Tuniu Announces Unaudited First Quarter 2019 Financial Results
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 940 (1,848) 714 106
interests
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 (0.19) (0.17) (0.41) (0.06)
shareholders - basic and diluted
Net loss per ADS - basic and diluted* (0.57) (0.51) (1.23) (0.18)
Weighted average number of ordinary shares used in 388,843,912 370,486,502 369,190,766 369,190,766
computing basic and diluted loss per share
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 (0.41) (0.25)
shareholders - basic and diluted (RMB)
Net loss per ADS - basic and diluted (RMB) (1.23) (0.75)
Weighted average number of ordinary shares used 369,190,766 369,190,766
in computing basic and diluted loss per share
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 (0.17) (0.05)
shareholders - basic and diluted (RMB)
Net loss per ADS - basic and diluted (RMB) (0.51) (0.15)
Weighted average number of ordinary shares used 370,486,502 370,486,502
in computing basic and diluted loss per share
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 (0.19) (0.07)
shareholders - basic and diluted (RMB)
Net loss per ADS - basic and diluted (RMB) (0.57) (0.21)
Weighted average number of ordinary shares used 388,843,912 388,843,912
in computing basic and diluted loss per share
*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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