eHi Car Services Announces Full Year 2017 Results
eHi Car Services Announces Full Year 2017 Results
SHANGHAI, April 9, 2018 /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 full year ended December 31, 2017.
Unaudited Full Year 2017 Financial Results
Net revenues for the full year of 2017 were RMB2,739.5 million (US$421.1 million), up 29.9% compared with the full year of 2016, attributable to increases in net revenues from both car rentals and car services.
Revenues from car rentals for the full year of 2017 were RMB2,196.5 million (US$337.6 million), up 32.0% compared with the full year of 2016, primarily driven by the growing average available fleet size for car rentals in response to customer demand.
Revenues from car services for the full year of 2017 were RMB543.1 million (US$83.5 million), up 21.9% compared with the full year of 2016, primarily driven by increased demand from existing and new customers for car services.
Cost of revenues (vehicle operating expenses) for the full year of 2017 were RMB1,880.3 million (US$289.0 million), up 24.1% compared with the full year of 2016, primarily due to increased depreciation and labor costs.
In 2017, 13,870 used vehicles were disposed of, and 936 used vehicles were under sales contracts pending title transfer. The Company recorded a disposal gain of RMB24.2 million (US$3.7 million) in aggregate for these 14,806 vehicles(1). The gain was recognized as an adjustment to the vehicle related depreciation expense as part of the cost of revenues.
Gross profit for the full year of 2017 was RMB859.2 million (US$132.1 million), up 44.7% year-over-year. Gross profit margin for the full year of 2017 was 31.4%, compared with 28.1% for the full year of 2016.
Selling and marketing expenses for the full year of 2017 were RMB139.0 million (US$21.4 million), up 43.1% compared with the full year of 2016 primarily due to increased sales and promotion activities in 2017.
General and administrative expenses for the full year of 2017 were RMB270.7 million (US$41.6 million), up 7.4% compared with the full year of 2016, primarily due to increases in employee-related costs such as salaries and welfare expenses as a result of increased headcount.
Profit from operations for the full year of 2017 was RMB453.2 million (US$69.7 million), up 77.8% compared with the full year of 2016.
Interest expense for the full year of 2017 was RMB280.6 million (US$43.1 million), up 24.7% compared with the full year of 2016, primarily attributable to the interest expense associated with the Company's US$400 million senior unsecured notes that was issued in August 2017.
Net income for the full year of 2017 was RMB122.2 million (US$18.8 million), compared with RMB33.1 million for the full year of 2016. Net income margin for the full year of 2017 was 4.5%, up approximately 290 basis points from 1.6% for the full year of 2016.
Basic and diluted earnings per ADS for the full year of 2017 were RMB1.76 and RMB1.75 (US$0.27 and US$0.27), respectively, compared with basic and diluted earnings per ADS of RMB0.48 each, for the full year of 2016.
Non-GAAP adjusted EBIT for the full year of 2017 was RMB472.7 million (US$72.7 million), up 73.6% compared with the full year of 2016. Non-GAAP adjusted EBIT margin for the full year of 2017 was 17.3%, compared with 12.9% for the full year of 2016.
Non-GAAP adjusted EBITDA for the full year of 2017 was RMB1,227.8 million (US$188.7 million), up 30.6% compared with the full year of 2016. Non-GAAP adjusted EBITDA margin for the full year of 2017 was 44.8%, compared with 44.6% for the full year of 2016.
As of December 31, 2017 and 2016, the Company's cash, cash equivalents and restricted cash balance was RMB1,283.5 million (US$197.3 million) and RMB786.6 million, respectively.
(1) The gain of RMB24.2
million is a net amount of
(i) the disposal gain and
loss of the 13,870 used
vehicles which were disposed
of, and (ii) the disposal
loss of the 936 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.
