GUANGZHOU, China, May 13, 2013 /PRNewswire/ -- 7 Days Group
Holdings Limited ("7 Days Group" or the "Company") (NYSE: SVN), a
leading and fast growing national economy hotel chain based in
China, today announced its
unaudited financial results for the first quarter 2013.
First Quarter 2013 Financial
Highlights
- Total net revenues for the first quarter 2013 increased by
17.5% year-over-year to RMB640.5
million (US$103.1 million)
[2].
- Income from operations for the first quarter 2013 was
RMB13.7 million (US$2.2 million), compared to RMB23.3 million in the first quarter 2012.
Non-GAAP income from operations for the quarter was RMB20.4 million (US$3.3
million), compared to RMB32.2
million for the same period in 2012.
- EBITDA for the first quarter was RMB106.2 million (US$17.1
million), an increase of 0.4% year-over-year from
RMB105.8 million for the same period
in 2012. Adjusted EBITDA for the quarter was RMB112.9 million (US$18.2
million), a decrease of 1.5% year-over-year. EBITDA margin
was 16.6% compared to 19.4% in the same period in 2012. Adjusted
EBITDA margin was 17.6%, compared to 21.0% in the prior year
period.
- Net income attributable to the Company's ordinary shareholders
for the quarter was RMB5.4 million
(US$0.9 million), compared to
RMB19.0 million for the same period
in 2012. Non-GAAP net income attributable to the Company's ordinary
shareholders for the quarter was RMB12.1
million (US$2.0 million),
representing a year-over-year decrease of 56.4%.
- Basic and diluted earnings per ADS[3] were RMB0.11 (US$0.02)
and RMB0.11 (US$0.02) respectively. Non-GAAP basic and
diluted earnings per ADS were RMB0.25
(US$0.04) and RMB0.25 (US$0.04),
respectively.
- Net operating cash inflow was RMB76.6
million (US$12.3 million),
compared to RMB93.8 million in the
same period in 2012.
|
|
[1]
|
Definition
of Total transaction value: total room revenue from
leased-and-operated hotels and managed hotels. The metric is
highlighted as an indicator of the scale and reach of 7 Days'
brands.
|
[2]
|
The
Company's reporting currency is Renminbi ("RMB"). The translation
of amounts from RMB to United States Dollars is solely for the
convenience of the reader. RMB amounts included in this press
release have been translated into U.S. dollars at the exchange rate
of March 31, 2013 as set forth in the H.10 statistical release of
the Federal Reserve Board, which was US$1.00 = RMB6.2108. No
representation is made that RMB amounts could have been, or could
be, converted into U.S. Dollars at that rate or at any other rate
on March 31, 2013.
|
[3]
|
Each ADS
represents 3 of the Company's ordinary shares.
|
First Quarter 2013 Operational
Highlights
- Added 82 net hotels, comprising 8 net leased-and-operated
hotels and 74 net managed hotels in the first quarter 2013.
- As of March 31, 2013, 7 Days
Group had 1,427 hotels in operation, consisting of 500
leased-and-operated hotels and 927 managed hotels, representing a
total of 141,091 rooms covering 223 cities.
- As of March 31, 2013, there were
a total of 223 hotels in the pipeline, including 14
leased-and-operated hotels under conversion and 209 managed hotels
contracted but not yet opened.
- For the first quarter 2013, occupancy rates for
leased-and-operated hotels, managed hotels and all hotels were
75.0%, 75.5% and 75.3%, respectively, compared to 79.5%, 76.3% and
77.7%, respectively, in the first quarter 2012. The year-over-year
decrease in occupancy rates was primarily a result of the impact
from the macro economic situation.
- RevPAR[4] for leased-and-operated hotels in the first quarter
2013 was RMB124.1, compared to
RMB128.8 in the same period in 2012.
RevPAR for managed hotels for the period was RMB117.1, compared to RMB116.0 for the same period in 2012.
- As of March 31, 2013, the number
of 7 Days Club members was approximately 56.3 million, a 46%
increase from 38.6 million as of March 31,
2012.
[4]
|
RevPAR
represents revenue per available room
|
Recent Business Developments:
Mr. Yuezhou Lin, 7 Days Group's
Chief Executive Officer and Director, commented, "We are pleased to
report a strong first quarter with financial results exceeding our
guidance, setting a solid start for year 2013. Our outlook for the
remainder of 2013 is favorable, as we have built a healthy pipeline
and expect to benefit from the increasing economies of scale. We
expect to maintain our fast expansion pace, therefore to solidify
our market leader position in the economy hotel industry."
