2014

7 Days Group Holdings Limited Announces Unaudited 2013 First Quarter Financial Results - First quarter 2013 net revenues rose 17.5% year-over-year to RMB640.5 million, exceeding guidance.

- 82 net hotels added in first quarter to a total of 1,427 hotels in operation.

- Total transaction value[1], a measure of total room revenue generated from all hotels, reached RMB1,519.9 million in first quarter 2013, an increase of 32.9% year-over-year.

GUANGZHOU, China, May 13, 2013 /PRNewswire/ -- 7 Days Group Holdings Limited ("7 Days Group" or the "Company") (NYSE: SVN), a leading and fast growing national economy hotel chain based in China, today announced its unaudited financial results for the first quarter 2013.

First Quarter 2013 Financial Highlights

  • Total net revenues for the first quarter 2013 increased by 17.5% year-over-year to RMB640.5 million (US$103.1 million) [2].
  • Income from operations for the first quarter 2013 was RMB13.7 million (US$2.2 million), compared to RMB23.3 million in the first quarter 2012. Non-GAAP income from operations for the quarter was RMB20.4 million (US$3.3 million), compared to RMB32.2 million for the same period in 2012. 
  • EBITDA for the first quarter was RMB106.2 million (US$17.1 million), an increase of 0.4% year-over-year from RMB105.8 million for the same period in 2012. Adjusted EBITDA for the quarter was RMB112.9 million (US$18.2 million), a decrease of 1.5% year-over-year. EBITDA margin was 16.6% compared to 19.4% in the same period in 2012. Adjusted EBITDA margin was 17.6%, compared to 21.0% in the prior year period. 
  • Net income attributable to the Company's ordinary shareholders for the quarter was RMB5.4 million (US$0.9 million), compared to RMB19.0 million for the same period in 2012. Non-GAAP net income attributable to the Company's ordinary shareholders for the quarter was RMB12.1 million (US$2.0 million), representing a year-over-year decrease of 56.4%.
  • Basic and diluted earnings per ADS[3] were RMB0.11 (US$0.02) and RMB0.11 (US$0.02) respectively. Non-GAAP basic and diluted earnings per ADS were RMB0.25 (US$0.04) and RMB0.25 (US$0.04), respectively.
  • Net operating cash inflow was RMB76.6 million (US$12.3 million), compared to RMB93.8 million in the same period in 2012.


[1]

Definition of Total transaction value: total room revenue from leased-and-operated hotels and managed hotels. The metric is highlighted as an indicator of the scale and reach of 7 Days' brands.

[2]

The Company's reporting currency is Renminbi ("RMB"). The translation of amounts from RMB to United States Dollars is solely for the convenience of the reader. RMB amounts included in this press release have been translated into U.S. dollars at the exchange rate of March 31, 2013 as set forth in the H.10 statistical release of the Federal Reserve Board, which was US$1.00 = RMB6.2108. No representation is made that RMB amounts could have been, or could be, converted into U.S. Dollars at that rate or at any other rate on March 31, 2013.

[3]

Each ADS represents 3 of the Company's ordinary shares.

First Quarter 2013 Operational Highlights

  • Added 82 net hotels, comprising 8 net leased-and-operated hotels and 74 net managed hotels in the first quarter 2013.
  • As of March 31, 2013, 7 Days Group had 1,427 hotels in operation, consisting of 500 leased-and-operated hotels and 927 managed hotels, representing a total of 141,091 rooms covering 223 cities.
  • As of March 31, 2013, there were a total of 223 hotels in the pipeline, including 14 leased-and-operated hotels under conversion and 209 managed hotels contracted but not yet opened.
  • For the first quarter 2013, occupancy rates for leased-and-operated hotels, managed hotels and all hotels were 75.0%, 75.5% and 75.3%, respectively, compared to 79.5%, 76.3% and 77.7%, respectively, in the first quarter 2012. The year-over-year decrease in occupancy rates was primarily a result of the impact from the macro economic situation.
  • RevPAR[4] for leased-and-operated hotels in the first quarter 2013 was RMB124.1, compared to RMB128.8 in the same period in 2012. RevPAR for managed hotels for the period was RMB117.1, compared to RMB116.0 for the same period in 2012. 
  • As of March 31, 2013, the number of 7 Days Club members was approximately 56.3 million, a 46% increase from 38.6 million as of March 31, 2012.

