omniture

Tuniu Announces Unaudited First Quarter 2019 Financial Results

2019-05-23 18:22 10187

NANJING, China, May 23, 2019 /PRNewswire/ -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the first quarter ended March 31, 2019.

Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer, said, "In 2019, Tuniu will focus on maintaining and expanding its long-term competitive advantages. We have reprioritized our product offering to focus on the best-selling products in popular destinations. By collectively making procurement of these best-selling products, it allows us to improve our bargaining power and effectively increase our product margins. On the other hand, our social marketing tools leverage our offline retail stores to effectively distribute Tuniu's products and services to local communities, social groups and various consumption settings. Overall, we aim to provide the best products and services to our customers."

Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "By putting increased emphasis and resources into the best-selling products, we are able to further improve our margins. During the quarter, contribution of our offline retail stores continues to rise as we refine our offline service capabilities. Although our offline retail store model is already proven, we believe there continues to be room for operational improvements that can further unlock the profitability potential of these stores. Going forward, we will focus on improving the user experience by providing high quality products through Niu Tour, which are organized tours that are directly designed and procured by Tuniu, and Tuniu Selection, which are best-selling products from our top suppliers."

First Quarter 2019 Results

Net revenues were RMB456.9 million (US$68.1[1] million) in the first quarter of 2019, representing a year-over-year decrease of 4.9% from the corresponding period in 2018.

  • Revenues from packaged tours were RMB365.9 million (US$54.5 million) in the first quarter of 2019, representing a year-over-year decrease of 9.1% from the corresponding period in 2018. The decrease was primarily due to the decline in certain destinations.
  • Other revenues were RMB91.0 million (US$13.6 million) in the first quarter of 2019, representing a year-over-year increase of 16.8% from the corresponding period in 2018. The increase was primarily due to a rise in revenues generated from financial services and commission fees received from certain travel-related products.

Cost of revenues was RMB206.0 million (US$30.7 million) in the first quarter of 2019, representing a year-over-year decrease of 5.5% from the corresponding period in 2018. As a percentage of net revenues, cost of revenues was 45.1% in the first quarter of 2019 compared to 45.3% in the corresponding period in 2018.

Gross profit was RMB250.8 million (US$37.4 million) in the first quarter of 2019, representing a year-over-year decrease of 4.5% from the corresponding period in 2018. The decrease was primarily due to the decline in revenues from packaged tours.

Operating expenses were RMB431.4 million (US$64.3 million) in the first quarter of 2019, representing a year-over-year increase of 12.4% from the corresponding period in 2018. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB56.7 million (US$8.4 million) in the first quarter of 2019. Non-GAAP[2] operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB374.7 million (US$55.8 million) in the first quarter of 2019, representing a year-over-year increase of 11.4%.

  • Research and product development expenses were RMB80.0 million (US$11.9 million) in the first quarter of 2019, representing a year-over-year decrease of 4.8%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB5.6 million (US$0.8 million), were RMB74.5 million (US$11.1 million) in the first quarter of 2019, representing a year-over-year decrease of 9.6% from the corresponding period in 2018. The decrease was primarily due to the increase in efficiency resulting from economies of scale and refined management, and optimization of research and product development personnel.
  • Sales and marketing expenses were RMB218.8 million (US$32.6 million) in the first quarter of 2019, representing a year-over-year increase of 17.8%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB35.6 million (US$5.3 million), were RMB183.2 million (US$27.3 million) in the first quarter of 2019, representing a year-over-year increase of 21.0% from the corresponding period in 2018. The increase was primarily due to the expansion of our offline retail stores.
  • General and administrative expenses were RMB135.1 million (US$20.1 million) in the first quarter of 2019, representing a year-over-year increase of 17.9%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB15.5 million (US$2.3 million), were RMB119.5 million (US$17.8 million) in the first quarter of 2019, representing a year-over-year increase of 15.9% from the corresponding period in 2018. The increase was primarily due to an increase in general and administrative personnel related expenses.

