BEIJING, March 4, 2015 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2014.
Fourth Quarter 2014 Financial Highlights1
Full Year 2014 Financial Highlights1
1. The reporting currency of the Company is Renminbi ("RMB"). For the convenience of the reader, certain amounts throughout the release are presented in US dollars ("$"). Unless otherwise noted, all conversions from RMB to US$ are translated at the noon buying rate of US$1.00 to RMB6.2046 on December 31, 2014 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. |
Fourth Quarter and Full Year 2014 Operating Highlights
James Qin, Chief Executive Officer of Autohome, stated, "As we conclude our first full fiscal year as a public company we are very pleased with what we have accomplished, having delivered best-in-class operational and financial performance. In short, 2014 was an impressive year filled with many important achievements for Autohome. We ended the year with new highs for both quarterly and annual revenue performance, growing 91.5% and 75.3% for each respective period. Further, we have a fast growing dealer network in the industry, reaching 17,080 dealer subscribers in the fourth quarter of 2014, and we are continuing to gain market share in this area. This positions us to benefit from these important business partnerships and to drive both dealer subscriptions and dealer advertising revenues. Also, we made great progress in expanding our mobile business and have fully transitioned to having both mobile and PC oriented operations. Lastly, we successfully built out a strong online transaction platform, the Autohome Mall, with its proven capability to facilitate transactions for automakers and dealers. A well-established platform, together with our broadest user base and strong brand equity, positions us well on the way to reach our goal to be the number one automobile transaction facilitator in the online ecosystem in China. By all accounts, this was a fruitful year for Autohome.
"As we look ahead, we are very excited about 2015 and our future prospects. We will continue to move quickly, work hard to leverage the important investments we have made, and ensure we stay at the forefront of our industry. We have a strong foundation on which to build and believe we are well positioned to drive sustainable and profitable growth over the long-term."
Nicholas Chong, Chief Financial Officer, commented, "We are greatly encouraged by what I would characterize as the stronger-than-ever results we achieved during the fourth quarter and full year 2014. We remain proud of our ability to drive strong increases in both revenue and profitability as well as to consistently generate strong cash to fund our future growth. It is important to note that we were pleased with the successful follow-on offering completed in November 2014 with overwhelming demand from the investors. With such encouragement, we will remain keenly focused on building out a diversified business and maintaining an efficient cost base, as we continue to maximize shareholder value over the long-term."
Detailed Overview of Financial Results for Fourth Quarter and Full Year 2014
Key Financial Results
(In RMB Millions except for per share data) |
4Q2013 |
4Q2014 |
% Change |
FY2013 |
FY2014 |
% Change |
Net Revenues |
386.0 |
739.1 |
91.5% |
1,216.5 |
2,132.9 |
75.3% |
Operating Profit |
149.5 |
301.1 |
101.4% |
554.9 |
904.2 |
63.0% |
Net Income |
122.7 |
249.6 |
103.4% |
456.2 |
748.7 |
64.1% |
Adjusted Net Income2 |
132.3 |
269.5 |
103.6% |
487.2 |
809.9 |
66.2% |
Diluted Earnings Per Share3 |
1.16 |
2.19 |
88.8% |
4.37 |
6.64 |
51.9% |
Net Cash Provided by Operating Activities |
322.6 |
487.2 |
51.0% |
593.9 |
1,023.7 |
72.4% |
2. Adjusted net income is defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. For more information on this and other non-GAAP financial measures, please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this release. |
||||||
3. Each ordinary share equals one ADS. |
Unaudited Fourth Quarter 2014 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2014 increased 91.5% to RMB739.1 million ($119.1 million) from RMB386.0 million in the corresponding period in 2013. The increase was due to increases in both the Company's advertising services revenues and dealer subscription services revenues.
