21Vianet Group, Inc. Reports Unaudited Second Quarter 2013 Financial Results
2Q13 Net Revenues Up 29.3% YOY to RMB 471.1 Million
2Q13 Adjusted EBITDA Up 23.8% YOY to RMB87.2 Million
Live Conference Call to be Held at
Second quarter 2013 Financial Highlights
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Net revenues increased by 29.3% to
RMB471.1 million (US$76.8 million ) fromRMB364.5 million in the comparative period in 2012. -
Adjusted EBITDA1 increased by 23.8% to
RMB87.2 million (US$14.2 million ) fromRMB70.4 million in the comparative period in 2012.
Mr.
Mr.
Second Quarter 2013 Financial Results
REVENUES: Net revenues for the second quarter of 2013 increased by 29.3% to
Net revenues from hosting and related services increased by 42.9% to
GROSS PROFIT: For the second quarter of 2013, gross profit increased by 19.1% to
Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, increased by 23.1% 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 loss 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 second quarter of 2013 increased by 23.8% to
NET PROFIT/LOSS: Net loss for the second quarter of 2013 was
Adjusted net profit for the second quarter of 2013 was
EARNING/LOSS PER SHARE: Diluted loss per ordinary share for the second quarter of 2013 was
As of
BALANCE SHEET: As of
Second Quarter 2013 Operational Highlights
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Monthly Recurring Revenues ("MRR") per cabinet slightly increased to
RMB10,559 in the second quarter of 2013, compared toRMB10,422 in first quarter of 2013. -
Total cabinets under management increased to 12,226 as of
June 30, 2013 , from 11,963 as ofMarch 31, 2013 , with 7,404 cabinets in the Company's self-built data centers and 4,822 cabinets in its partnered data centers. - Utilization rate was 70.2% in the second quarter of 2013, compared to 68.1% in the first quarter of 2013.
- Churn rate was 1.47% in the second quarter of 2013, compared to 1.75% in the first quarter of 2013. Top 20 customers' churn rate remained 0%.
Recent Developments
Beginning
In
Financial Outlook
For the third 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: | +1-845-675-0438 |
International Toll Free: | +1-855-500-8701 |
China Domestic: | 400-1200654 |
Hong Kong: | +852-3051-2745 |
Conference ID: | # 20209610 |
The replay will be accessible through
United States Toll Free: | +1-855-452-5696 |
International: | +61-2-8199-0299 |
Conference ID: | # 20209610 |
A live and archived 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 third 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
1 We define adjusted EBITDA as EBITDA excluding share-based compensation expenses and changes in the fair value of contingent purchase consideration payable and EBITDA as net profit (loss) from operations before income tax expense (benefit), foreign exchange gain, other expenses, other income, interest expense, interest income and depreciation and amortization.