Loss from operations was RMB180.5 million (US$26.9 million) in the first quarter of 2019, compared to a loss from operations of RMB121.1 million in the first quarter of 2018. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB122.0 million (US$18.2 million) in the first quarter of 2019.

Net loss was RMB148.2 million (US$22.1 million) in the first quarter of 2019, compared to a net loss of RMB71.6 million in the first quarter of 2018. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB89.6 million (US$13.4 million) in the first quarter of 2019.

Net loss attributable to ordinary shareholders was RMB150.6 million (US$22.4 million) in the first quarter of 2019, compared to a net loss attributable to ordinary shareholders of RMB74.7 million in the first quarter of 2018. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB92.1 million (US13.7 million) in the first quarter of 2019.

As of March 31, 2019, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.8 billion (US$269.6 million). 

[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.7112 on March 29, 2019 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/default.htm.

[2] The section below entitled "About Non-GAAP Financial Measures" provides information about the use of Non-GAAP financial measures in this press release, and the table captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release reconciles Non-GAAP financial information with the Company's financial results under GAAP.

Business Outlook

For the second quarter of 2019, Tuniu expects to generate RMB472.7 million to RMB499.0 million of net revenues, which represents 5% to 10% decrease year-over-year. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.

Conference Call Information

Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on May 23, 2019, (8:00 pm, Beijing/Hong Kong Time, on May 23, 2019) to discuss the first quarter 2019 financial results.

To participate in the conference call, please dial the following numbers:

US:    

+1-888-346-8982

Hong Kong:

+852-301-84992

China:   

4001-201203

International:

+1-412-902-4272



Conference ID:

Tuniu 1Q 2019 Earnings Call

A telephone replay will be available one hour after the end of the conference through May 30, 2019. The dial-in details are as follows:

US:    

+1-877-344-7529

International:

+1-412-317-0088



Replay Access Code:

10131630

Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.tuniu.com.

About Tuniu

Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu has over 2,200,000 stock keeping units (SKUs) of packaged tours, covering over 420 departing cities throughout China and all popular destinations worldwide. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network. For more information, please visit http://ir.tuniu.com.

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. Tuniu 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 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 Tuniu'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 are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; the Company's ability to offer competitive travel products and services; Tuniu's future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company's structure, business and industry; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, operating expenses, loss from operations, net loss, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS, which excludes share-based compensation expenses and amortization of acquired intangible assets. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods. 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.

A limitation of using non-GAAP financial measures excluding share-based compensation expenses and amortization of acquired intangible assets is that share-based compensation expenses and amortization of acquired intangible assets have been – and will continue to be – significant recurring expenses in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.

For investor and media inquiries, please contact:

China
Mary Chen
Investor Relations Director
Tuniu Corporation
Phone: +86-25-6960-9988
E-mail: ir@tuniu.com

 

(Financial Tables Follow)

 

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)



