SHANGHAI, Aug. 11, 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 second
quarter ended June 30,
2015.
Second Quarter 2015
Highlights
- Total revenues decreased 1.8% year over year to RMB 1,667 million (US$268.9 million) for the second quarter of 2015,
slightly lower than the previously provided guidance of
RMB 1,670 million to RMB 1,700
million.
- Net income attributable to ordinary shareholders was
RMB 72.1 million (US$11.6 million) for the second quarter of 2015,
compared with net income of RMB 108.2
million for the second quarter of 2014. Adjusted net income
attributable to ordinary shareholders (non-GAAP) decreased 37.7%
year over year to RMB 105.0 million
(US$16.9 million) for the second
quarter of 2015.
- EBITDA (non-GAAP) decreased 15.4% year over year to
RMB 323.2 million (US$52.1 million) for the second quarter of 2015.
Adjusted EBITDA (non-GAAP) decreased 19.5% year over year to
RMB 356.1 million (US$57.4 million) for the second quarter of
2015.
- Net operating cash inflow decreased 3.5% year over year to
RMB 352.8 million (US$56.9 million) for the second quarter of
2015.
- As of June 30, 2015, Homeinns
Hotel Group operated 2,750 hotels across 342 cities in China, with a net addition of 89 hotels during
the second quarter of 2015.
Mr. David Sun, the Company's
chief executive officer, stated, "During the second quarter, we
continued to face challenges associated with sustained difficult
market conditions. Yet, we also continued to take important
and necessary steps to make long-term investments in our
business. Revenue growth and RevPAR remained under pressure
given the surrounding economic climate. This, coupled with higher
pre-opening costs, impacted our overall financial performance.
However, we believe that our strategy to accelerate the development
of mid-scale hotel offerings serves our overall best interest,
given its encouraging performance to date. Moreover, during
the second quarter, there were a number of other quite positive
developments. In addition to further building our mid-scale
offerings, Homeinn Plus and Yitel, we had great success in further
enhancing our digital capabilities and membership recruitment, with
both our mobile app user levels and our membership numbers reaching
new highs. Lastly, we continued to control costs and improve
efficiencies. All of this is keeping our operating foundation
strong."
Mr. Sun continued, "As we move into the second half of 2015, we
expect the external conditions to remain quite challenging, and we
are not counting on a market rebound in the remainder of the
year. However, as we have stated before, we believe that the
long-term prospects of the travel and lodging market in
China are and will stay very
strong and Homeinns is set to remain one of the strongest players
in the industry. While further diversifying our product offerings,
we will also develop unique ways to engage customers via
traditional and digital marketing channels, and additionally
maintain strict levels of operating discipline. This will all
work together to ensure Homeinns perform very well over the
long-term and deliver value to its customers, employees, business
partners and shareholders."
Hotel Development
|
|
Hotels in Operations
and Pipeline
|
|
Openings
|
Closures
|
|
|
Group
|
Homeinn
|
Motel
|
Fairyland
|
Yitel
|
Homeinn
Plus*
|
|
2Q15
|
2Q15
|
Total Number of
Hotels
|
2,750
|
2,250
|
410
|
31
|
50
|
9
|
|
126
|
37**
|
|
Leased-and-Operated
|
915
|
699
|
163
|
22
|
23
|
8
|
|
14
|
11
|
|
Franchised-and-Managed
|
1,835
|
1,551
|
247
|
9
|
27
|
1
|
|
112
|
26
|
|
|
|
|
|
|
|
|
|
|
|
Contracted or Under
Construction
|
184
|
122
|
28
|
1
|
19
|
14
|
|
|
|
|
Leased-and-Operated
|
27
|
6
|
5
|
0
|
8
|
8
|
|
|
|
|
Franchised-and-Managed
|
157
|
116
|
23
|
1
|
11
|
6
|
|
|
|
Under Due
Diligence
|
165
|
134
|
19
|
0
|
4
|
8
|
|
|
|
* "Homeinn Plus", a
mid-scale brand newly launched in April 2015
** Among these
closures, seven leased-and-operated hotels were closed due to
conversion to Homeinn Plus and two leased-and-operated hotels were
closed and converted to franchised-and-managed hotels.
|
Operating Metrics
|
Total
Hotels
|
|
Hotels Opened for
at least 18 Months
|
|
2Q2015
|
1Q2015
|
2Q2014
|
|
2Q2015
|
2Q2014
|
Occupancy
Rate
|
83.3%
|
79.3%
|
86.7%
|
|
84.7%
|
88.1%
|
Average Daily Rate
(ADR, RMB)
|
163
|
151
|
164
|
|
163
|
164
|
Revenue per Available
Room (RevPAR, RMB)
|
136
|
120
|
142
|
|
138
|
145
|
For the second quarter of 2015, occupancy rate decreased by 3.4
percentage points while ADR decreased by 0.6%, resulting in a
year-over-year decrease of 4.2% in RevPAR. The decrease in RevPAR
was mainly due to continued difficult market conditions in the
second quarter of 2015. Sequentially, RevPAR increased by 13.3%
mainly due to seasonality. The first quarter is normally the
slowest period in a year for the Company and the overall hotel
industry.
