SOUFUN HOLDINGS LTD BEIJING, June 2, 2016 /PRNewswire/ -- SouFun Holdings Limited (NYSE: SFUN) ("we," "our," or "Fang"), the leading real estate Internet portal in China, announced today its unaudited financial results for the three months ended March 31, 2016.
First Quarter 2016 Highlights
-- Total Revenue increased by 62.3% year-on-year to $204.6 million. Revenue
from e-commerce services increased by 154.0% year-on-year to $130.9
million.
-- Operating loss was $110.2 million. Non-GAAP operating loss was $108.1
million. A description of the adjustments from GAAP to non-GAAP
operating income is set forth below.
-- Net loss attributable to Fang's shareholders was $113.7 million.
-- Non-GAAP net loss attributable to Fang's shareholders was $111.6
million, a $0.23 loss per fully-diluted earnings ADS.
-- GMV increased by 664% from $1.7 billion in the first quarter of 2015 to
$12.7 billion in the first quarter. The following table shows GMV by
quarter for the 3 months of 2016.
GMV: Q1 2016 (in millions of US dollars)
2016Q1 & 2015Q1
Variance
2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 Amount %
New Home * 1,281 3,441 4,580 5,644 3,406 2,125 166%
Secondary Home 384 3,321 5,951 7,860 9,311 8,927 2,325%
Total 1,665 6,762 10,531 13,504 12,717 11,052 664%
===== ===== ====== ====== ====== ====== ===
* Only including direct sales services.
"62.3% revenue growth was our highest quarterly growth rate in the past five years which leads to the increase of our annual revenue guidance". Said Vincent Mo, Chairman and CEO of Fang.com. " Our E-commerce businesses, directly targeting at consumers, are contributing close to 70% of our total revenue. This is a clear sign that our transformation to serve individual end users is right on track and we expect to see a complete turnaround in quarter four of this year."
First Quarter 2016 Results
Revenues
Fang reported total revenues of $204.6 million for the three months ended March 31, 2016, representing an increase of 62.3% from $126.0 million for the corresponding period in 2015, primarily driven by the growth in e-commerce services.
Revenue from marketing services was $30.4 million for the three months ended March 31, 2016, a decrease of 25.1% from $40.6 million for the corresponding period in 2015, primarily due to the offset by our e-commerce services.
Revenue from listing services was $24.1 million for the three months ended March 31, 2016, which is higher than the $23.6 million for the corresponding period in 2015.
Revenue from Internet financial services was $10.6 million for the three months ended March 31, 2016, an increase of 200.1% from $3.5 million for the corresponding period in 2015 primary due to rapid growth in our financial services to the real estate brokerage services.
Revenue from value-added services and other services was $8.5 million for the three months ended March 31, 2016, an increase of 27.8% from $6.7 million for the corresponding period in 2015, primarily due to the growth of our data and research related products.
Cost of Revenue
Cost of revenue was $209.6 million for the three months ended March 31, 2016, an increase of 357.6% from $45.8 million for the corresponding period in 2015. The increase in cost of revenue was mainly attributable to increased staff cost.
Operating Expenses
Operating expenses were $105.0 million for the three months ended March 31, 2016, an increase of 44.3 % from $72.8 million for the corresponding period in 2015.
Selling expenses were $61.6 million for the three months ended March 31, 2016, an increase of 27.3% from $48.4 million for the corresponding period in 2015, primarily due to the increased advertising and promotional expenses.
General and administrative expenses were $43.3 million for the three months ended March 31, 2016, an increase of 77.9% from $24.4 million for the corresponding period in 2015, primarily due to increased staff cost.
Operating Income/Loss
Operating loss was $110.2 million for the three months ended March 31, 2016, compared to operating income of $7.5 million for the corresponding period in 2015.
Income Tax Benefit/Expenses
Income tax expense was $5.2 million for the three months ended March 31, 2016, compared to income tax expenses of $5.6 million for the corresponding period in 2015.
Net Income/Loss and EPS
Net loss attributable to Fang's shareholders was $113.7 million for the three months ended March 31, 2016, compared to net income $6.1 million for the corresponding period in 2015. Loss per fully-diluted ordinary share and ADS are $1.87 and $0.37, respectively, for the three months ended March 31, 2016, compared to earnings $0.05 and $0.01 for the corresponding period in 2015.
Adjusted EBITDA
Adjusted EBITDA, defined as non-GAAP net income before income taxes, interest expenses, interest income, depreciation and amortization, was $100.4 million loss for the three months ended March 31, 2016, compared to income of $11.3 million for the corresponding period in 2015.
Cash
As of March 31, 2016, Fang had cash, cash equivalents, and short-term investments of $708.4 million, compared to $880.5 million as of December 31, 2015. Net cash used in operating activities was $67.2 million for the three months ended March 31, 2016, compared to Cash flow used in operating activities was $54.7 million for the same period in 2015.
