SHANGHAI, Nov. 9, 2015 /PRNewswire/ -- Homeinns Hotel Group
(NASDAQ: HMIN) ("Homeinns" or "the Company"), a leading economy
hotel chain in China, today
announced its unaudited financial results for the third quarter
ended September 30, 2015.
Third Quarter 2015
Highlights
- Total revenues decreased 1.1% year over year to RMB 1,855.9 million (US$292.0 million) for the third quarter of 2015,
within the previously provided guidance range of RMB 1,830 million to RMB 1,860 million.
- Net income attributable to ordinary shareholders was
RMB 145.6 million (US$22.9 million) for the third quarter of 2015,
compared with RMB 245.5 million for
the third quarter of 2014. Adjusted net income attributable to
ordinary shareholders (non-GAAP) decreased 8.4% year over year to
RMB 205.5 million (US$32.3 million) for the third quarter of
2015.
- EBITDA (non-GAAP) decreased 20.4% year over year to
RMB 429.0 million (US$67.5 million) for the third quarter of 2015.
Adjusted EBITDA (non-GAAP) decreased 5.5% year over year to
RMB 488.9 million (US$76.9 million) for the third quarter of
2015.
- Net operating cash inflow increased 15.4% year over year to
RMB 549.7 million (US$86.5 million) for the third quarter of
2015.
- As of September 30, 2015,
Homeinns operated 2,787 hotels across 346 cities in China, with a net addition of 37 hotels during
the third quarter of 2015.
Mr. David Sun, the Company's
chief executive officer, stated, "During the third quarter we
experienced an encouraging continued sequential improvement in our
business performance with a narrowed like-for-like RevPAR decline,
despite sustained macroeconomic challenges. Our revenue
growth and RevPAR remained under pressure given the generally soft
external conditions. However, we are not seeing any signs of
worsening in the domestic travel industry and expect the situation
to remain stable for the rest of the year. It is important to
note that our focus on developing mid-scale offerings is bearing
fruit as Homeinn Plus and Yitel continue to receive very positive
market feedback and both are delivering strong results.
Further, we are making solid progress with membership expansion and
enhancement of our digital capabilities, with both our member count
and mobile user levels reaching record highs."
Mr. Sun continued, "Looking to the balance of the year, while we
do expect the external market conditions to stay difficult, we
remain a strong believer in China's travel industry and leisure market,
which have demonstrated great resilience despite the economic
slowdown in China. With accelerated development of our
mid-scale hotels and stringent cost control, we are confident that
we will be able to continue weathering a choppy economic
environment, further solidifying our leading position in the
market, seizing new growth opportunities, and creating value for
our shareholders."
Hotel Development
|
|
Hotels in Operations
and Pipeline
|
|
Openings
|
Closures*
|
|
|
Group
|
Homeinn
|
Motel
|
Fairyland
|
Yitel
|
Homeinn
Plus
|
|
3Q15
|
3Q15
|
Total Number of
Hotels
|
2,787
|
2,273
|
409
|
30
|
56
|
19
|
|
65
|
28
|
|
Leased-and-Operated
|
917
|
693
|
161
|
22
|
26
|
15
|
|
12
|
10
|
|
Franchised-and-Managed
|
1,870
|
1,580
|
248
|
8
|
30
|
4
|
|
53
|
18
|
|
|
|
|
|
|
|
|
|
|
|
Contracted or under
Construction
|
235
|
141
|
35
|
2
|
22
|
35
|
|
|
|
|
Leased-and-Operated
|
36
|
6
|
6
|
0
|
7
|
17
|
|
|
|
|
Franchised-and-Managed
|
199
|
135
|
29
|
2
|
15
|
18
|
|
|
|
Under Due
Diligence
|
134
|
116
|
12
|
0
|
3
|
3
|
|
|
|
* In the third
quarter of 2015, seven hotels were closed to convert to our other
brands.
|
Operating Metrics
|
Total
Hotels
|
|
Hotels Opened for
at least 18 Months
|
|
3Q2015
|
2Q2015
|
3Q2014
|
|
3Q2015
|
3Q2014
|
Occupancy
Rate
|
86.6%
|
83.3%
|
86.7%
|
|
87.5%
|
88.2%
|
Average Daily Rate
(ADR, RMB)
|
171
|
163
|
174
|
|
170
|
174
|
Revenue per Available
Room (RevPAR, RMB)
|
148
|
136
|
151
|
|
149
|
154
|
For the third quarter of 2015, occupancy rate decreased by 0.1
percentage points while ADR decreased by 1.7%, resulting in a
year-over-year decrease of 1.9% in RevPAR. The decrease in RevPAR
was mainly due to continued difficult market conditions in the
third quarter. Sequentially, RevPAR increased by 9.1% mainly due to
seasonality.
As of September 30, 2015, a total
of 2,131 hotels had been in operation for at least 18 months. The
occupancy rate of these hotels declined year over year from 88.2%
to 87.5%, and ADR decreased year over year from RMB 174 to RMB 170, resulting in a decrease in
RevPAR by 3.2% from RMB 154 to RMB
149 during the third quarter of 2015.
Homeinns Hotel Group had a total of 47.0 million unique
non-corporate members under its frequent guests program as of
September 30, 2015.
Financial Results for Third
Quarter 2015
Revenues
|
(RMB/USD in
Millions)
|
Third Quarter
2015
|
|
Third Quarter
2014
|
|
|
|
RMB
|
USD
|
|
RMB
|
V%
|
|
Leased-and-Operated
Hotels
|
1,573.7
|
247.6
|
|
1,612.0
|
-2.4%
|
|
Franchised-and-Managed Hotels
|
282.3
|
44.4
|
|
264.4
|
6.8%
|
Total
Revenues
|
1,855.9
|
292.0
|
|
1,876.4
|
-1.1%
|
Less: Business
Taxes
|
-108.9
|
-17.1
|
|
-111.9
|
-2.7%
|
Net
Revenues
|
1,747.0
|
274.9
|
|
1,764.4
|
-1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: "V%" represents
year-over-year percentage change in amounts
|
|
Revenues from leased-and-operated hotels decreased 2.4% year
over year to RMB 1.57 billion
(US$247.6 million) for the third
quarter of 2015. The year-over-year decrease in revenues from
leased-and-operated hotels was mainly due to a decrease in
RevPAR.
