21Vianet Group, Inc. Reports First Quarter 2012 Financial Results
1Q12 Net Revenues Up 64.2% YOY to
1Q12 Adjusted EBITDA Up 61.5% YOY to
1Q12 Adjusted Net Profit Up 35.4 % YOY to
Live Conference Call to be Held at
First Quarter 2012 Financial Highlights
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Net revenues increased by 64.2% to
RMB345.8 million (US$55.0 million ) fromRMB210.6 million in the comparative period in 2011. -
Adjusted EBITDA1 increased by 61.5% to
RMB69.5 million (US$11.0 million ) fromRMB43.0 million in the comparative period in 2011. - Adjusted EBITDA margin2 remained relatively stable at 20.1%, compared with 20.4% in the comparative period in 2011.
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Adjusted net profit3 increased by 35.4% to
RMB37.9 million (US$6.0 million ) fromRMB28.0 million in the comparative period in 2011.
Mr.
Mr.
First Quarter 2012 Financial Results
REVENUES: Net revenues for the first quarter of 2012 increased by 64.2% to
Net revenues from hosting and related services increased by 47.0% to
Net revenues from managed network services increased by 91.3% to
GROSS PROFIT: For the first quarter of 2012, gross profit increased by 78.3% to
Adjusted gross profit, which excludes share-based compensation expenses of
Adjusted gross margin remained stable at 30.4%, compared to 30.0% in the comparative period in 2011, primarily due to a balanced increase in new self-built and partnered data centers. The Company plans to continue to shift its revenue mix towards a higher percentage of self-built data centers, which carry slightly higher gross margins relative to partnered data centers.
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
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 2012 increased by 61.5% to
NET PROFIT/LOSS: Net loss for the first quarter of 2012 was
Adjusted net profit for the first quarter of 2012 increased by 35.4% to
EARNING/LOSS PER SHARE: Diluted loss per ordinary share for the first quarter of 2012 was
As of
BALANCE SHEET: As of
First Quarter 2012 Operational Highlights
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Monthly Recurring Revenues ("MRR") per cabinet increased to
RMB9,718 in the first quarter of 2012 fromRMB9,700 in the fourth quarter of 2011. -
Total cabinets under management increased to 8,027 as of
March 31, 2012 , from 7,816 as ofDecember 31, 2011 , with 4,170 cabinets in the Company's self-built data centers and 3,857 cabinets in its partnered data centers. - Utilization rate increased to 82.4% in the first quarter 2012 compared to 80.7% in the fourth quarter of 2011.
- Churn rate was 0.95% in the first quarter of 2012, compared to 0.85% in the fourth quarter of 2011. Top 20 customers' churn rate remained at 0%.
- The largest customer represented 3.9% of total net revenues.
Financial Outlook
For the second quarter of 2012, 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: | #74440546 |
The replay will be accessible through
United States: | +1-718-354-1232 |
International Toll Free: | +1-866-214-5335 |
Conference ID: | #74440546 |
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 US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US 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 second quarter of 2012 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.
2Adjusted EBITDA margin is a non-GAAP financial measure, which is defined as adjusted EBITDA as a percentage of total net revenues.
3Adjusted net profit/loss is a non-GAAP financial measure, which is defined as net profit/loss from continuing operations excluding share-based compensation expenses, amortization of intangible assets derived from acquisitions, changes in the fair value of contingent purchase consideration payable and related deferred tax impact.
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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 | 410,389 | 369,456 | 58,667 |
Restricted cash | 4,578 | -- | -- |
Accounts receivable, net | 147,624 | 226,319 | 35,938 |
Short term investments | 894,540 | 644,540 | 102,349 |
Prepaid expenses and other current assets | 47,575 | 50,633 | 8,040 |
Deferred tax assets | 4,872 | 4,284 | 680 |
Amount due from related parties | 41,643 | 57,773 | 9,174 |
Total current assets | 1,551,221 | 1,353,005 | 214,848 |
Non-current assets: | |||
Property and equipment, net | 453,883 | 570,253 | 90,552 |
Intangible assets, net | 159,439 | 274,830 | 43,641 |
Deferred tax assets | 12,773 | 21,750 | 3,454 |
Goodwill | 217,436 | 217,436 | 34,527 |
Investment | 8,200 | 8,200 | 1,302 |
Restricted cash | -- | 121,595 | 19,308 |
Total non-current assets | 851,731 | 1,214,064 | 192,784 |
Total assets | 2,402,952 | 2,567,069 | 407,632 |
Liabilities and Shareholders' (Deficit) Equity | |||
Current liabilities: | |||
Short term bank borrowings | 100,000 | 145,000 | 23,025 |
Accounts payable | 82,131 | 77,810 | 12,356 |
Notes payable | 4,578 | -- | -- |
Accrued expenses and other payables | 124,326 | 190,002 | 30,171 |
Advances from customers | 23,238 | 21,600 | 3,430 |
Income tax payable | 5,634 | 12,749 | 2,024 |
Amounts due to related parties | 96,618 | 120,370 | 19,114 |
Current portion of capital lease obligations | 26,012 | 25,733 | 4,086 |
Total current liabilities | 462,537 | 593,264 | 94,206 |
