- Net revenues increased by 33.7% year-over-year to
RMB615.6 million
- Net income was RMB30.8
million with diluted earnings per ADS reaching
RMB0.44
- Non-GAAP adjusted EBITDA increased by 34.6%
year-over-year to RMB271.9
million
- Continued margin expansion by achieving non-GAAP
adjusted EBIT margin of 15.4% and non-GAAP adjusted EBITDA margin
of 44.2%
SHANGHAI, June 5, 2017 /PRNewswire/ -- eHi Car Services
Limited ("eHi" or the "Company") (NYSE: EHIC), a leading car rental
and car services provider in China, today announced its unaudited financial
results for the first quarter ended March
31, 2017.
Mr. Ray Zhang, eHi's Chairman and
Chief Executive Officer, said, "We are pleased to make progress in
our operations and to be able to report outstanding financial
results in the first quarter 2017. Our robust topline growth, along
with margin expansion and improved profitability, was driven by
robust consumer demand through the proactive addition of vehicles
in preparation for the Chinese New
Year holiday, broadened brand recognition and impeccable
service quality, as well as enhanced economies of scale. To further
capture Chinese travelers' evolving needs, we also launched our car
sharing business in April that offers free-floating, time-sharing
car rentals to customers with a fully automated rental and payment
process. Although our car sharing business is at its nascent stage
with current coverage of seven top-tier cities, we look forward to
exploring and growing this model to efficiently complement our car
rental business. With our deep understanding of Chinese travelers'
transportation needs and industry expertise, we are focused on
providing the best-in-class services through technology-driven
platforms and diversified service offerings.
"China's per capita disposable
income and population in the driving age continue to increase, and
we see exponential growth in demand for car rental and car services
in China, as Chinese travelers
spend to satisfy leisure and business travel needs while being less
sensitive to pricing. Our fleet utilization rate of 73.7% and total
RevPAC of RMB152 in the first quarter
were further testaments to our strategy. Given the healthy market
conditions, we will maintain our current pricing strategy and
commit to executing on our growth plan and achieving our strategic
objectives," Mr. Zhang concluded.
Mr. Colin Sung, eHi's Chief
Financial Officer, said, "We are pleased to kick off the year 2017
by delivering strong year-over-year net revenues growth of 33.7%
and net income of RMB30.8 million in
the first quarter. I am also very pleased to report our continued
margin expansion, reflected in a strong non-GAAP adjusted EBIT
margin of 15.4% and non-GAAP adjusted EBITDA margin of 44.2%.
Benefiting from our extensive nationwide service network and
existing fleet, our newly launched car sharing business will not
only enable us to provide a wide range of vehicle model selections
to satisfy growing customer demand, but to further improve our
operating efficiency and fleet utilization rates without additional
capital expenditures. Looking ahead, we will continue our efforts
to balance growth and profitability with an ongoing goal to extend
our margin expansion through increased efficiencies and
scalability."
First Quarter 2017 Highlights
Net revenues increased by 33.7%
year-over-year to RMB615.6 million
(US$89.4 million1) for the
first quarter of 2017, from RMB460.5
million for the first quarter of 2016, driven by increased
net revenues from both car rentals and car services.
|
Three
months ended March 31,
|
|
Year-Over-Year
|
(RMB '000)
|
2016
|
|
2017
|
|
Comparison
|
Car
rentals
|
363,977
|
|
496,676
|
|
36.5%
|
Car
services
|
96,533
|
|
118,895
|
|
23.2%
|
Total Net
Revenues
|
460,510
|
|
615,571
|
|
33.7%
|
|
Average Available
Fleet
Size2
|
|
|
|
RevPAC3
(RMB)
|
|
|
|
2016Q1
|
|
2017Q1
|
|
Year-Over-
Year
Comparison
|
|
2016Q1
|
|
2017Q1
|
|
Year-Over-
Year
Comparison
|
Car
rentals
|
32,007
|
|
42,041
|
|
31.3%
|
|
126
|
|
131
|
|
4.0%
|
Car
services
|
2,327
|
|
2,921
|
|
25.5%
|
|
461
|
|
452
|
|
(2.0%)
|
Total
|
34,334
|
|
44,962
|
|
31.0%
|
|
149
|
|
152
|
|
2.0%
|
|
- Fleet utilization
rate4 for car rentals was 73.7% for the first quarter of
2017, compared with 75.3% for the first quarter of
2016.
|
Cost of revenues (vehicle operating
expenses) for the first quarter of 2017 was RMB423.5 million (US$61.5
million), up 28.0% year-over-year, primarily driven by
increased depreciation and labor costs.
