SHANGHAI, August 24, 2016 /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 second quarter ended June 30, 2016.
Second Quarter 2016 Highlights
Three months ended June 30, |
Year-Over-Year |
||||
(RMB '000) |
2015 |
2016 |
Comparison |
||
Car rentals |
251,982 |
388,810 |
54.3% |
||
Car services |
87,889 |
112,529 |
28.0% |
||
Total Net Revenues |
339,871 |
501,339 |
47.5% |
||
Mr. Ray Zhang, eHi's Chairman and Chief Executive Officer, said, "Our second quarter results were fueled by the strong execution of our growth strategy. Additionally, we are excited to launch in cooperation with Enterprise our new international car rental services targeting Chinese tourists traveling abroad. We believe we will build a solid foundation to capitalize on the significant travel demand from Chinese consumers, both domestically and internationally. We remain committed to our expansion strategy and growth initiatives and strengthening our leadership position in China's car rentals and car services industry."
Mr. Colin Sung, eHi's Chief Financial Officer, said, "Our focus on improving operating efficiency and expanding margins continues to bear fruit. During the second quarter, we achieved a strong gross profit margin of 28.2% and a non-GAAP adjusted EBITDA margin of 43.5%, compared with 19.1% and 37.1%, respectively, in the second quarter of 2015. Commencing with this quarter, we are reporting non-GAAP adjusted EBIT, which increased to 12.0% from 4.1% in the prior year period. Since we diversified our funding channels with both equity and debt financings, we believe non-GAAP adjusted EBIT is a good measure of our operating results and margin improvement, and better reflects our commitment to ensuring long-term financial health. For the second half of 2016, we will continue to expand prudently while balancing growth and profitability through disciplined cost control measures."
1 The Company's business is conducted in China and substantially all of its revenues are denominated in Renminbi (RMB). However, this earnings announcement contains translations of RMB amounts into U.S. dollars (US$) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6459 to US$1.00, the effective noon buying rate as of June 30, 2016 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. |
2 Gross profit is defined as net revenues less cost of net revenues (vehicle operating expenses). Gross profit margin is defined as the percentage representing gross profit divided by net revenues. |
3 Commencing with the second quarter of 2016, the Company has begun reporting adjusted EBIT as a non-GAAP financial measure. Non-GAAP adjusted EBIT is defined as net income before share-based compensation, interest expenses, interest income, provision for income taxes, gains from waiver of warrants and gains from sale of cost method investment. For more information, refer to "About Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release. Non-GAAP adjusted EBIT margin is defined as the percentage representing Non-GAAP adjusted EBIT divided by net revenues. |
4 Non-GAAP adjusted EBITDA is defined as net income before depreciation and amortization, share-based compensation, interest expenses, interest income, provision for income taxes, gains from waiver of warrants and gains from sale of cost method investment. For more information, refer to "About Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release. Non-GAAP adjusted EBITDA margin is defined as the percentage representing Non-GAAP adjusted EBITDA divided by net revenues. |
5 "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/or 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 it may consider to dispose of when appropriate opportunities arise. |
6 "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 which the Company holds legal title to and reflects in its balance sheet, including vehicles that are currently missing but have not been written off in accordance with its accounting policy. The period-end fleet size as of June 30, 2016 excluded 147 vehicles which the Company had written off from its balance sheet in accordance with its accounting policy. |
7 "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. |
8 "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. |
Second Quarter 2016 Financial Results
Net revenues for the second quarter of 2016 were RMB501.3 million (US$75.4 million), up 47.5% year-over-year, attributable to increases in net revenues from both car rentals and car services.
Net revenues from car rentals for the second quarter of 2016 were RMB388.8 million (US$58.5 million), up 54.3% year-over-year, primarily driven by the growing average available fleet size for car rentals in response to customer demand.
Net revenues from car services for the second quarter of 2016 were RMB112.5 million (US$16.9 million), up 28.0% year-over-year, primarily driven by increased demand from existing and new customers for car services.
Cost of revenues (vehicle operating expenses) for the second quarter of 2016 was RMB359.8 million (US$54.1 million), up 30.8% year-over-year, primarily driven by increased depreciation and labor costs, and partially offset by savings in vehicle insurance expenses.