Business Outlook
Fang adjusts its total revenue guidance for 2016 from $1,060.2 million, representing a year over increase of 20%, to around $1,148.6 million, representing a year-on-year increase of 30.0%. This forecast reflects Fang's current and preliminary view, which is subject to change.
Conference Call Information
Fang's management team will host a conference call today at 8:00 AM U.S. EDT (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:
International Toll: +65 6713-5090
Local Toll:
United States +1 845-675-0437 /
+1 866-519-4004
Hong Kong +852 3018-6771 /
+852 800-906-601
Mainland China +86 400-620-8038 /
+86 800-819-0121
Passcode: SFUN
A telephone replay of the call will be available after the conclusion of the conference call from 23:00 HKT on June 2 through 23:59 HKT June 10, 2016. The dial-in details for the telephone replay are:
International Toll: +61 2-8199-0299
Toll-Free:
United States +1 855-452-5696 /+1
646-254-3697
Hong Kong +852 800-963-117 /+852
3051-2780
Mainland China +86 400-602-2065 /+86
800-870-0205
Conference ID: 23123724
A live and archived webcast of the conference call will be available on SouFun's website at http://ir.fang.com.
About Fang
Fang operates the leading real estate Internet portal in China in terms of the number of page views and visitors to its websites. Through our websites, we provide marketing, e-commerce, listing and other value-added services for China's fast-growing real estate and home furnishing and improvement sectors. Our user-friendly websites support active online communities and networks of users seeking information on, and other value-added services for, the real estate and home furnishing and improvement sectors inChina. Fang currently maintains about 100 offices to focus on local market needs and its website and database contains real estate related content covering more than 320 cities in China. For more information about Fang, please visit http://ir.fang.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as "will," "expects," "is expected to," "anticipates," "aim," "future," "intends," "plans," "believes," "are likely to," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the proposed transactions contemplated by the Restructuring and the Concurrent Share Placement. Statements that are not historical facts, including statements about Fang's beliefs and expectations, are forward-looking statements. 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, without limitation, whether the transactions contemplated by the Restructuring will receive the requisite approvals, whether the Restructuring will be carried out as planned, the impact of the Restructuring on the Fang Assets, the impact of Fang's transformation from a pure Internet information platform to a transaction-oriented platform, the impact of Fang's implementation of a "zero tolerance policy" that has resulted in dismissal of employees, the impact of the slowdown in China's real estate market on Fang and the impact on revenues of our existing and new service fees reductions, the ability of Fang to retain real estate listing agencies as customers during challenging economic periods, the success of Fang's new business initiatives, the ability of Fang to manage its operating expenses, the impact of, measures taken or to be taken by the Chinese government to control real estate growth and prices and other events which could occur in the future, economic challenges in China's real estate market, the impact of competitive market conditions for our services, our ability to maintain and increase our leadership in China's home related internet sector, the uncertain regulatory landscape in China, fluctuations in our quarterly operating results, our continued ability to execute business strategies including our Fang membership services and Fang Online Shop, our ability to continue to expand in local markets, our reliance on online advertising sales and listing services and transactions for our revenues, any failure to successfully develop and expand our content, service offerings and features, including the success of new features to meet evolving market needs, and the technologies that support them, the quality of the loans we originate and resell and the performance of those loans in the future, our ability to successfully service and process customer loans for our own benefit and for the purchasers of those loans and, should we in the future make acquisitions, any failure to successfully integrate acquired businesses.
For investor and media inquiries, please contact:
Mr. Kent Cangsang Huang
CFO
Phone: +86-10-5631-9668
Email: huangcangsang@fang.com
SouFun Holdings Limited
Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars, except share data and per share data)
ASSETS March 31, December 31,
2016 2015
Current assets: (Unaudited) (Audited)
Cash and cash equivalents 564,652 817,921
Restricted cash, current 103,696 103,179
Short-term investments 143,784 62,559
Accounts receivable, net 132,230 147,516
Funds receivable 47,902 45,400
Prepayment and other current assets 51,615 60,265
Commitment deposits 9,905 10,646
Loan receivable, current 221,410 266,990
Amount due from related parties 566 262
--- ---
Total current assets 1,275,760 1,514,738
Non-current assets:
Property and equipment, net 336,005 326,504
Prepaid land lease payments - 774
