SHANGHAI, May 31, 2011 /PRNewswire-Asia-FirstCall/ -- China
Real Estate Information Corporation ("CRIC" or the "Company")
(NASDAQ: CRIC), a leading provider of real estate information,
consulting and online services in China, today announced its unaudited financial
results for the first quarter ended March
31, 2011.
First Quarter 2011 Highlights
- Total revenues for the first quarter of 2011 increased 55%
year-over-year to $42.0 million, from
$27.2 million for the same quarter of
2010, and exceeded the high end of the Company's guidance range of
$39 million to $41 million.
- Non-GAAP(1) income from operations for the first quarter of
2011 was $5.8 million, compared to
$9.7 million for the same quarter of
2010. CRIC's first quarter operating income was unfavorably
impacted by the Company's spending in several new and expanded real
estate channels, including the Baidu, Inc. ("Baidu") channels,
commercial real estate channel and secondary home channel, compared
with the same quarter of 2010.
- Non-GAAP net income attributable to CRIC shareholders for the
first quarter of 2011 was $7.0
million, compared to $10.3
million for the same quarter of 2010.
- Non-GAAP diluted net income per American depositary share
("ADS") for the quarter was $0.05.
(1) CRIC uses in
this press release the following non-GAAP financial measures: (1)
net income attributable to CRIC shareholders (2) net income
attributable to CRIC shareholders per diluted ADS and (3) income
from operations, each of which excludes expenses relating to
share-based compensation and amortization of intangible assets
resulting from business acquisitions. See "About Non-GAAP Financial
Measures" and "Reconciliation of GAAP and Non-GAAP Results" below
for more information about the non-GAAP financial measures included
in this press release.
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"We continued to deliver fast growth in our total revenues in
the first quarter of 2011, especially in revenues from our online
business, which more than doubled compared to the same period of
last year and accounted for almost half of our total revenues. This
strong momentum was driven by our gains in market share in existing
cities, improved brand awareness, gradual maturity of business in
newly entered cities and our new and expanded online real estate
channels," said Xin Zhou, CRIC's CEO
and co-chairman.
Mr. Zhou added, "Another highlight of our business is that we
recently initiated our real estate e-commerce business, further
enhancing our profile in the online real estate services segment.
Due to the specialty and complexity involved in conducting real
estate transactions, it can be difficult for buyers and sellers to
complete online real estate transactions. We leveraged our real
estate industry expertise, comprehensive database and technological
advantage, and spent a considerable amount of time and resources
preparing for the launch of this new platform. We have so far
successfully tested several real estate e-commerce models through
four real estate projects on our new e-commerce website. As a
result, we are optimistic about our e-commerce business and will
continue investing in and improving this innovative platform while
maintaining strong growth in our existing businesses."
Bin Laurence, CRIC's CFO said, "We had strong and steady revenue
growth in the first quarter. Although our operating margin was
affected by seasonality and staff expansion, we are confident in
achieving profitable growth for the year as our new channels pick
up momentum in the next few quarters."
Financial Results for the First Quarter of 2011
Revenues
First quarter total revenues were $42.0
million in 2011, an increase of 55% from $27.2 million for the same quarter of 2010.
Revenues from online services were $20.5
million, an increase of 148% from $8.3 million for the first quarter of 2010. The
increase was mainly due to substantial gains in market share in all
major cities after CRIC acquired its online business in
October 2009, as well as the
Company's offering of additional services on the new and expanded
online channels, including Baidu real estate channels, commercial
real estate services and secondary home channels.
Revenues from information and consulting services were
$18.0 million, an increase of 4% from
$17.4 million for the same quarter of
2010. The increase was primarily due to an increased number of
subscribers to the CRIC database, partly offset by lower real
estate project consulting fees recognized in the first quarter of
2011, due to lower land transaction-based consulting fees in the
quarter compared to the first quarter of 2010.
