CoreSite Realty Corporation (NYSE:COR) Q4 2014 Earnings Conference Call - Final Transcript

Feb 12, 2015 • 12:00 pm ET


CoreSite Realty Corporation (NYSE:COR) Q4 2014 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the CoreSite Realty Corporation Fourth Quarter 2014 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Derek McCandless. Thank you, Mr. McCandless. You may begin.

Derek McCandless

Thank you. Hello, everyone, and welcome to our fourth quarter 2014 conference call. I'm joined here today by Tom Ray, our President and CEO; and Jeff Finnin, our Chief Financial Officer. As we begin our call, I would like to remind everyone that our remarks on today's call may include forward-looking statements within the meaning of applicable securities laws, including statements regarding projections, plans, or future expectations.

These forward-looking statements reflect current views and expectations, which are based on currently available information and management's judgment. We assume no obligation to update these forward-looking statements, and we can give no assurance that the expectations will be attained. Actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and uncertainties, including those set forth in our SEC filings. Also, on this conference call, we refer to certain non-GAAP financial measures such as funds from operations.

Reconciliations of these non-GAAP financial measures are available in the supplemental information that is part of the full earnings release, which can be accessed on the Investor Relations pages of our website at

Now, I will turn the call over to Tom.

Tom Ray

Good morning, and welcome to our fourth quarter earnings call. We're pleased to report continued execution of our business plan in Q4, delivering solid growth and finishing out 2014 as a strong year for our company. During the year, we worked to make our organization leaner, more efficient and more productive, and we believe that our work is reflected in our financial and operating results. Our financial results for 2014 reflect solid growth over 2013, with increases in revenue, adjusted EBITDA and FFO of 16%, 20% and 20% respectively, all excluding the impact of non-recurring items from the first half of the year.

We believe that in Q4, our momentum continued to accelerate with our Q4 results compared to Q4 of the prior year, reflecting stronger growth than our year-on-year results. Specifically, Q4, '14 over Q4 '13 results reflect growth of 18% in revenue, 28% in adjusted EBITDA and 25% in FFO. We achieved this strong top-line growth while simultaneously working to make our organization simpler and more efficient. Reflecting that work, G&A as a percent of revenue decreased by over 140 basis points in calendar 2014 over 2013, and correspondingly, G&A as a percent of adjusted EBITDA and FFO declined by 400 and 500 basis points respectively.

We believe that we accomplished stronger growth with lower relative expense by simplifying our internal structure, streamlining decision making and enhancing clarity among our employees. A key component of our work in 2014 to