EX-99.2 3 tm2117430d1_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

CYXTERA TECHNOLOGIES, INC. 

Unaudited Condensed Consolidated Financial Statements

As of March 31, 2021 and December 31, 2020 and for the

Three Months Ended March 31, 2021 and 2020

 

 

 

 

 

CYXTERA TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Balance Sheets

(in millions, except share information)

 

   March 31,   December 31, 
   2021   2020 
Assets:          
Current assets:          
Cash  $113.6   $120.7 
Accounts receivable, net of allowance of $1.2 and $1.4   12.6    33.5 
Prepaid and other current assets   38.9    41.9 
Due from affiliates   -    117.1 
Total current assets   165.1    313.2 
           
Property, plant and equipment, net   1,554.0    1,580.7 
Goodwill   763.0    762.2 
Intangible assets, net   569.7    586.3 
Other assets   24.0    23.7 
Total assets  $3,075.8   $3,266.1 
           
Liabilities and shareholder's equity:          
Current liabilities:          
Accounts payable  $48.2   $48.9 
Accrued expenses   91.0    88.4 
Due to affiliates   -    22.7 
Current portion of long-term debt, capital leases and other financing obligations   58.1    65.0 
Deferred revenue   59.9    60.2 
Other current liabilities   7.0    6.8 
Total current liabilities   264.2    292.0 
           
Long-term debt, net of current portion   1,310.4    1,311.5 
Capital leases and other financing obligations, net of current portion   927.3    933.1 
Deferred income taxes   64.9    77.8 
Other liabilities   99.6    93.9 
Total liabilities   2,666.4    2,708.3 
           
Commitments and contingencies          
           
Shareholder's equity:          
Common shares, $0.01 par value; 1,000 shares authorized; 0.88 of a share and 0.96 of a share issued and outstanding as of March 31, 2021 and          
December 31, 2020, respectively   -    - 
Additional paid-in capital   1,408.6    1,504.6 
Accumulated other comprehensive income   16.9    16.7 
Accumulated deficit   (1,016.1)   (963.5)
Total shareholder's equity   409.4    557.8 
Total liabilities and shareholder's equity  $3,075.8   $3,266.1 

 

2

 

 

 

CYXTERA TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Statements of Operations

(in millions)

 

   Three Months Ended March 31, 
   2021   2020 
Revenues  $172.9   $172.5 
Operating costs and expenses:          
Cost of revenues, excluding depreciation and amortization   98.4    95.9 
Selling, general and administrative expenses   27.6    31.1 
Depreciation and amortization   60.6    57.0 
Restructuring, impairment, site closures and related costs   8.1    - 
Impairment of notes receivable and other amounts due from affiliate   -    6.7 
Total operating costs and expenses   194.7    190.7 
           
Loss from operations   (21.8)   (18.2)
Interest expense, net   (43.2)   (43.3)
Other expenses, net   (0.5)   (0.3)
Loss from operations before income taxes   (65.5)   (61.8)
Income tax benefit   12.9    14.4 
Net loss  $(52.6)  $(47.4)

 

3 

 

 

CYXTERA TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(in millions)

 

 

   Three Months Ended March 31, 
   2021   2020 
Net loss  $(52.6)  $(47.4)
           
Other comprehensive income (loss):          
Foreign currency translation adjustment   0.2    (17.4)
Other comprehensive income (loss)   0.2    (17.4)
           
Comprehensive loss  $(52.4)  $(64.8)

 

4 

 

 

CYXTERA TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Statements of Changes in Shareholder’s Equity

(in millions, except share information)

 

               Accumulated         
           Additional   other       Total 
   Common shares   paid-in   comprehensive   Accumulated   shareholder's 
   Share   Amount   capital   income (loss)   deficit   equity 
Balance as of December 31, 2020   0.96   $0.01   $1,504.6   $16.7   $(963.5)  $557.8 
Equity-based compensation   -    -    1.9    -    -    1.9 
Capital redemption   (0.08)   -    (97.9)   -    -    (97.9)
Net loss   -    -    -    -    (52.6)   (52.6)
Other comprehensive income   -    -    -    0.2    -    0.2 
Balance as of March 31, 2021   0.88   $0.01   $1,408.6   $16.9   $(1,016.1)  $409.4 
                               
