SINA CORPORATION SHANGHAI, Nov. 21, 2016 /PRNewswire/ -- SINA Corporation (the "Company" or "SINA") (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced its unaudited financial results for the third quarter ended September 30, 2016.
Third Quarter 2016 Highlights
-- Net revenues increased 21% year over year to $274.9 million. Non-GAAP
net revenues increased 22% year over year to $272.3 million.
-- Advertising revenues grew 21% year over year to $233.6 million.
-- Income from operations increased 147% year over year to $36.3 million.
Operating margin was 13%, up from 6% for the same period last year.
Non-GAAP income from operations increased 99% year over year to $56.5
million. Non-GAAP operating margin was 21%, up from 13% for the same
period last year.
-- Net income attributable to SINA was $146.5 million, or $1.90 diluted net
income per share. Non-GAAP net income attributable to SINA was $43.7
million, or $0.56 diluted net income per share.
-- Weibo's monthly active users ("MAUs") in September 2016 grew 34% year
over year to 297 million, 89% of which were mobile users. Average daily
active users ("DAUs") in September 2016 grew 32% year over year to 132
million.
"We are delighted to have another solid quarter." said Charles Chao, Chairman and CEO of SINA. "SINA portal has further implemented its mobile strategy, with significant growth of mobile traffic from SINA News Application. Mobile monetization for portal has further enhanced, with 50% of the portal advertising revenues coming from mobile devices." Mr. Chao added.
"With strong growth in user base, revenues and profitability, Weibo has demonstrated its platform value with the network effect of the content ecosystem and strong monetization capability." said Mr. Chao. "We take great pride that Weibo is returning to the center stage of Chinese Internet market."
Third Quarter 2016 Financial Results
For the third quarter of 2016, SINA reported net revenues of $274.9 million, compared to $226.3 million for the same period last year. Non-GAAP net revenues for the third quarter of 2016 totaled $272.3 million, compared to $223.7 million for the same period last year.
Online advertising revenues for the third quarter of 2016 were $233.6 million, compared to $193.5 million for the same period last year. The year-over-year growth in online advertising revenues resulted from an increase of $47.8 million in Weibo advertising and marketing revenues, partially offset by a decline of $7.7 million in portal advertising revenues.
Non-advertising revenues for the third quarter of 2016 were $41.2 million, compared to $32.8 million for the same period last year. The year-over-year growth in non-advertising revenues was mainly resulted from an increase of $7.1 million in portal non-advertising revenues. Non-GAAP non-advertising revenues for the third quarter of 2016 were $38.6 million, compared to $30.2 million for the same period last year.
Gross margin for the third quarter of 2016 was 67%, compared to 63% for the same period last year. Advertising gross margin for the third quarter of 2016 was 70%, compared to 64% for the same period last year. The increasing advertising revenue proportion contributed by small and medium enterprises customers in both portal and Weibo business is the key driver that resulted in a higher gross margin for our advertising business. Non-advertising gross margin for the third quarter of 2016 was 54%, compared to 60% for the same period last year. The decrease in non-advertising gross margin was primarily due to increasing proportion of portal non-advertising revenues, which contributed lower gross margin.
Operating expenses for the third quarter of 2016 totaled $148.2 million, compared to $128.6 million for the same period last year. Non-GAAP operating expenses for the third quarter of 2016 totaled $127.9 million, compared to $113.9 million for the same period last year. The year-over-year growth of non-GAAP operating expenses was mainly resulted from an increase of sales and marketing expenditure for portal and Weibo.
Income from operations for the third quarter of 2016 was $36.3 million, compared to $14.7 million for the same period last year. Operating margin was 13%, up from 6% for the same period last year. Non-GAAP income from operations for the third quarter of 2016 was $56.5 million, compared to $28.4 million for the same period last year. Non-GAAP operating margin was 21%, up from 13% for the same period last year.
Non-operating income for the third quarter of 2016 was $143.1 million, compared to a non-operating income of $4.9 million for the same period last year. Non-operating income for the third quarter of 2016 mainly included: (i) a $133.5 million net gain on sale of and impairment on investments, which is excluded under non-GAAP measure; and (ii) a $5.5 million earnings pick-up from equity-method investments, which are accounted for under the equity-method and reported one quarter in arrears, mainly resulted from earnings pick-up from the Company's investment in E-House.
