November 24, 2015

21Vianet Group, Inc. Reports Third Quarter 2015 Unaudited Financial Results

2015-11-24 00:00:00.0

3Q15 Net Revenues Up 18.7% YOY to RMB924.1 Million

Live Conference Call to be Held at 8:00 PM U.S. Eastern Time, November 24, 2015

BEIJING, Nov. 24, 2015 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a leading carrier-neutral internet data center services provider in China, today announced its unaudited financial results for the third quarter of 2015. The Company will hold a conference call at 8:00 p.m. Eastern Time on November 24, 2015. Dial-in details are provided at the end of the release.

Third Quarter 2015 Financial Highlights

  • Net revenues increased by 18.7% to RMB924.1 million (US$145.4 million) from RMB778.5 million in the comparative period in 2014.

Mr. Steve Zhang, Chief Executive Officer of the Company, stated, "We are pleased with our top-line growth in the third quarter, which was driven by an increase in billable cabinets and additional revenue contribution from the Microsoft cloud business. Through our partnership with IBM, we gained a major deal with BlueMix in October to provide comprehensive datacenter services through 2018. In addition, we are focusing on restructuring our company into different business units in order to better serve the evolving and increasingly specialized market segments. We believe this greater level of autonomy will allow the various units to specialize and optimize in a way to further improve scale, profitability and operating efficiencies. As we expand our datacenter footprint, and leverage our strong partnerships with global tech companies, we remain confident in our ability to scale our business both financially and operationally."

Mr. Terry Wang, Chief Financial Officer of the Company, commented, "The third quarter witnessed steady top-line growth with revenues increasing 18.7% year over year, which came in above the mid-point of our revenue guidance, despite the ongoing decline of bandwidth pricing in the market. We deployed nearly 600 cabinets in the third quarter, and will accelerate deployment as we close out 2015. We also further increased our data center utilization rate to 71.8% from 67.5% in the preceding quarter, while improving our already low hosting churn rate to 0.26% from 0.37%. On the other hand, EBITDA came in softer than expected, due to the higher spending on telecommunication costs and some lower margin equipment sales to certain broadband retail customers. We continue to face certain challenges in this market, but we are confident that as we restructure our business and invest in growth opportunities, we can reignite growth and solidify our position as a leading internet infrastructure services provider."

Third Quarter 2015 Financial Results

REVENUES: Net revenues for the third quarter of 2015 increased by 18.7% to RMB924.1 million (US$145.4 million) from RMB778.5 million in the comparative period in 2014, primarily driven by the year-over-year growth in the IDC business, elevated demand for the Company's cloud enabler services, as well as the contribution from Dermot Entities that the Company acquired in August, 2014. The increase in net revenues was partly offset by the continued softness in managed network services.

Net revenues from hosting and related services increased by 35.6% to RMB695.8 million (US$109.5 million) in the third quarter of 2015 from RMB513.2 million in the comparative period in 2014, primarily due to the increase in the total number of billable cabinets under management and strong growth in the Company's cloud services. Net revenues from managed network services were RMB228.3 million (US$35.9 million) in the third quarter of 2015, compared with RMB265.3 million in the comparative period in 2014, primarily due to the continued decline of bandwidth selling prices and losses of certain customers.

GROSS PROFIT: Gross profit for the third quarter of 2015 was RMB200.3 million (US$31.5 million), compared with RMB230.9 million in the comparative period in 2014. Gross margin for the third quarter of 2015 was 21.7%, compared with 29.7% in the comparative period in 2014. The decrease in gross margin was primarily due to higher spending on telecommunication services, lower selling bandwidth prices and some lower margin equipment sales to broadband retail customers.

Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, was RMB240.5 million (US$37.8 million), compared with RMB264.5 million in the comparative period in 2014. Adjusted gross margin was 26.0% in the third quarter of 2015, compared with 34.0% in the comparative period in 2014.

