Cbeyond Reports Second Quarter 2013 Results

Cbeyond Reports Second Quarter 2013 Results

Board of Directors Approves $20 Million Share Repurchase Plan

ATLANTA, July 31, 2013 (GLOBE NEWSWIRE) -- Cbeyond, Inc. (Nasdaq:CBEY),
("Cbeyond"), the technology ally for small and mid-sized businesses, today
announced its results for the second quarter ended June 30, 2013.

Recent financial and operating highlights include:

  *Second quarter 2013 total revenue of $118.2 million compared with $123.8
    million in the second quarter of 2012 and $119.9 million in the first
    quarter of 2013;
    
  *Cbeyond 2.0 revenue was $16.1 million, or 13.6% of total revenue in the
    second quarter of 2013, an increase of 100% from the second quarter of
    2012 and an increase of 17% from the first quarter of 2013;
    
  *Average monthly revenue per customer (ARPU) of $662 during the second
    quarter of 2013 compared with $645 in the second quarter of 2012 and $656
    in the first quarter of 2013 (see selected quarterly operating metrics
    table for an ARPU definition);
    
  *Adjusted EBITDA of $21.9 million in the second quarter of 2013 compared
    with $27.2 million in the second quarter of 2012 and $20.8 million in the
    first quarter of 2013 (see reconciliation tables for reconciliation to net
    loss);
    
  *Free cash flow (defined as adjusted EBITDA less cash capital expenditures)
    of $7.1 million in the second quarter of 2013 compared with $12.5 million
    in the second quarter of 2012 and $8.4 million in the first quarter of
    2013;
    
  *Net loss of less than $0.1 million in the second quarter of 2013 compared
    with net income of $2.7 million in the second quarter of 2012 and a net
    loss of $0.6 million in the first quarter of 2013;
    
  *Revised annual guidance for 2013 of $464 million to $471 million of
    revenue, $76 million to $80 million of adjusted EBITDA, $56 million to $60
    million of cash capital expenditures, and $18 million to $22 million of
    free cash flow;
    
  *Board approves up to $20 million share repurchase plan expiring June 30,
    2015.

Financial Overview and Key Operating Metrics

Financial and operating metrics, which include non-GAAP financial measures,
for the three and six months ended June 30, 2013, include:

                                    For the Three Months Ended June 30,
                                    2012       2013       Change     % Change
Selected Financial Data (dollars in                                
thousands)
Revenue (total)                      $123,762 $118,215 $(5,547) (4.5%)
Operating expenses                   $118,119 $117,791 $(328)   (0.3%)
Operating income (loss)              $5,643   $424     $(5,219) (92.5%)
Net income (loss)                    $2,694   $(41)    $(2,735) (101.5%)
Capital expenditures (total)         $15,722  $20,065  $4,343   27.6%
                                                                  
Key Operating Metrics and Non-GAAP Financial Measures
(dollars in thousands, except Average Monthly Revenue Per Network Access
Customer)
Network Access Customers (At Period  62,015    57,013    (5,002)   (8.1%)
End)
Net Network Access Customer          (450)     (1,421)   (971)     (215.8%)
Additions
Average Monthly Churn Rate           1.5%       1.6%       0.1%       6.7%
Average Monthly Revenue Per Network  $645     $662     $17      2.6%
Access Customer
Adjusted EBITDA                      $27,236  $21,929  $(5,307) (19.5%)
Cash capital expenditures            $14,765  $14,780  $15      0.1%
                                                                  
                                                                  
                                    For the Six Months Ended June 30,
                                    2012       2013       Change     % Change
Selected Financial Data (dollars in                                
thousands)
Revenue (total)                      $247,605 $238,161 $(9,444) (3.8%)
Operating expenses                   $243,287 $237,955 $(5,332) (2.2%)
Operating income (loss)              $4,318   $206     $(4,112) (95.2%)
Net income (loss)                    $1,500   $(597)   $(2,097) (139.8%)
Capital expenditures (total)         $32,958  $35,516  $2,558   7.8%
                                                                  
