21Vianet Group, Inc. Reports Unaudited Fourth Quarter and Full Year 2018 Financial Results
Fourth Quarter 2018 Financial Highlights
- Revenues from hosting and related services increased by 17.8% year over year to
RMB901.9 million (US$131.2 million ). - Gross profit increased by 23.1% year over year to
RMB246.3 million (US$35.8 million ). Gross margin expanded to 27.3% from 26.1% in the same period of 2017. Adjusted cash gross profit increased by 27.9% year over year toRMB409.2 million (US$59.5 million ) fromRMB320.1 million . Adjusted cash gross margin expanded to 45.4% from 41.8% in the same period of 2017. - Adjusted EBITDA increased by 49.3% year over year to
RMB255.3 million (US$37.1 million ). Adjusted EBITDA margin expanded to 28.3% from 22.3% in the same period of 2017. - Net cash generated from operating activities was
RMB237.0 million (US$34.5 million ) compared toRMB157.1 million in the same period of 2017.
Full Year 2018 Financial Highlights (including hosting and related business only)
- Revenues from hosting and related services revenues increased by 14.3% year over year to
RMB3.40 billion (US$494.7 million ). - Gross profit increased by 11.8% year over year to
RMB944.9 million (US$137.4 million ). Gross margin decreased to 27.8% from 28.4% in 2017. Adjusted cash gross profit increased by 21.2% year over year toRMB1.51 billion (US$220.0 million ) fromRMB1.25 billion . Adjusted cash gross margin expanded to 44.5% from 42.0% in 2017. - Adjusted EBITDA increased by 36.8% year over year to
RMB917.7 million (US$133.5 million ). Adjusted EBITDA margin expanded to 27.0% from 22.5% in 2017. - Net cash generated from operating activities was
RMB705.0 million (US$102.5 million ) compared toRMB487.2 million in 2017.
Fourth Quarter 2018 Operational Highlights
- Hosting MRR1 per cabinet increased to
RMB8,457 in the fourth quarter of 2018 compared toRMB7,766 in the fourth quarter of 2017 andRMB8,384 in the third quarter of 2018. - Total cabinets under management increased to 30,654 as of
December 31, 2018 , compared to 30,303 as ofSeptember 30, 2018 and 29,080 as ofDecember 31, 2017 . As ofDecember 31, 2018 , the Company had 25,711 cabinets in its self-built data centers and 4,943 cabinets in its partnered data centers. - Utilization rate in the fourth quarter of 2018 fell slightly to 70.3% compared to the third quarter of 2018, mainly attributable to the additional 1,194 cabinets that were delivered in
September 2018 , and 350 cabinets that were delivered in the fourth quarter of 2018.
“We concluded a fruitful 2018 with a solid fourth quarter performance,” commented Mr.
Ms.
Fourth Quarter 2018 Financial Results
REVENUES: Net revenues increased by 17.8% to
GROSS PROFIT: Gross profit increased by 23.1% to
ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, increased by 27.9% to
OPERATING EXPENSES: Total operating expenses decreased by 5.7% to
Sales and marketing expenses were
Research and development expenses were
General and administrative expenses were
ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses and changes in the fair value of contingent purchase consideration payables, decreased by 0.5% to
ADJUSTED EBITDA: Adjusted EBITDA in the fourth quarter of 2018 increased by 49.3% to
NET PROFIT/LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS: Net loss attributable to ordinary shareholders in the fourth quarter of 2018 was
PROFIT/LOSS PER SHARE: Basic and diluted loss per share were
As of
Net cash generated from operating activities was
Full Year 2018 Financial Results
To fully reflect the Company’s performance, all analysis between “REVENUES” and “ADJUSTED EBITDA” present only the results of the hosting and related service business. The MNS business, which was disposed of in the third quarter of 2017, is excluded.