First Quarter 2013 Unaudited Financial
Results
Gross revenues. Gross revenues for the first
quarter 2013 were RMB678.1 million
(US$109.2 million), representing a
year-over-year increase of 17.4% from RMB577.6 million in the first quarter 2012.
Gross revenues from leased-and-operated hotels.
Gross revenues from leased-and-operated hotels for the first
quarter 2013 amounted to RMB596.9
million (US$96.1 million),
representing a 14.9% increase from RMB519.5
million in the first quarter 2012.
Gross revenues from managed hotels. Gross revenues
from managed hotels for the first quarter 2013 increased by 39.5%
to RMB81.2 million (US$13.1 million) from RMB58.2 million in the same period in 2012.
During the first quarter 2013, the Company opened 74 net managed
hotels.
Total net revenues. Total net revenues for the
first quarter 2013 totaled RMB640.5
million (US$103.1 million),
representing a year-over-year increase of 17.5% from RMB545.0 million in first quarter 2012, primarily
resulting from the continued growth in the number of hotels in
operation.
Hotel operating costs. Hotel operating costs for
the first quarter 2013 were RMB556.9
million (US$89.7 million), or
86.9% of total net revenues, compared with 85.6% of total net
revenues in the first quarter 2012 and 80.5% of total net revenues
in the fourth quarter 2012.
Sales and marketing expenses. Sales and marketing
expenses for the first quarter 2013 were RMB16.1 million (US$2.6
million), or 2.5% of total net revenues, compared with 2.3%
of total net revenues in the same period of 2012 and 4.6% in the
fourth quarter 2012.
General and administrative expenses. General and
administrative expenses for the first quarter 2013 were
RMB53.8 million (US$8.7 million), or 8.4% of total net revenues,
compared to RMB42.8 million, or 7.9%
of total net revenues in the same period of 2012, and RMB52.6 million, or 7.6% of total net revenues in
the fourth quarter 2012. The increase in general and administrative
expenses was primarily due to the expenses associated with the
going-private transaction involving the Company. The going-private
related expenses incurred during the quarter were RMB11.7 million , about 1.83% of total net
revenues.
Accordingly, total operating costs and expenses amounted to
RMB626.8 million (US$100.9 million), representing 97.9% of total
net revenues, compared to 95.7% of total net revenues in the same
period of 2012 and 92.7% in the fourth quarter 2012.
Income from operations. Income from operations for
the first quarter 2013 was RMB13.7
million (US$2.2 million),
compared to RMB23.3 million in the
first quarter 2012 and RMB51.1
million in the fourth quarter 2012. Non-GAAP income from
operations was RMB20.4 million
(US$3.3 million), compared to
RMB32.2 million for the same period
of 2012 and RMB56.3 million in the
fourth quarter 2012.
EBITDA. EBITDA for the first quarter was
RMB106.2 million (US$17.1 million), an increase of 0.4%
year-over-year from RMB105.8 million
for the same period in 2012. Adjusted EBITDA for the quarter was
RMB112.9 million (US$18.2 million), representing a decrease of 1.5%
year-over-year from RMB114.6 million
for the same period in 2012. EBITDA margin was 16.6% compared to
19.4% in the same period in 2012. Adjusted EBITDA margin was 17.6%
compared to 21.0% in the prior year period.
Interest expense. Interest expense for the first
quarter 2013 was RMB4.6 million,
(US$0.7 million) compared to
RMB6.4 million for the same period of
2012 and RMB2.9 million in the fourth
quarter 2012.
Income tax expense. Income tax expense for the
first quarter 2013 was RMB7.0 million
(US$1.1 million), compared to
RMB7.3 million in the same period of
2012 and RMB13.8 million in the
fourth quarter 2012.
Net income attributable to 7 Days Group
Holdings Limited ordinary
shareholders. Net income attributable to 7 Days Group
Holdings Limited ordinary shareholders was RMB5.4 million (US$0.9
million) in the first quarter 2013, compared to RMB19.0 million in the first quarter 2012 and
RMB37.9 million in the fourth quarter
2012.
Non-GAAP net income. Non-GAAP net income was
RMB12.1 million (US$2.0 million), compared to Non-GAAP net income
of RMB27.8 million for the first
quarter 2012 and Non-GAAP net income of RMB43.1 million in the fourth quarter 2012.
Basic and diluted earnings per
ADS. Basic and diluted earnings per ADS were RMB0.11 (US$0.02)
and RMB0.11 (US$0.02), respectively, for the first quarter
2013, compared to basic and diluted earnings per ADS of
RMB0.38 in the first quarter 2012 and
basic and diluted earnings per ADS of RMB0.77 in the fourth quarter 2012. Non-GAAP
basic and diluted earnings per ADS were RMB0.25 (US$0.04)
and RMB0.25 (US$0.04), respectively, for the first quarter
2013, compared to non-GAAP basic and diluted earnings per ADS of
RMB0.56 and RMB0.55, respectively, in the same period of 2012
and basic and diluted earnings per ADS of RMB0.88 and RMB0.88, respectively, in the fourth
quarter2012.