As of June 30, 2015, a total of
2,103 hotels had been in operation for at least 18 months. The
occupancy rate of these hotels declined year over year from 88.1%
to 84.7%, and ADR decreased year over year from RMB 164 to RMB 163, resulting in a decrease in
RevPAR by 4.8% from RMB145 to RMB138
during the second quarter of 2015.
Homeinns Hotel Group had a total of 38.6 million unique
non-corporate members under its frequent guests program as of
June 30, 2015.
Financial Results for Second
Quarter2015
Revenues
|
|
|
|
|
|
(RMB/USD in
Millions)
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
|
|
RMB
|
USD
|
|
RMB
|
V%
|
|
Leased-and-Operated
Hotels
|
1,410.6
|
227.5
|
|
1,459.5
|
-3.4%
|
|
Franchised-and-Managed Hotels
|
256.7
|
41.4
|
|
239.1
|
7.4%
|
Total
Revenues
|
1,667.3
|
268.9
|
|
1,698.6
|
-1.8%
|
Less: Business
Taxes
|
-98.4
|
-15.9
|
|
-104.6
|
-5.9%
|
Net
Revenues
|
1,568.9
|
253.0
|
|
1,594.0
|
-1.6%
|
|
|
|
|
|
|
|
|
Note: "V%" represents
year-over-year percentage change in amounts
|
Revenues from leased-and-operated hotels decreased 3.4% year
over year to RMB 1.41 billion
(US$227.5 million) for the second
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 7.4% year
over year to RMB 256.7 million
(US$41.4 million) for the second
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, partially offset
by a decrease in RevPAR.
Total Operating
Costs and Expenses / Income from Operations
|
|
|
|
(RMB/USD in
Millions)
|
Second Quarter
2015
|
|
|
|
|
Adjusted
|
|
GAAP
Results
|
Non-GAAP
Results*
|
|
RMB
|
USD
|
Vpts
|
RMB
|
USD
|
Vpts
|
Leased-and-Operated
Hotel Costs
|
1,256.7
|
202.7
|
3.8pts
|
1,253.8
|
202.2
|
3.8pts
|
Personnel Costs of
Franchised-and-Managed Hotels
|
66.0
|
10.6
|
0.6pts
|
62.9
|
10.1
|
0.6pts
|
Sales and Marketing
Expenses
|
25.9
|
4.2
|
-0.2pts
|
25.7
|
4.1
|
-0.3pts
|
General and
Administrative Expenses
|
82.7
|
13.3
|
0.2pts
|
70.5
|
11.4
|
0.5pts
|
|
|
|
|
|
|
|
Total Operating Costs
and Expenses
|
1,431.2
|
230.8
|
4.2pts
|
1,413.0
|
227.9
|
4.5pts
|
|
|
|
|
|
|
|
Income from
Operations
|
127.8
|
20.6
|
-4.7pts
|
146.1
|
23.6
|
-5.1pts
|
|
|
|
|
|
|
|
*Adjusted Non-GAAP
results exclude share-based compensation expenses and integration
costs.
Note: "Vpts"
represents year-over-year change in percentage points of total
revenues
|
Total operating costs and expenses were RMB 1.43 billion (US$230.8
million) for the second quarter of 2015, representing 85.8%
of total revenues for the quarter. Total operating costs and
expenses excluding any share-based compensation expenses and
integration costs (non-GAAP) for the second quarter of 2015 were
84.7% of total revenues, compared to 80.2% in the same period a
year ago.
- Total leased-and-operated hotel costs were RMB 1.26 billion (US$202.7
million) for the second quarter of 2015, representing 89.1%
of the leased-and-operated hotel revenues for the quarter, compared
to 83.4% 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 88.9% of the leased-and-operated
hotel revenues in the second quarter of 2015, compared to 83.1% in
the same period a year ago.
Pre-opening cost was RMB 19.9 million
(US$3.2 million) for the second
quarter of 2015, compared to RMB6.8
million in the second quarter of 2014. The increase is
associated with a higher number of mid-scale hotels under
construction.
The year-over-year increase in total leased-and-operated hotel
costs as a percentage of leased-and-operated hotel revenues for the
second 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 cost was fixed, as well as to the higher
pre-opening cost in the second quarter of 2015.