REVENUES: Net revenues increased by 14.3% to
GROSS PROFIT: Gross profit increased by 11.8% to
ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, increased by 21.2% to
OPERATING EXPENSES: Total operating expenses increased by 2.8% to
Sales and marketing expenses were
Research and development expenses were
General and administrative expenses were
ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses and changes in the fair value of contingent purchase consideration payables, increased by 3.8% to
ADJUSTED EBITDA: Adjusted EBITDA in 2018 increased by 36.8% to
NET PROFIT/LOSS ATTRIBUTABLE TO ORDINARY SHAREHOLDERS: Net loss attributable to ordinary shareholders for 2018 was
PROFIT/LOSS PER SHARE: Basic and diluted loss per share were
Net cash generated from operating activities was
In
Financial Outlook
For the first quarter of 2019, the Company expects net revenues to be in the range of
For the full year of 2019, the Company expects net revenues to be in the range of
The forecast reflects the Company’s current and preliminary view on the market and its operational conditions, which is subject to change.
Conference Call
The Company will hold a conference call at
Participants may access the call by dialing the following numbers:
United States Toll Free: | +1-855-500-8701 | |
International: | +65-6713-5440 | |
China Domestic: | 400-120-0654 | |
Hong Kong: | +852-3018-6776 | |
Conference ID: | 8385847 |
The replay will be accessible through
United States Toll Free: | +1-855-452-5696 | |
International: | +61-2-9003-4211 | |
Conference ID: | 8385847 |
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
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
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, 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
Investor Relations Contacts:
+86 10 8456 2121
IR@21Vianet.com
+86 10 8456 2121
IR@21Vianet.com
+1 (646) 405-4922
IR@21Vianet.com
______________________________________________
1Hosting MRR: Refers to Monthly Recurring Revenues for the hosting business.
21VIANET GROUP, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | ||||||||
As of | As of | |||||||
December 31, 2017 | December 31, 2018 | |||||||
RMB | RMB | US$ | ||||||
(Audited) | (Unaudited) | (Unaudited) | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1,949,631 | 2,358,556 | 343,038 | |||||
Restricted cash | 242,494 | 265,214 | 38,574 | |||||
Accounts and notes receivable, net | 455,811 | 524,305 | 76,257 | |||||
Short-term investments | 548,890 | 245,014 | 35,636 | |||||
Prepaid expenses and other current assets | 934,460 | 1,159,574 | 168,652 | |||||
Amounts due from related parties | 114,256 | 125,446 | 18,245 | |||||
Total current assets | 4,245,542 | 4,678,109 | 680,402 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 3,319,424 | 4,031,242 | 586,320 | |||||
Intangible assets, net | 401,115 | 355,313 | 51,678 | |||||
Land use rights, net | 163,671 | 147,493 | 21,452 | |||||
Goodwill | 989,530 | 989,530 | 143,921 | |||||
Long-term investments | 510,926 | 544,323 | 79,168 | |||||
Amounts due from related parties | 20,210 | 34,424 | 5,007 | |||||
Restricted cash | 3,344 | 37,251 | 5,418 | |||||
Deferred tax assets | 172,818 | 159,441 | 23,190 | |||||
Other non-current assets | 81,581 | 173,591 | 25,248 | |||||
