Cogent Communications Reports Third Quarter 2020 Results and Increases its Regular Quarterly Dividend on its Common Stock by $0.025

WASHINGTON, Nov. 5, 2020 /PRNewswire/ --

Financial and Business Highlights

    --  Cogent approved an increase of $0.025 per share to its regular quarterly
        dividend for a total of $0.730 per share for Q4 2020 as compared to
        $0.705 per share for Q3 2020 - Cogent's thirty-third consecutive
        quarterly dividend increase
        --  The Q4 2020 $0.730 dividend per share represents an annual increase
            of 14.1% from the dividend per share of $0.640 for Q4 2019.
    --  Service revenue increased by 0.9% from Q2 2020 to Q3 2020 and increased
        from Q3 2019 to Q3 2020 by 3.9%.
    --  GAAP gross profit increased by 7.3% from Q3 2019 to $66.2 million for Q3
        2020. Non-GAAP gross profit increased by 7.5% from Q3 2019 to $88.1
        million for Q3 2020.
        --  GAAP gross margin increased by 150 basis points from Q3 2019 to Q3
            2020 to 46.5%. Non-GAAP gross margin increased by 200 basis points
            from Q3 2019 to Q3 2020 to 61.9%.
    --  Net cash provided by operating activities was $33.0 million for Q3 2020,
        $41.3 million for Q2 2020 and $33.4 million for Q3 2019.
    --  EBITDA margin increased by 60 basis points from Q2 2020 to 38.4% for Q3
        2020 and increased by 150 basis points from Q3 2019.
    --  EBITDA increased by 2.3% from Q2 2020 to $54.6 million for Q3 2020 and
        increased by 8.1% from Q3 2019.

Cogent Communications Holdings, Inc. (NASDAQ: CCOI) ("Cogent") today announced service revenue of $142.3 million for the three months ended September 30, 2020, an increase of 0.9% from the three months ended June 30, 2020 and an increase of 3.9% from the three months ended September 30, 2019. Foreign exchange positively impacted service revenue growth from the three months ended June 30, 2020 to the three months ended September 30, 2020 by $1.6 million and positively impacted service revenue growth from the three months ended September 30, 2019 to the three months ended September 30, 2020 by $1.1 million. On a constant currency basis, service revenue declined by 0.2% from the three months ended June 30, 2020 to the three months ended September 30, 2020 and grew by 3.1% from the three months ended September 30, 2019 to the three months ended September 30, 2020.

On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was $105.1 million for the three months ended September 30, 2020; an increase of 1.2% from the three months ended June 30, 2020 and an increase of 5.7% over the three months ended September 30, 2019.

Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Off-net revenue was $37.1 million for the three months ended September 30, 2020; an increase of 0.1% over the three months ended June 30, 2020 and a decrease of 0.9% over the three months ended September 30, 2019.

Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell. Non-core revenue was $119,000 for the three months ended September 30, 2020; a decrease of 18.5% from the three months ended June 30, 2020. Non-core revenue was $108,000 for the three months ended September 30, 2019.

GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. GAAP gross profit increased by 7.3% from the three months ended September 30, 2019 to $66.2 million for the three months ended September 30, 2020 and decreased by 1.6% from the three months ended June 30, 2020. GAAP gross margin was 46.5% for the three months ended September 30, 2020, 45.0% for the three months ended September 30, 2019 and 47.7% for the three months ended June 30, 2020. Excise taxes, including Universal Service Fund fees, recorded on a gross basis and included in service revenue and cost of network operations expense were $3.9 million for the three months ended September 30, 2020, $4.0 million for the three months ended September 30, 2019 and $3.3 million for the three months ended June 30, 2020.

Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as Non-GAAP gross profit divided by total service revenue. Non-GAAP gross profit increased by 7.5% from the three months ended September 30, 2019 to $88.1 million for the three months ended September 30, 2020 and increased by 0.8% from the three months ended June 30, 2020. Non-GAAP gross profit margin was 61.9% for the three months ended September 30, 2020, 59.9% for the three months ended September 30, 2019 and 62.0% for the three months ended June 30, 2020.

Net cash provided by operating activities decreased by 1.4% from the three months ended September 30, 2019 to $33.0 million for the three months ended September 30, 2020 and decreased by 20.2% from the three months ended June 30, 2020.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 8.1% from the three months ended September 30, 2019 to $54.6 million for the three months ended September 30, 2020 and increased by 2.3% from the three months ended June 30, 2020. EBITDA margin was 38.4% for the three months ended September 30, 2020, 36.9% for the three months ended September 30, 2019 and 37.8% for the three months ended June 30, 2020.

Basic net (loss) income per share was $(0.11) for the three months ended September 30, 2020, $0.30 for the three months ended September 30, 2019 and $0.19 for the three months ended June 30, 2020. Diluted net (loss) income per share was $(0.11) for the three months ended September 30, 2020, $0.30 for the three months ended September 30, 2019 and $0.18 for the three months ended June 30, 2020.

Unrealized foreign exchange (losses) gains on Cogent's 2024 Senior Euro Notes were $(17.3) million for the three months ended September 30, 2020, $6.2 million for the three months ended September 30, 2019 and $(3.4) million for the three months ended June 30, 2020.

Total customer connections increased by 3.3% from 85,692 as of September 30, 2019 to 88,509 as of September 30, 2020 and increased by 0.5% from 88,112 as of June 30, 2020. On-net customer connections increased by 3.3% from 73,870 as of September 30, 2019 to 76,338 as of September 30, 2020 and increased by 0.5% from 75,927 as of June 30, 2020. Off-net customer connections increased by 3.0% from 11,503 as of September 30, 2019 to 11,849 as of September 30, 2020 and off-net customer connections were 11,846 as of June 30, 2020.

The number of on-net buildings increased by 113 buildings from September 30, 2019 to 2,884 on-net buildings as of September 30, 2020 and increased by 30 on-net buildings from June 30, 2020.

Quarterly Dividend Increase Approved

On November 4, 2020, Cogent's Board approved a regular quarterly dividend of $0.730 per common share payable on December 4, 2020 to shareholders of record on November 20, 2020. This fourth quarter 2020 regular dividend represents a 3.5% increase of $0.025 per share from the third quarter 2020 regular dividend of $0.705 per share and an annual increase of 14.1% from the Q4 2019 dividend of $0.640 per share.