[4]

RevPAR represents revenue per available room

Recent Business Developments:

Mr. Yuezhou Lin, 7 Days Group's Chief Executive Officer and Director, commented, "We are pleased to report a strong first quarter with financial results exceeding our guidance, setting a solid start for year 2013. Our outlook for the remainder of 2013 is favorable, as we have built a healthy pipeline and expect to benefit from the increasing economies of scale. We expect to maintain our fast expansion pace, therefore to solidify our market leader position in the economy hotel industry."

First Quarter 2013 Unaudited Financial Results

Gross revenues. Gross revenues for the first quarter 2013 were RMB678.1 million (US$109.2 million), representing a year-over-year increase of 17.4% from RMB577.6 million in the first quarter 2012.

Gross revenues from leased-and-operated hotels. Gross revenues from leased-and-operated hotels for the first quarter 2013 amounted to RMB596.9 million (US$96.1 million), representing a 14.9% increase from RMB519.5 million in the first quarter 2012. 

Gross revenues from managed hotels. Gross revenues from managed hotels for the first quarter 2013 increased by 39.5% to RMB81.2 million (US$13.1 million) from RMB58.2 million in the same period in 2012. During the first quarter 2013, the Company opened 74 net managed hotels. 

Total net revenues. Total net revenues for the first quarter 2013 totaled RMB640.5 million (US$103.1 million), representing a year-over-year increase of 17.5% from RMB545.0 million in first quarter 2012, primarily resulting from the continued growth in the number of hotels in operation.

Hotel operating costs. Hotel operating costs for the first quarter 2013 were RMB556.9 million (US$89.7 million), or 86.9% of total net revenues, compared with 85.6% of total net revenues in the first quarter 2012 and 80.5% of total net revenues in the fourth quarter 2012.

Sales and marketing expenses. Sales and marketing expenses for the first quarter 2013 were RMB16.1 million (US$2.6 million), or 2.5% of total net revenues, compared with 2.3% of total net revenues in the same period of 2012 and 4.6% in the fourth quarter 2012.

General and administrative expenses. General and administrative expenses for the first quarter 2013 were RMB53.8 million (US$8.7 million), or 8.4% of total net revenues, compared to RMB42.8 million, or 7.9% of total net revenues in the same period of 2012, and RMB52.6 million, or 7.6% of total net revenues in the fourth quarter 2012. The increase in general and administrative expenses was primarily due to the expenses associated with the going-private transaction involving the Company. The going-private related expenses incurred during the quarter were RMB11.7 million , about 1.83% of total net revenues.

Accordingly, total operating costs and expenses amounted to RMB626.8 million (US$100.9 million), representing 97.9% of total net revenues, compared to 95.7% of total net revenues in the same period of 2012 and 92.7% in the fourth quarter 2012.

Income from operations. Income from operations for the first quarter 2013 was RMB13.7 million (US$2.2 million), compared to RMB23.3 million in the first quarter 2012 and RMB51.1 million in the fourth quarter 2012. Non-GAAP income from operations was RMB20.4 million (US$3.3 million), compared to RMB32.2 million for the same period of 2012 and RMB56.3 million in the fourth quarter 2012.

EBITDA. EBITDA for the first quarter was RMB106.2 million (US$17.1 million), an increase of 0.4% year-over-year from RMB105.8 million for the same period in 2012. Adjusted EBITDA for the quarter was RMB112.9 million (US$18.2 million), representing a decrease of 1.5% year-over-year from RMB114.6 million for the same period in 2012. EBITDA margin was 16.6% compared to 19.4% in the same period in 2012. Adjusted EBITDA margin was 17.6% compared to 21.0% in the prior year period.

Interest expense. Interest expense for the first quarter 2013 was RMB4.6 million, (US$0.7 million) compared to RMB6.4 million for the same period of 2012 and RMB2.9 million in the fourth quarter 2012.

Income tax expense. Income tax expense for the first quarter 2013 was RMB7.0 million (US$1.1 million), compared to RMB7.3 million in the same period of 2012 and RMB13.8 million in the fourth quarter 2012.