Cash and pledged bank deposits. As of March 31, 2013, the Company had cash and pledged
bank deposits of RMB379.2 million
(US$61.1 million), representing a
quarter-over-quarter decrease of 0.8% from RMB382.3 million as of December 31, 2012 and a year-over-year decrease
of 19.2% from RMB469.6 million as of
March 31, 2012, respectively.
Operating cash flow. Net operating cash inflow for
the first quarter 2013 was RMB76.6
million (US$12.3 million),
representing a decrease of 18.3% from RMB93.8 million in the first quarter 2012.
Guidance
The Company expects to generate total net revenues in the range
of RMB735 million to RMB745 million
in the second quarter 2013. These forecasts reflect the Company's
current and preliminary view, which is subject to change.
Change in Directorship
Mr. Jeffrey Perlman, a member of
the Company's board of directors, resigned as a Company director
late last week. "On behalf of the Company and its board of
directors, we would like to thank Mr. Perlman for his valuable
contributions and service during the last two years," said Mr.
Boquan He, Co-Chairman of the Company. "We wish Jeff every success
in the future."
Conference Call
7 Days Group Holdings Limited senior management will host a
conference call at 10:00 pm (Eastern)
/ 7:00 pm (Pacific) Monday, May 13, 2013, which is 10:00 am (Beijing) on Tuesday,
May 14, 2013 to discuss its first quarter 2013 financial
results and recent business activity. The conference call may be
accessed by calling the following numbers:
China:
|
800 8190
121
|
Hong
Kong:
|
852 2475
0994
|
US Toll
Free:
|
1 866 519
4004
|
US New
York:
|
1 718 354
1231
|
International:
|
65 6723
9381
|
Passcode:
|
7
Days
|
A live webcast of the conference call and replay will be
available on the investor relations page of 7 Days Group's website
at http://en.7daysinn.cn/.
A telephone replay will be available shortly after the
call. The dial-in details are as follows:
US:
|
1 855 452
5696
|
International:
|
61 2 8199
0299
|
Conference
ID number:
|
57969157
|
About 7 Days Group Holdings Limited
7 Days Group is a leading and fast growing national economy hotel
chain based in China. It converts
and operates limited service economy hotels across major
metropolitan areas in China under
its award-winning "7 Days Inn" brand. The Company strives to offer
consistent and high-quality accommodations and services primarily
to the growing population of value conscious business and leisure
travelers who demand affordable, clean, comfortable, convenient and
safe lodging, and to respond to its guests' needs.
Use of Non-GAAP Financial Measures
To supplement 7 Days Group's unaudited financial results
presented in accordance with U.S. GAAP, the Company has used the
following non-GAAP measures defined as non-GAAP financial measures
by the Securities and Exchange Commission (the "SEC") to report its
financial results:
- Non-GAAP income from operations represents income from
operations reported in accordance with GAAP, excluding share-based
compensation expense.
- Non-GAAP net income represents net income reported in
accordance with GAAP, excluding share-based compensation
expense.
- Non-GAAP earnings per ADS represents non-GAAP net income
divided by the number of ADS used in computing basic and diluted
earnings per ADS.
- EBITDA represents net income reported in accordance with GAAP,
adjusted for the effects of interest income and expense, provision
for income taxes, depreciation and amortization.
- Adjusted EBITDA represents EBITDA, excluding share-based
compensation expense.
The Company believes EBITDA is a useful financial metric to
assess its operating and financial performance before the impact of
investing and financing transactions, if any, and income taxes. In
addition, 7 Days Group believes that EBITDA is widely used by other
companies in the lodging industry and may be used by investors as a
measure of its financial performance. Given the significant
investments that 7 Days Group has made in the past in property and
equipment, depreciation and amortization expense comprises a
meaningful portion of its cost structure. 7 Days Group believes
that EBITDA will provide investors with a useful tool for
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures. The
presentation of EBITDA should not be construed as an indication
that the Company's future results will be unaffected by other
charges and gains the Company considers to be outside the ordinary
course of its business. 7 Days Group also calculates Adjusted
EBITDA excluding share-based compensation expense. The Company
prepares its financial statements in accordance with GAAP and,
accordingly, expenses its employee share options. Since share-based
compensation expenses are non-cash expenses, the Company believes
excluding them from its calculation of EBITDA allows it to provide
investors with a more useful tool for assessing its operating and
financial performance.
