Adjusted EBITDA up 95.5% YoY to RMB196.0
millionAdjusted EBITDA margin expanded to 24.5% from 11.6% in prior
year period
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
first quarter ended March 31, 2018. The Company will hold a
conference call at 8:00 pm on Thursday, May 17, 2018, U.S. Eastern
Time to discuss the financial results. Dial-in details are provided
at the end of this release.
First Quarter 2018 Financial
Highlights (including hosting and related services &
MNS1 business)
- Revenues from hosting and related services increased by 13.3%
year over year to RMB800.8 million (US$127.7 million).
- Adjusted cash gross profit increased by 7.6% year over year to
RMB347.5 million (US$55.4 million). Adjusted cash gross margin
expanded to 43.4% from 37.5% in the same period of 2017.
- Operating profit improved to RMB56.4 million from an operating
loss of RMB72.1 million in the same period of 2017.
- Adjusted EBITDA increased by 95.5% year over year to RMB196.0
million (US$31.2 million). Adjusted EBITDA margin expanded to 24.5%
from 11.6% in the same period of 2017.
- Net cash generated from operating activities was RMB95.9
million (US$15.3 million) in the first quarter of 2018 compared to
RMB46.4 million in the same period of 2017.
The financial numbers of the same period of 2017
include hosting and related services and MNS business. The
year-over-year increase was partially driven by the disposal of the
MNS business in September 2017.
First Quarter 2018 Operational Highlights
- Hosting MRR2 per cabinet increased to RMB7,905 in the first
quarter of 2018 compared to RMB7,598 in the first quarter of
2017.
- Total cabinets under management decreased slightly to 29,035 as
of March 31, 2018 from 29,080 as of December 31, 2017. As of March
31, 2018, the Company had 23,839 cabinets in its self-built data
centers and 5,196 cabinets in its partnered data centers.
- Utilization rate was 70.0% in the first quarter of 2018
compared to 75.7% in the fourth quarter of 2017 due to the
incremental cabinet capacity the Company delivered at the end of
2017.
__________________
1MNS: Refers to managed network services.2Hosting MRR: Refers to
Monthly Recurring Revenues for the hosting business.
Mr. Alvin Wang, Chief Executive Officer and
President of the Company, stated, “We entered 2018 with accelerated
financial and operating performance in the first quarter. We are
pleased to see continued improvement on our results following our
successful business restructuring in 2017. During the quarter, the
demand for computing and storage capacity from both large and small
corporations in China continued to grow. To capitalize on the
market opportunities, we further expanded our data center network
while maintaining our industry-leading service quality. This not
only made us the clear choice of data center providers for our
clients, it also made us the ideal partner for world-class
technology leaders such as Microsoft Corp. With our long-term
partnership with Microsoft, we will continue to improve our
capabilities and capacities to deliver localized and customized
cloud solutions with optimal user experiences to Chinese customers
in the future.”
Ms. Sharon Liu, Chief Financial Officer of the
Company, commented, “We are delighted to sustain our strong
momentum and deliver another quarter of robust financial growth. In
the first quarter of 2018, our revenue from the hosting and related
services business increased by 13.3% year over year to RMB800.8
million, exceeding the high end of our previous guidance. More
importantly, as a result of our improved operating efficiency, we
recorded adjusted EBITDA of RMB196.0 million in the first quarter
of 2018, representing a year-over-year increase of 95.5%. As our
restructuring strategy to fully focus on our core hosting and
related services business continues to prove successful, we expect
our growth momentum to carry into the quarters ahead.”
First Quarter 2018 Financial
Results
To fully reflect the Company’s performance, all
analysis between “REVENUES” and “ADJUSTED EBITDA” presents 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 13.3% to RMB800.8 million (US$127.7 million) in the
first quarter of 2018 from RMB706.7 million in the same period of
2017 and increased by 4.6% from RMB765.8 million in the fourth
quarter of 2017. The increase was primarily due to increasing
demand from the Company’s new and existing customers.
GROSS PROFIT: Gross profit
increased by 10.5% to RMB227.9 million (US$36.3 million) in the
first quarter of 2018 from RMB206.3 million in the same period of
2017 and increased by 13.9% from RMB200.2 million in the fourth
quarter of 2017. Gross margin decreased slightly to 28.5% in the
first quarter of 2018 from 29.2% in the same period of 2017. The
decrease was mainly due to an increase in depreciation.
