51.6 million Sold Items, up 40.2%, 42.5 million
Total Payment Transactions, up 67.1%
MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com),
Latin America's leading e-commerce technology company, today
reported financial results for the fourth quarter and fiscal year
ended December 31, 2016.
Pedro Arnt, Chief Financial Officer of
MercadoLibre, Inc., commented, “Last year was one of our most
significant in terms of the tangible results of the quality work
and level of execution that the entire team at MELI delivered. The
scope of control over the customer experience that we are now able
to deliver is something that would have been hard for us to
anticipate five years ago. This end to end servicing of each
e-commerce transaction that we now offer puts us in an excellent
position to focus on delivering a best in class user experience to
our buyers and sellers, which is the driving principle behind
everything we do.”
Full Year 2016 Operational & Financial
Highlights
- MercadoLibre sold 181.2 million items during 2016, a
year-over-year increase of 41.0%, resulting in Gross Merchandise
Volume of $8.0 billion.
- MercadoPago ended 2016 with 138.7 million Total Payment
Transactions for the year, an increase of 72.6% compared to 2015,
resulting in a full-year Total Payment Volume of $7.8 billion.
- MercadoEnvíos shipped 86.5 million items in 2016, a 91.4%
increase as compared to 2015.
- Consolidated Net Revenues for 2016 were $844.4 million, a 29.6%
increase in USD year-over-year.
- Full-year net income was $136.4 million, or $3.09 per
share.
Fourth Quarter 2016 Business
Highlights
- MercadoPago ended the year with an excellent fourth quarter,
processing $2,446.8 million dollars in Total Payment Volume, a
57.5% year-over-year increase. Total Payment Transactions through
MercadoPago were 42.5 million, a 67.1% increase
year-over-year.
- Gross Merchandise Volume was $2,222.1 million, a 10.8% increase
in USD and a 48.3 % increase on an FX neutral basis. Items sold
during the fourth quarter of 2016 increased to 51.6 million, a 40.2
% increase
year-over-year.
- MercadoPago’s merchant service business continues to deliver
excellent results, growing Total Payment Volume 84.1%
year-over-year on an FX neutral basis. This growth is attributed
for the most part, to successful commercial efforts in onboarding
large clients, an increase in cross-border payments, successful
open platform integrations and increasing payment volume from
Mobile Point-of-Sale solutions in Brazil.
- Items shipped through MercadoEnvíos increased 74.9% to 25.9
million items in the fourth quarter. Additionally, the service
continues to gain adoption across the board, as MercadoEnvíos
shipped 71.6% of items sold in Brazil, 50.3% in Mexico, 31.8% in
Argentina and 39.2% in Colombia.
- Penetration of MercadoPago in countries beyond Brazil continues
to increase as a result of improved transaction quality, and
reflected in increased frequency on the platform. Penetration of
MercadoPago rose to 77.8%, versus. 54.6% when compared to the
fourth quarter of 2015.
- We successfully launched MercadoPago in Uruguay during the
month of October. Exiting the quarter and during its two months
post-launch, MercadoPago was used in transactions representing ¼ of
Uruguay gross merchandise volume.
- Mobile is the largest contributor of new users to the platform,
with new registrations from either native apps or web mobile
representing ⅔ of new users registering on MercadoLibre. During the
fourth quarter, mobile Gross Merchandise Volume grew 98.7%
year-on-year on an FX neutral basis, a 10 percentage point increase
vs. last year.
- We added almost 1,300 brands and large retailers to our
Official Stores initiative in 2016
Fourth Quarter 2016 Financial
Highlights
- Net revenues for the fourth quarter were $256.3 million, a
year-over-year increase of 41.8% in USD and 68.0% on an FX neutral
basis. Marketplace revenues grew 40.7% in USD, and 74.4% on an FX
neutral basis, while non-marketplace revenues grew 43.3% in USD,
and 58.7% on an FX neutral basis. The main contributors for this
non-marketplace growth came from MercadoPago merchant services,
financing revenues from adoption of credit offerings, and
shipping.
- Gross profit for the fourth quarter of 2016 was $162.7 million.
Gross profit margin was 63.5%, compared to 65.1% in the fourth
quarter of 2015. Most of the margin compression is explained by
higher sales taxes due to the increased adoption of financing,
credit and shipping services, investments in hosting, as well as
costs related the sale of Mobile Point-of-Sale payment
devices.
- Total operating expenses increased to $98.1 million, up 16.9%
year-over-year on an as reported basis. As a percentage of
revenues, operating expenses were 38.3% versus 46.4% in the fourth
quarter of 2015.
