21Vianet Group, Inc. Reports First Quarter 2011 Financial Results
1Q11 Net Revenues Up 125.2% YOY to
1Q11 Adjusted EBITDA Up 246.8% YOY to
1Q11 Adjusted Net Profit Up 283.6% YOY to
Live Conference Call to be Held at
First Quarter 2011 Financial Highlights
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Net revenues increased by 125.2% to
RMB210.6 million (US$32.2 million ) fromRMB93.5 million in the prior year comparative period. -
Adjusted EBITDA increased by 246.8% to
RMB43.0 million (US$6.6 million ) fromRMB12.4 million in the prior year comparative period. Adjusted EBITDA is defined as EBITDA excluding share-based compensation expenses and changes in the fair value of contingent purchase consideration payable. - Adjusted EBITDA margin increased to 20.4% compared to 13.3% in the prior year comparative period. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of total net revenues.
-
Adjusted net profit increased by 283.6% to
RMB28.0 million (US$4.3 million ) fromRMB7.3 million in the prior year comparative period. Adjusted net profit is defined as net loss from continuing operations excluding share-based compensation expenses, amortization expenses of intangible assets derived from acquisitions, changes in the fair value of contingent purchase consideration payable and related deferred tax assets, and unrecognized tax benefits, tax incentive receipt and outside tax basis difference.
Mr.
"Furthermore, our customers' rapid expansion continues to drive the growth momentum of 21Vianet," continued Chairman Chen. "We believe our focus on delivering reliability, stability and speed for optimizing our customer network connections and improving their end consumers' user experience will build a strong foundation for 21Vianet's future growth."
Mr.
First Quarter 2011 Financial Results
REVENUES: Net revenues for the first quarter of 2011 increased by 125.2% to
GROSS PROFIT: For the first quarter of 2011, gross profit increased by 139.6% to
Adjusted gross profit, which excludes share-based compensation expenses of
OPERATING EXPENSES: Total operating expenses increased to
Sales and marketing expenses increased to
General and administrative expenses increased to
Research and development expenses increased to
Changes in the fair value of contingent purchase consideration payable was
Adjusted operating expenses, which excludes share-based compensation expenses and the changes in the fair value of contingent purchase consideration payable, increased to
ADJUSTED EBITDA: Adjusted EBITDA for the first quarter of 2011 increased by 246.8% to
NET PROFIT/LOSS: Net loss from continuing operations for the first quarter of 2011 was
Adjusted net profit for the first quarter of 2011 increased by 283.6% to
EARNING/LOSS PER SHARE: Basic and diluted losses per ordinary share for the first quarter of 2011 were both
BALANCE SHEET: As of
First Quarter 2011 Operational Highlights
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Monthly Recurring Revenues (MRR) per cabinet remained stable at
RMB8,500 per cabinet. -
Total cabinets under management rose to 6,146 as of
March 31, 2011 from 5,750 as ofDecember 31, 2010 , with 3,027 cabinets in the Company's self-built data centers and 3,119 cabinets in its partnered data centers. - Utilization rate remained stable at 79.1%.
- Churn rate was down to 0.74%, compared to 0.89% for the whole year of 2010. Top 20 customers' churn rate remained at 0%.
- The largest customer represented 3.8% of total net revenues.
Financial Outlook
For the second quarter of 2011, the Company expects net revenues to be in the range of
Conference Call
The Company will hold a conference call on
United States Toll Free: +1-866-405-2350
International: +1-718-354-1231
China Domestic: 400-1200712
Hong Kong: +852-2561-8854
Conference ID: 68002039
The replay will be accessible through
United States Toll Free: +1-866-214-5335
International: +1-718-354-1232
Conference ID: 68002039
A webcast of the conference call will be available through the Company's investor relations website at http://ir.21vianet.com.
Non-GAAP Disclosure
In evaluating its business, 21Vianet considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the
The non-GAAP financial measures is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Exchange Rate
This press release contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars for the quarter ended
About 21Vianet
21Vianet is the largest carrier-neutral Internet data center services provider in
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the second quarter of 2011 and quotations from management in this announcement, as well as 21Vianet's strategic and operational plans, contain forward-looking statements. 21Vianet may also make written or oral forward-looking statements in its reports filed with, or furnished to, the
1 Each ADS represents six ordinary shares.
2 Pro forma earnings per share has been adjusted to reflect the automatic conversion of the Series A, Series B and Series C preferred shares to ordinary shares. Adjusted earnings per share is a non-GAAP measure, calculated using adjusted net profit which excluded share-based compensation expense, amortization of intangible assets derived from acquisitions, change in the fair value of contingent purchase consideration payable and related deferred tax assets and outside tax basis difference as discussed above.