OPERATING EXPENSES: Total operating expenses increased to RMB263.9 million (US$41.5 million) from RMB142.9 million in the comparative period in 2014. Adjusted operating expenses, which exclude share-based compensation expenses and the changes in the fair value of contingent purchase consideration payable, increased to RMB230.9 million (US$36.3 million) from RMB198.4 million in the comparative period in 2014. As a percentage of net revenue, adjusted operating expenses were 25.0%, compared with 25.5% in the comparative period in 2014 and 24.2% in the second quarter of 2015.

Sales and marketing expenses increased by 3.8% to RMB89.2 million (US$14.0 million) from RMB85.9 million in the comparative period in 2014, primarily due to higher service fees, which were mostly offset by lower labor costs as the Company outsourced some functions to more cost-effective service providers.

General and administrative expenses increased by 53.5% to RMB138.8 million (US$21.8 million) from RMB90.4 million in the comparative period in 2014, primarily due to expenses associated with previously issued employee stock options and increased headcount associated with the growth in the Company's overall business.

Research and development expenses increased by 11.9% to RMB35.2 million (US$5.5 million) from RMB31.4 million in the comparative period in 2014, which reflected the Company's efforts to further strengthen its research and development capabilities and expand its cloud computing and CDN service offerings.

Change in the fair value of contingent purchase consideration payable was a loss of RMB0.7 million (US$0.1 million) in the third quarter of 2015, compared with a gain of RMB64.9 million in the comparative period in 2014.

ADJUSTED EBITDA: Adjusted EBITDA for the third quarter of 2015 was RMB122.0 million (US$19.2 million), compared with RMB153.9 million in the comparative period in 2014. Adjusted EBITDA margin for the quarter was 13.2% compared with 19.8% in the comparative period in 2014 and 17.2% in the second quarter of 2015. Adjusted EBITDA in the third quarter of 2015 excludes share-based compensation expenses of RMB33.7 million (US$5.3 million) and changes in the fair value of contingent purchase consideration payable of RMB0.7 million (US$0.1 million).

NET PROFIT/LOSS: Net loss for the third quarter of 2015 was RMB57.9 million (US$9.1 million), compared with a net income of RMB37.9 million in the comparative period in 2014.

Adjusted net profit for the third quarter of 2015 was RMB15.4 million (US$2.4 million) compared with an adjusted net profit of RMB16.0 million in the comparative period in 2014. Adjusted net profit in the third quarter of 2015 excludes share-based compensation expenses of RMB33.7 million (US$5.3 million), amortization of intangible assets derived from acquisitions of RMB38.9 million (US$6.1 million), changes in the fair value of contingent purchase consideration payable of RMB0.7 million (US$0.1 million) in the aggregate. Adjusted net margin was 1.7%, compared with 2.1% in the comparative period in 2014 and negative 1.8% in the second quarter of 2015.

EARNING/LOSS PER SHARE: Diluted loss per ordinary share for the third quarter of 2015 was RMB0.12, which represents the equivalent of RMB0.72 (US$0.11) per American Depositary Share ("ADS"). Each ADS represents six ordinary shares. Adjusted diluted earnings per share for the third quarter of 2015 was RMB0.02, which represents the equivalent of RMB0.12 (US$0.02) per ADS. Adjusted earnings per share is calculated using adjusted net profit as discussed above divided by the weighted average number of shares.

As of September 30, 2015, the Company had a total of 522.5 million ordinary shares outstanding, or the equivalent of 87.1 million ADSs.

BALANCE SHEET: As of September 30, 2015, the Company's cash and cash equivalents and short-term investment were RMB1.9 billion (US$296.1 million).

Third Quarter 2015 Operational Highlights

  • Monthly Recurring Revenues ("MRR") per cabinet was RMB9,900 in the third quarter of 2015, compared with RMB9,872 in the second quarter of 2015.
  • Total cabinets under management increased to 22,827 as of September 30, 2015 from 22,238 as of June 30, 2015, with 15,400 cabinets in the Company's self-built data centers and 7,427 cabinets in its partnered data centers.
  • Utilization rate was 71.8% in the third quarter of 2015, compared with 67.5% in the second quarter of 2015.
  • Hosting churn rate, which is based on the Company's core IDC business, was 0.26% in the third quarter of 2015, compared with 0.37% in the second quarter of 2015.

