21Vianet Group, Inc. Reports Unaudited First Quarter 2013 Financial Results
1Q13 Net Revenues Up 26.0% YOY to
1Q13 Adjusted EBITDA Up 15.4% YOY to
Live Conference Call to be Held at
First quarter 2013 Financial Highlights
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Net revenues increased by 26.0% to
RMB435.7 million (US$70.2 million ) fromRMB345.8 million in the comparative period in 2012. -
Adjusted EBITDA1 increased by 15.4% to
RMB80.1 million (US$12.9 million ) fromRMB69.5 million in the comparative period in 2012.
Mr.
Mr.
First Quarter 2012 Financial Results
REVENUES: Net revenues for the first quarter of 2013 increased by 26.0% to
Net revenues from hosting and related services increased by 39.7% to
GROSS PROFIT: For the first quarter of 2013, gross profit increased by 18.2% to
Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, increased by 19.6% 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 first quarter of 2013 increased to
NET PROFIT/LOSS: Net profit for the first quarter of 2013 increased to
Adjusted net profit for the first quarter of 2013 was
EARNING/LOSS PER SHARE: Diluted earnings per ordinary share for the first quarter of 2013 was
As of
BALANCE SHEET: As of
First Quarter 2013 Operational Highlights
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Monthly Recurring Revenues ("MRR") per cabinet remained stable at
RMB10,422 in the first quarter of 2013, compared toRMB10,467 in fourth quarter of 2012. -
Total cabinets under management increased to 11,963 as of
March 31, 2013 , from 11,917 as ofDecember 31, 2012 , with 7,404 cabinets in the Company's self-built data centers and 4,559 cabinets in its partnered data centers. - Utilization rate was 68.1% in the first quarter of 2013, compared to 66.3% in the fourth quarter of 2012.
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Churn rate was 1.75% in the first quarter of 2013, compared to 0.84% in the fourth quarter of 2012, reflecting some temporary disruptions in the Company's business as a result of a major upgrade to the Company's network capacity, which was completed in
January 2013 . Top 20 customers' churn rate remained 0%.
Recent Developments
In
Financial Outlook
For the second 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: | #58116143 |
The replay will be accessible through |
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United States Toll Free: | +1- 855-452-5696 |
International: | +61-2-8199-0299 |
Conference ID: | #58116143 |
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 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 | As of | |||
2012 |
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RMB | RMB | US$ | ||
(Audited) | (Unaudited) | (Unaudited) | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 432,254 | 842,251 | 135,611 | |
Restricted cash | 191,766 | 190,967 | 30,748 | |
Accounts receivable, net | 293,369 | 387,700 | 62,424 | |
Short-term investments | 222,701 | 693,558 | 111,670 | |
Notes receivable | -- | 1,521 | 245 | |
Prepaid expenses and other current assets | 95,756 | 138,642 | 22,323 | |
Deferred tax assets | 8,585 | 8,250 | 1,328 | |
Amount due from related parties | 18,726 | 26,703 | 4,299 | |
Total current assets | 1,263,157 | 2,289,592 | 368,648 | |
Non-current assets: | ||||
Property and equipment, net | 822,707 | 1,136,878 | 183,049 | |
Intangible assets, net | 303,909 | 345,550 | 55,637 | |
Deferred tax assets | 11,231 | 12,251 | 1,973 | |
Goodwill | 296,688 | 333,326 | 53,669 | |