Net income attributable to SINA for the third quarter of 2016 was $146.5 million, compared to $9.8 million for the same period last year. Diluted net income per share attributable to SINA for the third quarter of 2016 was $1.90, compared to $0.16 for the same period last year. Non-GAAP net income attributable to SINA for the third quarter of 2016 was $43.7 million, compared to $24.4 million for the same period last year. Non-GAAP diluted net income per share attributable to SINA for the third quarter of 2016 was $0.56, compared to $0.39 for the same period last year.
As of September 30, 2016, SINA's cash, cash equivalents and short-term investments totaled $2.2 billion, at similar level compared with the balance as of December 31, 2015. For the third quarter of 2016, net cash provided by operating activities was $256.1 million, capital expenditures totaled $2.3 million, and depreciation and amortization expenses amounted to $7.3 million.
Other Developments
Completion of E-House Merger
As previously announced on June 19, 2015, SINA joined a consortium along with Mr. Xin Zhou, co-chairman of the board of directors and chief executive officer of E-House (China) Holdings Limited ("E-House"), a leading real estate services company in China, and Mr. Neil Nanpeng Shen, a board member of E-House, to acquire all the outstanding ordinary shares of E-House not already owned by SINA, Mr. Xin Zhou, Mr. Neil Nanpeng Shen or their respective affiliates. Pursuant to a definitive agreement and plan of merger (the "Merger Agreement") with E-House Holdings Ltd. ("Parent"), on August 12, 2016 (the "Closing Date"), E-House completed its merger and became a wholly-owned subsidiary of Parent. Sina contributed approximately $140.0 million to subscribe newly issued shares of Parent. Immediately following the Closing Date, the Company held 43% of total outstanding shares of Parent and continued to apply equity-method to account for the investment in Parent.
On the Closing Date, SINA, Parent and certain other shareholders of Parent entered into a shareholders agreement, pursuant to which (a) Parent undertakes, among other things, that it shall not, directly or indirectly, dispose any ordinary shares of Leju Holdings Limited ("Leju"), an NYSE-listed company, owned by E-House without the prior written approval of each of Mr. Xin Zhou and SINA; and (b) during the 18-month period following the Closing Date, Parent has an option to repurchase all the equity interest held by SINA in Parent for a consideration consisting of (i) 30% of the total outstanding ordinary shares of Leju at the time of the repurchase, and (ii) certain cash payment. The option was recognized as a liability on the basis of its fair value, and its subsequent changes in fair value was reflected in the fair value change in option liability.
In-Kind Distribution
On August 31, 2016, the Company announced its planned distribution of shares of Weibo to SINA shareholders as of the record date of September 12, 2016 on a pro rata basis, or one Weibo Share for each ten outstanding SINA ordinary shares. As of the distribution date of October 14, 2016, the Company has distributed 7,088,116 Class A ordinary shares of Weibo, based on 70,881,168 ordinary shares of SINA outstanding as of the record date. Following the distribution of the Weibo Shares, SINA's equity stake in Weibo decreased from approximately 53.5% (or approximately 78% by voting power) to approximately 50.2% (or approximately 75% by voting power), which resulted in an increase in the percentage of the non-controlling interests related to Weibo.
Annual General Meeting
On November 4, 2016, the Company held its annual general meeting of shareholders, where the shareholders re-elected Mr. Ter Fung Tsao as director of SINA. The shareholders also approved and ratified the appointment of PricewaterhouseCoopers Zhong Tian LLP as the Company's independent auditors for the fiscal year ending December 31, 2016.
Non-GAAP Measures
This release contains the following non-GAAP financial measures: non-GAAP net revenues, non-GAAP non-advertising revenues, non-GAAP advertising and non-advertising gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) attributable to SINA and non-GAAP diluted net income (loss) per share attributable to SINA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with U.S. GAAP. The Company's non-GAAP financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures.
The Company's non-GAAP financial measures exclude recognition of deferred revenues in relation to the equity investment in E-House, stock-based compensation, amortization of intangible assets, adjustment for non-GAAP to GAAP reconciling items on the share of equity method investments, gain/loss on sale of investment/business, deemed disposal and impairment on investment, impairment on goodwill, change in fair value in option liability, amortization of convertible debt issuance cost, income tax effects of above non-GAAP to GAAP reconciling items and adjustments for non-GAAP to GAAP reconciling items for the income (loss) attributable to non-controlling interests. The Company's management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.
Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Management compensates for these limitations by also considering the Company's financial results prepared in accordance with U.S. GAAP. Reconciliations of the Company's non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."