Total non-current assets | 5,662,619 | 6,472,608 | 941,402 | |||||
Total assets | 9,908,161 | 11,150,717 | 1,621,804 | |||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Short-term bank borrowings | 50,000 | 50,000 | 7,272 | |||||
Accounts and notes payable | 252,892 | 389,508 | 56,652 | |||||
Accrued expenses and other payables | 657,133 | 659,320 | 95,894 | |||||
Deferred revenue | 55,753 | 57,754 | 8,400 | |||||
Advances from customers | 403,244 | 670,037 | 97,453 | |||||
Income taxes payable | 13,309 | 13,111 | 1,907 | |||||
Amounts due to related parties | 55,675 | 52,328 | 7,611 | |||||
Current portion of long-term bank borrowings | 70,289 | 75,284 | 10,950 | |||||
Current portion of capital lease obligations | 201,315 | 219,695 | 31,953 | |||||
Current portion of deferred government grant | 4,574 | 4,173 | 607 | |||||
Total current liabilities | 1,764,184 | 2,191,210 | 318,699 | |||||
Non-current liabilities: | ||||||||
Long-term bank borrowings | 187,638 | 112,000 | 16,290 | |||||
Amounts due to related parties | - | 504,478 | 73,373 | |||||
Unrecognized tax benefits | 16,511 | 6,677 | 971 | |||||
Deferred tax liabilities | 190,873 | 157,720 | 22,939 | |||||
Non-current portion of capital lease obligations | 600,882 | 765,993 | 111,409 | |||||
Non-current portion of deferred government grant | 17,861 | 11,619 | 1,690 | |||||
Bonds payable | 1,929,208 | 2,037,836 | 296,391 | |||||
Total non-current liabilities | 2,942,973 | 3,596,323 | 523,063 | |||||
Shareholders' equity | ||||||||
Treasury stock | (337,683 | ) | (337,683 | ) | (49,114 | ) | ||
Ordinary shares | 46 | 46 | 7 | |||||
Additional paid-in capital | 8,980,407 | 9,141,494 | 1,329,575 | |||||
Accumulated other comprehensive (loss) gain | (2,673 | ) | 85,979 | 12,505 | ||||
Statutory reserves | 38,736 | 42,403 | 6,167 | |||||
Accumulated deficit | (3,629,300 | ) | (3,838,032 | ) | (558,219 | ) | ||
Total 21Vianet Group, Inc. shareholders’ equity | 5,049,533 | 5,094,207 | 740,921 | |||||
Noncontrolling interest | 151,471 | 268,977 | 39,121 | |||||
Total shareholders' equity | 5,201,004 | 5,363,184 | 780,042 | |||||
Total liabilities and shareholders' equity | 9,908,161 | 11,150,717 | 1,621,804 | |||||
21VIANET GROUP, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) | |||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||
December 31, 2017 | September 30, 2018 | December 31, 2018 | December 31, 2017 | December 31, 2018 | |||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
Net revenues | |||||||||||||||||||||
Hosting and related services | 765,814 | 870,068 | 901,887 | 131,174 | 2,975,178 | 3,401,037 | 494,660 | ||||||||||||||
Managed network services | - | - | - | - | 417,527 | - | - | ||||||||||||||
Total net revenues | 765,814 | 870,068 | 901,887 | 131,174 | 3,392,705 | 3,401,037 | 494,660 | ||||||||||||||
Cost of revenues | (565,645 | ) | (628,873 | ) | (655,546 | ) | (95,345 | ) | (2,634,295 | ) | (2,456,166 | ) | (357,235 | ) | |||||||
Gross profit | 200,169 | 241,195 | 246,341 | 35,829 | 758,410 | 944,871 | 137,425 | ||||||||||||||
Operating expenses | |||||||||||||||||||||
Other operating income | - | - | 5,027 | 731 | 5,439 | 5,027 | 731 | ||||||||||||||
Sales and marketing | (42,702 | ) | (39,918 | ) | (49,210 | ) | (7,157 | ) | (256,682 | ) | (172,176 | ) | (25,042 | ) | |||||||