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, provision for income taxes, debt extinguishment costs, cost related to aborted offering. Adjusted EBITDA represents net income or loss before depreciation and amortization, share-based compensation, interest expense, interest income, provision for income taxes, debt extinguishment costs, cost related to aborted offering. 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 2017, as amended, and the U.S. Private Securities Litigation Reform Act of 2017. 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. 8830
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, December 31, December 31,
2016 2017 2017
---- ---- ----
RMB RMB USD
Unaudited Unaudited Unaudited
ASSETS
Current assets:
Cash and cash equivalents 529,518,517 671,350,459 103,184,676
Restricted cash 257,059,302 612,121,936 94,081,419
Accounts receivable, net 214,767,818 446,223,596 68,583,311
Prepayments and other current assets 727,787,345 1,505,857,012 231,445,985
Short term loans receivable 50,000,000 50,000,000 7,684,859
Assets held for sale 160,732,289 78,904,246 12,127,361
Deferred tax assets, current 1,839,973 - -
--------- --- ---
Total current assets 1,941,705,244 3,364,457,249 517,107,611
------------- ------------- -----------
Cost method investment - 10,800,000 1,659,930
Property and equipment, net 5,723,569,175 7,057,045,317 1,084,648,005
Intangible assets 64,101,470 66,505,752 10,221,747
Vehicle purchase deposits 420,922,908 367,839,691 56,535,925
Deferred tax assets, non-current 649,675 - -
Other non-current assets 10,010,628 61,814,009 9,500,639
---------- ---------- ---------
Total assets 8,160,959,100 10,928,462,018 1,679,673,857
------------- -------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 179,877,847 617,870,011 94,964,882
Accrued expenses and other current liabilities 284,574,997 434,097,575 66,719,576
Income tax payable 5,436,989 18,180,848 2,794,345
Short-term debt 926,219,333 2,657,445,857 408,441,950
----------- ------------- -----------
Total current liabilities 1,396,109,166 3,727,594,291 572,920,753
------------- ------------- -----------
Long-term debt 2,767,822,989 2,957,056,474 454,491,258
Deferred tax liabilities, non-current 1,061,542 27,638,307 4,247,930
Other non-current liabilities 4,835,862 9,626,177 1,479,516
--------- --------- ---------
Total liabilities 4,169,829,559 6,721,915,249 1,033,139,457
------------- ------------- -------------
Shareholders' equity:
Common shares 878,463 878,663 135,048
Additional paid-in capital 4,474,702,198 4,489,246,326 689,984,527
Accumulated other comprehensive income 43,201,465 121,858,122 18,729,250
Accumulated deficits (527,652,585) (405,436,342) (62,314,425)
------------ ------------ -----------
Total shareholders' equity 3,991,129,541 4,206,546,769 646,534,400
------------- ------------- -----------
Total liabilities and shareholders' equity 8,160,959,100 10,928,462,018 1,679,673,857
------------- -------------- -------------
eHi Car Services Limited
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the Years Ended December 31,
--------------------------------
2016 2017 2017
RMB RMB USD
--- --- ---
Unaudited Unaudited Unaudited
Net revenues:
Car rentals 1,663,546,502 2,196,455,811 337,589,077
Car services 445,397,923 543,066,377 83,467,774
----------- ----------- ----------
Total net revenues 2,108,944,425 2,739,522,188 421,056,851
------------- ------------- -----------
Cost of revenues (1,515,281,510) (1,880,348,975) (289,004,346)
-------------- -------------- ------------
Gross profit 593,662,915 859,173,213 132,052,505
----------- ----------- -----------
Selling and marketing expenses (97,187,525) (139,031,953) (21,368,820)
General and administrative expenses (251,938,077) (270,670,181) (41,601,245)
Other operating income 10,310,089 3,762,667 578,311
---------- --------- -------
Total operating expenses (338,815,513) (405,939,467) (62,391,754)
------------ ------------ -----------
Profit from operations 254,847,402 453,233,746 69,660,751
Interest income 8,413,945 14,962,132 2,299,638
Interest expense (224,959,389) (280,584,832) (43,125,099)
Other income, net 1,444,129 1,957,019 300,788
Early extinguishment of debt costs - (19,976,776) (3,070,374)
--- ----------- ----------
Income before income taxes 39,746,087 169,591,289 26,065,704
Provision for income taxes (6,610,971) (47,375,046) (7,281,411)
---------- ----------- ----------
Net income 33,135,116 122,216,243 18,784,293
---------- ----------- ----------
Net income 33,135,116 122,216,243 18,784,293
Changes in cumulative foreign currency translation (31,353,357) 78,656,657 12,089,307
adjustment, net of tax of nil
Comprehensive income 1,781,759 200,872,900 30,873,600
--------- ----------- ----------
Weighted average number of common shares used
in computing net income per share
Basic 137,621,702 138,794,624 138,794,624
Diluted 138,552,031 139,593,917 139,593,917
Net income per share attributable to common
shareholders
Basic 0.24 0.88 0.14
Diluted 0.24 0.88 0.13
Earnings per ADS*
Basic 0.48 1.76 0.27
Diluted 0.48 1.75 0.27
* Each ADS represents two Class A common shares
eHi Car Services Limited
Reconciliation of GAAP and Non-GAAP Results
For the Years Ended December 31,
--------------------------------
2016 2017 2017
RMB RMB USD
--- --- ---
Unaudited Unaudited Unaudited
Net Income 33,135,116 122,216,243 18,784,293
Add / (subtract):
Share-based compensation 16,040,947 13,588,843 2,088,567
Interest income (8,413,945) (14,962,132) (2,299,638)
Interest expense 224,959,389 280,584,832 43,125,099
Provision for income taxes 6,610,971 47,375,046 7,281,411
Debt extinguishment cost - 19,976,776 3,070,374
Cost related to aborted offering - 3,923,420 603,019
Adjusted EBIT 272,332,478 472,703,028 72,653,125
Depreciation and amortization 668,018,252 755,065,789 116,051,487
----------- ----------- -----------
Adjusted EBITDA 940,350,730 1,227,768,817 188,704,612
----------- ------------- -----------
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SOURCE eHi Car Services Limited
