お知らせ • May 12

Cyxtera Technologies Receives Notice from Nasdaq Regarding Failure to Maintain Minimum Bid Price

On May 5, 2023, Cyxtera Technologies, Inc. received a notice (the ‘Notice’) from the Listing Qualifications Department (the ‘Staff’) of The Nasdaq Stock Market LLC (‘Nasdaq’) stating that the company has failed to maintain a minimum bid price of at least $1.00 per share for the prior 30 consecutive trading day period from March 22, 2023 to May 4, 2023, based upon the closing bid price for its Class A common stock, as required by Nasdaq Listing Rule 5450(a)(2) (the ‘Bid Price Requirement’). The Notice has no immediate effect on the listing or trading of the Company’s Class A common stock on the Nasdaq Global Select Market, and the Company’s Class A common stock will continue to trade under the symbol ‘CYXT.’ In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial period of 180 calendar days, or until November 1, 2023 (the ‘Compliance Date’), to regain compliance with the Bid Price Requirement. If, at any time before the Compliance Date, the bid price for the Company’s Class A common stock closes at $1.00 or more for a minimum of 10 consecutive business days, the Staff will provide written notification to the Company that it has regained compliance with the Bid Price Requirement, unless the Staff exercises its discretion to extend this 10-day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H). If the Company is not in compliance with the Bid Price Requirement by the Compliance Date, the Company may qualify for a second 180 calendar day compliance period if it applies to transfer the listing of CYXT to the Nasdaq Capital Market. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the Bid Price Requirement. In addition, the Company would be required to provide written notice to Nasdaq of its intent to cure the minimum bid price deficiency during this second compliance period by effecting a reverse stock split if necessary. If the Company does not qualify for or fails to regain compliance during the second compliance period, then the Staff will provide written notification to the Company that its Class A common stock will be subject to delisting. At that time, the Company may appeal the Staff’s delisting determination to a Nasdaq hearings panel. However, there can be no assurance that, if the Company receives a delisting notice and appeals the delisting determination, such an appeal would be successful. There can be no assurance that the Company will regain compliance with the Bid Price Requirement during the 180-day compliance period, secure a second period of 180 days to regain compliance or maintain compliance with the other Nasdaq listing requirements.