Adjusted cash gross profit,
which excludes depreciation, amortization, and share-based
compensation expenses, increased by 18.1% to RMB347.5 million
(US$55.4 million) in the first quarter of 2018 from RMB 294.3
million in the same period of 2017 and increased by 8.6% from
RMB320.1 million in the fourth quarter of 2017. Adjusted cash gross
margin expanded to 43.4% in the first quarter of 2018 from 41.6% in
the same period of 2017 and 41.8% in the previous quarter. The
increase was a result of cabinet resource management. Since the
first quarter of 2017, the Company eliminated approximately 1,000
lower-margin cabinets in partnered data centers, bringing the total
number of partnered cabinets to 5,196 in the first quarter of 2018
from 6,119 in the same period of
2017.
OPERATING EXPENSES: Total operating expenses
increased by 11.3% to RMB171.5 million (US$27.3 million) in the
first quarter of 2018 from RMB154.0 million in the same period of
2017 but decreased by 10.9% compared to the fourth quarter of 2017.
The year-over-year fluctuation was mainly caused by the increase of
office related expenses and personnel cost. The
quarter-over-quarter decrease was mainly caused by expenses
incurred and recorded for the disposal of the MNS business in the
fourth quarter of 2017.
Adjusted operating expenses, which exclude
share-based compensation expenses and changes in the fair value of
contingent purchase consideration payable, were RMB167.2 million
(US$26.7 million) in the first quarter of 2018 compared to RMB154.1
million in the same period of 2017 and RMB173.2 million in the
fourth quarter of 2017. As a percentage of net revenues, adjusted
operating expenses decreased to 20.9% in the first quarter of 2018
from 21.8% in the same period of 2017 and 22.6% in the previous
quarter. The decrease was primarily due to expense control measures
implemented.
Sales and marketing expenses increased by 21.2%
to RMB41.2 million (US$6.6 million) in the first quarter of 2018
from RMB34.0 million in the same period of 2017 and decreased from
RMB42.7 million in the fourth quarter of 2017. The
year-over-year increase was mainly driven by sales expansion.
Research and development expenses were RMB22.0
million (US$3.5 million) in the first quarter of 2018 compared to
RMB22.2 million in the same period of 2017 and RMB29.3 million in
the previous quarter. The quarter-over-quarter decrease was mainly
due to a drop in headcount and the enhancement of working
efficiency.
General and administrative expenses increased by
14.4% to RMB112.3 million (US$17.9 million) in the first quarter of
2018 from RMB98.2 million in the same period of 2017 and decreased
from RMB115.4 million in the previous quarter. The year-over-year
increase was primarily due to the expansion of the business and the
increase of office related expenses.
ADJUSTED EBITDA: Adjusted
EBITDA for the first quarter of 2018 increased by 28.3% to RMB196.0
million (US$31.2 million) from RMB152.7 million in the same period
of 2017 and increased by 14.6% compared to the previous quarter.
Adjusted EBITDA for the first quarter of 2018 excludes share-based
compensation expenses of RMB 6.6 million (US$1.0 million) and
changes in the fair value of contingent purchase consideration
payable, which was a gain of RMB2.3 million (US$0.4 million).
Adjusted EBITDA margin expanded to 24.5% in the first quarter of
2018 from 21.6% in the same period of 2017 and 22.3% in the fourth
quarter of 2017.
NET PROFIT/LOSS: Net profit for
the first quarter of 2018 was RMB34.7 million (US$5.5 million)
compared to a net loss of RMB116.8 million in the same period of
2017. The improvement in net profit was mainly driven by the strong
performance of the Company’s hosting and related services and its
improved operating efficiency following the disposal of the MNS
business in September 2017.
PROFIT/LOSS PER SHARE: Diluted
profit per share was RMB0.05 (US$0.01) in the first quarter of
2018, which represents the equivalent of RMB0.30 (US$0.06) per
American Depositary Share ("ADS"). Each ADS represents six ordinary
shares. Diluted profit per share is calculated using net profit
divided by the weighted average number of shares.