Balance as of December 31, 2019   0.96   $0.01   $1,494.9   $8.0   $(840.7)  $662.2 
Equity-based compensation   -    -    2.2    -    -    2.2 
Net loss   -    -    -    -    (47.4)   (47.4)
Other comprehensive income   -    -    -    (17.4)   -    (17.4)
Balance as of March 31, 2020   0.96   $0.01   $1,497.1   $(9.4)  $(888.1)  $599.6 

 

5 

 

 

 

CYXTERA TECHNOLOGIES, INC.

Unaudited Condensed Consolidated Statements of Cash Flows
(in millions)

 

   Three Months Ended March 31, 
   2021   2020 
Net loss  $(52.6)  $(47.4)
Cash flows from operating activities:          
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Depreciation and amortization   60.6    57.0 
Restructuring, impairment, site closures and related costs   2.0    - 
Amortization of favorable/unfavorable leasehold interests, net   1.1    0.8 
Amortization of debt issuance costs and fees, net   1.4    1.4 
Impairment of notes receivable and other amounts due from affiliate   -    6.7 
Equity-based compensation   1.9    2.2 
Bad debt expense (recoveries), net   (0.2)   0.6 
Deferred income taxes   (12.9)   (14.4)
Non-cash interest expense, net   2.4    4.6 
Changes in operating assets and liabilities, excluding impact of acquisitions and dispositions:          
Accounts receivable   21.0    (19.4)
Prepaid and other current assets   2.8    2.3
Due from affiliates   -    1.2 
Other assets   (0.5)   2.3 
Accounts payable   (3.1)   0.7 
Accrued expenses   2.6    (2.6)
Due to affiliates   (22.7)   - 
Other liabilities   4.3    3.2 
Net cash provided by (used in) operating activities   8.1    (0.8)
Cash flows from investing activities:          
Purchases of property, plant and equipment   (13.7)   (37.9)
Amounts received from (advanced to) affiliate   117.1    (5.3)
Net cash provided by (used in) investing activities   103.4    (43.2)
Cash flows from financing activities:          
Proceeds from issuance of long-term debt and other financing obligations   -    91.0 
Repayment of long-term debt   (2.3)   - 
Repayment of capital leases and other financing obligations   (17.1)   (2.2)
Capital redemption   (97.9)   - 
Net cash (used in) provided by financing activities   (117.3)   88.8 
Effect of foreign currency exchange rates on cash   (1.3)   (3.6)
Net (decrease) increase in cash   (7.1)   41.2 
Cash at beginning of period   120.7    13.0 
Cash at end of period  $113.6   $54.2 
           
Supplemental cash flow information:          
Cash paid for income taxes, net of refunds  $0.3   $0.4 
Cash paid for interest  $25.6   $24.7 
Non-cash purchases of property, plant and equipment  $9.7   $29.7 

 

6 

 

 

CYXTERA TECHNOLOGIES, INC.

SUPPLEMENTARY INFORMATION

 

The following supplemental consolidating information of Cyxtera DC Holdings, Inc. and its subsidiaries (“DC Holdings”), and all other subsidiaries of the Company, including its parent Cyxtera Technologies, Inc. (“Other”) as of March 31, 2021 and December 31, 2020, and the results of its operations, comprehensive income, changes in shareholder’s equity and other comprehensive income (loss), and cash flows for the three months ended March 31, 2021 and 2020. DC Holdings is a wholly owned subsidiary of the Company.

 

7 

 

 

CYXTERA TECHNOLOGIES, INC.

