BEIJING, May 7, 2014 /PRNewswire/ -- SouFun Holdings
Limited (NYSE: SFUN) ("SouFun"), the leading real estate
Internet portal in China,
announced today its unaudited financial results for the first
quarter ended March 31, 2014.
First Quarter 2014 Highlights
- Revenue in the first quarter of 2014 was $121.2 million, a 33.2% increase from the
corresponding period in 2013.
- Operating income in the first quarter of 2014 was
$49.5 million, a 33.1% increase from
the corresponding period in 2013. Non-GAAP operating income
in the first quarter of 2014 was $51.0
million, a 31.0% increase from the corresponding period in
2013.
- Net income attributable to SouFun's
shareholders was $41.5
million, representing a year-over-year increase of 46.2%.
Fully diluted earnings per ADS were $0.10, an increase of 42.9% from the
corresponding period in 2013.
- Non-GAAP net income attributable to SouFun's
shareholders was $47.8 million,
representing a year-over-year increase of 44.0%. Non-GAAP fully
diluted earnings per ADS were $0.11,
an increase of 37.5% from the corresponding period in 2013.
"We are delighted to report our 14th consecutive above guidance
quarter since SouFun was publicly listed, even under China's volatile real estate market
condition." said Vincent Mo,
Executive Chairman of SouFun. "Our solid fundamentals with strong
brand, effective website platform, and fast growing mobile
platform, supported our continued growth. We will continue to
explore new lines of businesses by investing in technologies and
product development and working with strategic partners for
SouFun's long term growth story."
First Quarter 2014 Results
Revenues
SouFun reported total revenue of $121.2
million in the first quarter of 2014, representing an
increase of 33.2% from the corresponding period in 2013, primarily
driven by the growth in listing services and marketing
services.
Revenue from marketing services was $47.0
million in the first quarter of 2014, an increase of 31.2%
from $35.8 million in the
corresponding period in 2013, primarily due to more overall
advertising spending by developers during the quarter.
Revenue from e-commerce services was $29.4 million in the first quarter of 2014, an
11.6% increase from $26.4 million in
the same period in 2013.
Revenue from listing services was $42.1
million in the first quarter of 2014, an increase of 57.1%
from $26.8 million for the
corresponding period in 2013, primarily due to increased paying
agent subscribers.
Revenue from other value-added services was $2.7 million in the first quarter of 2014, an
increase of 32.3% from $2.0 million
in the corresponding period in 2013.
Cost of Revenue
Cost of revenue was $24.9 million
in the first quarter of 2014, an increase of 24.3% from
$20.0 million in the corresponding
period in 2013. The increase in cost of revenue was mainly driven
by the increase in taxes and surcharges and staff cost
Gross margin was 79.5% in the first quarter of 2014, compared to
78.0% in the corresponding period in 2013.
Operating Expenses
Operating expenses were $46.9
million in the first quarter of 2014, an increase of 38.6%
from $33.8 million for the
corresponding period in 2013.
Selling expenses were $27.5
million in the first quarter of 2014, an increase of 47.0%
from $18.7 million in the
corresponding period in 2013, primarily due to increased staff cost
and advertising and promotional expenses.
General and administrative expenses were $19.3 million in the first quarter of 2014, an
increase of 28.3% from $15.1 million
in the corresponding period in 2013, primarily due to increased
staff cost.
Operating Income
Operating income was $49.5 million
in the first quarter of 2014, an increase of 33.1% from
$37.2 million in the corresponding
period in 2013.
Income Tax Expenses
Income tax expense was $15.2
million in the first quarter of 2014, a 30.7% increase
compared to $11.6 million for the
corresponding period in 2013 was due to increase in income before
taxes partially offset by certain subsidiaries being subject to a
lower dividend-related withholding tax rate compared to the
corresponding period in 2013.
Net Income and EPS
Net income attributable to SouFun's shareholders was
$41.5 million in the first quarter of
2014, a 46.2% increase from $28.4
million in the corresponding period in 2013. Fully diluted
earnings per ADS were $0.10 in the
first quarter of 2014, an increase of 42.9% from $0.07 in the corresponding period in 2013.
Adjusted EBITDA
Adjusted EBITDA, defined as non-GAAP net income before income
taxes, interest expenses, interest income, depreciation and
amortization, was $54.8 million in
the first quarter of 2014, an increase of 34.0% as compared to
$40.9 million in the corresponding
period in 2013.
Cash
As of March 31, 2014, SouFun had
cash, cash equivalents, and short-term investments of $943.7 million, compared to $591.1 million as of December 31, 2013. Cash flow from operating
activities was $118.2 million in the
first quarter of 2014, a 97.7% increase from $59.8 million in the same period in 2013.