Revenues from other services, including offline advertising and
promotional events, were $3.5 million
for the first quarter of 2011, an increase of 128% from
$1.5 million for the same quarter of
2010, mainly due to additional revenues contributed by the real
estate promotional event provider acquired in the second quarter of
2010.
Cost of Revenues
First quarter cost of revenues was $10.6
million in 2011, an increase of 79% from $5.9 million for the first quarter of 2010,
primarily due to additional expenses associated with CRIC's launch
of the new real estate channels on Baidu in August 2010 and costs associated with the
services provided by the real estate promotional event provider
acquired in the second quarter of 2010.
Selling, General and Administrative
("SG&A")
Expenses
First quarter SG&A expenses were $34.8 million in 2011, an increase of 69% from
$20.5 million for the same quarter of
2010. The increase in SG&A was primarily due to (1) salary,
commission, bonus associated with additional sales and
administrative staff, and expenses paid to Baidu for the Company's
online business and (2) salary and bonus expenses associated with
additional sales and administrative staff of the Company's real
estate information and consulting business.
Income (Loss) from
Operations
First quarter loss from operations was $3.3 million in 2011, as compared to income of
$0.7 million for the same quarter of
2010. Non-GAAP income from operations for the first quarter of 2011
was $5.8 million, compared with
$9.7 million for the same quarter of
2010. CRIC's first quarter operating income was unfavorably
impacted by the Company's spending in several new and expanded real
estate channels, including the Baidu channels, commercial real
estate channel and secondary home channel.
Other Income
First quarter other income of $1.1
million primarily represented cash subsidies received by the
Company's subsidiaries from local governments as incentives for
establishing offices and operating in certain local districts.
Net Income (Loss) Attributable
to CRIC Shareholders
Net loss attributable to CRIC shareholders was $1.4 million for the first quarter of 2011, as
compared to net income attributable to CRIC shareholders of
$1.9 million for the same quarter of
2010. Non-GAAP net income attributable to CRIC shareholders was
$7.0 million for the first quarter of
2011, as compared to non-GAAP net income attributable to CRIC
shareholders of $10.3 million in the
same quarter of 2010.
Cash Flow
As of March 31, 2011, the Company
had a cash balance of $324.8 million.
The Company has so far repurchased, under its $50 million share repurchase program announced in
March 2011, approximately two million
ADSs in the open market at an average price of $7.86 per ADS.
First quarter net cash used in operating activities was
$0.7 million. Non-GAAP net income
attributable to CRIC shareholders of $7.0
million and a decrease in prepaid expenses of $3.0 million was offset by an increase in
accounts receivable of $6.5 million
and amount due from related parties of $4.5
million.
First quarter net cash used in investing activities was
$12.5 million. This amount was mainly
attributable to the payment of $10.3
million for the acquisition of Firmway Holdings Limited, an
entity that holds a 20-year lease for an office building under
construction in the same complex of CRIC's existing headquarters in
Shanghai. The Company intends to
use the building as additional office space upon completion of its
construction. Cash used in investing activities in the first
quarter also included a $2.4 million
investment in affiliates.
Business Outlook
CRIC estimates that its total revenues for the second quarter of
2011 will be in the range of $52 million to
$54 million, compared to $37.4
million in the same quarter of 2010. Total revenues estimate
includes estimated revenues from real estate information and
consulting services and other services of $23 million to $24 million, compared to
$23.1 million in the same quarter of
2010, and estimated revenues from real estate online services of
$29 million to $30 million, compared
to $14.3 million in the same quarter
of 2010. The above forecast reflects the Company's current and
preliminary view, which is subject to change.
Conference Call Information
CRIC's management will host an earnings conference call on
May 31, 2011 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong
Kong time).
Dial-in details for the earnings conference call are as
follows:
U.S./International:
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+1-718-354-1157
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Hong Kong:
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+852-3002-1615
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Mainland China:
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+86-400-810-1172
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Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is
"CRIC."
A live and archived webcast will be available at
http://ir.cric.com.