Revenues from franchised-and-managed hotels increased 6.8% year
over year to RMB 282.3 million
(US$44.4 million) for the third
quarter of 2015. The year-over-year increase in revenues from
franchised-and-managed hotels was mainly driven by an increase in
the number of hotels and hotel rooms in operation, although
partially offset by a decrease in RevPAR.
Total Operating
Costs and Expenses / Income from Operations
|
|
|
|
(RMB/USD in
Millions)
|
Third Quarter
2015
|
|
|
|
|
Adjusted
|
|
GAAP
Results
|
Non-GAAP
Results*
|
|
RMB
|
USD
|
Vpts
|
RMB
|
USD
|
Vpts
|
Leased-and-Operated
Hotel Costs
|
1,338.2
|
210.5
|
3.0pts
|
1,335.5
|
210.1
|
3.0pts
|
Personnel Costs of
Franchised-and-Managed Hotels
|
82.6
|
13.0
|
0.7pts
|
79.8
|
12.6
|
0.7pts
|
Sales and Marketing
Expenses
|
25.6
|
4.0
|
-0.3pts
|
25.5
|
4.0
|
-0.3pts
|
General and
Administrative Expenses
|
82.7
|
13.0
|
0.1pts
|
63.9
|
10.1
|
-0.2pts
|
Total Operating Costs
and Expenses
|
1,529.1
|
240.6
|
3.5pts
|
1,504.8
|
236.8
|
3.3pts
|
Income from
Operations
|
213.8
|
33.6
|
-3.6pts
|
238.0
|
37.5
|
-3.4pts
|
*Adjusted Non-GAAP
results exclude share-based compensation expenses, integration
costs and expenses related to going-private activities.
|
Note: "Vpts"
represents year-over-year change in percentage points of total
revenues
|
Total operating costs and expenses were RMB 1.53 billion (US$240.6
million) for the third quarter of 2015, representing 82.4%
of total revenues for the quarter. Total operating costs and
expenses excluding any share-based compensation expenses,
integration costs and expenses related to going-private activities
(non-GAAP) for the third quarter of 2015 were 81.1% of total
revenues, compared to 77.8% in the same period a year ago.
- Total leased-and-operated hotel costs were RMB 1.34 billion (US$210.5
million) for the third quarter of 2015, representing 85.0%
of the leased-and-operated hotel revenues for the quarter, compared
to 80.4% in the same period a year ago. Total leased-and-operated
hotel costs excluding any share-based compensation expenses and
integration costs (non-GAAP) were 84.9% of the leased-and-operated
hotel revenues in the third quarter of 2015, compared to 80.2% in
the same period a year ago.
Pre-opening cost was RMB 14.1 million (US$2.2
million) for the third quarter of 2015, compared to
RMB 13.3 million in the third quarter
of 2014.
The year-over-year increase in
total leased-and-operated hotel costs as a percentage of
leased-and-operated hotel revenues for the third quarter of 2015
was mainly due to a decrease in RevPAR which resulted in a lower
revenue base per hotel while a significant portion of the hotel
costs was fixed.
- Personnel costs of franchised-and-managed hotels were
RMB 82.6 million (US$13.0 million) for the third quarter of 2015,
representing 29.3% of the franchised-and-managed hotel revenues for
the third quarter of 2015, compared to 26.9% in the same period a
year ago. Franchised-and-managed hotels personnel costs excluding
share-based compensation expenses (non-GAAP) were 28.3% of
franchised-and-managed hotel revenues in the third quarter of 2015,
compared to 25.9% in the same period of 2014. The year-over-year
increase in personnel costs of franchised-and-managed hotels as a
percentage of franchised-and-managed hotel revenues for the third
quarter of 2015 was mainly due to a decrease in RevPAR, which
resulted in a lower revenue base per hotel.
- Sales and marketing expenses were RMB 25.6 million (US$4.0
million) for the third quarter of 2015, representing 1.4% of
total revenues for the quarter, compared to 1.7% in the same period
a year ago. Sales and marketing expenses excluding share-based
compensation expenses (non-GAAP) were 1.4% of total revenues for
the third quarter of 2015, compared to 1.7% in the same period of
2014. The year-over-year decrease in sales and marketing expenses
as a percentage of total revenues for the third quarter of 2015 was
mainly due to the timing of certain marketing activities and
improved marketing efficiency.
- General and administrative expenses were RMB 82.7 million (US$13.0
million) for the third quarter of 2015, representing 4.5% of
total revenues, compared to 4.3% in the same period a year ago.
General and administrative expenses excluding share-based
compensation expenses, integration costs and expenses related to
going-private activities (non-GAAP) were 3.4% of total revenues for
the third quarter of 2015, compared to 3.6% in the same period of
2014. The year-over-year decrease in general and administrative
expenses as a percentage of total revenue was driven by continued
effective cost control.
Income from Operations was RMB 213.8 million (US$33.6
million) for the third quarter of 2015, compared to income
from operations of RMB 284.5 million
in the same period a year ago. Income from operations excluding
share-based compensation expenses, integration costs and expenses
related to going-private activities (non-GAAP) for the third
quarter of 2015 was RMB 238.0 million
(US$37.5 million), or 12.8% of total
revenues, compared to RMB 304.3
million, or 16.2% of total revenues, in the same period of
2014. The year-over-year decrease in income from operations margin
for the quarter was mainly due to lower revenue base per hotel.