Net income attributable to 7 Days Group Holdings Limited ordinary shareholders. Net income attributable to 7 Days Group Holdings Limited ordinary shareholders was RMB5.4 million (US$0.9 million) in the first quarter 2013, compared to RMB19.0 million in the first quarter 2012 and RMB37.9 million in the fourth quarter 2012.

Non-GAAP net income. Non-GAAP net income was RMB12.1 million (US$2.0 million), compared to Non-GAAP net income of RMB27.8 million for the first quarter 2012 and Non-GAAP net income of RMB43.1 million in the fourth quarter 2012.

Basic and diluted earnings per ADS. Basic and diluted earnings per ADS were RMB0.11 (US$0.02) and RMB0.11 (US$0.02), respectively, for the first quarter 2013, compared to basic and diluted earnings per ADS of RMB0.38 in the first quarter 2012 and basic and diluted earnings per ADS of RMB0.77 in the fourth quarter 2012. Non-GAAP basic and diluted earnings per ADS were RMB0.25 (US$0.04) and RMB0.25 (US$0.04), respectively, for the first quarter 2013, compared to non-GAAP basic and diluted earnings per ADS of RMB0.56 and RMB0.55, respectively, in the same period of 2012 and basic and diluted earnings per ADS of RMB0.88 and RMB0.88, respectively, in the fourth quarter2012.

Cash and pledged bank deposits. As of March 31, 2013, the Company had cash and pledged bank deposits of RMB379.2 million (US$61.1 million), representing a quarter-over-quarter decrease of 0.8% from RMB382.3 million as of December 31, 2012 and a year-over-year decrease of 19.2% from RMB469.6 million as of March 31, 2012, respectively.

Operating cash flow. Net operating cash inflow for the first quarter 2013 was RMB76.6 million (US$12.3 million), representing a decrease of 18.3% from RMB93.8 million in the first quarter 2012.

Guidance

The Company expects to generate total net revenues in the range of RMB735 million to RMB745 million in the second quarter 2013. These forecasts reflect the Company's current and preliminary view, which is subject to change.

Change in Directorship

Mr. Jeffrey Perlman, a member of the Company's board of directors, resigned as a Company director late last week.  "On behalf of the Company and its board of directors, we would like to thank Mr. Perlman for his valuable contributions and service during the last two years," said Mr. Boquan He, Co-Chairman of the Company. "We wish Jeff every success in the future."

Conference Call

7 Days Group Holdings Limited senior management will host a conference call at 10:00 pm (Eastern) / 7:00 pm (Pacific) Monday, May 13, 2013, which is 10:00 am (Beijing) on Tuesday, May 14, 2013 to discuss its first quarter 2013 financial results and recent business activity. The conference call may be accessed by calling the following numbers:

China:

800 8190 121

Hong Kong:

852 2475 0994

US Toll Free:

1 866 519 4004

US New York:

1 718 354 1231

International:

65 6723 9381

Passcode:

7 Days

A live webcast of the conference call and replay will be available on the investor relations page of 7 Days Group's website at http://en.7daysinn.cn/.

A telephone replay will be available shortly after the call.  The dial-in details are as follows:

US:

1 855 452 5696

International:

61 2 8199 0299

Conference ID number:

57969157

About 7 Days Group Holdings Limited


7 Days Group is a leading and fast growing national economy hotel chain based in China. It converts and operates limited service economy hotels across major metropolitan areas in China under its award-winning "7 Days Inn" brand. The Company strives to offer consistent and high-quality accommodations and services primarily to the growing population of value conscious business and leisure travelers who demand affordable, clean, comfortable, convenient and safe lodging, and to respond to its guests' needs.

Use of Non-GAAP Financial Measures 

To supplement 7 Days Group's unaudited financial results presented in accordance with U.S. GAAP, the Company has used the following non-GAAP measures defined as non-GAAP financial measures by the Securities and Exchange Commission (the "SEC") to report its financial results:

  • Non-GAAP income from operations represents income from operations reported in accordance with GAAP, excluding share-based compensation expense.
  • Non-GAAP net income represents net income reported in accordance with GAAP, excluding share-based compensation expense.
  • Non-GAAP earnings per ADS represents non-GAAP net income divided by the number of ADS used in computing basic and diluted earnings per ADS.   
  • EBITDA represents net income reported in accordance with GAAP, adjusted for the effects of interest income and expense, provision for income taxes, depreciation and amortization.
  • Adjusted EBITDA represents EBITDA, excluding share-based compensation expense.