Recent Developments

On September 23, 2015, at the 8th US-China Internet Industry Forum, the Company, Unisplendour Corporation Limited (UNIS) and Microsoft signed an agreement to provide customized hybrid cloud computing solutions and related services to Chinese users. The three parties showed their cooperative accomplishments and innovations at Microsoft's Ignite China Conference, which marked a new milestone in their business developments and cooperation.

On October 14, 2015, the Company signed an additional partnership agreement with IBM for the Bluemix China landing project. Under the terms of the agreement, the Company will provide infrastructure support and operational services to IBM for Bluemix's entry into the China market.

On October 19, 2015, the Company's board of directors appointed Mr. Steve Zhang as the Chief Executive Officer of the Company. Mr. Zhang replaces Mr. Josh Chen, founder of the Company, who continues to serve as the Executive Chairman of the Board.

Financial Outlook

For the fourth quarter of 2015, the Company expects net revenues to be in the range of RMB960 million to RMB1.0 billion, representing approximately 15% year-over-year growth at the mid-point. Adjusted EBITDA is expected to be in the range of RMB100 million to RMB120 million, representing approximately 31% year-over-year decline at the mid-point.

For the full year 2015, the Company now expects net revenues to be in the range of RMB3.61 billion to RMB3.65 billion (revised from prior guidance of RMB3.58 billion to RMB3.68 billion), representing approximately 26% growth over 2014 at the mid-point. Adjusted EBITDA for the full year 2015 is expected to be in the range of RMB538 million to RMB558 million (revised from prior guidance of RMB620 million to RMB660 million), representing approximately 2% decline over 2014 at the mid-point. These forecasts reflect the Company's current and preliminary view, which may be subject to change.

Conference Call

The Company will hold a conference call on Tuesday, November 24, 2015 at 8:00 pm Eastern Time, or Wednesday, November 25, 2015 at 9:00 am Beijing Time to discuss the financial results.

Participants may access the call by dialing the following numbers:

United States: +1-845-675-0438
International Toll Free: +1-855-500-8701
China Domestic: 400-1200654
Hong Kong:  +852-3018-6776
Conference ID:  # 69806683

The replay will be accessible through December 2, 2015 by dialing the following numbers:

United States Toll Free:  +1-855-452-5696
International:  +61-2-90034211 
Conference ID:  # 69806683

A live and archived webcast of the conference call will be available through the Company's investor relation 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 SEC as supplemental measure to review and assess its operating performance: adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted net profit, adjusted net margin, adjusted EBITDA, adjusted EBITDA margin, adjusted basic earnings per share, adjusted diluted earnings per share, adjusted basic earnings per ADS and adjusted diluted earnings per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

The non-GAAP financial measures are 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 announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.3556 to US$1.00, the noon buying rate in effect on September 30, 2015 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

About 21Vianet

21Vianet Group, Inc. is a leading carrier-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, managed network services, cloud services, content delivery network services, last-mile wired broadband services and business VPN services, improving the reliability, security and speed of its customers' Internet infrastructure. Customers may locate their servers and networking equipment in 21Vianet's data centers and connect to China's Internet backbone through 21Vianet's extensive fiber optic network. In addition, 21Vianet's proprietary smart routing technology enables customers' data to be delivered across the Internet in a faster and more reliable manner. 21Vianet operates in more than 30 cities throughout China, servicing a diversified and loyal base of more than 2,000 hosting enterprise customers that span numerous industries ranging from Internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises

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 and full year of 2015 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 U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 21Vianet's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 21Vianet's goals and strategies; 21Vianet's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, 21Vianet's services; 21Vianet's expectations regarding keeping and strengthening its relationships with customers; 21Vianet's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where 21Vianet provides solutions and services. Further information regarding these and other risks is included in 21Vianet's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and 21Vianet undertakes no duty to update such information, except as required under applicable law.