- Personnel costs of franchised-and-managed hotels were
RMB 66.0 million (US$10.6 million) for the second quarter of 2015,
representing 25.7% of the franchised-and-managed hotel revenues for
the second quarter of 2015, compared to 24.0% in the same period a
year ago. Franchised-and-managed hotels personnel costs excluding
share-based compensation expenses (non-GAAP) were 24.5% of
franchised-and-managed hotel revenues in the second quarter of
2015, compared to 22.6% 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 second quarter of
2015 was mainly due to a decrease in RevPAR, which resulted in a
lower revenue base per hotel, partially offset by lower
performance-related bonuses in the quarter.
- Sales and marketing expenses were RMB 25.9 million (US$4.2
million) for the second quarter of 2015, representing 1.6%
of total revenues for the quarter, compared to 1.8% in the same
period a year ago. Sales and marketing expenses excluding
share-based compensation expenses (non-GAAP) were 1.5% of total
revenues for the second quarter of 2015, compared to 1.8% in the
same period of 2014. The year-over-year decrease in sales and
marketing expenses as a percentage of total revenues for the second
quarter of 2015 was mainly due to the timing of certain marketing
activities.
- General and administrative expenses were RMB 82.7 million (US$13.3
million) for the second quarter of 2015, representing 5.0%
of total revenues, compared to 4.8% in the same period a year ago.
General and administrative expenses excluding share-based
compensation expenses and integration costs (non-GAAP) were 4.2% of
total revenues for the second quarter of 2015, compared to 3.7% in
the same period of 2014. The increase is due to a bad debt
provision related to a specific hotel project.
Income from Operations was RMB 127.8million (US$20.6
million) for the second quarter of 2015, compared to income
from operations of RMB 211.3 million
in the same period a year ago. Income from operations excluding
share-based compensation expenses and integration costs (non-GAAP)
for the second quarter of 2015 was RMB146.1
million (US$23.6 million), or
8.8% of total revenues, compared to RMB
236.4 million, or 13.9% 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 and higher pre-opening cost.
EBITDA
(non-GAAP)
|
|
|
|
|
|
|
|
|
(RMB/USD in
Millions)
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
|
RMB
|
USD
|
%Rev
|
V%
|
|
RMB
|
USD
|
%Rev
|
EBITDA
(Non-GAAP)
|
323.2
|
52.1
|
19.4%
|
-15.4%
|
|
382.1
|
61.6
|
22.5%
|
|
Net Foreign Exchange
(Gain)/Loss
|
-3.9
|
-0.6
|
-0.2%
|
|
|
0.1
|
0.0
|
0.0%
|
|
Share-Based
Compensation Expenses
|
16.6
|
2.7
|
1.0%
|
|
|
22.8
|
3.7
|
1.3%
|
|
Acquisition
Expenses
|
-
|
-
|
-
|
|
|
0.7
|
0.1
|
0.0%
|
|
Integration
Cost
|
1.6
|
0.3
|
0.1%
|
|
|
1.6
|
0.3
|
0.1%
|
|
Loss on Buy-Back of
Convertible Notes
|
1.6
|
0.3
|
0.1%
|
|
|
-
|
-
|
-
|
|
Loss on Fair Value
Change in Convertible Notes
|
17.0
|
2.7
|
1.0%
|
|
|
35.0
|
5.6
|
2.1%
|
Adjusted EBITDA
(Non-GAAP)
|
356.1
|
57.4
|
21.4%
|
-19.5%
|
|
442.3
|
71.3
|
26.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
|
RMB
|
USD
|
%Rev
|
V%
|
|
RMB
|
USD
|
%Rev
|
Net Income
(GAAP)
|
72.1
|
11.6
|
4.3%
|
-33.4%
|
|
108.2
|
17.4
|
6.4%
|
|
Net Foreign Exchange
(Gain)/Loss
|
-3.9
|
-0.6
|
-0.2%
|
|
|
0.1
|
0.0
|
0.0%
|
|
Share-Based
Compensation Expenses
|
16.6
|
2.7
|
1.0%
|
|
|
22.8
|
3.7
|
1.3%
|
|
Acquisition
Expenses
|
-
|
-
|
-
|
|
|
0.7
|
0.1
|
0.0%
|
|
Integration
Cost
|
1.6
|
0.3
|
0.1%
|
|
|
1.6
|
0.3
|
0.1%
|
|
Loss on Buy-Back of
Convertible Notes
|
1.6
|
0.3
|
0.1%
|
|
|
-
|
-
|
-
|
|
Loss on Fair Value
Change in Convertible Notes
|
17.0
|
2.7
|
1.0%
|
|
|
35.0
|
5.6
|
2.1%
|
Adjusted Net Income
(Non-GAAP)
|
105.0
|
16.9
|
6.3%
|
-37.7%
|
|
168.4
|
27.2
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
|
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 37.7%to RMB 105.0 million (US$16.9
million) for the second quarter of 2015, representing 6.3%
of total revenues compared to 9.9% 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.
