3Q15 Net Revenues Up 18.7% YOY to RMB924.1
Million
Live Conference Call to be Held at 8:00 PM U.S.
Eastern Time, November 24, 2015
21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a
leading carrier-neutral internet data center services provider in
China, today announced its unaudited financial results for the
third quarter of 2015. The Company will hold a conference call at
8:00 p.m. Eastern Time on November 24, 2015. Dial-in details are
provided at the end of the release.
Third Quarter 2015 Financial Highlights
- Net revenues increased by 18.7% to RMB924.1
million (US$145.4 million) from RMB778.5 million in the comparative
period in 2014.
Mr. Steve Zhang, Chief Executive Officer of the Company, stated,
"We are pleased with our top-line growth in the third quarter,
which was driven by an increase in billable cabinets and additional
revenue contribution from the Microsoft cloud business. Through our
partnership with IBM, we gained a major deal with BlueMix in
October to provide comprehensive datacenter services through 2018.
In addition, we are focusing on restructuring our company into
different business units in order to better serve the evolving and
increasingly specialized market segments. We believe this greater
level of autonomy will allow the various units to specialize and
optimize in a way to further improve scale, profitability and
operating efficiencies. As we expand our datacenter footprint, and
leverage our strong partnerships with global tech companies, we
remain confident in our ability to scale our business both
financially and operationally."
Mr. Terry Wang, Chief Financial Officer of the Company,
commented, "The third quarter witnessed steady top-line growth with
revenues increasing 18.7% year over year, which came in above the
mid-point of our revenue guidance, despite the ongoing decline of
bandwidth pricing in the market. We deployed nearly 600 cabinets in
the third quarter, and will accelerate deployment as we close out
2015. We also further increased our data center utilization rate to
71.8% from 67.5% in the preceding quarter, while improving our
already low hosting churn rate to 0.26% from 0.37%. On the other
hand, EBITDA came in softer than expected, due to the higher
spending on telecommunication costs and some lower margin equipment
sales to certain broadband retail customers. We continue to face
certain challenges in this market, but we are confident that as we
restructure our business and invest in growth opportunities, we can
reignite growth and solidify our position as a leading internet
infrastructure services provider."
Third Quarter 2015 Financial Results
REVENUES: Net revenues for the third quarter of
2015 increased by 18.7% to RMB924.1 million (US$145.4 million) from
RMB778.5 million in the comparative period in 2014, primarily
driven by the year-over-year growth in the IDC business, elevated
demand for the Company's cloud enabler services, as well as the
contribution from Dermot Entities that the Company acquired in
August, 2014. The increase in net revenues was partly offset by the
continued softness in managed network services.
Net revenues from hosting and related services increased by
35.6% to RMB695.8 million (US$109.5 million) in the third quarter
of 2015 from RMB513.2 million in the comparative period in 2014,
primarily due to the increase in the total number of billable
cabinets under management and strong growth in the Company's cloud
services. Net revenues from managed network services were RMB228.3
million (US$35.9 million) in the third quarter of 2015, compared
with RMB265.3 million in the comparative period in 2014, primarily
due to the continued decline of bandwidth selling prices and losses
of certain customers.
GROSS PROFIT: Gross profit for the third
quarter of 2015 was RMB200.3 million (US$31.5 million), compared
with RMB230.9 million in the comparative period in 2014. Gross
margin for the third quarter of 2015 was 21.7%, compared with 29.7%
in the comparative period in 2014. The decrease in gross margin was
primarily due to higher spending on telecommunication services,
lower selling bandwidth prices and some lower margin equipment
sales to broadband retail customers.
Adjusted gross profit, which excludes share-based compensation
expenses and amortization of intangible assets derived from
acquisitions, was RMB240.5 million (US$37.8 million), compared with
RMB264.5 million in the comparative period in 2014. Adjusted gross
margin was 26.0% in the third quarter of 2015, compared with 34.0%
in the comparative period in 2014.
OPERATING EXPENSES: Total operating expenses
increased to RMB263.9 million (US$41.5 million) from RMB142.9
million in the comparative period in 2014. Adjusted operating
expenses, which exclude share-based compensation expenses and the
changes in the fair value of contingent purchase consideration
payable, increased to RMB230.9 million (US$36.3 million) from
RMB198.4 million in the comparative period in 2014. As a percentage
of net revenue, adjusted operating expenses were 25.0%, compared
with 25.5% in the comparative period in 2014 and 24.2% in the
second quarter of 2015.
