SHANGHAI, December 11, 2014 /PRNewswire/ -- eHi Car Services Limited ("eHi" or the "Company") (NYSE: EHIC), a leading car rentals and car services provider in China, today announced its unaudited financial results for the third fiscal quarter ended September 30, 2014. In November 2014, eHi completed its initial public offering of 10,000,000 American depositary shares ("ADSs"), each representing two Class A common shares of the Company, on the New York Stock Exchange along with private placements concurrent with the offering.
Third Quarter 2014 Financial and Operating Highlights
Three months ended Sep. 30 |
Year-Over-Year |
||
(RMB '000) |
2013 |
2014 |
Comparison |
Car rentals |
98,491 |
155,512 |
57.9% |
Car services |
49,849 |
64,603 |
29.6% |
Total Net Revenues |
148,340 |
220,115 |
48.4% |
[1] The Company's business is conducted in China and substantially all of its revenues are denominated in RMB. However, this earnings announcement contains translations of RMB amounts into U.S. dollars at a rate of USD1.00 equal to RMB6.138 solely for the convenience of the reader. |
[2] Non-GAAP adjusted EBITDA is defined as net income or loss before depreciation and amortization, share-based compensation, interest expenses, interest income and provision for income taxes. For more information, refer to |
[3] "Period-end fleet size" refers to the aggregate number of vehicles in the Company's car rentals and car services fleets as of the last day of a given period to which the Company holds legal title, including vehicles that the Company has written off in accordance with its accounting policy and vehicles that are currently missing but have not been written off. |
[4] "Average available fleet size" is calculated by dividing the aggregate number of days in which the Company's fleet was in operation during a given period by the total number of days during the same period. In determining the size of the Company's fleet in operation, eHi includes all vehicles in its car rentals and car services fleets except for vehicles that have been written off in accordance with its accounting policy and vehicles that have not been consistently made available for rent and that which it may consider to dispose when appropriate opportunities arise. |
[5] "Fleet utilization rate" refers to the aggregate transaction days for the Company's car rental fleet during a given period divided by the aggregate days the car rental fleet was in operation during the same period. |
[6] "RevPAC" refers to average daily net revenue per available car, which is calculated by dividing the net revenues during a given period by the aggregate number of days in which the Company's fleet was in operation during the same period. |
Mr. Ray Zhang, eHi's chief executive officer, said, "This is an exciting time for eHi as we turn from our successful listing on the New York Stock Exchange last month and look to implement our overall growth strategy, while working closely with our strategic partners, Enterprise and Ctrip. We believe our business model provides us with ideal flexibility and scalability to capture the emerging car rentals and car services market opportunities in China, which are driven by evolving demands from both consumer and corporate users."
Mr. Colin Sung, the Company's chief financial officer, said, "Our third quarter results reflect the rapid overall growth we have managed for the past 11 quarters and are in line with our revenue projections as we expand our operations and seek to maintain our industry-leading operating efficiency and fleet utilization rate. Our revenue increases this quarter were driven by our fleet expansion and broader geographic coverage. Furthermore, we narrowed our net loss on a year-over-year basis."
Third Quarter Results
Net revenues for the third quarter of 2014 were RMB220.1 million (US$35.9 million), up 48.4% year over year, which was primarily attributable to increases in net revenues from both car rentals and car services.
Revenues from car rentals for the third quarter of 2014 were RMB155.5 million (US$25.3 million), up 57.9% year over year, primarily driven by an increase in the Company's average available fleet size.
Revenues from car services for the third quarter of 2014 were RMB64.6 million (US$10.5 million), up 29.6% year over year, primarily driven by increased demand from the Company's new and existing corporate customers.
Vehicle operating expenses for the third quarter of 2014 were RMB183.0 million (US$29.8 million), up 29.6% year over year, primarily due to increases in labor, insurance and depreciation expenses.