21VIANET GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
 
 As ofAs of 
 December 31, 2014September 30, 2015
 RMB RMB US$
 (Audited) (Unaudited) (Unaudited)
Assets      
Current assets:      
Cash and cash equivalents  644,415  1,399,465  220,194
Restricted cash  161,649  141,715  22,298
Accounts and notes receivable, net  739,945  783,702  123,309
Short-term investments  911,242  482,545  75,924
Inventories  10,059  8,806  1,386
Prepaid expenses and other current assets  309,441  574,278  90,363
Deferred tax assets  35,002  31,461  4,950
Amount due from related parties  54,867  86,788  13,655
Total current assets  2,866,620  3,508,760  552,079
Non-current assets:      
Property and equipment, net  3,036,707  3,519,219  553,719
Intangible assets, net  1,404,453  1,309,621  206,058
Land use right  66,175  65,056  10,236
Deferred tax assets  42,573  51,755  8,143
Goodwill  1,755,970  1,755,970  276,287
Long term investments  126,307  158,417  24,926
Restricted cash  121,415  125,913  19,811
Amount due from related parties  98,500  70,000  11,014
Other non-current assets  121,461  122,740  19,312
Total non-current assets  6,773,561  7,178,691  1,129,506
Total assets  9,640,181  10,687,451  1,681,585
Liabilities and Shareholders' Equity      
Current liabilities:      
Short-term bank borrowings  160,181  270,000  42,482
Accounts and notes payable  386,074  447,228  70,368
Accrued expenses and other payables  599,491  605,545  95,284
Deferred revenue  347,441  333,238  52,432
Advances from customers  97,679  177,238  27,887
Income taxes payable  35,013  56,820  8,940
Amounts due to related parties  326,804  401,066  63,104
Current portion of long-term bank borrowings  955,647  21,593  3,397
Current portion of capital lease obligations  71,939  92,619  14,573
Current portion of deferred government grant  6,150  5,776  909
Current portion of bonds payable  --   264,204  41,570
Deferred tax liabilities  2,696  43  7
Total current liabilities  2,989,115  2,675,370  420,953
Non-current liabilities:      
Long-term bank borrowings  61,673  100,767  15,855
Deferred revenue  74,044  69,953  11,007
Amounts due to related parties  280,728  19,215  3,023
Unrecognized tax benefits  20,453  12,499  1,967
Deferred tax liabilities  310,340  288,851  45,448
Non-current portion of capital lease obligations  511,679  501,668  78,933
Non-current portion of deferred government grant  27,422  33,233  5,229
Bonds payable  2,264,064  2,000,000  314,683
Mandatorily redeemable noncontrolling interests  100,000  100,000  15,734
Total non-current liabilities  3,650,403  3,126,186  491,879
       
Redeemable noncontrolling interests  773,706  779,537  122,654
       
Shareholders' equity      
Treasury stock  (213,665)  (193,142)  (30,389)
Ordinary shares   26  34  5
Additional paid-in capital  4,225,029  6,378,119  1,003,543
Accumulated other comprehensive income loss  (65,754)  (50,836)  (7,999)
Statutory reserves  52,263  59,929  9,429
Accumulated deficit  (1,794,975)  (2,106,656)  (331,465)
Total 21Vianet Group, Inc. shareholders' equity  2,202,924  4,087,448  643,124
Non-controlling interest  24,033  18,910  2,975
Total shareholders' equity  2,226,957  4,106,358  646,099
Total liabilities and shareholders' equity  9,640,181  10,687,451  1,681,585
               
