net AFFO is useful to investors by providing measures presented by certain datacenter and cellular tower REITs (and some non-REITs) with
which we are sometimes compared.
31
Non-GAAP Financial Measures
We also monitor Adjusted EBITDA because our subsidiaries have debt covenants that restrict their borrowing capacity that are based on a leverage
ratio, which utilizes a modified EBITDA, as defined in our credit agreement and the indentures governing our notes. The modified EBITDA is
consistent with our definition of Adjusted EBITDA; however, it includes the pro forma Adjusted EBITDA of and expected cost synergies from the
companies acquired by us during the quarter for which the debt compliance certification is due. Adjusted EBITDA results, along with the
quantitative and qualitative information, are also utilized by management and our Compensation Committee, as an input for determining incentive
payments to employees.
Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of our results of
operations and operating cash flows as reported under GAAP. For example, Adjusted EBITDA:
-does not reflect capital expenditures, or future requirements for capital and major maintenance expenditures or contractual
commitments;
- does not reflect changes in, or cash requirements for, our working capital needs;
- does not reflect the interest expense, or the cash requirements necessary to service the interest payments, on our debt; and
- does not reflect cash required to pay income taxes.
Unlevered free cash flow and adjusted unlevered free cash flow have limitations as analytical tools and should not be considered in isolation from,
or as a substitute for, analysis of our results as reported under GAAP. For example, unlevered free cash flow:
- does not reflect changes in, or cash requirements for, our working capital needs;
- does not reflect the interest expense, or the cash requirements necessary to service the interest payments, on our debt; and
- does not reflect cash required to pay income taxes.
Levered free cash flow, AFFO, and Net AFFO have limitations as an analytical tool and should not be considered in isolation from, or as a
substitute for, analysis of our results as reported under GAAP. For example, levered free cash flow, AFFO, and Net AFFO:
- does not reflect principal payments on debt;
- does not reflect principal payments on capital lease obligations;
- does not reflect dividend payments, if any; and
- does not reflect the cost of acquisitions.
32
Non-GAAP Financial Measures
Our computation of Adjusted EBITDA, unlevered free cash flow, adjusted unlevered free cash flow, levered free cash flow, AFFO,
and Net AFFO may not be comparable to other similarly titled measures computed by other companies because all companies do not
calculate these measures in the same fashion.
Because we have acquired numerous entities since our inception and incurred transaction costs in connection with each acquisition,
borrowed money in order to finance our operations and acquisitions, and used capital and intangible assets in our business, and
because the payment of income taxes is necessary if we generate taxable income after the utilization of our net operating loss
carryforwards, any measure that excludes these items has material limitations. As a result of these limitations, these measures
should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure
of our liquidity. See “Reconciliation of Non-GAAP Financial Measures” for a quantitative reconciliation of Adjusted EBITDA, AFFO,
and Net AFFO to net income/(loss) and for a quantitative reconciliation of unlevered free cash flow, adjusted unlevered free cash flow
and levered free cash flow to net cash flows provided by operating activities.
Annualized revenue and annualized Adjusted EBITDA are derived by multiplying the total revenue and Adjusted EBITDA,
respectively, for the most recent quarterly period by four. Our computations of annualized revenue and annualized Adjusted EBITDA
may not be representative of our actual annual results.
Measures referred to as being calculated on a constant currency basis are intended to present the relevant information assuming a
constant exchange rate between the two periods being compared. Such metrics are calculated by applying the currency exchange
rates used in the preparation of the prior period financial results to the subsequent period results.
Tables reconciling such non-GAAP measures are included in the Historical Financial Data & Reconciliations section of this
presentation. A glossary of terms used throughout is available under the investor section of the Company’s website at
http://www.zayo.com/investors.