- Income from operations was $64.7 million, up 91.9%
year-over-year on an as reported basis. As a percentage of
revenues, income from operations was 25.2%, up from 18.6% during
the same period in 2015.
- Interest income grew 77.0% year-over-year to $10.3 million,
attributable to higher interest rates on larger invested base.
- The company incurred $6.8 million dollars in financial
expenses, mainly as a consequence of interest payments on its
Convertible Bond issued in June of 2014.
- Foreign currency exchange saw a $501 thousand dollar loss due
to local currency devaluations during the fourth quarter of 2015 in
Argentina.
- Net income before taxes was $67.6 million, up 27.5%
year-over-year on an as reported basis.
- Income tax expense was $16.3 million during the fourth quarter,
yielding a blended tax rate for the period of 24.1%, mainly due to
higher share of pre-tax profits in Argentina and tax credits in
Brazil.
- Net income as reported for the quarter was $51.3 million
dollars, resulting in basic net income per share of 1 dollar and 16
cents.
- Net cash from operating activities was $42.6 million. Free cash
flow, defined as cash from operating activities less payment for
the acquisition of property, equipment, intangible assets, advances
for property and equipment net of financial liabilities and payment
for acquired businesses net of cash acquired, was $26.9 million.
*
(*) See note on “Non-GAAP Financial
Measures”
The following table summarizes certain key performance
metrics for the three months ended December 31, 2016 and
2015.
|
|
|
|
|
Three months ended Dec 31, (in
MM) |
|
|
|
|
|
|
Q4'15 |
Q4'16 |
%YoY |
%YoY LC |
Number of
Confirmed Registered Users at end of period |
|
|
144.6 |
|
174.2 |
20.4 |
% |
|
Number of
Confirmed Registered Users During Period |
|
|
6.3 |
|
7.9 |
25.6 |
% |
|
Gross
merchandise volume |
|
|
|
$ |
2,006.1 |
$ |
2,222.1 |
10.8 |
% |
48.3 |
% |
Number of
successful items sold |
|
|
|
368 |
|
51.6 |
40.2 |
% |
|
Total
payment volume |
|
|
|
$ |
1,557.4 |
$ |
2,446.8 |
57.5 |
% |
83.8 |
% |
Total
payment volume on marketplace |
|
|
$ |
1,109.4 |
$ |
1,759.6 |
58.6 |
% |
|
Total
payment transactions |
|
|
|
|
25.4 |
|
42.5 |
67.1 |
% |
|
Number of
successful items shipped |
|
|
|
14.8 |
|
25.9 |
74.9 |
% |
|
Unique
Buyers |
|
|
|
|
10.7 |
|
13.2 |
22.8 |
% |
|
Unique
Sellers |
|
|
|
|
3.3 |
|
3.9 |
18.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Table of Year-on-Year Local Currency Revenue Growth
Rates by Quarter
|
|
YoY Growth rates |
|
Consolidated Net Revenues |
|
|
|
|
|
|
|
Q4'15 |
Q1'16 |
Q2'16 |
Q3'16 |
Q4'16 |
|
Brazil |
42 |
% |
54 |
% |
61 |
% |
62 |
% |
64 |
% |
|
Argentina |
79 |
% |
71 |
% |
89 |
% |
68 |
% |
60 |
% |
|
Mexico |
29 |
% |
42 |
% |
35 |
% |
36 |
% |
29 |
% |
|
Venezuela |
272 |
% |
249 |
% |
185 |
% |
152 |
% |
199 |
% |
|
Others |
14 |
% |
19 |
% |
30 |
% |
33 |
% |
42 |
% |
|
Total |
69 |
% |
75 |
% |
73 |
% |
66 |
% |
68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Table of Year-on-Year USD Revenue Growth Rates by
Quarter
|
|
YoY Growth rates |
|
Consolidated Net Revenues |
|
|
|
|
|
|
|
Q4'15 |
Q1'16 |
Q2'16 |
Q3'16 |
Q4'16 |
|
Brazil |
-6 |
% |
13 |
% |
41 |
% |
76 |
% |
92 |
% |
|
Argentina |
52 |
% |
2 |
% |
19 |
% |
4 |
% |
4 |
% |
|
Mexico |
6 |
% |
18 |
% |
15 |
% |
19 |
% |
8 |
% |
|
Venezuela |
-7 |
% |
-13 |
% |
31 |
% |
-22 |
% |
-10 |
% |
|
Others |
-8 |
% |
-1 |
% |
14 |
% |
33 |
% |
46 |
% |
|
Total |
12 |
% |
6 |
% |
29 |
% |
37 |
% |
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
The Company will host a conference call and audio webcast on
February 23, 2017 at 4:30 p.m. Eastern Time. The conference call
may be accessed by dialing +(970) 315-0420 or +(877) 303-7209
(Conference ID 65991410) and requesting inclusion in the call for
Mercado Libre. The live conference call can be accessed via audio
webcast at the investor relations section of the Company's website,
at http://investor.mercadolibre.com. An archive of the webcast will
be available for one week following the conclusion of the
conference call.