EBITDA
(non-GAAP)
|
|
|
|
|
|
|
|
|
(RMB/USD in
Millions)
|
Third Quarter
2015
|
|
Third Quarter
2014
|
|
|
RMB
|
USD
|
%Rev
|
V%
|
|
RMB
|
USD
|
%Rev
|
EBITDA
(Non-GAAP)
|
429.0
|
67.5
|
23.1%
|
-20.4%
|
|
538.8
|
84.8
|
28.7%
|
|
Foreign Exchange
Loss, Net
|
35.0
|
5.5
|
1.9%
|
|
|
0.8
|
0.1
|
0.0%
|
|
Share-Based
Compensation
|
17.9
|
2.8
|
1.0%
|
|
|
18.1
|
2.8
|
1.0%
|
|
Expenses Related to
Going-Private Activities
|
4.8
|
0.8
|
0.3%
|
|
|
-
|
-
|
-
|
|
Integration
Costs
|
1.6
|
0.3
|
0.1%
|
|
|
1.7
|
0.3
|
0.1%
|
|
Gain on Waived
Liability Related with Motel Acquisition
|
-
|
-
|
-
|
|
|
-11.9
|
-1.9
|
-0.6%
|
|
Gain on Buy-Back of
Convertible
Notes
|
-
|
-
|
-
|
|
|
-0.7
|
-0.1
|
0.0%
|
|
Loss/(Gain) on Change
in Fair Value of Convertible Notes
|
0.6
|
0.1
|
0.0%
|
|
|
-29.3
|
-4.6
|
-1.6%
|
Adjusted EBITDA
(Non-GAAP)
|
488.9
|
76.9
|
26.3%
|
-5.5%
|
|
517.6
|
81.4
|
27.6%
|
Note: "%Rev"
represents amount as a percentage of total revenues
|
|
|
|
|
|
"V%" represents year-over-year percentage change in
amounts
|
|
|
|
|
|
Net Income
Attributable to Ordinary Shareholders
|
|
|
|
|
|
(RMB/USD in
Millions)
|
Third Quarter
2015
|
|
Third Quarter
2014
|
|
|
RMB
|
USD
|
%Rev
|
V%
|
|
RMB
|
USD
|
%Rev
|
Net Income
Attributable to Ordinary Shareholders (GAAP)
|
145.6
|
22.9
|
7.8%
|
-40.7%
|
|
245.5
|
38.6
|
13.1%
|
|
Foreign Exchange
Loss, Net
|
35.0
|
5.5
|
1.9%
|
|
|
0.8
|
0.1
|
0.0%
|
|
Share-Based
Compensation
|
17.9
|
2.8
|
1.0%
|
|
|
18.1
|
2.8
|
1.0%
|
|
Expenses Related to
Going-Private Activities
|
4.8
|
0.8
|
0.3%
|
|
|
-
|
-
|
-
|
|
Integration
Costs
|
1.6
|
0.3
|
0.1%
|
|
|
1.7
|
0.3
|
0.1%
|
|
Gain on Waived
Liability Related with Motel
Acquisition
|
-
|
-
|
-
|
|
|
-11.9
|
-1.9
|
-0.6%
|
|
Gain on Buy-Back of
Convertible Notes
|
-
|
-
|
-
|
|
|
-0.7
|
-0.1
|
0.0%
|
|
Loss/(Gain) on Change
in Fair Value of Convertible Notes
|
0.6
|
0.1
|
0.0%
|
|
|
-29.3
|
-4.6
|
-1.6%
|
Adjusted net income
attributable to ordinary shareholders (Non-GAAP)
|
205.5
|
32.3
|
11.1%
|
-8.4%
|
|
224.3
|
35.3
|
12.0%
|
Note: "%Rev"
represents amount as a percentage of total revenues
|
|
|
|
|
|
|
|
|
"V%" represents
year-over-year percentage change in amounts
|
|
|
|
|
|
|
|
|
Adjusted Net Income Attributable to Ordinary Shareholders
(Non–GAAP) decreased year over year by 8.4% to RMB 205.5 million (US$32.3
million) for the third quarter of 2015, representing 11.1%
of total revenues compared to 12.0% in the same period a year ago.
The year-over-year decrease in adjusted net margin (non-GAAP)[1]was
mainly due to a decrease in adjusted income from operations margin
(non-GAAP)[2], while partially offset by higher interest income and
lower interest expense.
Basic and Diluted Earnings Per Share / Earnings Per
ADS
|
Third Quarter
2015
|
|
Ordinary
Share
|
ADS Share
|
|
RMB
|
USD
|
RMB
|
USD
|
Basic
|
1.51
|
0.24
|
3.02
|
0.48
|
Diluted
|
1.51
|
0.24
|
3.02
|
0.48
|
|
|
|
|
|
Adjusted Basic
(Non-GAAP)
|
2.13
|
0.34
|
4.26
|
0.67
|
Adjusted Diluted
(Non-GAAP)
|
2.05
|
0.32
|
4.10
|
0.65
|
Cash Flow
Net operating cash inflow for the third quarter of 2015 was
RMB 549.7 million (US$86.5 million), compared to RMB 476.4 million in the same period of 2014, due
to better working capital management. Capitalized expenditures for
the third quarter of 2015 were RMB 125.5
million (US$19.8 million),
while related cash paid for capital expenditures during the quarter
was RMB 129.2 million (US$20.3 million).
Balance Sheet
As of September 30, 2015, Homeinns
Hotel Group had cash and cash equivalents of RMB 1,312.3 million (US$206.5 million). The outstanding balance of
convertible notes issued in December
2010 (measured at fair value) was RMB
997.2 million (US$156.9
million).
Outlook for Fourth Quarter
2015
Homeinns Hotel Group remains committed to its target of
opening no fewer than 400 new hotels in the course of 2015, with
approximately 25% as mid-scale hotels.
The company expects the total revenues in the fourth quarter of
2015 to be in the range of RMB 1,635
million and RMB 1,655
million.