Key Operating Metrics and Non-GAAP Financial Measures
(dollars in thousands, except Average Monthly Revenue Per Network Access
Customer)
Network Access Customers (At Period  62,015    57,013    (5,002)   (8.1%)
End)
Net Network Access Customer          (154)     (2,679)   (2,525)   N/M
Additions
Average Monthly Churn Rate           1.5%       1.6%       0.1%       6.7%
Average Monthly Revenue Per Network  $647     $660     $13      2.0%
Access Customer
Adjusted EBITDA                      $50,210  $42,762  $(7,448) (14.8%)
Cash capital expenditures            $29,601  $27,214  $(2,387) (8.1%)

Management Comments

"I am pleased with the progress we are making at transitioning our company
from a communications centric business to a cloud solutions provider for the
small and mid-sized business segment," said Jim Geiger, chief executive
officer of Cbeyond, Inc. "This quarter, our 2.0 revenue doubled from the
second quarter last year and our 2.0 metrics, such as ARPU and sales
productivity, are moving in the right direction."

Geiger added, "Our transformation is taking longer in some areas than
originally planned but the many positive signs we're seeing in the business
reinforce our conviction that we are on the right path strategically."

Geiger continued, "Because of these positive signs and our solid balance sheet
and free cash flow generation, our Board has approved a $20 million share
repurchase program supporting our goal of creating long-term shareholder
value."

Share Repurchase Plan

Cbeyond's board of directors authorized the repurchase of up to $20 million of
Cbeyond common shares expiring June 30, 2015. These repurchases, if any, will
be made on an opportunistic basis depending on prevailing market conditions,
liquidity requirements, contractual restrictions and other discretionary
factors. Repurchases will be made from time to time in open market purchases,
privately negotiated transactions or otherwise. Based on the closing stock
price as of Tuesday, July 30, 2013, the repurchase plan would equate to more
than 7% of total shares outstanding.

Second Quarter Financial and Business Summary

Revenue and ARPU

Cbeyond reported total revenue of $118.2 million for the second quarter of
2013, a decrease of 4.5% from the second quarter of 2012 and a decrease of
1.4% from the first quarter of 2013. Managed Hosting and Cloud revenue was
$7.4 million during the quarter, an increase of 20.9% year-over-year. ARPU was
$662 in the second quarter of 2013 compared with $645 in the second quarter of
2012 and $656 in the first quarter of 2013.

Cost of Service and Gross Margin

Cbeyond's gross margin was 66.6% in the second quarter of 2013, a decrease of
90 basis points from the 67.5% in the second quarter of 2012 and a 110 basis
point decrease from the 67.7% in the first quarter of 2013.

Adjusted EBITDA and Net Loss

Adjusted EBITDA for the second quarter of 2013 was $21.9 million compared with
adjusted EBITDA of $27.2 million in the second quarter of 2012 and $20.8
million in the first quarter of 2013.

Cbeyond reported a net loss of less than $0.1 million for the second quarter
of 2013 compared with net income of $2.7 million in the second quarter of 2012
and a net loss of $0.6 million in the first quarter of 2013.

Cash, Cash Equivalents, and Borrowings

Cash and cash equivalents amounted to $27.5 million at the end of the first
quarter of 2013 compared with $23.8 million at the end of the first quarter of
2013. The Company currently has $2.0 million outstanding on its fiber loan
while it does not have any outstanding borrowings under its $75.0 million
revolving credit facility. The Company also has $13.7 million in outstanding
capital lease obligations on its balance sheet as of June 30, 2013.

Capital Expenditures

Total capital expenditures were $20.1 million during the second quarter of
2013, of which $14.8 million were cash capital expenditures. The Company
incurred $5.3 million in non-cash capital expenditures during the second
quarter, consisting mainly of capital lease obligations related to its fiber
assets. In the first quarter of 2013, capital expenditures were $15.5 million,
of which $12.4 million were cash capital expenditures.

Free Cash Flow

Free cash flow, defined as adjusted EBITDA less cash capital expenditures, was
$7.1 million in the second quarter of 2013 compared with $12.5 million in the
second quarter of 2012 and $8.4 million in the first quarter of 2013.

Revised Business Outlook for 2013

Revised financial guidance for 2013:

  *Revenue of $464 million to $471 million;
  *Adjusted EBITDA of $76 million to $80 million;
  *Cash capital expenditures of $56 million to $60 million; and
  *Free cash flow of $18 million to $22 million.