The use of EBITDA and Adjusted EBITDA has certain limitations.
Depreciation and amortization expense for various long-term assets,
such as property and equipment, income tax expense, interest
expense and interest income have been and will be incurred and are
not reflected in the presentation of EBITDA. Each of these items
should also be considered in the overall evaluation of its results.
Additionally, EBITDA does not consider capital expenditures and
other investing activities and should not be considered as a
measure of the Company's liquidity. The Company compensates for
these limitations by providing the relevant disclosure of its
depreciation and amortization, interest expense and interest
income, income tax expense, capital expenditures, share-based
compensation expense and other relevant items both in its
reconciliations to the GAAP financial measures and in its
consolidated financial statements, all of which should be
considered when evaluating the Company's performance. The terms
EBITDA and Adjusted EBITDA are not defined under GAAP, and EBITDA
and Adjusted EBITDA are not measures of net income, operating
income, operating performance or liquidity presented in accordance
with GAAP. When assessing the Company's operating and financial
performance, investors should not consider this data in isolation
or as a substitute for the Company's net income, operating income
or any other operating performance measure that is calculated in
accordance with GAAP. In addition, the Company's EBITDA and
Adjusted EBITDA may not be comparable to EBITDA or Adjusted EBITDA
or similarly titled measures utilized by other companies since such
other companies may not calculate EBITDA and Adjusted EBITDA in the
same manner as the Company does.
For reasons same to the use of EBITDA and Adjusted EBITDA
described above, the Company has also reported net income, basic
and diluted earnings per ADS and income (loss) from operations on a
non-GAAP basis, excluding share-based compensation expenses in the
relevant period. These non-GAAP operating measures are useful
for understanding and assessing the Company's underlying business
performance and operating trends and the Company expects to report
net income, basic and diluted earnings per ADS and income from
operations on a non-GAAP basis using a consistent method on a
quarterly basis going forward.
7 Days Group believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing 7
Days Group's financial performance and liquidity and when planning
and forecasting future periods. Readers are cautioned not to 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, and should refer to the
reconciliation of GAAP results with non-GAAP results for the
periods set forth in the tables at the end of this
release.
Safe Harbor Statement
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, and as defined in the 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" and similar statements
and including, among other things, 7 Days Group's revenue guidance
for the second quarter 2013 and business forecast for 2013
including the expected number of hotel to be opened (including the
breakdown of expected new leased-and-operated hotels and new
managed hotels), Company's business strategies, its ability to
offer consistent and high-quality accommodations and services at an
affordable price, its ability to leverage economies of scale and
its ability to achieve strict cost controls and to deliver
continued growth. These forward-looking statements are not
historical facts but instead represent only the Company's belief
regarding future events, many of which, by their nature, are
inherently uncertain and outside of the Company's control. The
Company's actual results and financial condition and other
circumstances may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. In particular, the Company's operating results for any
period are impacted significantly by the mix of leased-and-operated
hotels and managed hotels in its chain, causing the Company's
operating results to fluctuate and making them difficult to
predict.
Other factors that could cause forward-looking statements to
differ materially from actual future events or results include
risks and uncertainties related to: uncertainties associated with
factors typically affecting the lodging industry, including changes
in economic conditions, adverse weather conditions, natural
disasters or outbreaks of serious contagious diseases in markets
where the Company has a presence; uncertainties regarding the
Company's ability to respond to competitive pressures;
uncertainties regarding the Company's ability to manage its
expected growth; uncertainties regarding the Company's ability to
continue its growth and achieve profitability; risks associated
with the Company's limited operating history and historical
operating losses; uncertainties regarding the Company's ability to
fund its working capital needs; uncertainties regarding its ability
to successfully and timely identify, secure or operate additional
hotel properties. The financial information contained in this
release should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's
2012 Annual Report on Form 20-F filed with the SEC on April 10, 2013, which is available on the SEC's
website at www.sec.gov. For a discussion of other important factors
that could adversely affect the Company's business, financial
condition, results of operations and prospects, see "Risk Factors"
beginning on page 17 of the Company's 2012 Annual Report on Form
20-F. The Company's results of operations for the first quarter
2013 are not necessarily indicative of its operating results for
any future periods. Any projections in this release are based on
limited information currently available to the Company, which is
subject to change. Although such projections and the factors
influencing them will likely be changed, the Company will not
necessarily update the information. Such information speaks only as
of the date of this release.
Statement Regarding Unaudited Financial
Information
The financial information set forth above is unaudited and
subject to adjustments. Adjustments to the financial statements may
be identified when the annual financial statements are prepared and
audit work is performed for the year end audit, which could result
in significant differences from this unaudited financial
information.
