21Vianet Group, Inc. Reports Fourth Quarter and Full Year 2011 Financial Results
4Q11 Net Revenues Up 61.3% YOY to
4Q11 Adjusted EBITDA Up 73.0% YOY to
4Q11 Adjusted Net Profit Up 52.5% YOY to
Live Conference Call to be Held at
Fourth Quarter 2011 Financial Highlights
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Net revenues increased by 61.3% to
RMB318.3 million (US$50.6 million ) fromRMB197.3 million in the comparative period in 2010. -
Adjusted EBITDA1 increased by 73.0% to
RMB65.1 million (US$10.3 million ) fromRMB37.6 million in the comparative period in 2010. - Adjusted EBITDA margin2 increased to 20.5% from 19.1% in the comparative period in 2010.
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Adjusted net profit3 increased by 52.5% to
RMB46.3 million (US$7.4 million ) fromRMB30.4 million in the comparative period in 2010.
Full Year 2011 Financial Highlights
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Net revenues increased by 94.4% to
RMB1.0 billion (US$162.2 million ) fromRMB525.2 million in 2010. -
Adjusted EBITDA increased by 149.9% to
RMB209.0 million (US$33.2 million ) fromRMB83.7 million in 2010. - Adjusted EBITDA margin increased to 20.5% from 15.9% in 2010.
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Adjusted net profit increased by 185.9% to
RMB170.0 million (US$27.0 million ) fromRMB59.5 million in 2010.
Mr.
"We remain committed to further expanding our services and capacity as well as streamlining our business operations. During the quarter, we enhanced our revenue growth capabilities by further increasing our hosting capacity as well as network service capacity with the acquisition of
Mr.
Fourth Quarter 2011 Financial Results
REVENUES: Net revenues for the fourth quarter of 2011 increased by 61.3% to
Net revenues from hosting and related services increased by 57.2% to
Net revenues from managed network services increased by 66.6% to
GROSS PROFIT: For the fourth quarter of 2011, gross profit increased by 82.6% to
Adjusted gross profit, which excludes share-based compensation expenses of
Adjusted gross margin increased to 30.2%, compared to 28.5% in the comparative period in 2010. The increase in adjusted gross margin was primarily due to the continued revenue mix shift towards a higher percentage of self-built data centers, which carry slightly higher gross margins relative to partnered data centers.
OPERATING EXPENSES: Total operating expenses were
Sales and marketing expenses increased to
General and administrative expenses decreased to
Research and development expenses increased to
Change in the fair value of contingent purchase consideration payable was
Adjusted operating expenses, which excludes share-based compensation expenses and the changes in the fair value of contingent purchase consideration payable, increased to
ADJUSTED EBITDA: Adjusted EBITDA for the fourth quarter of 2011 increased by 73.0% to
NET PROFIT/LOSS: Net profit for the fourth quarter of 2011 was
Adjusted net profit for the fourth quarter of 2011 increased by 52.5% to
EARNING/LOSS PER SHARE: Diluted earnings per ordinary share for the fourth quarter of 2011 were
As of
Adjusted earnings per share is calculated using adjusted net profit, which excludes share-based compensation expenses, amortization of intangible assets derived from acquisitions, change in the fair value of contingent purchase consideration payable and related deferred tax impact, reversal of unrecognized tax benefit and outside tax basis difference as discussed above to divide the weighted average shares number.
BALANCE SHEET: As of
Fourth Quarter 2011 Operational Highlights
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Monthly Recurring Revenues ("MRR") per cabinet increased to
RMB9,700 fromRMB9 ,400 in the third quarter of 2011. -
Total cabinets under management increased to 7,816 as of
December 31, 2011 from 7,335 as ofSeptember 30, 2011 , with 4,055 cabinets in the Company's self-built data centers and 3,761 cabinets in its partnered data centers. - Utilization rate was stable at 80.7% in the fourth quarter 2011 compared to 81.5% in the third quarter of 2011.
- Churn rate was 0.85% in the fourth quarter of 2011, compared to 0.80% in the third quarter of 2011. Top 20 customers' churn rate remained at 0%.
- The largest customer represented 4.1% of total net revenues.
Full Year 2011 Financial Performance
For the full year of 2011, net revenue increased by 94.4% to
Financial Outlook
For the first quarter of 2012, the Company expects net revenues to be in the range of
Conference Call
The Company will hold a conference call on
United States: | +1-646-254-3515 |
International Toll Free: | +1-855-500-8701 |
China Domestic: | 400-1200654 |
Hong Kong: | +852-3051-2745 |
Conference ID: | # 48256412 |
The replay will be accessible through
United States: | +1-718-354-1232 |
International Toll Free: | +1-866-214-5335 |
Conference ID: | # 48256412 |
A webcast of the conference call will be available through the Company's investor relations website at http://ir.21vianet.com.