This forecast reflects the Company's current and preliminary
views, and remains subject to change.
This announcement contains translations of certain RMB amounts
into U.S. dollars solely for the convenience of the reader. Unless
otherwise noted, all translations from RMB to U.S. dollars are made
at a rate of RMB 6.3556 to US$1.00,
the noon buying rate for September 30,
2015 set forth in the H.10 statistical release of the
Federal Reserve Board.
Conference Call Information
Management will hold an earnings conference call at 8 PM U.S. Eastern Time on Monday, November 9, 2015 (9 AM Beijing/Hong Kong Time on Tuesday, November 10, 2015).
Dial-in details for the earnings conference call are as
follows:
U.S.:
|
1855 298 3404 or +1
631 5142 526
|
China
mainland:
|
4001 200 539
|
Hong
Kong:
|
800 905 927 or +852
5808 3202
|
U.K.:
|
0800 015 9725 or +44
(0) 20 3078 7622
|
Australia:
|
1800 801 825 or +61 2
8524 5042
|
Taiwan:
|
0080 161 5189 or +886
2 7708 3282
|
International:
|
+852 5808 3202
|
|
|
Passcode for all
regions:
|
Homeinns
|
A replay of the conference call may be accessed by phone at the
following numbers until the end of November
16, 2015 U.S. Eastern Time.
U.S.:
|
1866 846 0868
|
China
mainland:
|
4001 842 240
|
Hong
Kong:
|
800 966 697
|
U.K.:
|
0800 169 7301
|
Australia:
|
+61 2 9641 7900
|
International:
|
1800 008 585
|
|
|
Replay Passcode:
|
7551909
|
Live and archived webcasts of this conference call will be
available at http://english.homeinns.com.
About Homeinns Hotel Group
Homeinns Hotel Group is a leading economy hotel chain in
China based on number of hotels
and hotel rooms as well as geographic coverage of the hotel chain.
Since the Company commenced operations in 2002, it has built
Homeinn as one of the best-known economy hotel brands in
China. In October of 2011, the
Company acquired Motel 168, another well-known hotel chain in
China, as its second economy hotel
brand. Homeinns Hotel Group aims to offer a consistent product and
high-quality services to primarily serve the fast growing
population of value-conscious individual business and leisure
travelers who demand clean, comfortable and convenient lodging.
Homeinns Hotel Group's ADSs, each of which represents two ordinary
shares, are currently trading on the NASDAQ Global Select Market
under the symbol "HMIN." For more information about Homeinns Hotel
Group, please visit http://english.homeinns.com.
Safe Harbor
This announcement contains forward-looking statements. These
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," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Any statements in
this press release that are not historical facts are
forward-looking statements that involve factors, risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Such factors and
risks include our anticipated growth strategies; our future results
of operations and financial condition; the economic conditions of
China; the regulatory environment
in China; our ability to attract
customers and leverage our brands; trends and competition in the
lodging industry; the expected growth of the lodging market in
China; and other factors and risks
detailed in our filings with the Securities and Exchange
Commission. This press release also contains statements or
projections that are based upon information available to the
public, as well as other information from sources which management
believes to be reliable, but it is not guaranteed by us to be
accurate, nor does it purport to be complete. We undertake no
obligation to update or revise to the public any forward-looking
statements, whether as a result of new information, future events
or otherwise, unless required by applicable law.
Non-GAAP Financial Measures
To supplement Homeinns Hotel Group's unaudited consolidated
financial results presented in accordance with U.S. GAAP, Homeinns
Hotel Group uses the following non-GAAP measures:
(a) total operating costs and expenses
excluding share-based compensation expenses and acquisition and
integration costs and expenses related to going-private
activities
(b) total leased-and-operated hotel costs
excluding share-based compensation expenses and integration
costs
(c) personnel costs of franchised-and-managed
hotels excluding share-based compensation expenses
(d) sales and marketing expenses excluding
share-based compensation expenses
(e) general and administrative expenses
excluding share-based compensation expenses and acquisition and
integration costs and expenses related to going-private
activities
(f) income from operations excluding
share-based compensation expenses and acquisition and integration
costs and expenses related to going-private activities
(g) adjusted net income attributable to
shareholders excluding any share-based compensation expenses,
foreign exchange gain or loss, acquisition and integration cost,
upfront fee amortization of term loan, gain or loss from fair value
change of convertible notes and interest swap derivatives and other
non-operating expenses and expenses related to going-private
activities
(h) adjusted basic and diluted earnings per
ADS and per share excluding foreign exchange gain or loss,
share-based compensation expenses, gain on buy-back of convertible
bonds, issuance costs for convertible notes, gain or loss from fair
value change of convertible notes, acquisition and integration
cost, non-operating expenses and upfront fee amortization of term
loan, and expenses related to going-private activities
(i) adjusted EBITDA excluding
foreign exchange gain or loss, share-based compensation expenses,
gain on buy-back of convertible bonds, issuance costs for
convertible notes, gain or loss from fair value change of
convertible notes, acquisition and integration costs, non-operating
expenses and upfront fee amortization of term loan and expenses
related to going-private activities
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
U.S. GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Reconciliations of GAAP
and non-GAAP results" set forth at the end of this press
release.
Homeinns Hotel Group believes that, used in conjunction with
GAAP financial measures, these non-GAAP financial measures provide
meaningful supplemental information regarding the Company's
performance, and both management and investors benefit from
referring to these non-GAAP financial measures in assessing the
Company's performance and when planning and forecasting future
periods. Management believes that EBITDA, defined as earnings
before interest, income tax expense, depreciation and amortization,
is a useful financial metric to assess Homeinns Hotel Group's
operating and financial performance before the impact of investing
and financing transactions and income taxes. In addition,
management believes that EBITDA is widely used by other companies
in the lodging industry and may be used as an analysis tool by both
management and investors to measure and compare Homeinns Hotel
Group's operational and financial performance with industry
peers.