[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 and
integration costs (non-GAAP) as a percentage of total
revenues.
|
Basic and Diluted
Earnings Per Share / Earnings Per ADS
|
|
Second Quarter
2015
|
|
Ordinary
Share
|
ADS Share
|
|
RMB
|
USD
|
RMB
|
USD
|
Basic
|
0.75
|
0.12
|
1.50
|
0.24
|
Diluted
|
0.75
|
0.12
|
1.50
|
0.24
|
|
|
|
|
|
Adjusted Basic
(Non-GAAP)
|
1.09
|
0.18
|
2.18
|
0.35
|
Adjusted Diluted
(Non-GAAP)
|
1.07
|
0.17
|
2.14
|
0.35
|
Cash Flow
Net operating cash inflow for the second quarter of 2015 was
RMB352.8million (US$56.9million), compared to RMB 365.8 million in the same period of 2014.
Capitalized expenditures for the second quarter of 2015 were
RMB 196.6 million (US$31.7 million), while related cash paid for
capital expenditures during the quarter was RMB124.6million (US$20.1
million).
Balance Sheet
As of June 30, 2015, Homeinns
Hotel Group had cash and cash equivalents of RMB 891.0million (US$143.7
million). The outstanding balance of convertible notes
issued in December 2010 (measured at
fair value) was RMB953.1million
(US$153.7 million).
Outlook
for Third 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 10% as leased-and-operated hotels and 90% as
franchised-and-managed hotels.
The Company expects its total revenues in the third quarter of
2015 to be in the range of RMB 1,830 million
to RMB1,860 million.
With respect to the full year, given its performance in the
first half of 2015 and the ongoing softer-than-expected market
conditions, the Company now expects total revenues for 2015 to be
in the range of RMB 6,550 million to RMB
6,650 million, below the initial guidance provided at the
beginning of the year.
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 RMB6.2000to US$1.00, the
noon buying rate for June 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 9 PM U.S. Eastern Time on Tuesday, August11, 2015
(9 AM Beijing/Hong Kong Time on
Wednesday, August 12, 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 August
18, 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:
|
9019076
|
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
(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
(f) income from operations excluding
share-based compensation expenses and acquisition and integration
costs
(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
(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
(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
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
Homeinns Hotel
Group
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
June 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
949,690
|
|
890,956
|
|
143,703
|
Restricted
cash
|
|
12,726
|
|
28,949
|
|
4,669
|
Accounts receivable,
net
|
|
95,501
|
|
112,484
|
|
18,143
|
Receivables from
related parties
|
|
3,476
|
|
5,698
|
|
919
|
Consumables
|
|
44,446
|
|
35,745
|
|
5,765
|
Prepayments and other
current assets
|
|
171,703
|
|
181,943
|
|
29,346
|
Deferred tax
assets
|
|
129,685
|
|
138,771
|
|
22,382
|
|
|
|
|
|
|
|
Total current
assets
|
|
1,407,227
|
|
1,394,546
|
|
224,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
|
|
11,709
|
|
14,740
|
|
2,377
|
Property and
equipment, net
|
|
4,000,041
|
|
3,885,761
|
|
626,736
|
Goodwill
|
|
2,323,241
|
|
2,323,241
|
|
374,716
|
Intangible assets,
net
|
|
1,126,636
|
|
1,101,225
|
|
177,617
|
Other
assets
|
|
90,995
|
|
111,422
|
|
17,971
|
Non-current deferred
tax assets
|
|
434,847
|
|
459,542
|
|
74,120
|
|
|
|
|
|
|
|
Total
assets
|
|
9,394,696
|
|
9,290,477
|
|
1,498,464
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
86,949
|
|
77,051
|
|
12,428
|
Payables to related
parties
|
|
4,166
|
|
6,838
|
|
1,103
|
Financial liability,
current portion2
|
|
1,029,577
|
|
953,055
|
|
153,719
|
|
|
|
|
|
|
|
Salaries and welfare
payable
|
|
228,127
|
|
168,940
|
|
27,248
|
Income tax
payable
|
|
117,830
|
|
61,316
|
|
9,890
|
Other taxes
payable
|
|
34,074
|
|