Selling, general and administrative expenses for the third quarter of 2014 were RMB42.3 million (US$6.9 million), up 3.0% year over year, primarily due to certain employee related costs.
Loss from operations for the third quarter of 2014 was RMB5.0 million (US$0.8 million), compared to loss from operations of RMB32.8 million (US$5.3 million) in the third quarter of 2013.
Net loss for the third quarter of 2014 was RMB26.9 million (US$4.4 million), compared to net loss of RMB38.7 million (US$6.3 million) for the third quarter of 2013.
Non-GAAP adjusted EBITDA for the third quarter of 2014 was RMB76.4 million (US$12.4 million), up 291.4% year over year, mainly due to the economic scaling with increasing fleet size. Non-GAAP adjusted EBITDA margin for the third quarter of 2014 was 34.7%, compared to 13.2% for the third quarter of 2013.
First Nine Months 2014 Results
Net revenues for the first nine months of 2014 were RMB604.7 million (US$98.5 million), up 47.8% compared to the first nine months of 2013, primarily due to the Company's increased fleet size, geographic expansion, and increased demand from new and existing corporate customers.
Revenues from car rentals for the first nine months of 2014 were RMB423.1 million (US$68.9 million), up 54.6% compared to the first nine months of 2013, driven by increases in the Company's average available fleet size.
Revenues from car services for the first nine months of 2014 were RMB181.6 million (US$29.6 million), up 34.1% compared to the first nine months of 2013, driven by increased demand from new and existing corporate customers.
Vehicle operating expenses for the first nine months of 2014 were RMB499.0 million (US$81.3 million), up 31.6% compared to the first nine months of 2013, primarily due to labor, insurance and depreciation expenses.
The Company disposed of 1,019 used vehicles during the nine months ended September 30, 2014 through various sales channels and recorded a gain of RMB0.6 million. The gain was recognized as an adjustment to the vehicle related depreciation expense as part of the Company's vehicle operating expenses.
Selling, general and administrative expenses for the first nine months of 2014 were RMB114.3 million (US$18.6 million), down 0.9% compared to the first nine months of 2013, primarily as a result of the Company's cost control and marketing efficiency.
Profit from operations for the first nine months of 2014 was RMB4.2 million (US$0.7 million), compared to loss from operations of RMB82.4 million (US$13.4 million) in the first nine months of 2013.
Net loss for the first nine months of 2014 was RMB47.6 million (US$7.8 million), compared to net loss of RMB123.7 million (US$20.2 million) for the first nine months of 2013.
Non-GAAP adjusted EBITDA for the first nine months of 2014 was RMB209.4 million (US$34.5 million), up 221.2% compared to the first nine months of 2013. Non-GAAP adjusted EBITDA margin for the first nine months of 2014 was 34.6%, compared to 15.9% for the first nine months of 2013.
As of September 30, 2014, the Company's cash and cash equivalents balance was RMB207.4 million (US$33.8 million).
Outlook
The Company estimates that its fiscal year 2014 net revenues will be in the range of RMB840 million to RMB845 million, which would represent an increase of approximately 48.3% to 49.2% from RMB566.4 million in 2013. This forecast reflects the Company's current and preliminary view, which is subject to change.
Conference Call Information
The Company's management will host an earnings conference call on December 11, 2014 at 8 am U.S. Eastern Time (9 pm Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
United States (toll free): |
1-888-346-8982 |
International: |
1-412-902-4272 |
Hong Kong: |
852-301-84992 |
China: |
8610-5357-3132 |
Participants should call in at least 5 minutes before the scheduled start and ask to be connected to the "eHi Car Services call".
Additionally, a live and archived webcast of the conference call will be available on the investor relations section of eHi's website at http://ir.ehi.com.cn.
