21Vianet Group, Inc. Reports Fourth Quarter and Full Year 2012 Financial Results
4Q12 Net Revenues Up 31.3% YOY to
4Q12 Adjusted EBITDA Up 20.2% YOY to
Live Conference Call to be Held at
Fourth Quarter 2012 Financial Highlights
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Net revenues increased by 31.3% to
RMB417.8 million (US$67.1 million ) fromRMB318.3 million in the comparative period in 2011. -
Adjusted EBITDA1 increased by 20.2% to
RMB78.3 million (US$12.6 million ) fromRMB65.1 million in the comparative period in 2011.
Full Year 2012 Financial Highlights
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Net revenues increased by 49.3% to
RMB1.5 billion (US$244.6 million ) fromRMB1.0 billion in 2011. -
Adjusted EBITDA increased by 40.7% to
RMB294.2 million (US$47.2 million ) fromRMB209.0 million in 2011.
Mr.
"Looking forward, we are excited about the growth opportunities for 2013. Our recently announced partnership with Microsoft to launch Microsoft Azure and Office 365 services in
Mr.
Fourth Quarter 2012 Financial Results
REVENUES: Net revenues for the fourth quarter of 2012 increased by 31.3% to
Net revenues from hosting and related services increased by 44.6% to
GROSS PROFIT: For the fourth quarter of 2012, gross profit increased by 29.2% to
Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, increased by 28.5% to
OPERATING EXPENSES: Total operating expenses were
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 a gain of
Adjusted operating expenses, which exclude share-based compensation expenses and the changes in the fair value of contingent purchase consideration payable, increased to
ADJUSTED EBITDA: Adjusted EBITDA for the fourth quarter of 2012 increased to
NET PROFIT/LOSS: Net profit for the fourth quarter of 2012 increased to
Adjusted net profit for the fourth quarter of 2012 was
EARNING/LOSS PER SHARE: Diluted earnings per ordinary share for the fourth quarter of 2012 was
As of
BALANCE SHEET: As of
Fourth Quarter 2012 Operational Highlights
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Monthly Recurring Revenues ("MRR") per cabinet increased to
RMB10,467 in the fourth quarter of 2012 fromRMB10,027 in the third quarter of 2012. -
Total cabinets under management increased to 11,917 as of
December 31, 2012 , from 11,648 as ofSeptember 30, 2012 , with 7,404 cabinets in the Company's self-built data centers and 4,513 cabinets in its partnered data centers as ofDecember 31, 2012 . - Utilization rate was 66.3% in the fourth quarter 2012, compared to 67.7% in the third quarter of 2012.
- Churn rate remained stable at 0.84% in the fourth quarter of 2012, compared to 0.87% in the third quarter of 2012. Top 20 customers' churn rate remained 0%.
- The largest customer represented 4.4% of total net revenues in the fourth quarter of 2012.
Full Year 2012 Financial Performance
For the full year of 2012, net revenue increased by 49.3% to
Recent Developments
In
Financial Outlook
For the first quarter of 2013, the Company expects net revenues to be in the range of
Conference Call
The Company will hold a conference call on
United States: | +1-646-254-3515 |
International Toll Free: | +1-855-500-8701 |
China Domestic: | 400-1200654 |
Hong Kong: | +852-3051-2745 |
Conference ID: | # 98281809 |
The replay will be accessible through
United States Toll Free: | +1- 855-452-5696 |
International: | +61-2-8199-0299 |
Conference ID: | # 98281809 |
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 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 press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of
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
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 first quarter and full year of 2013 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
1Adjusted EBITDA is a 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.