Non-current liabilities: | |||
Amounts due to related parties | 124,493 | 155,870 | 24,751 |
Non-current portion of capital lease obligations | 73,896 | 70,257 | 11,156 |
Unrecognized tax benefits | 26,801 | 28,661 | 4,551 |
Deferred tax liabilities | 39,682 | 38,110 | 6,052 |
Deferred government grant | 5,819 | 16,086 | 2,554 |
Total non-current liabilities | 270,691 | 308,984 | 49,064 |
Commitments and contingencies | |||
Mezzanine equity | -- | -- | -- |
Shareholders' equity | |||
Treasury stock | (168,018) | (168,018) | (26,680) |
Ordinary shares | 23 | 23 | 4 |
Additional paid-in capital | 3,277,658 | 3,289,505 | 522,351 |
Accumulated other comprehensive income loss | (54,779) | (55,626) | (8,833) |
Statutory reserves | 15,837 | 15,837 | 2,515 |
Accumulated deficit | (1,418,167) | (1,434,428) | (227,778) |
Total |
1,652,554 | 1,647,293 | 261,579 |
Non-controlling interest | 17,170 | 17,528 | 2,783 |
Total shareholders' equity | 1,669,724 | 1,664,821 | 264,362 |
Total liabilities, mezzanine equity and shareholders' equity | 2,402,952 | 2,567,069 | 407,632 |
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||
Three months ended |
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2011 | 2012 | ||
RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||
Hosting and related services | 128,888 | 189,501 | 30,091 |
Managed network services | 81,708 | 156,318 | 24,822 |
Total net revenues | 210,596 | 345,819 | 54,913 |
Cost of revenues | (155,521) | (247,647) | (39,325) |
Gross profit | 55,075 | 98,172 | 15,588 |
Operating expenses | -- | ||
Sales and marketing | (15,996) | (25,148) | (3,993) |
General and administrative | (15,979) | (29,499) | (4,684) |
Research and development | (7,155) | (11,370) | (1,805) |
Changes in the fair value of contingent purchase consideration payable | (50,032) | (43,239) | (6,866) |
Total operating expenses | (89,162) | (109,256) | (17,348) |
Operating loss | (34,087) | (11,084) | (1,760) |
Interest income | 172 | 1,760 | 279 |
Interest expense | (983) | (2,316) | (368) |
Other income | 702 | 1 | -- |
Other expense | (110) | (371) | (59) |
Foreign exchange gain (loss) | 700 | (1,382) | (219) |
Loss before income taxes | (33,606) | (13,392) | (2,127) |
Income tax benefit (expense) | 3,069 | (2,511) | (399) |
Net loss | (30,537) | (15,903) | (2,526) |
Net income attributable to non-controlling interest | (5,968) | (358) | (57) |
Net loss attributable to the Company's ordinary shareholders | (36,505) | (16,261) | (2,583) |
Loss per share | |||
|
(0.38) | (0.05) | (0.01) |
Diluted | (0.38) | (0.05) | (0.01) |
Shares used in loss per share computation | |||
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96,352,410 | 342,115,718 | 342,115,718 |
Diluted* | 96,352,410 | 353,241,225 | 353,241,225 |
Loss per ADS (6 ordinary shares equal to 1 ADS) | |||
EPS - |
(2.28) | (0.30) | (0.06) |
EPS - Diluted | (2.28) | (0.30) | (0.06) |
* Shares used in loss/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 | 55,075 | 98,172 | 15,588 |
Plus: share-based compensation expense | 686 | 674 | 107 |
Plus: amortization of intangible assets derived from acquisitions | 7,461 | 6,195 | 984 |
Adjusted gross profit | 63,222 | 105,041 | 16,679 |
Adjusted gross margin | 30.0% | 30.4% | 30.4% |
Operating expenses | (89,162) | (109,256) | (17,348) |
Plus: share-based compensation expense | 7,886 | 10,220 | 1,623 |
Plus: changes in the fair value of contingent purchase consideration payable | 50,032 | 43,239 | 6,866 |
Adjusted operating expenses | (31,244) | (55,797) | (8,859) |
Net loss | (30,537) | (15,903) | (2,526) |
Plus: share-based compensation expense | 8,572 | 10,894 | 1,730 |
Plus: amortization of intangible assets derived from acquisitions | 7,461 | 6,195 | 984 |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact | 42,527 | 36,753 | 5,836 |
Adjusted net profit | 28,023 | 37,939 | 6,024 |
Adjusted net margin | 13.3% | 11.0% | 11.0% |
Operating loss | (34,087) | (11,084) | (1,760) |
Plus: depreciation | 10,559 | 19,790 | 3,143 |
Plus: amortization | 7,933 | 6,634 | 1,053 |
Plus: share-based compensation expense | 8,572 | 10,894 | 1,730 |
Plus: changes in the fair value of contingent purchase consideration payable | 50,032 | 43,239 | 6,866 |
Adjusted EBITDA | 43,009 | 69,473 | 11,032 |
Adjusted EBITDA margin | 20.4% | 20.1% | 20.1% |
Adjusted net profit | 28,023 | 37,939 | 6,024 |
Less: Net income attributable to non-controlling interest | (5,968) | (358) | (57) |
Adjusted net profit attributable to the Company's ordinary shareholders | 22,055 | 37,581 | 5,967 |
Adjusted earnings per share | |||
|
0.23 | 0.11 | 0.02 |
Diluted | 0.18 | 0.11 | 0.02 |
Shares used in adjusted earnings per share computation: | |||
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96,352,410 | 342,115,718 | 342,115,718 |
Diluted* | 120,616,316 | 342,115,718 | 342,115,718 |
Earnings per ADS (6 ordinary shares equal to 1 ADS) | |||
EPS - |
1.38 | 0.66 | 0.12 |
EPS - Diluted | 1.08 | 0.66 | 0.12 |
* Shares used in adjusted earnings/ADS per share computation were computed under weighted average method. |
CONTACT: Investor Relations Contact:Source: 21VianetICR, Inc. Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com
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