Conference Call
SINA will host a conference call from 9:10 p.m. - 9:50 p.m. Eastern Time on November 21, 2016 (or 10:10 a.m. - 10:50 a.m. Beijing Time on November 22, 2016) to present an overview of the Company's financial performance and business operations. A live webcast of the call will be available through the Company's corporate website at http://corp.sina.com.cn. The conference call can be accessed as follows:
US: +1 845 675 0438
Hong Kong: +852 3018 6776
China: 400 120 0654
International: +65 6713 5440
Passcode for all regions: 15998968
A replay of the conference call will be available through morning Eastern Time November 29, 2016. The dial-in number is +61 2 9003 4211. The passcode for the replay is 15998968.
About SINA
We are a leading online media company serving China and the global Chinese communities. Our digital media network of SINA.com (portal), SINA.cn (mobile portal), SINA Mobile Apps and Weibo.com (social media) enables Internet users to access professional media and user generated content in multi-media formats from personal computers and mobile devices and share their interests with friends and acquaintances.
SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. SINA.cn and SINA Mobile Apps provide news information, professional and entertainment content from SINA.com customized for mobile users in WAP (mobile browser) and mobile application format. Weibo is a leading social media platform for people to create, distribute and discover Chinese-language content. Based on an open platform architecture, Weibo allows users to create and post feeds and attach multi-media content, as well as access a wide range of organically and third-party developed applications, such as online games.
Through these properties and other product lines, we offer an array of online media and social media services to our users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things, SINA's expected financial performance and SINA's strategic and operational plans (as described, without limitation, in quotations from management in this press release). SINA may also make forward-looking statements in the Company's periodic reports 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. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and MVAS products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including equity pick-up and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA's annual report on Form 20-F for the year ended December 31, 2015 and other filings with the Securities and Exchange Commission.
Contact:
Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: ir@staff.sina.com.cn
SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. Dollars in thousands, except per share data)
Three months ended Nine months ended
------------------ -----------------
September 30, June 30, September 30,
------------- -------- -------------
2016 2015 2016 2016 2015
---- ---- ---- ---- ----
Net revenues:
Advertising $233,633 $193,459 $205,031 $601,631 $520,070
Non-advertising 41,242 32,835 38,931 115,881 104,409
------ ------ ------ ------- -------
274,875 226,294 243,962 717,512 624,479
------- ------- ------- ------- -------
Cost of revenues *:
Advertising 71,194 69,741 73,083 212,466 202,668
Non-advertising 19,133 13,276 15,834 47,672 43,658
------ ------ ------ ------ ------
90,327 83,017 88,917 260,138 246,326
------ ------ ------ ------- -------
Gross profit 184,548 143,277 155,045 457,374 378,153
------- ------- ------- ------- -------
Operating expenses:
Sales and marketing * 64,176 53,342 56,895 172,773 167,577
Product development * 55,674 54,417 53,522 161,690 157,818
General and administrative * 28,366 20,830 23,808 74,308 70,123
------ ------ ------ ------ ------
148,216 128,589 134,225 408,771 395,518
------- ------- ------- ------- -------
Income (Loss) from operations 36,332 14,688 20,820 48,603 (17,365)
------ ------ ------ ------ -------
Non-operating income:
Earning (Loss) from equity method investments, net 5,534 93 (6,190) (11,220) 1,016
Gain on sale of investments/business and impairment on investments, net 133,505 (1,066) 34,925 196,657 16,881
Fair value change in option liability (2,653) - - (2,653) -
Interest and other income, net 6,703 5,892 6,308 19,619 18,130
----- ----- ----- ------ ------
143,089 4,919 35,043 202,403 36,027
Income before income taxes 179,421 19,607 55,863 251,006 18,662
Income tax expenses (19,050) (4,756) (2,747) (21,781) (4,793)
------- ------ ------ ------- ------
Net income 160,371 14,851 53,116 229,225 13,869
Less: Net income attributable to non-controlling interests 13,853 5,085 9,789 24,060 2,744
------ ----- ----- ------ -----
Net income attributable to SINA $146,518 $9,766 $43,327 $205,165 $11,125
======== ====== ======= ======== =======
Basic net income per share attributable to SINA $2.08 $0.17 $0.62 $2.93 $0.19
===== ===== ===== ===== =====
Diluted net income per share attributable to SINA ** $1.90 $0.16 $0.59 $2.74 $0.18
===== ===== ===== ===== =====
Shares used in computing basic
net income per share attributable to SINA 70,420 58,512 70,047 70,108 58,559
Shares used in computing diluted
net income per share attributable to SINA 78,303 58,799 77,202 77,486 58,854
* Stock-based compensation in each category:
Cost of revenues - advertising $2,380 $1,569 $1,775 $5,721 $4,131
Sales and marketing 4,791 3,121 3,303 10,937 8,337
Product development 7,261 4,264 3,592 15,775 10,863
General and administrative 7,853 6,437 7,165 21,929 19,960
** Net income attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.
SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
September 30, December 31,
2016 2015
---- ----
Assets
Current assets:
Cash and cash equivalents $1,158,970 $763,439
Short-term investments 1,050,206 1,446,414
Restricted cash 304,375 140,652
Accounts receivable, net 221,132 228,732
Prepaid expenses and other current assets * 288,088 135,416
------- -------
Subtotal 3,022,771 2,714,653
--------- ---------
Property and equipment, net 248,657 47,495
Goodwill and intangible assets, net 57,616 61,954
Long-term investments 1,324,017 1,212,640
Other assets 192,175 320,205
Total assets $4,845,236 $4,356,947
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ** $117,467 $81,351
Amount due to customers 304,375 140,652
Accrued liabilities ** 310,449 265,490
Short-term loan 82,081 -
Convertible debt * 799,301 795,108
Deferred revenues 96,862 79,528
Income taxes payable 30,086 16,426
Option liability 2,653 -
Subtotal 1,743,274 1,378,555
--------- ---------
Long-term deferred revenues 67,892 76,003
Other long-term liabilities 25,050 25,721
Total liabilities 1,836,216 1,480,279
Shareholders' equity
SINA shareholders' equity 2,624,124 2,565,272
Non-controlling interests 384,896 311,396
------- -------
Total shareholders' equity 3,009,020 2,876,668
Total liabilities and shareholders' equity $4,845,236 $4,356,947
* Effectively January 2016, ASU 2015-3 issued by FASB requires entities to present the
issuance
costs of debt in the balance sheet as a direct deduction from the related debt rather than
assets.
Accordingly, the Company retrospectively reclassified $4.9 million of issuance cost of debt
from
prepaid expenses and other current assets into convertible debt as of December 31, 2015.
** Commencing on January 1, 2016, in order to enhance comparability with industry peers,
payables that have been invoiced or formally agreed with the suppliers were recorded in
accounts payable. To conform to current period presentations, the relevant amounts in prior
periods have been reclassified from accrued liabilities accordingly. Such reclassification
amounted to $77.8 million as of December 31, 2015.
SINA CORPORATION
UNAUDITED ADDITIONAL INFORMATION
(U.S. Dollars in thousands)
Three months ended Nine months ended
------------------ -----------------
September 30, June 30, September 30,
------------- -------- -------------
2016 2015 2016 2016 2015
---- ---- ---- ---- ----
Net revenues
Portal:
Portal Advertising $79,855 $87,598 $78,694 $222,270 $247,182
Other 21,058 13,962 19,219 55,941 48,431
------ ------ ------ ------ ------
Subtotal 100,913 101,560 97,913 278,211 295,613
Weibo:
Advertising and marketing 156,693 105,861 127,173 383,112 272,888
Weibo VAS 20,184 18,873 19,712 59,940 55,978
------
Subtotal 176,877 124,734 146,885 443,052 328,866
Elimination (2,915) - (836) (3,751) -
------ --- ---- ------ ---
$274,875 $226,294 $243,962 $717,512 $624,479
-------- -------- -------- -------- --------
Cost of revenues
Portal:
Portal Advertising $32,540 $37,240 $36,804 $104,881 $117,261
Other 13,458 8,536 11,502 33,691 29,210
------ ----- ------ ------ ------
Subtotal 45,998 45,776 48,306 138,572 146,471
Weibo 44,494 37,241 40,657 121,777 99,855
Elimination (165) - (46) (211) -
---- --- --- ---- ---
$90,327 $83,017 $88,917 $260,138 $246,326
------- ------- ------- -------- --------
Gross margin
Portal 54% 55% 51% 50% 50%
Weibo 75% 70% 72% 73% 70%
67% 63% 64% 64% 61%
SINA CORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollars in thousands, except per share data)
Three months ended
------------------
September 30, 2016 September 30, 2015 June 30, 2016
------------------ ------------------ -------------
Non-GAAP Non-GAAP Non-GAAP
Actual Adjustments Results Actual Adjustments Results Actual Adjustments Results