 
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 Nine months ended
 Sept 30, 2014June 30,2015September 30, 2015September 30, 2014September 30, 2015
 RMBRMBRMBUS$RMB RMB US$
 (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited) (Unaudited) (Unaudited)
Net revenues              
Hosting and related services  513,212  643,709  695,802  109,479  1,384,467  1,952,739  307,247
Managed network services  265,313  223,078  228,293  35,920  638,070  698,250  109,864
Total net revenues  778,525  866,787  924,095  145,399  2,022,537  2,650,989  417,111
Cost of revenues  (547,666)  (662,810)  (723,828)  (113,888)  (1,450,427)  (2,016,400)  (317,264)
Gross profit  230,859  203,977  200,267  31,511  572,110  634,589  99,847
Operating expenses              
Sales and marketing  (85,947)  (78,031)  (89,232)  (14,040)  (187,154)  (257,663)  (40,541)
General and administrative  (90,383)  (166,885)  (138,783)  (21,836)  (333,733)  (434,876)  (68,424)
Research and development  (31,435)  (32,059)  (35,176)  (5,535)  (81,770)  (101,266)  (15,933)
Changes in the fair value of contingent purchase consideration payable  64,895  (16,643)  (676)  (106)  22,160  (38,265)  (6,021)
Total operating expenses  (142,870)  (293,618)  (263,867)  (41,517)  (580,497)  (832,070)  (130,919)
Other operating income  --  8,569  --  --  --  8,569  1,348
Operating profit (loss)   87,989  (81,072)  (63,600)  (10,006)  (8,387)  (188,912)  (29,724)
Interest income  20,227  20,449  13,523  2,128  55,042  47,802  7,521
Interest expense  (67,950)  (71,664)  (69,690)  (10,965)  (165,489)  (213,221)  (33,549)
Loss on debt extinguishment  --  --  --  --  (41,581)  --  --
(Loss) Income from equity method investment  (509)  123  706  111  (749)  12,124  1,908
Other income  7,300  2,876  5,779  909  11,147  10,315  1,623
Other expense  (804)  (183)  (719)  (113)  (970)  (1,853)  (292)
Foreign exchange (loss) gain   (1,861)  (5,269)  60,248  9,480  (7,500)  65,146  10,250
Profit (Loss) before income taxes  44,392  (134,740)  (53,753)  (8,456)  (158,487)  (268,599)  (42,263)
Income tax expense  (6,493)  (7,091)  (4,132)  (650)  (14,505)  (19,786)  (3,113)
Consolidated net profit (loss)  37,899  (141,831)  (57,885)  (9,106)  (172,992)  (288,385)  (45,376)
Net loss (profit) attributable to non-controlling interest  1,704  (3,315)  (4,257)  (670)  (1,400)  (15,630)  (2,459)
Net profit (loss) attributable to ordinary shareholders  39,603  (145,146)  (62,142)  (9,776)  (174,392)  (304,015)  (47,835)
               
               
Earnings (Loss) per share              
Basic  0.10  (0.28)  (0.12)  (0.02)  (0.43)  (0.62)  (0.10)
Diluted  0.09  (0.28)  (0.12)  (0.02)  (0.43)  (0.62)  (0.10)
Shares used in earnings per share computation              
Basic*  404,495,442  489,847,525  521,376,112  521,376,112  401,775,444  481,524,589  481,524,589
Diluted*  418,601,672  489,847,525  521,376,112  521,376,112  401,775,444  481,524,589  481,524,589
               
Earnings (Loss) per ADS (6 ordinary shares equal to 1 ADS)              
Basic 0.60 (1.68) (0.72) (0.11) (2.58) (3.72) (0.59)
Diluted 0.54 (1.68) (0.72) (0.11) (2.58) (3.72) (0.59)
               
* Shares used earnings per share/ADS computation were computed under weighted average method.
 