One of the limitations of using non-GAAP income from operations,
EBITDA, adjusted EBITDA and non-GAAP net income attributable to
shareholders is that they do not include all items that impact
Homeinns Hotel Group's net income (loss) for the period. These
non-GAAP measures exclude share-based compensation expenses,
foreign exchange gain or loss and gain or loss from fair value
change of convertible notes, which have been and will continue to
be a significant recurring expense in Homeinns Hotel Group's
business. In addition, Homeinns Hotel Group's EBITDA and adjusted
EBITDA may not be comparable to EBITDA or similarly titled measures
utilized by other companies since such other companies may not
calculate EBITDA in the same manner as Homeinns Hotel Group does.
Management compensates for this and other limitations by providing
specific information regarding the GAAP amounts excluded from each
non-GAAP measure. Homeinns Hotel Group computes the non-GAAP
financial measures using the same consistent method from quarter to
quarter. Reconciliations of GAAP and non-GAAP results are included
at the end of this press release. The non-GAAP adjustment items do
not include the tax impact.
The presentation of EBITDA and adjusted EBITDA should not be
construed as an indication that Homeinns Hotel Group's future
results will be unaffected by other charges and gains Homeinns
Hotel Group considers to be outside the ordinary course of its
business.
Homeinns Hotel Group completed its acquisition of 100% equity
interest in Motel 168, or Motel, and took control of Motel
effective on October 1, 2011.
Homeinns Hotel Group had consolidated Motel's operating and
financial results since October 1,
2011. By the third quarter of 2013, Homeinns Hotel Group had
substantially completed Motel's integration and ceased to present
separate operating metrics and revenues for Motel.
For investor and media inquiries, please contact:
Mingjia Ding
Homeinns Hotel Group
Tel: +86-21-3337-3333*3870
Email: mjding@homeinns.com
Cara O'Brien
FTI Consulting
Tel: +852-3768-4537
Email: cara.obrien@fticonsulting.com
[1]"Adjusted net margin rate
(non-GAAP)" is defined as adjusted net income (non-GAAP) as a
percentage of total revenues.
|
[2]"Adjusted income from
operations margin rate (non-GAAP)" is defined as income from
operations excluding share-based compensation expenses, integration
costs and expenses related to going-private activities (non-GAAP)
as a percentage of total revenues.
|
Homeinns Hotel
Group
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
September 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
949,690
|
|
1,312,278
|
|
206,476
|
Restricted
cash
|
|
12,726
|
|
9,663
|
|
1,520
|
Accounts receivable,
net
|
|
95,501
|
|
135,429
|
|
21,309
|
Receivables from
related parties
|
|
3,476
|
|
4,030
|
|
634
|
Consumables
|
|
44,446
|
|
32,868
|
|
5,172
|
Prepayments and other
current assets
|
|
171,703
|
|
196,327
|
|
30,890
|
Deferred tax
assets
|
|
129,685
|
|
128,630
|
|
20,239
|
|
|
|
|
|
|
|
Total current
assets
|
|
1,407,227
|
|
1,819,225
|
|
286,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
|
|
11,709
|
|
14,778
|
|
2,325
|
Property and
equipment, net
|
|
4,000,041
|
|
3,797,253
|
|
597,466
|
Goodwill
|
|
2,323,241
|
|
2,323,241
|
|
365,542
|
Intangible assets,
net
|
|
1,126,636
|
|
1,089,135
|
|
171,366
|
Other
assets
|
|
90,995
|
|
107,658
|
|
16,939
|
Non-current deferred
tax assets
|
|
434,847
|
|
466,591
|
|
73,414
|
|
|
|
|
|
|
|
Total
assets
|
|
9,394,696
|
|
9,617,881
|
|
1,513,292
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
86,949
|
|
103,909
|
|
16,349
|
Payables to related
parties
|
|
4,166
|
|
18,128
|
|
2,852
|
Financial liability,
current portion2
|
|
1,029,577
|
|
997,229
|
|
156,906
|
Salaries and welfare
payable
|
|
228,127
|
|
235,480
|
|
37,051
|
Income tax
payable
|
|
117,830
|
|
86,131
|
|
13,552
|
Other taxes
payable
|
|
34,074
|
|
41,020
|
|
6,454
|
Deferred
revenues
|
|
225,417
|
|
240,357
|
|
37,818
|
Other unpaid and
accruals
|
|
255,460
|
|
269,111
|
|
42,342
|
Other
payables
|
|
742,853
|
|
776,592
|
|
122,192
|
Deferred tax
liability
|
|
60,764
|
|
55,711
|
|
8,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
2,785,217
|
|
2,823,668
|
|
444,282
|
|
|
|
|
|
|
|
Deferred
rental
|
|
705,284
|
|
686,435
|
|
108,005
|
Deferred
revenues
|
|
51,289
|
|
49,931
|
|
7,856
|
Deposits due to
franchisees
|
|
144,892
|
|
152,423
|
|
23,982
|
Other long term
payables
|
|
13,018
|
|
8,653
|
|
1,361
|
Unfavorable lease
liabilities
|
|
331,282
|
|
304,028
|
|
47,836
|
Deferred tax
liabilities
|
|
292,575
|
|
278,057
|
|
43,750
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,323,557
|
|
4,303,195
|
|
677,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary shares
(US$0.005 par value;
200,000,000 shares authorized,
95,703,960 and 96,358,650 shares issued
and outstanding as of December 31, 2014
and September 30, 2015, respectively)
|
|
3,698
|
|
3,719
|
|
585
|
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
3,191,076
|
|
3,259,755
|
|
512,895
|
Statutory
reserves
|
|
256,013
|
|
256,013
|
|
40,281
|
|
|
|
|
|
|
|
Retained
earnings
|
|
1,604,246
|
|
1,784,336
|
|
280,750
|
|
|
|
|
|
|
|
Less: Treasury stock
(0 and 37,696 shares
as of December 31, 2014
and September 30 2015, respectively)
|
|
-
|
|
(2,759)
|
|
(434)
|
|
|
|
|
|
|
|
Total Home Inns
shareholders' equity
|
|
5,055,033
|
|
5,301,064
|
|
834,077
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
16,106
|
|
13,622
|
|
2,143
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
5,071,139
|
|
5,314,686
|
|
836,220
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
9,394,696
|
|
9,617,881
|
|
1,513,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.3556 on
September 30, 2015, representing the certificated exchange rate
published by the Federal Reserve Board.