Business Outlook
SouFun estimates its total revenue for 2014 will be between
$780.0 million and $796.0 million,
representing a year-on-year increase of 22.5% to 25%. This forecast
reflects SouFun's current and preliminary view, which is subject to
change.
Conference Call Information
SouFun's management team will host a conference call on the same
day at 8:00 AM U.S. EDT (8:00 PM Beijing / Hong
Kong time). The dial-in details for the live conference call
are:
The dial-in details for the live conference call are:
International
Toll:
|
+65
6723-9381
|
Local
Toll:
|
United
States
|
+1 866-519-4004/+1
845-675-0437
|
Hong Kong
|
+852 800-930-346/+852
2475-0994
|
Mainland
China
|
+86 400-620-8038 /
+86 800-819-0121
|
Conference ID
number:
|
3248
5154
|
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
PM U.S. EDT on May 7 through
11:59 PM May
14, 2014. 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 /
+86 800-870-0206
|
Conference ID
number:
|
3248
5154
|
A live and archived webcast of the conference call will be
available on SouFun's website at http://ir.soufun.com.
About SouFun
SouFun operates the leading real estate Internet portal in
China in terms of the number of
page views and visitors to its websites in 2013, according to DCCI,
an independent market research institution commissioned by us.
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-related sectors in China.
SouFun currently maintains about 100 offices to focus on local
market needs and its website and database contains real estate
related content covering more than 330 cities in China. For more information about SouFun,
please visit http://ir.soufun.com.
Safe Harbor Statements
This announcement 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. Statements that are not historical facts, including
statements about SouFun's beliefs and expectations, including but
not limited to revenue guidance, growth prospects and the
introduction and success of new products and services and new lines
of business, 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, but are not limited to, SouFun's
limited operating history, the timing and success of new products
and services and any new lines of business, regulatory requirements
over the real estate sector in China and for existing and new products and
services and any new lines of business, changes in and growth rates
for the Chinese and global economies, 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 and impact the
Company's business.
Further information regarding these and other risks and
uncertainties is included in SouFun's annual report on form 20-F
and other documents filed with the U.S. Securities and Exchange
Commission. SouFun does not assume any obligation to update any
forward-looking statements in this release and elsewhere, which
apply only as of the date of this press release.
About Non-GAAP Financial Measures
To supplement SouFun's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), SouFun uses in this press release the
following measures defined as non-GAAP financial measures by the
United States Securities and Exchange Commission: (1) operating
income, (2) net income, (3) basic and diluted earnings per ordinary
share and ADS and (4) adjusted EBITDA. The presentation of the
non-GAAP financial information is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with GAAP. For more information on
these non-GAAP financial measures, please see the table captioned
"Reconciliation of GAAP and non-GAAP Results" set forth at the end
of this press release.
SouFun believes that these non-GAAP financial measures provide
meaningful supplemental information to investors regarding its
operating performance by excluding share-based compensation
expenses and the related tax effects, as well as realized gain on
available-for-sale security for the three months ended June 30, 2013, which (1) may not be indicative of
SouFun's recurring core business operating results or (2) are not
expected to result in future cash payments. These non-GAAP
financial measures also facilitate management's internal
comparisons to SouFun's historical performance and assist its
financial and operational decision making. A limitation of using
these non-GAAP financial measures is that share-based compensation
has been and will continue to be a significant recurring expense
that will continue to exist in SouFun's business for the
foreseeable future. Management compensates for these limitations by
providing specific information regarding the GAAP amounts excluded
from each non-GAAP measure. The accompanying tables have more
details on the reconciliation between non-GAAP financial measures
and their most directly comparable GAAP financial measures.
For investor and media inquiries, please contact:
Mr. Hong Zhao
Vice
President - Finance
SouFun Holdings Limited
Phone: +86-10-5631-8707
Email: hongzhao@soufun.com
Or
Ms. Yiwen Zhang
Investor Relations Manager
SouFun Holdings Limited
Phone: +86-10-5631 8659
E-mail: zhangyiwen@soufun.com
SouFun Holdings
Limited
|
Condensed
Consolidated Balance Sheet
|
( in U.S.