Sales and marketing expenses increased by 3.8% to RMB89.2
million (US$14.0 million) from RMB85.9 million in the comparative
period in 2014, primarily due to higher service fees, which were
mostly offset by lower labor costs as the Company outsourced some
functions to more cost-effective service providers.
General and administrative expenses increased by 53.5% to
RMB138.8 million (US$21.8 million) from RMB90.4 million in the
comparative period in 2014, primarily due to expenses associated
with previously issued employee stock options and increased
headcount associated with the growth in the Company's overall
business.
Research and development expenses increased by 11.9% to RMB35.2
million (US$5.5 million) from RMB31.4 million in the comparative
period in 2014, which reflected the Company's efforts to further
strengthen its research and development capabilities and expand its
cloud computing and CDN service offerings.
Change in the fair value of contingent purchase consideration
payable was a loss of RMB0.7 million (US$0.1 million) in the third
quarter of 2015, compared with a gain of RMB64.9 million in the
comparative period in 2014.
ADJUSTED EBITDA: Adjusted EBITDA for the third
quarter of 2015 was RMB122.0 million (US$19.2 million), compared
with RMB153.9 million in the comparative period in 2014. Adjusted
EBITDA margin for the quarter was 13.2% compared with 19.8% in the
comparative period in 2014 and 17.2% in the second quarter of 2015.
Adjusted EBITDA in the third quarter of 2015 excludes share-based
compensation expenses of RMB33.7 million (US$5.3 million) and
changes in the fair value of contingent purchase consideration
payable of RMB0.7 million (US$0.1 million).
NET PROFIT/LOSS: Net loss for the third quarter
of 2015 was RMB57.9 million (US$9.1 million), compared with a net
income of RMB37.9 million in the comparative period in 2014.
Adjusted net profit for the third quarter of 2015 was RMB15.4
million (US$2.4 million) compared with an adjusted net profit of
RMB16.0 million in the comparative period in 2014. Adjusted net
profit in the third quarter of 2015 excludes share-based
compensation expenses of RMB33.7 million (US$5.3 million),
amortization of intangible assets derived from acquisitions of
RMB38.9 million (US$6.1 million), changes in the fair value of
contingent purchase consideration payable of RMB0.7 million (US$0.1
million) in the aggregate. Adjusted net margin was 1.7%, compared
with 2.1% in the comparative period in 2014 and negative 1.8% in
the second quarter of 2015.
EARNING/LOSS PER SHARE: Diluted loss per
ordinary share for the third quarter of 2015 was RMB0.12, which
represents the equivalent of RMB0.72 (US$0.11) per American
Depositary Share ("ADS"). Each ADS represents six ordinary shares.
Adjusted diluted earnings per share for the third quarter of 2015
was RMB0.02, which represents the equivalent of RMB0.12 (US$0.02)
per ADS. Adjusted earnings per share is calculated using adjusted
net profit as discussed above divided by the weighted average
number of shares.
As of September 30, 2015, the Company had a total of 522.5
million ordinary shares outstanding, or the equivalent of 87.1
million ADSs.
BALANCE SHEET: As of September 30, 2015, the
Company's cash and cash equivalents and short-term investment were
RMB1.9 billion (US$296.1 million).
Third Quarter 2015 Operational Highlights
- Monthly Recurring Revenues ("MRR") per cabinet was RMB9,900 in
the third quarter of 2015, compared with RMB9,872 in the second
quarter of 2015.
- Total cabinets under management increased to 22,827 as of
September 30, 2015 from 22,238 as of June 30, 2015, with 15,400
cabinets in the Company's self-built data centers and 7,427
cabinets in its partnered data centers.
- Utilization rate was 71.8% in the third quarter of 2015,
compared with 67.5% in the second quarter of 2015.
- Hosting churn rate, which is based on the Company's core IDC
business, was 0.26% in the third quarter of 2015, compared with
0.37% in the second quarter of 2015.