In the first quarter of 2017, 3,605 used vehicles were disposed
of, and 833 used vehicles were under sales contracts pending title
transfer. The Company recognized a disposal gain of RMB9.0 million (US$1.3
million) in aggregate for these 4,438 vehicles5.
In addition, a disposal gain of RMB1.2
million (US$0.2 million) was
recognized in the first quarter of 2017 as a result of the
completion of title transfer during such period. These disposal
gains were both recognized as adjustments to the vehicle-related
depreciation expense as part of the cost of revenues.
Gross profit6 for
the first quarter of 2017 was RMB192.1
million (US$27.9
million), up 48.0% year-over-year. Gross
profit margin for the first quarter of 2017 was 31.2%,
compared with 28.2% for the first quarter of 2016. Gross profit
margin improvement was primarily due to a percentage decrease of
vehicle-related depreciation in terms of net revenues.
Selling and marketing
expenses for the first quarter of 2017 were
RMB34.7 million (US$5.0 million), up 55.1% year-over -year, as the
Company expanded advertising and branding activities in the first
quarter of 2017, including the marketing activities associated with
the NBA China and NBA All-Star Stephen
Curry.
General and administrative expenses for the first
quarter of 2017 were RMB67.1 million
(US$9.7 million), up 17.6%
year-over-year, primarily due to increased employee-related costs
including salaries and welfare expenses as a result of increased
headcount in the first quarter of 2017.
Interest expense for the first quarter of 2017 was
RMB55.6 million (US$8.1 million), decreased by 1.0%
year-over-year, primarily attributable to paying down some debts
bearing relatively higher interest rates.
Net income for the first quarter of
2017 was RMB30.8 million
(US$4.5 million), compared with a net
loss of RMB3.7 million for the first
quarter of 2016. Net income margin for the first
quarter of 2017 was 5.0%, compared with a net loss margin of (0.8%)
for the first quarter of 2016.
Basic and diluted earnings per ADS for the first
quarter of 2017 were RMB0.44
(US$0.06) each, compared with basic
and diluted loss per ADS of RMB0.05
each for the first quarter of 2016.
Non-GAAP adjusted EBIT7
increased by 73.3% year-over-year to RMB94.8
million (US$13.8 million) for
the first quarter of 2017, from RMB54.7
million for the first quarter of 2016. Non-GAAP adjusted
EBIT margin7 increased to 15.4% for the first quarter of
2017, from 11.9% for the first quarter of 2016.
Non-GAAP adjusted
EBITDA8 increased by 34.6%
year-over-year to RMB271.9 million
(US$39.5 million) for the first
quarter of 2017, from RMB201.9
million for the first quarter of 2016. Non-GAAP adjusted
EBITDA margin8 increased to 44.2% for the first quarter
of 2017, from 43.8% for the first quarter of 2016.
As of March 31, 2017, the
Company's cash, cash equivalents and restricted cash
balance was RMB711.3 million
(US$103.3 million).
Outlook
The Company estimates that net revenues for the second quarter
of 2017 will range from RMB635 million to
RMB650 million, and for full year of 2017 will range from
RMB2.9 billion to RMB3.0 billion.
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 AM U.S. Eastern Time on
June 5, 2017 (8:00 PM Beijing/Hong
Kong time on June 5,
2017).
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 June 12,
2017:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10107913
|
About eHi Car Services Limited
eHi Car Services Limited (NYSE: EHIC) is one of the leading car
rental and car services providers in China. 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 expense, interest income
and provision for income taxes. Adjusted EBITDA represents net
income or loss before depreciation and amortization, share-based
compensation, interest expense, interest income and provision for
income taxes. 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
expense, 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.