In the second quarter of 2016, 702 used vehicles were disposed of, and 423 used vehicles were under sales contracts pending title transfer. The Company recorded a loss of RMB0.7 million (US$0.1 million) in aggregate for these 1,125 vehicles. The loss was recognized as an adjustment to the vehicle-related depreciation expense as part of the cost of revenues.
Gross profit for the second quarter of 2016 was RMB141.5 million (US$21.3 million), up 118.3% year-over-year. Gross profit margin for the second quarter of 2016 was 28.2%, compared with 19.1% for the second quarter of 2015. Gross profit margin improvement was primarily due to certain cost controls in vehicle insurance and other vehicle operating expenses, in connection with enhanced economies of scale and operating efficiency.
Selling and marketing expenses for the second quarter of 2016 were RMB26.8 million (US$4.0 million), up 97.5% year-over-year, primarily due to increased channel marketing and promotion fees as the Company expanded branding and channel promotion activities in the second quarter of 2016.
General and administrative expenses for the second quarter of 2016 were RMB59.2 million (US$8.9 million), up 23.9% year-over-year, primarily due to increases in employee-related costs including salaries and welfare expenses as a result of increases in headcount.
Profit from operations for the second quarter of 2016 was RMB55.9 million (US$8.4 million), up 1,185.8% year-over-year.
Interest expense for the second quarter of 2016 was RMB56.5 million (US$8.5 million), up 89.4% year-over-year, primarily attributable to the interest expense associated with the Company's senior unsecured notes of US$200 million due 2018.
Net income for the second quarter of 2016 was RMB0.8 million (US$0.1 million), compared with RMB669.1 million for the second quarter of 2015. Net income for the second quarter of 2015 included a net gain of RMB720.0 million related to sales of investment assets.
Non-GAAP adjusted EBIT for the second quarter of 2016 was RMB60.3 million (US$9.1 million), up 333.3% year-over-year. Non-GAAP adjusted EBIT margin for the second quarter of 2016 was 12.0%, compared with 4.1% for the second quarter of 2015.
Non-GAAP adjusted EBITDA for the second quarter of 2016 was RMB217.9 million (US$32.8 million), up 73.0% year-over-year. Non-GAAP adjusted EBITDA margin for the second quarter of 2016 was 43.5%, compared with 37.1% for the second quarter of 2015.
As of June 30, 2016, the Company's cash, cash equivalents and restricted cash balance was RMB1.8 billion (US$264.3 million).
Outlook
The Company reiterates its full-year 2016 outlook previously announced on March 29, 2016. The Company estimates that net revenues for the full year of 2016 will increase approximately 50% from 2015, and total period-end fleet size will reach approximately 57,000 vehicles as of December 31, 2016. This outlook 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 at 8:00 PM U.S. Eastern Time on August 23, 2016 (8:00 AM Beijing/Hong Kong time on August 24, 2016).
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 (toll free): |
800-905-945 |
Hong Kong: |
852-3018-4992 |
China: |
400-120-1203 |
Participants should dial-in at least 5 minutes before the scheduled start time 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 August 30, 2016:
United States (toll free): |
1-877-344-7529 |
International: |
1-412-317-0088 |
Replay Access Code: |
10091528 |
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 EBIT and adjusted EBITDA as non-GAAP financial measures. Adjusted EBIT represents net income or loss before share-based compensation, interest expenses, interest income, provision for income taxes, gains from waiver of warrants and gains from sale of cost method investment. Adjusted EBITDA represents net income or loss before depreciation and amortization, share-based compensation, interest expenses, interest income, provision for income taxes, gains from waiver of warrants and gains from sale of cost method investment. The Company's management believes that adjusted EBIT and adjusted EBITDA facilitate a 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 these Non-GAAP financial measures excludes depreciation and amortization, share-based compensation, interest expenses, interest income and provision for income taxes, as applicable, that have been and will continue to be significant recurring portions of the 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; the expected growth of China's car rentals and car services market; its ability to sustain its growth rates and manage its 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 its operations at a reasonable cost; various government policies on automobile control and purchase restrictions in certain Chinese cities; its ability to enhance its 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:
eHi Car Services Limited
Tel: +86 (21) 6468-7000 ext. 8742
E-mail: ir@ehic.com.cn
The Piacente Group, Inc.
