21Vianet Group, Inc. Reports Second Quarter 2011 Financial Results
2Q11 Net Revenues Up 104.6% YOY to
2Q11 Adjusted EBITDA Up 195.0% YOY to
2Q11 Adjusted Net Profit Up 229.5% YOY to
Live Conference Call to be Held at
Second Quarter 2011 Financial Highlights
-
Net revenues increased by 104.6% to
RMB230.4 million (US$35.6 million ) fromRMB112.6 million in the prior year comparative period. -
Adjusted EBITDA increased by 195.0% to
RMB47.2 million (US$7.3 million ) fromRMB16.0 million in the prior year comparative period.1 - Adjusted EBITDA margin increased to 20.5% from 14.2% in the prior year comparative period.2
-
Adjusted net profit increased by 229.5% to
RMB34.0 million (US$5.3 million ) fromRMB10.3 million in the prior year comparative period.3
Mr.
"In addition, we believe our continued improvement in operational efficiencies and our marketing strategy will result in accelerated growth in the managed network services business in the second half of 2011. Customers continue to demand the enhanced data transmission capabilities that 21Vianet provides through increased reliability, stability and speed in their network connections. As competition intensifies throughout
Mr.
1 Adjusted EBITDA is non-GAAP financial measure, which is defined as EBITDA excluding share-based compensation expenses and changes in the fair value of contingent purchase consideration payable. | |
2 Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of total net revenues. | |
3 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 reversal of unrecognized tax benefits and outside tax basis difference. |
Second Quarter 2011 Financial Results
REVENUES: Net revenues for the second quarter of 2011 increased by 104.6% to
GROSS PROFIT: For the second quarter of 2011, gross profit increased by 119.7% to
Adjusted gross profit, which excludes share-based compensation expense 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
Change in the fair value of contingent purchase consideration payable was
Adjusted operating expenses, which excludes share-based compensation expense and the changes in the fair value of contingent purchase consideration payable, increased to
ADJUSTED EBITDA: Adjusted EBITDA for the second quarter of 2011 increased by 195.0% to
NET PROFIT/LOSS: Net loss from continuing operations for the second quarter of 2011 was
Adjusted net profit for the second quarter of 2011 increased by 229.5% to
EARNING/LOSS PER SHARE: Basic and diluted loss per ordinary share for the second quarter of 2011 were
BALANCE SHEET: As of
Second Quarter 2011 Operational Highlights
-
Monthly Recurring Revenues (MRR) per cabinet remained stable at
RMB8,500 per cabinet from the first quarter of 2011. -
Total cabinets under management increased to 6,682 as of
June 30, 2011 from 6,146 as ofMarch 31, 2011 , with 3,289 cabinets in the Company's self-built data centers and 3,393 cabinets in its partnered data centers. - Utilization rate increased to 80.7% in the second quarter 2011 from 79.1% in the first quarter of 2011.
- Churn rate remained stable at 0.83% from 0.74% in the first quarter of 2011. Top 20 customers' churn rate remained at 0%.
- The largest customer represented 3.5% of total net revenues.