Seeking Alpha • Aug 18

Cyxtera Technologies: Unsustainable Business Model

Low margins and utilization prevent CYXT from generating sustaining levels of cash flow from operations as evidenced by an aggregate negative free cash flow of ($160M) since 2019. Severe cash shortages are driven by both persistent under-utilization of assets and excess leverage. Interest expense consumes over 80% of cash flow. With only $40M in cash left, the company filed for a $300M offering along with 130M secondary shares of management, insiders and PIPE investors. Cyxtera (CYXT) came public via a SPAC in the summer of 2021. The company is a sub-scale operator of data centers leased from facility owners. The leasing strategy, high-cost retail model, low space utilization as evidenced by 14 of 23 center with below 70% utilization, and excess leverage drive bottom of the industry cash generation. We believe that financial performance is unlikely to improve going forward. Continued negative leasing dynamics and an ill-considered financial strategy exposing the company to cost inflation and rising rates will likely pressure margins further going forward. The company reported negative financial results for 2Q22 on August 11th. Financial underperformance left the company with only $40M in cash after burning $30M in the quarter. Management lowered guidance for 2H22 modestly in expectation of cost increases. In testimony to the precariously low cash balances, the company filed an S-3 shelf registration for $300M in new securities and the sale of 130M of shares owned by insiders and the SPAC’s PIPE investors. We believe that the offering will be the catalyst that begins to send the stock toward fair value of $2-3. Key issues include: Cannot generate cash from operations to cover necessary CapEx - Low capacity utilization and poor service offering results in sub-par cash flow from operations; coupled with high CapEx requirements drives the company’s large cash burn. In 2021, the company generated only $25.8M in CFO and negative free cash flow of ($51.7M). We believe that further low quality offerings will likely pressure utilization and cash flows going forward. Crippling levels of leverage – The company’s excessive debt load creates an interest expense that consumes an average of 80-85% of all cash generated by the business. Leverage makes CYXT’s financial model unsustainable, in our view. One of the company’s revolvers was not renewed, the other revolver is due in 11/23 and $868M of debt is due in 2024. Insiders are selling – The S-3 also includes 130M shares of recently unlocked shares owned by insiders, the SPAC sponsor, and PIPE investors. The float will increase roughly 4x from ~48M shares to 178M plus whatever is sold in the offering. High comparative valuation – Despite being the weakest public data center operator, CYXT currently trades at an EV/Adjuste868d EBITDA of 30x compared to 25x for peers, which convert ~80% of EBITDA to cash flow compared to 4% for CYXT. A discounted multiple indicates the stock is worth $2-3 or 70-80% below current levels. CYXT’s collection of poor, leased retail data center assets makes for a low margin business in the best case. We believe that excess leverage makes the company’s model unsustainable. I. An Unsustainable Business Model We believe the company’s business model is fundamentally flawed. As a provider of retail colocation space, labor and engineering are significant costs. Leasing the facilities fixes the costs and subjects the firm to potential rent increases, but persistently low utilization results in sub-par revenue and low margins. The company’s flawed business model results in very weak cash flow relative to the other players in the data storage space, as indicated in the table below. Company filings and estimates. CYXT is the weakest financial performer of the group. Low utilization leads to poor EBITDA. (Note that Adjusted EBITDA is constructed to provide comparable metrics. For CYXT we exclude stock-based compensation and changed from warrant liability. For DLR and EQIX, we exclude stock-based compensation, gains on sale and losses on debt extinguishment.) Cash flow from operations in 2021of $25.8M equates to only 4% of revenues, compared with ~40% for the peer group. Weak cash generation is a long-standing problem. Between 2019 and 2Q22, the company generated only a total of $162.7M in cash from operations and accumulated aggregate negative free cash flow of ($160.1M). The company has pursued what we view as short-term financing fixes. In 1Q22, the company completed a sales leaseback that generated $10M. The company factors receivables for short-term financing. During 2021, factoring resulted in net proceeds of $99.5M net of fees. Factoring reduces receivables and increases cash flow from operations. In 1H22, the company factored $11M of receivables. The factoring likely creates a maximum 30-day financing, given the company’s monthly billing cycle. The discount paid implies a 1.8% cost, which is annualized to ~24%. In our view, 24% interest rate for such short-term financing is indicative of severe cash shortages. We believe the sub-par cash flow evident in 2021 is unlikely to change going forward. In 1H22, the company generated only $11.7M in cash flow from operations. Including $62M of CapEx, free cash flow was ($50.6M) for the period. Management lowered guidance modestly for 2H22, reflecting higher expected costs. We estimate that the company will burn an additional $50M in the period taking full-year cash burn to ~($100M). Management strategy may exacerbate the margin problem going forward. Unlike most peers, CYXT does not hedge the cost of power. The company rents mostly on an ‘all in’ basis, including power. Although the company can pass along 90% of power cost increases, they absorb 10% and collect the remainder with a lag. Additionally, all outstanding financial debt is floating rate, exposing the company to rising rates, which will eat-away at the already razor thin cash margin. Cost inflation has already had an impact. For 1H22, the cost of utilities was up $11.5M, increasing cost of revenues 6% for the period. Management expects power cost inflation to accelerate in 2H22. The company’s debt is LIBOR based, which has increased to 2.92% from 0.12% a year ago. The debt reset should raise the cost of interest making the cash flow margin yet smaller. II. Persistently Low Capacity Utilization Since purchasing the business in 2017, CYXT has not been able to consistently increase utilization. Between 4Q19, the first period for which we have data, and 1Q22, total occupancy only increased to 70% from 67%. Occupancy as of 2Q22 was 73.33%. We consider the unusually high net-add during the quarter an anomaly; occupancy statistics available in the quarterly supplemental suggest it was driven primarily by a significant sale in a large market. Going forward, we believe the leasing dynamics will be negative, pressuring occupancy. Four factors drive the negative dynamics. 1. Built-in occupancy headwinds - Lumen Technologies (LUMN), formerly CenturyLink from which CYXT was spun off, was 10% of revenues in 2021. Lumen’s contract ends in April 2025 and has staggered disconnects until then creating leasing headwinds. 2. We believe the company offers a low-quality service. This is evidenced by the fact that the company has not been successful leasing space in high-demand markets with low vacancy. As an example, in 1Q20, CYXT opened in Amsterdam with 12,338 square feet. After renting only 1,029 square feet as of 4Q21, the company increased space to 23,655 square feet. According to Cushman and Wakefield, Amsterdam is one of the world’s 10 largest data center markets with total vacancy less than 10%, yet according to company filings, CYXT has only rented 1,169 square feet in 2½ years for a 95% vacancy rate. CYXT’s inability to rent space in a high demand market suggests the product does not meet customer standards. Current and former employees writing on Glassdoor support the low-quality thesis with posts stating that CYXT’s maintenance and customer service has eroded substantially since the company was purchased by the private equity owners. 3. Increasing competition in key markets. 51% of CYXT’s rented space is in five markets that have significant amounts of data center space under construction, according to Cushman and Wakefield. According to company occupancy statistics, in 3 of 5 markets, the company has had very limited success growing occupancy between 4Q19 and 2Q22 despite high demand and low vacancy. We believe that as new space comes online in these highly competitive markets, the company will be vulnerable to customer losses. 4. The struggle in lackluster markets will intensify – Top-10 markets accounted for 98% of all rental space gains between 4Q19 and 2Q22. CYXT’s remaining 14 markets contributed only 2%. 7 of the 14 markets have lower occupancy now than in 4Q19. This excludes the two most underperforming markets that were shuttered, and are not included in the 14. 3 of the 7 with occupancy increases over the period are near capacity, severely limiting further upside in the markets. This leaves a mere 4 out of 14 markets with a clear path to stronger occupancy. The overall dynamics in markets outside the top-10 indicate pressure on occupancy will increase going forward. Granular analysis of occupancy trends suggests that CYXT’s protracted efforts to reposition company assets and build occupancy are far from over. We believe a mix of low quality product, increasing competition in strong markets and presence in many lackluster markets means the balance of pressure on occupancy is to the downside. III. Over-levered and Needs to Raise Capital CYXT has a total of $2B in debt, consisting of $1.1B in capital leases and $888M of financial debt. The company had a $20M revolving credit line due May 2022 that was not renewed. To repay the facility, the company drew down $20M from a new revolving line due November 2023. $868M in first lien facilities mature in 2024. All facilities are LIBOR plus a margin of 3-4%. As of 2Q22, the rate on $775M was 4% and $95M 5%. The 3-month LIBOR has increased to 2.9% from 0.12% a year ago. We estimate the interest expense on the credit facilities can increase by $16.5M to ~$53M upon reset. Put in context, a $16.5M increase in interest expense amounts to 64% of all cash flow from operations generated in 2021. CYXT is the most highly-levered company in the group as shown in the table below.