Research and development | (29,340 | ) | (24,333 | ) | (23,583 | ) | (3,430 | ) | (149,143 | ) | (92,109 | ) | (13,397 | ) | |||||||
General and administrative | (115,351 | ) | (110,243 | ) | (130,963 | ) | (19,048 | ) | (519,950 | ) | (462,637 | ) | (67,288 | ) | |||||||
(Allowance) reversal for doubtful debt | (1,147 | ) | (643 | ) | (1,241 | ) | (180 | ) | (37,427 | ) | 598 | 87 | |||||||||
Changes in the fair value of contingent purchase consideration payables | (3,834 | ) | (1,413 | ) | 18,528 | 2,695 | (937 | ) | 13,905 | 2,022 | |||||||||||
Impairment of long-lived assets | - | - | - | - | (401,808 | ) | - | - | |||||||||||||
Goodwill impairment | - | - | - | - | (766,440 | ) | - | - | |||||||||||||
Total operating expenses | (192,374 | ) | (176,550 | ) | (181,442 | ) | (26,389 | ) | (2,126,948 | ) | (707,392 | ) | (102,887 | ) | |||||||
Operating profit (loss) | 7,795 | 64,645 | 64,899 | 9,440 | (1,368,538 | ) | 237,479 | 34,538 | |||||||||||||
Interest income | 10,821 | 13,484 | 14,214 | 2,067 | 32,925 | 45,186 | 6,572 | ||||||||||||||
Interest expense | (50,836 | ) | (60,766 | ) | (72,430 | ) | (10,535 | ) | (185,313 | ) | (236,066 | ) | (34,334 | ) | |||||||
Impairment of long-term investment | 139 | - | - | - | (20,258 | ) | - | - | |||||||||||||
Disposal gain of subsidiaries | 677,084 | - | - | - | 497,036 | 4,843 | 704 | ||||||||||||||
Other income | 3,260 | 8,436 | 7,050 | 1,025 | 16,764 | 58,033 | 8,441 | ||||||||||||||
Other expense | (232 | ) | (137 | ) | (1,875 | ) | (273 | ) | (17,060 | ) | (4,103 | ) | (597 | ) | |||||||
Foreign exchange gain (loss) | 4,328 | (55,024 | ) | 2,488 | 362 | (17,153 | ) | (81,055 | ) | (11,789 | ) | ||||||||||
Loss on debt extinguishment | - | - | - | ||||||||||||||||||
Gain (loss) before income taxes and gain (loss) from equity method investments | 652,359 | (29,362 | ) | 14,346 | 2,086 | (1,061,597 | ) | 24,317 | 3,535 | ||||||||||||
Income tax benefits (expenses) | 127,478 | 7,624 | 46,350 | 6,741 | 90,170 | (24,411 | ) | (3,550 | ) | ||||||||||||
Gain (loss) from equity method investments | 17,732 | (6,156 | ) | (158,738 | ) | (23,087 | ) | 53,783 | (186,642 | ) | (27,146 | ) | |||||||||
Net gain (loss) | 797,569 | (27,894 | ) | (98,042 | ) | (14,260 | ) | (917,644 | ) | (186,736 | ) | (27,161 | ) | ||||||||
Net loss (profit) attributable to noncontrolling interest | 1,073 | (1,739 | ) | (16,020 | ) | (2,330 | ) | 144,914 | (18,329 | ) | (2,666 | ) | |||||||||
Net gain (loss) attributable to ordinary shareholders | 798,642 | (29,633 | ) | (114,062 | ) | (16,590 | ) | (772,730 | ) | (205,065 | ) | (29,827 | ) | ||||||||
Profit (loss) per share | |||||||||||||||||||||
Basic | 1.19 | (0.04 | ) | (0.17 | ) | (0.02 | ) | (1.36 | ) | (0.30 | ) | (0.04 | ) | ||||||||
Diluted | 1.18 | (0.04 | ) | (0.17 | ) | (0.02 | ) | (1.36 | ) | (0.30 | ) | (0.04 | ) | ||||||||
Shares used in profit (loss) per share computation | |||||||||||||||||||||
Basic* | 671,279,121 | 676,327,014 | 676,361,072 | 676,361,072 | 672,836,226 | 674,732,130 | 674,732,130 | ||||||||||||||
Diluted* | 675,505,879 | 676,327,014 | 676,361,072 | 676,361,072 | 672,836,226 | 674,732,130 | 674,732,130 | ||||||||||||||