A replay of the conference call will be accessible by phone at the following numbers until December 18, 2014:
United States (toll free): |
1-877-344-7529 |
International: |
1-412-317-0088 |
Replay Access Code: |
10057081 |
About eHi Car Services Limited
eHi Car Services Limited (NYSE: EHIC) is China's No. 1 car services provider and No. 2 car rentals provider in terms of market share by revenues in 2013, according to Frost & Sullivan. The Company's mission is to provide comprehensive mobility solutions as an alternative to car ownership by best utilizing existing resources and sharing economy to create optimal value. eHi distinguishes itself in China's fast-growing car rental and car services market through its complementary business model, customer-centric corporate culture, broad geographic coverage, efficient fleet management, leading brand name, and commitment to technological innovation. eHi is the exclusive strategic partner in China of Enterprise, the largest car rental company in the world, and is the designated and preferred business partner of Ctrip, a leader in the online travel agency industry in China. For more information regarding eHi, please visit http://en.1hai.cn/.
About Non-GAAP Financial Measures
To supplement its unaudited condensed consolidated financial statements which are presented in accordance with U.S. GAAP, the Company uses adjusted EBITDA as a non-GAAP financial measure. Adjusted EBITDA represents net income or loss before depreciation and amortization, share-based compensation, interest expenses, interest income and provision for income taxes. The Company's management believes that adjusted EBITDA facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods. For more information on the non-GAAP financial measures, please see the table captioned "Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
Non-GAAP information is not prepared in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of using adjusted EBITDA is that adjusted EBITDA excludes depreciation and amortization, share-based compensation, interest expenses, interest income and provision for income taxes that have been and will continue to be significant recurring expenses in Company's business for the foreseeable future.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and 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," "confident" and similar statements. eHi may also make written or oral forward-looking statements in its reports filed with or furnished to the 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. Any statements that are not historical facts, including statements about eHi's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: eHi's goals and strategies; its future business development, financial condition and results of operations; its ability to achieve and sustain profitability; its heavy reliance on its proprietary technology platform; its ability to compete successfully against current and future competitors; its ability to sustain our growth rates and manage our expansion plan; its ability to dispose used vehicles at desirable prices or timing or through appropriate channels; its ability to raise sufficient capital to fund and expand our operations at a reasonable cost; various government policies on automobile control and purchase restrictions in certain Chinese cities; its ability to enhance our brand recognition and maintain a high level of customer satisfaction; its ability to control the losses resulting from customer violation of traffic rules; and its ability to obtain all of the requisite permits, licenses or making all of the requisite filings or registrations or meeting other regulatory requirements for operating car rentals and car services business in China. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is current as of the date of the press release, and eHi does not undertake any obligation to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
eHi Car Services Limited
Tel: +86 (21) 6468-7000 ext. 8742
E-Mail: ir@ehic.com.cn
Mr. Nicholas Manganaro
Ogilvy Financial, Beijing
Tel: +86 (10) 8520-6139
E-mail: ehic@ogilvy.com
In the U.S.:
Mr. Justin Knapp
Ogilvy Financial, U.S.