------ ----------- ------- ------ ----------- ------- ------ ----------- -------
Advertising revenues $233,633 $233,633 $193,459 $193,459 $205,031 $205,031
Non-advertising revenues 41,242 (2,609) (a) 38,633 32,835 (2,609) (a) 30,226 38,931 (2,609) (a) 36,322
------ ------ ------ ------ ------ ------ ------ ------ ------
Net revenues $274,875 $(2,609) $272,266 $226,294 $(2,609) $223,685 $243,962 $(2,609) $241,353
======== ======= ======== ======== ======= ======== ======== ======= ========
(2,609) (a) (2,609) (a) (2,609) (a)
2,380 (b) 1,569 (b) 1,775 (b)
----- ----- -----
Gross profit $184,548 $(229) $184,319 $143,277 $(1,040) $142,237 $155,045 $(834) $154,211
======== ===== ======== ======== ======= ======== ======== ===== ========
(19,905) (b) (13,822) (b) (14,060) (b)
(457) (c) (883) (c) (461) (c)
---- ---- ----
Operating expenses $148,216 $(20,362) $127,854 $128,589 $(14,705) $113,884 $134,225 $(14,521) $119,704
======== ======== ======== ======== ======== ======== ======== ======== ========
(2,609) (a) (2,609) (a) (2,609) (a)
22,285 (b) 15,391 (b) 15,835 (b)
457 (c) 883 (c) 461 (c)
--- ---
Income from operations $36,332 $20,133 $56,465 $14,688 $13,665 $28,353 $20,820 $13,687 $34,507
======= ======= ======= ======= ======= ======= ======= ======= =======
(2,609) (a)
22,285 (b) (2,609) (a) (2,609) (a)
457 (c) 15,391 (b) 15,835 (b)
2,032 (d) 883 (c) 461 (c)
(133,505) (e) 2,882 (d) 2,427 (d)
2,653 (f) 1,066 (e) (34,925) (e)
(10,650) (g) (3,850) (g) (5,646) (g)
1,398 (h) 1,094 (h) 1,085 (h)
15,133 (i) (206) (i) (102) (i)
Net income attributable to SINA $146,518 $(102,806) $43,712 $9,766 $14,651 $24,417 $43,327 $(23,474) $19,853
======== ========= ======= ====== ======= ======= ======= ======== =======
Diluted net income per share attributable to SINA * $1.90 $0.56 $0.16 $0.39 $0.59 $0.27
===== ===== ===== ===== ===== =====
Shares used in computing diluted
net income per share attributable to SINA 78,303 - 78,303 58,799 6,467 (j) 65,266 77,202 - 77,202
Gross margin - advertising 70% 1% 71% 64% 1% 65% 64% 1% 65%
=== === === === === === === === ===
Gross margin - non-advertising 54% -4% 50% 60% -4% 56% 59% -3% 56%
=== === === === === === === === ===
Nine months ended
-----------------
September 30, 2016 September 30, 2015
------------------ ------------------
Non-GAAP Non-GAAP
Actual Adjustments Results Actual Adjustments Results
------ ----------- ------- ------ ----------- -------
Advertising revenues $601,631 $601,631 $520,070 $520,070
Non-advertising revenues 115,881 (7,827) (a) 108,054 104,409 (7,827) (a) 96,582
------- ------ ------- ------- ------ ------
Net revenues $717,512 $(7,827) $709,685 $624,479 $(7,827) $616,652
======== ======= ======== ======== ======= ========
(7,827) (a) (7,827) (a)
5,721 (b) 4,131 (b)
----- -----
Gross profit $457,374 $(2,106) $455,268 $378,153 $(3,696) $374,457
======== ======= ======== ======== ======= ========
(48,641) (b) (39,160) (b)
(1,475) (c) (2,691) (c)
------ ------
Operating expenses $408,771 $(50,116) $358,655 $395,518 $(41,851) $353,667
======== ======== ======== ======== ======== ========
(7,827) (a) (7,827) (a)
54,362 (b) 43,291 (b)
1,475 (c) 2,691 (c)
Income (Loss) from operations $48,603 $48,010 $96,613 $(17,365) $38,155 $20,790
======= ======= ======= ======== ======= =======
(7,827) (a)
54,362 (b) (7,827) (a)
1,475 (c) 43,291 (b)
3,978 (d) 2,691 (c)
(196,657) (e) 6,051 (d)
2,653 (f) (16,881) (e)
(20,815) (g) (9,730) (g)
3,567 (h) 3,304 (h)
14,908 (i) (623) (i)
Net income attributable to SINA $205,165 $(144,356) $60,809 $11,125 $20,276 $31,401
======== ========= ======= ======= ======= =======
Diluted net income per share attributable to SINA * $2.74 $0.82 $0.18 $0.50
===== ===== ===== =====
Shares used in computing diluted
net income per share attributable to SINA 77,486 - 77,486 58,854 - 58,854
Gross margin - advertising 65% 1% 66% 61% 1% 62%
=== === === === === ===
Gross margin - non-advertising 59% -3% 56% 58% -3% 55%
=== === === === === ===
(a) To adjust the recognition of deferred revenue related to the license agreements granted to E-House.