SUPPLEMENTARY INFORMATION

Schedule 1 – Unaudited Condensed Consolidating Balance Sheet Information (in millions)

 

   As of March 31, 2021 
   DC Holdings   Other   Total 
Assets:               
Current assets:               
Cash  $110.4   $3.2   $113.6 
Accounts receivable, net of allowance   12.4    0.2    12.6 
Prepaid and other current assets   34.3    4.6    38.9 
Due from affiliates   66.0    (66.0)   - 
Total current assets   223.1    (58.0)   165.1 
                
Property, plant and equipment, net   1,546.2    7.8    1,554.0 
Goodwill   763.0    -    763.0 
Intangible assets, net   569.7    -    569.7 
Other assets   18.5    5.5    24.0 
Total assets  $3,120.5   $(44.7)  $3,075.8 
                
Liabilities and shareholder's equity:               
Current liabilities:               
Accounts payable  $44.2   $4.0   $48.2 
Accrued expenses   71.1    19.9    91.0 
Current portion of long-term debt, capital leases and other financing obligations   57.0    1.1    58.1 
Deferred revenue   59.6    0.3    59.9 
Other current liabilities   6.6    0.4    7.0 
Total current liabilities   238.5    25.7    264.2 
                
Long-term debt, net of current portion   1,310.4    -    1,310.4 
Capital leases and other financing obligations, net of current portion   927.3    -    927.3 
Deferred income taxes   64.6    0.3    64.9 
Other liabilities   94.9    4.7    99.6 
Total liabilities   2,635.7    30.7    2,666.4 
                
Shareholder's equity:               
Common shares   -    -    - 
Additional paid-in capital   1,053.2    355.4    1,408.6 
Accumulated other comprehensive income (loss)   17.5    (0.6)   16.9 
Accumulated deficit   (585.9)   (430.2)   (1,016.1)
Total shareholder's equity   484.8    (75.4)   409.4 
Total liabilities and shareholder's equity  $3,120.5   $(44.7)  $3,075.8 

 

8

 

 

CYXTERA TECHNOLOGIES, INC.

SUPPLEMENTARY INFORMATION

Schedule 1 – Unaudited Condensed Consolidating Balance Sheet Information (in millions, continued)

 

   As of December 31, 2020 
   DC Holdings   Other   Eliminations   Total 
Assets:                    
Current assets:                    
Cash  $120.3   $0.4   $-   $120.7 
Accounts receivable, net of allowance   29.3    4.2    -    33.5 
Prepaid and other current assets   36.6    5.3    -    41.9 
Total current assets   259.5    127.0    (73.3)   313.2 
                     
Property, plant and equipment, net   1,570.1    10.6    -    1,580.7 
Goodwill   762.2    -    -    762.2 
Intangible assets, net   586.3    -    -    586.3 
Other assets   21.4    2.3    -    23.7 
Total assets  $3,199.5   $139.9   $(73.3)  $3,266.1 
                     
Liabilities and shareholder's equity:                    
Current liabilities:                    
Accounts payable  $46.0   $2.9   $-   $48.9 
Accrued expenses   73.0    15.4    -    88.4 
Due to affiliates   -    96.0    (73.3)   22.7 
Current portion of long-term debt, capital leases and other financing obligations   62.5    2.5    -    65.0 
Deferred revenue   60.2    -    -    60.2 
Other current liabilities   6.8    -    -    6.8 
Total current liabilities   248.5    116.8    (73.3)   292.0 
                     
Long-term debt, net of current portion   1,311.5    -    -    1,311.5 
Capital leases and other financing obligations, net of current portion   933.1    -    -    933.1 
Deferred income taxes   77.1    0.7    -    77.8 
Other liabilities   93.9    -    -    93.9 
Total liabilities   2,664.1    117.5    (73.3)   2,708.3 
                     
Shareholder's equity:                    
Common shares   -    -    -    - 
Additional paid-in capital   1,052.8    451.8    -    1,504.6 
Accumulated other comprehensive income (loss)   17.3    (0.6)   -    16.7 
Accumulated deficit   (534.7)   (428.8)   -    (963.5)
Total shareholder's equity   535.4    22.4    -    557.8 
Total liabilities and shareholder's equity  $3,199.5   $139.9   $(73.3)  $3,266.1 

 

9

 

 

 

CYXTERA TECHNOLOGIES, INC.