Regarding capital expenditures, it should be noted that the guidance range of
$56 million to $60 million, as well as the resulting $18 million to $22
million of free cash flow (adjusted EBITDA less capital expenditures), relates
to cash capital expenditures. Cbeyond has already and may continue to enter
into agreements for fiber network assets and data center equipment involving
long-term capital leases that will create additional non-cash capital
expenditures this year not included in the guidance range provided above. The
assets acquired under these agreements are excluded from the Company's
definition of cash capital expenditures because they do not require upfront
outlays of cash.

Conference Call

Cbeyond will hold a conference call to discuss this press release on
Wednesday, July 31, 2013, at 5:00p.m.EDT. A live broadcast of the conference
call will be available on-line at http://ir.cbeyond.net/events.cfm. To listen
to the live call, please go to the web site at least 10 minutes early to
register, download, and install any necessary audio software. The conference
call will also be available by dialing (877) 303-9219 (fordomestic U.S.
callers) and (760) 666-3559 (for international callers). For those who cannot
listen to the live broadcast, an on-line replay will be available shortly
after the call and continue to be available for one year.

About Cbeyond

Cbeyond, Inc. (Nasdaq:CBEY), a cloud and communications services provider, is
the technology ally for small and mid-sized business. Our private,
proactively-managed IP network connects customers to voice, data and
enterprise applications hosted in our award-winning cloud data centers. Since
1999, Cbeyond has served the unmet needs of businesses through technology and
service innovation. We were the first company to build an all-IP network
specifically for small businesses and among the few to offer consultative
sales and service professionals onsite. Today, our expanded portfolio helps
customers reduce the burden of outlaying capital and manpower to manage
infrastructure. Creating an exceptional customer experience is in our DNA.
It's why more than a third of our approximately 60,000 customers come from
referrals. For more information on Cbeyond, visit www.cbeyond.com and follow
Cbeyond on Twitter: www.twitter.com/cbeyond.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, statements identified by words such as "expectations,"
"guidance," "believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "projects" and similar expressions. Such statements are
based upon the current beliefs and expectations of Cbeyond's management and
are subject to significant risks and uncertainties. Actual results may differ
from those set forth in the forward-looking statements. Factors that might
cause future results to differ include, but are not limited to, the following:
finalization of operating data, the significant reduction in economic
activity, which particularly affects our target market of small to mid-sized
businesses; the risk that we may be unable to experience revenue growth at
anticipated levels; changes in business climate or other factors affecting our
customer base; the risk of unexpected increases in customer churn levels; our
ability to manage competitive pricing dynamics in our markets; changes in
federal or state regulation or decisions by regulatory bodies that affect
Cbeyond; periods of economic downturn or unusual volatility in the capital
markets or other negative macroeconomic conditions that could harm our
business, including our access to capital markets and the impact on certain of
our customers to meet their payment obligations; the timing of the initiation,
progress or cancellation of significant contracts or arrangements; the mix and
timing of services sold in a particular period; our ability to recruit and
maintain experienced management and personnel; rapid technological change and
the timing and amount of start-up costs incurred in connection with the
introduction of new services or the entrance into new markets; our ability to
maintain or attract sufficient customers in existing or new markets; our
ability to respond to increasing competition; our ability to manage the growth
of our operations; changes in estimates of taxable income or utilization of
deferred tax assets which could significantly affect the Company's effective
tax rate; regulatory action relating to our compliance with customer
proprietary network information; the possibility that economic benefits of
future opportunities in an emerging industry may never materialize, including
unexpected variations in market growth and demand for products and
technologies; unfamiliarity with the economic characteristics of new
geographic markets; ongoing personnel and logistical challenges of managing a
larger organization; external events outside of our control, including extreme
weather, natural disasters, pandemics or terrorist attacks that could
adversely affect our target markets; our ability to implement and execute
successfully our new strategic focus; our ability to expand fiber
availability; the extent to which small and medium sized businesses continue
to spend on cloud, network and security services; our ability to recruit,
maintain and grow a sales force focused exclusively on our
technology-dependent customers; our ability to integrate new products into our
existing infrastructure; the effects of realignment activities; the extent to
which our customer mix becomes more technology-dependent; our ability to
achieve future cost savings related to our capital expenditures and investment
in Ethernet technology; and general economic and business conditions. You are
advised to consult any further disclosures we make on related subjects in the
reports we file with the SEC, including the "Risk Factors" in our most recent
annual report on Form 10-K, together with updates that may occur in our
quarterly reports on Form 10-Q and Current Reports on Form 8‑K. Such
disclosure covers certain risks, uncertainties and possibly inaccurate
assumptions that could cause our actual results to differ materially from
expected and historical results. We undertake no obligation to correct or
update any forward‑looking statements, whether as a result of new information,
future events or otherwise.