 
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 Nine months ended
 September 30, 2014June 30,2015September 30, 2015  September 30,  2014September 30,  2015    
 RMBRMBRMBUS$RMBRMBUS$
Gross profit  230,859  203,977  200,267  31,511  572,110  634,589  99,847
Plus: share-based compensation expense (117)  2,305  1,323  208  3,441  5,840  919
Plus: amortization of intangible assets derived from acquisitions  33,793  39,434  38,933  6,126  57,969  118,536  18,651
Adjusted gross profit  264,535  245,716  240,523  37,845  633,520  758,965  119,417
Adjusted gross margin34.0%28.3%26.0%26.0%31.3%28.6%28.6%
Operating expenses  (142,870)  (293,618)  (263,867)  (41,517)  (580,497)  (832,070)  (130,919)
Plus: share-based compensation expense  9,348  67,496  32,328  5,087  161,428  144,068  22,668
Plus: changes in the fair value of contingent purchase consideration payable  (64,895)  16,643  676  106  (22,160)  38,265  6,021
Adjusted operating expenses  (198,417)  (209,479)  (230,863)  (36,324)  (441,229)  (649,737)  (102,230)
Net profit (loss)  37,899  (141,831)  (57,885)  (9,106)  (172,992)  (288,385)  (45,376)
Plus: share-based compensation expense  9,231  69,801  33,651  5,295  164,869  149,908  23,587
Plus: amortization of intangible assets derived from acquisitions  33,793  39,434  38,933  6,126  57,969  118,536  18,651
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact  (64,895)  16,643  676  106  (19,176)  38,265  6,021
Plus: loss on debt extinguishment  --  --  --  --  41,581  --  --
Adjusted net profit (loss)  16,028  (15,953)  15,375  2,421  72,251  18,324  2,883
Adjusted net margin2.1%-1.8%1.7%1.7%3.6%0.7%0.7%
Net profit (loss)  37,899  (141,831)  (57,885)  (9,106)  (172,992)  (288,385)  (45,376)
Minus: Provision for income taxes  (6,493)  (7,091)  (4,132)  (650)  (14,505)  (19,786)  (3,113)
Minus: Interest income  20,227  20,449  13,523  2,128  55,042  47,802  7,521
Minus: Interest expenses  (67,950)  (71,664)  (69,690)  (10,965)  (165,489)  (213,221)  (33,549)
Minus: loss on debt extinguishment  --  --  --  --  (41,581)  --  --
Minus: Exchange (loss) gain  (1,861)  (5,269)  60,248  9,480  (7,500)  65,146  10,250
Minus: (Loss) Income from equity method investment  (509)  123  706  111  (749)  12,124  1,908
Minus: Other income  7,300  2,876  5,779  909  11,147  10,315  1,623
Minus: Other expenses  (804)  (183)  (719)  (113)  (970)  (1,853)  (292)
Plus: depreciation  79,637  98,462  104,340  16,417  185,746  296,680  46,680
Plus: amortization  41,961  45,517  46,947  7,387  78,752  142,340  22,396
Plus: share-based compensation expense  9,231  69,801  33,651  5,295  164,869  149,908  23,587
Plus: changes in the fair value of contingent purchase consideration payable  (64,895)  16,643  676  106  (22,160)  38,265  6,021
Adjusted EBITDA  153,923  149,351  122,014  19,199  398,820  438,281  68,960
Adjusted EBITDA margin19.8%17.2%13.2%13.2%19.7%16.5%16.5%
               
               
Adjusted net profit (loss)  16,028  (15,953) 15,375 2,421  72,251  18,324  2,883
Less: Net loss (profit) attributable to non-controlling interest  1,704  (3,315)  (4,257)  (670)  (1,400)  (15,630)  (2,459)
Adjusted net profit (loss) attributable to the Company's ordinary shareholders  17,732  (19,268) 11,118 1,751  70,851  2,694  424
               
Adjusted earnings (loss) per share              
Basic  0.04 (0.02)  0.02  0.00  0.18 0.02 0.00
Diluted  0.04 (0.02)  0.02  0.00  0.17 0.02 0.00
Shares used in adjusted earnings per share computation:              
Basic*  404,495,442  489,847,525  521,376,112  521,376,112  401,775,444  481,524,589  481,524,589
Diluted*  418,601,672  489,847,525  536,927,693  536,927,693  415,628,732  494,976,649  494,976,649
               
Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS)              
Basic 0.24 (0.12) 0.12 0.02  1.08 0.12 0.02
Diluted 0.24 (0.12) 0.12 0.02  1.02 0.12 0.02
               
* Shares used in adjusted earnings/ADS per share computation were computed under weighted average method.
 