Non-GAAP Disclosure
In evaluating its business, 21Vianet considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Exchange Rate
This press release contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars, in this press release, were made at a rate of
About 21Vianet
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the first quarter of 2012 and quotations from management in this announcement, as well as 21Vianet's strategic and operational plans, contain forward-looking statements. 21Vianet may also make written or oral forward-looking statements in its reports filed with, or furnished to, the
1 Adjusted EBITDA is non-GAAP financial measure, which is defined as EBITDA excluding share-based compensation expenses and changes in the fair value of contingent purchase consideration payable.
2 Adjusted EBITDA margin is non-GAAP financial measure, which is defined as adjusted EBITDA as a percentage of total net revenues.
3 Adjusted net profit/loss is non-GAAP financial measure, which is defined as net profit/loss from continuing operations excluding share-based compensation expenses, amortization of intangible assets derived from acquisitions, changes in the fair value of contingent purchase consideration payable and related deferred tax impact, and reversal of unrecognized tax benefits and outside tax basis difference.
4 Due to the Company's IPO on
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CONSOLIDATED BALANCE SHEETS | |||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||
As of |
As of |
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RMB | RMB | US$ | |
(Audited) | (Unaudited) | (Unaudited) | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | 83,256 | 410,389 | 65,204 |
Restricted cash | 4,441 | 4,578 | 727 |
Accounts receivable, net | 76,373 | 147,624 | 23,455 |
Short term investment | -- | 894,540 | 142,128 |
Prepaid expenses and other current assets | 14,369 | 48,924 | 7,773 |
Deferred tax assets | 2,055 | 4,872 | 774 |
Amount due from related parties | 13,463 | 50,114 | 7,962 |
Total current assets | 193,957 | 1,561,041 | 248,023 |
Non-current assets: | |||
Property and equipment, net | 197,015 | 453,883 | 72,115 |
Intangible assets, net | 157,086 | 159,439 | 25,332 |
Deferred tax assets | 7,358 | 12,773 | 2,029 |
Goodwill | 170,171 | 217,436 | 34,547 |
Investment | -- | 8,200 | 1,303 |
Total non-current assets | 531,630 | 851,731 | 135,326 |
Total assets | 725,587 | 2,412,772 | 383,349 |
Liabilities and Shareholders' (Deficit) Equity | |||
Current liabilities: | |||
Short term bank borrowings | 35,000 | 100,000 | 15,888 |
Accounts payable | 49,792 | 105,080 | 16,696 |
Notes payable | 4,441 | 4,578 | 727 |
Accrued expenses and other payables | 30,962 | 111,197 | 17,666 |
Advances from customers | 17,316 | 23,238 | 3,692 |
Income tax payable | 3,545 | 5,634 | 895 |
Amounts due to related parties | 53,679 | 96,618 | 15,351 |
Current portion of capital lease obligations | 15,824 | 26,012 | 4,133 |
Total current liabilities | 210,559 | 472,357 | 75,048 |
Non-current liabilities: | |||
Amounts due to related parties | 126,331 | 124,493 | 19,780 |
Non-current portion of capital lease obligations | 58,190 | 73,896 | 11,741 |
Unrecognized tax benefits | 5,575 | 26,801 | 4,258 |
Deferred tax liabilities | 37,949 | 39,682 | 6,305 |
Deferred government grant | 5,400 | 5,819 | 925 |
Total non-current liabilities | 233,445 | 270,691 | 43,009 |
Commitments and contingencies | |||
Mezzanine equity | 991,110 | -- | -- |
Shareholders' (deficit) equity | |||
Treasury stock | -- | (168,018) | (26,695) |
Ordinary shares | 7 | 23 | 4 |
Additional paid-in capital | 512,225 | 3,277,658 | 520,767 |
Accumulated other comprehensive income (loss) | 1,474 | (54,779) | (8,704) |