|
Note 2:Financial
liabilities represent convertible notes measured at fair
value.
|
Homeinns Hotel
Group
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
September 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Leased-and-operated hotels
|
|
1,612,027
|
|
1,410,555
|
|
1,573,685
|
|
247,606
|
Franchised-and-managed hotels
|
|
264,358
|
|
256,728
|
|
282,257
|
|
44,411
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
1,876,385
|
|
1,667,283
|
|
1,855,942
|
|
292,017
|
Less: Business
tax and related surcharges
|
|
(111,943)
|
|
(98,390)
|
|
(108,934)
|
|
(17,140)
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
1,764,442
|
|
1,568,893
|
|
1,747,008
|
|
274,877
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
Leased-and-operated hotel costs –
|
|
|
|
|
|
|
|
Rents and
utilities
|
|
(539,156)
|
|
(522,581)
|
|
(554,722)
|
|
(87,281)
|
Personnel
costs
|
|
(279,158)
|
|
(274,804)
|
|
(293,685)
|
|
(46,209)
|
Depreciation
and amortization
|
|
(188,102)
|
|
(194,646)
|
|
(200,365)
|
|
(31,526)
|
Consumables,
food and beverage
|
|
(108,793)
|
|
(97,175)
|
|
(120,355)
|
|
(18,937)
|
Others
|
|
(180,919)
|
|
(167,466)
|
|
(169,037)
|
|
(26,597)
|
|
|
|
|
|
|
|
|
Total leased-and-operated hotel costs
|
|
(1,296,128)
|
|
(1,256,672)
|
|
(1,338,164)
|
|
(210,550)
|
|
|
|
|
|
|
|
|
Personnel costs of Franchised-and-managed hotels
|
|
(71,131)
|
|
(65,966)
|
|
(82,570)
|
|
(12,992)
|
Sales and marketing expenses
|
|
(31,375)
|
|
(25,863)
|
|
(25,626)
|
|
(4,032)
|
General and administrative expenses
|
|
(81,457)
|
|
(82,735)
|
|
(82,733)
|
|
(13,017)
|
|
|
|
|
|
|
|
|
Total
operating costs and expenses
|
|
(1,480,091)
|
|
(1,431,236)
|
|
(1,529,093)
|
|
(240,591)
|
|
|
|
|
|
|
|
|
Other
income/(loss)
|
|
139
|
|
(9,826)
|
|
(4,165)
|
|
(655)
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
operations
|
|
284,490
|
|
127,831
|
|
213,750
|
|
33,631
|
|
|
|
|
|
|
|
|
Interest
income
|
|
2,864
|
|
4,055
|
|
6,610
|
|
1,040
|
Interest
expenses
|
|
(11,040)
|
|
(5,456)
|
|
(5,303)
|
|
(834)
|
|
|
|
|
|
|
|
|
|
Loss from
equity investment
|
|
(10)
|
|
(920)
|
|
(163)
|
|
(26)
|
Gain/(loss) on
change in fair value of convertible notes
|
|
29,304
|
|
(17,016)
|
|
(570)
|
|
(90)
|
Gain/(loss) on
buy-back of convertible notes
|
|
650
|
|
(1,591)
|
|
-
|
|
-
|
Non-operating
income
|
|
27,073
|
|
10,575
|
|
44,146
|
|
6,946
|
Foreign
exchange (loss)/gain, net
|
|
(841)
|
|
3,914
|
|
(35,012)
|
|
(5,509)
|
|
|
|
|
|
|
|
|
Income
before income tax expenses and noncontrolling
interests
|
|
332,490
|
|
121,392
|
|
223,458
|
|
35,158
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(84,384)
|
|
(48,802)
|
|
(74,270)
|
|
(11,686)
|
|
|
|
|
|
|
|
|
Net
income
|
|
248,106
|
|
72,590
|
|
149,188
|
|
23,472
|
|
|
|
|
|
|
|
|
Less:Net income
attributable to noncontrolling
interests
|
|
(2,594)
|
|
(528)
|
|
(3,590)
|
|
(565)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
|
|
245,512
|
|
72,062
|
|
145,598
|
|
22,907
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
-- Basic
|
|
2.57
|
|
0.75
|
|
1.51
|
|
0.24
|
|
|
|
|
|
|
|
|
-- Diluted
|
|
2.15
|
|
0.75
|
|
1.51
|
|
0.24
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
-- Basic
|
|
95,556
|
|
96,215
|
|
96,347
|
|
96,347
|
|
|
|
|
|
|
|
|
-- Diluted
|
|
103,025
|
|
96,215
|
|
96,347
|
|
96,347
|
|
|
|
|
|
|
|
|
Share-based
compensation expense was included in the statement of operations as
follows:
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs – Personnel costs
|
|
1,525
|
|
1,511
|
|
1,349
|
|
212
|
Personnel costs of
Franchised-and-managed hotels
|
|
2,679
|
|
3,057
|
|
2,727
|
|
429
|
Sales and marketing
expenses
|
|
246
|
|
151
|
|
129
|
|
20
|
General and
administrative expenses
|
|
13,663
|
|
11,877
|
|
13,684
|
|
2,153
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.3556
|
|
|
on September 30,
2015, representing the certificated exchange rate published by the
Federal Reserve Board.