dollars in thousands )
|
ASSETS
|
|
March
31,
|
|
December
31,
|
|
2014
|
2013
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
287,613
|
|
|
581,010
|
|
Restricted cash,
current
|
|
|
-
|
|
|
255,917
|
|
Short-term
investments
|
|
|
656,069
|
|
|
10,138
|
|
Accounts receivable,
net
|
|
|
46,098
|
|
|
44,541
|
|
Funds
receivable
|
|
|
12,600
|
|
|
37,124
|
|
Prepayment and other
current assets
|
|
|
21,054
|
|
|
31,758
|
|
Deferred tax assets,
current
|
|
|
3,220
|
|
|
3,165
|
Total current
assets
|
|
|
1,026,654
|
|
|
963,653
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
218,466
|
|
|
221,442
|
|
Restricted cash,
non-current
|
|
|
206,367
|
|
|
257,499
|
|
Deferred tax assets,
non current
|
|
|
1,641
|
|
|
1,728
|
|
Deposit for
non-current assets
|
|
|
37,797
|
|
|
38,140
|
|
Long-term
investments
|
|
|
33,159
|
|
|
-
|
|
Other non-current
assets
|
|
|
23,894
|
|
|
22,627
|
Total non-current
assets
|
|
|
521,324
|
|
|
541,436
|
Total
assets
|
|
|
1,547,978
|
|
|
1,505,089
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term
loans
|
|
|
-
|
|
|
90,000
|
|
Deferred
revenue
|
|
|
138,631
|
|
|
115,043
|
|
Accrued expenses and
other liabilities
|
|
|
141,012
|
|
|
143,292
|
|
Income tax
payable
|
|
|
52,815
|
|
|
43,688
|
|
Customers' refundable
fees
|
|
|
64,545
|
|
|
53,066
|
|
Amounts due to a
related party
|
|
|
687
|
|
|
537
|
Total current
liabilities
|
|
|
397,690
|
|
|
445,626
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
loans
|
|
|
180,750
|
|
|
180,750
|
Convertible senior
notes
|
|
|
400,000
|
|
|
350,000
|
Deferred tax
liabilities, non-current
|
|
|
89,035
|
|
|
84,767
|
|
Other non-current
liabilities
|
|
|
475
|
|
|
479
|
Total non-current
liabilities
|
|
|
670,260
|
|
|
615,996
|
Total
Liabilities
|
|
|
1,067,950
|
|
|
1,061,622
|
|
|
|
|
|
|
|
|
Shareholders'
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 57,568,424
shares and 57,440,895 shares issued and outstanding
as at March 31, 2014 and December 31, 2013, respectively
|
|
|
7,392
|
|
|
7,376
|
|
|
|
|
|
|
|
|
|
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, 2014 and
December 31, 2013 , respectively
|
|
|
3,124
|
|
|
3,124
|
|
Additional paid-in
capital
|
|
|
91,928
|
|
|
89,071
|
|
Accumulated other
comprehensive income
|
|
|
35,547
|
|
|
43,381
|
|
Retained
earnings
|
|
|
342,037
|
|
|
300,515
|
Total SouFun
Holdings Limited shareholders' equity
|
|
|
480,028
|
|
|
443,467
|
|
Noncontrolling
interests
|
|
|
-
|
|
|
-
|
Total
shareholders' equity
|
|
|
480,028
|
|
|
443,467
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
1,547,978
|
|
|
1,505,089
|
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,
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
|
|
Marketing
services
|
|
|
46,983
|
|
|
35,813
|
E-commerce
services
|
|
|
29,415
|
|
|
26,363
|
Listing
services
|
|
|
42,145
|
|
|
26,834
|
Other
value-added
services
|
|
|
2,678
|
|
|
2,024
|
Total
revenues
|
|
|
121,221
|
|
|
91,034
|
|
|
|
|
|
|
|
Cost of
Revenues:
|
|
|
|
|
|
|
Cost of
services
|
|
|
(24,905)
|
|
|
(20,030)
|
Total Cost of
Revenues
|
|
|
(24,905)
|
|
|
(20,030)
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
96,316
|
|
|
71,004
|
|
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(27,534)
|
|
|
(18,732)
|
General
and administrative
expenses
|
|
|
(19,316)
|
|
|
(15,060)
|
Other
income
|
|
|
53
|
|
|
-
|
Operating
Income
|
|
|
49,519
|
|
|
37,212
|
Foreign
exchange loss
|
|
|
(12)
|
|
|
-
|
Interest
income
|
|
|
11,344
|
|
|
5,678
|
Interest
expense
|
|
|
(5,094)
|
|