Tel: +1 (616) 551-9714
E-mail: ehic@ogilvy.com
eHi Car Services Limited |
|||
Unaudited Condensed Consolidated Balance Sheets |
|||
December 31, 2013 |
September 30,2014 |
September 30,2014 |
|
RMB |
RMB |
USD |
|
Unaudited |
Unaudited |
Unaudited |
|
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
630,733,451 |
207,368,472 |
33,784,371 |
Restricted cash |
30,247,232 |
112,477,473 |
18,324,776 |
Accounts receivable, net |
63,907,848 |
98,735,626 |
16,085,961 |
Prepayments and other current assets |
78,853,099 |
148,272,274 |
24,156,447 |
Total current assets |
803,741,630 |
566,853,845 |
92,351,555 |
Cost method investment |
153,812,500 |
25,059,058 |
|
Property and equipment, net |
1,062,331,035 |
1,704,343,732 |
277,670,859 |
Intangible assets |
29,977,317 |
35,645,633 |
5,807,369 |
Vehicle purchase deposits |
119,172,859 |
64,111,075 |
10,444,945 |
Other non-current assets |
11,199,026 |
29,701,599 |
4,838,970 |
Total assets |
2,026,421,867 |
2,554,468,384 |
416,172,757 |
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT |
|||
Current liabilities: |
|||
Accounts payable |
6,554,239 |
7,639,196 |
1,244,574 |
Accrued expenses and other current liabilities |
105,142,801 |
88,249,634 |
14,377,588 |
Income tax payable |
2,137,874 |
1,494,463 |
243,477 |
Short-term borrowings |
219,640,421 |
428,356,750 |
69,787,675 |
Total current liabilities |
333,475,335 |
525,740,043 |
85,653,314 |
Long-term borrowings |
375,726,271 |
595,668,604 |
97,046,042 |
Other non-current liabilities |
350,000 |
517,065 |
84,240 |
Total liabilities |
709,551,606 |
1,121,925,712 |
182,783,596 |
Mezzanine equity |
|||
Class A convertible redeemable preferred shares |
295,199,496 |
314,280,304 |
51,202,396 |
Series A convertible redeemable preferred shares |
68,146,852 |
68,205,940 |
11,112,079 |
Series B convertible redeemable preferred shares |
327,058,282 |
329,986,695 |
53,761,273 |
Series C convertible redeemable preferred shares |
575,422,644 |
638,892,332 |
104,088,031 |
Series D convertible redeemable preferred shares |
377,488,481 |
420,763,008 |
68,550,506 |
Series E convertible redeemable preferred shares |
630,205,581 |
865,258,179 |
140,967,445 |
Total Mezzanine equity |
2,273,521,336 |
2,637,386,458 |
429,681,730 |
Shareholders' deficits |
|||
Common shares |
40,281 |
40,281 |
6,563 |
Accumulated other comprehensive income |
6,582,044 |
6,722,492 |
1,095,225 |
Accumulated deficits |
(963,273,400) |
(1,211,606,559) |
(197,394,356) |
Total shareholders' deficits |
(956,651,075) |
(1,204,843,786) |
(196,292,569) |
Total liabilities, mezzanine equity and shareholders' deficit |
2,026,421,867 |
2,554,468,384 |
416,172,757 |
eHi Car Services Limited |
|||||
Unaudited Condensed Consolidated Statements of Comprehensive Loss |
|||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
||||
2013 |
2014 |
2014 |
2013 |
2014 |
|
RMB |
RMB |
USD |
RMB |
RMB |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net revenues: |
|||||
Car rentals |
98,490,526 |
155,511,911 |
25,335,926 |
273,594,898 |
423,064,012 |
Car services |
49,849,154 |
64,603,059 |
10,525,099 |
135,401,161 |
181,589,190 |
Total Net revenues |
148,339,680 |
220,114,970 |
35,861,025 |
408,996,059 |
604,653,201 |
Vehicle operating expenses |
(141,166,855) |
(182,990,832) |
(29,812,778) |
(379,082,167) |
(499,003,676) |
Selling and marketing expenses |
(12,646,910) |
(8,104,945) |
(1,320,454) |
(30,787,275) |
(24,131,658) |
General and administrative expenses |
(28,455,002) |
(34,237,455) |
(5,577,950) |
(84,570,468) |
(90,201,101) |