 December 31, 2018 


 March 31, 2019 


 March 31, 2019 


 RMB 


 RMB 


 US$ 







ASSETS






Current assets






Cash and cash equivalents

560,356


441,504


65,786

Restricted cash 

270,670


253,577


37,784

Short-term investments

859,211


1,114,288


166,034

Accounts receivable, net

347,547


374,515


55,804

Amounts due from related parties

696,520


714,959


106,532

Prepayments and other current assets  

1,673,584


1,568,279


233,681

Total current assets

4,407,888


4,467,122


665,621







Non-current assets






Long-term investments

1,302,506


1,265,673


188,591

Property and equipment, net

187,360


199,273


29,693

Intangible assets, net

317,885


283,461


42,237

Land use right, net

100,836


100,320


14,948

Operating lease right-of-use assets, net*

-


195,247


29,093

Goodwill

159,409


159,409


23,753

Other non-current assets

81,039


85,883


12,797

Total non-current assets

2,149,035


2,289,266


341,112

Total assets

6,556,923


6,756,388


1,006,733







LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities






Short-term borrowings

49,312


57,820


8,615

Accounts and notes payable 

1,305,610


1,497,132


223,080

Amounts due to related parties

77,159


102,704


15,303

Salary and welfare payable

104,480


79,920


11,908

Taxes payable

23,316


12,625


1,881

Advances from customers

1,058,946


1,007,828


150,171

Operating lease liabilities, current*

-


95,640


14,251

Accrued expenses and other current liabilities

483,832


485,346


72,319

Total current liabilities

3,102,655


3,339,015


497,528







Non-current liabilities






Operating lease liabilities, non-current*

-


110,848


16,517

Deferred tax liabilities

19,855


19,268


2,871

Long-term borrowings

4,492


4,058


605

Other non-current liabilities

16,069


10,764


1,604

Total non-current liabilities

40,416


144,938


21,597

Total liabilities

3,143,071


3,483,953


519,125







Mezzanine equity






Redeemable noncontrolling interests

69,319


70,576


10,516







Shareholders' equity






Ordinary shares

249


249


37

Less: Treasury stock

(304,535)


(313,232)


(46,673)

Additional paid-in capital

9,061,979


9,082,223


1,353,293

Accumulated other comprehensive income

284,079


279,337


41,623

Accumulated deficit

(5,691,409)


(5,841,468)


(870,406)

Total Tuniu's shareholders' equity

3,350,363


3,207,109


477,874

Noncontrolling interests

(5,830)


(5,250)


(782)

Total Shareholders' equity

3,344,533


3,201,859


477,092

Total liabilities and shareholders' equity

6,556,923


6,756,388


1,006,733













*On 1 January 2019, the Company adopted ASC 842, Leases and used the optional transition method to initially apply this new lease standard at the
adoption date. Right-of-use assets and lease liabilities were recognized on the Company's consolidated financial statements.

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except per share information)



 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 March 31, 2018 


 December 31, 2018 


 March 31, 2019 


 March 31, 2019 


 RMB 


 RMB 


 RMB 


 US$ 









Revenues








Packaged tours

402,679


357,619


365,893


54,520

Others

77,854


113,616


90,964


13,554

Net revenues

480,533


471,235


456,857


68,074

Cost of revenues

(217,907)


(201,018)


(206,019)


(30,698)

Gross profit

262,626


270,217


250,838


37,376









Operating expenses








Research and product development

(84,054)


(75,854)


(80,016)


(11,923)

Sales and marketing

(185,831)


(209,094)


(218,820)


(32,605)

General and administrative

(114,609)


(120,510)


(135,072)


(20,126)

Other operating income

735


32,130


2,543


379

Total operating expenses

(383,759)


(373,328)


(431,365)


(64,275)

Loss from operations

(121,133)


(103,111)


(180,527)


(26,899)

Other income/(expenses)








Interest and investment income

39,474


30,696


38,671


5,762

Interest expense

-


(6,158)


(6,810)


(1,015)

Foreign exchange gains/(losses), net

5,977


(2,043)


(303)


(45)

Other income, net

7,945


5,653


268


40

Loss before income tax expense

(67,737)


(74,963)


(148,701)


(22,157)

Income tax (expense)/benefit

(3,828)


2,025


525


78

Net loss

(71,565)


(72,938)


(148,176)


(22,079)

Net income/(loss) attributable to noncontrolling interests

1,299


(9,511)


1,169


174

Net income/(loss) attributable to redeemable noncontrolling
interests

940


(1,848)


714


106

Net loss attributable to Tuniu Corporation

(73,804)


(61,579)


(150,059)


(22,359)

Accretion on of redeemable noncontrolling interest

(869)


(3,082)


(543)


(81)

Net loss attributable to ordinary shareholders

(74,673)


(64,661)


(150,602)


(22,440)









Net loss

(71,565)


(72,938)


(148,176)


(22,079)

Other comprehensive (loss)/income:








Foreign currency translation adjustment, net of nil tax

(28,452)


1


(4,742)


(707)

Comprehensive loss

(100,017)


(72,937)


(152,918)


(22,786)









Loss per share








Net loss per ordinary share attributable to ordinary
shareholders - basic and diluted

(0.19)


(0.17)


(0.41)


(0.06)

Net loss per ADS - basic and diluted*

(0.57)


(0.51)


(1.23)


(0.18)

Weighted average number of ordinary shares used in
computing basic and diluted loss per share

388,843,912


370,486,502


369,190,766


369,190,766









Share-based compensation expenses included are as follows








Cost of revenues

227


392


1,869


278

Research and product development

1,260


2,173


5,041


751

Sales and marketing

185


333


1,416


211

General and administrative

10,709


8,901


14,835


2,210

Total

12,381


11,799


23,161


3,450









*Each ADS represents three of the Company's ordinary shares.