(b) To adjust stock-based compensation.
(c) To adjust amortization of intangible assets.
(d) To adjust the Non-GAAP to GAAP reconciling items on the share of equity method investments, net of share of amortization of intangibles not on their books.
(e) To adjust (gain) loss on sale of investments/business, (gain) loss on deemed disposal and impairment on investments, net.
(f) To adjust the change in fair value of option liability.
(g) To adjust Non-GAAP to GAAP reconciling items for the income attributable to non-controlling interests.
(h) To adjust the amortization of convertible debt issuance cost.
(i) To adjust the provision for income tax related to item (c) and (e). Other non-GAAP to GAAP reconciling items have no income tax effect.**
(j) To adjust the number of shares for dilution resulted from convertible debt and unvested equity granted.
* Net income (loss) attributable to SINA is adjusted for diluted shares issued by our subsidiary and equity method investments.
** Most of the reconciliation items were recorded in entities in tax free jurisdictions hence no income tax implications. For impairment on investments, full
valuation allowances were made due to as the Company does not expect they can be realized in the foreseeable future.
UNAUDITED RECONCILIATION OF SINA'S SHARE OF EQUITY INVESTMENTS' NON-GAAP TO GAAP RESULTS*
Three months ended
------------------
September 30, 2016 September 30, 2015 June 30, 2016
------------------ ------------------ -------------
Actual Adjustments Non-GAAP Results Actual Adjustments Non-GAAP Results Actual Adjustments Non-GAAP Results
------ ----------- ---------------- ------ ----------- ---------------- ------ ----------- ----------------
To adjust stock-based compensation $1,409 $1,620 $1,356
To adjust amortization of intangible
assets resulting from business acquisitions 618 598 587
To adjust gain on sale of investments (12) - (739)
To adjust the loss resulting from the
fair value changes in investments 41 551 1,236
To adjust tax impacts related
to amortization of intangible assets (179) (182) (180)
Earning (Loss) from equity method investments, net $5,689 $1,877 $7,566 $388 $2,587 $2,975 $(6,023) $2,260 $(3,763)
Share of amortization of equity investments'
intangibles not on their books $(173) $173 $ - $(394) $394 $ - $(223) $223 $ -
Share of tax impacts related to amortization of
equity investments' intangibles not on their books 18 (18) - 99 (99) - 56 (56) -
$5,534 $2,032 $7,566 $93 $2,882 $2,975 $(6,190) $2,427 $(3,763)
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Nine months ended
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September 30, 2016 September 30, 2015
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Non-GAAP Non-GAAP
Actual Adjustments Results Actual Adjustments Results
------ ----------- ------- ------ ----------- -------
To adjust stock-based compensation $4,320 $4,396
To adjust amortization of intangible
assets resulting from business acquisitions 1,996 1,735
To adjust gain on sale of investments (1,559) -
To adjust the gain resulting from the fair
value changes in investments (849) (673)
To adjust tax impacts related
to amortization of intangible assets (546) (296)
Earning (Loss) from equity method investments, net $(10,604) $3,362 $(7,242) $1,905 $5,162 $7,067
Share of amortization of equity investments'
intangibles not on their books $(788) $788 $ - $(1,186) $1,186 $ -
Share of tax impacts related to amortization of
equity investments' intangibles not on their books 172 (172) - 297 (297) -
$(11,220) $3,978 $(7,242) $1,016 $6,051 $7,067
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* Earning (Loss) from equity method investments is recorded one quarter in arrears.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sina-reports-third-quarter-2016-financial-results-300366756.html
SOURCE SINA Corporation