Six Months Ended
For the six months ended
_____________________________________________________ | |
4 Due to the Company's IPO on April 21, 2011, the diluted shares used in adjusted earnings per share computation represented the weighted average number of the Company's ordinary shares plus the granted options as incremental shares. |
Financial Outlook
For the third quarter of 2011, the Company expects net revenues to be in the range of
Conference Call
The Company will hold a conference call on
International: | +1-718-354-1231 |
China Domestic: | 400-1200712 |
Hong Kong: | +852-2561-8854 |
Conference ID: | 82913287 |
The replay will be accessible through
United States Toll Free: | +1-866-214-5335 |
International: | +1-718-354-1232 |
Conference ID: | 82913287 |
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 Group, Inc. 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 third 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
21VIANET GROUP, INC. | |||
CONSOLIDATED BALANCE SHEETS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||
As of | As of | ||
December 31, 2010 | June 30, 2011 | ||
RMB | RMB | US$ | |
(Audited) | (Unaudited) | (Unaudited) | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | 83,256 | 1,641,754 | 254,004 |
Restricted cash | 4,441 | 2,541 | 393 |
Accounts receivable, net | 76,373 | 114,566 | 17,725 |
Prepaid expenses and other current assets | 14,369 | 16,406 | 2,535 |
Deferred tax assets | 2,055 | 2,864 | 443 |
Amount due from related parties | 13,463 | 4,296 | 665 |
Total current assets | 193,957 | 1,782,427 | 275,765 |
Non-current assets: | |||
Property and equipment, net | 197,015 | 266,919 | 41,296 |
Intangible assets, net | 157,086 | 142,296 | 22,015 |
Deferred tax assets | 7,358 | 22,494 | 3,480 |
Goodwill | 170,171 | 170,171 | 26,328 |
Total non-current assets | 531,630 | 601,880 | 93,119 |
Total assets | 725,587 | 2,384,307 | 368,884 |
Liabilities and Shareholders' (Deficit) Equity | |||
Current liabilities: | |||
Short term bank borrowings | 35,000 | 65,000 | 10,056 |
Accounts payable | 49,792 | 62,730 | 9,705 |
Notes payable | 4,441 | 2,541 | 393 |
Accrued expenses and other payables | 30,962 | 52,422 | 8,110 |
Advances from customers | 17,316 | 19,689 | 3,046 |
Income tax payable | 3,545 | 1,357 | 210 |
Amounts due to related parties | 53,679 | 55,865 | 8,643 |
Current portion of capital lease obligations | 15,824 | 17,399 | 2,692 |
Total current liabilities | 210,559 | 277,003 | 42,855 |
Non-current liabilities: | |||
Amounts due to related parties | 126,331 | 209,842 | 32,466 |
Non-current portion of capital lease obligations | 58,190 | 49,255 | 7,620 |
Unrecognized tax benefits | 5,575 | 14,582 | 2,256 |
Deferred tax liabilities | 37,949 | 34,518 | 5,340 |
Deferred government grant | 5,400 | 6,310 | 976 |
Total non-current liabilities | 233,445 | 314,507 | 48,658 |
Commitments and contingencies | |||
Mezzanine equity | 991,110 | -- | -- |
Shareholders' (deficit) equity | |||
Ordinary shares | 7 | 22 | 3 |
Additional paid-in capital | 512,225 | 3,161,304 | 489,101 |
Accumulated other comprehensive income (loss) | 1,474 | (14,837) | (2,296) |
Statutory reserves | 14,143 | 14,143 | 2,188 |
Accumulated deficit | (1,357,747) | (1,500,974) | (232,224) |
Total 21Vianet Group, Inc. shareholders' (deficit) equity | (829,898) | 1,659,658 | 256,772 |
Non-controlling interest | 120,371 | 133,139 | 20,599 |