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CONSOLIDATED BALANCE SHEETS | ||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||
As of | As of | |||
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RMB | RMB | US$ | ||
(Audited) | (Unaudited) | (Unaudited) | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 432,254 | 1,089,189 | 177,467 | |
Restricted cash | 191,766 | 195,868 | 31,914 | |
Accounts receivable, net | 293,369 | 442,222 | 72,054 | |
Short-term investments | 222,701 | 400,000 | 65,174 | |
Prepaid expenses and other current assets | 95,756 | 102,884 | 16,763 | |
Deferred tax assets | 8,585 | 13,259 | 2,160 | |
Amount due from related parties | 18,726 | 56,737 | 9,244 | |
Total current assets | 1,263,157 | 2,300,159 | 374,776 | |
Non-current assets: | ||||
Property and equipment, net | 822,707 | 1,141,289 | 185,956 | |
Intangible assets, net | 303,909 | 354,052 | 57,688 | |
Deferred tax assets | 11,231 | 12,432 | 2,026 | |
Goodwill | 296,688 | 413,500 | 67,374 | |
Investment | 57,599 | 56,847 | 9,262 | |
Restricted cash | 221,628 | 220,619 | 35,947 | |
Other assets | -- | 11,357 | 1,850 | |
Total non-current assets | 1,713,762 | 2,210,096 | 360,103 | |
Total assets | 2,976,919 | 4,510,255 | 734,879 | |
Liabilities and Shareholders' Equity | ||||
Current liabilities: | ||||
Short-term bank borrowings | 176,961 | 188,334 | 30,686 | |
Accounts payable | 109,571 | 161,531 | 26,319 | |
Accrued expenses and other payables | 167,498 | 194,254 | 31,648 | |
Advances from customers | 22,976 | 20,449 | 3,332 | |
Income taxes payable | 23,506 | 24,337 | 3,965 | |
Amounts due to related parties | 105,037 | 266,783 | 43,468 | |
Current portion of long-term bank borrowings | 167,879 | 188,000 | 30,632 | |
Current portion of capital lease obligations | 36,719 | 36,414 | 5,933 | |
Total current liabilities | 810,147 | 1,080,102 | 175,983 | |
Non-current liabilities: | ||||
Long-term bank borrowings | 63,000 | 75,022 | 12,224 | |
Amounts due to related parties | 86,316 | 62,673 | 10,212 | |
Non-current portion of capital lease obligations | 52,352 | 351,893 | 57,336 | |
Unrecognized tax benefits | 12,340 | 13,342 | 2,174 | |
Deferred tax liabilities | 44,666 | 60,380 | 9,838 | |
Deferred government grant | 18,793 | 17,805 | 2,901 | |
Bonds payable | -- | 966,970 | 157,554 | |
Total non-current liabilities | 277,467 | 1,548,085 | 252,239 | |
Shareholders' equity | ||||
Treasury stock | (20,702) | -- | -- | |
Ordinary shares | 23 | 23 | 4 | |
Additional paid-in capital | 3,294,855 | 3,312,643 | 539,747 | |
Accumulated other comprehensive income loss | (57,367) | (72,872) | (11,873) | |
Statutory reserves | 25,871 | 25,871 | 4,215 | |
Accumulated deficit | (1,371,877) | (1,402,587) | (228,530) | |
Total |
1,870,803 | 1,863,078 | 303,563 | |
Non-controlling interest | 18,502 | 18,990 | 3,094 | |
Total shareholders' equity | 1,889,305 | 1,882,068 | 306,657 | |
Total liabilities and shareholders' equity | 2,976,919 | 4,510,255 | 734,879 |
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||
Three months ended |
Six months ended |
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||||||
Hosting and related services | 205,078 | 264,702 | 292,983 | 47,737 | 394,579 | 557,685 | 90,867 |
Managed network services | 159,384 | 171,017 | 178,118 | 29,022 | 315,702 | 349,135 | 56,886 |