Key Operating Metrics and Non-GAAP Financial Measures

In this press release, the Company uses several key operating metrics and
non-GAAP financial measures. The Company defines each of these metrics and
provides a reconciliation of non-GAAP financial measures to the most directly
comparable generally accepted accounting principles in the United States, or
GAAP, financial measure. These financial measures and operating metrics are a
supplement to GAAP financial information and should not be considered as an
alternative to, or more meaningful than, net income, cash flow or operating
income as determined in accordance with GAAP.

Adjusted EBITDA is not a substitute for operating income, net income, or cash
flow from operating activities as determined in accordance with GAAP, as a
measure of performance or liquidity. The Company defines EBITDA as net income
(loss) before interest, income taxes, depreciation and amortization. However,
we use adjusted EBITDA, also a non-GAAP financial measure, to further exclude,
when applicable, non-cash share-based compensation, public offering or
acquisition-related transaction costs, purchase accounting adjustments, gain
or loss on asset dispositions and non-operating income or expense. Adjusted
EBITDA may exclude charges for employee severances, asset or facility
impairments, and other exit activity costs associated with a management
directed plan (including realignment costs). Information relating to adjusted
EBITDA is provided so that investors have the same data that management
employs in assessing the overall operation of the Company's business.

Adjusted EBITDA allows the chief operating decision maker to assess the
performance of the Company's business on a consolidated basis to assess the
ability to produce operating cash flow to fund working capital needs, to
service debt obligations and to fund capital expenditures. In particular,
adjusted EBITDA permits a comparative assessment of the Company's operating
performance, relative to a performance based on GAAP results, while isolating
the effects of depreciation and amortization, which may vary among segments
without any correlation to their underlying operating performance, and of
non-cash share-based compensation, which is a non-cash expense that varies
widely among similar companies.

Free cash flow represents the cash that a company is able to generate
aftercash expenses and capital expenditures necessary to maintain or expand
its asset base. The Company defines free cash flow as adjusted EBITDA less
cash capital expenditures. Cbeyond believes that free cash flow is an
important metric for investors in evaluating how a company is currently using
cash generated, and may indicate its ability to generate cash that can
potentially be used by the business for capital investments, acquisitions,
reduction of debt, payment of dividends or share repurchases. Internally,
Cbeyond has also begun to focus on free cash flow as an important operating
performance metric and has designed its corporate bonus compensation plan to
utilize free cash flow as a component. However, free cash flow is not a
measure of financial performance under GAAP and may not be comparable to
similarly titled measures reported by other companies. Additionally, the
Company does not present or manage free cash flow on a segment basis.

Historically, we have defined free cash flow as adjusted EBITDA less total
capital expenditures. During the first quarter of 2012, we refined our
definition of capital expenditures for purposes of calculating free cash flow
to distinguish capital expenditures that require the up-front outlay of cash
from those where payment is deferred on a longer-term basis. This distinction
is primarily driven by the significant investments we are making to lease
fiber network assets that have an expected useful life of 20 years, which is
substantially longer than our typical asset lives. We believe this distinction
is warranted and appropriate since these investments are expected to yield
meaningful positive cash flows in future periods when the debt and lease
payments occur. These favorable future cash flows will result from fiber
infrastructure replacing a significant portion of the access and transport
circuits we currently lease from incumbent local exchange carriers (or
"ILECs"). We have recast all historical disclosures of capital expenditures as
well as free cash flow for all periods presented in this Current Report on
Form 8-K to be consistent with this delineation between cash and non-cash
capital expenditures.