As of March 31, 2018, the Company's cash
and cash equivalents and short-term investments were
RMB2.38 billion (US$379.9 million).
Net cash generated from operating
activities was RMB95.9 million (US$15.3 million) in the
first quarter of 2018.
Recent Developments
On March 14, 2018, the Company announced that it
has extended its long-term partnership with Microsoft Corp. to
provide world-class public cloud services to Chinese customers.
Financial Outlook
The following forecast reflects the Company’s
current and preliminary view on the market and its operational
conditions, which is subject to change.
For the second quarter of 2018, the Company
expects net revenues to be in the range of RMB810 million to RMB830
million compared to hosting and related service revenues of RMB743
million in the prior year period. Adjusted EBITDA is expected to be
in the range of RMB200 million to RMB220 million compared to RMB171
million in the prior year period.
Conference Call
The Company will hold a conference call at 8:00 pm on Thursday,
May 17, 2018 U.S. Eastern Time, or 8:00 am on Friday, May 18, 2018
Beijing Time, to discuss the financial results.
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Participants may access the call by dialing the following
numbers: |
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United States Toll
Free: |
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+1-855-500-8701 |
International: |
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+65-6713-5440 |
China Domestic: |
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400-120-0654 |
Hong Kong: |
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+852-3018-6776 |
Conference ID: |
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9383759 |
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The replay
will be accessible through May 25, 2018 by dialing the following
numbers: |
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United States Toll
Free: |
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+1-855-452-5696 |
International: |
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+61-2-9003-4211 |
Conference ID: |
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9383759 |
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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 cash gross profit,
adjusted cash gross margin, adjusted operating expenses, adjusted
EBITDA, adjusted EBITDA margin, 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 RMB6.2726
to US$1.00, the noon buying rate in effect on March 31, 2018 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, cloud 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. 21Vianet operates in more than 30
cities throughout China, servicing a diversified and loyal base of
nearly 5,000 hosting and related 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, 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.
Investor Relations Contacts:
21Vianet Group, Inc.Rene Jiang+86 10 8456
2121IR@21Vianet.com
Julia Jiang+86 10 8456 2121IR@21Vianet.com
ICR, Inc.Jack Wang+1 (646)
405-4922IR@21Vianet.com
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21VIANET GROUP, INC. |
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CONSOLIDATED BALANCE SHEETS |
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(Amount in thousands of Renminbi (“RMB”) and US
dollars (“US$”)) |
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As of |
As of |
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December 31, 2017 |
March 31, 2018 |
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RMB |
RMB |
US$ |
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(Audited) |
(Unaudited) |
(Unaudited) |
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Assets |
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Current assets: |
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Cash and
cash equivalents |
1,949,631 |
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1,850,440 |
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295,004 |
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Restricted cash |
242,494 |
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254,576 |
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40,585 |
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Accounts
and notes receivable, net |
455,811 |
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506,475 |
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80,744 |
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Short-term investments |
548,890 |
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532,689 |
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84,923 |
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Prepaid
expenses and other current assets |
934,460 |
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994,780 |
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158,595 |
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Amount
due from related parties |
114,256 |
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93,294 |
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14,873 |