Cost of Revenues
Cost of revenues for the fourth quarter of 2014 increased 40.0% to RMB122.9 million ($19.8 million) from RMB87.8 million in the corresponding period in 2013, primarily due to increases in value-added taxes and surcharges, depreciation and bandwidth and internet data center (IDC) costs. The cost of revenues included share-based compensation expense of RMB2.3 million ($0.4 million) and RMB1.6 million for the fourth quarter of 2014 and 2013, respectively.
Operating Expenses
Operating expenses for the fourth quarter of 2014 increased 111.9% to RMB315.1 million ($50.8 million) from RMB148.7 million in the corresponding period in 2013. This growth was due to increases in sales and marketing expenses, product development expenses and general and administrative expenses as the Company has been reinvesting for future growth opportunities. As a percentage of net revenues, operating expenses for the fourth quarter of 2014 increased to 42.6% from 38.5% in the corresponding period in 2013.
Operating Profit
Operating profit for the fourth quarter of 2014 increased 101.4% to RMB301.1 million ($48.5 million) from RMB149.5 million in the corresponding period in 2013.
Net Income and EPS
Net income for the fourth quarter of 2014 increased 103.4% to RMB249.6 million ($40.2 million) from RMB122.7 million in the corresponding period in 2013. Basic and diluted earnings per share and per ADS ("EPS") for the fourth quarter of 2014 were RMB2.29 ($0.37) and RMB2.19 ($0.35), respectively, compared to basic and diluted EPS in the corresponding period in 2013 of RMB1.23 and RMB1.16, respectively.
Adjusted Net Income and Non-GAAP EPS
Adjusted net income, defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, for the fourth quarter of 2014 increased 103.6% to RMB269.5 million ($43.4 million) from RMB132.3 million in the corresponding period in 2013. Non-GAAP basic and diluted EPS for the fourth quarter of 2014 were RMB2.47 ($0.40) and RMB2.37 ($0.38), respectively, compared to Non-GAAP basic and diluted EPS in the corresponding period in 2013 of RMB1.33 and RMB1.25, respectively.
Unaudited Full Year 2014 Financial Results
Net Revenues
Net revenues in 2014 increased 75.3% to RMB2,132.9 million ($343.8 million) from RMB1,216.5 million in 2013. The growth was due to increases in both the Company's advertising services revenues and dealer subscription services revenues.
Cost of Revenues
Cost of revenues in 2014 increased 51.2% to RMB381.5 million ($61.5 million) from RMB252.2 million in 2013, primarily due to increases in value-added taxes and surcharges, content related costs, bandwidth and IDC costs and depreciation. The cost of revenues included share-based compensation expense of RMB8.0 million ($1.3 million) and RMB6.5 million in 2014 and 2013, respectively.
Operating Expenses
Operating expenses in 2014 increased 106.9% to RMB847.2 million ($136.5 million) from RMB409.4 million in 2013. This was due to increases in sales and marketing expenses, product development expenses and general and administrative expenses. As a percentage of net revenues, operating expenses in 2014 increased to 39.7% from 33.7% in the corresponding period in 2013.
Operating Profit
Operating profit in 2014 increased 63.0% to RMB904.2 million ($145.7 million) from RMB554.9 million in 2013.
Net Income and EPS
Net income in 2014 increased 64.1% to RMB748.7 million ($120.7 million) from RMB456.2 in 2013. Basic and diluted earnings per share and per ADS ("EPS") in 2014 were RMB7.01 ($1.13) and RMB6.64 ($1.07), respectively, compared to basic and diluted EPS in the corresponding period in 2013 of RMB4.57 and RMB4.37, respectively.
Adjusted Net Income and Non-GAAP EPS
Adjusted net income, defined as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, in 2014 increased 66.2% to RMB809.9 million ($130.5 million) from RMB487.2 million in 2013. Non-GAAP basic and diluted EPS in 2014 were RMB7.59 ($1.22) and RMB7.18 ($1.16), respectively, compared to Non-GAAP basic and diluted EPS in 2013 of RMB4.88 and RMB4.67, respectively.