Definition of Selected Operational Metrics
Blended tax rate – Defined as income and asset tax expense as a
percentage of income before income and assets tax.
Free Cash Flow – Defined as cash flows from operating activities
less payment and advances for the acquisition of property,
equipment, intangible assets net of financial liabilities and
payment for acquired business net of cash acquired.
Foreign Exchange (“FX”) Neutral – Calculated by using the
average monthly exchange rate of each month of 2015 and applying it
to the corresponding months in the current year, so as to calculate
what the results would have been had exchange rates remained
constant. Intercompany allocations are excluded from this
calculation. These calculations do not include any other
macroeconomic effect such as local currency inflation effects or
any price adjustment to compensate local currency inflation or
devaluations.
Gross merchandise volume – Measure of the total U.S. dollar sum
of all transactions completed through the Mercado Libre
Marketplace, excluding motor vehicles, vessels, aircraft, real
estate, and services.
Total payment transactions – Measure of the number of all
transactions completed using MercadoPago.
Total volume of payments on marketplace - Measure of the total
U.S. dollar sum of all marketplace transactions paid for using
MercadoPago, excluding shipping and financing fees.
Total payment volume – Measure of total U.S. dollar sum of all
transactions paid for using MercadoPago.
Items sold – Measure of the number of items sold/purchased
through the Mercado Libre Marketplace.
Items shipped- Measure of the number of items that were
shipped through our shipping service.
Local Currency Growth Rates – Refer to FX Neutral definition
Net income margin – Defined as net income as a percentage of net
revenues.
New confirmed registered users – Measure of the number of new
users who have registered on the Mercado Libre platform (including
Mercado Pago) and confirmed their registration. Since July’12,
registration and confirmation take place in the same step of the
registration flow.
Operating margin – Defined as income from operations as a
percentage of net revenues.
Total confirmed registered users – Measure of the cumulative
number of users who have registered on the Mercado Libre platform
(including Mercado Pago) and confirmed their registration. Since
July ’12, registration and confirmation take place in the same step
of the registration flow.
Unique Buyers – New or existing buyers with at least one
purchase made in the period.
Unique Sellers – New or existing sellers with at least one sale
made in the period.
About Mercado Libre
Founded in 1999, Mercado Libre is Latin America's leading
e-commerce technology company. Through its primary platforms,
Mercado Libre.com and Mercado Pago.com, it provides solutions to
individuals and companies buying, selling, advertising, and paying
for goods and services online.
Mercado Libre.com serves millions of users and creates a market
for a wide variety of goods and services in an easy, safe and
efficient way. The site is among the top 50 in the world in terms
of page views and is the leading retail platform in unique visitors
in the major countries in which it operates according to metrics
provided by comScore Networks. The Company is listed on
NASDAQ (Nasdaq: MELI) following its initial public offering in
2007.
For more information about the Company visit:
http://investor.mercadolibre.com.
The Mercado Libre, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4193
Consolidated balance sheets(In
thousands of U.S. dollars, except par value)