 
21VIANET GROUP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
      
  Three months ended 
  June 30, 2015  September 30, 2015 
  RMB  RMB  US$ 
  (Unaudited)  (Unaudited)  (Unaudited) 
 CASH FLOWS FROM OPERATING ACTIVITIES       
 Net loss   (141,831)  (57,885)  (9,108)
 Adjustments to reconcile net profit to net cash generated from operating activities:       --
 Foreign exchange loss (gain)   5,269  (60,248)  (9,480)
 Changes in the fair value of contingent purchase consideration payable   16,643  676  106
 Depreciation of property and equipment   98,462  104,340  16,417
 Amortization of intangible assets   44,086  46,016  7,240
 Loss on disposal of property and equipment   30  167  26
 Provision for doubtful accounts and other receivables   2,818  6,971  1,097
 Share-based compensation expense   69,802  21,339  3,358
 Deferred income taxes benefit   (7,493)  (10,158)  (1,598)
 Gain from equity method investment   (123)  (706)  (111)
 Changes in operating assets and liabilities       
 Restricted cash   (46,161)  (9,933)  (1,563)
 Inventories   (1,413)  3,297  519
 Accounts and notes receivable   213  (43,713)  (6,878)
 Unrecognized tax expense   (9,842)  602  95
 Prepaid expenses and other current assets   (125,384)  (40,330)  (6,346)
 Amounts due from related parties   (667)  (1,452)  (228)
 Accounts and notes payable   (16,598)  36,276  5,708
 Accrued expenses and other payables   (17,548)  42,118  6,627
 Deferred revenue   (14,716)  5,800  913
 Advances from customers   27,048  43,978  6,920
 Income taxes payable   (2,397)  12,746  2,005
 Amounts due to related parties   (950)  3,777  594
 Deferred government grants   (610)  (1,553)  (244)
 Net cash (used in) generated from operating activities   (121,361)  102,125  16,069
 CASH FLOWS FROM INVESTING ACTIVITIES       
 Purchases of property and equipment   (232,069)  (215,292)  (33,874)
 Purchases of intangible assets   (12,258)  (16,353)  (2,573)
 Proceeds from disposal of property and equipment   137  (4,952)  (779)
 Advances of loan to third parties   (3,760)  (5,104)  (803)
 Payments for short-term investments   (819,274)  (88,145)  (13,869)
 Proceeds received from maturity of short-term investments   94,000  1,090,577  171,593
 Net cash (used in) generated from investing activities   (973,224)  760,731  119,695
 CASH FLOWS FROM FINANCING ACTIVITIES       
 Restricted cash   83,751  (31,176)  (4,905)
 Proceeds from exercise of stock options   2,687  1,309  206
 Proceeds from shareholders   1,181,825  --  --
 Proceeds from long-term bank borrowings   31,710  --  --
 Proceeds from short-term bank borrowings   109,000  40,000  6,294
 Repayments of short-term bank borrowings   (60,000)  (20,000)  (3,147)
 Repayments of long-term bank borrowings   (63,310)  (902,496)  (142,000)
 Payments for acquisitions   --  (4,543)  (715)
 Interest payment for 2016 Bond   --  (10,386)  (1,634)
 Payments for capital leases   (24,023)  (21,182)  (3,333)
 Net cash generated from (used in) financing activities   1,261,640  (948,474)  (149,234)
 Effect of foreign exchange rate changes on cash and short term investments   (2,835)  43,448  6,836
 Net increase (decrease) in cash and cash equivalents   164,220  (42,170)  (6,635)
 Cash and cash equivalents at beginning of period   1,277,414  1,441,635  226,829
 Cash and cash equivalents at end of period   1,441,635  1,399,465  220,194
CONTACT: Investor Relations Contacts:

         

         21Vianet Group, Inc.

         Eric Chu, CFA

         +1 908 707 2062

         IR@21Vianet.com

         

         Queenie Liu

         +86 10 8456 2121

         IR@21Vianet.com

         

         ICR, Inc.

         Charles Eveslage

         +1 (646) 405-4922

         IR@21Vianet.com


Close window | Back to top

Copyright 2017 21Vianet Group, Inc.