Mr. Don Markley
Tel: +1-212-481-2050
E-mail: ehi@thepiacentegroup.com
eHi Car Services Limited |
|||||||
December 31, |
June 30, 2016 |
June 30, 2016 |
|||||
RMB |
RMB |
USD |
|||||
Unaudited |
Unaudited |
Unaudited |
|||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
2,610,088,382 |
1,549,605,922 |
233,167,204 |
||||
Restricted cash |
206,944,000 |
206,944,000 |
31,138,597 |
||||
Accounts receivable, net |
185,418,831 |
195,323,458 |
29,390,069 |
||||
Prepayments and other current assets |
379,344,970 |
496,567,366 |
74,717,851 |
||||
Short term loans receivable |
- |
50,000,000 |
7,523,436 |
||||
Assets held for sale |
45,467,038 |
54,457,664 |
8,194,174 |
||||
Total current assets |
3,427,263,221 |
2,552,898,410 |
384,131,331 |
||||
Property and equipment, net |
4,096,617,720 |
4,468,617,695 |
672,387,140 |
||||
Intangible assets |
45,367,164 |
54,425,008 |
8,189,261 |
||||
Vehicle purchase deposits |
216,727,900 |
320,039,560 |
48,155,940 |
||||
Other non-current assets |
14,943,879 |
14,495,582 |
2,181,132 |
||||
Total assets |
7,800,919,884 |
7,410,476,255 |
1,115,044,804 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
785,898,613 |
132,798,757 |
19,982,058 |
||||
Accrued expenses and other current liabilities |
203,742,878 |
246,509,197 |
37,091,922 |
||||
Income tax payable |
89,220,792 |
667,734 |
100,473 |
||||
Short-term debt |
803,131,683 |
1,133,789,312 |
170,599,815 |
||||
Total current liabilities |
1,881,993,966 |
1,513,765,000 |
227,774,268 |
||||
Long-term debt |
1,969,452,640 |
1,922,886,601 |
289,334,266 |
||||
Deferred tax liabilities, non-current |
- |
1,061,542 |
159,729 |
||||
Other non-current liabilities |
1,400,000 |
2,192,867 |
329,958 |
||||
Total liabilities |
3,852,846,606 |
3,439,906,010 |
517,598,221 |
||||
Shareholders' equity: |
|||||||
Common shares |
867,001 |
869,562 |
130,842 |
||||
Additional paid-in capital |
4,433,439,156 |
4,446,222,013 |
669,017,291 |
||||
Accumulated other comprehensive income |
74,554,822 |
87,195,261 |
13,120,158 |
||||
Accumulated deficits |
(560,787,701) |
(563,716,591) |
(84,821,708) |
||||
Total shareholders' equity |
3,948,073,278 |
3,970,570,245 |
597,446,583 |
||||
Total liabilities and shareholders' equity |
7,800,919,884 |
7,410,476,255 |
1,115,044,804 |
||||
eHi Car Services Limited |
||||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||
2015 |
2016 |
2016 |
2015 |
2016 |
||||||
RMB |
RMB |
USD |
RMB |
RMB |
||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||||
Net revenues: |
||||||||||
Car rentals |
251,981,712 |
388,809,641 |
58,503,685 |
478,370,321 |
752,787,039 |
|||||
Car services |
87,888,937 |
112,528,898 |
16,932,078 |
157,008,213 |
209,061,955 |
|||||
Total net revenues |
339,870,649 |
501,338,539 |
75,435,763 |
635,378,534 |
961,848,994 |
|||||
Cost of revenues |
(275,047,104) |
(359,821,105) |
(54,141,818) |
(514,849,655) |
(690,596,794) |
|||||
Gross profit |
64,823,545 |
141,517,434 |
21,293,945 |
120,528,879 |
271,252,200 |
|||||
Selling and marketing expenses |
(13,576,457) |
(26,820,063) |
(4,035,580) |
(24,159,500) |
(49,175,500) |
|||||