|
December 31, |
|
December 31, |
|
|
2016 |
|
|
|
2015 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
234,140 |
|
|
$ |
166,881 |
|
Short-term investments |
|
253,321 |
|
|
|
202,112 |
|
Accounts
receivable, net |
|
25,435 |
|
|
|
28,428 |
|
Credit
cards receivable, net |
|
307,904 |
|
|
|
131,946 |
|
Loans
receivable, net |
|
6,283 |
|
|
|
— |
|
Prepaid
expenses |
|
15,060 |
|
|
|
6,007 |
|
Inventory |
|
1,103 |
|
|
|
222 |
|
Other
assets |
|
26,215 |
|
|
|
9,577 |
|
Total
current assets |
|
869,461 |
|
|
|
545,173 |
|
Non-current
assets: |
|
|
|
Long-term
investments |
|
153,803 |
|
|
|
187,621 |
|
Property
and equipment, net |
|
124,261 |
|
|
|
81,633 |
|
Goodwill |
|
91,797 |
|
|
|
86,545 |
|
Intangible assets, net |
|
26,277 |
|
|
|
28,991 |
|
Deferred
tax assets |
|
45,017 |
|
|
|
29,688 |
|
Other
assets |
|
56,819 |
|
|
|
43,955 |
|
Total
non-current assets |
|
497,974 |
|
|
|
458,433 |
|
Total
assets |
$ |
1,367,435 |
|
|
$ |
1,003,606 |
|
|
|
|
|
Liabilities and Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable and accrued expenses |
$ |
105,106 |
|
|
$ |
62,038 |
|
Funds
payable to customers |
|
370,693 |
|
|
|
203,247 |
|
Salaries
and social security payable |
|
48,898 |
|
|
|
32,918 |
|
Taxes
payable |
|
27,338 |
|
|
|
10,092 |
|
Loans
payable and other financial liabilities |
|
11,583 |
|
|
|
1,965 |
|
Other
liabilities |
|
6,359 |
|
|
|
7,667 |
|
Dividends
payable |
|
6,624 |
|
|
|
4,548 |
|
Total
current liabilities |
|
576,601 |
|
|
|
322,475 |
|
Non-current
liabilities: |
|
|
|
Salaries
and social security payable |
|
16,173 |
|
|
|
10,422 |
|
Loans
payable and other financial liabilities |
|
301,940 |
|
|
|
294,342 |
|
Deferred
tax liabilities |
|
34,059 |
|
|
|
27,049 |
|
Other
liabilities |
|
9,808 |
|
|
|
9,860 |
|
Total
non-current liabilities |
|
361,980 |
|
|
|
341,673 |
|
Total
liabilities |
$ |
938,581 |
|
|
$ |
664,148 |
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Common
stock, $0.001 par value, 110,000,000 shares authorized, |
|
|
|
44,157,364 and 44,156,854 shares issued and outstanding at December
31, |
|
|
|
2016 and
December 31, 2015, respectively |
$ |
44 |
|
|
$ |
44 |
|
Additional paid-in capital |
|
137,982 |
|
|
|
137,923 |
|
Retained
earnings |
|
550,641 |
|
|
|
440,770 |
|
Accumulated other comprehensive loss |
|
(259,813 |
) |
|
|
(239,279 |
) |
Total
Equity |
|
428,854 |
|
|
|
339,458 |
|
Total
Liabilities and Equity |
$ |
1,367,435 |
|
|
$ |
1,003,606 |
|
|
|
|
|
|
|
|
|
Consolidated statements of cash
flows(In thousands of U.S. dollars, except par
value)
|
|
Year Ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
Cash flows from
operations: |
|
|
|
|
|
|
Net
income attributable to MercadoLibre, Inc. Shareholders |
|
$ |
136,366 |
|
|
$ |
105,789 |
|
|
$ |
72,581 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Net
income attributable to Redeemable Noncontrolling Interest |
|
|
— |
|
|
|
— |
|
|
|
72 |
|
Unrealized Devaluation Loss, net |
|
|
4,967 |
|
|
|
14,717 |
|
|
|
13,808 |
|
Impairment of Long-Lived Assets |
|
|
13,717 |
|
|
|
16,226 |
|
|
|
49,496 |
|
Depreciation and amortization |
|
|
29,022 |
|
|
|
23,209 |
|
|
|
16,947 |
|
Accrued
interest |
|
|
(17,794 |
) |
|
|
(12,783 |
) |
|
|
(9,029 |
) |
Non cash
interest and convertible bonds amortization of debt discount and
amortization of debt issuance costs |
|
|
9,837 |
|
|
|
17,272 |
|
|
|
7,874 |
|
LTRP
accrued compensation |
|
|
22,983 |
|
|
|
10,213 |
|
|
|
11,852 |
|
Deferred
income taxes |
|
|
(6,188 |
) |
|
|
4,354 |
|
|
|
(20,237 |
) |
Changes
in assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(15,428 |