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 RMB6.8832 to US$1.00, the
effective noon buying rate as of March 31, 2017 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 "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.
|
3 "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.
|
4
"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.
|
5 The gain
of RMB9.0 million is a net amount of (i) the disposal gain and loss
of the 3,605 used vehicles which were disposed of, and (ii) the
disposal loss of the 833 used vehicles which were under sales
contracts pending title transfer. If there is any disposal gain for
the vehicles pending title transfer, such a gain will be recognized
in the next period when the title transfer has been
completed.
|
6 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.
|
7
Non-GAAP adjusted EBIT is defined as net income before share-based
compensation, interest expense, interest income and provision for
income taxes. 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.
|
8 Non-GAAP
adjusted EBITDA is defined as net income before depreciation and
amortization, share-based compensation, interest expense, interest
income and provision for income taxes. 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.
|
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.
Ms. Brandi Piacente
Tel: +1-212-481-2050
E-mail: ehi@tpg-ir.com
eHi Car Services
Limited
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
December 31,
2016
|
|
March 31,
2017
|
|
March
31,
2017
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
529,518,517
|
|
550,912,256
|
|
80,037,229
|
Restricted
cash
|
|
257,059,302
|
|
160,423,913
|
|
23,306,589
|
Accounts receivable,
net
|
|
214,767,818
|
|
267,362,387
|
|
38,842,746
|
Prepayments and other
current assets
|
|
727,787,345
|
|
971,096,411
|
|
141,082,115
|
Short term loans
receivable
|
|
50,000,000
|
|
50,000,000
|
|
7,264,063
|
Assets held for
sale
|
|
160,732,289
|
|
76,433,727
|
|
11,104,388
|
Deferred tax assets,
current
|
|
1,839,973
|
|
-
|
|
-
|
Total current
assets
|
|
1,941,705,244
|
|
2,076,228,694
|
|
301,637,130
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
5,723,569,175
|
|
5,293,533,040
|
|
769,051,174
|
Intangible
assets
|
|
64,101,470
|
|
63,840,616
|
|
9,274,845
|
Vehicle purchase
deposits
|
|
420,922,908
|
|
385,547,676
|
|
56,012,854
|
Deferred tax assets,
non-current
|
|
649,675
|
|
2,489,648
|
|
361,700
|
Other non-current
assets
|
|
10,010,628
|
|
29,081,741
|
|
4,225,033
|
Total
assets
|
|
8,160,959,100
|
|
7,850,721,415
|
|
1,140,562,736
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
179,877,847
|
|
65,196,185
|
|
9,471,784
|
Accrued expenses and
other current liabilities
|
|
284,574,997
|
|
239,152,338
|
|
34,744,356
|
Income tax
payable
|
|
5,436,989
|
|
11,628,549
|
|
1,689,410
|
Short-term
debt
|
|
926,219,333
|
|
761,682,630
|
|
110,658,216
|
Total current
liabilities
|
|
1,396,109,166
|
|
1,077,659,702
|
|
156,563,766
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,767,822,989
|
|
2,730,375,911
|
|
396,672,465
|
Deferred tax
liabilities, non-current
|
|
1,061,542
|
|
1,061,542
|
|
154,222
|
Other non-current
liabilities
|
|
4,835,862
|
|
8,943,479
|
|
1,299,320
|
Total
liabilities
|
|
4,169,829,559
|
|
3,818,040,634
|
|
554,689,773
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common
shares
|
|
878,463
|
|
878,484
|
|
127,627
|
Additional paid-in
capital
|
|
4,474,702,198
|
|
4,478,418,624
|
|
650,630,321
|
Accumulated other