Total shareholders' (deficit) equity | (709,527) | 1,792,797 | 277,371 |
Total liabilities, mezzanine equity and shareholders' (deficit) equity | 725,587 | 2,384,307 | 368,884 |
21VIANET GROUP, INC. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||
Three months ended | Six months ended June 30 | ||||||
June 30, 2010 | March 31, 2011 | June 30, 2011 | 2010 | 2011 | |||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||||||
Hosting and related services | 90,905 | 128,888 | 145,663 | 22,536 | 171,159 | 274,551 | 42,477 |
Managed network services | 21,710 | 81,708 | 84,748 | 13,112 | 34,931 | 166,456 | 25,753 |
Total net revenues | 112,615 | 210,596 | 230,411 | 35,648 | 206,090 | 441,007 | 68,230 |
Cost of revenues | (84,463) | (155,521) | (168,557) | (26,078) | (154,979) | (324,078) | (50,140) |
Gross profit | 28,152 | 55,075 | 61,854 | 9,570 | 51,111 | 116,929 | 18,090 |
Operating expenses | -- | ||||||
Sales and marketing | (7,048) | (15,996) | (18,537) | (2,868) | (14,401) | (34,533) | (5,343) |
General and administrative | (6,933) | (15,979) | (17,886) | (2,767) | (13,686) | (33,865) | (5,239) |
Research and development | (2,971) | (7,155) | (8,086) | (1,251) | (5,425) | (15,241) | (2,358) |
Changes in the fair value of contingent purchase consideration payable | -- | (50,032) | (48,069) | (7,437) | -- | (98,101) | (15,178) |
Total operating expenses | (16,952) | (89,162) | (92,578) | (14,323) | (33,512) | (181,740) | (28,118) |
Operating profit (loss) | 11,200 | (34,087) | (30,724) | (4,753) | 17,599 | (64,811) | (10,028) |
Interest income | 70 | 172 | 3,368 | 521 | 157 | 3,540 | 548 |
Interest expense | (609) | (983) | (1,469) | (227) | (1,138) | (2,452) | (379) |
Other income | 290 | 702 | 244 | 38 | 419 | 946 | 146 |
Other expense | (497) | (110) | (101) | (16) | (503) | (211) | (33) |
Foreign exchange gain | 634 | 700 | 1,118 | 173 | 668 | 1,818 | 281 |
Profit (loss) from continuing operations before income taxes | 11,088 | (33,606) | (27,564) | (4,264) | 17,202 | (61,170) | (9,465) |
Income tax (expense) benefit | (5,293) | 3,069 | 4,812 | 744 | (15,454) | 7,881 | 1,219 |
Net loss from continuing operations | 5,795 | (30,537) | (22,752) | (3,520) | 1,748 | (53,289) | (8,246) |
Loss from discontinued operations | -- | -- | -- | -- | (12,952) | -- | -- |
Net loss | 5,795 | (30,537) | (22,752) | (3,520) | (11,204) | (53,289) | (8,246) |
Net income attributable to non-controlling interest | (493) | (5,968) | (6,800) | (1,052) | (920) | (12,768) | (1,975) |
Net loss attributable to the Company's ordinary shareholders | 5,302 | (36,505) | (29,552) | (4,572) | (12,124) | (66,057) | (10,221) |
Loss per share: | |||||||
Basic | 0.07 | (0.38) | (0.11) | (0.02) | (0.17) | (0.35) | (0.05) |
Diluted | 0.07 | (0.38) | (0.11) | (0.02) | (0.17) | (0.35) | (0.05) |
Shares used in loss per share computation: | |||||||
Basic | 71,526,320 | 96,352,410 | 278,713,982 | 278,713,982 | 71,526,320 | 187,533,196 | 187,533,196 |
Diluted | 71,526,320 | 96,352,410 | 278,713,982 | 278,713,982 | 71,526,320 | 187,533,196 | 187,533,196 |
21VIANET GROUP, INC. | |||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||
Three months ended | Six months ended June 30 | ||||||
June 30, 2010 | March 31, 2011 | June 30, 2011 | 2010 | 2011 | |||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
Gross profit | 28,152 | 55,075 | 61,854 | 9,570 | 51,111 | 116,929 | 18,090 |
Plus: share-based compensation expense | -- | 686 | 537 | 83 | -- | 1,223 | 189 |