                                                                
CBEYOND, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)
                                                                
                                                                
                                  Three Months Ended   Six Months Ended
                                   June 30,             June 30,
                                  2012       2013       2012       2013
                                                                
Revenue                          $123,762 $118,215 $247,605 $238,161
                                                                
Operating expenses:                                            
Cost of revenue (excluding        40,164    39,491    80,648    78,279
depreciation and amortization)
Selling, general and
administrative (excluding          59,585    59,840    125,393   123,611
depreciation and amortization)
Depreciation and amortization    18,370    18,460    37,246    36,065
Total operating expenses         118,119   117,791   243,287   237,955
                                                                
Operating income (loss)          5,643     424       4,318     206
                                                                
Other income (expense):                                        
Interest expense, net            (144)     (196)     (271)     (349)
                                                                
Income (loss) before income       5,499     228       4,047     (143)
taxes
                                                                
Income tax (expense) benefit     (2,805)   (269)     (2,547)   (454)
                                                                
Net income (loss)                $2,694   $(41)    $1,500   $(597)
                                                                
Net Income (loss) per common                                    
share:
Basic                            $0.09    $(0.00)  $0.05    $(0.02)
Diluted                          $0.09    $(0.00)  $0.05    $(0.02)
                                                                
Weighted average number of common shares                         
outstanding:
Basic                            29,275     30,427     29,244     30,302
Diluted                          29,900     30,427     29,860     30,302

                                                                  
CBEYOND, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                                                                  
                                                      December 31, June 30,
                                                       2012         2013
ASSETS                                                             
Current assets                                                     
Cash and cash equivalents                              $30,620    $27,515
Accounts receivable, net of allowance for doubtful     23,328       23,050
accounts
Other current assets                                   12,423       15,573
Total current assets                                   66,371       66,138
                                                                  
Property and equipment, net                            157,624      157,769
Other non-current assets, net                          31,053       29,969
Total assets                                           $255,048   $253,876
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
Current liabilities                                                
Accounts payable                                       $15,870    $12,485
Other current liabilities                              52,623       45,527
Total current liabilities                              68,493       58,012
                                                                  
Non-current portion of long-term debt                  6,947       12,759
Other Non-current liabilities                          7,722        7,167
                                                                  
Stockholders' equity                                               
Common stock                                           299          308
Additional paid-in capital                             323,584      328,224
Accumulated deficit                                    (151,997)    (152,594)
Total stockholders' equity                             171,886      175,938
Total liabilities and stockholders' equity             $255,048   $253,876

                                                                   
CBEYOND, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
                                                                   
                                                          Six Months Ended
                                                           June 30,
                                                          2012      2013
OPERATING ACTIVITIES:                                               
Net income (loss)                                          $1,500  $(597)
Adjustments to reconcile net loss to net cash provided by           
operating activities:
Depreciation and amortization                              37,246    36,065
Deferred taxes                                             1,762     232
Provision for doubtful accounts                            3,227     2,073
Non-cash shares-based compensation                         6,722     6,024
Change in acquisition-related contingent consideration     23        --
Changes in operating assets and liabilities:                        
Accounts receivable                                        (2,140)   (1,795)
Other current assets                                       (1,756)   (3,150)
Other assets                                               (330)     592
Accounts payable                                           (2,691)   (3,385)
Other liabilities                                          (4,739)   (9,475)
Net cash provided by operating activities                  38,824    26,584
                                                                   
INVESTING ACTIVITIES:                                               
Purchases of property and equipment                        (29,601)  (27,214)
Additional acquisition consideration                       (4,950)   --
Decrease in restricted cash                                1,295     --
Net cash used in investing activities                      (33,256)  (27,214)
                                                                   
FINANCING ACTIVITIES:                                               
Taxes paid on vested restricted shares                     (1,272)   (1,605)
Principal payments of capital lease obligations            --        (872)
Proceeds from short-term borrowings                        4,250     --
Repayment of short-term borrowings                         (4,250)   --
Financing issuance costs                                   (149)     (130)
Proceeds from exercise of stock options                    16        132
Repurchase of common stock                                 (2,005)   --
Net cash used in financing activities                      (3,410)   (2,475)
                                                                   
Net increase (decrease) in cash and cash equivalents       2,158     (3,105)
Cash and cash equivalents at beginning of period           8,521     30,620
Cash and cash equivalents at end of period                 $ 10,679 $ 27,515

                                                               
CBEYOND, INC. AND SUBSIDIARY
Selected Quarterly Financial Data and Operating Metrics
(Dollars in thousands, except for Network Access Customer Data)
(Unaudited)
                                                               