Recent Developments
On September 23, 2015, at the 8th US-China Internet Industry
Forum, the Company, Unisplendour Corporation Limited (UNIS) and
Microsoft signed an agreement to provide customized hybrid cloud
computing solutions and related services to Chinese users. The
three parties showed their cooperative accomplishments and
innovations at Microsoft's Ignite China Conference, which marked a
new milestone in their business developments and cooperation.
On October 14, 2015, the Company signed an additional
partnership agreement with IBM for the Bluemix China landing
project. Under the terms of the agreement, the Company will provide
infrastructure support and operational services to IBM for
Bluemix's entry into the China market.
On October 19, 2015, the Company's board of directors appointed
Mr. Steve Zhang as the Chief Executive Officer of the Company. Mr.
Zhang replaces Mr. Josh Chen, founder of the Company, who continues
to serve as the Executive Chairman of the Board.
Financial Outlook
For the fourth quarter of 2015, the Company expects net revenues
to be in the range of RMB960 million to RMB1.0 billion,
representing approximately 15% year-over-year growth at the
mid-point. Adjusted EBITDA is expected to be in the range of RMB100
million to RMB120 million, representing approximately 31%
year-over-year decline at the mid-point.
For the full year 2015, the Company now expects net revenues to
be in the range of RMB3.61 billion to RMB3.65 billion (revised from
prior guidance of RMB3.58 billion to RMB3.68 billion), representing
approximately 26% growth over 2014 at the mid-point. Adjusted
EBITDA for the full year 2015 is expected to be in the range of
RMB538 million to RMB558 million (revised from prior guidance of
RMB620 million to RMB660 million), representing approximately 2%
decline over 2014 at the mid-point. These forecasts reflect the
Company's current and preliminary view, which may be subject to
change.
Conference Call
The Company will hold a conference call on Tuesday, November 24,
2015 at 8:00 pm Eastern Time, or Wednesday, November 25, 2015 at
9:00 am Beijing Time to discuss the financial results.
Participants may access the call by dialing the following
numbers:
United States: |
+1-845-675-0438 |
International Toll Free: |
+1-855-500-8701 |
China Domestic: |
400-1200654 |
Hong Kong: |
+852-3018-6776 |
Conference ID: |
# 69806683 |
The replay will be accessible through December 2, 2015 by
dialing the following numbers:
United States Toll Free: |
+1-855-452-5696 |
International: |
+61-2-90034211 |
Conference ID: |
# 69806683 |
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 SEC as supplemental measure to review and assess its
operating performance: adjusted gross profit, adjusted gross
margin, adjusted operating expenses, adjusted net profit, adjusted
net margin, adjusted EBITDA, adjusted EBITDA margin, adjusted basic
earnings per share, adjusted diluted earnings per share, adjusted
basic earnings per ADS and adjusted diluted earnings per ADS. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please
see the table captioned "Reconciliations of GAAP and non-GAAP
results" set forth at the end of this press release.
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 RMB6.3556 to
US$1.00, the noon buying rate in effect on September 30, 2015 in
the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or USD amounts
referred could be converted into USD or RMB, as the case may be, at
any particular rate or at all. For analytical presentation, all
percentages are calculated using the numbers presented in the
financial statements contained in this earnings release.
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
21Vianet Group, Inc. is a leading carrier-neutral Internet data
center services provider in China. 21Vianet provides hosting and
related services, managed network services, cloud services, content
delivery network services, last-mile wired broadband services and
business VPN services, improving the reliability, security and
speed of its customers' Internet infrastructure. Customers may
locate their servers and networking equipment in 21Vianet's data
centers and connect to China's Internet backbone through 21Vianet's
extensive fiber optic network. In addition, 21Vianet's proprietary
smart routing technology enables customers' data to be delivered
across the Internet in a faster and more reliable manner. 21Vianet
operates in more than 30 cities throughout China, servicing a
diversified and loyal base of more than 2,000 hosting enterprise
customers that span numerous industries ranging from Internet
companies to government entities and blue-chip enterprises to
small- to mid-sized enterprises
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 and full year of 2015 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 U.S.
Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about 21Vianet's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: 21Vianet's goals and strategies; 21Vianet's expansion
plans; the expected growth of the data center services market;
expectations regarding demand for, and market acceptance of,
21Vianet's services; 21Vianet's expectations regarding keeping and
strengthening its relationships with customers; 21Vianet's plans to
invest in research and development to enhance its solution and
service offerings; and general economic and business conditions in
the regions where 21Vianet provides solutions and services. Further
information regarding these and other risks is included in
21Vianet's reports filed with, or furnished to, the Securities and
Exchange Commission. All information provided in this press release
and in the attachments is as of the date of this press release, and
21Vianet undertakes no duty to update such information, except as
required under applicable law.
21VIANET GROUP,
INC. |
CONSOLIDATED BALANCE
SHEETS |
(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")) |
|
|
As of |
As
of |
|
December 31, 2014 |
September 30,
2015 |
|
RMB |
RMB |
US$ |
|
(Audited) |
(Unaudited) |
(Unaudited) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
644,415 |
1,399,465 |
220,194 |
Restricted cash |
161,649 |
141,715 |
22,298 |
Accounts and notes receivable, net |
739,945 |
783,702 |
123,309 |
Short-term investments |
911,242 |
482,545 |
75,924 |
Inventories |
10,059 |
8,806 |
1,386 |
Prepaid expenses and other current
assets |
309,441 |
574,278 |
90,363 |
Deferred tax assets |
35,002 |
31,461 |
4,950 |
Amount due from related parties |
54,867 |
86,788 |
13,655 |
Total current assets |
2,866,620 |
3,508,760 |
552,079 |
Non-current assets: |
|
|
|
Property and equipment, net |
3,036,707 |
3,519,219 |
553,719 |
Intangible assets, net |
1,404,453 |
1,309,621 |
206,058 |
Land use right |
66,175 |
65,056 |
10,236 |
Deferred tax assets |
42,573 |
51,755 |
8,143 |
Goodwill |
1,755,970 |
1,755,970 |
276,287 |
Long term investments |
126,307 |
158,417 |
24,926 |
Restricted cash |
121,415 |
125,913 |
19,811 |
Amount due from related parties |
98,500 |
70,000 |
11,014 |
Other non-current assets |
121,461 |
122,740 |
19,312 |
Total non-current
assets |
6,773,561 |
7,178,691 |
1,129,506 |
Total assets |
9,640,181 |
10,687,451 |
1,681,585 |
Liabilities and Shareholders'
Equity |
|
|
|
Current liabilities: |
|
|
|
Short-term bank borrowings |
160,181 |
270,000 |
42,482 |
Accounts and notes payable |
386,074 |
447,228 |
70,368 |
Accrued expenses and other payables |
599,491 |
605,545 |
95,284 |
Deferred revenue |
347,441 |
333,238 |
52,432 |
Advances from customers |
97,679 |
177,238 |
27,887 |
Income taxes payable |
35,013 |
56,820 |
8,940 |
Amounts due to related parties |
326,804 |
401,066 |
63,104 |
Current portion of long-term bank
borrowings |
955,647 |
21,593 |
3,397 |
Current portion of capital lease
obligations |
71,939 |
92,619 |
14,573 |
Current portion of deferred government
grant |
6,150 |
5,776 |
909 |
Current portion of bonds payable |
-- |
264,204 |
41,570 |
Deferred tax liabilities |
2,696 |
43 |
7 |
Total current
liabilities |
2,989,115 |
2,675,370 |
420,953 |
Non-current
liabilities: |
|
|
|
Long-term bank borrowings |
61,673 |
100,767 |
15,855 |
Deferred revenue |
74,044 |
69,953 |
11,007 |
Amounts due to related parties |
280,728 |
19,215 |
3,023 |
Unrecognized tax benefits |
20,453 |
12,499 |
1,967 |
Deferred tax liabilities |
310,340 |
288,851 |
45,448 |
Non-current portion of capital lease
obligations |
511,679 |
501,668 |
78,933 |
Non-current portion of deferred government
grant |
27,422 |
33,233 |
5,229 |
Bonds payable |
2,264,064 |
2,000,000 |
314,683 |
Mandatorily redeemable noncontrolling
interests |
100,000 |
100,000 |
15,734 |
Total non-current
liabilities |
3,650,403 |
3,126,186 |
491,879 |
|
|
|
|
Redeemable noncontrolling interests |
773,706 |
779,537 |
122,654 |
|
|
|
|
Shareholders' equity |
|
|
|
Treasury stock |
(213,665) |
(193,142) |
(30,389) |
Ordinary shares |
26 |
34 |
5 |
Additional paid-in capital |
4,225,029 |
6,378,119 |
1,003,543 |
Accumulated other comprehensive income
loss |
(65,754) |
(50,836) |
(7,999) |
Statutory reserves |
52,263 |
59,929 |
9,429 |
Accumulated deficit |
(1,794,975) |
(2,106,656) |
(331,465) |
Total 21Vianet Group, Inc.