Balance Sheet and Cash Flow
As of December 31, 2014, the Company had cash and cash equivalents and term deposits of RMB2,772.2 million ($446.8 million), which included the net proceeds from our follow-on offering in November 2014. Net cash provided by operating activities in 2014 was RMB1,023.7 million ($165.0 million), compared to RMB593.9 million in 2013.
Recent Developments
Business Outlook
Autohome currently expects to generate net revenues in the range of RMB573 million ($92.4 million) to RMB602 million ($97.0 million) in the first quarter of fiscal year 2015, representing a 67.5% to 76.0% year-over-year increase.
This forecast reflects the Company's current and preliminary view on the market and operating conditions, which are subject to change.
Conference Call Information
The Company will host an earnings conference call at 7:00 AM on Wednesday, March 4, 2015, U.S. Eastern Time (8:00 PM on Wednesday, March 4, 2015, Beijing Time).
Dial-in details for the earnings conference call are as follows:
United States: +1-855-298-3404
Hong Kong: +852-5808-3202
China Domestic: 400-120-0539
United Kingdom: 0800-015-9725
International: +1-631-514-2526
Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 8185279.
A replay of the conference call may be accessed by phone at the following numbers until March 11, 2015:
United States: +1-866-846-0868
International: +61-2-9641-7900
Passcode: 8185279
Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn .
About Autohome Inc.
Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China. Through its two websites, autohome.com.cn and che168.com, the Company provides comprehensive, independent and interactive content to automobile buyers and owners. Autohome.com.cn ranked first among China's automotive websites and automotive channels of internet portals in terms of average daily unique visitors, average daily time spent per user and average daily page views in 2014, according to iResearch, a third-party research firm. The Company's ability to reach a large and engaged user base of automobile consumers has made Autohome the preferred platform for automakers and dealers to conduct their advertising campaigns. Automakers typically utilize its online advertising services for brand promotion, new model releases and sales promotions. Its dealer subscription services allow dealers to market their inventory and services through Autohome's websites, extending the reach of their physical showrooms to potentially millions of internet users in China. For further information, please visit www.autohome.com.cn .
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things, Autohome's business outlook, Autohome's strategic and operational plans and quotations from management in this announcement contain forward-looking statements. Autohome may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report 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 Autohome'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: Autohome's goals and strategies; Autohome's future business development, results of operations and financial condition; the expected growth of the online automobile advertising market in China; Autohome's ability to attract and retain users and advertisers and further enhance its brand recognition; Autohome's expectations regarding demand for and market acceptance of its products and services; competition in the online automobile advertising industry; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Autohome's filings with the SEC. All information provided in this press release is as of the date of this press release, and Autohome does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement net income presented in accordance with U.S. GAAP, we use Adjusted Net Income, Non-GAAP basic and diluted EPS and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income as net income excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions. We define Non-GAAP basic and diluted EPS as Adjusted Net Income divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted EBITDA as net income before income tax expense, depreciation expenses of property and equipment and amortization expenses of intangible assets and interest expense, excluding share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance, in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess our core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.
For investor and media inquiries, please contact:
Edith Kwan
Investor Relations
Autohome Inc.
Tel.: +86-10-5987-1535
Email: ir@autohome.com.cn
Cara O'Brien
FTI Consulting, Inc.