) |
|
|
(36,476 |
) |
|
|
(36,120 |
) |
Credit
cards receivable |
|
|
(180,592 |
) |
|
|
(109,139 |
) |
|
|
(45,521 |
) |
Prepaid
expenses |
|
|
(9,133 |
) |
|
|
(3,907 |
) |
|
|
(157 |
) |
Inventory |
|
|
(787 |
) |
|
|
(237 |
) |
|
|
— |
|
Other
assets |
|
|
(24,425 |
) |
|
|
(2,340 |
) |
|
|
(5,982 |
) |
Accounts
payable and accrued expenses |
|
|
47,980 |
|
|
|
63,668 |
|
|
|
68,780 |
|
Funds
payable to customers |
|
|
164,060 |
|
|
|
119,353 |
|
|
|
61,072 |
|
Other
liabilities |
|
|
(45 |
) |
|
|
1,765 |
|
|
|
1,675 |
|
Interest
received from investments |
|
|
15,719 |
|
|
|
9,686 |
|
|
|
9,682 |
|
Net cash
provided by operating activities |
|
|
190,259 |
|
|
|
221,370 |
|
|
|
196,793 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchase
of investments |
|
|
(3,501,283 |
) |
|
|
(1,949,769 |
) |
|
|
(2,577,130 |
) |
Proceeds
from sale and maturity of investments |
|
|
3,508,293 |
|
|
|
1,875,516 |
|
|
|
2,330,836 |
|
Payment
for acquired businesses, net of cash acquired |
|
|
(7,284 |
) |
|
|
(45,009 |
) |
|
|
(36,814 |
) |
Payment
of remaining amount from business acquisition |
|
|
— |
|
|
|
— |
|
|
|
(4,000 |
) |
Purchases
of intangible assets |
|
|
(431 |
) |
|
|
(1,746 |
) |
|
|
(857 |
) |
Changes
in principal loans receivable, net |
|
|
(6,599 |
) |
|
|
— |
|
|
|
— |
|
Advance
for property and equipment |
|
|
(8,412 |
) |
|
|
(23,380 |
) |
|
|
— |
|
Purchases
of property and equipment |
|
|
(68,527 |
) |
|
|
(39,150 |
) |
|
|
(34,426 |
) |
Net cash
used in investing activities |
|
|
(84,243 |
) |
|
|
(183,538 |
) |
|
|
(322,391 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Funds
received from the issuance of convertible notes |
|
|
— |
|
|
|
— |
|
|
|
330,000 |
|
Transaction costs from the issuance of convertible notes |
|
|
— |
|
|
|
— |
|
|
|
(8,084 |
) |
Purchase
of convertible note capped call |
|
|
— |
|
|
|
— |
|
|
|
(19,668 |
) |
Proceeds
from loans payable and other financial liabilities |
|
|
11,435 |
|
|
|
5,033 |
|
|
|
— |
|
Payments
on loans payable and other financing |
|
|
(6,684 |
) |
|
|
(9,059 |
) |
|
|
(7,704 |
) |
Dividends
paid |
|
|
(24,419 |
) |
|
|
(20,974 |
) |
|
|
(28,303 |
) |
Repurchase of Common Stock |
|
|
— |
|
|
|
(2,714 |
) |
|
|
(1,944 |
) |
Net cash (used in)
provided by financing activities |
|
|
(19,668 |
) |
|
|
(27,714 |
) |
|
|
264,297 |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
(19,089 |
) |
|
|
(66,381 |
) |
|
|
(55,840 |
) |
Net increase (decrease)
in cash and cash equivalents |
|
|
67,259 |
|
|
|
(56,263 |
) |
|
|
82,859 |
|
Cash and cash
equivalents, beginning of the year |
|
|
166,881 |
|
|
|
223,144 |
|
|
|
140,285 |
|
Cash and cash
equivalents, end of the year |
|
$ |
234,140 |
|
|
$ |
166,881 |
|
|
$ |
223,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of income(In
thousands of U.S. dollars, except for share data)
|
|
Year Ended December 31, |
|
|
Three Months Ended December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Net revenues |
|
$ |
844,396 |
|
|
$ |
651,790 |
|
|
$ |
556,536 |
|
|
|
$ |
256,275 |
|
|
$ |
180,732 |
|
|
Cost of net
revenues |
|
|
(307,538 |
) |
|
|
(214,994 |
) |
|
|
(158,978 |
) |
|
|
|
(93,546 |
) |
|
|
(63,162 |
) |
|
Gross profit |
|
|
536,858 |
|
|
|
436,796 |
|
|
|
397,558 |
|
|
|
|
162,729 |
|
|
|
117,570 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Product
and technology development |
|
|
(98,479 |
) |
|
|
(76,423 |
) |
|
|
(53,600 |
) |
|
|
|
(26,256 |
) |
|
|
(22,497 |
) |
|
Sales and
marketing |
|
|
(156,296 |
) |
|
|
(128,609 |
) |
|
|
(111,627 |
) |
|
|
|
(48,554 |
) |
|
|