About CRIC
China Real Estate Information Corporation ("CRIC") (NASDAQ:
CRIC) is a leading provider of real estate information, consulting
and online services with a presence in over 140 cities across
China. CRIC, a subsidiary of
E-House (China) Holdings Limited
(NYSE: EJ), merged with the online real estate business of SINA
Corporation (NASDAQ: SINA) upon the completion of CRIC's initial
public offering and listing of its ADSs on the NASDAQ Global Select
Market in October 2009. Leveraging
its proprietary, advanced and comprehensive real estate information
database and analysis system, CRIC provides a broad range of real
estate-related services to all participants in the real estate
value chain, including developers, suppliers, agents, brokers,
service providers and individual consumers. CRIC's services include
subscription-based information services, customized consulting
services and online services through several real estate websites
that provide region-specific real estate information and access to
online communities. For more information about CRIC, please visit
http://www.cric.com.
Safe Harbor: Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of Section
21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements can be identified by terminology such as
"may," "will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "likely to" or other similar expressions. The
Company has based these forward-looking statements largely on its
current expectations and projections about future events and
financial trends that it believes may affect its financial
condition, results of operations, business strategy and financial
needs. Among other things, the Business Outlook section and
quotations from management in this press release, as well as CRIC's
strategic and operational plans, contain forward-looking
statements. CRIC may also make written or oral forward-looking
statements in its reports filed or furnished with the U.S.
Securities and Exchange Commission, 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 CRIC's beliefs and
expectations, are forward-looking statements and are subject to
change, and such change may be material and may have a material
adverse effect on the Company's financial condition and results of
operations for one or more periods. Forward-looking statements
involve inherent risks and uncertainties. A number of important
factors could cause actual results to differ materially from those
contained, either expressly or impliedly, in any of the
forward-looking statements in this press release. Potential risks
and uncertainties include, but are not limited to, a severe or
prolonged downturn in the global economy, CRIC's susceptibility to
fluctuations in the real estate market of China, government measures aimed at
China's real estate industry,
failure of the real estate services industry in China to develop or mature as quickly as
expected, diminution of the value of CRIC's brand or image, CRIC's
inability to successfully execute its strategy of expanding into
new geographical markets in China,
CRIC's failure to manage its growth effectively and efficiently,
CRIC's failure to successfully execute the business plans for its
strategic alliances and other new business initiatives, CRIC's loss
of its competitive advantage if it fails to maintain and improve
its proprietary CRIC system or to prevent disruptions or failure in
the system's performance, CRIC's failure to compete successfully,
fluctuations in CRIC's results of operations and cash flows, CRIC's
reliance on a concentrated number of real estate developers,
natural disasters and outbreaks of health epidemics and other risks
outlined in CRIC's filings with the U.S. Securities and Exchange
Commission. All information provided in this press release is
current as of the date of this press release, and CRIC does not
undertake any obligation to update any such information, except as
required under applicable law.
About Non-GAAP Financial Measures
To supplement CRIC's consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), CRIC uses the following non-GAAP financial
measures: (1) net income attributable to CRIC shareholders (2) net
income attributable to CRIC shareholders per diluted ADS and (3)
income from operations, each of which excludes expenses relating to
share-based compensation and amortization of intangible assets
resulting from business acquisitions. The presentation of these
non-GAAP financial measures 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.
CRIC believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its operating
performance by excluding expenses relating to share-based
compensation and amortization of intangible assets resulting from
business acquisitions that may not be indicative of its operating
performance. CRIC believes that both management and investors
benefit from referring to these non-GAAP financial measures in
assessing its operating performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to CRIC's historical
performance. CRIC computes its non-GAAP financial measures using
the same consistent method from quarter to quarter. CRIC believes
these non-GAAP financial measures are useful to investors in
allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision making. A limitation of using non-GAAP financial measures
excluding expenses relating to share-based compensation and
amortization of intangible assets resulting from business
acquisitions is that these expenses charges have been and will
continue to be significant recurring expenses in CRIC's business
for the foreseeable future. Management compensates for these
limitations by providing specific information regarding the GAAP
amount excluded from each non-GAAP measure. The accompanying tables
have more details on the reconciliation between non-GAAP financial
measures and their most comparable GAAP financial measures.