21VIANET GROUP, INC. | |||
CONSOLIDATED BALANCE SHEETS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||
As of December 31, 2010 |
As of March 31, 2011 |
||
RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | 83,256 | 295,085 | 45,063 |
Restricted cash | 4,441 | 3,784 | 578 |
Accounts receivable, net | 76,373 | 104,776 | 16,000 |
Prepaid expenses and other current assets | 14,369 | 19,957 | 3,049 |
Deferred tax assets | 2,055 | 2,277 | 348 |
Amount due from related parties | 13,463 | 7,376 | 1,126 |
Total current assets | 193,957 | 433,255 | 66,164 |
Non-current assets: | |||
Property and equipment, net | 197,015 | 221,699 | 33,856 |
Intangible assets, net | 157,086 | 149,254 | 22,793 |
Deferred tax assets | 7,358 | 15,585 | 2,380 |
Goodwill | 170,171 | 170,171 | 25,988 |
Total non-current assets | 531,630 | 556,709 | 85,017 |
Total assets | 725,587 | 989,964 | 151,181 |
Liabilities and Shareholders' Deficit | |||
Current liabilities: | |||
Short term bank borrowings | 35,000 | 55,000 | 8,399 |
Accounts payable | 49,792 | 57,617 | 8,799 |
Notes payable | 4,441 | 3,784 | 578 |
Accrued expenses and other payables | 30,962 | 41,255 | 6,300 |
Advances from customers | 17,316 | 14,738 | 2,251 |
Income tax payable | 3,545 | 3,206 | 490 |
Amounts due to related parties | 53,679 | 42,447 | 6,482 |
Current portion of capital lease obligations | 15,824 | 16,604 | 2,536 |
Total current liabilities | 210,559 | 234,651 | 35,835 |
Non-current liabilities: | |||
Amount due to a related party | 126,331 | 161,773 | 24,705 |
Non-current portion of capital lease obligations | 58,190 | 53,766 | 8,211 |
Unrecognized tax benefits | 5,575 | 10,318 | 1,576 |
Deferred tax liabilities | 37,949 | 36,147 | 5,520 |
Deferred government grant | 5,400 | 5,355 | 818 |
Total non-current liabilities | 233,445 | 267,359 | 40,830 |
Commitments and contingencies | |||
Mezzanine equity | |||
Series A contingently redeemable convertible preferred shares | 355,680 | 355,680 | 54,316 |
Series B contingently redeemable convertible preferred shares | 635,430 | 635,430 | 97,038 |
Series C contingently redeemable convertible preferred shares | -- | 230,220 | 35,157 |
Total mezzanine equity | 991,110 | 1,221,330 | 186,511 |
Shareholders' deficit | |||
Ordinary shares | 7 | 7 | 1 |
Additional paid-in capital | 512,225 | 597,967 | 91,316 |
Accumulated other comprehensive income | 1,474 | 410 | 62 |
Statutory reserves | 14,143 | 14,143 | 2,160 |
Accumulated deficit | (1,357,747) | (1,471,422) | (224,703) |
Total 21Vianet Group, Inc. shareholders' deficit | (829,898) | (859,715) | (131,288) |
Non-controlling interest | 120,371 | 126,339 | 19,293 |
Total shareholders' deficit | (709,527) | (733,376) | (111,995) |
Total liabilities, mezzanine equity and shareholders' deficit | 725,587 | 989,964 | 151,181 |
21VIANET GROUP, INC. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||
Three months ended March 31, | |||
2010 | 2011 | ||
RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||
Hosting and related services | 80,254 | 128,888 | 19,683 |
Managed network services | 13,221 | 81,708 | 12,477 |
Total net revenues | 93,475 | 210,596 | 32,160 |
Cost of revenues | (70,516) | (155,521) | (23,750) |
Gross profit | 22,959 | 55,075 | 8,410 |
Operating expenses: | |||
Sales and marketing expenses | (7,353) | (15,996) | (2,443) |
General and administrative expenses | (6,753) | (15,979) | (2,440) |
Research and development costs | (2,454) | (7,155) | (1,093) |
Changes in fair value of contingent purchase consideration payable | -- | (50,032) | (7,640) |
Total operating expenses | (16,560) | (89,162) | (13,616) |
Operating profit (loss) | 6,399 | (34,087) | (5,206) |
Interest income | 87 | 172 | 26 |
Interest expenses | (529) | (983) | (150) |