(42,167 |
) |
|
General
and administrative |
|
|
(87,310 |
) |
|
|
(76,342 |
) |
|
|
(62,364 |
) |
|
|
|
(23,250 |
) |
|
|
(19,215 |
) |
|
Impairment of Long-Lived Assets |
|
|
(13,717 |
) |
|
|
(16,226 |
) |
|
|
(49,496 |
) |
|
|
|
— |
|
|
|
— |
|
|
Total
operating expenses |
|
|
(355,802 |
) |
|
|
(297,600 |
) |
|
|
(277,087 |
) |
|
|
|
(98,060 |
) |
|
|
(83,879 |
) |
|
Income from
operations |
|
|
181,056 |
|
|
|
139,196 |
|
|
|
120,471 |
|
|
|
|
64,669 |
|
|
|
33,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income and other financial gains |
|
|
35,442 |
|
|
|
20,561 |
|
|
|
15,336 |
|
|
|
|
10,250 |
|
|
|
5,792 |
|
|
Interest
expense and other financial losses |
|
|
(25,605 |
) |
|
|
(20,391 |
) |
|
|
(11,659 |
) |
|
|
|
(6,799 |
) |
|
|
(4,229 |
) |
|
Foreign
currency (losses) gains |
|
|
(5,565 |
) |
|
|
11,125 |
|
|
|
(2,352 |
) |
|
|
|
(501 |
) |
|
|
17,772 |
|
|
Net income before
income tax expense |
|
|
185,328 |
|
|
|
150,491 |
|
|
|
121,796 |
|
|
|
|
67,619 |
|
|
|
53,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(48,962 |
) |
|
|
(44,702 |
) |
|
|
(49,143 |
) |
|
|
|
(16,272 |
) |
|
|
(14,062 |
) |
|
Net income |
|
$ |
136,366 |
|
|
$ |
105,789 |
|
|
$ |
72,653 |
|
|
|
$ |
51,347 |
|
|
$ |
38,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
Income attributable to Redeemable Noncontrolling Interest |
|
|
— |
|
|
|
— |
|
|
|
72 |
|
|
|
|
— |
|
|
|
— |
|
|
Net income attributable
to MercadoLibre, Inc. shareholders |
|
$ |
136,366 |
|
|
$ |
105,789 |
|
|
$ |
72,581 |
|
|
|
$ |
51,347 |
|
|
$ |
38,964 |
|
|
|
|
Year Ended December 31, |
|
Three Months Ended December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
Basic
EPS |
|
|
|
|
|
|
|
|
|
|
|
Basic net
income attributable to MercadoLibre, Inc. |
|
|
|
|
|
|
|
|
|
|
|
Shareholders per common share |
|
$ |
3.09 |
|
$ |
2.40 |
|
$ |
1.63 |
|
$ |
1.16 |
|
$ |
0.88 |
|
Weighted
average of outstanding common shares |
|
|
44,157,251 |
|
|
44,155,680 |
|
|
44,153,884 |
|
|
44,157,355 |
|
|
44,156,800 |
|
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
Diluted
net income attributable to MercadoLibre, Inc. |
|
|
|
|
|
|
|
|
|
|
|
Shareholders per common share |
|
$ |
3.09 |
|
$ |
2.40 |
|
$ |
1.63 |
|
$ |
1.16 |
|
$ |
0.88 |
|
Weighted
average of outstanding common shares |
|
|
44,157,251 |
|
|
44,155,680 |
|
|
44,153,884 |
|
|
44,157,355 |
|
|
44,156,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends
declared per common share |
|
|
0.600 |
|
|
0.412 |
|
|
0.664 |
|
|
0.150 |
|
|
0.103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial results of reporting segments
|
|
Year Ended December 31, 2016 |
|
|
Brazil |
|
Argentina |
|
Mexico |
|
Venezuela |
|
Other Countries |
|
Total |
|
|
(In thousands) |
Net revenues |
|
$ |
455,024 |
|
|
$ |
262,252 |
|
|
$ |
46,332 |
|
|
$ |
37,185 |
|
|
$ |
43,603 |
|
|
$ |
844,396 |
|
Direct costs |
|
|
(270,922 |
) |
|
|
(152,103 |
) |
|
|
(40,951 |
) |
|
|
(17,732 |
) |
|
|
(31,549 |
) |
|
|
(513,257 |
) |
Impairment of
Long-lived Assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(13,717 |
) |
|
|
- |
|
|
|
(13,717 |
) |
Direct
contribution |
|
|
184,102 |
|
|
|
110,149 |
|
|
|
5,381 |
|
|
|
5,736 |
|
|
|
12,054 |
|
|
|
317,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
(136,366 |
) |
Income from
operations |
|
|
|
|
|
|
|
|
|
|
|
|
181,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income and other financial gains |
|
|
|
|
|
|
|
|
|
|
|
|
35,442 |
|
Interest
expense and other financial losses |
|
|
|
|
|
|
|
|
|
|
|
|
(25,605 |
) |
Foreign
currency losses |
|
|
|
|
|
|
|
|
|
|
|
|
(5,565 |