Long-term investments | 57,599 | 57,097 | 9,193 | |
Restricted cash | 221,628 | 222,286 | 35,790 | |
Other assets | -- | 11,357 | 1,829 | |
Total non-current assets | 1,713,762 | 2,118,745 | 341,140 | |
Total assets | 2,976,919 | 4,408,337 | 709,788 | |
Liabilities and Shareholders' Equity | ||||
Current liabilities: | ||||
Short-term bank borrowings | 176,961 | 190,532 | 30,678 | |
Accounts payable | 109,571 | 159,389 | 25,663 | |
Accrued expenses and other payables | 167,498 | 179,552 | 28,913 | |
Advances from customers | 22,976 | 19,886 | 3,202 | |
Income taxes payable | 23,506 | 24,455 | 3,937 | |
Amounts due to related parties | 105,037 | 121,128 | 19,503 | |
Current portion of long-term bank borrowings | 167,879 | 184,000 | 29,626 | |
Current portion of capital lease obligations | 36,719 | 36,280 | 5,841 | |
Total current liabilities | 810,147 | 915,222 | 147,363 | |
Non-current liabilities: | ||||
Long-term bank borrowings | 63,000 | 63,000 | 10,144 | |
Amounts due to related parties | 86,316 | 108,022 | 17,393 | |
Non-current portion of capital lease obligations | 52,352 | 347,754 | 55,992 | |
Unrecognized tax benefits | 12,340 | 12,800 | 2,061 | |
Deferred tax liabilities | 44,666 | 55,051 | 8,864 | |
Deferred government grants | 18,793 | 18,859 | 3,036 | |
Bonds payable | -- | 964,534 | 155,299 | |
Total non-current liabilities | 277,467 | 1,570,020 | 252,789 | |
Commitments and contingencies | ||||
Shareholders' equity | ||||
Treasury stock | (20,702) | (14,730) | (2,372) | |
Ordinary shares | 23 | 23 | 4 | |
Additional paid-in capital | 3,294,855 | 3,313,290 | 533,472 | |
Accumulated other comprehensive loss | (57,367) | (60,028) | (9,665) | |
Statutory reserves | 25,871 | 25,871 | 4,165 | |
Accumulated deficit | (1,371,877) | (1,359,987) | (218,972) | |
Total |
1,870,803 | 1,904,439 | 306,632 | |
Non-controlling interest | 18,502 | 18,656 | 3,004 | |
Total shareholders' equity | 1,889,305 | 1,923,095 | 309,636 | |
Total liabilities and shareholders' equity | 2,976,919 | 4,408,337 | 709,788 |
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||
Three months ended |
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2012 | 2013 | ||
RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||
Hosting and related services | 189,501 | 264,702 | 42,620 |
Managed network services | 156,318 | 171,017 | 27,535 |
Total net revenues | 345,819 | 435,719 | 70,155 |
Cost of revenues | (247,647) | (319,642) | (51,466) |
Gross profit | 98,172 | 116,077 | 18,689 |
Operating expenses | |||
Sales and marketing expenses | (25,148) | (30,378) | (4,891) |
General and administrative expenses | (29,499) | (45,286) | (7,291) |
Research and development expenses | (11,370) | (15,902) | (2,560) |
Changes in the fair value of contingent purchase consideration payable | (43,239) | 2,334 | 376 |
Total operating expenses | (109,256) | (89,232) | (14,366) |
Operating (loss) profit | (11,084) | 26,845 | 4,323 |
Interest income | 1,760 | 4,924 | 793 |
Interest expense | (2,316) | (11,972) | (1,928) |
Loss from equity method investment | -- | (501) | (81) |
Other income | 1 | 848 | 137 |
Other expense | (371) | (1,316) | (212) |
Foreign exchange (loss) gain | (1,382) | 1,630 | 262 |
(Loss) profit before income taxes | (13,392) | 20,458 | 3,294 |
Income tax expense | (2,511) | (8,414) | (1,355) |
Net (loss) profit | (15,903) | 12,044 | 1,939 |
Net income attributable to non-controlling interest | (358) | (154) | (25) |