|
|
Homeinns Hotel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30, 2015
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Expenses related
to
going private activities
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(1,338,164)
|
|
72.1%
|
|
1,349
|
|
-
|
|
1,295
|
|
0.1%
|
|
(1,335,520)
|
|
72.0%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(82,570)
|
|
4.4%
|
|
2,727
|
|
-
|
|
-
|
|
0.1%
|
|
(79,843)
|
|
4.3%
|
Sales and marketing
expenses
|
|
(25,626)
|
|
1.4%
|
|
129
|
|
-
|
|
-
|
|
0.0%
|
|
(25,497)
|
|
1.4%
|
General and
administrative expenses
|
|
(82,733)
|
|
4.5%
|
|
13,684
|
|
4,797
|
|
317
|
|
1.0%
|
|
(63,935)
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(1,529,093)
|
|
82.4%
|
|
17,889
|
|
-
|
|
1,612
|
|
1.3%
|
|
(1,504,795)
|
|
81.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
213,750
|
|
11.5%
|
|
17,889
|
|
-
|
|
1,612
|
|
1.3%
|
|
238,048
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September 30, 2015
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Expenses related
to
going private activities
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
US$
'000
|
|
|
|
US$
'000
|
|
US$
'000
|
|
US$
'000
|
|
|
|
US$
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(210,550)
|
|
72.1%
|
|
212
|
|
-
|
|
204
|
|
0.1%
|
|
(210,134)
|
|
72.0%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(12,992)
|
|
4.4%
|
|
429
|
|
-
|
|
-
|
|
0.1%
|
|
(12,563)
|
|
4.3%
|
Sales and marketing
expenses
|
|
(4,032)
|
|
1.4%
|
|
20
|
|
-
|
|
-
|
|
0.0%
|
|
(4,012)
|
|
1.4%
|
General and
administrative expenses
|
|
(13,017)
|
|
4.5%
|
|
2,153
|
|
755
|
|
50
|
|
1.0%
|
|
(10,059)
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(240,591)
|
|
82.4%
|
|
2,814
|
|
-
|
|
254
|
|
1.3%
|
|
(236,768)
|
|
81.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
33,631
|
|
11.5%
|
|
2,814
|
|
-
|
|
254
|
|
1.3%
|
|
37,454
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2015
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Expenses related
to
going private activities
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(1,256,672)
|
|
75.4%
|
|
1,511
|
|
-
|
|
1,322
|
|
0.2%
|
|
(1,253,839)
|
|
75.2%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(65,966)
|
|
4.0%
|
|
3,057
|
|
-
|
|
-
|
|
0.2%
|
|
(62,909)
|
|
3.8%
|
Sales and marketing
expenses
|
|
(25,863)
|
|
1.6%
|
|
151
|
|
-
|
|
-
|
|
0.0%
|
|
(25,712)
|
|
1.5%
|
General and
administrative expenses
|
|
(82,735)
|
|
5.0%
|
|
11,877
|
|
-
|
|
317
|
|
0.7%
|
|
(70,541)
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(1,431,236)
|
|
85.8%
|
|
16,596
|
|
-
|
|
1,639
|
|
1.1%
|
|
(1,413,001)
|
|
84.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
127,831
|
|
7.7%
|
|
16,596
|
|
-
|
|
1,639
|
|
1.1%
|
|
146,066
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
September, 2014
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Expenses related
to
going private activities
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(1,296,128)
|
|
69.1%
|
|
1,525
|
|
-
|
|
1,427
|
|
0.2%
|
|
(1,293,176)
|
|
68.9%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(71,131)
|
|
3.8%
|
|
2,679
|
|
-
|
|
-
|
|
0.1%
|
|
(68,452)
|
|
3.6%
|
Sales and marketing
expenses
|
|
(31,375)
|
|
1.7%
|
|
246
|
|
-
|
|
-
|
|
0.0%
|
|
(31,129)
|
|
1.7%
|
General and
administrative expenses
|
|
(81,457)
|
|
4.3%
|
|
13,663
|
|
-
|
|
317
|
|
0.7%
|
|
(67,477)
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(1,480,091)
|
|
78.9%
|
|
18,113
|
|
-
|
|
1,744
|
|
1.1%
|
|
(1,460,234)
|
|
77.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
284,490
|
|
15.2%
|
|
18,113
|
|
-
|
|
1,744
|
|
1.1%
|
|
304,347
|
|
16.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.3556
|
|
|
|
|
|
|
|
on September 30,
2015, representing the certificated exchange rate published by the
Federal Reserve Board.
|
|
|
|
|
|
|
|
|
|
Homeinns Hotel
Group
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
September,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders (GAAP)
|
|
245,512
|
|
72,062
|
|
145,598
|
|
22,907
|
Foreign exchange
loss/(gain), net
|
|
841
|
|
(3,914)
|
|
35,012
|
|
5,509
|
Share-based
compensation
|
|
18,113
|
|
16,596
|
|
17,889
|
|
2,814
|
Expenses related to
going private activities
|
|
-
|
|
-
|
|
4,797
|
|
755
|
Integration
cost
|
|
1,744
|
|
1,639
|
|
1,612
|
|
254
|
(Gain)/loss on
buy-back of convertible notes
|
|
(650)
|
|
1,591
|
|
-
|
|
-
|
Gain on waived
liability related with Motel acquisition
|
|
(11,919)
|
|
-
|
|
-
|
|
-
|
(Gain)/loss on change
in fair value of convertible notes
|
|
(29,304)
|
|
17,016
|
|
570
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to ordinary shareholders
(Non-GAAP)
|
|
224,337
|
|
104,990
|
|
205,478
|
|
32,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
September,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Earnings per share
(GAAP)
|
|
|
|
|
|
|
|
-- Basic
|
|
2.57
|
|
0.75
|
|
1.51
|
|
0.24
|
|
|
|
|
|
|
|
|
-- Diluted
|
|
2.15
|
|
0.75
|
|
1.51
|
|
0.24
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
|
-- Basic
|
|
95,556
|
|
96,215
|
|
96,347
|
|
96,347
|
|
|
|
|
|
|
|
|
|
-- Diluted
|
|
103,025
|
|
96,215
|
|
96,347
|
|
96,347
|
Adjusted earnings
per share (Non-GAAP)
|
|
|
|
|
|
|
|
-- Basic
|
|
2.35
|
|
1.09
|
|
2.13
|
|
0.34
|
|
|
|
|
|
|
|
|
-- Diluted
|
|
2.23
|
|
1.07
|
|
2.05
|
|
0.32
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
|
-- Basic
|
|
95,556
|
|
96,215
|
|
96,347
|
|
96,347
|
|
|
|
|
|
|
|
|
|
-- Diluted
|
|
103,025
|
|
102,917
|
|
102,702
|
|
102,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.3556
on September 30,
2015, representing the certificated exchange rate published by the
Federal Reserve Board.
