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E-House Reports Second Quarter 2009 Results
Second Quarter 2009 Revenues Grew 48% Year-Over-Year; Second Quarter 2009 Net Income Grew 65% Year-Over-Year
Financial and Operating Highlights
-- Total gross floor area ("GFA") of new properties sold reached 2.7
million square meters in the second quarter of 2009, an increase of
183% from 1.0 million square meters for the same quarter in 2008. Total
value of new properties sold was $3.0 billion in the second quarter of
2009, an increase of 172% from $1.1 billion for the same quarter in
2008.
-- Total revenues were $63.5 million for the second quarter of 2009, an
increase of 48% from $43.0 million for the same quarter in 2008.
-- Net income was $19.3 million, or $0.24 per ADS, for the second quarter
of 2009, an increase of 65% from $11.7 million, or $0.14 per ADS, for
the same quarter in 2008.
-- Net income excluding share-based compensation expenses (non-GAAP) was
$21.4 million, or $0.27 per ADS (non-GAAP), for the second quarter of
2009, an increase of 68% from $12.7 million, or $0.15 per ADS
(non-GAAP), for the same quarter in 2008. (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.)
"I am pleased to report a solid second quarter in which E-House delivered
strong growth in both revenues and profits," said Mr.
Mr. Zhou continued, "Looking forward to the second half of 2009, we are confident in the Chinese government's continued commitment to stimulate economic growth and maintain stable development of the real estate industry. As in the past, E-House is very well positioned to take advantage of the favorable market conditions given our strong project pipeline, brand recognition and execution capabilities. We are confident that we can build on the solid results of the first half and continue strong revenue growth in the second half of 2009. Furthermore, we believe that our revenue increase, coupled with effective cost control, will result in even better profit growth and higher profit margin."
Mr.
Financial Results for the Second Quarter of 2009
Revenues
Second quarter total revenues were
Primary Real Estate Agency Services
Second quarter revenues from primary real estate agency services were
Secondary Real Estate Brokerage Services
Second quarter revenues from secondary real estate brokerage services were
Real Estate Consulting and Information Services
Second quarter revenues from real estate consulting and information
services were
Real Estate Advertising Services
E-House began a new business segment, real estate advertising services, in
the second half of 2008, in which the Company offers real estate advertising
design and agency services. Revenues from this business segment were
Cost of Revenues
Second quarter cost of revenues was
Selling, General and Administrative Expenses
Second quarter selling, general and administrative expenses were
Income from Operations
Second quarter income from operations was
Net Income Attributable to Shareholders
Second quarter net income attributable to shareholders was
Cash Flow
As of
Business Outlook
The Company estimates that its revenues for the third quarter of 2009 will
be in the range of
Conference Call Information
E-House's management will host an earnings conference call on
Dial-in details for the earnings conference call are as follows:
U.S./International: +1-857-350-1597
Hong Kong: +852-3002-1672
Mainland China: 10-800-130-0399
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "E-House earnings call."
A replay of the conference call may be accessed by phone at the following
number until
International: +1-617-801-6888
Passcode: 48008510
Additionally, a live and archived webcast along with the transcript of the conference call will be available at http://ir.ehousechina.com .
About E-House
E-House (
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 "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "may," "intend," "confident," "is
currently reviewing," "it is possible," "subject to" and similar statements.
Among other things, the Business Outlook section and quotations from
management in this press release, as well as E-House's strategic and
operational plans, contain forward-looking statements. E-House may also make
written or oral forward-looking statements in its reports with the U.S.
Securities and Exchange Commission on Forms 20-F and 6-K, in its annual report
to shareholders, 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 E-House'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
prior 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, E-House's susceptibility to fluctuations in the real
estate market of
About Non-GAAP Financial Measures
To supplement E-House's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), E-House uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: net income attributable to shareholders excluding share-based compensation expenses, income from operations excluding share-based compensation expenses, and net income per ADS excluding share-based compensation expenses. 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.
E-House believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. E-House 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 E-House's historical performance and liquidity. E-House will compute its non-GAAP financial measures using the same consistent method from quarter to quarter. E-House 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 share-based compensation expenses is that share- based compensation charge has been and will continue to be for the foreseeable future a significant recurring expense in our business. 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:
In China
Michelle Yuan
Manager, Investor Relations
E-House (China) Holdings Limited
Phone: +86-21-6133-0770
Email: liyuan@ehousechina.com
Cathy Li
Ogilvy Financial, Beijing
Phone: +86-10-8520-6104
Email: cathy.li@ogilvy.com
In the U.S.