34,356
|
|
5,541
|
Deferred
revenues
|
|
225,417
|
|
226,954
|
|
36,605
|
|
|
|
|
|
|
|
Other unpaid and
accruals
|
|
255,460
|
|
257,644
|
|
41,555
|
Other
payables
|
|
742,853
|
|
732,535
|
|
118,151
|
Deferred tax
liability
|
|
60,764
|
|
60,764
|
|
9,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
2,785,217
|
|
2,579,453
|
|
416,041
|
|
|
|
|
|
|
|
Deferred
rental
|
|
705,284
|
|
755,024
|
|
121,778
|
Deferred
revenues
|
|
51,289
|
|
48,060
|
|
7,752
|
Deposits due to
franchisees
|
|
144,892
|
|
149,852
|
|
24,170
|
Other long term
payables
|
|
13,018
|
|
9,229
|
|
1,489
|
Unfavorable lease
liabilities
|
|
331,282
|
|
313,113
|
|
50,502
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
292,575
|
|
280,818
|
|
45,293
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,323,557
|
|
4,135,549
|
|
667,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary shares
(US$0.005 par value; 200,000,000 shares authorized, 95,703,960 and
96,339,900 shares issued and outstanding as of December 31, 2014
and June 30 2015, respectively)
|
|
3,698
|
|
3,719
|
|
600
|
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
3,191,076
|
|
3,241,809
|
|
522,872
|
Statutory
reserves
|
|
256,013
|
|
256,013
|
|
41,292
|
|
|
|
|
|
|
|
Retained
earnings
|
|
1,604,246
|
|
1,638,737
|
|
264,312
|
|
|
|
|
|
|
|
Less: Treasury stock
(0 and 37,696 shares as of December 31, 2014
and June 30 2015, respectively)
|
|
-
|
|
(2,759)
|
|
(445)
|
|
|
|
|
|
|
|
Total Home Inns
shareholders' equity
|
|
5,055,033
|
|
5,137,519
|
|
828,631
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
16,106
|
|
17,409
|
|
2,808
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
5,071,139
|
|
5,154,928
|
|
831,439
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
9,394,696
|
|
9,290,477
|
|
1,498,464
|
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.2000 on June 30, 2015, representing the certificated
exchange rate published by the Federal Reserve Board.
|
Note 2:Financial
liabilities represent convertible notes measured at fair
value.
|
Homeinns Hotel
Group
|
|
|
|
|
|
Unaudited
Condensed Consolidated Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
June 30, 2014
|
|
March 31,
2015
|
|
June 30, 2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Leased-and-operated hotels
|
|
1,459,489
|
|
1,244,734
|
|
1,410,555
|
|
227,509
|
Franchised-and-managed hotels
|
|
239,113
|
|
225,733
|
|
256,728
|
|
41,408
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
1,698,602
|
|
1,470,467
|
|
1,667,283
|
|
268,917
|
Less: Business
tax and related surcharges
|
|
(104,588)
|
|
(88,351)
|
|
(98,390)
|
|
(15,869)
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
1,594,014
|
|
1,382,116
|
|
1,568,893
|
|
253,048
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
Leased-and-operated hotel costs –
|
|
|
|
|
|
|
|
Rents and
utilities
|
|
(509,722)
|
|
(583,473)
|
|
(522,581)
|
|
(84,287)
|
Personnel
costs
|
|
(269,365)
|
|
(276,076)
|
|
(274,804)
|
|
(44,323)
|
Depreciation
and amortization
|
|
(186,823)
|
|
(195,595)
|
|
(194,646)
|
|
(31,395)
|
Consumables,
food and beverage
|
|
(85,765)
|
|
(78,239)
|
|
(97,175)
|
|
(15,673)
|
Others
|
|
(165,071)
|
|
(130,786)
|
|
(167,466)
|
|
(27,011)
|
|
|
|
|
|
|
|
|
Total leased-and-operated hotel costs
|
|
(1,216,746)
|
|
(1,264,169)
|
|
(1,256,672)
|
|
(202,689)
|
|
|
|
|
|
|
|
|
Personnel costs of Franchised-and-managed hotels
|
|
(57,284)
|
|
(44,013)
|
|
(65,966)
|
|
(10,640)
|
Sales and marketing expenses
|
|
(30,703)
|
|
(22,250)
|
|
(25,863)
|
|
(4,171)
|
General and administrative expenses
|
|
(81,968)
|
|
(73,916)
|
|
(82,735)
|
|
(13,344)
|
|
|
|
|
|
|
|
|
Total
operating costs and expenses
|
|
(1,386,701)
|
|
(1,404,348)
|
|
(1,431,236)
|
|
(230,844)
|
|
|
|
|
|
|
|
|
Other
income/(loss)
|
|
3,967
|
|
11,525
|
|
(9,826)
|
|
(1,585)
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
operations
|
|
211,280
|
|
(10,707)
|
|
127,831
|
|
20,619