Contacts:
Investor Contact:
Vivian Chen, Investor Relations
Director
7 Days Group Holdings Limited
+86-20-8922-5858
IR@7daysinn.cn
Investor Relations (US):
Mahmoud Siddig, Managing
Director
Taylor Rafferty
Tel: +1 (212) 889-4350
7DaysInn@taylor-rafferty.com
Investor Relations (HK):
Candy Cheung, Senior Consultant
Taylor Rafferty
+852 3196 3712
7DaysInn@taylor-rafferty.com
-- FINANCIAL AND OPERATIONAL TABLES
FOLLOW --
7 Days
Group Holdings Limited Consolidated balance sheet
information
|
|
|
Quarter
Ended
|
|
31/Mar/12
|
|
31/Dec/12
|
|
31/Mar/13
|
|
RMB'
000
|
|
RMB'
000
|
|
RMB'
000
|
US$'000
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
466,556
|
|
378,809
|
|
375,321
|
60,430
|
Pledged bank deposits
|
3,054
|
|
3,443
|
|
3,897
|
627
|
Short-term investment
|
60,000
|
|
-
|
|
-
|
-
|
Accounts receivable
|
6,758
|
|
17,015
|
|
13,919
|
2,241
|
Prepaid rent
|
158,746
|
|
171,370
|
|
176,589
|
28,433
|
Other prepaid expenses and current assets
|
56,059
|
|
77,608
|
|
77,399
|
12,462
|
Hotel supplies
|
46,826
|
|
56,591
|
|
46,204
|
7,439
|
Amounts due from related parties
|
71
|
|
87
|
|
15
|
2
|
Deferred tax assets
|
19,978
|
|
26,222
|
|
26,406
|
4,252
|
Total current assets
|
818,048
|
|
731,145
|
|
719,750
|
115,886
|
Property and equipment, net
|
1,679,664
|
|
1,970,763
|
|
1,927,978
|
310,423
|
Rental deposits
|
79,091
|
|
90,824
|
|
93,618
|
15,073
|
Land use right
|
23,889
|
|
23,426
|
|
23,272
|
3,747
|
Prepaid rent
|
63,268
|
|
71,088
|
|
68,328
|
11,001
|
Intangible assets, net
|
29,374
|
|
26,221
|
|
25,170
|
4,053
|
Goodwill
|
61,041
|
|
61,041
|
|
61,041
|
9,828
|
Other non-current assets
|
500
|
|
-
|
|
-
|
-
|
Deferred tax assets
|
53,287
|
|
62,513
|
|
63,518
|
10,227
|
Total
assets
|
2,808,162
|
|
3,037,021
|
|
2,982,675
|
480,238
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable
|
208,758
|
|
300,240
|
|
230,034
|
37,038
|
Bills payable
|
10,177
|
|
11,475
|
|
12,990
|
2,092
|
Short-term bank borrowings
|
342,993
|
|
130,015
|
|
187,377
|
30,170
|
Accrued expenses and other payables
|
403,048
|
|
511,800
|
|
471,170
|
75,863
|
Amounts due to related parties
|
1,793
|
|
2,601
|
|
3,204
|
516
|
Income taxes payable
|
19,694
|
|
25,617
|
|
21,858
|
3,519
|
Total current
liabilities
|
986,463
|
|
981,748
|
|
926,633
|
149,198
|
Long-term bank borrowings
|
26,930
|
|
121,381
|
|
97,329
|
15,671
|
Accrued lease payment
|
218,184
|
|
256,472
|
|
263,404
|
42,411
|
Unfavorable lease contract liability
|
7,643
|
|
7,136
|
|
6,967
|
1,122
|
Refundable deposits
|
15,250
|
|
14,850
|
|
15,750
|
2,536
|
Deferred revenue
|
748
|
|
-
|
|
-
|
-
|
Deferred rebate income
|
6,350
|
|
5,727
|
|
6,916
|
1,114
|
Borrowings from related parties
|
1,238
|
|
752
|
|
-
|
-
|
Income taxes payable
|
6,644
|
|
3,317
|
|
3,317
|
534
|
Deferred tax liabilities
|
3,039
|
|
7,527
|
|
6,977
|
1,123
|
Total
liabilities
|
1,272,489
|
|
1,398,910
|
|
1,327,293
|
213,709
|
Equity:
|
|
|
|
|
|
|
Ordinary shares
|
141,097
|
|
141,317
|
|
141,610
|
22,801
|
Treasury stock
|
-
|
|
(67,137)