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Total current assets |
4,245,542 |
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4,232,254 |
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674,724 |
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Non-current assets: |
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Property
and equipment, net |
3,319,424 |
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3,282,857 |
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523,365 |
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Intangible assets, net |
401,115 |
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382,416 |
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60,966 |
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Land use
rights, net |
163,671 |
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162,713 |
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25,940 |
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Goodwill |
989,530 |
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989,530 |
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157,754 |
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Long-term investments |
510,926 |
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504,679 |
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80,458 |
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Amount
due from related parties |
20,210 |
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20,385 |
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3,250 |
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Restricted cash |
3,344 |
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3,221 |
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514 |
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Deferred
tax assets |
172,818 |
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157,693 |
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25,140 |
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Other
non-current assets |
81,581 |
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142,036 |
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22,644 |
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Total non-current assets |
5,662,619 |
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5,645,530 |
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900,031 |
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Total assets |
9,908,161 |
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9,877,784 |
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1,574,755 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Short-term bank borrowings |
50,000 |
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69,999 |
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11,159 |
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Accounts
and notes payable |
252,892 |
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293,135 |
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46,733 |
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Accrued
expenses and other payables |
657,133 |
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593,652 |
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94,642 |
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Deferred
revenue |
55,753 |
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35,248 |
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5,619 |
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Advances
from customers |
403,244 |
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477,239 |
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76,083 |
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Income
taxes payable |
13,309 |
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28,456 |
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4,537 |
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Amounts
due to related parties |
55,675 |
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59,386 |
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9,468 |
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Current
portion of long-term bank borrowings |
70,289 |
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70,289 |
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11,206 |
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Current
portion of capital lease obligations |
201,315 |
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194,449 |
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31,000 |
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Current
portion of deferred government grant |
4,574 |
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4,574 |
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729 |
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Current
portion of bonds payable |
11,139 |
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10,939 |
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1,744 |
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Total current liabilities |
1,775,323 |
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1,837,366 |
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292,920 |