The Company believes EBITDA is a useful financial metric to assess its operating and financial performance before the impact of investing and financing transactions, if any, and income taxes. In addition, 7 Days Group believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of its financial performance. Given the significant investments that 7 Days Group has made in the past in property and equipment, depreciation and amortization expense comprises a meaningful portion of its cost structure. 7 Days Group believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. The presentation of EBITDA should not be construed as an indication that the Company's future results will be unaffected by other charges and gains the Company considers to be outside the ordinary course of its business. 7 Days Group also calculates Adjusted EBITDA excluding share-based compensation expense. The Company prepares its financial statements in accordance with GAAP and, accordingly, expenses its employee share options. Since share-based compensation expenses are non-cash expenses, the Company believes excluding them from its calculation of EBITDA allows it to provide investors with a more useful tool for assessing its operating and financial performance.

The use of EBITDA and Adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets, such as property and equipment, income tax expense, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Each of these items should also be considered in the overall evaluation of its results. Additionally, EBITDA does not consider capital expenditures and other investing activities and should not be considered as a measure of the Company's liquidity. The Company compensates for these limitations by providing the relevant disclosure of its depreciation and amortization, interest expense and interest income, income tax expense, capital expenditures, share-based compensation expense and other relevant items both in its reconciliations to the GAAP financial measures and in its consolidated financial statements, all of which should be considered when evaluating the Company's performance. The terms EBITDA and Adjusted EBITDA are not defined under GAAP, and EBITDA and Adjusted EBITDA are not measures of net income, operating income, operating performance or liquidity presented in accordance with GAAP. When assessing the Company's operating and financial performance, investors should not consider this data in isolation or as a substitute for the Company's net income, operating income or any other operating performance measure that is calculated in accordance with GAAP. In addition, the Company's EBITDA and Adjusted EBITDA may not be comparable to EBITDA or Adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA and Adjusted EBITDA in the same manner as the Company does. 

For reasons same to the use of EBITDA and Adjusted EBITDA described above, the Company has also reported net income, basic and diluted earnings per ADS and income (loss) from operations on a non-GAAP basis, excluding share-based compensation expenses in the relevant period.  These non-GAAP operating measures are useful for understanding and assessing the Company's underlying business performance and operating trends and the Company expects to report net income, basic and diluted earnings per ADS and income from operations on a non-GAAP basis using a consistent method on a quarterly basis going forward. 

7 Days Group believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing 7 Days Group's financial performance and liquidity and when planning and forecasting future periods. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non-GAAP results for the periods set forth in the tables at the end of this release. 

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements and including, among other things, 7 Days Group's revenue guidance for the second quarter 2013 and business forecast for 2013 including the expected number of hotel to be opened (including the breakdown of expected new leased-and-operated hotels and new managed hotels), Company's business strategies, its ability to offer consistent and high-quality accommodations and services at an affordable price, its ability to leverage economies of scale and its ability to achieve strict cost controls and to deliver continued growth. These forward-looking statements are not historical facts but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. The Company's actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. In particular, the Company's operating results for any period are impacted significantly by the mix of leased-and-operated hotels and managed hotels in its chain, causing the Company's operating results to fluctuate and making them difficult to predict.

Other factors that could cause forward-looking statements to differ materially from actual future events or results include risks and uncertainties related to: uncertainties associated with factors typically affecting the lodging industry, including changes in economic conditions, adverse weather conditions, natural disasters or outbreaks of serious contagious diseases in markets where the Company has a presence; uncertainties regarding the Company's ability to respond to competitive pressures; uncertainties regarding the Company's ability to manage its expected growth; uncertainties regarding the Company's ability to continue its growth and achieve profitability; risks associated with the Company's limited operating history and historical operating losses; uncertainties regarding the Company's ability to fund its working capital needs; uncertainties regarding its ability to successfully and timely identify, secure or operate additional hotel properties. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2012 Annual Report on Form 20-F filed with the SEC on April 10, 2013, which is available on the SEC's website at www.sec.gov. For a discussion of other important factors that could adversely affect the Company's business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 17 of the Company's 2012 Annual Report on Form 20-F. The Company's results of operations for the first quarter 2013 are not necessarily indicative of its operating results for any future periods. Any projections in this release are based on limited information currently available to the Company, which is subject to change. Although such projections and the factors influencing them will likely be changed, the Company will not necessarily update the information. Such information speaks only as of the date of this release.