Tel.: +852-3768-4537
Email: cara.obrien@fticonsulting.com
AUTOHOME INC. |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||||
(Amount in thousands, except per share data) |
|||||||||||
For three months ended December 31, |
For year ended December 31, |
||||||||||
2013 |
2014 |
2013 |
2014 |
||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
Net revenues: |
|||||||||||
Advertising services |
276,974 |
521,711 |
84,085 |
894,937 |
1,499,516 |
241,678 |
|||||
Dealer subscription services |
109,022 |
217,403 |
35,039 |
321,611 |
633,433 |
102,091 |
|||||
Total net revenues |
385,996 |
739,114 |
119,124 |
1,216,548 |
2,132,949 |
343,769 |
|||||
Cost of revenues |
(87,818) |
(122,935) |
(19,814) |
(252,236) |
(381,498) |
(61,486) |
|||||
Gross profit |
298,178 |
616,179 |
99,310 |
964,312 |
1,751,451 |
282,283 |
|||||
Operating expenses: |
|||||||||||
Sales and marketing expenses |
(96,231) |
(220,327) |
(35,510) |
(245,228) |
(559,070) |
(90,106) |
|||||
General and administrative expenses |
(28,741) |
(42,926) |
(6,918) |
(82,529) |
(129,751) |
(20,912) |
|||||
Product development expenses |
(23,707) |
(51,872) |
(8,360) |
(81,651) |
(158,395) |
(25,529) |
|||||
Operating profit |
149,499 |
301,054 |
48,522 |
554,904 |
904,235 |
145,736 |
|||||
Interest income |
2,526 |
10,461 |
1,686 |
11,082 |
34,682 |
5,590 |
|||||
Interest expense |
(402) |
- |
- |
(414) |
- |
- |
|||||
Other income, net |
408 |
1,673 |
270 |
2,884 |
2,544 |
410 |
|||||
Income before income taxes |
152,031 |
313,188 |
50,478 |
568,456 |
941,461 |
151,736 |
|||||
Income tax expense |
(29,354) |
(63,631) |
(10,255) |
(112,294) |
(192,781) |
(31,071) |
|||||
Net income |
122,677 |
249,557 |
40,223 |
456,162 |
748,680 |
120,665 |
|||||
Earnings per share for ordinary share |
|||||||||||
Basic |
1.23 |
2.29 |
0.37 |
4.57 |
7.01 |
1.13 |
|||||
Diluted |
1.16 |
2.19 |
0.35 |
4.37 |
6.64 |
1.07 |
|||||
Shares used in earnings per share computation: |
|||||||||||
Class A ordinary shares |
|||||||||||
Basic |
30,806,998 |
43,043,094 |
43,043,094 |
31,109,214 |
38,633,284 |
38,633,284 |
|||||
Diluted |
105,824,049 |
113,815,561 |
113,815,561 |
104,329,226 |
112,831,585 |
112,831,585 |
|||||
Class B ordinary shares |
|||||||||||
Basic |
68,788,940 |
66,063,657 |
66,063,657 |
68,788,940 |
68,102,019 |
68,102,019 |
|||||
Diluted |
68,788,940 |
66,063,657 |
66,063,657 |
68,788,940 |
68,102,019 |
68,102,019 |
|||||
Other comprehensive |
|||||||||||
Foreign currency |
822 |
(2,360) |
(380) |
1,403 |
3,946 |
636 |
|||||
Comprehensive income |
123,499 |
247,197 |
39,843 |
457,565 |
752,626 |
121,301 |
AUTOHOME INC. |
|||||||||||
RECONCILIATION OF NON-GAAP AND GAAP RESULTS |
|||||||||||
(Amount in thousands, except per share data) |
|||||||||||
For three months ended December 31, |
For year ended December 31, |
||||||||||
2013 |
2014 |
2013 |
2014 |
||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
Net income |
122,677 |
249,557 |
40,223 |
456,162 |
748,680 |
120,665 |
|||||
Plus: income tax expense |
29,354 |
63,631 |
10,255 |
112,294 |
192,781 |
31,071 |
|||||
Plus: depreciation of property and |
7,901 |
9,734 |
1,569 |
25,548 |
35,084 |
5,655 |
|||||
Plus: amortization of intangible |
1,580 |
1,477 |
238 |
6,250 |
6,053 |
976 |
|||||