                                                               
                    Three Months Ended,
                    Jun. 30     Sep. 30     Dec. 31     Mar. 31    Jun. 30
                    2012        2012        2012        2013       2013
Revenues                                                        
Network, Voice and  $ 117,674  $ 115,164  $ 112,364  $ 113,352 $ 110,852
Data
Managed Hosting and 6,088      6,327      6,506      6,594     7,363
Cloud
Total Revenue      $ 123,762  $ 121,491  $ 118,870  $ 119,946 $ 118,215
                                                               
                                                               
Adjusted EBITDA      $27,236   $25,207   $18,828   $20,833  $21,929
Adjusted EBITDA
margin (As % of      22.0%      20.7%      15.8%      17.4%     18.6%
Total Revenue)
                                                               
Cash Capital        $14,765   $17,516   $14,488   $12,434  $14,780
Expenditures
Non-cash Capital                                               
Expenditures
Capital Leases     $957      $--       $4,976    $3,017   $5,264
Leasehold           $--       $--       $--       $--      $21
Improvements
Total Capital       $15,722   $17,516   $19,464   $15,451  $20,065
Expenditures
                                                               
Free cash flow       $12,471   $7,691    $4,340    $8,399   $7,149
                                                               
Network Access                                                  
Customer Data
Network Access
Customers (At Period 62,015     60,876     59,692     58,434    57,013
End)
Net Network Access  (450)      (1,139)    (1,184)    (1,258)   (1,421)
Customer Additions
Average Monthly     1.5%       1.6%       1.6%       1.6%      1.6%
Churn Rate (1)
Average Monthly
Revenue Per Network  $645      $640      $638      $656     $662
Access Customer (2)
                                                               
(1) Calculated for each period as the average of monthly churn, which is
defined for a given month as the number of network access customers
disconnected in that month divided by the number of network access customers
on the Company's network at the beginning of that month.

(2) Calculated as the revenue for a period divided by the average of the
number of network access customers at the beginning of the period and the
number of network access customers at the end of the period, divided by the
number of months in the period. Revenue used to calculate ARPU is defined as
the revenue associated with customers where Cbeyond provides network access
and includes all Network, Voice and Data revenue and the portion of Managed
Hosting and Cloud revenue where Cbeyond provides network access.

                                                               
CBEYOND, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measure to GAAP Financial Measure
(In thousands)
(Unaudited)
                                                               
                       Three Months Ended,
                       Jun. 30    Sep. 30    Dec. 31    Mar. 31    Jun. 30
                       2012       2012       2012       2013       2013
                                                               
Reconciliation of Free
Cash Flow and Adjusted                                          
EBITDA to Net income
(loss):
                                                               
Free Cash Flow          $12,471  $7,691   $4,340   $8,399   $7,149
Cash capital            14,765    17,516    14,488    12,434    14,780
expenditures
Adjusted EBITDA         $27,236  $25,207  $18,828  $20,833  $21,929
Depreciation and        (18,370)  (18,172)  (18,605)  (17,605)  (18,460)
amortization
Non-cash share-based    (2,939)   (2,975)   (3,443)   (2,979)   (3,045)
compensation
Realignment costs       (284)     --        (312)     (467)     --
Interest expense, net   (144)     (138)     (168)     (153)     (196)
Income (loss) before    5,499     3,922     (3,700)   (371)     228
income taxes
Income tax (expense)    (2,805)   (1,969)   (2,075)   (185)     (269)
benefit
Net income (loss)       $2,694   $1,953   $(5,775) $(556)   $(41)
                                                               
                                                               
CBEYOND, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measure to GAAP Financial Measure
(Dollars in thousands, except for ARPU)
(Unaudited)
                                                               
                       Three Months Ended,
                       Jun. 30    Sep. 30    Dec. 31    Mar. 31    Jun. 30
                       2012       2012       2012       2013       2013
                                                               
Calculation of ARPU:                                            
Total revenue           $123,762 $121,491 $118,870 $119,946 $118,215
Cloud only revenue      (3,367)   (3,486)   (3,483)   (3,650)   (3,558)
(A) Network access      $120,395 $118,005 $115,387 $116,296 $114,657
customer revenue
                                                               
(B) Average Network    62,240    61,446    60,284    59,063    57,724
access customers
ARPU (A / B / number of $645     $640     $638     $656     $662
months in period)

CONTACT: Investor Contact:
         Cbeyond, Inc.
         Rob Clancy
         Vice President of Investor Relations
         678-486-8023
         rob.clancy@cbeyond.com

Cbeyond, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.