For quite some time now Cogent has been regularly boosting the cash it’s giving back to shareholders via its dividend, and it finished 2014 with that trend intact. Revenue and earnings per share were up sequentially, but perhaps not by as much as the market was hoping. Here are their numbers in some context:
| $ in millions | Q4/12 | Q1/13 | Q2/13 | Q3/13 | Q4/13 |
|---|---|---|---|---|---|
| – On-net | 60.4 | 61.7 | 62.7 | 64.5 | 66.0 |
| – Off-net | 21.6 | 22.3 | 22.6 | 22.8 | 23.4 |
| – Other | 0.6 | 0.6 | 0.5 | 0.4 | 0.4 |
| Revenue | 82.6 | 84.6 | 85.8 | 87.8 | 89.9 |
| EBITDA | 28.5 | 28.3 | 29.6 | 30.7 | 31.5 |
| Earnings per share | -0.01 | 0.01 | 0.03 | 0.05 | 1.10 |
| Gross Margin | 54.6% | 56.1% | 56.9% | 57.5% | 57.4% |
| Adj. EBITDA Margin | 34.6% | 33.5% | 34.5% | 35.0% | 35.0% |
| On-net Buildings | 1867 | 1890 | 1921 | 1955 | 1990 |
Cogent has remained very quiet on the PR front, simply executing on its plan to grow while returning cash to shareholders. Earnings per share saw a big one-time benefit from an a tax-related item, else they would have been $0.05 per share, a penny below analyst expectations. Without it Margins held very steady during the quarter, as did the rate of addition of new buildings to the company’s network. But headcount was up sharply again hitting 706, I’ll have to listen to the call to see what they’re up to there.
The regularly quarterly dividend went up another penny to $0.16 per common share, and they threw in another $0.23 per share under the company’s return of capital program for a total of $0.39 per share.
Cogent has eschewed M&A for many years now, believing the multiples being paid for network assets are simply too high. One can’t help but wonder if that means they’d take an offer at those lofty valuations, but there has been no chatter on that front either that I have heard.
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Did this free loading, slow growth gnat-relative to its small revenue base–desperately trying to be bought in the telecom/internet space near term, finish “2014” before its time, and the time of all other players?
Oops!, I said I wouldn’t return to these anonymous know it alls and wise guys, until LVLT hit $40 pps. I called it not that long ago–even before Donna, The Mouse Lady–for this board’s guru to check the records on being right vs. wrong, with the only thing that matters involved in “speculating/investing” includes the time in between.
I have raised my LVLT target price to $50 most recently, since $40 is a fait accompli, and this remains another “SHORT TERM PREDICTION,” i.e. months not years.
Let the fools on this poorly managed discussion board carry on!
Back like a cicada…
Pls respond to Carlk
CarlK is like Herpes Simplex I — you can’t get rid of it and it’s unpleasant but you chalk it up to the cost of living.
CarlK escaped from the yahoo funny farm again.Put a straight jacket on this loony tune. He needs his meds and a muzzle.
You all seemed a little too obsessed with this Carlk person I must say. But, in other news…how about that LVLT share price huh? huh? Your welcome!
CarlK needs an Ethernet cable pluged into his mouth/end and the other end pluged into his rear end. This would upload all his loads of crap to his at&t data center. PU
Oh my, if Cogent was ever a growth company–it wasn’t except to Enron and his minion on this board–it isn’t any more as a result of Netflix cutting out Cogent in favor of Comcast’s new epiphany.
Say goodbye to those dividends which were only buying time until their ultimate demise.
In the mean time, the “End to End” Network Partner everyone around the globe relies upon for internet services that are all shapes and colors, reached another 52 Week High today, and $40 will be taken out in a blink of an eye real soon.
You heard it here first, in advance of it happening, and I will tell you one more thing.
I have now RAISED my 2014 year end LVLT target to $60 PPS. Upload that to your AT&T data center “End to End it All,” you silly SOB!
Lions and Tigers and Bears, Oh My! Dave Schaeffer may have to go back to taxi cab driving. IMO
Breaking News: Dave Schaeffer was seen in D.C. frantically hailing a taxi cab and hoping to go back to his roots with Louie The Tax Cab Driver, while getting out of DODGE! In the mean time, I warned Enron_Blow Hard_ Hubbard about this gnat exploding in due time. LOL, you SOB’s!
Please just go away. No one cares about your scorekeeping.
CarlK’s rear end ethernet cable must have become unplugged from his at&t head end data center again. Somebody please call the funny farm to return him to his motherboard.
CarlK has come unglued again with his bla bla rants:http://www.investorvillage.com/smbd.asp?mb=444&mn=123756&pt=msg&mid=13616353
He needs his rear end to head end plugged in again to COGENT’S data center.