Statement Regarding Unaudited Financial Information

The financial information set forth above is unaudited and subject to adjustments. Adjustments to the financial statements may be identified when the annual financial statements are prepared and audit work is performed for the year end audit, which could result in significant differences from this unaudited financial information.

Contacts:

Investor Contact:
Vivian Chen, Investor Relations Director
7 Days Group Holdings Limited
+86-20-8922-5858
IR@7daysinn.cn

Investor Relations (US):
Mahmoud Siddig, Managing Director
Taylor Rafferty
Tel: +1 (212) 889-4350
7DaysInn@taylor-rafferty.com

Investor Relations (HK):
Candy Cheung, Senior Consultant
Taylor Rafferty
+852 3196 3712
7DaysInn@taylor-rafferty.com

 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 



7 Days Group Holdings Limited
Consolidated balance sheet information



Quarter Ended


31/Mar/12


31/Dec/12


31/Mar/13


RMB' 000


RMB' 000


RMB' 000

US$'000

ASSETS







Current assets:







Cash

466,556


378,809


375,321

60,430

Pledged bank deposits

3,054


3,443


3,897

627

Short-term investment

60,000


-


-

-

Accounts receivable

6,758


17,015


13,919

2,241

Prepaid rent

158,746


171,370


176,589

28,433

Other prepaid expenses and current assets

56,059


77,608


77,399

12,462

Hotel supplies

46,826


56,591


46,204

7,439

Amounts due from related parties

71


87


15

2

Deferred tax assets

19,978


26,222


26,406

4,252

  Total current assets

818,048


731,145


719,750

115,886

Property and equipment, net

1,679,664


1,970,763


1,927,978

310,423

Rental deposits

79,091


90,824


93,618

15,073

Land use right

23,889


23,426


23,272

3,747

Prepaid rent

63,268


71,088


68,328

11,001

Intangible assets, net

29,374


26,221


25,170

4,053

Goodwill

61,041


61,041


61,041

9,828

Other non-current assets

500


-


-

-

Deferred tax assets

53,287


62,513


63,518

10,227

  Total assets

2,808,162


3,037,021


2,982,675

480,238

LIABILITIES AND EQUITY







Current liabilities:







Accounts payable

208,758


300,240


230,034

37,038

Bills payable

10,177


11,475


12,990

2,092

Short-term bank borrowings

342,993


130,015


187,377

30,170

Accrued expenses and other payables

403,048


511,800


471,170

75,863

Amounts due to related parties

1,793


2,601


3,204

516

Income taxes payable

19,694


25,617


21,858

3,519

  Total current liabilities

986,463


981,748


926,633

149,198

Long-term bank borrowings

26,930


121,381


97,329

15,671

Accrued lease payment

218,184


256,472


263,404

42,411

Unfavorable lease contract liability

7,643


7,136


6,967

1,122

Refundable deposits

15,250


14,850


15,750

2,536

Deferred revenue

748


-


-

-

Deferred rebate income

6,350


5,727


6,916

1,114

Borrowings from related parties

1,238


752


-

-

Income taxes payable

6,644


3,317


3,317

534

Deferred tax liabilities

3,039


7,527


6,977

1,123

  Total liabilities

1,272,489


1,398,910


1,327,293

213,709

Equity:







Ordinary shares

141,097


141,317


141,610

22,801

Treasury stock

-


(67,137)


(67,137)

(10,810)

Additional paid-in capital

1,632,426


1,649,880


1,664,124

267,940

Accumulated other comprehensive income

(475)


(721)


(941)

(152)

Accumulated deficit

(219,379)


(62,303)


(56,859)

(9,158)

Total 7 Days Group Holdings Limited share holders' equity

1,553,669


1,661,036


1,680,797

270,621

Non-controlling interests

(17,996)


(22,925)


(25,415)

(4,092)

Total equity

1,535,673


1,638,111


1,655,382

266,529

Total liabilities and equity

2,808,162


3,037,021


2,982,675

480,238









 

 

7 Days Group Holdings Limited

Unaudited Consolidated Statements of Comprehensive Income

 