shareholders' equity |
2,202,924 |
4,087,448 |
643,124 |
Non-controlling interest |
24,033 |
18,910 |
2,975 |
Total shareholders'
equity |
2,226,957 |
4,106,358 |
646,099 |
Total liabilities and shareholders'
equity |
9,640,181 |
10,687,451 |
1,681,585 |
|
|
|
|
|
|
|
|
|
21VIANET GROUP,
INC. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$") except for number of shares
and per share data) |
|
|
|
|
|
|
|
|
|
Three months
ended |
Nine months
ended |
|
Sept 30, 2014 |
June 30,2015 |
September 30,
2015 |
September 30, 2014 |
September 30,
2015 |
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
Net revenues |
|
|
|
|
|
|
|
Hosting and related services |
513,212 |
643,709 |
695,802 |
109,479 |
1,384,467 |
1,952,739 |
307,247 |
Managed network services |
265,313 |
223,078 |
228,293 |
35,920 |
638,070 |
698,250 |
109,864 |
Total net revenues |
778,525 |
866,787 |
924,095 |
145,399 |
2,022,537 |
2,650,989 |
417,111 |
Cost of revenues |
(547,666) |
(662,810) |
(723,828) |
(113,888) |
(1,450,427) |
(2,016,400) |
(317,264) |
Gross profit |
230,859 |
203,977 |
200,267 |
31,511 |
572,110 |
634,589 |
99,847 |
Operating expenses |
|
|
|
|
|
|
|
Sales and marketing |
(85,947) |
(78,031) |
(89,232) |
(14,040) |
(187,154) |
(257,663) |
(40,541) |
General and administrative |
(90,383) |
(166,885) |
(138,783) |
(21,836) |
(333,733) |
(434,876) |
(68,424) |
Research and development |
(31,435) |
(32,059) |
(35,176) |
(5,535) |
(81,770) |
(101,266) |
(15,933) |
Changes in the fair value of contingent
purchase consideration payable |
64,895 |
(16,643) |
(676) |
(106) |
22,160 |
(38,265) |
(6,021) |
Total operating
expenses |
(142,870) |
(293,618) |
(263,867) |
(41,517) |
(580,497) |
(832,070) |
(130,919) |
Other operating income |
-- |
8,569 |
-- |
-- |
-- |
8,569 |
1,348 |
Operating profit
(loss) |
87,989 |
(81,072) |
(63,600) |
(10,006) |
(8,387) |
(188,912) |
(29,724) |
Interest income |
20,227 |
20,449 |
13,523 |
2,128 |
55,042 |
47,802 |
7,521 |
Interest expense |
(67,950) |
(71,664) |
(69,690) |
(10,965) |
(165,489) |
(213,221) |
(33,549) |
Loss on debt extinguishment |
-- |
-- |
-- |
-- |
(41,581) |
-- |
-- |
(Loss) Income from equity method
investment |
(509) |
123 |
706 |
111 |
(749) |
12,124 |
1,908 |
Other income |
7,300 |
2,876 |
5,779 |
909 |
11,147 |
10,315 |
1,623 |
Other expense |
(804) |
(183) |
(719) |
(113) |
(970) |
(1,853) |
(292) |
Foreign exchange (loss) gain |
(1,861) |
(5,269) |
60,248 |
9,480 |
(7,500) |
65,146 |
10,250 |
Profit (Loss) before income
taxes |
44,392 |
(134,740) |
(53,753) |
(8,456) |
(158,487) |
(268,599) |
(42,263) |
Income tax expense |
(6,493) |
(7,091) |
(4,132) |
(650) |
(14,505) |
(19,786) |
(3,113) |
Consolidated net profit
(loss) |
37,899 |
(141,831) |
(57,885) |
(9,106) |
(172,992) |
(288,385) |
(45,376) |
Net loss (profit) attributable to
non-controlling interest |
1,704 |
(3,315) |
(4,257) |
(670) |
(1,400) |
(15,630) |
(2,459) |
Net profit (loss) attributable to
ordinary shareholders |
39,603 |
(145,146) |
(62,142) |
(9,776) |
(174,392) |
(304,015) |
(47,835) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per share |