Total net revenues | 364,462 | 435,719 | 471,101 | 76,759 | 710,281 | 906,820 | 147,753 |
Cost of revenues | (261,088) | (319,642) | (347,962) | (56,695) | (508,735) | (667,604) | (108,776) |
Gross profit | 103,374 | 116,077 | 123,139 | 20,064 | 201,546 | 239,216 | 38,977 |
Operating expenses | |||||||
Sales and marketing | (24,262) | (30,378) | (36,885) | (6,010) | (49,410) | (67,263) | (10,960) |
General and administrative | (32,004) | (45,286) | (40,091) | (6,532) | (61,503) | (85,377) | (13,911) |
Research and development | (16,477) | (15,902) | (19,459) | (3,171) | (27,847) | (35,361) | (5,762) |
Changes in the fair value of contingent purchase consideration payable | (2,210) | 2,334 | (40,309) | (6,568) | (45,449) | (37,975) | (6,187) |
Total operating expenses | (74,953) | (89,232) | (136,744) | (22,281) | (184,209) | (225,976) | (36,820) |
Operating profit (loss) | 28,421 | 26,845 | (13,605) | (2,217) | 17,337 | 13,240 | 2,157 |
Interest income | 4,466 | 4,924 | 11,090 | 1,807 | 6,226 | 16,014 | 2,609 |
Interest expense | (1,483) | (11,972) | (37,625) | (6,130) | (3,799) | (49,597) | (8,080) |
Loss from equity method investment | -- | (501) | (250) | (41) | -- | (751) | (122) |
Other income | 406 | 848 | 617 | 101 | 407 | 1,465 | 239 |
Other expense | (22) | (1,316) | (672) | (109) | (393) | (1,988) | (324) |
Foreign exchange (loss) gain | (3,134) | 1,630 | 7,070 | 1,152 | (4,516) | 8,700 | 1,418 |
Profit (loss) before income taxes | 28,654 | 20,458 | (33,375) | (5,437) | 15,262 | (12,917) | (2,103) |
Income tax expense | (10,443) | (8,414) | (8,891) | (1,449) | (12,954) | (17,305) | (2,820) |
Consolidated net income (loss) | 18,211 | 12,044 | (42,266) | (6,886) | 2,308 | (30,222) | (4,923) |
Net income attributable to non-controlling interest | (214) | (154) | (334) | (54) | (572) | (488) | (80) |
Net income (loss) attributable to ordinary shareholders | 17,997 | 11,890 | (42,600) | (6,940) | 1,736 | (30,710) | (5,003) |
Earnings (loss) per share | |||||||
Basic | 0.05 | 0.03 | (0.12) | (0.02) | 0.01 | (0.09) | (0.01) |
Diluted | 0.05 | 0.03 | (0.12) | (0.02) | 0.01 | (0.08) | (0.01) |
Shares used in earnings per share computation | |||||||
Basic* | 327,359,013 | 353,087,506 | 355,050,686 | 355,050,686 | 326,921,241 | 354,078,056 | 354,078,056 |
Diluted* | 338,748,917 | 366,135,693 | 367,643,592 | 367,643,592 | 338,323,400 | 366,330,587 | 366,330,587 |
Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS) | |||||||
EPS - Basic | 0.30 | 0.18 | (0.72) | (0.12) | 0.06 | (0.54) | (0.09) |
EPS - Diluted | 0.30 | 0.18 | (0.72) | (0.12) | 0.06 | (0.48) | (0.08) |
* 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$") except for number of shares and per share data) | |||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
Gross profit | 103,374 | 116,077 | 123,139 | 20,064 | 201,546 | 239,216 | 38,977 |
Plus: share-based compensation expense | 800 | 1,404 | 1,116 | 182 | 1,474 | 2,520 | 411 |
Plus: amortization of intangible assets derived from acquisitions | 6,150 | 8,160 | 11,589 | 1,888 | 12,345 | 19,749 | 3,218 |
Adjusted gross profit | 110,324 | 125,641 | 135,844 | 22,134 | 215,365 | 261,485 | 42,606 |
Adjusted gross margin | 30.3% | 28.8% | 28.8% | 28.8% | 30.3% | 28.8% | 28.8% |
Operating expenses | (74,953) | (89,232) | (136,744) | (22,281) | (184,209) | (225,976) | (36,820) |