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,677
|
|
4,339
|
|
4,055
|
|
654
|
Interest
expenses
|
|
(13,064)
|
|
(5,667)
|
|
(5,456)
|
|
(880)
|
Gain/(loss)
from equity investment
|
|
189
|
|
(98)
|
|
(920)
|
|
(148)
|
Loss on change
in fair value of convertible notes
|
|
(35,016)
|
|
(9,583)
|
|
(17,016)
|
|
(2,745)
|
Loss on buy-back of
convertible notes
|
|
-
|
|
(91)
|
|
(1,591)
|
|
(257)
|
Non-operating
income
|
|
13,266
|
|
17
|
|
10,575
|
|
1,706
|
Foreign
exchange (loss)/gain, net
|
|
(109)
|
|
(4,061)
|
|
3,914
|
|
631
|
|
|
|
|
|
|
|
|
Income/(loss) before income tax expenses and
noncontrolling interests
|
|
178,223
|
|
(25,851)
|
|
121,392
|
|
19,580
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(68,410)
|
|
(10,946)
|
|
(48,802)
|
|
(7,871)
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
109,813
|
|
(36,797)
|
|
72,590
|
|
11,709
|
|
|
|
|
|
|
|
|
Less:Net income
attributable to noncontrolling interests
|
|
(1,647)
|
|
(774)
|
|
(528)
|
|
(85)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) attributable to ordinary
shareholders
|
|
108,166
|
|
(37,571)
|
|
72,062
|
|
11,624
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
— Basic
|
|
1.14
|
|
(0.39)
|
|
0.75
|
|
0.12
|
|
|
|
|
|
|
|
|
— Diluted
|
|
1.13
|
|
(0.39)
|
|
0.75
|
|
0.12
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
— Basic
|
|
95,285
|
|
95,776
|
|
96,215
|
|
96,215
|
|
|
|
|
|
|
|
|
— Diluted
|
|
95,407
|
|
95,776
|
|
96,215
|
|
96,215
|
|
|
|
|
|
|
|
|
Share-based
compensation expense was included in the statement of operations as
follows:
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs – Personnel costs
|
|
1,889
|
|
2,016
|
|
1,511
|
|
244
|
Personnel costs of
Franchised-and-managed hotels
|
|
3,156
|
|
3,817
|
|
3,057
|
|
493
|
Sales and marketing
expenses
|
|
154
|
|
241
|
|
151
|
|
24
|
General and
administrative expenses
|
|
17,583
|
|
18,227
|
|
11,877
|
|
1,916
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.2000 on June 30, 2015, representing the certificated
exchange rate published by the Federal Reserve Board.
|
Homeinns Hotel
Group
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2015
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Acquisition
expenses
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(1,256,672)
|
|
75.4%
|
|
1,511
|
|
-
|
|
1,322
|
|
0.2%
|
|
(1,253,839)
|
|
75.2%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(65,966)
|
|
4.0%
|
|
3,057
|
|
-
|
|
-
|
|
0.2%
|
|
(62,909)
|
|
3.8%
|
Sales and marketing
expenses
|
|
(25,863)
|
|
1.6%
|
|
151
|
|
-
|
|
-
|
|
0.0%
|
|
(25,712)
|
|
1.5%
|
General and
administrative expenses
|
|
(82,735)
|
|
5.0%
|
|
11,877
|
|
-
|
|
317
|
|
0.7%
|
|
(70,541)
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(1,431,236)
|
|
85.8%
|
|
16,596
|
|
-
|
|
1,639
|
|
1.1%
|
|
(1,413,001)
|
|
84.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
127,831
|
|
7.7%
|
|
16,596
|
|
-
|
|
1,639
|
|
1.1%
|
|
146,066
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2015
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Acquisition
expenses
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
US$
'000
|
|
|
|
US$
'000
|
|
|
|
US$
'000
|
|
|
|
US$
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(202,689)
|
|
75.4%
|
|
244
|
|
-
|
|
213
|
|
0.2%
|
|
(202,232)
|
|
75.2%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(10,640)
|
|
4.0%
|
|
493
|
|
-
|
|
-
|
|
0.2%
|
|
(10,147)
|
|
3.8%
|
Sales and marketing
expenses
|
|
(4,171)
|
|
1.6%
|
|
24
|
|
-
|
|
-
|
|
0.0%
|
|
(4,147)
|
|
1.5%
|
General and
administrative expenses
|
|
(13,344)
|
|
5.0%
|
|
1,916
|
|
-
|
|
51
|
|
0.7%
|
|
(11,377)
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(230,844)
|
|
85.8%
|
|
2,677
|
|
-
|
|
264
|
|
1.1%
|
|
(227,903)
|
|
84.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
20,619
|
|
7.7%
|
|
2,677
|
|
-
|
|
264
|
|
1.1%
|
|
23,560
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
March 31, 2015