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Non-current liabilities: |
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Long-term bank borrowings |
187,638 |
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187,638 |
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29,914 |
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Unrecognized tax benefits |
16,511 |
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16,701 |
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2,663 |
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Deferred
tax liabilities |
190,873 |
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188,539 |
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30,058 |
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Non-current portion of capital lease obligations |
600,882 |
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611,232 |
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97,445 |
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Non-current portion of deferred government grant |
17,861 |
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16,112 |
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2,569 |
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Bonds
payable |
1,918,069 |
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1,848,263 |
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294,657 |
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Total non-current liabilities |
2,931,834 |
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2,868,485 |
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457,306 |
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Shareholders' equity |
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Treasury
stock |
(337,683 |
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(337,683 |
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(53,835 |
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Ordinary
shares |
46 |
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46 |
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7 |
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Additional paid-in capital |
8,980,407 |
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8,991,665 |
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1,433,483 |
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Accumulated other comprehensive loss |
(2,673 |
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(77,733 |
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(12,392 |
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Statutory reserves |
38,736 |
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38,969 |
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6,213 |
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Accumulated deficit |
(3,629,300 |
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(3,596,693 |
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(573,397 |
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Total 21Vianet Group, Inc. shareholders’
equity |
5,049,533 |
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5,018,571 |
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800,079 |
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Noncontrolling interest |
151,471 |
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153,362 |
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24,450 |
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Total shareholders' equity |
5,201,004 |
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5,171,933 |
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824,529 |
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Total liabilities and shareholders' equity |
9,908,161 |
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9,877,784 |
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1,574,755 |
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21VIANET GROUP, INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Amount in thousands of Renminbi (“RMB”) and US
dollars (“US$”) except for number of shares and per share
data) |
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Three months
ended |
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March 31, 2017 |
December 31, 2017 |
March 31, 2018 |
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RMB |
RMB |
RMB |
US$ |
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(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
Net revenues |
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Hosting
and related services |
706,711 |
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765,814 |
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800,765 |
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127,661 |
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Managed
network services |
155,466 |
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- |
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- |
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- |
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Total
net revenues |
862,177 |
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765,814 |