Quarter Ended


Mar 31


Dec 31


Mar 31


2012


2012


2013


RMB'000


RMB'000


RMB'000

US$'000

 Total Revenues

577,639


736,385


678,110

109,182

 Leased-and-operated hotels

519,459


648,427


596,929

96,111

 Managed hotels

58,180


87,958


81,181

13,071

 Less: Business tax and surcharges

(32,612)


(40,355)


(37,570)

(6,049)

 Net revenues

545,027


696,030


640,540

103,133








 Operating costs and expenses







 Hotel operating costs

(466,480)


(560,637)


(556,912)

(89,668)

Rental expenses

(165,391)


(190,645)


(192,826)

(31,047)

Staff cost

(89,142)


(114,169)


(116,089)

(18,691)

Depreciation and amortization

(73,021)


(84,790)


(87,435)

(14,078)

Hotel supplies

(24,468)


(40,439)


(34,268)

(5,517)

Utilities

(57,773)


(46,554)


(60,954)

(9,814)

Other

(56,685)


(84,040)


(65,340)

(10,521)

 Sales and marketing expenses

(12,459)


(31,702)


(16,097)

(2,592)

 General and administrative expenses 

(42,785)


(52,555)


(53,806)

(8,663)








 Total operating costs and expenses

(521,724)


(644,894)


(626,815)

(100,923)

 Income from operations

23,303


51,136


13,725

2,210








 Other income (expenses)







 Interest income

2,109


800


1,099

177

 Interest expense

(6,385)


(2,875)


(4,591)

(739)

Income before income tax 

19,027


49,061


10,233

1,648

   Income tax expenses

(7,341)


(13,844)


(7,043)

(1,134)

 Net income

11,686


35,217


3,190

514

 Net income attributable to non-controlling interest

7,283


2,683


2,254

363

 Net income attributable to 7 Days Group
        Holdings Limited
ordinary shareholders

18,969


37,900


5,444

877








 Basic earnings per ordinary share

0.13


0.26


0.04

0.01

 Diluted earnings per ordinary share

0.13


0.26


0.04

0.01








 Other Comprehensive loss







  Foreign currency transaction adjustment, net of nil tax

(805)


(1,857)


(220)

(35)








 Comprehensive income

10,881


33,360


2,970

479

  Less: Comprehensive income attributable to
     noncontrolling interest

(7,283)


(2,683)


(2,254)

(363)

 Comprehensive income attributable to 7 Days
     Group Holdings Limited ordinary shareholders

18,164


36,043


5,224

842

 

 

7 Days Group Holdings Limited

Reconciliation of GAAP and Non-GAAP Results

 

EBITDA(non-GAAP)





Quarter Ended



Mar 31


Dec 31


Mar 31



2012


2012


2013



RMB'000


RMB'000


RMB'000

US$'000

Net income attributable to 7 Days Group Holdings Limited ordinary shareholders


18,969


37,900


5,444

877

Interest income


(2,109)


(800)


(1,099)

(177)

Interest expense


6,385


2,875


4,591

739

Income tax expenses


7,341


13,844


7,043

1,134

Depreciation and amortization


75,170


87,429


90,226

14,527

EBITDA (non-GAAP)


105,756


141,248


106,205

17,100

EBITDA%


19.4%


20.3%


16.6%

16.6%

Share-based compensation expenses


8,868


5,187


6,682

1,076









Adjusted EBITDA (non- GAAP) excluding share-based compensation expenses


114,624


146,435


112,887

18,176

Adjusted EBITDA%


21.0%


21.0%


17.6%

17.6%

 

 

Non-GAAP net income attributable to 7 Days Group Holdings Limited ordinary shareholders



Quarter Ended



Mar 31


Dec 31


Mar 31



2012


2012


2013



RMB'000


RMB'000


RMB'000

US$'000

Net income attributable to 7 Days Group Holdings Limited ordinary shareholders (GAAP)


18,969


37,900


5,444

877









Share-based compensation expenses


8,868


5,187


6,682

1,076









Net income attributable to ordinary shareholders excluding share-based compensation expenses (Non GAAP net income)


27,837


43,087


12,126

1,953

 


Earnings per share





Quarter Ended



Mar 31


Dec 31


Mar 31



2012


2012


2013



RMB


RMB


RMB

USD

Basic earnings per ordinary share (GAAP)