|
|
|
|
|
|
|
Basic |
0.10 |
(0.28) |
(0.12) |
(0.02) |
(0.43) |
(0.62) |
(0.10) |
Diluted |
0.09 |
(0.28) |
(0.12) |
(0.02) |
(0.43) |
(0.62) |
(0.10) |
Shares used in earnings per share
computation |
|
|
|
|
|
|
|
Basic* |
404,495,442 |
489,847,525 |
521,376,112 |
521,376,112 |
401,775,444 |
481,524,589 |
481,524,589 |
Diluted* |
418,601,672 |
489,847,525 |
521,376,112 |
521,376,112 |
401,775,444 |
481,524,589 |
481,524,589 |
|
|
|
|
|
|
|
|
Earnings (Loss) per ADS (6 ordinary shares
equal to 1 ADS) |
|
|
|
|
|
|
|
Basic |
0.60 |
(1.68) |
(0.72) |
(0.11) |
(2.58) |
(3.72) |
(0.59) |
Diluted |
0.54 |
(1.68) |
(0.72) |
(0.11) |
(2.58) |
(3.72) |
(0.59) |
|
|
|
|
|
|
|
|
* Shares used earnings 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$") except for number of shares
and per share data) |
|
|
|
|
|
|
|
|
|
Three months
ended |
Nine months
ended |
|
September 30, 2014 |
June 30,2015 |
September
30, 2015 |
September 30,
2014 |
September
30, 2015 |
|
|
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
Gross profit |
230,859 |
203,977 |
200,267 |
31,511 |
572,110 |
634,589 |
99,847 |
Plus: share-based compensation expense |
(117) |
2,305 |
1,323 |
208 |
3,441 |
5,840 |
919 |
Plus: amortization of intangible assets
derived from acquisitions |
33,793 |
39,434 |
38,933 |
6,126 |
57,969 |
118,536 |
18,651 |
Adjusted gross profit |
264,535 |
245,716 |
240,523 |
37,845 |
633,520 |
758,965 |
119,417 |
Adjusted gross margin |
34.0% |
28.3% |
26.0% |
26.0% |
31.3% |
28.6% |
28.6% |
Operating expenses |
(142,870) |
(293,618) |
(263,867) |
(41,517) |
(580,497) |
(832,070) |
(130,919) |
Plus: share-based compensation expense |
9,348 |
67,496 |
32,328 |
5,087 |
161,428 |
144,068 |
22,668 |
Plus: changes in the fair value of contingent
purchase consideration payable |
(64,895) |
16,643 |
676 |
106 |
(22,160) |
38,265 |
6,021 |
Adjusted operating
expenses |
(198,417) |
(209,479) |
(230,863) |
(36,324) |
(441,229) |
(649,737) |
(102,230) |
Net profit (loss) |
37,899 |
(141,831) |
(57,885) |
(9,106) |
(172,992) |
(288,385) |
(45,376) |
Plus: share-based compensation expense |
9,231 |
69,801 |
33,651 |
5,295 |
164,869 |
149,908 |
23,587 |
Plus: amortization of intangible assets
derived from acquisitions |
33,793 |
39,434 |
38,933 |
6,126 |
57,969 |
118,536 |
18,651 |
Plus: changes in the fair value of contingent
purchase consideration payable and related deferred tax impact |
(64,895) |
16,643 |
676 |
106 |
(19,176) |
38,265 |
6,021 |
Plus: loss on debt extinguishment |
-- |
-- |
-- |
-- |
41,581 |
-- |
-- |
Adjusted net profit
(loss) |
16,028 |
(15,953) |
15,375 |
2,421 |
72,251 |
18,324 |
2,883 |
Adjusted net margin |
2.1% |
-1.8% |
1.7% |
1.7% |
3.6% |
0.7% |
0.7% |
Net profit (loss) |
37,899 |
(141,831) |
(57,885) |
(9,106) |
(172,992) |
(288,385) |
(45,376) |
Minus: Provision for income taxes |
(6,493) |
(7,091) |
(4,132) |
(650) |
(14,505) |
(19,786) |
(3,113) |
Minus: Interest income |
20,227 |
20,449 |
13,523 |
2,128 |
55,042 |
47,802 |
7,521 |
Minus: Interest expenses |
(67,950) |
(71,664) |
(69,690) |
(10,965) |