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800,765 |
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127,661 |
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Cost of
revenues |
(681,700 |
) |
(565,645 |
) |
(572,863 |
) |
(91,328 |
) |
Gross profit |
180,477 |
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200,169 |
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227,902 |
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36,333 |
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Operating expenses |
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Sales
and marketing |
(65,832 |
) |
(42,702 |
) |
(41,232 |
) |
(6,573 |
) |
Research
and development |
(38,387 |
) |
(29,340 |
) |
(22,030 |
) |
(3,512 |
) |
General
and administrative |
(135,803 |
) |
(115,351 |
) |
(112,340 |
) |
(17,910 |
) |
(Allowance) reversal for doubtful debt |
(15,465 |
) |
(1,147 |
) |
1,855 |
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296 |
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Changes
in the fair value of contingent purchase consideration payable |
2,867 |
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(3,834 |
) |
2,284 |
|
364 |
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Total operating expenses |
(252,620 |
) |
(192,374 |
) |
(171,463 |
) |
(27,335 |
) |
Operating (loss) profit |
(72,143 |
) |
7,795 |
|
56,439 |
|
8,998 |
|
Interest
income |
8,252 |
|
10,821 |
|
8,527 |
|
1,359 |
|
Interest
expense |
(37,027 |
) |
(50,836 |
) |
(51,542 |
) |
(8,217 |
) |
Impairment of long-term investment |
- |
|
139 |
|
- |
|
- |
|
Gain on
disposal of subsidiaries |
- |
|
677,084 |
|
- |
|
- |
|
Other
income |
4,826 |
|
3,260 |
|
22,161 |
|
3,533 |
|
Other
expense |
(1,562 |
) |
(232 |
) |
(1,526 |
) |
(243 |
) |
Foreign
exchange (loss) gain |
(5,481 |
) |
4,328 |
|
44,841 |
|
7,149 |
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(Loss) gain before income taxes and gain (loss) from equity
method investments |
(103,135 |
) |
652,359 |
|
78,900 |
|
12,579 |
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Income
tax (expenses) benefits |
(16,127 |
) |
127,478 |
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(34,080 |
) |
(5,433 |
) |
Gain
(loss) from equity method investments |
2,425 |
|
17,732 |
|
(10,089 |
) |
(1,608 |
) |
Net (loss)
profit |
(116,837 |
) |
797,569 |
|
34,731 |
|
5,538 |
|
Net loss
(profit) attributable to noncontrolling interest |
17,043 |
|
1,073 |
|
(1,891 |
) |
(301 |
) |
Net (loss)
profit attributable to ordinary shareholders |
(99,794 |
) |
798,642 |
|
32,840 |
|
5,237 |
|
|
|
|
|
|
|
|
|
|
(Loss)
profit per share |
|
|
|
|
Basic |
(0.17 |
) |
1.19 |
|
0.05 |
|
0.01 |
|
Diluted |
(0.17 |
) |
1.18 |
|
0.05 |
|
0.01 |
|
Shares
used in (loss) profit per share computation |
|
|
|
|
Basic* |
678,649,016 |
|
671,279,121 |
|
672,741,909 |
|
672,741,909 |
|
Diluted* |
678,649,016 |
|
675,505,879 |
|
677,158,404 |
|
677,158,404 |
|
|
|
|
|
|
(Loss) profit per ADS
(6 ordinary shares equal to 1 ADS) |
|
|
|
|
Basic |
(1.02 |
) |
7.14 |
|
0.30 |
|
0.06 |
|
Diluted |
(1.02 |
) |
7.08 |
|
0.30 |
|
0.06 |
|
|
|
|
|
|
* Shares used in (loss) profit 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$”)) |
|
|
|
|
|
|
|
|
Three months
ended |
|
|
March 31, 2017 |
December 31, 2017 |
March 31, 2018 |
|
|
RMB |
RMB |
RMB |
US$ |
|
Gross
profit |
180,477 |
|
200,169 |
|
227,902 |
|
36,333 |
|
|
Plus:
depreciation and amortization |
142,810 |
|
119,814 |
|
119,562 |
|
19,061 |
|
|
Plus:
share-based compensation expenses |
(222 |
) |
84 |
|
14 |
|
2 |
|
|
Adjusted cash gross profit |
323,065 |
|
320,067 |
|
347,478 |
|
55,396 |
|
|
Adjusted cash gross margin |
37.5% |
|
41.8% |
|
43.4% |
|
43.4% |
|
|
Operating expenses |
(252,620 |
) |
(192,374 |
) |
(171,463 |
) |
(27,335 |
) |
|
Plus:
share-based compensation expenses |
4,545 |
|
15,317 |
|
6,555 |
|
1,045 |
|
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(2,867 |
) |
3,834 |
|
(2,284 |
) |
(364 |
) |
|
Adjusted operating expenses |
(250,942 |
) |
(173,223 |
) |
(167,192 |
) |
(26,654 |
) |
|
Operating (loss) profit |
(72,143 |
) |
7,795 |
|
56,439 |
|
8,998 |
|
|
Plus:
depreciation and amortization |
170,953 |
|
143,966 |
|
135,290 |
|
21,568 |
|
|
Plus:
share-based compensation expenses |
4,323 |
|
15,401 |
|
6,569 |
|
1,047 |
|
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(2,867 |
) |
3,834 |
|
(2,284 |
) |
(364 |
) |
|
Adjusted EBITDA |
100,266 |
|
170,996 |
|
196,014 |
|
31,249 |
|
|
Adjusted EBITDA margin |
11.6% |
|
22.3% |
|
24.5% |
|
24.5% |
|
|
|
|
|
|
|
|
21VIANET GROUP, INC. |
|
SUPPLEMENTARY DISCLOSURE FOR HOSTING AND
RELATED SERVICES |
|
(Amount in thousands of Renminbi (“RMB”) and US
dollars (“US$”)) |
|
|
|
|
|
|
|
|
Three months
ended |
|
|
March 31, 2017 |
December 31, 2017 |
March 31, 2018 |
|
GAAP Disclosure |
RMB |
RMB |
RMB |
US$ |
|
Net revenues |
706,711 |
|
765,814 |
|
800,765 |
|
127,661 |
|
|
Cost of
revenues |
(500,430 |
) |
(565,645 |
) |
(572,863 |
) |
(91,328 |
) |
|
Gross profit |
206,281 |
|
200,169 |
|
227,902 |
|
36,333 |
|
|
Sales
and marketing |
(34,015 |
) |
(42,702 |
) |
(41,232 |
) |
(6,573 |
) |
|
Research