|
|
(67,137)
|
(10,810)
|
Additional paid-in capital
|
1,632,426
|
|
1,649,880
|
|
1,664,124
|
267,940
|
Accumulated other comprehensive income
|
(475)
|
|
(721)
|
|
(941)
|
(152)
|
Accumulated deficit
|
(219,379)
|
|
(62,303)
|
|
(56,859)
|
(9,158)
|
Total 7
Days Group Holdings Limited share holders' equity
|
1,553,669
|
|
1,661,036
|
|
1,680,797
|
270,621
|
Non-controlling interests
|
(17,996)
|
|
(22,925)
|
|
(25,415)
|
(4,092)
|
Total
equity
|
1,535,673
|
|
1,638,111
|
|
1,655,382
|
266,529
|
Total liabilities and equity
|
2,808,162
|
|
3,037,021
|
|
2,982,675
|
480,238
|
|
|
|
|
|
|
|
7 Days
Group Holdings Limited
Unaudited Consolidated Statements of
Comprehensive Income
|
|
Quarter
Ended
|
|
Mar
31
|
|
Dec
31
|
|
Mar
31
|
|
2012
|
|
2012
|
|
2013
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
Total Revenues
|
577,639
|
|
736,385
|
|
678,110
|
109,182
|
Leased-and-operated hotels
|
519,459
|
|
648,427
|
|
596,929
|
96,111
|
Managed hotels
|
58,180
|
|
87,958
|
|
81,181
|
13,071
|
Less: Business tax and surcharges
|
(32,612)
|
|
(40,355)
|
|
(37,570)
|
(6,049)
|
Net revenues
|
545,027
|
|
696,030
|
|
640,540
|
103,133
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
Hotel operating costs
|
(466,480)
|
|
(560,637)
|
|
(556,912)
|
(89,668)
|
Rental expenses
|
(165,391)
|
|
(190,645)
|
|
(192,826)
|
(31,047)
|
Staff cost
|
(89,142)
|
|
(114,169)
|
|
(116,089)
|
(18,691)
|
Depreciation and amortization
|
(73,021)
|
|
(84,790)
|
|
(87,435)
|
(14,078)
|
Hotel supplies
|
(24,468)
|
|
(40,439)
|
|
(34,268)
|
(5,517)
|
Utilities
|
(57,773)
|
|
(46,554)
|
|
(60,954)
|
(9,814)
|
Other
|
(56,685)
|
|
(84,040)
|
|
(65,340)
|
(10,521)
|
Sales and marketing expenses
|
(12,459)
|
|
(31,702)
|
|
(16,097)
|
(2,592)
|
General and administrative
expenses
|
(42,785)
|
|
(52,555)
|
|
(53,806)
|
(8,663)
|
|
|
|
|
|
|
|
Total operating costs and
expenses
|
(521,724)
|
|
(644,894)
|
|
(626,815)
|
(100,923)
|
Income from operations
|
23,303
|
|
51,136
|
|
13,725
|
2,210
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
|
Interest income
|
2,109
|
|
800
|
|
1,099
|
177
|
Interest expense
|
(6,385)
|
|
(2,875)
|
|
(4,591)
|
(739)
|
Income before income tax
|
19,027
|
|
49,061
|
|
10,233
|
1,648
|
Income tax expenses
|
(7,341)
|
|
(13,844)
|
|
(7,043)
|
(1,134)
|
Net income
|
11,686
|
|
35,217
|
|
3,190
|
514
|
Net
income attributable to non-controlling interest
|
7,283
|
|
2,683
|
|
2,254
|
363
|
Net income attributable to 7 Days Group
Holdings Limited
ordinary shareholders
|
18,969
|
|
37,900
|
|
5,444
|
877
|
|
|
|
|
|
|
|
Basic earnings per ordinary
share
|
0.13
|
|
0.26
|
|
0.04
|
0.01
|
Diluted earnings per ordinary
share
|
0.13
|
|
0.26
|
|
0.04
|
0.01
|
|
|
|
|
|
|
|
Other Comprehensive loss
|
|
|
|
|
|
|
Foreign currency transaction adjustment, net of nil
tax
|
(805)
|
|
(1,857)
|
|
(220)
|
(35)
|
|
|
|
|
|
|
|
Comprehensive income
|
10,881
|
|
33,360
|
|
2,970
|
479
|
Less: Comprehensive income attributable to
noncontrolling interest
|
(7,283)
|
|
(2,683)
|
|
(2,254)
|
(363)