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CONSOLIDATED BALANCE SHEETS | ||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||
As of December 31, 2011 |
As of
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RMB | RMB | US$ | ||
(Audited) | (Unaudited) | (Unaudited) | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 410,389 | 432,254 | 69,382 | |
Restricted cash | 4,578 | 191,766 | 30,781 | |
Accounts receivable, net | 147,624 | 293,369 | 47,089 | |
Short term investments | 894,540 | 222,701 | 35,746 | |
Prepaid expenses and other current assets | 47,575 | 95,756 | 15,370 | |
Deferred tax assets | 4,872 | 8,585 | 1,378 | |
Amount due from related parties | 41,643 | 18,726 | 3,006 | |
Total current assets | 1,551,221 | 1,263,157 | 202,752 | |
Non-current assets: | ||||
Property and equipment, net | 453,883 | 822,707 | 132,054 | |
Intangible assets, net | 159,439 | 303,909 | 48,781 | |
Deferred tax assets | 12,773 | 11,231 | 1,803 | |
Goodwill | 217,436 | 296,688 | 47,622 | |
Investment | 8,200 | 57,599 | 9,245 | |
Restricted cash | -- | 221,628 | 35,574 | |
Total non-current assets | 851,731 | 1,713,762 | 275,079 | |
Total assets | 2,402,952 | 2,976,919 | 477,831 | |
Liabilities and Shareholders' (Deficit) Equity | ||||
Current liabilities: | ||||
Short term bank borrowings | 100,000 | 344,840 | 55,350 | |
Accounts payable | 82,131 | 109,571 | 17,587 | |
Notes payable | 4,578 | -- | -- | |
Accrued expenses and other payables | 124,326 | 167,498 | 26,890 | |
Advances from customers | 23,238 | 22,976 | 3,688 | |
Income tax payable | 5,634 | 23,506 | 3,773 | |
Amounts due to related parties | 96,618 | 105,037 | 16,860 | |
Current portion of capital lease obligations | 26,012 | 36,719 | 5,894 | |
Total current liabilities | 462,537 | 810,147 | 130,042 | |
Non-current liabilities: | ||||
Long term bank borrowings | -- | 63,000 | 10,112 | |
Amounts due to related parties | 124,493 | 86,316 | 13,855 | |
Non-current portion of capital lease obligations | 73,896 | 52,352 | 8,403 | |
Unrecognized tax benefits | 26,801 | 12,340 | 1,981 | |
Deferred tax liabilities | 39,682 | 44,666 | 7,169 | |
Deferred government grant | 5,819 | 18,793 | 3,016 | |
Total non-current liabilities | 270,691 | 277,467 | 44,536 | |
Commitments and contingencies | ||||
Mezzanine equity | -- | -- | -- | |
Shareholders' equity | ||||
Treasury stock | (168,018) | (20,702) | (3,323) | |
Ordinary shares | 23 | 23 | 4 | |
Additional paid-in capital | 3,277,658 | 3,294,855 | 528,861 | |
Accumulated other comprehensive income loss | (54,779) | (57,367) | (9,208) | |
Statutory reserves | 15,837 | 25,871 | 4,153 | |
Accumulated deficit | (1,418,167) | (1,371,877) | (220,204) | |
Total |
1,652,554 | 1,870,803 | 300,283 | |
Non-controlling interest | 17,170 | 18,502 | 2,970 | |
Total shareholders' equity | 1,669,724 | 1,889,305 | 303,253 | |
Total liabilities, mezzanine equity and shareholders' equity | 2,402,952 | 2,976,919 | 477,831 |
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||
Three months ended | Year ended | ||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||||||