For investor and media inquiries
please contact:
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In China
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Penny Pan
Manager, Investor
Relations
China Real Estate Information
Corporation
Phone: +86 (21)
6086-8111
E-mail: ir@cric.com
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Derek Mitchell
Ogilvy Financial,
Beijing
Phone: +86 (10)
8520-6284
E-mail: cric@ogilvy.com
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In the U.S.
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Jessica Barist Cohen
Ogilvy Financial, New
York
Phone: +1 (646)
460-9989
E-mail: cric@ogilvy.com
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CHINA REAL
ESTATE INFORMATION CORPORATION
UNAUDITED
CONSOLIDATED BALANCE SHEET
(In
thousands of U.S. dollars)
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December
31,
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March
31,
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2010
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2011
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ASSETS
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Current
assets
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|
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Cash and
cash equivalents
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340,720
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324,750
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Unbilled
accounts receivable, net
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|
|
|
51,175
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|
|
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53,972
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|
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Accounts
receivable, net
|
|
|
|
9,796
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|
|
|
12,570
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|
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Prepaid
expenses and other current assets
|
|
|
|
22,232
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|
|
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19,496
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Amounts due
from related parties
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|
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5,080
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|
|
|
11,612
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Total current
assets
|
|
|
|
429,003
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|
|
|
422,400
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Property and
equipment, net
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|
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|
11,177
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|
|
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11,256
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Intangible
assets, net
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|
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182,622
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|
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183,281
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|
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Goodwill
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450,299
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451,616
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Investment
in affiliates
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4,444
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|
|
|
6,712
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Other
non-current assets
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6,378
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|
|
|
9,244
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TOTAL ASSETS
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|
|
|
1,083,923
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|
|
|
1,084,509
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LIABILITES AND
EQUITY
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Current
liabilities
|
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|
|
|
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Accounts payable
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3,300
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|
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2,179
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Advance from
customers
|
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|
6,455
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|
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8,413
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Accrued payroll and welfare
expenses
|
|
|
|
9,882
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|
|
|
8,914
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|
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Income tax payable
|
|
|
|
16,935
|
|
|
|
15,428
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Other tax payable
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|
5,428
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|
|
|
4,846
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Amounts due to related
parties
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2,785
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|
|
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2,118
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Other current
liabilities
|
|
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|
7,731
|
|
|
|
8,982
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Total current
liabilities
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52,516
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50,880
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Deferred tax
liabilities—non-current
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39,969
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41,286
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Total liabilities
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92,485
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92,166
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Equity
|
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Ordinary shares ($0.0002 par
value): 250,000,000 shares authorized, 143,749,405
and 143,394,358 shares issued and outstanding, as of December 31,
2010 and March 31, 2011, respectively
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29
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|
29
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Additional paid-in
capital
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882,429
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|
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884,161
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Subscription
receivables
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(98)
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(43)
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Retained earnings
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97,557
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|
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94,745
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Accumulated other comprehensive