Profit (loss) per ADS (6 ordinary shares equal to 1 ADS) | |||||||||||||||||||||
Basic | 7.14 | (0.24 | ) | (1.02 | ) | (0.12 | ) | (8.16 | ) | (1.80 | ) | (0.24 | ) | ||||||||
Diluted | 7.08 | (0.24 | ) | (1.02 | ) | (0.12 | ) | (8.16 | ) | (1.80 | ) | (0.24 | ) | ||||||||
* Shares used in profit (loss) 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$”)) | |||||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||||
December 31, 2017 | September 30, 2018 | December 31, 2018 | December 31, 2017 | December 31, 2018 | |||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
Gross profit | 200,169 | 241,195 | 246,341 | 35,829 | 758,410 | 944,871 | 137,425 | ||||||||||||||
Plus: depreciation and amortization | 119,814 | 150,056 | 161,201 | 23,446 | 559,963 | 565,101 | 82,191 | ||||||||||||||
Plus: share-based compensation expenses | 84 | 689 | 1,672 | 243 | (277 | ) | 2,668 | 388 | |||||||||||||
Adjusted cash gross profit | 320,067 | 391,940 | 409,214 | 59,518 | 1,318,096 | 1,512,640 | 220,004 | ||||||||||||||
Adjusted cash gross margin | 41.8% | 45.0% | 45.4% | 45.4% | 38.9% | 44.5% | 44.5% | ||||||||||||||
Operating expenses | (192,374 | ) | (176,550 | ) | (181,442 | ) | (26,389 | ) | (2,126,948 | ) | (707,392 | ) | (102,887 | ) | |||||||
Plus: share-based compensation expenses | 15,317 | 12,240 | 27,528 | 4,004 | 47,406 | 56,870 | 8,271 | ||||||||||||||
Plus: changes in the fair value of contingent purchase consideration payables | 3,834 | 1,413 | (18,528 | ) | (2,695 | ) | 937 | (13,905 | ) | -2,022 | |||||||||||
Plus: impairment of long-lived assets | - | - | - | - | 401,808 | - | - | ||||||||||||||
Plus: Goodwill impairment | - | - | - | - | 766,440 | - | - | ||||||||||||||
Adjusted operating expenses | (173,223 | ) | (162,897 | ) | (172,442 | ) | (25,080 | ) | (910,357 | ) | (664,427 | ) | (96,638 | ) | |||||||
Operating profit (loss) | 7,795 | 64,645 | 64,899 | 9,440 | (1,368,538 | ) | 237,479 | 34,538 | |||||||||||||
Plus: depreciation and amortization | 143,966 | 166,244 | 179,759 | 26,145 | 667,102 | 634,606 | 92,300 | ||||||||||||||
Plus: share-based compensation expenses | 15,401 | 12,929 | 29,200 | 4,247 | 47,129 | 59,538 | 8,659 | ||||||||||||||
Plus: changes in the fair value of contingent purchase consideration payables | 3,834 | 1,413 | (18,528 | ) | (2,695 | ) | 937 | (13,905 | ) | -2,022 | |||||||||||
Plus: impairment of long-lived assets | - | - | - | - | 401,808 | - | - | ||||||||||||||
Plus: Goodwill impairment | - | - | - | - | 766,440 | - | - | ||||||||||||||
Adjusted EBITDA | 170,996 | 245,231 | 255,330 | 37,137 | 514,878 | 917,718 | 133,475 | ||||||||||||||
Adjusted EBITDA margin | 22.3% | 28.2% | 28.3% | 28.3% | 15.2% | 27.0% | 27.0% | ||||||||||||||
21VIANET GROUP, INC. | |||||||||||||||||||
SUPPLEMENTARY DISCLOSURE FOR HOSTING AND RELATED SERVICES | |||||||||||||||||||
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | |||||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||||
December 31, 2017 | September 30, 2018 | December 31, 2018 | December 31, 2017 | December 31, 2018 | |||||||||||||||
GAAP Disclosure | RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
Net revenues | 765,814 | 870,068 | 901,887 | 131,174 | 2,975,178 | 3,401,037 | 494,660 | ||||||||||||