) |
Net income before
income tax expense |
|
|
|
|
|
|
|
|
|
|
|
$ |
185,328 |
|
|
|
Year Ended December 31, 2015 |
|
|
Brazil |
|
Argentina |
|
Mexico |
|
Venezuela |
|
Other
Countries |
|
Total |
|
|
(In thousands) |
Net revenues |
|
$ |
290,602 |
|
|
$ |
245,011 |
|
|
$ |
40,338 |
|
|
$ |
40,475 |
|
|
$ |
35,364 |
|
|
$ |
651,790 |
|
Direct costs |
|
|
(180,394 |
) |
|
|
(134,750 |
) |
|
|
(31,282 |
) |
|
|
(15,287 |
) |
|
|
(24,605 |
) |
|
|
(386,318 |
) |
Impairment of
Long-lived Assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(16,226 |
) |
|
|
- |
|
|
|
(16,226 |
) |
Direct
contribution |
|
|
110,208 |
|
|
|
110,261 |
|
|
|
9,056 |
|
|
|
8,962 |
|
|
|
10,759 |
|
|
|
249,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
(110,050 |
) |
Income from
operations |
|
|
|
|
|
|
|
|
|
|
|
|
139,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income and other financial gains |
|
|
|
|
|
|
|
|
|
|
|
|
20,561 |
|
Interest
expense and other financial losses |
|
|
|
|
|
|
|
|
|
|
|
|
(20,391 |
) |
Foreign
currency gain |
|
|
|
|
|
|
|
|
|
|
|
|
11,125 |
|
Net income before
income tax expense |
|
|
|
|
|
|
|
|
|
|
|
$ |
150,491 |
|
|
|
Three Months December 31, 2016 |
|
|
|
Brazil |
|
Argentina |
|
Mexico |
|
Venezuela |
|
Other Countries |
|
Total |
|
|
|
(In thousands) |
Net
revenues |
|
$ |
143,597 |
|
|
$ |
76,367 |
|
|
$ |
11,957 |
|
|
$ |
10,734 |
|
|
$ |
13,620 |
|
|
$ |
256,275 |
|
|
Direct
costs |
|
|
(82,150 |
) |
|
|
(46,886 |
) |
|
|
(11,947 |
) |
|
|
(5,041 |
) |
|
|
(10,268 |
) |
|
|
(156,292 |
) |
|
Impairment
of Long-lived Assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Direct
contribution |
|
|
61,447 |
|
|
|
29,481 |
|
|
|
10 |
|
|
|
5,693 |
|
|
|
3,352 |
|
|
|
99,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses and indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
(35,311 |
) |
|
Income from
operations |
|
|
|
|
|
|
|
|
|
|
|
|
64,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other financial gains |
|
|
|
|
|
|
|
|
|
|
|
|
10,250 |
|
|
Interest expense and other financial losses |
|
|
|
|
|
|
|
|
|
|
|
|
(6,798 |
) |
|
Foreign currency gain |
|
|
|
|
|
|
|
|
|
|
|
|
(503 |
) |
|
Net income
before income tax expense |
|
|
|
|
|
|
|
|
|
|
|
$ |
67,621 |
|
|
|
|
Three Months December 31, 2015 |
|
|
|
Brazil |
|
Argentina |
|
Mexico |
|
Venezuela |
|
Other Countries |
|
Total |
|
|
|
(In thousands) |
Net revenues |
|
$ |
74,951 |
|
|
$ |
73,515 |
|
|
$ |
11,030 |
|
|
$ |
11,946 |
|
|
$ |
9,290 |
|
|
$ |
180,732 |
|
|
Direct costs |
|
|
(52,988 |
) |
|
|
(42,203 |
) |
|
|
(10,107 |
) |
|
|
(4,787 |
) |
|
|
(8,178 |
) |
|
|
(118,263 |
) |
|
Impairment of
Long-lived Assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Direct
contribution |
|
|
21,963 |
|
|
|
31,312 |
|
|
|
923 |
|
|
|
7,159 |
|
|
|
1,112 |
|
|
|
62,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses and
indirect costs of net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
(28,777 |
) |
|
Income from
operations |
|
|
|
|
|
|
|
|
|
|
|
|
33,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income and other financial gains |
|
|
|
|
|
|
|
|
|
|
|
|
5,793 |
|
|
Interest
expense and other financial losses |
|
|
|
|
|
|
|
|
|
|
|
|
(4,229 |
) |
|
Foreign
currency gain |
|
|
|
|
|
|
|
|
|
|
|
|
17,772 |
|
|
Net income before
income tax expense |
|
|
|
|
|
|
|
|
|
|
|
$ |
53,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
To supplement our condensed consolidated
financial statements presented in accordance with U,S, GAAP, we use
free cash flows and foreign exchange (“FX”) neutral measures
as non-GAAP measures.