Plus: share-based compensation expense | 10,597 | 11,594 | 10,523 | 1,715 | 20,817 | 22,117 | 3,604 |
Plus: changes in the fair value of contingent purchase consideration payable | 2,210 | (2,334) | 40,309 | 6,568 | 45,449 | 37,975 | 6,187 |
Adjusted operating expenses | (62,146) | (79,972) | (85,912) | (13,998) | (117,943) | (165,884) | (27,029) |
Net profits | 18,211 | 12,044 | (42,266) | (6,886) | 2,308 | (30,222) | (4,923) |
Plus: share-based compensation expense | 11,397 | 12,998 | 11,639 | 1,897 | 22,291 | 24,637 | 4,014 |
Plus: amortization of intangible assets derived from acquisitions | 6,150 | 8,160 | 11,589 | 1,888 | 12,345 | 19,749 | 3,218 |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact | 1,879 | (2,117) | 37,886 | 6,173 | 38,632 | 35,769 | 5,828 |
Adjusted net profit | 37,637 | 31,085 | 18,848 | 3,072 | 75,576 | 49,933 | 8,137 |
Adjusted net margin | 10.3% | 7.1% | 4.0% | 4.0% | 10.6% | 5.5% | 5.5% |
Net profit (loss) | 18,211 | 12,044 | (42,266) | (6,886) | 2,308 | (30,222) | (4,923) |
Minus: Provision for income taxes | (10,443) | (8,414) | (8,891) | (1,449) | (12,954) | (17,305) | (2,820) |
Minus: Interest income | 4,466 | 4,924 | 11,090 | 1,807 | 6,226 | 16,014 | 2,609 |
Minus: Interest expenses | (1,483) | (11,972) | (37,625) | (6,130) | (3,799) | (49,597) | (8,080) |
Minus: Exchange gain/loss | (3,134) | 1,630 | 7,070 | 1,152 | (4,516) | 8,700 | 1,418 |
Minus: Loss from equity method investment | -- | (501) | (250) | (41) | -- | (751) | (122) |
Minus: Other income | 406 | 848 | 617 | 101 | 407 | 1,465 | 239 |
Minus: Other expenses | (22) | (1,316) | (672) | (109) | (393) | (1,988) | (324) |
Plus: depreciation | 19,704 | 31,256 | 33,971 | 5,535 | 39,494 | 65,227 | 10,628 |
Plus: amortization | 8,682 | 11,377 | 14,881 | 2,425 | 15,316 | 26,258 | 4,278 |
Plus: share-based compensation expense | 11,397 | 12,998 | 11,639 | 1,896 | 22,291 | 24,637 | 4,014 |
Plus: changes in the fair value of contingent purchase consideration payable | 2,210 | (2,334) | 40,309 | 6,568 | 45,449 | 37,975 | 6,187 |
Adjusted EBITDA | 70,414 | 80,142 | 87,195 | 14,207 | 139,887 | 167,337 | 27,264 |
Adjusted EBITDA margin | 19.3% | 18.4% | 18.5% | 18.5% | 19.7% | 18.5% | 18.5% |
Adjusted net profit | 37,637 | 31,085 | 18,848 | 3,072 | 75,576 | 49,933 | 8,137 |
Less: Net income attributable to non-controlling interest | (214) | (154) | (334) | (54) | (572) | (488) | (80) |
Adjusted net profit attributable to the Company's ordinary shareholders | 37,423 | 30,931 | 18,514 | 3,018 | 75,004 | 49,445 | 8,057 |
Adjusted earnings per share | |||||||
Basic | 0.11 | 0.09 | 0.05 | 0.01 | 0.23 | 0.14 | 0.02 |
Diluted | 0.11 | 0.08 | 0.05 | 0.01 | 0.22 | 0.13 | 0.02 |
Shares used in adjusted earnings per share computation: | |||||||
Basic* | 327,359,013 | 353,087,506 | 355,050,686 | 355,050,686 | 326,921,241 | 354,078,056 | 354,078,056 |
Diluted* | 338,748,917 | 366,135,693 | 367,643,592 | 367,643,592 | 338,323,400 | 366,330,587 | 366,330,587 |
Earnings per ADS (6 ordinary shares equal to 1 ADS) | |||||||
EPS - Basic | 0.66 | 0.54 | 0.30 | 0.05 | 1.38 | 0.84 | 0.14 |
EPS - Diluted | 0.66 | 0.48 | 0.30 | 0.05 | 1.32 | 0.78 | 0.13 |
* 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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