Statutory reserves | 14,143 | 15,837 | 2,516 |
Accumulated deficit | (1,357,747) | (1,418,167) | (225,324) |
Total |
(829,898) | 1,652,554 | 262,564 |
Non-controlling interest | 120,371 | 17,170 | 2,728 |
Total shareholders' (deficit) equity | (709,527) | 1,669,724 | 265,292 |
Total liabilities, mezzanine equity and shareholders' (deficit) equity | 725,587 | 2,412,772 | 383,349 |
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||
Three months ended | Year ended | ||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Net revenues | |||||||
Hosting and related services | 111,475 | 164,814 | 175,247 | 27,844 | 374,946 | 614,612 | 97,652 |
Managed network services | 85,837 | 96,831 | 143,030 | 22,725 | 150,257 | 406,317 | 64,557 |
Total net revenues | 197,312 | 261,645 | 318,277 | 50,569 | 525,203 | 1,020,929 | 162,209 |
Cost of revenues | (149,094) | (190,071) | (230,222) | (36,579) | (396,858) | (744,371) | (118,269) |
Gross profit | 48,218 | 71,574 | 88,055 | 13,990 | 128,345 | 276,558 | 43,940 |
Operating expenses | -- | -- | -- | ||||
Sales and marketing | (16,441) | (20,894) | (25,458) | (4,045) | (51,392) | (80,885) | (12,851) |
General and administrative | (217,023) | (24,643) | (24,418) | (3,880) | (282,298) | (82,926) | (13,176) |
Research and development | (5,833) | (9,396) | (10,020) | (1,592) | (19,924) | (34,657) | (5,506) |
Changes in the fair value of contingent purchase consideration payable | (7,537) | 54,895 | (19,979) | (3,174) | (7,537) | (63,185) | (10,039) |
Total operating expenses | (246,834) | (38) | (79,875) | (12,691) | (361,151) | (261,653) | (41,572) |
Operating profit (loss) | (198,616) | 71,536 | 8,180 | 1,299 | (232,806) | 14,905 | 2,368 |
Interest income | 322 | 7,051 | 4,348 | 691 | 580 | 14,939 | 2,374 |
Interest expense | (777) | (1,241) | (705) | (112) | (2,793) | (4,398) | (699) |
Other income | 639 | 395 | 602 | 96 | 1,152 | 1,943 | 309 |
Other expense | (367) | (65) | (244) | (39) | (906) | (520) | (83) |
Foreign exchange gain | (634) | 24,195 | 6,734 | 1,070 | 1,646 | 32,747 | 5,203 |
Profit (loss) from continuing operations before income taxes | (199,433) | 101,871 | 18,915 | 3,005 | (233,127) | 59,616 | 9,472 |
Income tax (expense) benefit | 587 | (14,186) | (7,372) | (1,171) | (1,588) | (13,677) | (2,173) |
Net profit (loss) from continuing operations | (198,846) | 87,685 | 11,543 | 1,834 | (234,715) | 45,939 | 7,299 |
Loss from discontinued operations | -- | -- | -- | -- | (12,952) | -- | -- |
Net profit (loss) from continuing operations | (198,846) | 87,685 | 11,543 | 1,834 | (247,667) | 45,939 | 7,299 |
Net income attributable to non-controlling interest | (6,291) | (6,141) | (8,586) | (1,364) | (7,722) | (27,495) | (4,369) |
Net profit (loss) attributable to the Company's ordinary shareholders | (205,137) | 81,544 | 2,957 | 470 | (255,389) | 18,444 | 2,930 |
Earnings (loss) per share | |||||||
Basic | (2.87) | 0.24 | 0.01 | 0.001 | (3.57) | 0.07 | 0.01 |
Diluted | (2.87) | 0.23 | 0.01 | 0.001 | (3.57) | 0.06 | 0.01 |
Shares used in earnings (loss) per share computation | |||||||
Basic* | 71,526,320 | 338,719,421 | 322,761,801 | 322,761,801 | 71,526,320 | 259,595,677 | 259,595,677 |
Diluted* | 71,526,320 | 354,085,623 | 332,991,032 | 332,991,032 | 71,526,320 | 316,807,661 | 316,807,661 |
Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS) | |||||||
EPS - Basic | (17.22) | 1.44 | 0.06 | 0.01 | (21.42) | 0.42 | 0.06 |
EPS - Diluted | (17.22) | 1.38 | 0.06 | 0.01 | (21.42) | 0.36 | 0.06 |
* Shares used in earnings/ADS per share computation were computed under weighted average method. |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | ||||||||
Three months ended | Year ended | |||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||