The payment of any future dividends and any other returns of capital will be at the discretion of the Board and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements, limitations under Cogent's debt indenture agreements and other factors deemed relevant by the Board.

Share Buy-back Program Extension and Stock Purchases

On November 4, 2020, the Board extended Cogent's share buy-back program to December 31, 2021.

During the three months ended September 30, 2020 Cogent purchased 4,567 shares of its common stock for $0.3 million. Subsequent to September 30, 2020, Cogent purchased 53,516 shares of its common stock for $3.1 million.

Impact of COVID-19

Cogent continues to be impacted by the COVID-19 pandemic and the accompanying responses by governments around the world. Cogent's workforce continues to work remotely with dedication. During the third quarter of 2020, Cogent experienced a decrease in sales productivity as certain new potential customers decided to delay the purchase of services and certain existing and new corporate customers decided to reduce their number of secondary service locations.

The ongoing impact of the COVID-19 pandemic and related government restrictions on Cogent's business is unknown as a significant amount of uncertainty and volatility remains. Cogent does not know the scope and duration of the pandemic, what actions governments may take in the future in response to the pandemic and what the impact will be on the economies of the world. While Cogent's workforce is working remotely, Cogent provides no assurance that this will be sufficient to protect its workforce or its key employees. Moreover, Cogent's results of operations may be adversely affected in the future as the pandemic and the related government restrictions continue. Cogent may also experience slowdowns in new customer orders, find it difficult to collect from customers who are experiencing financial distress, an increase in customer churn, encounter difficulties accessing the buildings and locations where Cogent installs new services and serves existing customers, or have difficulties procuring, shipping or installing necessary equipment on its network. Cogent may also find that its largest customer base, which is served primarily in its multi-tenant office buildings, may be adversely affected by falling demand for commercial office space in central business districts as companies located in these buildings elect not to return to their office space either on a temporary or even permanent basis. In addition, Cogent's corporate customer base may reduce their overall number of locations due to adverse economic conditions or new working configurations which may adversely affect Cogent's number of corporate connections and service revenues. As a result, the global economic impact of the COVID-19 pandemic may have prolonged effects that impact Cogent's business well into the future. These and other risks will be described in more detail in Cogent's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and are set forth in its annual report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarters ended June 30, 2020 and March 31, 2020.

Conference Call and Website Information

Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on November 5, 2020 to discuss Cogent's operating results for the third quarter of 2020 and to discuss Cogent's expectations for full year 2020. Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" section of Cogent's website at www.cogentco.com/events. A replay of the webcast, together with the press release, will be available on the website following the earnings call. A downloadable file of Cogent's "Summary of Financial and Operational Results" and a transcript of its conference call will also be available on Cogent's website following the conference call.

About Cogent Communications

Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high-speed Internet access, Ethernet transport, and colocation services. Cogent's facilities-based, all-optical IP network backbone provides services in over 200 markets globally.

Cogent Communications is headquartered at 2450 N Street, NW, Washington, D.C. 20037. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.


                                                                                                    
            
          COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES


                                                                                                         
            
          Summary of Financial and Operational Results




                                                                                            Q1 2019        Q2 2019                                Q3 2019                     Q4 2019      Q1 2020       Q2 2020      Q3 2020

                                                                                                                                                                                                                          ---

                                Metric ($ in 000's, except share and per share data) -
                                 unaudited

    ---

                   On-Net revenue                                                           $97,183         $97,472                                 $99,416                     $102,683      $103,457       $103,800      $105,091

    ---

                     % Change from previous
                      Qtr.                                                                     1.9%           0.3%                                   2.0%                        3.3%         0.8%          0.3%         1.2%

    ---

                   Off-Net revenue                                                          $36,843         $37,191                                 $37,418                      $37,479       $37,321        $37,044       $37,092

    ---

                     % Change from previous
                      Qtr.                                                                     0.8%           0.9%                                   0.6%                        0.2%        -0.4%         -0.7%         0.1%

    ---

                   Non-Core revenue (1)                                                        $111            $126                                    $108                         $130          $137           $146          $119

    ---

                     % Change from previous
                      Qtr.                                                                   -24.5%          13.5%                                 -14.3%                       20.4%         5.4%          6.6%       -18.5%

    ---

                   Service revenue -
                    total                                                                  $134,137        $134,789                                $136,942                     $140,292      $140,915       $140,990      $142,302

    ---

                     % Change from previous
                      Qtr.                                                                     1.6%           0.5%                                   1.6%                        2.4%         0.4%          0.1%         0.9%

    ---

                   Constant currency
                    total revenue
                    quarterly growth rate
                    - sequential quarters
                    (6)                                                                       1.7%           0.7%                                   1.7%                        2.5%         0.6%          0.2%        -0.2%

    ---

                   Constant currency
                    total revenue
                    quarterly growth rate
                    - year over year
                    quarters (6)                                                               5.8%           5.4%                                   6.0%                        6.8%         5.6%          5.1%         3.1%

    ---

                   Excise Taxes included
                    in service revenue                                                       $3,391          $3,191                                  $3,998                       $4,334        $3,743         $3,298        $3,902

    ---

                     % Change from previous
                      Qtr.                                                                     4.9%          -5.9%                                  25.3%                        8.4%       -13.6%        -11.9%        18.3%

    ---

                   Network operations
                    expenses (2)                                                            $53,970         $54,181                                 $54,971                      $55,684       $55,669        $53,581       $54,173

    ---

                     % Change from previous
                      Qtr.                                                                    -2.6%           0.4%                                   1.5%                        1.3%           -%        -3.8%         1.1%

    ---

                   GAAP gross profit (3)                                                    $59,724         $60,403                                 $61,683                      $64,300       $65,486        $67,208       $66,164

    ---

                     % Change from previous
                      Qtr.                                                                     7.7%           1.1%                                   2.1%                        4.2%         1.8%          2.6%        -1.6%

    ---

                   GAAP gross margin (3)                                                      44.5%          44.8%                                  45.0%                       45.8%        46.5%         47.7%        46.5%