(165,489) |
(213,221) |
(33,549) |
Minus: loss on debt extinguishment |
-- |
-- |
-- |
-- |
(41,581) |
-- |
-- |
Minus: Exchange (loss) gain |
(1,861) |
(5,269) |
60,248 |
9,480 |
(7,500) |
65,146 |
10,250 |
Minus: (Loss) Income from equity method
investment |
(509) |
123 |
706 |
111 |
(749) |
12,124 |
1,908 |
Minus: Other income |
7,300 |
2,876 |
5,779 |
909 |
11,147 |
10,315 |
1,623 |
Minus: Other expenses |
(804) |
(183) |
(719) |
(113) |
(970) |
(1,853) |
(292) |
Plus: depreciation |
79,637 |
98,462 |
104,340 |
16,417 |
185,746 |
296,680 |
46,680 |
Plus: amortization |
41,961 |
45,517 |
46,947 |
7,387 |
78,752 |
142,340 |
22,396 |
Plus: share-based compensation expense |
9,231 |
69,801 |
33,651 |
5,295 |
164,869 |
149,908 |
23,587 |
Plus: changes in the fair value of contingent
purchase consideration payable |
(64,895) |
16,643 |
676 |
106 |
(22,160) |
38,265 |
6,021 |
Adjusted EBITDA |
153,923 |
149,351 |
122,014 |
19,199 |
398,820 |
438,281 |
68,960 |
Adjusted EBITDA margin |
19.8% |
17.2% |
13.2% |
13.2% |
19.7% |
16.5% |
16.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net profit (loss) |
16,028 |
(15,953) |
15,375 |
2,421 |
72,251 |
18,324 |
2,883 |
Less: Net loss (profit) attributable to
non-controlling interest |
1,704 |
(3,315) |
(4,257) |
(670) |
(1,400) |
(15,630) |
(2,459) |
Adjusted net profit (loss) attributable to
the Company's ordinary shareholders |
17,732 |
(19,268) |
11,118 |
1,751 |
70,851 |
2,694 |
424 |
|
|
|
|
|
|
|
|
Adjusted earnings (loss) per share |
|
|
|
|
|
|
|
Basic |
0.04 |
(0.02) |
0.02 |
0.00 |
0.18 |
0.02 |
0.00 |
Diluted |
0.04 |
(0.02) |
0.02 |
0.00 |
0.17 |
0.02 |
0.00 |
Shares used in adjusted earnings per share
computation: |
|
|
|
|
|
|
|
Basic* |
404,495,442 |
489,847,525 |
521,376,112 |
521,376,112 |
401,775,444 |
481,524,589 |
481,524,589 |
Diluted* |
418,601,672 |
489,847,525 |
536,927,693 |
536,927,693 |
415,628,732 |
494,976,649 |
494,976,649 |
|
|
|
|
|
|
|
|
Earnings (loss) per ADS (6 ordinary shares
equal to 1 ADS) |
|
|
|
|
|
|
|
Basic |
0.24 |
(0.12) |
0.12 |
0.02 |
1.08 |
0.12 |
0.02 |
Diluted |
0.24 |
(0.12) |
0.12 |
0.02 |
1.02 |
0.12 |
0.02 |
|
|
|
|
|
|
|
|
* Shares used in adjusted
earnings/ADS per share computation were computed under weighted
average method. |
|
|
21VIANET GROUP,
INC. |
CONSOLIDATED STATEMENT
OF CASH FLOWS |
(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")) |
|
|
|
|
|
Three months
ended |
|
June 30,
2015 |
September 30,
2015 |
|
RMB |
RMB |
US$ |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
Net loss |
(141,831) |
(57,885) |
(9,108) |
Adjustments to reconcile net
profit to net cash generated from operating
activities: |
|
|
-- |
Foreign exchange loss (gain) |
5,269 |
(60,248) |
(9,480) |
Changes in the fair value of contingent
purchase consideration payable |
16,643 |
676 |
106 |
Depreciation of property and
equipment |
98,462 |
104,340 |
16,417 |
Amortization of intangible
assets |
44,086 |
46,016 |
7,240 |
Loss on disposal of property and
equipment |
30 |
167 |
26 |
Provision for doubtful accounts and
other receivables |
2,818 |
6,971 |