General and administrative expenses |
(47,773,962) |
(59,203,554) |
(8,908,282) |
(81,791,640) |
(116,220,013) |
|||||
Other operating income |
877,939 |
454,287 |
68,356 |
2,386,741 |
492,923 |
|||||
Total operating expenses |
(60,472,480) |
(85,569,330) |
(12,875,506) |
(103,564,399) |
(164,902,590) |
|||||
Profit from operations |
4,351,065 |
55,948,104 |
8,418,439 |
16,964,480 |
106,349,610 |
|||||
Interest income |
640,412 |
2,993,663 |
450,453 |
1,271,177 |
4,553,855 |
|||||
Interest expense |
(29,802,150) |
(56,453,714) |
(8,494,518) |
(55,975,391) |
(112,592,807) |
|||||
Gains from waiver of warrants |
- |
- |
- |
16,869,935 |
- |
|||||
Gains from sale of cost method investment |
803,059,728 |
- |
- |
803,059,728 |
- |
|||||
Other income, net |
6,370,604 |
827,606 |
124,529 |
6,299,770 |
1,531,871 |
|||||
Income (loss) before income taxes |
784,619,659 |
3,315,659 |
498,903 |
788,489,699 |
(157,471) |
|||||
Provision for income taxes |
(85,535,202) |
(2,503,203) |
(376,654) |
(85,845,216) |
(2,771,419) |
|||||
Net income (loss) |
699,084,457 |
812,456 |
122,249 |
702,644,483 |
(2,928,890) |
|||||
Net income (loss) |
699,084,457 |
812,456 |
122,249 |
702,644,483 |
(2,928,890) |
|||||
Changes in cumulative foreign |
(2,868,498) |
13,824,121 |
2,080,098 |
(144,584) |
12,640,439 |
|||||
Comprehensive income |
696,215,959 |
14,636,577 |
2,202,347 |
702,499,899 |
9,711,549 |
|||||
Weighted average number of |
||||||||||
Basic |
119,217,341 |
137,119,334 |
137,119,334 |
116,643,839 |
137,015,192 |
|||||
Diluted |
121,751,506 |
138,785,484 |
138,785,484 |
118,863,159 |
137,015,192 |
|||||
Net income (loss) per share |
||||||||||
Basic |
5.86 |
0.01 |
0.00 |
6.02 |
(0.02) |
|||||
Diluted |
5.74 |
0.01 |
0.00 |
5.91 |
(0.02) |
|||||
Earnings (loss) per ADS* |
||||||||||
Basic |
11.73 |
0.01 |
0.00 |
12.05 |
(0.04) |
|||||
Diluted |
11.48 |
0.01 |
0.00 |
11.82 |
(0.04) |
|||||
eHi Car Services Limited |
||||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||
2015 |
2016 |
2016 |
2015 |
2016 |
||||||
RMB |
RMB |
USD |
RMB |
RMB |
||||||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
||||||
Net Income (Loss) |
699,084,457 |
812,456 |
122,249 |
702,644,483 |
(2,928,890) |
|||||
Add (subtract): |
||||||||||
Share-based compensation |
3,199,526 |
3,546,972 |
533,708 |
6,166,574 |
7,156,396 |
|||||
Interest income |
(640,412) |
(2,993,663) |
(450,453) |
(1,271,177) |
(4,553,855) |
|||||
Interest expense |
29,802,150 |
56,453,714 |
8,494,518 |
55,975,391 |
112,592,807 |
|||||
Provision for income taxes |
85,535,202 |
2,503,203 |
376,654 |
85,845,216 |
2,771,419 |
|||||
Gains from waiver of |
- |
- |
- |
(16,869,935) |
- |
|||||
Gains from sale of cost |
(803,059,728) |
- |
- |
(803,059,728) |
- |
|||||
Adjusted EBIT |
13,921,195 |
60,322,682 |
9,076,676 |
29,430,824 |
115,037,877 |
|||||
Depreciation and |
112,037,723 |
157,540,717 |
23,704,949 |
212,244,688 |
304,732,127 |
|||||
Adjusted EBITDA |
125,958,918 |
217,863,399 |
32,781,625 |
241,675,512 |
419,770,004 |
|||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ehi-car-services-announces-second-quarter-2016-results-300317093.html