    ---

                   Non-GAAP gross profit
                    (4) (6)                                                                 $80,167         $80,608                                 $81,971                      $84,608       $85,246        $87,409       $88,129

    ---

                     % Change from previous
                      Qtr.                                                                     4.6%           0.6%                                   1.7%                        3.2%         0.8%          2.5%         0.8%

    ---

                   Non-GAAP gross margin
                    (4) (6)                                                                   59.8%          59.8%                                  59.9%                       60.3%        60.5%         62.0%        61.9%

    ---

                   Selling, general and
                    administrative
                    expenses (5)                                                            $32,568         $33,503                                 $31,456                      $31,884       $34,852        $34,061       $33,546

    ---

                     % Change from previous
                      Qtr.                                                                    12.2%           2.9%                                  -6.1%                        1.4%         9.3%         -2.3%        -1.5%

    ---

                   Depreciation and
                    amortization expense                                                    $20,263         $19,979                                 $20,006                      $20,002       $19,508        $19,896       $21,619

    ---

                     % Change from previous
                      Qtr.                                                                    -3.3%          -1.4%                                   0.1%                          -%       -2.5%          2.0%         8.7%

    ---

                   Equity-based
                    compensation expense                                                     $3,434          $5,289                                  $4,797                       $4,940        $5,075         $6,083        $6,522

    ---

                     % Change from previous
                      Qtr.                                                                   -22.1%          54.0%                                  -9.3%                        3.0%         2.7%         19.9%         7.2%

    ---

                   Operating income                                                         $24,400         $22,022                                 $25,799                      $28,033       $25,850        $27,574       $26,036

    ---

                     % Change from previous
                      Qtr.                                                                     9.4%          -9.7%                                  17.2%                        8.7%        -7.8%          6.7%        -5.6%

    ---

                   Interest expense                                                         $13,456         $13,595                                 $15,191                      $15,211       $15,220        $15,499       $15,760

    ---

                     % Change from previous
                      Qtr.                                                                    -0.4%           1.0%                                  11.7%                        0.1%         0.1%          1.8%         1.7%

    ---

                   Net income                                                                $9,217          $7,136                                 $13,701                       $7,465        $9,227         $8,564      $(4,955)

    ---

                   Realized and
                    unrealized gains
                    (losses) on 2024 euro
                    notes                                                               
            $-           $177                                  $6,128                     $(4,032)       $2,908         $(873)    $(17,315)

    ---                                                                                                                                                                                                                   ---

                   Basic net income per
                    common share                                                              $0.20           $0.16                                   $0.30                        $0.16         $0.20          $0.19       $(0.11)

    ---

                   Diluted net income per
                    common share                                                              $0.20           $0.16                                   $0.30                        $0.16         $0.20          $0.18       $(0.11)

    ---

                   Weighted average
                    common shares - basic                                                45,223,157      45,354,327                              45,438,656                   45,553,727    45,658,565     45,754,880    45,815,718

    ---

                     % Change from previous
                      Qtr.                                                                    -0.1%           0.3%                                   0.2%                        0.3%         0.2%          0.2%         0.1%

    ---

                   Weighted average
                    common shares -
                    diluted                                                              45,644,236      45,912,291                              46,019,691                   46,145,970    46,391,066     46,686,665    45,815,718

    ---

                     % Change from previous
                      Qtr.                                                                    -0.3%           0.6%                                   0.2%                        0.3%         0.5%          0.6%        -1.9%

    ---

                   EBITDA (6)                                                               $47,561         $47,105                                 $50,515                      $52,724       $50,394        $53,348       $54,583

    ---

                     % Change from previous
                      Qtr.                                                                       -%         -1.0%                                   7.2%                        4.4%        -4.4%          5.9%         2.3%

    ---                                                                                                                                                                                                                   ---

                   EBITDA margin                                                              35.5%          34.9%                                  36.9%                       37.6%        35.8%         37.8%        38.4%

    ---

        Gains on asset related
         transactions                                                                          $536            $185                                     $87                         $251           $39           $205           $99

    ---

                   EBITDA, as adjusted
                    (6)                                                                    $48,097         $47,290                                 $50,602                      $52,975       $50,433        $53,553       $54,682

    ---

                     % Change from previous
                      Qtr.                                                                     0.9%          -1.7%                                   7.0%                        4.7%        -4.8%          6.2%         2.1%

    ---

                   EBITDA, as adjusted,
                    margin                                                                    35.9%          35.1%                                  37.0%                       37.8%        35.8%         38.0%        38.4%

    ---

                                Net cash provided by
                                 operating activities                                       $28,637         $40,632                                 $33,443                      $46,097       $28,458        $41,311       $32,980

    ---

                     % Change from previous
                      Qtr.                                                                   -29.7%          41.9%                                 -17.7%                       37.8%       -38.3%         45.2%       -20.2%

    ---

                                Capital expenditures                                        $13,288         $11,720                                 $12,051                       $9,899       $12,866        $13,930       $13,296

    ---

                                             % Change from previous
                                              Qtr.                                            21.5%         -11.8%                                   2.8%                      -17.9%        30.0%          8.3%        -4.6%

    ---

                                Principal payments of
                                 capital (finance)
                                 lease obligations                                           $3,030          $1,976                                  $2,029                       $2,056        $6,167         $3,716        $9,509

    ---

                                             % Change from previous
                                              Qtr.                                            42.4%         -34.8%                                   2.7%                        1.3%       200.0%        -39.7%       155.9%

    ---

                                Dividends paid                                              $26,565         $27,741                                 $28,565                      $29,776       $30,557        $31,738       $32,657

    ---

                                Purchases of common
                                 stock                                                 
            $ -   
            $ -                           
            $ -                  
          $ -    
         $ -     
          $-         $270

    ---                                                                                                                                                                                                                   ---

                                Gross Leverage Ratio                                           4.28            5.08                                    4.97                         4.86          4.78           5.08          5.10

    ---

                                Net Leverage Ratio                                             2.92            2.93                                    2.92                         2.86          2.92           3.07          3.24

    ---

                                               Customer Connections - end of period

    ---


       On-Net                                                                               71,066          72,415                                  73,870                       74,554        75,163         75,927        76,338