Cost of revenues | (565,645 | ) | (628,873 | ) | (655,546 | ) | (95,345 | ) | (2,130,279 | ) | (2,456,166 | ) | (357,235 | ) | |||||
Gross profit | 200,169 | 241,195 | 246,341 | 35,829 | 844,899 | 944,871 | 137,425 | ||||||||||||
Other operating income | - | - | 5,027 | 731 | 5,439 | 5,027 | 731 | ||||||||||||
Sales and marketing | (42,702 | ) | (39,918 | ) | (49,210 | ) | (7,157 | ) | (171,761 | ) | (172,176 | ) | (25,042 | ) | |||||
Research and development | (29,340 | ) | (24,333 | ) | (23,583 | ) | (3,430 | ) | (97,597 | ) | (92,109 | ) | (13,397 | ) | |||||
General and administrative | (115,351 | ) | (110,243 | ) | (130,963 | ) | (19,048 | ) | (417,154 | ) | (462,637 | ) | (67,288 | ) | |||||
(Allowance) reversal for doubtful debt | (1,147 | ) | (643 | ) | (1,241 | ) | (180 | ) | (6,257 | ) | 598 | 87 | |||||||
Changes in the fair value of contingent purchase consideration payables | (3,834 | ) | (1,413 | ) | 18,528 | 2,695 | (937 | ) | 13,905 | 2,022 | |||||||||
Total operating expenses | (192,374 | ) | (176,550 | ) | (181,442 | ) | (26,389 | ) | (688,267 | ) | (707,392 | ) | (102,887 | ) | |||||
Operating profit | 7,795 | 64,645 | 64,899 | 9,440 | 156,632 | 237,479 | 34,538 | ||||||||||||
Non-GAAP Disclosure | |||||||||||||||||||
Gross profit | 200,169 | 241,195 | 246,341 | 35,829 | 844,899 | 944,871 | 137,425 | ||||||||||||
Plus: depreciation and amortization | 119,814 | 150,056 | 161,201 | 23,446 | 403,407 | 565,101 | 82,191 | ||||||||||||
Plus: share-based compensation expenses | 84 | 689 | 1,672 | 243 | (162 | ) | 2,668 | 388 | |||||||||||
Adjusted cash gross profit | 320,067 | 391,940 | 409,214 | 59,518 | 1,248,144 | 1,512,640 | 220,004 | ||||||||||||
Adjusted cash gross margin | 41.8% | 45.0% | 45.4% | 45.4% | 42.0% | 44.5% | 44.5% | ||||||||||||
Operating expenses | (192,374 | ) | (176,550 | ) | (181,442 | ) | (26,389 | ) | (688,267 | ) | (707,392 | ) | (102,887 | ) | |||||
Plus: share-based compensation expenses | 15,317 | 12,240 | 27,528 | 4,004 | 47,406 | 56,870 | 8,271 | ||||||||||||
Plus: changes in the fair value of contingent purchase consideration payables | 3,834 | 1,413 | (18,528 | ) | (2,695 | ) | 937 | (13,905 | ) | (2,022 | ) | ||||||||
Adjusted operating expenses | (173,223 | ) | (162,897 | ) | (172,442 | ) | (25,080 | ) | (639,924 | ) | (664,427 | ) | (96,638 | ) | |||||
Operating profit | 7,795 | 64,645 | 64,899 | 9,440 | 156,632 | 237,479 | 34,538 | ||||||||||||
Plus: depreciation and amortization | 143,966 | 166,244 | 179,759 | 26,145 | 465,976 | 634,606 | 92,300 | ||||||||||||
Plus: share-based compensation expenses | 15,401 | 12,929 | 29,200 | 4,247 | 47,244 | 59,538 | 8,659 | ||||||||||||
Plus: changes in the fair value of contingent purchase consideration payables | 3,834 | 1,413 | (18,528 | ) | (2,695 | ) | 937 | (13,905 | ) | (2,022 | ) | ||||||||
Adjusted EBITDA | 170,996 | 245,231 | 255,330 | 37,137 | 670,789 | 917,718 | 133,475 | ||||||||||||
Adjusted EBITDA margin | 22.3% | 28.2% | 28.3% | 28.3% | 22.5% | 27.0% | 27.0% | ||||||||||||
21VIANET GROUP, INC. | ||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | ||||||||||||
Three months ended | ||||||||||||
December 31, 2017 | September 30, 2018 | December 31, 2018 | ||||||||||
RMB | RMB | RMB | US$ | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net profit (loss) | 797,569 | (27,894 | ) | (98,042 | ) | (14,260 | ) | |||||