|
Comprehensive income attributable to 7
Days
Group Holdings Limited ordinary
shareholders
|
18,164
|
|
36,043
|
|
5,224
|
842
|
7 Days
Group Holdings Limited
Reconciliation of GAAP and Non-GAAP
Results
|
EBITDA(non-GAAP)
|
|
|
|
|
Quarter
Ended
|
|
|
Mar
31
|
|
Dec
31
|
|
Mar
31
|
|
|
2012
|
|
2012
|
|
2013
|
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
Net
income attributable to 7 Days Group Holdings Limited
ordinary shareholders
|
|
18,969
|
|
37,900
|
|
5,444
|
877
|
Interest
income
|
|
(2,109)
|
|
(800)
|
|
(1,099)
|
(177)
|
Interest
expense
|
|
6,385
|
|
2,875
|
|
4,591
|
739
|
Income tax
expenses
|
|
7,341
|
|
13,844
|
|
7,043
|
1,134
|
Depreciation and amortization
|
|
75,170
|
|
87,429
|
|
90,226
|
14,527
|
EBITDA
(non-GAAP)
|
|
105,756
|
|
141,248
|
|
106,205
|
17,100
|
EBITDA%
|
|
19.4%
|
|
20.3%
|
|
16.6%
|
16.6%
|
Share-based compensation expenses
|
|
8,868
|
|
5,187
|
|
6,682
|
1,076
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non- GAAP) excluding share-based
compensation expenses
|
|
114,624
|
|
146,435
|
|
112,887
|
18,176
|
Adjusted EBITDA%
|
|
21.0%
|
|
21.0%
|
|
17.6%
|
17.6%
|
Non-GAAP net income attributable to 7 Days Group
Holdings Limited ordinary shareholders
|
|
|
Quarter
Ended
|
|
|
Mar
31
|
|
Dec
31
|
|
Mar
31
|
|
|
2012
|
|
2012
|
|
2013
|
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
US$'000
|
Net
income attributable to 7 Days Group Holdings Limited
ordinary shareholders (GAAP)
|
|
18,969
|
|
37,900
|
|
5,444
|
877
|
|
|
|
|
|
|
|
|
Share-based compensation expenses
|
|
8,868
|
|
5,187
|
|
6,682
|
1,076
|
|
|
|
|
|
|
|
|
Net
income attributable to ordinary shareholders
excluding share-based compensation expenses (Non GAAP
net income)
|
|
27,837
|
|
43,087
|
|
12,126
|
1,953
|
Earnings per share
|
|
|
|
|
Quarter
Ended
|
|
|
Mar
31
|
|
Dec
31
|
|
Mar
31
|
|
|
2012
|
|
2012
|
|
2013
|
|
|
RMB
|
|
RMB
|
|
RMB
|
USD
|
Basic
earnings per ordinary share (GAAP)
|
|
0.13
|
|
0.26
|
|
0.04
|
0.01
|
Diluted
earnings per ordinary share (GAAP)
|
|
0.13
|
|
0.26
|
|
0.04
|
0.01
|
|
|
|
|
|
|
|
|
Basic
earnings per ordinary share(Non-GAAP), excluding share-based
compensation expenses
|
|
0.19
|
|
0.29
|
|
0.08
|
0.01
|
|
|
|
|
|
|
|
|
Diluted
earnings per ordinary share(Non-GAAP), excluding share-based
compensation expenses
|
|
0.18
|
|
0.29
|
|
0.08
|
0.01
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
Basic
weighted average number of ordinary shares
|
|
149,942,510
|
|
146,813,397
|
|
147,035,958
|
Diluted
weighted average number of ordinary shares
|
|
151,299,954
|
|
147,384,945
|
|
147,923,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
31-Mar-12
|
31-Dec-12
|
31-Mar-13
|
|
|
RMB
'000
|
RMB
'000
|
RMB'000
|
USD'000
|
Hotel
operating cost
|
|
|
|
|
|
GAAP
Result
|
(466,480)
|
(560,637)
|
(556,912)
|
(89,668)
|
|
% of
Total net revenue
|
85.59%
|
80.55%
|
86.94%
|
86.94%
|
|
Share-based Compensation
|
555
|
313
|
400
|
64
|
|
% of
Total net revenue
|
0.10%
|
0.04%
|
0.06%
|
0.06%
|
|
Non-GAAP
Result
|
(465,925)
|
(560,324)
|