1,097 |
Share-based compensation
expense |
69,802 |
21,339 |
3,358 |
Deferred income taxes
benefit |
(7,493) |
(10,158) |
(1,598) |
Gain from equity method
investment |
(123) |
(706) |
(111) |
Changes in operating assets and
liabilities |
|
|
|
Restricted cash |
(46,161) |
(9,933) |
(1,563) |
Inventories |
(1,413) |
3,297 |
519 |
Accounts and notes
receivable |
213 |
(43,713) |
(6,878) |
Unrecognized tax expense |
(9,842) |
602 |
95 |
Prepaid expenses and other current
assets |
(125,384) |
(40,330) |
(6,346) |
Amounts due from related
parties |
(667) |
(1,452) |
(228) |
Accounts and notes payable |
(16,598) |
36,276 |
5,708 |
Accrued expenses and other
payables |
(17,548) |
42,118 |
6,627 |
Deferred revenue |
(14,716) |
5,800 |
913 |
Advances from customers |
27,048 |
43,978 |
6,920 |
Income taxes payable |
(2,397) |
12,746 |
2,005 |
Amounts due to related
parties |
(950) |
3,777 |
594 |
Deferred government grants |
(610) |
(1,553) |
(244) |
Net cash (used in) generated
from operating activities |
(121,361) |
102,125 |
16,069 |
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
Purchases of property and
equipment |
(232,069) |
(215,292) |
(33,874) |
Purchases of intangible
assets |
(12,258) |
(16,353) |
(2,573) |
Proceeds from disposal of property and
equipment |
137 |
(4,952) |
(779) |
Advances of loan to third
parties |
(3,760) |
(5,104) |
(803) |
Payments for short-term
investments |
(819,274) |
(88,145) |
(13,869) |
Proceeds received from maturity of
short-term investments |
94,000 |
1,090,577 |
171,593 |
Net cash (used in) generated
from investing activities |
(973,224) |
760,731 |
119,695 |
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
Restricted cash |
83,751 |
(31,176) |
(4,905) |
Proceeds from exercise of stock
options |
2,687 |
1,309 |
206 |
Proceeds from shareholders |
1,181,825 |
-- |
-- |
Proceeds from long-term bank
borrowings |
31,710 |
-- |
-- |
Proceeds from short-term bank
borrowings |
109,000 |
40,000 |
6,294 |
Repayments of short-term bank
borrowings |
(60,000) |
(20,000) |
(3,147) |
Repayments of long-term bank
borrowings |
(63,310) |
(902,496) |
(142,000) |
Payments for acquisitions |
-- |
(4,543) |
(715) |
Interest payment for 2016
Bond |
-- |
(10,386) |
(1,634) |
Payments for capital leases |
(24,023) |
(21,182) |
(3,333) |
Net cash generated from (used
in) financing activities |
1,261,640 |
(948,474) |
(149,234) |
Effect of foreign exchange rate
changes on cash and short term investments |
(2,835) |
43,448 |
6,836 |
Net increase (decrease) in cash
and cash equivalents |
164,220 |
(42,170) |
(6,635) |
Cash and cash equivalents at
beginning of period |
1,277,414 |
1,441,635 |
226,829 |
Cash and cash equivalents at
end of period |
1,441,635 |
1,399,465 |
220,194 |
CONTACT: Investor Relations Contacts:
21Vianet Group, Inc.
Eric Chu, CFA
+1 908 707 2062
IR@21Vianet.com
Queenie Liu
+86 10 8456 2121
IR@21Vianet.com
ICR, Inc.
Charles Eveslage
+1 (646) 405-4922
IR@21Vianet.com
VNET (NASDAQ:VNET)
Historical Stock Chart
From Mar 2024 to Apr 2024
VNET (NASDAQ:VNET)
Historical Stock Chart
From Apr 2023 to Apr 2024