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Acquisition
expenses
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(1,264,169)
|
|
86.0%
|
|
2,016
|
|
-
|
|
1,179
|
|
0.2%
|
|
(1,260,974)
|
|
85.8%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(44,013)
|
|
3.0%
|
|
3,817
|
|
-
|
|
-
|
|
0.3%
|
|
(40,196)
|
|
2.7%
|
Sales and marketing
expenses
|
|
(22,250)
|
|
1.5%
|
|
241
|
|
-
|
|
-
|
|
0.0%
|
|
(22,009)
|
|
1.5%
|
General and
administrative expenses
|
|
(73,916)
|
|
5.0%
|
|
18,227
|
|
-
|
|
317
|
|
1.3%
|
|
(55,372)
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
(1,404,348)
|
|
95.5%
|
|
24,301
|
|
-
|
|
1,496
|
|
1.8%
|
|
(1,378,551)
|
|
93.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/income from
operations
|
|
(10,707)
|
|
0.7%
|
|
24,301
|
|
-
|
|
1,496
|
|
1.8%
|
|
15,090
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2014
|
|
|
GAAP
Result
|
|
%of Total
Revenue
|
|
Share-based
Compensation
|
|
Acquisition
expenses
|
|
Integration
cost
|
|
%of Total
Revenue
|
|
Non-GAAP
Result
|
|
%of Total
Revenue
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
RMB
'000
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased-and-operated
hotel costs
|
|
(1,216,746)
|
|
71.6%
|
|
1,889
|
|
-
|
|
1,328
|
|
0.2%
|
|
(1,213,529)
|
|
71.4%
|
Personnel costs of
Franchised-and-managed hotels
|
|
(57,284)
|
|
3.4%
|
|
3,156
|
|
-
|
|
-
|
|
0.2%
|
|
(54,128)
|
|
3.2%
|
Sales and marketing
expenses
|
|
(30,703)
|
|
1.8%
|
|
154
|
|
-
|
|
-
|
|
0.0%
|
|
(30,549)
|
|
1.8%
|
General and
administrative expenses
|
|
(81,968)
|
|
4.8%
|
|
17,583
|
|
691
|
|
317
|
|
1.1%
|
|
(63,377)
|
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses
|
|
(1,388,701)
|
|
81.6%
|
|
22,782
|
|
691
|
|
1,645
|
|
1.5%
|
|
(1,363,583)
|
|
80.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
211,280
|
|
12.4%
|
|
22,782
|
|
691
|
|
1,645
|
|
1.5%
|
|
236,398
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.2000 on June 30, 2015, representing the certificated
exchange rate published by the Federal Reserve Board.
|
Homeinns Hotel
Group
|
|
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
June 30, 2014
|
|
March 31, 2015
|
|
June 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to ordinary shareholders (GAAP)
|
|
108,166
|
|
(37,571)
|
|
72,062
|
|
11,624
|
Foreign exchange
loss/(gain), net
|
|
109
|
|
4,061
|
|
(3,914)
|
|
(631)
|
Share-based
compensation
|
|
22,782
|
|
24,301
|
|
16,596
|
|
2,677
|
Acquisition
expenses
|
|
691
|
|
-
|
|
-
|
|
-
|
Integration
cost
|
|
1,645
|
|
1,496
|
|
1,639
|
|
264
|
Loss on buy-back of
convertible notes
|
|
-
|
|
91
|
|
1,591
|
|
257
|
Loss on change in
fair value of convertible notes
|
|
35,016
|
|
9,583
|
|
17,016
|
|
2,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to ordinary shareholders
(Non-GAAP)
|
|
168,409
|
|
1,961
|
|
104,990
|
|
16,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
June 30,
2014
|
|
March 31,
2015
|
|
June 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Earnings per share
(GAAP)
|
|
|
|
|
|
|
|
— Basic
|
|
1.14
|
|
(0.39)
|
|
0.75
|
|
0.12
|
|
|
|
|
|
|
|
|
— Diluted
|
|
1.13
|
|
(0.39)
|
|
0.75
|
|
0.12
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
|
|
|
|
— Basic
|
|
95,285
|
|
95,776
|
|
96,215
|
|
96,215
|
|
|
|
|
|
|
|
|
|
— Diluted
|
|
95,407
|
|
95,776
|
|
96,215
|
|
96,215
|
Adjusted earnings
per share (Non-GAAP)
|
|
|
|
|
|
|
|
— Basic
|
|
1.77
|
|
0.02
|
|
1.09
|
|
0.18
|
|
|
|
|
|
|
|
|
— Diluted
|
|
1.69
|
|
0.02
|
|
1.07
|
|
0.17
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
— Basic
|
|
95,285
|
|
95,776
|
|
96,215
|
|
96,215
|
|
|
|
|
|
|
|
|
|
— Diluted
|
|
102,862
|
|
95,776
|
|
102,917
|
|
102,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The
conversion of Renminbi ("RMB") into United States dollars ("US$")
is based on rate of US$1.00=RMB6.2000 on June 30, 2015, representing the certificated
exchange rate published by the Federal Reserve Board.