Other income | 129 | 702 | 107 |
Other expenses | (6) | (110) | (17) |
Foreign exchange gain | 34 | 700 | 107 |
Profit (loss) from continuing operations before income taxes | 6,114 | (33,606) | (5,133) |
Income tax benefit (expense) | (10,161) | 3,069 | 469 |
Net loss from continuing operations | (4,047) | (30,537) | (4,664) |
Loss from discontinued operations | (12,952) | -- | -- |
Net loss | (16,999) | (30,537) | (4,664) |
Net income attributable to non-controlling interest | (427) | (5,968) | (911) |
Net loss attributable to the Company's ordinary shareholders | (17,426) | (36,505) | (5,575) |
Loss per share: | |||
Basic | (0.24) | (0.38) | (0.06) |
Diluted | (0.24) | (0.38) | (0.06) |
Shares used in loss per share computation: | |||
Basic | 71,526,320 | 96,352,410 | 96,352,410 |
Diluted | 71,526,320 | 96,352,410 | 96,352,410 |
Pro forma loss per share: | |||
Basic | (0.10) | (0.17) | (0.03) |
Diluted | (0.10) | (0.17) | (0.03) |
Weighted average number of ordinary shares used in pro forma earnings per share computation: |
|||
Basic | 182,492,500 | 211,895,646 | 211,895,646 |
Diluted | 182,492,500 | 211,895,646 | 211,895,646 |
21VIANET GROUP, INC. | |||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||
Three months ended March 31, | |||
2010 | 2011 | ||
RMB | RMB | US$ | |
Gross profit | 22,959 | 55,075 | 8,411 |
Plus: share-based compensation expenses | -- | 686 | 105 |
Plus: amortization expenses of intangible assets derived from acquisitions | 537 | 7,461 | 1,139 |
Adjusted gross profit | 23,496 | 63,222 | 9,655 |
Adjusted gross margin | 25.10% | 30.00% | 30.00% |
Operating expenses | (16,560) | (89,162) | (13,616) |
Plus: share-based compensation expenses | -- | 7,886 | 1,204 |
Plus: changes in the fair value of contingent purchase consideration payable | -- | 50,032 | 7,640 |
Adjusted operating expenses | (16,560) | (31,244) | (4,772) |
Net loss from continuing operations | (4,047) | (30,537) | (4,663) |
Plus: share-based compensation expenses | -- | 8,572 | 1,309 |
Plus: amortization expenses of intangible assets derived from acquisitions | 537 | 7,461 | 1,139 |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax asset |
-- | 42,527 | 6,494 |
Plus: outside tax basis difference | 10,846 | -- | -- |
Adjusted net profit from continuing operations | 7,336 | 28,023 | 4,279 |
Adjusted net margin | 7.80% | 13.30% | 13.30% |
Operating (loss) profit | 6,399 | (34,087) | (5,205) |
Plus: depreciation | 4,925 | 10,559 | 1,612 |
Plus: amortization | 1,104 | 7,933 | 1,211 |
Plus: share-based compensation expenses | -- | 8,572 | 1,309 |
Plus: changes in the fair value of contingent purchase consideration payable | -- | 50,032 | 7,640 |
Adjusted EBITDA | 12,428 | 43,009 | 6,567 |
Adjusted EBITDA margin | 13.30% | 20.40% | 20.40% |
Adjusted net profit from continuing operations | 7,336 | 28,023 | 4,279 |
Less: Net income attributable to non-controlling interest | (427) | (5,968) | (911) |
Adjusted net profit attributable to the Company's ordinary shareholders | 6,909 | 22,055 | 3,368 |
Adjusted earnings per share: | |||
Basic | 0.10 | 0.23 | 0.03 |
Diluted | 0.10 | 0.18 | 0.03 |
Shares used in adjusted earnings per share computation: | |||
Basic | 71,526,320 | 96,352,410 | 96,352,410 |
Diluted | 71,526,320 | 120,616,316 | 120,616,316 |
Pro forma adjusted earnings per share: | |||
Basic | 0.04 | 0.10 | 0.02 |
Diluted | 0.04 | 0.09 | 0.01 |
Weighted average number of ordinary shares used in pro forma earnings per share computation: |
|||
Basic | 182,492,500 | 211,895,646 | 211,895,646 |
Diluted | 182,492,500 | 236,159,552 | 236,159,552 |
CONTACT: Investor Relations Contact:Source: 21VianetICR, LLC Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com
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