SUPPLEMENTARY INFORMATION

Schedule 2 – Unaudited Condensed Consolidating Statements of Operations Information (in millions)

 

   Three Months Ended March 31, 2021 
   DC Holdings   Other   Total 
Revenues  $167.9   $5.0   $172.9 
Operating costs and expenses:               
Cost of revenues, excluding depreciation and amortization   95.7    2.7    98.4 
Selling, general and administrative expenses   25.9    1.7    27.6 
Depreciation and amortization   58.8    1.8    60.6 
Restructuring, impairment, site closures and related costs   8.1    -    8.1 
Total operating costs and expenses   188.5    6.2    194.7 
                
(Loss) Income from operations   (20.6)   (1.2)   (21.8)
Interest expense, net   (42.8)   (0.4)   (43.2)
Other expenses, net   (0.4)   (0.1)   (0.5)
(Loss) Income from operations before income taxes   (63.8)   (1.7)   (65.5)
Income tax benefit (expense)   12.6    0.3    12.9 
Net (loss) income  $(51.2)  $(1.4)  $(52.6)

 

   Three Months Ended March 31, 2020 
   DC Holdings   Other   Total 
Revenues  $172.5   $-   $172.5 
Operating costs and expenses:               
Cost of revenues, excluding depreciation and amortization   95.9    -    95.9 
Selling, general and administrative expenses   30.6    0.5    31.1 
Depreciation and amortization   57.0    -    57.0 
Impairment (recovery) of notes receivable and other amounts due from affiliate   7.7    (1.0)   6.7 
Total operating costs and expenses   191.2    (0.5)   190.7 
                
(Loss) Income from operations   (18.7)   0.5    (18.2)
Interest expense, net   (43.3)   -    (43.3)
Other expenses, net   (0.2)   (0.1)   (0.3)
(Loss) Income from operations before income taxes   (62.2)   0.4    (61.8)
Income tax benefit (expense)   14.7    (0.3)   14.4 
Net (loss) income  $(47.5)  $0.1   $(47.4)

 

10 

 

 

CYXTERA TECHNOLOGIES, INC.

SUPPLEMENTARY INFORMATION

Schedule 3 – Unaudited Condensed Consolidating Statements of Comprehensive Income Information (in millions)

 

   Three Months Ended March 31, 2021 
   DC Holdings   Other   Total 
Net loss  $(51.2)  $(1.4)  $(52.6)
                
Other comprehensive loss:               
Foreign currency translation adjustment   0.2    -    0.2 
Other comprehensive loss   0.2    -    0.2 
                
Comprehensive loss  $(51.0)  $(1.4)  $(52.4)

 

  

Three Months Ended March 31, 2020

 
   DC Holdings   Other   Total 
Net (loss) income  $(47.5)  $0.1   $(47.4)
                
Other comprehensive loss:               
Foreign currency translation adjustment   (17.3)   (0.1)   (17.4)
Other comprehensive loss   (17.3)   (0.1)   (17.4)
                
Comprehensive (loss) income  $(64.8)  $-   $(64.8)

 

11 

 

 

 

CYXTERA TECHNOLOGIES, INC.