Plus: amortization of intangible assets derived from acquisitions | 501 | 7,461 | 6,842 | 1,059 | 1,038 | 14,303 | 2,213 |
Adjusted gross profit | 28,653 | 63,222 | 69,233 | 10,712 | 52,149 | 132,455 | 20,492 |
Adjusted gross margin | 25.44% | 30.00% | 30.05% | 30.05% | 25.30% | 30.03% | 30.03% |
Operating expenses | (16,952) | (89,162) | (92,578) | (14,323) | (33,512) | (181,740) | (28,118) |
Plus: share-based compensation expense | -- | 7,886 | 8,516 | 1,318 | -- | 16,402 | 2,538 |
Plus: changes in the fair value of contingent purchase consideration payable | -- | 50,032 | 48,069 | 7,437 | -- | 98,101 | 15,178 |
Adjusted operating expenses | (16,952) | (31,244) | (35,993) | (5,568) | (33,512) | (67,237) | (10,402) |
Net loss from continuing operations | 5,795 | (30,537) | (22,752) | (3,520) | 1,748 | (53,289) | (8,246) |
Plus: share-based compensation expense | -- | 8,572 | 9,053 | 1,401 | -- | 17,625 | 2,727 |
Plus: amortization of intangible assets derived from acquisitions | 501 | 7,461 | 6,842 | 1,059 | 1,038 | 14,303 | 2,213 |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax asset | -- | 42,527 | 40,859 | 6,321 | -- | 83,386 | 12,901 |
Plus: reversal of unrecognized tax benefits and outside tax basis difference | 4,023 | -- | -- | -- | 14,869 | -- | -- |
Adjusted net profit from continuing operations | 10,319 | 28,023 | 34,002 | 5,261 | 17,655 | 62,025 | 9,595 |
Adjusted net margin | 9.2% | 13.3% | 14.8% | 14.8% | 8.6% | 14.1% | 14.1% |
Operating (loss) profit | 11,200 | (34,087) | (30,724) | (4,753) | 17,599 | (64,811) | (10,028) |
Plus: depreciation | 3,642 | 10,559 | 13,520 | 2,092 | 8,567 | 24,079 | 3,725 |
Plus: amortization | 1,145 | 7,933 | 7,241 | 1,120 | 2,249 | 15,174 | 2,348 |
Plus: share-based compensation expense | -- | 8,572 | 9,053 | 1,401 | -- | 17,625 | 2,727 |
Plus: changes in the fair value of contingent purchase consideration payable | -- | 50,032 | 48,069 | 7,437 | -- | 98,101 | 15,178 |
Adjusted EBITDA | 15,987 | 43,009 | 47,159 | 7,297 | 28,415 | 90,168 | 13,950 |
Adjusted EBITDA margin | 14.2% | 20.4% | 20.5% | 20.5% | 13.8% | 20.4% | 20.4% |
Adjusted net profit from continuing operations | 10,319 | 28,023 | 34,002 | 5,261 | 17,655 | 62,025 | 9,595 |
Less: Net income attributable to non-controlling interest | (493) | (5,968) | (6,800) | (1,052) | (920) | (12,768) | (1,975) |
Adjusted net profit attributable to the Company's ordinary shareholders | 9,826 | 22,055 | 27,202 | 4,209 | 16,735 | 49,257 | 7,620 |
Adjusted earnings per share: | |||||||
Basic | 0.14 | 0.23 | 0.10 | 0.02 | 0.23 | 0.26 | 0.04 |
Diluted | 0.14 | 0.18 | 0.09 | 0.01 | 0.23 | 0.24 | 0.04 |
Shares used in adjusted earnings per share computation: | |||||||
Basic* | 71,526,320 | 96,352,410 | 278,713,982 | 278,713,982 | 71,526,320 | 187,533,196 | 187,533,196 |
Diluted** | 71,526,320 | 120,616,316 | 297,880,448 | 297,880,448 | 71,526,320 | 205,215,623 | 205,215,623 |
* Basic shares used in adjusted earnings per share computation represented the weighted average number of the Company's ordinary shares. | |||||||
** Diluted shares used in adjusted earnings per share computation represented the weighted average number of the Company's ordinary shares plus the granted options as incremental shares. |
CONTACT: Investor Relations Contact:Source: 21VianetICR, LLC Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com
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