Jessica Barist Cohen
Ogilvy Financial, New York
Phone: +1-646-460-9989
Email: jessica.cohen@ogilvypr.com
E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
December 31, June 30,
2008 2009
ASSETS
Current assets
Cash and cash equivalents 225,663 194,045
Restricted cash 23,931 7,667
Marketable securities 8,096 --
Customer deposits 71,856 97,246
Unbilled accounts receivable, net 83,617 89,423
Accounts receivable, net 36,668 36,542
Properties held for sale 1,065 6,043
Prepaid expenses and other current
assets 29,286 27,600
Amounts due from related parties 749 1,946
Total current assets 480,931 460,512
Property, plant and equipment, net 9,622 12,651
Intangible assets, net 3,433 3,372
Investment in affiliates 5,062 5,448
Goodwill 7,458 7,024
Other non-current assets 13,407 24,018
Total assets 519,913 513,025
Current liabilities
Short-term borrowings 21,947 --
Accounts payable 1,492 2,683
Accrued payroll and welfare expenses 11,629 17,069
Income tax payable 17,560 19,874
Other tax payable 6,638 6,891
Amounts due to related parties 622 475
Deposit payables 39,212 9,953
Other current liabilities 9,572 15,130
Total current liabilities 108,672 72,075
Deferred tax liabilities 706 698
Other non-current liabilities 3,546 3,522
Total liabilities 112,924 76,295
Commitments and contingencies
EQUITY:
E-House shareholders' equity:
Ordinary share ($0.001 par value):
1,000,000,000 and 1,000,000,000 shares
authorized, 79,769,481 and 79,640,937
shares issued and outstanding, as of
December 31, 2008 and June 30, 2009,
respectively 80 80
Additional paid-in capital 301,812 305,312
Retained earnings 85,295 110,883
Accumulated other comprehensive
income 16,110 16,188
Total E-House shareholders' equity 403,297 432,463
Non-controlling interest* 3,692 4,267
Total equity 406,989 436,730
TOTAL LIABILITIES AND EQUITY 519,913 513,025
E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share data and per share data)
Three months ended Six months ended
June 30, June 30,
2008 2009 2008 2009
Revenues:
Primary real estate
agency services 28,268 41,195 50,145 58,587
Secondary real estate
brokerage services 3,255 5,718 6,097 8,704
Real estate consulting
and information
services 11,187 13,706 19,459 24,586
Advertising services -- 2,612 -- 3,914
Others 250 250 500 500
42,960 63,481 76,201 96,291
Cost of revenues (7,304) (13,367) (13,311) (23,181)
Selling, general and
administrative
expenses (18,435) (26,070) (33,643) (45,948)
Income from operations 17,221 24,044 29,247 27,162
Interest expenses (885) -- (1,134) (216)
Interest income 315 203 911 419
Other income, net (575) 255 (1,353) 5,135
Income before taxes,
equity in affiliates
and non-controlling
interest 16,076 24,502 27,671 32,500
Income tax expense (4,201) (4,700) (7,000) (6,167)
Income before equity in
affiliates and
non-controlling interest 11,875 19,802 20,671 26,333
Income from investment
in affiliates -- 300 -- 385
Net income 11,875 20,102 20,671 26,718
Net Income to
Non-controlling
interest * (130) (756) (248) (307)
Net income attributable
to shareholders 11,745 19,346 20,423 26,411
Earnings per share:
Basic 0.14 0.24 0.25 0.33
Diluted 0.14 0.24 0.25 0.33
Shares used in
computation:
Basic 82,473,759 79,541,611 81,418,814 79,540,143
Diluted 82,832,024 80,244,028 81,835,790 79,934,917
Notes
* Reflects implementation of SFAS No.160 Non-controlling Interest in
Consolidated Financial Statements-an amendment of ARB No.51
Note 1 The conversion of Renminbi ("RMB") amounts into USD amounts
is based on the rate of USD1 = RMB6.8319 on June 30, 2009 and USD1
= RMB6.8313 for the three months ended June 30, 2009.
E-HOUSE (CHINA) HOLDINGS LIMITED
Reconciliation of GAAP and Non-GAAP Results
(In thousands of U.S. dollars, except share data and per share data)
Three months ended Six months ended
June 30, June 30,
2008 2009 2008 2009
(unaudited) (unaudited) (unaudited) (unaudited)
GAAP income from
operations 17,221 24,044 29,247 27,162
Share-based
compensation 986 2,044 1,739 3,743
Non-GAAP income from
operations 18,207 26,088 30,986 30,905
GAAP net income
attributable to
shareholders 11,745 19,346 20,423 26,411
Share-based
compensation
expenses 986 2,044 1,739 3,743
Non-GAAP net income
attributable to
shareholders 12,731 21,390 22,162 30,154
GAAP income per ADS
- basic 0.14 0.24 0.25 0.33
GAAP income per ADS
- diluted 0.14 0.24 0.25 0.33
Non-GAAP income per ADS
- basic 0.15 0.27 0.27 0.38
Non-GAAP income per ADS
- diluted 0.15 0.27 0.27 0.38
Shares used in
calculating basic
GAAP /Non-GAAP income
attributable to
shareholders per ADS 82,473,759 79,541,611 81,418,814 79,540,143
Shares used in
calculating diluted
GAAP / Non-GAAP income
attributable to
shareholders per ADS 82,832,024 80,244,028 81,835,790 79,934,917
E-HOUSE (CHINA) HOLDINGS LIMITED
SELECTED OPERATING DATA
Three months ended Six months ended
June 30, June 30,
2008 2009 2008 2009
Primary real estate agency service
Total Gross Floor Area ("GFA") of
new properties sold (thousands
of square meters) 955 2,706 1,567 4,078
Total value of new properties
sold (millions of $) 1,096 2,980 1,871 4,441
SOURCE E-House (
RELATED LINKS
http://www.ehousechina.com
http://ir.ehousechina.com
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