 SUPPLEMENTARY INFORMATION

 Schedule 4 – Unaudited Condensed Consolidating Statements of Shareholder’s Equity and Other Comprehensive
(Loss) Income Information (in millions)

 

               Accumulated         
           Additional   other       Total 
   Common shares   paid-in   comprehensive   Accumulated   shareholder's 
   Share   Amount   capital   (loss) income   deficit   equity 
DC Holdings                        
Balance as of December 31, 2020   1   $0.01   $1,052.8   $17.3   $(534.7)  $535.4 
Equity-based compensation, net   -    -    0.4    -    -    0.4 
Net loss   -    -    -    -    (51.2)   (51.2)
Other comprehensive loss   -    -    -    0.2    -    0.2 
Balance as of March 31, 2021   1   $0.01   $1,053.2   $17.5   $(585.9)  $484.8 
                               
Balance as of December 31, 2019   1.00   $0.01   $1,051.0   $8.5   $(385.2)  $674.3 
Equity-based compensation, net   -    -    0.4    -    -    0.4 
Net loss   -    -    -    -    (47.5)   (47.5)
Other comprehensive income   -    -    -    (17.3)   -    (17.3)
Balance as of March 31, 2020   1   $0.01   $1,051.4   $(8.8)  $(432.7)  $609.9 
                               
Other                              
Balance as of December 31, 2020   1   $0.01   $451.8   $(0.6)  $(428.8)  $22.4 
Equity-based compensation, net   -    -    1.5    -    -    1.5 
Capital redemption   (0.95)   -    (97.9)   -    -    (97.9)
Net loss   -    -    -    -    (1.4)   (1.4)
Other comprehensive loss   -    -    -    -    -    - 
Balance as of March 31, 2021   0.05   $0.01   $355.4   $(0.6)  $(430.2)  $(75.4)
                               
Balance as of December 31, 2019   1.00   $0.01   $1,051.0   $8.5   $(385.2)  $674.3 
Equity-based compensation, net   -    -    1.8    -    -    1.8 
Net loss   -    -    -    -    0.1    0.1 
Other comprehensive income   -    -    -    (0.1)   -    (0.1)
Balance as of March 31, 2020   1   $0.01   $1,052.8   $8.4   $(385.1)  $676.1 
                               
Total                              
Balance as of December 31, 2020   0.96   $0.01   $1,504.6   $16.7   $(963.5)  $557.8 
Equity-based compensation, net   -    -    1.9    -    -    1.9 
Capital redemption   (0.08)   -    (97.9)   -    -    (97.9)
Net loss   -    -    -    -    (52.6)   (52.6)
Other comprehensive loss   -    -    -    0.2    -    0.2 
Balance as of March 31, 2021   0.88   $0.01   $1,408.6   $16.9   $(1,016.1)  $409.4 
                               
Balance as of December 31, 2019   0.96   $0.01   $1,494.9   $8.0   $(840.7)  $662.2 
Equity-based compensation, net   -    -    2.2    -    -    2.2 
Net loss   -    -    -    -    (47.4)   (47.4)
Other comprehensive income   -    -    -    (17.4)   -    (17.4)
Balance as of March 31, 2020   0.96   $0.01   $1,497.1   $(9.4)  $(888.1)  $599.6 

 

12 

 

 

CYXTERA TECHNOLOGIES, INC. 

SUPPLEMENTARY INFORMATION

Schedule 5 – Unaudited Condensed Consolidating Statements of Cash Flows Information (in millions)

 