These non-GAAP measures should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with U,S, GAAP and may be different from
non-GAAP measures used by other companies, In addition, these
non-GAAP measures are not based on any comprehensive set of
accounting rules or principles, Non-GAAP measures have limitations
in that they do not reflect all of the amounts associated with our
results of operations as determined in accordance with U,S, GAAP,
These non-GAAP financial measures should only be used to evaluate
our results of operations in conjunction with the most comparable
U,S, GAAP financial measures.
Reconciliation of these non-GAAP financial
measures to the most comparable U,S, GAAP financial measures can be
found in the tables included in this quarterly report.
Non-GAAP financial measures are provided to
enhance investors’ overall understanding of our current financial
performance, Specifically, we believe that free cash flow provides
useful information to both management and investors by excluding
payments for the acquisition of property and equipment, of
intangible assets and of businesses net of cash acquired, that may
not be indicative of our core operating results, In addition, we
report free cash flows to investors because we believe that the
inclusion of this measure provides consistency in our financial
reporting.
Free cash flow represents cash from operating
activities less payment and advances for the acquisition of
property and equipment net of financial liabilities, intangible
assets and acquired businesses net of cash acquired, We consider
free cash flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by our operations after the purchases of property and
equipment, of intangible assets and of acquired businesses net of
cash acquired, A limitation of the utility of free cash flow as a
measure of financial performance is that it does not represent the
total increase or decrease in our cash balance for the period.
The following table shows a reconciliation of
Operating Cash Flows to Free Cash Flows:
|
|
|
Three-month Periods Ended |
|
|
December 31, |
|
(In millions) |
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
Net Cash provided by
Operating Activities |
$ |
42.6 |
|
|
$ |
110.1 |
|
|
Advance for property
and equipment |
|
(2.3 |
) |
|
|
(5.6 |
) |
|
Purchase of intangible
assets |
|
(0.4 |
) |
|
|
(0.2 |
) |
|
Purchase of property
and equipment |
|
(13.0 |
) |
|
|
(20.1 |
) |
|
Free cash flow |
|
26.9 |
|
|
|
84.2 |
|
|
(*) The table above may not total due to rounding.
The Company that reconciliation of FX neutral
measures to the most directly comparable GAAP measure provides
investors an overall understanding of our current financial
performance and its prospects for the future, Specifically, we
believe these non-GAAP measures provide useful information to both
management and investors by excluding the foreign currency exchange
rate impact that may not be indicative of our core operating
results and business outlook.
The FX neutral measures were calculated by using
the average monthly exchange rates for each month during 2015 and
applying them to the corresponding months in 2016, so as to
calculate what our results would have been had exchange rates
remained stable from one year to the next, The table below excludes
intercompany allocation FX effects, Finally, these measures do not
include any other macroeconomic effect such as local currency
inflation effects, the impact on impairment calculations or any
price adjustment to compensate local currency inflation or
devaluations.
The following table sets forth the FX neutral
measures related to our reported results of the operations for the
three months periods ended December 31, 2016 and 2015:
|
|
Three-months Periods Ended December 31,
(*) |
|
|
As reported |
|
FX Neutral Measures |
(In millions, except percentages) |
|
2016 |
|
|
|
2015 |
|
|
Percentage Change |
|
|
2016 |
|
|
|
2015 |
|
|
Percentage Change |
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
256.3 |
|
|
$ |
180.7 |
|
|
41.8 |
% |
|
$ |
304.1 |
|
|
$ |
180.7 |
|
|
68.3 |
% |
Cost of net
revenues |
|
(93.5 |
) |
|
|
(63.2 |
) |
|
47.9 |
% |
|
|
(108.7 |
) |
|
|
(63.2 |
) |
|
72.2 |
% |
Gross profit |
|
|
162.7 |
|
|
|
117.6 |
|
|
38.4 |
% |
|
|
195.4 |
|
|
|
117.6 |
|
|
66.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
(98.1 |
) |
|
|
(83.9 |
) |
|
16.9 |
% |
|
|
(120.9 |
) |
|
|
(83.9 |
) |
|
44.1 |
% |
Total
operating expenses |
|
(98.1 |
) |
|
|
(83.9 |
) |
|
16.9 |
% |
|
|
(120.9 |
) |
|
|
(83.9 |
) |
|
44.1 |
% |
Income from
operations |
|
64.7 |
|
|
|
33.7 |
|
|
91.8 |
% |
|
|
74.5 |
|
|
|
33.7 |
|
|
121.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The table above may not total due to
rounding.
CONTACT:
MercadoLibre, Inc.
Investor Relations
investor@mercadolibre.com
http://investor.mercadolibre.com
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