Hosting and related services | 175,247 | 218,861 | 253,442 | 40,680 | 614,612 | 866,882 | 139,144 |
Managed network services | 143,030 | 177,198 | 164,376 | 26,384 | 406,317 | 657,276 | 105,500 |
Total net revenues | 318,277 | 396,059 | 417,818 | 67,064 | 1,020,929 | 1,524,158 | 244,644 |
Cost of revenues | (230,222) | (285,662) | (304,080) | (48,808) | (744,371) | (1,098,477) | (176,318) |
Gross profit | 88,055 | 110,397 | 113,738 | 18,256 | 276,558 | 425,681 | 68,326 |
Operating expenses | |||||||
Sales and marketing | (25,458) | (28,885) | (31,576) | (5,068) | (80,885) | (109,871) | (17,636) |
General and administrative | (24,418) | (42,622) | (49,387) | (7,927) | (82,926) | (153,512) | (24,640) |
Research and development | (10,020) | (18,758) | (17,324) | (2,781) | (34,657) | (63,929) | (10,261) |
Changes in the fair value of contingent purchase consideration payable | (19,979) | (12,043) | 40,062 | 6,430 | (63,185) | (17,430) | (2,798) |
Total operating expenses | (79,875) | (102,308) | (58,225) | (9,346) | (261,653) | (344,742) | (55,335) |
Operating profit | 8,180 | 8,089 | 55,513 | 8,910 | 14,905 | 80,939 | 12,991 |
Interest income | 4,348 | 4,216 | 5,859 | 940 | 14,939 | 16,301 | 2,616 |
Interest expense | (705) | (1,592) | (5,985) | (961) | (4,398) | (11,376) | (1,826) |
Gain(loss) from equity method investment | -- | 29 | (1,130) | (181) | -- | (1,101) | (177) |
Other income | 602 | 11,209 | -- | -- | 1,943 | 11,616 | 1,864 |
Other expense | (244) | (107) | (1,667) | (268) | (520) | (2,167) | (348) |
Foreign exchange gain (loss) | 6,734 | (1,213) | 5,332 | 856 | 32,747 | (397) | (64) |
Profit before income taxes | 18,915 | 20,631 | 57,922 | 9,296 | 59,616 | 93,815 | 15,056 |
Income tax (expense) benefit | (7,372) | (8,417) | (14,788) | (2,374) | (13,677) | (36,159) | (5,804) |
Net profit | 11,543 | 12,214 | 43,134 | 6,922 | 45,939 | 57,656 | 9,252 |
Net income attributable to non-controlling interest | (8,586) | (363) | (397) | (64) | (27,495) | (1,332) | (214) |
Net profit attributable to the Company's ordinary shareholders | 2,957 | 11,851 | 42,737 | 6,858 | 18,444 | 56,324 | 9,038 |
Earnings per share | |||||||
Basic | 0.01 | 0.03 | 0.12 | 0.02 | 0.07 | 0.16 | 0.03 |
Diluted | 0.01 | 0.03 | 0.12 | 0.02 | 0.06 | 0.16 | 0.03 |
Shares used in earnings per share computation | |||||||
Basic* | 322,761,801 | 340,885,136 | 342,124,551 | 342,124,551 | 259,595,677 | 342,326,855 | 342,326,855 |
Diluted* | 332,991,032 | 352,729,739 | 364,047,902 | 364,047,902 | 316,807,661 | 356,510,914 | 356,510,914 |
Earnings per ADS (6 ordinary shares equal to 1 ADS) | |||||||
EPS - Basic | 0.06 | 0.18 | 0.72 | 0.12 | 0.42 | 0.96 | 0.15 |
EPS - Diluted | 0.06 | 0.18 | 0.72 | 0.12 | 0.36 | 0.96 | 0.15 |
* Shares used earnings per share/ADS computation were computed under weighted average method. |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||
Three months ended | Year ended | ||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
Gross profit | 88,055 | 110,397 | 113,738 | 18,256 | 276,558 | 425,681 | 68,326 |
Plus: share-based compensation expense | 578 | 1,513 | 1,530 | 246 | 2,157 | 4,517 | 725 |