   Three Months Ended March 31, 2021 
   DC Holdings   Other   Total 
Net loss  $(51.2)  $(1.4)  $(52.6)
Cash flows from operating activities:               
Adjustments to reconcile net loss to net cash provided by (used in) operating               
activities:               
Depreciation and amortization   58.8    1.8    60.6 
Restructuring, impairment, site closures and related costs   2.0    -    2.0 
Amortization of favorable/unfavorable leasehold interests, net   1.1    -    1.1 
Amortization of debt issuance costs and fees, net   1.4    -    1.4 
Equity-based compensation, net   1.9    -    1.9 
Bad debt expense (recoveries), net   (0.2)   -    (0.2)
Deferred income taxes   (12.6)   (0.3)   (12.9)
Non-cash interest expense   2.4    -    2.4 
Changes in operating assets and liabilities:               
Accounts receivable   17.0    4.0    21.0 
Prepaid and other assets   2.2    0.6    2.8 
Due from affiliates   6.4    (6.4)   - 
Other assets   2.6    (3.1)   (0.5)
Accounts payable   (4.5)   1.4    (3.1)
Accrued expenses   (1.9)   4.5    2.6 
Due to affiliates   (1.5)   (21.2)   (22.7)
Other liabilities   (0.9)   5.2    4.3 
Net cash provided by (used in) continuing operating activities   23.0    (14.9)   8.1 
Cash flows from investing activities:               
Purchases of property, plant and equipment   (13.2)   (0.5)   (13.7)
Amounts received from affiliate   -    117.1    117.1 
Net cash (used in) provided by investing activities   (13.2)   116.6    103.4 
Cash flows from financing activities:               
(Repayment of) proceeds from Promissory Notes   -    -    - 
Repayment of long-term debt   (2.3)   -    (2.3)
Repayment of capital leases and other financing obligations   (15.8)   (1.3)   (17.1)
Capital redemption   -    (97.9)   (97.9)
Net cash (used in) provided by financing activities   (18.1)   (99.2)   (117.3)
Effect of foreign currency exchange rates on cash   (1.6)   0.3    (1.3)
Net decrease in cash and restricted cash   (9.9)   2.8    (7.1)
Cash at beginning of period   120.3    0.4    120.7 
Cash at end of period  $110.4   $3.2   $113.6 

 

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CYXTERA TECHNOLOGIES, INC.

SUPPLEMENTARY INFORMATION

Schedule 5 – Unaudited Condensed Consolidating Statements of Cash Flows Information (in millions, continued)

 

   Three Months Ended March 31, 2020 
   DC Holdings   Other   Eliminations   Total 
Net loss  $(47.5)  $0.1   $-   $(47.4)
Cash flows from operating activities:                    
Adjustments to reconcile net loss to net cash (used in) provided by operating                    
activities:                    
Depreciation and amortization   57.0    -    -    57.0 
Amortization of favorable/unfavorable leasehold interests, net   0.8    -    -    0.8 
Amortization of debt issuance costs and fees, net   1.4    -    -    1.4 
Impairment of (recovery of) note receivable from affiliate   7.7    (1.0)   -    6.7 
Equity-based compensation, net   0.4    1.8    -    2.2 
Bad debt expense (recoveries), net   0.6    -    -    0.6 
Deferred income taxes   (14.4)   -    -    (14.4)
Non-cash interest expense   4.6    -    -    4.6 
Changes in operating assets and liabilities:                    
Accounts receivable   (19.4)   -    -    (19.4)
Prepaid and other assets   1.2   1.1    -    2.3
Due from affiliates   -    1.2    -    1.2 
Other assets   2.2    0.1    -    2.3 
Accounts payable   1.8    (1.1)   -    0.7 
Accrued expenses   (1.2   (1.4)   -    (2.6
Due to affiliates   -    -    -    - 
Other liabilities   3.6    (0.4)   -    3.2 
Net cash (used in) provided by operating activities   (1.2)   0.4    -    (0.8)
Cash flows from investing activities:                    
Purchases of property, plant and equipment   (37.9)   -    -    (37.9)
(Advances to) amounts received from affiliate   (5.3)   (5.3)   5.3    (5.3)
Net cash (used in) provided by investing activities   (43.2)   (5.3)   5.3    (43.2)
Cash flows from financing activities:                    
Proceeds from issuance of long-term debt and other financing obligations   91.0    -    -    91.0 
Proceeds from (repayment of) Promissory Notes   -    5.3    (5.3)   - 
Repayment of capital leases and other financing obligations   (2.2)   -    -    (2.2)
Net cash provided by (used in) financing activities   88.8    5.3    (5.3)   88.8 
Effect of foreign currency exchange rates on cash   (3.2)   (0.4)   -    (3.6)
Net decrease in cash   41.2    -    -    41.2 
Cash at beginning of period   12.8    0.2    -    13.0 
Cash at end of period  $54.0   $0.2   $-   $54.2 

 

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