0.13


0.26


0.04

0.01

Diluted earnings per ordinary share (GAAP)


0.13


0.26


0.04

0.01









Basic earnings per ordinary share(Non-GAAP), excluding share-based compensation expenses


0.19


0.29


0.08

0.01









Diluted earnings per ordinary share(Non-GAAP), excluding share-based compensation expenses


0.18


0.29


0.08

0.01









Denominator:








Basic weighted average number of ordinary shares


149,942,510


146,813,397


147,035,958

Diluted weighted average number of ordinary shares


151,299,954


147,384,945


147,923,520























Quarter Ended



31-Mar-12

31-Dec-12

31-Mar-13



RMB '000

RMB '000

RMB'000

USD'000

Hotel operating cost






GAAP Result

(466,480)

(560,637)

(556,912)

(89,668)


% of Total net revenue

85.59%

80.55%

86.94%

86.94%


Share-based Compensation

555

313

400

64


% of Total net revenue

0.10%

0.04%

0.06%

0.06%


Non-GAAP Result

(465,925)

(560,324)

(556,512)

(89,604)


% of Total net revenue

85.49%

80.50%

86.88%

86.88%







Sales and marketing expenses






GAAP Result

(12,459)

(31,702)

(16,097)

(2,592)


% of Total net revenue

2.29%

4.55%

2.51%

2.51%


Share-based Compensation

586

578

623

100


% of Total net revenue

0.11%

0.08%

0.10%

0.10%


Non-GAAP Result

(11,873)

(31,124)

(15,474)

(2,492)


% of Total net revenue

2.18%

4.47%

2.42%

2.42%







General and administrative expenses






GAAP Result

(42,785)

(52,555)

(53,806)

(8,663)


% of Total net revenue

7.85%

7.55%

8.40%

8.40%


Share-based Compensation

7,727

4,296

5,659

911


% of Total net revenue

1.42%

0.62%

0.88%

0.88%


Non-GAAP Result

(35,058)

(48,259)

(48,147)

(7,752)


% of Total net revenue

6.43%

6.93%

7.52%

7.52%







Total operating cost and expenses






GAAP Result

(521,724)

(644,894)

(626,815)

(100,923)


% of Total net revenue

95.72%

92.65%

97.86%

97.86%


Share-based Compensation

8,868

5,187

6,682

1,076


% of Total net revenue

1.63%

0.75%

1.04%

1.04%


Non-GAAP Result

(512,856)

(639,707)

(620,133)

(99,847)


% of Total net revenue

94.10%

91.91%

96.81%

96.81%







Income from operations






GAAP Result

23,303

51,136

13,725

2,210


% of Total net revenue

4.28%

7.35%

2.14%

2.14%


Share-based Compensation

8,868

5,187

6,682

1,076


% of Total net revenue

1.63%

0.75%

1.04%

1.04%


Non-GAAP Result

32,171

56,323

20,407

3,286


% of Total net revenue

5.90%

8.09%

3.19%

3.19%








 


 

7 Days Group Holdings Limited

Operating Data

 



As of and for

the Quarter Ended



Mar 31

Dec 31

Mar 31



2012

2012

2013






Hotels in operation


1,044

1,345

1,427

Leased-and-operated hotels


417

492

500

Managed hotels


627

853

927






Hotels under conversion


189

223

223

Leased-and-operated hotels


30

21

14

Managed hotels


159

202

209






Total hotel rooms for hotels in operation


104,191

133,497

141,091

Leased-and-operated hotels


43,800

51,725

52,691

Managed hotels


60,391

81,772

88,400






Total hotel rooms for hotels under conversion


18,542

20,368

19,733






Number of cities covered for hotels in operation


162

208

223






Average occupancy rate


77.7%

78.1%

75.3%

Leased-and-operated hotels


79.5%

79.2%

75.0%

Managed hotels


76.3%

77.4%

75.5%






Average daily rate (in RMB)


156.4

161.8

159.1

Leased-and-operated hotels


161.9

168.5

165.5

Managed hotels


152.1

157.4

155.2






RevPAR (in RMB)


121.5

126.4

119.7

Leased-and-operated hotels


128.8

133.4

124.1

Managed hotels


116.0

121.9

117.1

 

SOURCE 7 Days Group Holdings Limited



RELATED LINKS
http://www.7daysinn.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.