    ---

                     % Change from previous
                      Qtr.                                                                     3.3%           1.9%                                   2.0%                        0.9%         0.8%          1.0%         0.5%

    ---


       Off-Net                                                                              11,138          11,321                                  11,503                       11,660        11,721         11,846        11,849

    ---

                     % Change from previous
                      Qtr.                                                                     1.5%           1.6%                                   1.6%                        1.4%         0.5%          1.1%         0.0%

    ---


       Non-Core (1)                                                                            318             318                                     319                          325           329            339           322

    ---

                     % Change from previous
                      Qtr.                                                                   -12.2%             -%                                 -0.3%                        1.9%         1.2%          3.0%        -5.0%

    ---

        Total customer
         connections                                                                         82,522          84,054                                  85,692                       86,539        87,213         88,112        88,509

    ---

                     % Change from previous
                      Qtr.                                                                     3.0%           1.9%                                   1.9%                        1.0%         0.8%          1.0%         0.5%

    ---

                                               On-Net Buildings - end of period

    ---

        Multi-Tenant office
         buildings                                                                            1,746           1,751                                   1,757                        1,767         1,769          1,771         1,783

    ---

        Carrier neutral data
         center buildings                                                                       908             933                                     960                          980         1,000          1,029         1,047

    ---

        Cogent data centers                                                                      52              53                                      54                           54            54             54            54

    ---

        Total on-net
         buildings                                                                            2,706           2,737                                   2,771                        2,801         2,823          2,854         2,884

    ---

        Square feet - multi-
         tenant office
         buildings - on-net                                                             949,486,923     951,031,709                             954,013,024                  957,173,183   961,154,384    962,049,183   968,355,695

    ---


       
              
                Network  - end of period

    ---

        Intercity route miles                                                                57,426          57,426                                  57,426                       57,600        58,009         58,009        58,142

    ---

        Metro fiber miles                                                                    33,664          34,163                                  34,985                       35,526        36,079         36,438        36,725

    ---

        Connected networks -
         AS's                                                                                 6,668           6,762                                   6,844                        6,954         7,042          7,133         7,222

    ---


       
              
                Headcount - end of period

    ---

        Sales force - quota
         bearing                                                                                501             519                                     530                          548           542            572           597

    ---

        Sales force -total                                                                      639             656                                     667                          686           684            716           740

    ---

        Total employees                                                                         997           1,026                                   1,036                        1,055         1,052          1,083         1,110

    ---

                   Sales rep productivity
                    - units per full time
                    equivalent sales rep
                    ("FTE") per month                                                           5.1             4.9                                     4.4                          4.1           4.5            4.0           3.7

    ---

                   FTE - sales reps                                                             464             478                                     488                          502           522            533           563

    ---




              (1)              Consists of legacy services of
                                  companies whose assets or
                                  businesses were acquired by
                                  Cogent, primarily including voice
                                  services (only provided in
                                  Toronto, Canada).



              (2)              Network operations expense excludes
                                  equity-based compensation expense
                                  of $180, $226, $282, $306, $252,
                                  $305 and $346 in the three month
                                  periods ended March 31, 2019
                                  through September 30, 2020,
                                  respectively.  Network operations
                                  expense includes excise taxes,
                                  including Universal Service Fund
                                  fees of $3,391, $3,191, $3,998,
                                  $4,334, $3,743, $3,298 and $3,902
                                  in the three month periods ended
                                  March 31, 2019 through September
                                  30, 2020, respectively.



              (3)              GAAP gross profit is defined as
                                  total service revenue less network
                                  operations expense, depreciation
                                  and amortization and equity based
                                  compensation included in network
                                  operations expense.  GAAP gross
                                  margin is defined as GAAP gross
                                  profit divided by total service
                                  revenue.



              (4)              Non-GAAP gross profit represents
                                  service revenue less network
                                  operations expense, excluding
                                  equity-based compensation and
                                  amounts shown separately
                                  (depreciation and amortization
                                  expense). Non-GAAP gross margin
                                  is defined as non-GAAP gross
                                  profit divided by total service
                                  revenue.  Management believes that
                                  non-GAAP gross profit and non-
                                  GAAP gross profit margin are
                                  relevant metrics to provide
                                  investors, as they are metrics
                                  that management uses to measure
                                  the margin available to the
                                  company after network service
                                  costs, in essence a measure of the
                                  efficiency of the Company's
                                  network.



              (5)              Excludes equity-based compensation
                                  expense of $3,254, $5,063, $4,515,
                                  $4,634, $4,823, $5,778 and $6,176
                                  in the three month periods ended
                                  March 31, 2019 through September
                                  30, 2020, respectively.



              (6)              See Schedules of Non-GAAP measures
                                  below for definitions and
                                  reconciliations to GAAP measures.

Schedules of Non-GAAP Measures

EBITDA and EBITDA, as adjusted

EBITDA represents net cash flows provided by operating activities plus changes in operating assets and liabilities, cash interest expense and cash income tax expense. Management believes the most directly comparable measure to EBITDA calculated in accordance with generally accepted accounting principles in the United States, or GAAP, is net cash provided by operating activities. The Company also believes that EBITDA is a measure frequently used by securities analysts, investors, and other interested parties in their evaluation of issuers. EBITDA, as adjusted, represents EBITDA plus net gains (losses) on asset related transactions.

The Company believes that EBITDA, and EBITDA, as adjusted, are useful measures of its ability to service debt, fund capital expenditures and expand its business. EBITDA, and EBITDA, as adjusted are an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. EBITDA, and EBITDA, as adjusted are not recognized terms under GAAP and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, these metrics are not intended to reflect the Company's free cash flow, as it does not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of these metrics may also differ from the calculations performed by its competitors and other companies and as such, its utility as a comparative measure is limited.


                                                     
      
          EBITDA, and EBITDA, as adjusted, are reconciled to net cash provided by operating activities in the table below.