|
|
Note 2: The non-GAAP
adjustment items do not include the tax impact.
|
|
|
|
|
|
|
Homeinns Hotel
Group
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
September 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
248,106
|
|
72,590
|
|
149,188
|
|
23,472
|
Interest
income
|
|
(2,864)
|
|
(4,055)
|
|
(6,610)
|
|
(1,040)
|
Interest
expenses
|
|
11,040
|
|
5,456
|
|
5,303
|
|
834
|
Income tax
expense
|
|
84,384
|
|
48,802
|
|
74,270
|
|
11,686
|
Depreciation and
amortization
|
|
198,086
|
|
200,383
|
|
206,823
|
|
32,542
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
|
538,752
|
|
323,176
|
|
428,974
|
|
67,494
|
|
|
|
|
|
|
|
|
|
Foreign exchange
loss/(gain), net
|
|
841
|
|
(3,914)
|
|
35,012
|
|
5,509
|
Share-based
compensation
|
|
18,113
|
|
16,596
|
|
17,889
|
|
2,814
|
Expenses related to
going private activities
|
|
-
|
|
-
|
|
4,797
|
|
755
|
Integration
cost
|
|
1,744
|
|
1,639
|
|
1,612
|
|
254
|
Gain on waived
liability related with Motel acquisition
|
|
(11,919)
|
|
-
|
|
-
|
|
-
|
(Gain)/loss on
buy-back of convertible notes
|
|
(650)
|
|
1,591
|
|
-
|
|
-
|
(Gain)/loss on change
in fair value of convertible notes
|
|
(29,304)
|
|
17,016
|
|
570
|
|
90
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
|
517,577
|
|
356,104
|
|
488,854
|
|
76,916
|
|
|
|
|
|
|
|
|
|
%of total
revenue
|
|
27.6%
|
|
21.4%
|
|
26.3%
|
|
26.3%
|
|
|
|
|
|
|
|
|
|
Note 1: The
"Depreciation and amortization expense" includes the depreciation
and amortization expenses of the Group.
|
|
The depreciation and
amortization expenses of all leased-and-operated hotels are
included in "Operating costs and expenses".
|
The depreciation and
amortization expenses of administrative long-term assets are
included in "General and administrative expenses".
|
Home Inns &
Hotels Management Inc.
|
|
|
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
As of and for the
quarter ended
|
|
|
September 30,
2014
|
|
June 30,
2015
|
|
September 30,
2015
|
|
|
Group
|
|
Group
|
|
Group
|
Total Hotels in
operation:
|
|
2,496
|
|
2,750
|
|
2,787
|
Leased-and-operated
hotels
|
|
910
|
|
915
|
|
917
|
Franchised-and-managed
hotels
|
|
1,586
|
|
1,835
|
|
1,870
|
|
|
|
|
|
|
|
Total
rooms
|
|
286,012
|
|
309,414
|
|
311,608
|
|
|
|
|
|
|
|
Occupancy rate (as a
percentage)
|
|
86.7%
|
|
83.3%
|
|
86.6%
|
|
|
|
|
|
|
|
Average daily rate
(in RMB)
|
|
174
|
|
163
|
|
171
|
|
|
|
|
|
|
|
RevPAR (in
RMB)
|
|
151
|
|
136
|
|
148
|
|
|
|
|
|
|
|
Like-for-like
performance for hotels opened for at least 18 months at the end of
the period
|
|
|
As of and for the
quarter ended
|
|
|
|
September 30,
2014
|
|
September 30,
2015
|
|
|
|
|
Group
|
|
Group
|
|
|
Total Hotels in
operation:
|
|
2,131
|
|
2,131
|
|
|
Leased-and-operated
hotels
|
|
866
|
|
866
|
|
|
Franchised-and-managed
hotels
|
|
1,265
|
|
1,265
|
|
|
|
|
|
|
|
|
|
Total
rooms
|
|
243,858
|
|
243,858
|
|
|
|
|
|
|
|
|
|
Occupancy rate (as a
percentage)
|
|
88.2%
|
|
87.5%
|
|
|
|
|
|
|
|
|
|
Average daily rate
(in RMB)
|
|
174
|
|
170
|
|
|
|
|
|
|
|
|
|
RevPAR (in
RMB)
|
|
154
|
|
149
|
|
|
|
|
|
|
|
|
|
"Occupancy rate"
refers to the total number of occupied rooms divided by the total
number of available rooms in a given period.
|
"Average daily rate"
refers to total hotel room revenues divided by the total number of
occupied rooms in a given period.
|
"RevPAR" represents
revenue per available room, which is calculated by dividing total
hotel room revenues by the total number of available rooms in a
given period, or by multiplying average daily rates and occupancy
rates in a given period.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/homeinns-hotel-group-reports-third-quarter-2015-financial-results-300174773.html
SOURCE Homeinns