インタレスト・カバレッジ・レシオ	n/a
現金	US$61.90m
エクイティ	US$64.30m
負債合計	US$2.71b
総資産	US$2.77b

データ	最終更新日（UTC時間）
企業分析	2024/01/16 14:23
終値	2024/01/16 00:00
収益	2023/03/31
年間収益	2022/12/31

パッケージ	データ	タイムフレーム	米国ソース例
会社財務	10年	損益計算書キャッシュ・フロー計算書貸借対照表	SECフォーム10-K SECフォーム10-Q
アナリストのコンセンサス予想	+プラス3年	予想財務アナリストの目標株価	アナリストリサーチレポート Blue Matrix
市場価格	30年	株価配当、分割、措置	ICEマーケットデータ SECフォームS-1
所有権	10年	トップ株主インサイダー取引	SECフォーム4 SECフォーム13D
マネジメント	10年	リーダーシップ・チーム取締役会	SECフォーム10-K SECフォームDEF 14A
主な進展	10年	会社からのお知らせ	SECフォーム8-K

アナリスト	機関
Nathan Crossett	BNP Paribas
Frank Louthan	Raymond James & Associates
Jonathan Atkin	RBC Capital Markets

This company listing is no longer active

Cyxtera Technologies バランスシートの健全性

財務の健全性 基準チェック /06

主要情報

財務の健全性に関する最新情報

Cyxtera Technologies Files Form 15

Second Amended Reorganization Plan & Disclosure Statement Filed by Cyxtera Technologies, Inc.

Nasdaq to Delist the Class A Common Stock of Cyxtera Technologies

Nasdaq Determines to Delist Cyxtera Technologies's Class A Common Stock as Result of the Chapter 11 Cases

Motion for Joint Administration Filed by Cyxtera Technologies, Inc.