                                                            Q1                                    Q2                                          Q3                                   Q4        Q1        Q2         Q3
                                                                                                                                                                                         2020       2020        2020
                                                          2019                                   2019                                         2019                                  2019

                                                                                                                                                                                                                 ---


       
                ($ in 000's) - unaudited

    ---


       Net cash provided by operating activities      $28,637                                $40,632                                      $33,443                               $46,097    $28,458    $41,311     $32,980

    ---


       Changes in operating assets and liabilities      6,727                                (5,729)                                       3,785                               (6,557)     5,325   $(3,232)     $6,255

    ---


       Cash interest expense and income tax expense    12,197                                 12,202                                       13,287                                13,184     16,611     15,269      15,348

    ---


       
                EBITDA                            $47,561                                $47,105                                      $50,515                               $52,724    $50,394    $53,348     $54,583

    ---


       PLUS: Gains on asset related transactions          536                                    185                                           87                                   251         39        205          99

    ---


       
                EBITDA, as adjusted               $48,097                                $47,290                                      $50,602                               $52,975    $50,433    $53,553     $54,682

    ---


       
                EBITDA margin                       35.5%                                 34.9%                                       36.9%                                37.6%     35.8%     37.8%      38.4%

    ---


       
                EBITDA, as adjusted, margin         35.9%                                 35.1%                                       37.0%                                37.8%     35.8%     38.0%      38.4%

    ---



       
                Constant currency revenue is reconciled to service revenue as reported in the tables below.





       
                
                  Constant currency impact on revenue changes - sequential periods

    ---



                     ($ in 000's)
                      - unaudited                                           Q1                                        Q2      Q3      Q4      Q1       Q2          Q3

                                                                          2019                                       2019     2019     2019     2020      2020         2020

    ---                                                                                                                                                           ---

        Service
         revenue, as
         reported -
         current
         period                                                       $134,137                                   $134,789 $136,942 $140,292 $140,915  $140,990     $142,302

    ---

        Impact of
         foreign
         currencies
         on service
         revenue                                                           135                                        260      176       88      184       202      (1,616)

    ---

        Service
         revenue -as
         adjusted
         for currency
         impact (1)                                                   $134,272                                   $135,049 $137,118 $140,380 $141,099  $141,192     $140,686

    ---

        Service
         revenue, as
         reported -
         prior
         sequential
         period                                                       $132,049                                   $134,137 $134,789 $136,942 $140,292  $140,915     $140,990

    ---

        Constant
         currency
         (decrease)
         increase                                                       $2,223                                       $912   $2,329   $3,438     $807      $277       $(304)

    ---

        Constant
         currency
         percent
         (decrease)
         increase                                                         1.7%                                      0.7%    1.7%    2.5%    0.6%     0.2%      (0.2)%

    ---




              (1)              Service revenue, as adjusted for
                                  currency impact, is determined
                                  by translating the service
                                  revenue for the current period
                                  at the average foreign currency
                                  exchange rates for the prior
                                  sequential period. The Company
                                  believes that disclosing
                                  quarterly sequential revenue
                                  growth without the impact of
                                  foreign currencies on service
                                  revenue is a useful measure of
                                  sequential revenue growth.
                                  Service revenue, as adjusted for
                                  currency impact, is an integral
                                  part of the internal reporting
                                  and planning system used by
                                  management as a supplement to
                                  GAAP financial information.



       
                
                Constant currency impact on revenue changes - prior year periods

    ---



                     ($ in 000's)
                      - unaudited                                         Q1                            Q2      Q3      Q4      Q1       Q2        Q3

                                                                        2019                           2019     2019     2019     2020      2020       2020

    ---                                                                                                                                           ---

        Service
         revenue, as
         reported -
         current
         period                                                     $134,137                       $134,789 $136,942 $140,292 $140,915  $140,990   $142,302

    ---

        Impact of
         foreign
         currencies
         on service
         revenue                                                       2,078                          1,505    1,058      683      746       674    (1,141)

    ---

        Service
         revenue -as
         adjusted for
         currency
         impact  (2)                                                $136,215                       $136,294 $138,000 $140,975 $141,661  $141,664   $141,161

    ---

        Service
         revenue, as
         reported -
         prior year
         period                                                     $128,706                       $129,296 $130,139 $132,049 $134,137  $134,789   $136,942

    ---

        Constant
         currency
         increase                                                     $7,509                         $6,998   $7,861   $8,926   $7,524    $6,875     $4,219

    ---

        Percent
         increase                                                       5.8%                          5.4%    6.0%    6.8%    5.6%     5.1%      3.1%

    ---




              (2)              Service revenue, as adjusted for
                                  currency impact, is determined
                                  by translating the service
                                  revenue for the current period
                                  at the average foreign currency
                                  exchange rates for the
                                  comparable prior year period.
                                  The Company believes that
                                  disclosing year over year
                                  revenue growth without the
                                  impact of foreign currencies on
                                  service revenue is a useful
                                  measure of revenue growth.
                                  Service revenue, as adjusted for
                                  currency impact, is an integral
                                  part of the internal reporting
                                  and planning system used by
                                  management as a supplement to
                                  GAAP financial information.



       
                
                  Non-GAAP gross profit and Non-GAAP gross margin

    ---




       
                Non-GAAP gross profit and Non-GAAP gross margin are reconciled to GAAP gross profit and GAAP gross margin in the table below.




                                                                                                                                    Q1 2019        Q2 2019  Q3 2019   Q4 2019    Q1 2020     Q2 2020      Q3 2020

                                                                                                                                                                                                              ---


       
                ($ in 000's) - unaudited

    ---


       Service revenue total                                                                                                      $134,137        $134,789  $136,942   $140,292    $140,915     $140,990      $142,302

    ---

        Minus - Network operations expense including equity-based compensation and
         including depreciation and amortization expense                                                                             74,413          74,386    75,259     75,992      75,429       73,782        76,138

    ---


       
                GAAP Gross Profit (1)                                                                                          $59,724         $60,403   $61,683    $64,300     $65,486      $67,208       $66,164

    ---


       Plus  - Equity-based compensation - network operations expense                                                                  180             226       282        306         252          305           346

    ---


       Plus - Depreciation and amortization expense                                                                                 20,263          19,979    20,006     20,002      19,508       19,896        21,619

    ---


       
                Non-GAAP Gross Profit (2)                                                                                      $80,167         $80,608   $81,971    $84,608     $85,246      $87,409       $88,129

    ---


       
                GAAP Gross Margin (1)                                                                                            44.5%          44.8%    45.0%     45.8%      46.5%       47.7%        46.5%

    ---


       
                Non-GAAP Gross Margin (2)                                                                                        59.8%          59.8%    59.9%     60.3%      60.5%       62.0%        61.9%

    ---




              (1)              GAAP gross profit is defined as
                                  total service revenue less network
                                  operations expense, depreciation
                                  and amortization and equity based
                                  compensation included in network
                                  operations expense.  GAAP gross
                                  margin is defined as GAAP gross
                                  profit divided by total service
                                  revenue.