Gross profit | 48,218 | 71,574 | 88,055 | 13,991 | 128,345 | 276,558 | 43,940 | |
Plus: share-based compensation expense | 487 | 356 | 578 | 92 | 4,645 | 2,157 | 343 | |
Plus: amortization of intangible assets derived from acquisitions | 7,461 | 6,741 | 7,344 | 1,167 | 9,000 | 28,388 | 4,510 | |
Adjusted gross profit | 56,166 | 78,671 | 95,977 | 15,250 | 141,990 | 307,103 | 48,793 | |
Adjusted gross margin | 28.47% | 30.07% | 30.16% | 30.16% | 27.04% | 30.08% | 30.08% | |
Operating expenses | (246,834) | (38) | (79,875) | (12,691) | (361,151) | (261,653) | (41,572) | |
Plus: share-based compensation expense | 213,545 | 13,525 | 9,875 | 1,569 | 273,236 | 39,802 | 6,324 | |
Plus: changes in the fair value of contingent purchase consideration payable | 7,537 | (54,895) | 19,979 | 3,174 | 7,537 | 63,185 | 10,039 | |
Adjusted operating expenses | (25,752) | (41,408) | (50,021) | (7,948) | (80,378) | (158,666) | (25,209) | |
Net profit (loss) from continuing operations | (198,846) | 87,685 | 11,543 | 1,834 | (234,715) | 45,939 | 7,299 | |
Plus: share-based compensation expense | 214,032 | 13,881 | 10,453 | 1,661 | 277,881 | 41,959 | 6,667 | |
Plus: amortization of intangible assets derived from acquisitions | 7,461 | 6,741 | 7,344 | 1,167 | 9,000 | 28,388 | 4,510 | |
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact | 7,537 | (46,661) | 16,982 | 2,698 | 7,537 | 53,707 | 8,533 | |
Plus: reversal of unrecognized tax benefits and outside tax basis difference | 182 | -- | -- | -- | (249) | -- | -- | |
Adjusted net profit from continuing operations | 30,366 | 61,646 | 46,322 | 7,360 | 59,454 | 169,993 | 27,009 | |
Adjusted net margin | 15.4% | 23.6% | 14.6% | 14.6% | 11.3% | 16.7% | 16.7% | |
Operating profit (loss) | (198,616) | 71,536 | 8,180 | 1,300 | (232,806) | 14,905 | 2,368 | |
Plus: depreciation | 6,763 | 16,022 | 18,772 | 2,983 | 19,673 | 58,873 | 9,354 | |
Plus: amortization | 7,929 | 7,198 | 7,732 | 1,228 | 11,372 | 30,104 | 4,783 | |
Plus: share-based compensation expense | 214,032 | 13,881 | 10,453 | 1,661 | 277,881 | 41,959 | 6,667 | |
Plus: changes in the fair value of contingent purchase consideration payable | 7,537 | (54,895) | 19,979 | 3,174 | 7,537 | 63,185 | 10,039 | |
Adjusted EBITDA | 37,645 | 53,742 | 65,116 | 10,346 | 83,657 | 209,026 | 33,211 | |
Adjusted EBITDA margin | 19.1% | 20.5% | 20.5% | 20.5% | 15.9% | 20.5% | 20.5% | |
Adjusted net profit from continuing operations | 30,366 | 61,646 | 46,322 | 7,360 | 59,454 | 169,993 | 27,009 | |
Less: Net income attributable to non-controlling interest | (6,291) | (6,141) | (8,586) | (1,364) | (7,722) | (27,495) | (4,369) | |
Adjusted net profit attributable to the Company's ordinary shareholders | 24,075 | 55,505 | 37,736 | 5,996 | 51,732 | 142,498 | 22,640 | |
Adjusted earnings per share | ||||||||
Basic | 0.34 | 0.16 | 0.12 | 0.02 | 0.72 | 0.55 | 0.09 | |
Diluted | 0.34 | 0.16 | 0.12 | 0.02 | 0.72 | 0.47 | 0.07 | |
Shares used in adjusted earnings per share computation: | ||||||||
Basic* | 71,526,320 | 338,719,421 | 322,761,801 | 322,761,801 | 71,526,320 | 259,558,631 | 259,558,631 | |
Diluted* | 71,526,320 | 338,719,421 | 322,761,801 | 322,761,801 | 71,526,320 | 302,796,593 | 302,796,593 | |
Earnings per ADS (6 ordinary shares equal to 1 ADS) | ||||||||
EPS - Basic | 2.04 | 0.96 | 0.72 | 0.12 | 4.32 | 3.30 | 0.54 | |
EPS - Diluted | 2.04 | 0.96 | 0.72 | 0.12 | 4.32 | 2.82 | 0.42 | |
* Shares used in adjusted earnings/ADS per share computation were computed under weighted average method. |
CONTACT: Investor Relations Contact:Source: 21VianetICR, Inc. Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com
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