Other operating income |
1,138,398 |
193,721 |
31,561 |
3,032,572 |
12,875,416 |
Total operating expenses |
(181,130,369) |
(225,139,511) |
(36,679,621) |
(491,407,338) |
(600,461,019) |
Profit/(Loss) from operations |
(32,790,689) |
(5,024,541) |
(818,596) |
(82,411,279) |
4,192,182 |
Interest income |
22,771 |
201,453 |
32,821 |
224,126 |
3,032,809 |
Interest expense |
(5,266,795) |
(21,424,821) |
(3,490,522) |
(39,801,941) |
(52,378,641) |
Other income (expense), net |
(334,390) |
(146,664) |
(23,894) |
(715,004) |
(542,471) |
Loss before income taxes |
(38,369,103) |
(26,394,573) |
(4,300,191) |
(122,704,098) |
(45,696,121) |
Provision for income taxes |
(303,173) |
(545,068) |
(88,802) |
(998,096) |
(1,929,369) |
Net Loss |
(38,672,276) |
(26,939,641) |
(4,388,993) |
(123,702,194) |
(47,625,490) |
Accretion on Series A convertible redeemable preferred shares to redemption value |
(237,282) |
(19,702) |
(3,210) |
(3,967,080) |
(59,088) |
Accretion on Series B convertible redeemable preferred shares to redemption value |
(11,442,228) |
(979,249) |
(159,539) |
(33,049,432) |
(2,928,413) |
Accretion on Series C convertible redeemable preferred shares to redemption value |
(18,880,588) |
(21,899,343) |
(3,567,830) |
(54,448,508) |
(63,469,688) |
Accretion on Series D convertible redeemable preferred shares to redemption value |
(17,877,142) |
(14,949,715) |
(2,435,600) |
(51,036,723) |
(43,274,527) |
Accretion on Series E convertible redeemable preferred shares to redemption value |
- |
(29,774,326) |
(4,850,819) |
- |
(81,056,418) |
Accretion on Class A convertible redeemable preferred shares to redemption value |
- |
(6,493,511) |
(1,057,920) |
- |
(19,080,808) |
Net loss attributable to common shareholders |
(87,109,516) |
(101,055,487) |
(16,463,911) |
(266,203,937) |
(257,494,432) |
Net Loss |
(38,672,276) |
(26,939,641) |
(4,388,993) |
(123,702,194) |
(47,625,490) |
Changes in cumulative foreign currency translation adjustment, net of tax of nil |
1,641,658 |
(598,704) |
(97,541) |
5,770,507 |
140,448 |
- |
|||||
Comprehensive loss |
(37,030,618) |
(27,538,345) |
(4,486,534) |
(117,931,687) |
(47,485,042) |
Weighted average number of common shares used in computing net loss per share |
|||||
Basic |
6,096,842 |
6,096,842 |
6,096,842 |
6,096,842 |
6,096,842 |
Diluted |
6,096,842 |
6,096,842 |
6,096,842 |
6,096,842 |
6,096,842 |
Net loss per share attributable to common shareholders |
|||||
Basic |
(14.29) |
(16.58) |
(2.70) |
(43.66) |
(42.23) |
Diluted |
(14.29) |
(16.58) |
(2.70) |
(43.66) |
(42.23) |
eHi Car Services Limited |
|||||
Reconciliation of GAAP and Non-GAAP Results |
|||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
||||
2013 |
2014 |
2014 |
2013 |
2014 |
|
RMB |
RMB |
USD |
RMB |
RMB |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Loss |
(38,672,276) |
(26,939,641) |
(4,388,993) |
(123,702,194) |
(47,625,490) |
Add (subtract): |
|||||
Depreciation and amortization |
51,012,443 |
74,668,223 |
12,164,911 |
143,418,851 |
196,615,912 |
Share-based compensation |
1,632,136 |
6,899,965 |
1,124,139 |
4,914,977 |
9,161,273 |
Interest income |
(22,771) |
(201,453) |
(32,821) |
(224,126) |
(3,032,809) |
Interest expense |
5,266,795 |
21,424,821 |
3,490,522 |
39,801,941 |
52,378,641 |
Provision for income taxes |
303,173 |
545,068 |
88,802 |
998,096 |
1,929,369 |
Adjusted EBITDA |
19,519,500 |
76,396,983 |
12,446,560 |
65,207,545 |
209,426,896 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ehi-car-services-announces-third-quarter-2014-results-300008432.html