              (2)              Non-GAAP gross profit represents
                                  service revenue less network
                                  operations expense, excluding
                                  equity based compensation and
                                  amounts shown separately
                                  (depreciation and amortization
                                  expense). Non-GAAP gross margin
                                  is defined as non-GAAP gross
                                  profit divided by total service
                                  revenue.  Management believes that
                                  non-GAAP gross profit and non-
                                  GAAP gross margin are relevant
                                  metrics to provide to investors,
                                  as they are metrics that
                                  management uses to measure the
                                  margin and amount available to the
                                  Company after network service
                                  costs, in essence these are
                                  measures of the efficiency of the
                                  Company's network.

Gross and Net Leverage Ratios

Gross leverage ratio is defined as total debt divided by the trailing last 12 months EBITDA, as adjusted. Net leverage ratio is defined as total net debt (total debt minus cash and cash equivalents) divided by the trailing last 12 months EBITDA, as adjusted. Cogent's gross leverage ratio and net leverage ratio are shown below.



       
                ($ in 000's) - unaudited      As of June 30, 2020 As of September 30, 2020

    ---


       Cash and cash equivalents                             $417,026                  $393,293

    ---


       
                Debt

    ---


       Capital (finance) leases - current portion              14,734                    15,252

    ---


       Capital (finance) leases - long term                   189,044                   197,688

    ---


       Senior secured notes                                   445,000                   445,000

    ---


       Senior unsecured euro 2024 notes                       393,011                   410,365

    ---


       Note payable                                            12,831                    10,404

    ---


       Total debt                                           1,054,620                 1,078,709

    ---


       Total net debt                                         637,594                   685,416

    ---


       Trailing 12 months EBITDA, as adjusted                 207,563                   211,643

    ---


       Gross leverage ratio                                      5.08                      5.10

    ---


       Net leverage ratio                                        3.07                      3.24

    ---

Cogent's SEC filings are available online via the Investor Relations section of www.cogentco.com or on the Securities and Exchange Commission's website at www.sec.gov.


                                                                                                                          
              
                COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES


                                                                                                                                   
              
                CONDENSED CONSOLIDATED BALANCE SHEETS


                                                                                                                              
              
                AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019


                                                                                                                                     
              
                (IN THOUSANDS, EXCEPT SHARE DATA)




                                                                                                                                                                                                         September 30,                 December 31,
                                                                                                                                                                                                                  2020                          2019



                                                                                                                                                                                                          (Unaudited)



             
                Assets



             
                Current assets:



             Cash and cash equivalents                                                                                                                                                                                  $
        393,293               $
         399,422



             Accounts receivable, net of allowance for credit losses of $2,204 and $1,771, respectively                                                                                                                        42,053                       40,484



             Prepaid expenses and other current assets                                                                                                                                                                         40,007                       35,822




             Total current assets                                                                                                                                                                                             475,353                      475,728



             
                Property and equipment, net                                                                                                                                                                         421,251                      368,929



             
                Right-of-use leased assets                                                                                                                                                                           90,400                       73,460



             
                Deposits and other assets                                                                                                                                                                            13,910                       14,007




             Total assets                                                                                                                                                                                             $
        1,000,914               $
         932,124






             
                Liabilities and stockholders' equity



             
                Current liabilities:



             Accounts payable                                                                                                                                                                                            $
        11,983                $
         11,075



             Accrued and other current liabilities                                                                                                                                                                             47,714                       51,301



             Installment payment agreement, current portion, net of discounts of $245 and $350, respectively                                                                                                                    8,292                        9,063



             Current maturities, operating lease liabilities                                                                                                                                                                   12,006                       10,101



             Current maturities, finance lease obligations                                                                                                                                                                     15,252                        8,154




             Total current liabilities                                                                                                                                                                                         95,247                       89,694



             
                Senior secured 2022 notes, net of unamortized debt costs of $1,267 and $1,897,                                                                                                                      444,389                      444,088
      respectively and including premiums of $656 and $985, respectively



             
                Senior unsecured 2024 Euro notes, net of unamortized debt costs of $3,166 and                                                                                                                       406,034                      150,001
                                                                                                              $1,410, respectively and net of discounts of $1,164 and $0, respectively



             
                Senior unsecured 2021 notes, net of unamortized debt costs of $857                                                                                                                                                              188,368



             
                Operating lease liabilities, net of current maturities                                                                                                                                              101,447                       86,690



             
                Finance lease obligations, net of current maturities                                                                                                                                                197,688                      161,635



             
                Other long term liabilities                                                                                                                                                                          16,800                       15,327




             Total liabilities                                                                                                                                                                                              1,261,605                    1,135,803




             
                Commitments and contingencies:



             
                Stockholders' equity:



             Common stock, $0.001 par value; 75,000,000 shares authorized; 47,284,336 and                                                                                                                                          47                           47
      46,840,434 shares issued and outstanding, respectively



             Additional paid-in capital                                                                                                                                                                                       513,454                      493,178



             Accumulated other comprehensive income - foreign currency translation                                                                                                                                            (7,498)                    (12,326)



             Accumulated deficit                                                                                                                                                                                            (766,694)                   (684,578)




             Total stockholders' deficit                                                                                                                                                                                    (260,691)                   (203,679)




             
                Total liabilities and stockholders' deficit                                                                                                                                                 $
        1,000,914               $
         932,124


                                                                                                    
          
               COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES


                                                                                                  
          
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


                                                                                                
          
           FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 AND SEMPTEMBER 30, 2019


                                                                                                      
          