Plus: Interest expense |
402 |
- |
- |
414 |
- |
- |
|||||
EBITDA |
161,914 |
324,399 |
52,285 |
600,668 |
982,598 |
158,367 |
|||||
Plus: share-based compensation |
8,524 |
18,810 |
3,032 |
25,608 |
56,666 |
9,133 |
|||||
Adjusted EBITDA |
170,438 |
343,209 |
55,317 |
626,276 |
1,039,264 |
167,500 |
|||||
Net income |
122,677 |
249,557 |
40,223 |
456,162 |
748,680 |
120,665 |
|||||
Plus: amortization of acquired |
1,139 |
1,139 |
184 |
5,459 |
4,554 |
734 |
|||||
Plus: share-based compensation |
8,524 |
18,810 |
3,032 |
25,608 |
56,666 |
9,133 |
|||||
Adjusted Net Income |
132,340 |
269,506 |
43,439 |
487,229 |
809,900 |
130,532 |
|||||
Non-GAAP Earnings per share for ordinary |
|||||||||||
Basic |
1.33 |
2.47 |
0.40 |
4.88 |
7.59 |
1.22 |
|||||
Diluted |
1.25 |
2.37 |
0.38 |
4.67 |
7.18 |
1.16 |
|||||
Shares used in earnings per |
|||||||||||
Class A ordinary shares |
|||||||||||
Basic |
30,806,998 |
43,043,094 |
43,043,094 |
31,109,214 |
38,633,284 |
38,633,284 |
|||||
Diluted |
105,824,049 |
113,815,561 |
113,815,561 |
104,329,226 |
112,831,585 |
112,831,585 |
|||||
Class B ordinary shares |
|||||||||||
Basic |
68,788,940 |
66,063,657 |
66,063,657 |
68,788,940 |
68,102,019 |
68,102,019 |
|||||
Diluted |
68,788,940 |
66,063,657 |
66,063,657 |
68,788,940 |
68,102,019 |
68,102,019 |
|||||
AUTOHOME INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Amount in thousands, except as noted) |
||||||||
As of December 31, |
As of December 31 |
|||||||
2013 |
2014 |
|||||||
RMB |
RMB |
US$ |
||||||
(Audited) |
(Unaudited) |
(Unaudited) |
||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
1,138,613 |
1,054,416 |
169,941 |
|||||
Restricted cash |
245,000 |
- |
- |
|||||
Term deposits |
- |
1,717,775 |
276,855 |
|||||
Accounts receivable |
465,712 |
736,695 |
118,734 |
|||||
Other current assets |
49,940 |
131,880 |
21,255 |
|||||
Total current assets |
1,899,265 |
3,640,766 |
586,785 |
|||||
Non-current assets: |
||||||||
Property and equipment, net |
57,897 |
74,882 |
12,069 |
|||||
Goodwill and intangible assets, net |
1,549,639 |
1,543,678 |
248,796 |
|||||
Other non-current assets |
6,149 |
19,189 |
3,093 |
|||||
Total non-current assets |
1,613,685 |
1,637,749 |
263,958 |
|||||
Total assets |
3,512,950 |
5,278,515 |
850,743 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accrued expenses and other payables |
324,094 |
524,534 |
84,540 |
|||||
Advance from customers |
2,340 |
42,530 |
6,855 |
|||||
Deferred revenue |
213,240 |
438,797 |
70,723 |
|||||
Income tax payable |
20,204 |
74,763 |
12,050 |
|||||
Payable for repurchase of common stock |
227,015 |
- |
- |
|||||
Other current liabilities |
2,925 |
33 |
5 |
|||||
Total current liabilities |
789,818 |
1,080,657 |
174,173 |
|||||
Non-current liabilities: |
||||||||
Other liabilities |
29,041 |
24,058 |
3,877 |
|||||
Deferred tax liabilities |
481,727 |
508,377 |
81,935 |
|||||
Total non-current liabilities |
510,768 |
532,435 |
85,812 |
|||||
Total liabilities |
1,300,586 |
1,613,092 |
259,985 |
|||||
Shareholders' equity: |
||||||||
Total shareholders' equity |
2,212,364 |
3,665,423 |
590,758 |
|||||
Total liabilities and shareholders' equity |
3,512,950 |
5,278,515 |
850,743 |
|||||
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