Cyxtera Technologies Receives Notice from Nasdaq Regarding Failure to Maintain Minimum Bid Price

Recent updates

Cyxtera Technologies Files Form 15

Cologix, Inc. entered into an agreement to acquire Montreal and Vancouver data centers business from Cyxtera Technologies, Inc. (OTCPK:CYXT.Q).

Cyxtera Launches AI + Quantum Center of Excellence to Empower Customers to Explore New Technologies

Second Amended Reorganization Plan & Disclosure Statement Filed by Cyxtera Technologies, Inc.

Nasdaq to Delist the Class A Common Stock of Cyxtera Technologies

Cyxtera Technologies, Inc.(OTCPK:CYXT.Q) dropped from NASDAQ Composite Index

New major risk - Market cap size

Nasdaq Determines to Delist Cyxtera Technologies's Class A Common Stock as Result of the Chapter 11 Cases

Cyxtera Technologies, Inc.(NasdaqGS:CYXT) dropped from S&P TMI Index

Motion for Joint Administration Filed by Cyxtera Technologies, Inc.

Cyxtera Technologies, Inc. Elects Scott Vogel to Serve as A Member of the Board

Cyxtera Technologies Receives Notice from Nasdaq Regarding Failure to Maintain Minimum Bid Price

Cyxtera Technologies Inc. may file for bankruptcy.

Price target decreased by 8.6% to US$4.57

Full year 2022 earnings: EPS misses analyst expectations

Price target decreased by 17% to US$5.00

At US$3.25, Is Cyxtera Technologies, Inc. (NASDAQ:CYXT) Worth Looking At Closely?

Cyxtera Technologies, Inc. Announces Board Changes

Price target decreased to US$8.86

High number of new and inexperienced directors

Third quarter 2022 earnings: EPS misses analyst expectations

Cyxtera Technologies, Inc. Affirms Earning Guidance for the Year 2022

Cyxtera Technologies, Inc. to Report Q3, 2022 Results on Nov 08, 2022

Price target decreased to US$12.00

Price target decreased to US$13.00

Price target decreased to US$13.71

Cyxtera Technologies, Inc.'s (NASDAQ:CYXT) Intrinsic Value Is Potentially 37% Above Its Share Price

Now 27% undervalued after recent price drop

Now 25% undervalued after recent price drop

Cyxtera Technologies: Unsustainable Business Model

Cyxtera Technologies, Inc. (NASDAQ:CYXT) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Second quarter 2022 earnings: EPS misses analyst expectations

Cyxtera Technologies, Inc. Reaffirms Its Full-Year 2022 Guidance for Revenue

Cyxtera GAAP EPS of -$0.27 misses by $0.06, revenue of $184.7M misses by $0.3M

Cyxtera Technologies, Inc. to Report Q2, 2022 Results on Aug 11, 2022

Is Cyxtera Technologies, Inc. (NASDAQ:CYXT) Worth US$12.6 Based On Its Intrinsic Value?

Price target increased to US$15.00

Consensus forecasts updated

First quarter 2022 earnings: EPS misses analyst expectations

Cyxtera Technologies, Inc. Provides Revenue Guidance for the Full Year 2022

High number of new and inexperienced directors

Cyxtera Launches Its Native Cyxtera Cloud Connect Offering

Cyxtera Technologies, Inc., Annual General Meeting, Jun 08, 2022

Cyxtera Technologies: Compelling Value With Secular Tailwinds

A Look At The Intrinsic Value Of Cyxtera Technologies, Inc. (NASDAQ:CYXT)

Cyxtera Technologies, Inc. Offers OEMs and Technology Service Providers Plug-And-Play Capability to Delivering As-A-Service Solutions

Price target increased to US$13.00

Third quarter 2021 earnings released: US$0.32 loss per share

Cyxtera Expands its Digital Exchange with Smart Cabinets, Offering On-Demand Colocation Infrastructure with Native Access to a Configurable Network Fabric

Lead Independent Director recently bought US$785k worth of stock

Director Raymond Svider has joined 5th company board

Director Raymond Svider has joined 5th company board

財務状況分析

デット・ツー・エクイティの歴史と分析

貸借対照表

キャッシュ・ランウェイ分析

健全な企業の発掘

企業分析と財務データの現状

データソース

分析モデルとスノーフレーク

業界およびセクターの指標

アナリスト筋

財務の健全性基準チェック /06