|
(3,337)
|
Government
grants
|
|
|
966
|
|
|
422
|
Gain on
bargain purchase
|
|
|
-
|
|
|
102
|
Income before
income taxes and noncontrolling interests
|
|
|
56,723
|
|
|
40,077
|
Income tax
expenses
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(15,201)
|
|
|
(11,633)
|
Net
income
|
|
|
41,522
|
|
|
28,444
|
Net income
attributable to
noncontrolling interests
|
|
|
-
|
|
|
35
|
Net income
attributable to SouFun Holdings Limited shareholders
|
|
|
41,522
|
|
|
28,409
|
Other
comprehensive income, net of tax
|
|
|
|
|
|
|
Foreign
currency translation
adjustments
|
|
|
(7,834)
|
|
|
1,368
|
Unrealized
gain on available-for-sale security
|
|
|
-
|
|
|
78
|
Total other
comprehensive income, net of tax
|
|
|
(7,834)
|
|
|
1,446
|
Comprehensive
income
|
|
|
33,688
|
|
|
29,890
|
Earnings per share
for Class A and Class B ordinary shares
|
|
|
|
|
|
|
Basic
|
|
|
0.51
|
|
|
0.36
|
Diluted
|
|
|
0.48
|
|
|
0.34
|
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
Basic
|
|
|
0.10
|
|
|
0.07
|
Diluted
|
|
|
0.10
|
|
|
0.07
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
81,852,230
|
|
|
77,898,531
|
Diluted
|
|
|
92,606,216
|
|
|
83,308,983
|
Weighted average
number of ADSs outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
409,261,150
|
|
|
389,492,655
|
Diluted
|
|
|
463,031,080
|
|
|
416,544,915
|
|
|
|
|
|
|
|
|
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,
|
|
2014
|
|
2013
|
GAAP income from
operations
|
|
|
49,519
|
|
|
37,212
|
Share-based
compensation expense
|
|
|
1,524
|
|
|
1,763
|
Non-GAAP income from
operations
|
|
|
51,043
|
|
|
38,975
|
|
|
|
|
|
|
|
GAAP net
income
|
|
|
41,522
|
|
|
28,444
|
Withholding tax
related to dividends
|
|
|
4,792
|
|
|
3,149
|
Share-based
compensation expense
|
|
|
1,524
|
|
|
1,763
|
Gain on bargain
purchase
|
|
|
-
|
|
|
(102)
|
Non-GAAP net
income
|
|
|
47,838
|
|
|
33,254
|
|
|
|
|
|
|
|
Net Income
attributable to
SouFun Holdings Limited
shareholders
|
|
|
41,522
|
|
|
28,409
|
Withholding tax
related to dividends
|
|
|
4,792
|
|
|
3,149
|
Share-based
compensation expense
|
|
|
1,524
|
|
|
1,763
|
Gain on bargain
purchase
|
|
|
-
|
|
|
(102)
|
Non-GAAP net Income
attributable to SouFun Holdings Limited shareholders
|
|
|
47,838
|
|
|
33,219
|
|
|
|
|
|
|
|
GAAP earnings per
share for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
Basic
|
|
|
0.51
|
|
|
0.36
|
Diluted
|
|
|
0.48
|
|
|
0.34
|
GAAP earnings per
share ADS:
|
|
|
|
|
|
|
Basic
|
|
|
0.10
|
|
|
0.07
|
Diluted
|
|
|
0.10
|
|
|
0.07
|
Non-GAAP earnings
per share for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
Basic
|
|
|
0.58
|
|
|
0.43
|
Diluted
|
|
|
0.55
|
|
|
0.40
|
Non-GAAP earnings
per ADS shares:
|
|
|
|
|
|
|
Basic
|
|
|
0.12
|
|
|
0.09
|
Diluted
|
|
|
0.11
|
|
|
0.08
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
81,852,230
|
|
|
77,898,531
|
Diluted
|
|
|
92,606,216
|
|
|
83,308,983
|
Weighted average
number of ADSs outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
409,261,150
|
|
|
389,492,655
|
Diluted
|
|
|
463,031,080
|
|
|
416,544,915
|
|
|
|
|
|
|
|
SouFun Holdings
Limited
|
Reconciliation of
Non-GAAP EBITDA
|
( in thousands of
U.S. dollars)
|
|
Three months
ended
|
|
March 31,
2014
|
March 31,
2013
|
|
|
|
Non-GAAP
Net
income
|
47,838
|
33,254
|
Add back:
|
|
|
Interest
expense
|
5,094
|
3,337
|
Income tax
expenses
|
10,409
|
8,484
|
Depreciation
expenses
|
2,819
|
1,499
|
Subtract:
|
|
|
Interest
income
|
(11,344)
|
(5,678)
|
Adjusted
EBITDA
|
54,816
|
40,896
|
SOURCE SouFun Holdings Limited