Adjustments to reconcile net profit (loss) to net cash generated from operating activities: | ||||||||||||
Depreciation and amortization | 143,966 | 166,244 | 179,759 | 26,145 | ||||||||
Stock-based compensation expenses | 15,513 | 12,929 | 29,200 | 4,247 | ||||||||
Gain from disposal of subsidiaries | (677,084 | ) | - | - | - | |||||||
Others | (148,681 | ) | 41,616 | 95,122 | 13,835 | |||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts and notes receivable | 32,070 | (34,113 | ) | 44,566 | 6,482 | |||||||
Prepaid expenses and other current assets | (23,235 | ) | (37,448 | ) | (117,604 | ) | (17,105 | ) | ||||
Accounts and notes payable | (38,841 | ) | 37,690 | (31,734 | ) | (4,616 | ) | |||||
Accrued expenses and other payables | 92,272 | (19,359 | ) | 96,432 | 14,025 | |||||||
Deferred revenue | 8,674 | 11,154 | 5,135 | 747 | ||||||||
Advances from customers | (23,683 | ) | 114,528 | 79,968 | 11,631 | |||||||
Others | (21,413 | ) | (4,632 | ) | (45,802 | ) | (6,662 | ) | ||||
Net cash generated from operating activities | 157,127 | 260,715 | 237,000 | 34,469 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchases of property and equipment | (74,603 | ) | (123,027 | ) | (129,910 | ) | (18,895 | ) | ||||
Purchases of intangible assets | (4,062 | ) | (4,032 | ) | (8,199 | ) | (1,192 | ) | ||||
Payments for investments | (275,766 | ) | (196,319 | ) | (101,796 | ) | (14,806 | ) | ||||
Proceeds from other investing activities | 100,000 | 18,061 | 97,917 | 14,241 | ||||||||
Net cash used in investing activities | (254,431 | ) | (305,317 | ) | (141,988 | ) | (20,652 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Proceeds from issuance of 2020 bonds | 619,180 | - | - | - | ||||||||
Repayment of long-term bank borrowings | (67,871 | ) | - | (42,690 | ) | (6,209 | ) | |||||
Repayment of short-term bank borrowings | (1,520,000 | ) | - | (19,999 | ) | (2,909 | ) | |||||
Payments for capital lease | (67,239 | ) | (50,996 | ) | (104,420 | ) | (15,187 | ) | ||||
Collection of prepayment for shares repurchase plan | - | 42,710 | - | - | ||||||||
Payment for shares repurchase plan | 60 | - | - | - | ||||||||
(Payments for) proceeds from other financing activities | (65,756 | ) | 89,810 | (17,324 | ) | (2,520 | ) | |||||
Contribution from noncontrolling interest in a subsidiary | 49,314 | 196,281 | - | - | ||||||||
Net cash (used in) generated from financing activities | (1,052,312 | ) | 277,805 | (184,433 | ) | (26,825 | ) | |||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (4,967 | ) | 63,580 | 14,507 | 2,113 | |||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,154,583 | ) | 296,783 | (74,914 | ) | (10,895 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 3,350,052 | 2,439,152 | 2,735,935 | 397,925 | ||||||||
Cash, cash equivalents and restricted cash at end of period | 2,195,469 | 2,735,935 | 2,661,021 | 387,030 | ||||||||
Notes: | ||||||||||||
The Company adopted Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash on January 1, 2018 and retrospectively adjusted the condensed consolidated statement of cash flows for the three months ended December 31, 2017 by excluding the movement of restricted cash of RMB1,619.3 million. |
Source: 21Vianet Group, Inc.