|
Note 2: The non-GAAP
adjustment items do not include the tax impact.
|
Homeinns Hotel
Group
|
|
|
|
Reconciliation of
GAAP and Non-GAAP Results (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
June 30, 2014
|
|
March 31, 2015
|
|
June 30,
2015
|
|
|
RMB
'000
|
|
RMB
'000
|
|
RMB
'000
|
|
US$
'000
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
109,813
|
|
(36,797)
|
|
72,590
|
|
11,709
|
Interest
income
|
|
(1,677)
|
|
(4,339)
|
|
(4,055)
|
|
(654)
|
Interest
expenses
|
|
13,064
|
|
5,667
|
|
5,456
|
|
880
|
Income tax
expense
|
|
68,410
|
|
10,946
|
|
48,802
|
|
7,871
|
Depreciation and
amortization
|
|
192,455
|
|
201,508
|
|
200,383
|
|
32,320
|
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
|
382,065
|
|
176,985
|
|
323,176
|
|
52,126
|
|
|
|
|
|
|
|
|
|
Foreign exchange
loss/(gain), net
|
|
109
|
|
4,061
|
|
(3,914)
|
|
(631)
|
Share-based
compensation
|
|
22,782
|
|
24,301
|
|
16,596
|
|
2,677
|
Acquisition
expenses
|
|
691
|
|
-
|
|
-
|
|
-
|
Integration
cost
|
|
1,645
|
|
1,496
|
|
1,639
|
|
264
|
Loss on buy-back of
convertible notes
|
|
-
|
|
91
|
|
1,591
|
|
257
|
Loss on change in fair value of convertible notes
|
|
35,016
|
|
9,583
|
|
17,016
|
|
2,745
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Non-GAAP)
|
|
442,308
|
|
216,517
|
|
356,104
|
|
57,438
|
|
|
|
|
|
|
|
|
|
%of total
revenue
|
|
26.0%
|
|
14.7%
|
|
21.4%
|
|
21.4%
|
|
|
|
|
|
|
|
|
|
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
|
|
|
June 30,
2014
|
March 31,
2015
|
June 30,
2015
|
|
|
Group
|
|
Group
|
|
Group
|
|
Total Hotels in
operation:
|
|
2,374
|
|
2,661
|
|
2,750
|
|
Leased-and-operated
hotels
|
|
897
|
|
912
|
|
915
|
|
Franchised-and-managed
hotels
|
|
1,477
|
|
1,749
|
|
1,835
|
|
|
|
|
|
|
|
|
|
Total
rooms
|
|
275,050
|
|
300,866
|
|
309,414
|
|
|
|
|
|
|
|
|
|
Occupancy rate (as a percentage)
|
|
86.7%
|
|
79.3%
|
|
83.3%
|
|
|
|
|
|
|
|
|
|
Average daily rate
(in RMB)
|
|
164
|
|
151
|
|
163
|
|
|
|
|
|
|
|
|
|
RevPAR (in
RMB)
|
|
142
|
|
120
|
|
136
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
June 30,
2014
|
June 30,
2015
|
|
|
|
|
Group
|
|
Group
|
|
|
|
Total Hotels in
operation:
|
|
2,103
|
|
2,103
|
|
|
|
Leased-and-operated
hotels
|
|
874
|
|
874
|
|
|
|
Franchised-and-managed
hotels
|
|
1,229
|
|
1,229
|
|
|
|
|
|
|
|
|
|
|
|
Total
rooms
|
|
242,194
|
|
242,194
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy rate (as a
percentage)
|
|
88.1%
|
|
84.7%
|
|
|
|
|
|
|
|
|
|
|
|
Average daily rate
(in RMB)
|
|
164
|
|
163
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR (in
RMB)
|
|
145
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
"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-second-quarter-2015-financial-results-300126774.html
SOURCE Homeinns