 

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)










 Quarter Ended March 31, 2019


 GAAP  


 Share-based 


Amortization of acquired 


 Non-GAAP 


 Result 


 Compensation 


  intangible assets 


 Result 









Cost of revenues

(206,019)


1,869


-


(204,150)









Research and product development

(80,016)


5,041


513


(74,462)

Sales and marketing

(218,820)


1,416


34,163


(183,241)

General and administrative

(135,072)


14,835


703


(119,534)

Other operating income

2,543


-


-


2,543

Total operating expenses

(431,365)


21,292


35,379


(374,694)









Loss from operations

(180,527)


23,161


35,379


(121,987)









Net loss

(148,176)


23,161


35,379


(89,636)









Net loss attributable to ordinary shareholders

(150,602)


23,161


35,379


(92,062)









Net loss per ordinary share attributable to ordinary
shareholders - basic and diluted (RMB)

(0.41)






(0.25)

Net loss per ADS - basic and diluted (RMB)

(1.23)






(0.75)

Weighted average number of ordinary shares used
in computing basic and diluted loss per share

369,190,766






369,190,766










 Quarter Ended December 31, 2018


 GAAP  


 Share-based 


Amortization of acquired 


 Non-GAAP 


 Result 


 Compensation 


  intangible assets 


 Result 









Cost of revenues

(201,018)


392


-


(200,626)









Research and product development

(75,854)


2,173


589


(73,092)

Sales and marketing

(209,094)


333


34,163


(174,598)

General and administrative

(120,510)


8,901


781


(110,828)

Other operating income

32,130


-


-


32,130

Total operating expenses

(373,328)


11,407


35,533


(326,388)









Loss from operations

(103,111)


11,799


35,533


(55,779)









Net loss

(72,938)


11,799


35,533


(25,606)









Net loss attributable to ordinary shareholders

(64,661)


11,799


35,533


(17,329)









Net loss per ordinary share attributable to ordinary
shareholders - basic and diluted (RMB)

(0.17)






(0.05)

Net loss per ADS - basic and diluted (RMB)

(0.51)






(0.15)

Weighted average number of ordinary shares used
in computing basic and diluted loss per share

370,486,502






370,486,502










 Quarter Ended March 31, 2018


 GAAP  


 Share-based 


Amortization of acquired 


 Non-GAAP 


 Result 


 Compensation 


  intangible assets 


 Result 









Cost of revenues

(217,907)


227


-


(217,680)









Research and product development

(84,054)


1,260


399


(82,395)

Sales and marketing

(185,831)


185


34,163


(151,483)

General and administrative

(114,609)


10,709


781


(103,119)

Other operating income

735


-


-


735

Total operating expenses

(383,759)


12,154


35,343


(336,262)









Loss from operations

(121,133)


12,381


35,343


(73,409)









Net loss

(71,565)


12,381


35,343


(23,841)









Net loss attributable to ordinary shareholders

(74,673)


12,381


35,343


(26,949)









Net loss per ordinary share attributable to ordinary
shareholders - basic and diluted (RMB)

(0.19)






(0.07)

Net loss per ADS - basic and diluted (RMB)

(0.57)






(0.21)

Weighted average number of ordinary shares used
in computing basic and diluted loss per share

388,843,912






388,843,912









*Basic net loss per ordinary share attributable to ordinary shareholders is calculated by dividing net loss attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding during the periods. Diluted net loss per ordinary
share attributable to ordinary shareholders is calculated by dividing net loss attributable to ordinary shareholders by the
weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the
dilutive effect of share-based awards as determined under the treasury stock method.

 

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Source: Tuniu
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