Net (loss) profit attributable to the Company's ordinary shareholders | (16,261) | 11,890 | 1,914 |
(Loss) earnings per share | |||
Basic | (0.05) | 0.03 | 0.01 |
Diluted | (0.05) | 0.03 | 0.01 |
Shares used in (loss) earnings per share computation | |||
Basic* | 342,115,718 | 353,087,506 | 353,087,506 |
Diluted* | 353,241,225 | 366,135,693 | 366,135,693 |
(Loss) earning per ADS (6 ordinary shares equal to 1 ADS) | |||
EPS - Basic | (0.30) | 0.18 | 0.03 |
EPS - Diluted | (0.30) | 0.18 | 0.03 |
* Shares used in (loss) earnings/ADS per share 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$") except for number of shares and per share data) | ||||
Three months ended | ||||
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RMB | RMB | US$ | ||
Gross profit | 98,172 | 116,077 | 18,689 | |
Plus: share-based compensation expense | 674 | 1,404 | 226 | |
Plus: amortization of intangible assets derived from acquisitions | 6,195 | 8,160 | 1,314 | |
Adjusted gross profit | 105,041 | 125,641 | 20,229 | |
Adjusted gross margin | 30.4% | 28.8% | 28.8% | |
Operating expenses | (109,256) | (89,232) | (14,366) | |
Plus: share-based compensation expense | 10,220 | 11,594 | 1,867 | |
Plus: changes in the fair value of contingent purchase consideration payable | 43,239 | (2,334) | (376) | |
Adjusted operating expenses | (55,797) | (79,972) | (12,875) | |
Net (loss) profit | (15,903) | 12,044 | 1,939 | |
Plus: share-based compensation expense | 10,894 | 12,998 | 2,093 | |
Plus: amortization of intangible assets derived from acquisitions | 6,195 | 8,160 | 1,314 | |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact | 36,753 | (2,117) | (341) | |
Adjusted net profit | 37,939 | 31,085 | 5,005 | |
Adjusted net margin | 11.0% | 7.1% | 7.1% | |
Net (loss) profit | (15,903) | 12,044 | 1,939 | |
Minus: Provision for income taxes | (2,511) | (8,414) | (1,355) | |
Minus: Interest income | 1,760 | 4,924 | 793 | |
Minus: Interest expenses | (2,316) | (11,972) | (1,928) | |
Minus: Exchange gain/loss | (1,382) | 1,630 | 262 | |
Minus: Loss from equity method investment | -- | (501) | (81) | |
Minus: Other income | 1 | 848 | 137 | |
Minus: Other expenses | (371) | (1,316) | (212) | |
Plus: depreciation | 19,790 | 31,256 | 5,034 | |
Plus: amortization | 6,634 | 11,377 | 1,832 | |
Plus: share-based compensation expense | 10,894 | 12,998 | 2,093 | |
Plus: changes in the fair value of contingent purchase consideration payable | 43,239 | (2,334) | (376) | |
Adjusted EBITDA | 69,473 | 80,142 | 12,906 | |
Adjusted EBITDA margin | 20.1% | 18.4% | 18.4% | |
Adjusted net profit | 37,939 | 31,085 | 5,005 | |
Less: Net income attributable to non-controlling interest | (358) | (154) | (25) | |
Adjusted net profit attributable to the Company's ordinary shareholders | 37,581 | 30,931 | 4,980 | |
Adjusted earnings per share | ||||
Basic | 0.11 | 0.09 | 0.01 | |
Diluted | 0.11 | 0.08 | 0.01 | |
Shares used in adjusted earnings per share computation: | ||||
Basic* | 342,115,718 | 353,087,506 | 353,087,506 | |
Diluted* | 342,115,718 | 366,135,693 | 366,135,693 | |
Earnings per ADS (6 ordinary shares equal to 1 ADS) | ||||
EPS - Basic | 0.66 | 0.54 | 0.09 | |
EPS - Diluted | 0.66 | 0.48 | 0.08 | |
* Shares used in adjusted earnings/ADS per share computation were computed under weighted average method. |
CONTACT: Investor Relations Contact:Source:21Vianet Group, Inc. Joseph Cheng +86 10 8456 2121 IR@21Vianet.comICR, Inc. Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com
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