33
FY2015 Q4 Earnings Presentation
ReconciliationNet (Loss)/Income to Adjusted EBITDA
34
($ in millions)
September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31,
2013 2013 2014 2014 Total 2014 2014 2015 2015 Total 2015 2015
Net (loss)/income ($27.4) ($36.8) ($41.6) ($73.5) ($179.3) ($110.5) $3.8 ($53.7) $5.1 ($155.3) ($15.2) ($10.8)
Earnings/(loss) from discontinued operations (1.7) (0.8) (1.1) 1.3 (2.3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Interest expense 51.5 50.3 49.1 52.6 203.5 46.9 53.4 60.7 53.0 214.0 53.8 51.2
Provision/(benefit) for income taxes 9.3 8.4 9.5 10.1 37.3 9.4 (4.4) (18.4) 4.6 (8.8) 2.7 11.1
Depreciation and amortization 81.0 81.7 84.2 91.3 338.2 96.0 96.9 100.1 113.2 406.2 117.1 113.7
Transaction costs 0.6 0.2 0.0 4.5 5.3 3.4 1.3 1.5 0.0 6.2 0.0 3.3
Stock-based compensation 42.9 57.0 65.2 88.6 253.7 123.1 (6.0) 40.7 42.9 200.7 46.1 42.9
Loss on extinguishment of debt 0.0 0.0 0.0 0.0 1.9 0.0 30.9 54.9 8.5 94.3 0.0 0.0
Foreign currency loss/(gain) on intercompany loans (0.6) (0.2) (0.1) (3.8) (4.7) 14.7 13.3 13.2 (16.8) 24.4 10.7 7.1
Non-cash loss on investments 0.0 1.9 0.0 0.0 0.0 0.0 0.5 0.0 0.4 0.9 0.2 0.4
Adjusted EBITDA, from continuing operations $155.6 $161.7 $165.2 $171.1 $653.6 $183.0 $189.7 $199.0 $210.9 $782.6 $215.4 $218.9
Purchases of property and equipment 86.7 88.3 90.9 94.9 360.8 115.3 129.5 130.1 155.5 530.4 159.2 172.4
Unlevered Free Cash Flow $68.9 $73.4 $74.3 $76.2 $292.8 $67.7 $60.2 $68.9 $55.4 $252.2 $56.2 $46.5
Fiscal Year
2016
Fiscal Year
2014
Fiscal Year
2015
FY2015 Q4 Earnings Presentation
Reconciliation
35
Segment Net (Loss)/Earnings to Adjusted EBITDA
($ in millions)
Zayo Dark Fiber
Solutions
Zayo
Network
Connectivity
Zayo
Colocation
and Cloud Zayo Other
Corporate /
Intercompany
Elimination
Zayo Group
Holdings
Net earnings/(loss) ($1.6) $18.0 ($9.1) $0.3 ($18.4) ($10.8)
Interest expense 24.6 17.3 9.2 0.0 0.1 51.2
Benefit for income taxes 0.0 0.0 0.0 0.0 11.1 11.1
Depreciation and amortization expense 57.3 33.6 22.3 0.5 0.0 113.7
Transaction costs 1.1 2.0 0.2 0.0 0.0 3.3
Stock-based compensation 17.5 19.1 6.2 0.1 0.0 42.9
Loss on extinguishment of debt 0.0 0.0 0.0 0.0 0.0 0.0
Foreign currency gain on intercompany loans 0.0 (0.1) 0.0 0.0 7.2 7.1
Non-cash loss on investments 0.2 0.0 0.2 0.0 0.0 0.4
Adjusted EBITDA $99.1 $89.9 $29.0 $0.9 $0.0 $218.9
Three Months Ended December 31, 2015
FY2015 Q4 Earnings Presentation
Cash from Operating Activities to UFCF, Adjusted UFCF & LFCF
36
Reconciliation
($ in millions)
September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31,
2013 2013 2014 2014 2014 2014 2015 2015 2015 2015
Net cash provided by continuing operating activities: $97.1 $142.3 $159.0 $168.1 $118.2 $123.7 $168.5 $195.0 $195.2 $146.2
Cash paid for income taxes 0.5 0.6 1.6 3.0 8.7 2.1 1.9 1.8 4.7 2.0
Cash paid for interest, net of capitalized interest 75.0 16.8 68.4 15.2 73.6 71.1 32.2 14.3 29.3 83.2
Non-liquidating distribution to common unit holders 0.0 10.0 3.0 9.1 0.0 0.0 0.0 0.0 0.0 0.0
Excess tax benefit from stock-based compensation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7.9 0.0