comprehensive income
|
|
43,201,465
|
|
50,236,061
|
|
7,298,358
|
Accumulated
deficits
|
|
(527,652,585)
|
|
(496,852,388)
|
|
(72,183,343)
|
Total
shareholders' equity
|
|
3,991,129,541
|
|
4,032,680,781
|
|
585,872,963
|
Total liabilities
and shareholders' equity
|
|
8,160,959,100
|
|
7,850,721,415
|
|
1,140,562,736
|
eHi Car Services
Limited
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income/(Loss)
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Net
revenues:
|
|
|
|
|
|
|
|
Car rentals
|
|
|
363,977,398
|
|
496,676,274
|
|
72,157,757
|
Car
services
|
|
|
96,533,057
|
|
118,895,405
|
|
17,273,275
|
Total net
revenues
|
|
|
460,510,455
|
|
615,571,679
|
|
89,431,032
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(330,775,689)
|
|
(423,505,544)
|
|
(61,527,421)
|
Gross
profit
|
|
|
129,734,766
|
|
192,066,135
|
|
27,903,611
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
|
(22,355,437)
|
|
(34,680,579)
|
|
(5,038,438)
|
General and
administrative expenses
|
|
|
(57,016,459)
|
|
(67,062,104)
|
|
(9,742,867)
|
Other operating
income
|
|
|
38,636
|
|
217,199
|
|
31,555
|
Total operating
expenses
|
|
|
(79,333,260)
|
|
(101,525,484)
|
|
(14,749,750)
|
Profit from
operations
|
|
|
50,401,506
|
|
90,540,651
|
|
13,153,861
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,560,192
|
|
2,193,709
|
|
318,703
|
Interest
expense
|
|
|
(56,139,093)
|
|
(55,576,034)
|
|
(8,074,156)
|
Other income,
net
|
|
|
704,265
|
|
557,820
|
|
81,041
|
Income / (loss)
before income taxes
|
|
|
(3,473,130)
|
|
37,716,146
|
|
5,479,449
|
Provision for income
taxes
|
|
|
(268,216)
|
|
(6,915,949)
|
|
(1,004,758)
|
Net income
/ (loss)
|
|
|
(3,741,346)
|
|
30,800,197
|
|
4,474,691
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
|
|
(3,741,346)
|
|
30,800,197
|
|
4,474,691
|
Changes in cumulative
foreign currency translation
adjustment, net of tax of nil
|
|
|
(1,183,682)
|
|
7,034,596
|
|
1,021,995
|
Comprehensive
income / (loss)
|
|
|
(4,925,028)
|
|
37,834,793
|
|
5,496,686
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in
computing net income / (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
|
|
136,911,050
|
|
138,631,520
|
|
138,631,520
|
Diluted
|
|
|
136,911,050
|
|
139,404,909
|
|
139,404,909
|
|
|
|
|
|
|
|
|
Net income /
(loss) per share attributable to common
shareholders
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.03)
|
|
0.22
|
|
0.03
|
Diluted
|
|
|
(0.03)
|
|
0.22
|
|
0.03
|
|
|
|
|
|
|
|
|
Earnings / (loss)
per ADS*
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.05)
|
|
0.44
|
|
0.06
|
Diluted
|
|
|
(0.05)
|
|
0.44
|
|
0.06
|
eHi Car Services
Limited
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
For the Three Months Ended March
31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Net Income
/ (loss)
|
|
(3,741,346)
|
|
30,800,197
|
|
4,474,691
|
Add /
(subtract):
|
|
|
|
|
|
|
Share-based
compensation
|
|
3,609,425
|
|
3,716,447
|
|
539,930
|
Interest
income
|
|
(1,560,192)
|
|
(2,193,709)
|
|
(318,703)
|
Interest
expense
|
|
56,139,093
|
|
55,576,034
|
|
8,074,156
|
Provision for income
taxes
|
|
268,216
|
|
6,915,949
|
|
1,004,758
|
Adjusted
EBIT
|
|
54,715,196
|
|
94,814,918
|
|
13,774,832
|
Depreciation and
amortization
|
|
147,191,410
|
|
177,042,928
|
|
25,721,021
|
Adjusted
EBITDA
|
|
201,906,606
|
|
271,857,846
|
|
39,495,853
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ehi-car-services-announces-first-quarter-2017-results-300468439.html
SOURCE eHi Car Services Limited