               (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)




                                                                                                                                                                                     Three Months                           Three Months
                                                                                                                                                                                              Ended                                  Ended
                                                                                                                                                                                       September 30, 2020                     September 30, 2019



                                                                                                                                                                                     (Unaudited)                            (Unaudited)



             
                Service revenue                                                                                                                                                                $
            142,302                      $
          136,942



             
                Operating expenses:



             Network operations (including $346 and $282 of equity-based compensation                                                                                                                               54,519                               55,253
      expense, respectively, exclusive of depreciation and amortization shown
      separately below)



             Selling, general, and administrative (including $6,176 and $4,515 of equity-based                                                                                                                      39,722                               35,971
      compensation expense, respectively)



             Depreciation and amortization                                                                                                                                                                          21,619                               20,006




             Total operating expenses                                                                                                                                                                              115,860                              111,230



             
                Loss on finance leases amendment                                                                                                                                                           (505)



             
                Gains on equipment transactions                                                                                                                                                               99                                   87




             
                Operating income                                                                                                                                                                          26,036                               25,799



             
                Interest expense                                                                                                                                                                        (15,760)                            (15,191)



             
                Unrealized foreign exchange (loss) gain on 2024 Euro Notes                                                                                                                              (17,315)                               6,162



             
                Interest income and other, net                                                                                                                                                               484                                2,185




             
                (Loss) income before income taxes                                                                                                                                                        (6,555)                              18,955



             
                Income tax benefit (provision)                                                                                                                                                             1,600                              (5,254)




             
                Net (loss) income                                                                                                                                                              $
            (4,955)                      $
          13,701






             
                Comprehensive (loss) income:



             Net (loss) income                                                                                                                                                                           $
            (4,955)                      $
          13,701



             Foreign currency translation adjustment                                                                                                                                                                 5,408                              (4,709)




             
                Comprehensive income                                                                                                                                                               $
            453                        $
          8,992






             
                Net (loss) income per common share:



             
                Basic net (loss) income per common share                                                                                                                                        $
            (0.11)                        $
          0.30



             
                Diluted net (loss) income per common share                                                                                                                                      $
            (0.11)                        $
          0.30



             
                Dividends declared per common share                                                                                                                                              $
            0.705                        $
          0.620





             
                Weighted-average common shares - basic                                                                                                                                                45,815,718                           45,438,656





             
                Weighted-average common shares - diluted                                                                                                                                              45,815,718                           46,019,691


                                                                                                 
           
              COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES


                                                                                               
           
              CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


                                                                                             
           
           FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019


                                                                                                   
           
              (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)




                                                                                                                                                                                 Nine Months                           Nine Months
                                                                                                                                                                                          Ended                                 Ended
                                                                                                                                                                                   September 30, 2020                    September 30, 2019



                                                                                                                                                                                 (Unaudited)                           (Unaudited)



             
                Service revenue                                                                                                                                                            $
           424,205                      $
           405,866



             
                Operating expenses:



             Network operations (including $903 and $688 of equity-based compensation                                                                                                                         164,326                               163,811
      expense, respectively, exclusive of depreciation and amortization shown
      separately below)



             Selling, general, and administrative (including $16,776 and $12,832 of equity-                                                                                                                   119,232                               110,396
      based compensation expense, respectively)



             Depreciation and amortization                                                                                                                                                                     61,022                                60,246




             Total operating expenses                                                                                                                                                                         344,580                               334,453



             
                Loss on finance lease amendments                                                                                                                                                      (423)



             
                Gains on equipment transactions                                                                                                                                                         343                                   808




             
                Operating income                                                                                                                                                                     79,545                                72,221



             
                Interest expense                                                                                                                                                                   (46,481)                             (42,243)



             
                Realized foreign exchange gain on issuance of 2024 Euro Notes                                                                                                                         2,547



             
                Unrealized (loss) gain on foreign exchange on 2024 Euro Notes                                                                                                                      (17,827)                                6,339



             
                Interest income and other, net                                                                                                                                                          430                                 5,588



             
                Loss on debt extinguishment and redemption- 2021 Notes                                                                                                                                (638)




             
                Income before income taxes                                                                                                                                                           17,576                                41,905



             
                Income tax provision                                                                                                                                                                (4,740)                             (11,851)




             
                Net income                                                                                                                                                                  $
           12,836                       $
           30,054






             
                Comprehensive income:



             Net income                                                                                                                                                                               $
           12,836                       $
           30,054



             Foreign currency translation adjustment                                                                                                                                                            4,828                               (4,748)




             
                Comprehensive income                                                                                                                                                        $
           17,664                       $
           25,306






             
                Net income per common share:



             
                Basic net income per common share                                                                                                                                             $
           0.28                         $
           0.66



             
                Diluted net income per common share                                                                                                                                           $
           0.28                         $
           0.65





             
                Dividends declared per common share                                                                                                                                          $
           2.045                        $
           1.800





             
                Weighted-average common shares - basic                                                                                                                                           45,818,677                            45,428,305





             
                Weighted-average common shares - diluted                                                                                                                                         46,598,870                            45,948,331


                                                
             
                COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES


                                                   
              
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                              
        
                FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019


                                                                   
              
                (IN THOUSANDS)




                                                  Three months                                                                       Three months
                                                           Ended                                                                              Ended
                                                    September 30, 2020                                                                 September 30, 2019



                                                  (Unaudited)                                                                        (Unaudited)


                   Cash flows from operating
                    activities:



     Net (loss) income                                                                  $
              (4,955)                                              $
       13,701


      Adjustments to reconcile net
       (loss) income to net cash
       provided by operating
       activities:


      Depreciation and
       amortization                                                                                   21,619                                                    20,006


      Amortization of debt costs,
       discounts and premiums                                                                            496                                                       486


      Equity-based compensation
       expense (net of amounts
       capitalized)                                                                                    6,522                                                     4,796


      Unrealized losses (gains) on
       foreign exchange                                                                               17,378                                                   (6,128)


      Gains -equipment
       transactions and other, net                                                                       406                                                       176


      Deferred income taxes                                                                          (2,153)                                                    4,454


      Changes in operating assets
       and liabilities:


      Accounts receivable                                                                            (1,009)                                                  (1,048)


      Prepaid expenses and other
       current assets                                                                                  (788)                                                  (1,315)


      Accounts payable, accrued
       liabilities and other long-
       term liabilities                                                                              (4,305)                                                  (3,738)


      Deposits and other assets                                                                        (231)                                                    2,053



      Net cash provided by
       operating activities                                                                           32,980                                                    33,443



                   Cash flows from investing
                    activities:


      Purchases of property and
       equipment                                                                                    (13,296)                                                 (12,051)



      Net cash used in investing
       activities                                                                                   (13,296)                                                 (12,051)



                   Cash flows from financing
                    activities:



     Dividends paid                                                                                (32,657)                                                 (28,565)


      Purchases of common stock                                                                        (270)


      Principal payments on
       installment payment
       agreement                                                                                     (2,727)                                                  (2,574)


      Principal payments of
       finance lease obligations                                                                     (9,509)                                                  (2,029)


      Proceeds from exercises of
       stock options                                                                                     186                                                       351



      Net cash (used in) financing
       activities                                                                                   (44,977)                                                 (32,817)



                   Effect of exchange rates
                    changes on cash                                                                    1,560                                                   (1,583)



                   Net decrease in cash and
                    cash equivalents                                                                (23,733)                                                 (13,008)


                   Cash and cash equivalents,
                    beginning of period                                                              417,026                                                   409,279



                   Cash and cash equivalents,
                    end of period                                                        $
              393,293                                              $
       396,271


                                                                                                  
        
              COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES


                                                                                                    
        
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                
        
         FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019


                                                                                                              
              
                (IN THOUSANDS)




                                                                                                                                                                Nine months                        Nine months
                                                                                                                                                                         Ended                              Ended
                                                                                                                                                                  September 30, 2020                 September 30, 2019



                                                                                                                                                                (Unaudited)                        (Unaudited)



            
                Cash flows from operating activities:



            Net income                                                                                                                                                               $
        12,836                       $
        30,054



            Adjustments to reconcile net income to net cash provided by operating activities:



            Depreciation and amortization                                                                                                                                                  61,022                             60,246



            Amortization of debt costs, discounts and premiums                                                                                                                              1,426                              1,328



            Equity-based compensation expense (net of amounts capitalized)                                                                                                                 17,679                             13,520



            Loss on debt extinguishment and redemption - 2021 Notes                                                                                                                           638



            Unrealized losses (gains) on foreign exchange                                                                                                                                  17,281                            (6,305)



            Realized foreign exchange gain on issuance of 2024 Notes                                                                                                                      (2,547)



            Gains - equipment transactions and other, net                                                                                                                                      80                              (131)



            Deferred income taxes                                                                                                                                                           2,100                              9,285



            Changes in operating assets and liabilities:



            Accounts receivable                                                                                                                                                           (1,102)                              (43)



            Prepaid expenses and other current assets                                                                                                                                     (3,253)                           (4,862)



            Accounts payable, accrued liabilities and other long-term liabilities                                                                                                         (2,783)                             1,350



            Deposits and other assets                                                                                                                                                       (628)                           (1,730)




            Net cash provided by operating activities                                                                                                                                     102,749                            102,712




            
                Cash flows from investing activities:



            Purchases of property and equipment                                                                                                                                          (40,092)                          (37,059)




            Net cash used in investing activities                                                                                                                                        (40,092)                          (37,059)




            
                Cash flows from financing activities:



            Dividends paid                                                                                                                                                               (94,952)                          (82,871)



            Purchases of common stock                                                                                                                                                       (270)



            Redemption and extinguishment of 2021 Notes                                                                                                                                 (189,225)


                                                                                                                                                                                           240,285                            152,128


            Net proceeds from issuance of senior unsecured 2024 Euro Notes - net of debt costs
      of $2,137 and $1,556, respectively



            Principal payments on installment payment agreement                                                                                                                           (7,855)                           (7,348)



            Principal payments of finance lease obligations                                                                                                                              (19,392)                           (7,035)



            Proceeds from exercises of stock options                                                                                                                                        1,175                              1,270




            Net cash (used in) provided by financing activities                                                                                                                          (70,234)                            56,144




            
                Effect of exchange rates changes on cash                                                                                                                           1,448                            (1,619)




            
                Net (decrease) increase in cash and cash equivalents                                                                                                             (6,129)                           120,178



            
                Cash and cash equivalents, beginning of period                                                                                                                   399,422                            276,093




            
                Cash and cash equivalents, end of period                                                                                                                   $
        393,293                      $
        396,271

Except for historical information and discussion contained herein, statements contained in this release constitute 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 "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including the impact of the COVID-19 pandemic and the related government policies; future economic instability in the global economy or a contraction of the capital markets which could affect spending on Internet services and our ability to engage in financing activities; the impact of changing foreign exchange rates (in particular the Euro to USD and Canadian dollar to USD exchange rates) on the translation of our non-USD denominated revenues, expenses, assets and liabilities; legal and operational difficulties in new markets; the imposition of a requirement that we contribute to the US Universal Service Fund on the basis of our Internet revenue; changes in government policy and/or regulation, including net neutrality rules by the United States Federal Communications Commission and in the area of data protection; increasing competition leading to lower prices for our services; our ability to attract new customers and to increase and maintain the volume of traffic on our network; the ability to maintain our Internet peering arrangements on favorable terms; our reliance on an equipment vendor, Cisco Systems Inc., and the potential for hardware or software problems associated with such equipment; the dependence of our network on the quality and dependability of third-party fiber providers; our ability to retain certain customers that comprise a significant portion of our revenue base; the management of network failures and/or disruptions; and outcomes in litigation as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Quarterly Report on Form 10-Q for the quarters ended September 30, 2020, June 30, 2020 and March 31, 2020 and our Annual Report on Form 10-K for the year ended December 31, 2019. Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.

View original content to download multimedia:http://www.prnewswire.com/news-releases/cogent-communications-reports-third-quarter-2020-results-and-increases-its-regular-quarterly-dividend-on-its-common-stock-by-0-025--301166728.html

SOURCE Cogent Communications Holdings, Inc.