Rackspace Hosting, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net revenue of $362,200,000 compared with $301,355,000 a year ago. Income from operations was $42,813,000 compared with $37,084,000 a year ago. Income before income taxes was $42,072,000 compared with $35,949,000 a year ago. Net income was $27,261,000 or $0.19 per diluted share compared with $23,180,000 or $0.17 per diluted share a year ago. Net cash provided by operating activities was $113,793,000 compared with $74,778,000 a year ago. Purchases of property and equipment were $105,541,000 compared with $64,621,000 a year ago. Adjusted EBITDA was $125,107,000 compared with $100,744,000 a year ago. Total capital expenditures were $125,399,000 compared with $82,316,000 a year ago. Return on assets was 8.2% compared with 8.8% a year ago. Adjusted free cash outflow was $1,217,000. Net revenue for the first quarter of 2013 was negatively impacted by currency exchange rates when compared to the previous quarter by $2.9 million and negatively impacted when compared to the first quarter of 2012 by $1.0 million. Consistent with prior periods, adjusted EBITDA were negatively impacted by a non-cash charge relating to data center operating leases. Return on capital was 15.1% in the first quarter compared to 15% in the first quarter of 2012. The company expects to deliver second quarter revenue in a range of $369 million to $375 million, representing sequential growth between 2% and 3.5%. In the near term, the company expects adjusted EBITDA margins to be more in the 30% ballpark compared to the 33% to 35% range the company has averaged over the past several years. For the full year of 2013, the company is forecasting to spend between $375 million to $445 million in total capital expenditures. The company expects the bulk of capital expenditures to be on customer gear, which continues to be predominantly success-based spending to support revenue growth.

2013 Annual Stockholders Meeting

Rackspace Hosting, Inc., Annual General Meeting, May 01, 2013., at 08:30 Central Daylight.