(556,512)
|
(89,604)
|
|
% of
Total net revenue
|
85.49%
|
80.50%
|
86.88%
|
86.88%
|
|
|
|
|
|
|
Sales and
marketing expenses
|
|
|
|
|
|
GAAP
Result
|
(12,459)
|
(31,702)
|
(16,097)
|
(2,592)
|
|
% of
Total net revenue
|
2.29%
|
4.55%
|
2.51%
|
2.51%
|
|
Share-based Compensation
|
586
|
578
|
623
|
100
|
|
% of
Total net revenue
|
0.11%
|
0.08%
|
0.10%
|
0.10%
|
|
Non-GAAP
Result
|
(11,873)
|
(31,124)
|
(15,474)
|
(2,492)
|
|
% of
Total net revenue
|
2.18%
|
4.47%
|
2.42%
|
2.42%
|
|
|
|
|
|
|
General
and administrative expenses
|
|
|
|
|
|
GAAP
Result
|
(42,785)
|
(52,555)
|
(53,806)
|
(8,663)
|
|
% of
Total net revenue
|
7.85%
|
7.55%
|
8.40%
|
8.40%
|
|
Share-based Compensation
|
7,727
|
4,296
|
5,659
|
911
|
|
% of
Total net revenue
|
1.42%
|
0.62%
|
0.88%
|
0.88%
|
|
Non-GAAP
Result
|
(35,058)
|
(48,259)
|
(48,147)
|
(7,752)
|
|
% of
Total net revenue
|
6.43%
|
6.93%
|
7.52%
|
7.52%
|
|
|
|
|
|
|
Total
operating cost and expenses
|
|
|
|
|
|
GAAP
Result
|
(521,724)
|
(644,894)
|
(626,815)
|
(100,923)
|
|
% of
Total net revenue
|
95.72%
|
92.65%
|
97.86%
|
97.86%
|
|
Share-based Compensation
|
8,868
|
5,187
|
6,682
|
1,076
|
|
% of
Total net revenue
|
1.63%
|
0.75%
|
1.04%
|
1.04%
|
|
Non-GAAP
Result
|
(512,856)
|
(639,707)
|
(620,133)
|
(99,847)
|
|
% of
Total net revenue
|
94.10%
|
91.91%
|
96.81%
|
96.81%
|
|
|
|
|
|
|
Income
from operations
|
|
|
|
|
|
GAAP
Result
|
23,303
|
51,136
|
13,725
|
2,210
|
|
% of
Total net revenue
|
4.28%
|
7.35%
|
2.14%
|
2.14%
|
|
Share-based Compensation
|
8,868
|
5,187
|
6,682
|
1,076
|
|
% of
Total net revenue
|
1.63%
|
0.75%
|
1.04%
|
1.04%
|
|
Non-GAAP
Result
|
32,171
|
56,323
|
20,407
|
3,286
|
|
% of
Total net revenue
|
5.90%
|
8.09%
|
3.19%
|
3.19%
|
|
|
|
|
|
|
|
7 Days
Group Holdings Limited
Operating Data
|
|
|
As of
and for
the
Quarter Ended
|
|
|
Mar
31
|
Dec
31
|
Mar
31
|
|
|
2012
|
2012
|
2013
|
|
|
|
|
|
Hotels
in operation
|
|
1,044
|
1,345
|
1,427
|
Leased-and-operated hotels
|
|
417
|
492
|
500
|
Managed
hotels
|
|
627
|
853
|
927
|
|
|
|
|
|
Hotels
under conversion
|
|
189
|
223
|
223
|
Leased-and-operated hotels
|
|
30
|
21
|
14
|
Managed
hotels
|
|
159
|
202
|
209
|
|
|
|
|
|
Total
hotel rooms for hotels in operation
|
|
104,191
|
133,497
|
141,091
|
Leased-and-operated hotels
|
|
43,800
|
51,725
|
52,691
|
Managed
hotels
|
|
60,391
|
81,772
|
88,400
|
|
|
|
|
|
Total
hotel rooms for hotels under conversion
|
|
18,542
|
20,368
|
19,733
|
|
|
|
|
|
Number
of cities covered for hotels in operation
|
|
162
|
208
|
223
|
|
|
|
|
|
Average
occupancy rate
|
|
77.7%
|
78.1%
|
75.3%
|
Leased-and-operated hotels
|
|
79.5%
|
79.2%
|
75.0%
|
Managed
hotels
|
|
76.3%
|
77.4%
|
75.5%
|
|
|
|
|
|
Average
daily rate (in RMB)
|
|
156.4
|
161.8
|
159.1
|
Leased-and-operated hotels
|
|
161.9
|
168.5
|
165.5
|
Managed
hotels
|
|
152.1
|
157.4
|
155.2
|
|
|
|
|
|
RevPAR
(in RMB)
|
|
121.5
|
126.4
|
119.7
|
Leased-and-operated hotels
|
|
128.8
|
133.4
|
124.1
|
Managed
hotels
|
|
116.0
|
121.9
|
117.1
|
SOURCE 7 Days Group Holdings Limited