Loan receivable, non-current 97,493 55,349
Deferred tax assets, non-current 31,040 5,490
Deposit for non-current assets 136,648 137,715
Long-term investments 235,528 244,678
Other non-current assets 8,557 10,078
----- ------
Total non-current assets 845,271 780,588
------- -------
Total assets 2,121,031 2,295,326
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term loans - 100,000
Deferred revenue 152,774 145,321
Accrued expenses and other liabilities 353,468 361,593
Customers' refundable fees 80,261 59,107
Income tax payable 195,490 9,948
Convertible senior notes-current 397,712 400,000
Total current liabilities 1,179,705 1,075,969
Non-current liabilities:
Convertible senior notes 288,228 287,887
Deferred tax liabilities, non-current 77,326 76,631
Other non-current liabilities 298 312
--- ---
Total non-current liabilities 365,852 364,830
------- -------
Total Liabilities 1,545,557 1,440,799
========= =========
Equity:
Class A ordinary shares, par value Hong Kong Dollar ("HK$") 1 per share, 600,000,000 shares authorized for Class A
and Class B in aggregate, and 70,739,054 shares and 58,477,084 shares issued and outstanding as at March 31, 2015
and March 31, 2014, respectively 9,130 9,110
Class B ordinary shares, par value HK$1 per share, 600,000,000 shares authorized for Class A and Class B in
aggregate, and 24,336,650 shares and 24,336,650 shares issued and outstanding as at March 31, 2015 and March 31,
2014, respectively 3,124 3,124
Additional paid-in capital 481,154 478,391
Accumulated other comprehensive income (17,872) (10,364)
Retained earnings 99,178 373,505
------ -------
Total SouFun Holdings Limited shareholders' equity 574,714 853,766
Noncontrolling interests 760 761
--- ---
Total equity 575,474 854,527
TOTAL LIABILITIES AND EQUITY 2,121,031 2,295,326
========= =========
SouFun Holdings Limited
Condensed Consolidated Statements of Comprehensive Income
( in thousands of U.S. dollars, except share data and per share data)
Three months ended
March 31, March 31,
2016 2015
(Unaudited) (Unaudited)
Revenues:
E-commerce services 130,904 51,542
Marketing services 30,432 40,623
Listing services 24,086 23,643
Financial services 10,625 3,540
Value-added services and other services 8,576 6,708
Total revenues 204,623 126,056
Cost of Revenues:
Cost of services (209,806) (45,809)
Total Cost of Revenues (209,806) (45,809)
Gross Loss/Profit (5,183) 80,247
Operating expenses:
Selling expenses (61,597) (48,387)
General and administrative expenses (43,377) (24,384)
Operating Income (110,157) 7,476
Foreign exchange loss (35) (14)
Interest income 3,513 8,044
Interest expense (4,610) (4,101)
Government grants 2,600 302
Income before income taxes and noncontrolling interests (108,689) 11,707
Income tax expenses
Income tax expenses (5,160) (5,622)
Net income (113,849) 6,085
Net income attributable to noncontrolling interests (22) (22)
Net income attributable to SouFun Holdings Limited
shareholders (113,851) 6,107
Other comprehensive income, net of tax
Foreign currency Translation (44,176) (4,619)
Realized gain on available-for-sale security - -
Unrealized gain on available-for-sale security (18,666) 2,613
Total other comprehensive income, net of tax (62,842) (2,006)
Comprehensive (Loss)/income (176,691) 4,079
Comprehensive loss attributable to noncontrolling interests (2) (22)
Comprehensive income attributable to SouFun Holdings Limited's shareholders (176,689) 4,101
Earnings per share for Class A and Class B ordinary shares
Basic (0.44) 0.05
Diluted (0.44) 0.05
Earnings per ADS
Basic (0.09) 0.01
Diluted (0.09) 0.01
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic 95,075,704 82,731,556
Diluted 95,075,704 89,924,291
Weighted average number of ADSs outstanding:
Basic 475,378,522 413,657,780
Diluted 475,378,522 449,621,455
SouFun Holdings Limited
Reconciliation of GAAP and Non-GAAP Results
(in thousands of U.S. dollars, except share data and per share data)
Three months ended
March 31, March 31,
2,016 2,015
GAAP income from operations (110,157) 7,476
Share-based compensation expense 2,075 434
Non-GAAP income from operations (108,082) 7,910
GAAP net income (113,849) 6,085
One-off tax benefit - 1,005
Share-based compensation expense 2,075 434
Non-GAAP net income (111,774) 7,524
Net Income attributable to SouFun
shareholders (113,851) 6,107
One-off tax benefit - 1,005
Share-based compensation expense 2,075 434
Non-GAAP net Income attributable to
SouFun Holdings Limited shareholders (111,776) 7,546
GAAP earnings per share for Class A
and Class B ordinary shares:
Basic (1.22) 0.07
Diluted (1.22) 0.94
GAAP earnings per ADS:
Basic (0.24) 0.01
Diluted (0.24) 0.19
Non-GAAP earnings per share for
Class A and Class B ordinary shares:
Basic (1.20) 0.09
Diluted (1.20) 0.08
Non-GAAP earnings per ADS:
Basic (0.24) 0.02
Diluted (0.24) 0.02
Weighted average number of Class A
and Class B ordinary shares
outstanding:
Basic 95,075,704 82,731,556
Diluted 95,075,704 89,924,291
Weighted average number of ADSs outstanding:
Basic 475,378,522 413,657,780
Diluted 475,378,522 449,621,455
Non-GAAP Net income (111,774) 7,524
Add back:
Interest expense 4,610 4,101
Income tax expenses 5,160 4,617
Depreciation expenses 5,045 3,073
Subtract:
Interest income (3,513) (8,044)
Adjusted EBITDA (108,262) 11,271
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SOURCE SouFun Holdings Limited