income
|
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8,403
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|
|
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10,291
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|
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Total CRIC
shareholders' equity
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|
|
|
988,320
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|
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989,183
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Non-controlling
interests
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|
|
3,118
|
|
|
|
3,160
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|
|
Total equity
|
|
|
|
991,438
|
|
|
|
992,343
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|
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TOTAL LIABILITIES AND
EQUITY
|
|
|
|
1,083,923
|
|
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|
1,084,509
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|
|
|
|
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CHINA REAL ESTATE INFORMATION
CORPORATION
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars,
except share data and per share data)
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|
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|
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|
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Three months
ended
|
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March
31,
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2010
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2011
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Revenues
|
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Information
and consulting services
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17,371
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18,044
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Online
services
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8,246
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20,460
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Other
services
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1,553
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3,540
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27,170
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42,044
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Cost of
revenues
|
|
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(5,930)
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|
|
|
(10,602)
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Selling,
general and administrative expenses
|
|
|
(20,524)
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|
|
|
(34,760)
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|
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Income
(loss) from operations
|
|
|
716
|
|
|
|
(3,318)
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|
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Interest
income
|
|
|
94
|
|
|
|
385
|
|
|
Other
income, net
|
|
|
1,327
|
|
|
|
1,063
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|
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Income
(loss) before taxes and equity in affiliates
|
|
|
2,137
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|
|
|
(1,870)
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|
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Income tax
benefit (expense)
|
|
|
(512)
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|
|
|
377
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|
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Income
(loss) before equity in affiliates
|
|
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1,625
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|
|
|
(1,493)
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|
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Income from
equity in affiliates
|
|
|
—
|
|
|
|
93
|
|
|
Net income
(loss)
|
|
|
1,625
|
|
|
|
(1,400)
|
|
|
Less: net
loss (income) attributable to non-controlling interests
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|
|
(323)
|
|
|
|
29
|
|
|
Net income
(loss) attributable to CRIC shareholders
|
|
|
1,948
|
|
|
|
(1,429)
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share:
|
|
|
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Basic
|
|
|
0.01
|
|
|
|
(0.01)
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|
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Diluted
|
|
|
0.01
|
|
|
|
(0.01)
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|
|
Shares used
in computation:
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
142,984,722
|
|
|
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143,785,973
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Diluted
|
|
|
145,823,934
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|
|
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146,356,913
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Note 1 The
conversion of Renminbi ("RMB") amounts into USD amounts is based on
the rate of USD1 =
RMB6.5564 on
March 31, 2011 and USD1 = RMB6.5859 for the three months ended
March 31, 2011.
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CHINA REAL ESTATE INFORMATION
CORPORATION
Reconciliation of GAAP and
Non-GAAP Results
(In
thousands of U.S. dollars, except share data and per share
data)
|
|
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|
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|
|
|
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|
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Three months
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2010
|
|
|
2011
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
GAAP income
(loss) from operations
|
|
|
716
|
|
|
|
(3,318)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses
|
|
|
3,931
|
|
|
|
3,884
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expenses of intangible assets resulting from business
acquisitions
|
|
|
5,062
|
|
|
|
5,252
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
income from operations
|
|
|
9,709
|
|
|
|
5,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) attributable to CRIC shareholders
|
|
|
1,948
|
|
|
|
(1,429)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expenses (net of tax and non-controlling
interests)
|
|
|
3,931
|
|
|
|
3,884
|
|
|
Amortization
expenses of intangible assets resulting from business acquisitions
(net of tax and non-controlling interests)
|
|
|
4,419
|
|
|
|
4,554
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to CRIC shareholders
|
|
|
10,298
|
|
|
|
7,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) per ADS — basic
|
|
|
0.01
|
|
|
|
(0.01)
|
|
|
GAAP net
income (loss) per ADS — diluted
|
|
|
0.01
|
|
|
|
(0.01)
|
|
|
Non-GAAP net
income per ADS — basic
|
|
|
0.07
|
|
|
|
0.05
|
|
|
Non-GAAP net
income per ADS — diluted
|
|
|
0.07
|
|
|
|
0.05
|
|
|
Shares used
in calculating basic GAAP / non-GAAP net income (loss) attributable
to CRIC shareholders per ADS
|
|
|
142,984,722
|
|
|
|
143,785,973
|
|
|
Shares used
in calculating diluted GAAP / non-GAAP net income (loss)
attributable to CRIC shareholders per ADS
|
|
|
145,823,934
|
|
|
|
146,356,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE China Real Estate Information Corporation