and development |
(22,206 |
) |
(29,340 |
) |
(22,030 |
) |
(3,512 |
) |
|
General
and administrative |
(98,214 |
) |
(115,351 |
) |
(112,340 |
) |
(17,910 |
) |
|
(Allowance) reversal for doubtful debt |
(2,440 |
) |
(1,147 |
) |
1,855 |
|
296 |
|
|
Changes
in the fair value of contingent purchase consideration payable |
2,867 |
|
(3,834 |
) |
2,284 |
|
364 |
|
|
Total operating expenses |
(154,008 |
) |
(192,374 |
) |
(171,463 |
) |
(27,335 |
) |
|
Operating profit |
52,273 |
|
7,795 |
|
56,439 |
|
8,998 |
|
|
|
|
|
|
|
|
Non-GAAP
disclosure |
|
|
|
|
|
Gross
profit |
206,281 |
|
200,169 |
|
227,902 |
|
36,333 |
|
|
Plus:
depreciation and amortization |
88,146 |
|
119,814 |
|
119,562 |
|
19,061 |
|
|
Plus:
share-based compensation expenses |
(138 |
) |
84 |
|
14 |
|
2 |
|
|
Adjusted cash gross profit |
294,289 |
|
320,067 |
|
347,478 |
|
55,396 |
|
|
Adjusted cash gross margin |
41.6% |
|
41.8% |
|
43.4% |
|
43.4% |
|
|
Operating expenses |
(154,008 |
) |
(192,374 |
) |
(171,463 |
) |
(27,335 |
) |
|
Plus:
share-based compensation expenses |
2,819 |
|
15,317 |
|
6,555 |
|
1,045 |
|
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(2,867 |
) |
3,834 |
|
(2,284 |
) |
(364 |
) |
|
Adjusted operating expenses |
(154,056 |
) |
(173,223 |
) |
(167,192 |
) |
(26,654 |
) |
|
Operating profit |
52,273 |
|
7,795 |
|
56,439 |
|
8,998 |
|
|
Plus:
depreciation and amortization |
100,633 |
|
143,966 |
|
135,290 |
|
21,568 |
|
|
Plus:
share-based compensation expenses |
2,681 |
|
15,401 |
|
6,569 |
|
1,047 |
|
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(2,867 |
) |
3,834 |
|
(2,284 |
) |
(364 |
) |
|
Adjusted EBITDA |
152,720 |
|
170,996 |
|
196,014 |
|
31,249 |
|
|
Adjusted EBITDA margin |
21.6% |
|
22.3% |
|
24.5% |
|
24.5% |
|
|
|
|
|
|
|
|
21VIANET GROUP, INC. |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
|
(Amount in thousands of Renminbi (“RMB”) and US
dollars (“US$”)) |
|
|
|
|
|
|
|
|
Three months
ended |
|
|
March 31,2017 |
December 31, 2017 |
March 31, 2018 |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
Net
(loss) profit |
(116,837 |
) |
797,569 |
|
34,731 |
|
5,538 |
|
|
Adjustments to reconcile net (loss) profit to net cash
generated from operating
activities: |
|
|
|
|
|
Depreciation and amortization |
170,953 |
|
143,966 |
|
135,290 |
|
21,568 |
|
|
Stock-based compensation expenses |
4,323 |
|
15,513 |
|
6,569 |
|
1,047 |
|
|
Gain from disposal of subsidiaries |
- |
|
(677,084 |
) |
- |
|
- |
|
|
Others |
15,894 |
|
(148,681 |
) |
(47,256 |
) |
(7,535 |
) |
|
Changes in operating assets and
liabilities |
|
|
|
|
|
Accounts and notes receivable |
(80,864 |
) |
32,070 |
|
(49,722 |
) |
(7,927 |
) |
|
Prepaid expenses and other current assets |
(85,428 |
) |
(23,235 |
) |
(92,181 |
) |
(14,696 |
) |
|
Accounts and notes payable |
60,490 |
|
(38,841 |
) |
40,243 |
|
6,416 |
|
|
Accrued expenses and other payables |
(4,161 |
) |
92,272 |
|
(25,300 |
) |
(4,033 |
) |
|
Deferred revenue |
(43,074 |
) |
8,674 |
|
(20,505 |
) |
(3,269 |
) |
|
Advances from customers |
111,899 |
|
(23,683 |
) |
73,995 |
|
11,797 |
|
|
Others |
13,155 |
|
(21,413 |
) |
39,989 |
|
6,375 |
|
|
Net cash generated from operating
activities |
46,350 |
|
157,127 |
|
95,853 |
|
15,281 |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
Purchases of property and equipment |
(99,432 |
) |
(74,603 |
) |
(91,027 |
) |
(14,512 |
) |
|
Purchases of intangible assets |
(9,386 |
) |
(4,062 |
) |
(1,887 |
) |
(301 |
) |
|
Payments
for investments |
(207,003 |
) |
(275,766 |
) |
(14,473 |
) |
(2,307 |
) |
|
Payments
for assets acquisition, net of cash acquired |
(15,053 |
) |
- |
|
- |
|
- |
|
|
Proceeds
from other investing activities |
- |
|
100,000 |
|
26,654 |
|
4,249 |
|
|
Net cash used
in investing activities |
(330,874 |
) |
(254,431 |
) |
(80,733 |
) |
(12,871 |
) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
Net
proceeds from issuance of 2020 bonds |
- |
|
612,723 |
|
- |
|
- |
|
|
Proceeds
from bank borrowings |
59,038 |
|
- |
|
69,999 |
|
11,159 |
|
|
Repayments of bank borrowings |
(96,974 |
) |
(1,587,871 |
) |
(50,000 |
) |
(7,971 |
) |
|
Payments
for capital lease |
(32,055 |
) |
(67,239 |
) |
(29,287 |
) |
(4,669 |
) |
|
Payments
for other financing activities |
(74,523 |
) |
(9,925 |
) |
(19,650 |
) |
(3,132 |
) |
|
Net cash used
in financing activities |
(144,514 |
) |
(1,052,312 |
) |
(28,938 |
) |
(4,613 |
) |
|
Effect of
foreign exchange rate changes on cash, cash
equivalents and restricted
cash |
(17,255 |
) |
(4,967 |
) |
(73,414 |
) |
(11,703 |
) |
|
Net decrease in
cash, cash equivalents and restricted
cash |
(446,293 |
) |
(1,154,583 |
) |
(87,232 |
) |
(13,906 |
) |
|
Cash, cash
equivalents and restricted cash at beginning of
period |
3,294,523 |
|
3,350,052 |
|
2,195,469 |
|
350,009 |
|
|
Cash, cash
equivalents and restricted cash at end of
period |
2,848,230 |
|
2,195,469 |
|
2,108,237 |
|
336,103 |
|
|
|
|
|
|
|
|
|
|
|
|
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
March 31, 2017 and December 31,2017 by excluding the movement of
restricted cash of RMB71.6 million and RMB1,619.3 million
respectively. |
|
|
|
|
|
|
|
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