Transaction costs 0.6 0.2 0.0 4.5 3.5 1.3 1.5 0.0 0.0 3.3
Provision for bad debts (0.4) (0.4) (0.8) (0.3) (0.6) (0.3) (0.4) (0.6) (0.6) (1.9)
Additions to deferred revenue (24.0) (23.4) (65.2) (51.2) (43.2) (40.9) (39.5) (25.5) (49.7) (36.9)
Amortization of deferred revenue 12.6 13.6 14.2 15.2 17.3 17.3 18.3 19.2 20.4 21.5
Other changes in operating assets and liabilities (5.8) 2.0 (15.0) 7.5 5.5 15.4 16.5 6.7 8.2 1.5
Adjusted EBITDA 155.6 161.7 165.2 171.1 183.0 189.7 199.0 210.9 215.4 218.9
Purchases of property and equipment (86.7) (88.3) (90.9) (94.9) (115.3) (129.5) (130.1) (155.5) (159.2) (172.4)
Unlevered Free Cash Flow 68.9 73.4 74.3 76.2 67.7 60.2 68.9 55.4 56.2 46.5
Additions to deferred revenue 24.0 23.4 65.7 51.2 43.2 40.9 39.5 25.5 49.7 36.9
Amortization of deferred revenue (12.6) (13.6) (14.2) (15.2) (17.3) (17.3) (18.3) (19.2) (20.4) (21.5)
Adjusted Unlevered Free Cash Flow $80.3 $83.2 $125.8 $112.2 $93.7 $83.8 $90.1 $61.7 $85.5 $61.9
Reconciliation of levered free cash flow:
Net cash provided by continuing operating activities: $97.1 $142.3 $159.0 $168.1 $118.2 $123.7 $168.5 $195.0 $195.2 $146.2
Purchases of property and equipment ($86.7) ($88.3) ($90.9) ($94.9) ($115.3) ($129.5) ($130.1) ($155.5) ($159.2) ($172.4)
Levered free cash flow: $10.4 $54.0 $68.1 $73.2 $2.9 ($5.8) $38.4 $39.5 $36.0 ($26.2)
Fiscal Year
2014
Fiscal Year
2015
Fiscal Year
2016
FY2015 Q4 Earnings Presentation
AFFO & Net AFFO
37
Reconciliation
($ in millions)
September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31,
2013 2013 2014 2014 Total 2014 2014 2015 2015 Total 2015 2015
Earnings/(loss) from continuing operations ($29.1) ($37.6) ($42.7) ($72.2) ($181.6) ($110.5) $3.8 ($53.7) $5.1 ($155.3) ($15.2) ($10.8)
Depreciation and Amortization Expense $81.0 $81.7 $84.2 $91.3 $338.2 $96.0 $96.9 $100.1 $113.2 $406.2 $117.1 $113.7
Foreign currency loss/(gain) on intercompany loans (0.6) (0.2) (0.1) (3.8) (4.7) 14.6 13.4 13.2 (16.8) 24.4 10.7 7.1
Stock-based compensation 42.9 57.0 65.2 88.5 253.6 123.1 (6.0) 40.7 42.9 200.7 46.1 42.9
Transaction costs 0.6 0.2 0.0 4.5 5.3 3.5 1.2 1.5 0.0 6.2 0.0 3.3
Loss on extinguishment of debt 0.0 1.9 0.0 0.0 1.9 0.0 30.9 54.9 8.5 94.3 0.0 0.0
Non-cash loss on investments 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.4 0.9 0.2 0.4
Amortization of deferred revenue (12.6) (13.6) (14.2) (15.2) (55.6) (17.3) (17.3) (18.3) (19.2) (72.1) (20.4) (21.5)
Maintenance capital expenditures (5.1) (4.9) (4.9) (5.2) (20.1) (5.7) (5.7) (5.8) (7.5) (24.7) (7.0) (6.5)
AFFO 77.2 84.5 87.5 87.9 337.0 103.7 117.7 132.6 126.6 480.6 131.5 128.6
Upfront customer payments on <12 mo payback of new sales 32.7 48.2 32.7 45.1 158.7 25.3 18.8 68.2 37.0 149.3 55.1 41.1
Capital expenditures for <12 mo payback net new sales (24.4) (44.1) (14.5) (39.4) (122.7) (45.4) (17.8) (50.6) (25.9) (139.7) (36.8) (29.8)
Capital expenditures for network capacity (15.7) (17.4) (20.0) (23.8) (76.9) (20.6) (33.7) (42.7) (21.5) (118.5) (22.8) (41.6)
Net AFFO $69.9 $71.2 $85.7 $69.8 $296.2 $63.0 $85.0 $107.5 $116.2 $371.7 $127.0 $98.3
Fiscal Year
2016
Fiscal Year
2014
Fiscal Year
2015