Plus: amortization of intangible assets derived from acquisitions | 7,344 | 6,788 | 8,050 | 1,292 | 28,388 | 27,183 | 4,363 |
Adjusted gross profit | 95,977 | 118,698 | 123,318 | 19,794 | 307,103 | 457,381 | 73,414 |
Adjusted gross margin | 30.2% | 30.0% | 29.5% | 29.5% | 30.1% | 30.0% | 30.0% |
Operating expenses | (79,875) | (102,308) | (58,225) | (9,346) | (261,653) | (344,742) | (55,335) |
Plus: share-based compensation expense | 9,875 | 21,462 | 20,836 | 3,344 | 39,802 | 63,115 | 10,131 |
Plus: changes in the fair value of contingent purchase consideration payable | 19,979 | 12,043 | (40,062) | (6,430) | 63,185 | 17,430 | 2,798 |
Adjusted operating expenses | (50,021) | (68,803) | (77,451) | (12,432) | (158,666) | (264,197) | (42,406) |
Net profits | 11,543 | 12,214 | 43,134 | 6,922 | 45,939 | 57,656 | 9,252 |
Plus: share-based compensation expense | 10,453 | 22,975 | 22,366 | 3,590 | 41,959 | 67,632 | 10,856 |
Plus: amortization of intangible assets derived from acquisitions | 7,344 | 6,788 | 8,050 | 1,292 | 28,388 | 27,183 | 4,363 |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact | 16,982 | 10,237 | (34,053) | (5,466) | 53,707 | 14,816 | 2,378 |
Adjusted net profit | 46,322 | 52,214 | 39,497 | 6,338 | 169,993 | 167,287 | 26,849 |
Adjusted net margin | 14.6% | 13.2% | 9.5% | 9.5% | 16.7% | 11.0% | 11.0% |
Operating profit | 8,180 | 8,089 | 55,513 | 8,910 | 14,905 | 80,939 | 12,991 |
Plus: depreciation | 18,772 | 23,724 | 29,569 | 4,747 | 58,873 | 92,787 | 14,893 |
Plus: amortization | 7,732 | 9,176 | 10,885 | 1,747 | 30,104 | 35,377 | 5,678 |
Plus: share-based compensation expense | 10,453 | 22,975 | 22,366 | 3,590 | 41,959 | 67,632 | 10,856 |
Plus: changes in the fair value of contingent purchase consideration payable | 19,979 | 12,043 | (40,062) | (6,430) | 63,185 | 17,430 | 2,798 |
Adjusted EBITDA | 65,116 | 76,007 | 78,271 | 12,564 | 209,026 | 294,165 | 47,216 |
Adjusted EBITDA margin | 20.5% | 19.2% | 18.7% | 18.7% | 20.5% | 19.3% | 19.3% |
Adjusted net profit | 46,322 | 52,214 | 39,497 | 6,338 | 169,993 | 167,287 | 26,849 |
Less: Net income attributable to non-controlling interest | (8,586) | (363) | (397) | (64) | (27,495) | (1,332) | (214) |
Adjusted net profit attributable to the Company's ordinary shareholders | 37,736 | 51,851 | 39,100 | 6,274 | 142,498 | 165,955 | 26,635 |
Adjusted earnings per share | |||||||
Basic | 0.12 | 0.15 | 0.11 | 0.02 | 0.55 | 0.48 | 0.08 |
Diluted | 0.12 | 0.15 | 0.11 | 0.02 | 0.47 | 0.47 | 0.07 |
Shares used in adjusted earnings per share computation: | |||||||
Basic* | 322,761,801 | 340,885,136 | 342,124,551 | 342,124,551 | 259,558,631 | 342,326,855 | 342,326,855 |
Diluted* | 322,761,801 | 352,729,739 | 364,047,902 | 364,047,902 | 302,796,593 | 356,510,914 | 356,510,914 |
Earnings per ADS (6 ordinary shares equal to 1 ADS) | |||||||
EPS - Basic | 0.72 | 0.90 | 0.66 | 0.11 | 3.30 | 2.88 | 0.46 |
EPS - Diluted | 0.72 | 0.90 | 0.66 | 0.11 | 2.82 | 2.82 | 0.45 |
* Shares used in adjusted earnings/ADS per share computation were computed under weighted average method. |
CONTACT:Source: 21VianetICR, Inc. Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com
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