SHANGHAI, Dec. 11, 2014 /PRNewswire/ -- eHi Car Services Limited ("eHi" or the "Company") (NYSE: EHIC), a leading car rentals and car services provider in China, today announced its unaudited financial results for the third fiscal quarter ended September 30, 2014. In November 2014, eHi completed its initial public offering of 10,000,000 American depositary shares ("ADSs"), each representing two Class A common shares of the Company, on the New York Stock Exchange along with private placements concurrent with the offering.
Third Quarter 2014 Financial and Operating Highlights
Net revenues increased 48.4% year over year, from RMB148.3 million to RMB220.1 million (US$35.9 million[1])
Three months ended Sep. 30
Three months ended Sep. 30 | Year-Over-Year | ||
(RMB '000) | 2013 | 2014 | Comparison |
Car rentals | 98,491 | 155,512 | 57.9% |
Car services | 49,849 | 64,603 | 29.6% |
Total Net Revenues | 148,340 | 220,115 | 48.4% |
- Non-GAAP adjusted EBITDA[2] was up 291.4% year over year, from RMB19.5 million to RMB76.4 million (US$12.4 million)
- Non-GAAP adjusted EBITDA margin was up 163.8% year over year, from 13.2% to 34.7%
- Net loss decreased by 30.3% year over year, from RMB38.7 million down to RMB26.9 million (US$4.4 million)
- Total period-end fleet size[3] as of the end of the third quarter increased by 59.9% year over year, from 11,359 to 18,159 vehicles
- Average available fleet size[4] increased by 60.3% year over year, from 10,241 to 16,419 vehicles
- Fleet utilization rate[5] for car rentals was 70.3% with total fleet RevPAC[6] of RMB146
Mr. Ray Zhang, eHi's chief executive officer, said, "This is an exciting time for eHi as we turn from our successful listing on the New York Stock Exchange last month and look to implement our overall growth strategy, while working closely with our strategic partners, Enterprise and Ctrip. We believe our business model provides us with ideal flexibility and scalability to capture the emerging car rentals and car services market opportunities in China, which are driven by evolving demands from both consumer and corporate users."
Mr. Colin Sung, the Company's chief financial officer, said, "Our third quarter results reflect the rapid overall growth we have managed for the past 11 quarters and are in line with our revenue projections as we expand our operations and seek to maintain our industry-leading operating efficiency and fleet utilization rate. Our revenue increases this quarter were driven by our fleet expansion and broader geographic coverage. Furthermore, we narrowed our net loss on a year-over-year basis."
Third Quarter Results
Net revenues for the third quarter of 2014 were RMB220.1 million (US$35.9 million), up 48.4% year over year, which was primarily attributable to increases in net revenues from both car rentals and car services.
Revenues from car rentals for the third quarter of 2014 were RMB155.5 million (US$25.3 million), up 57.9% year over year, primarily driven by an increase in the Company's average available fleet size.
Revenues from car services for the third quarter of 2014 were RMB64.6 million (US$10.5 million), up 29.6% year over year, primarily driven by increased demand from the Company's new and existing corporate customers.
Vehicle operating expenses for the third quarter of 2014 were RMB183.0 million (US$29.8 million), up 29.6% year over year, primarily due to increases in labor, insurance and depreciation expenses.
Selling, general and administrative expenses for the third quarter of 2014 were RMB42.3 million (US$6.9 million), up 3.0% year over year, primarily due to certain employee related costs.
Loss from operations for the third quarter of 2014 was RMB5.0 million (US$0.8 million), compared to loss from operations of RMB32.8 million (US$5.3 million) in the third quarter of 2013.
Net loss for the third quarter of 2014 was RMB26.9 million (US$4.4 million), compared to net loss of RMB38.7 million (US$6.3 million) for the third quarter of 2013.
Non-GAAP adjusted EBITDA for the third quarter of 2014 was RMB76.4 million (US$12.4 million), up 291.4% year over year, mainly due to the economic scaling with increasing fleet size. Non-GAAP adjusted EBITDA margin for the third quarter of 2014 was 34.7%, compared to 13.2% for the third quarter of 2013.
First Nine Months 2014 Results
Net revenues for the first nine months of 2014 were RMB604.7 million (US$98.5 million), up 47.8% compared to the first nine months of 2013, primarily due to the Company's increased fleet size, geographic expansion, and increased demand from new and existing corporate customers.
Revenues from car rentals for the first nine months of 2014 were RMB423.1 million (US$68.9 million), up 54.6% compared to the first nine months of 2013, driven by increases in the Company's average available fleet size.
Revenues from car services for the first nine months of 2014 were RMB181.6 million (US$29.6 million), up 34.1% compared to the first nine months of 2013, driven by increased demand from new and existing corporate customers.
Vehicle operating expenses for the first nine months of 2014 were RMB499.0 million (US$81.3 million), up 31.6% compared to the first nine months of 2013, primarily due to labor, insurance and depreciation expenses.
The Company disposed of 1,019 used vehicles during the nine months ended September 30, 2014 through various sales channels and recorded a gain of RMB0.6 million. The gain was recognized as an adjustment to the vehicle related depreciation expense as part of the Company's vehicle operating expenses.
Selling, general and administrative expenses for the first nine months of 2014 were RMB114.3 million (US$18.6 million), down 0.9% compared to the first nine months of 2013, primarily as a result of the Company's cost control and marketing efficiency.
Profit from operations for the first nine months of 2014 was RMB4.2 million (US$0.7 million), compared to loss from operations ofRMB82.4 million (US$13.4 million) in the first nine months of 2013.
Net loss for the first nine months of 2014 was RMB47.6 million (US$7.8 million), compared to net loss of RMB123.7 million (US$20.2 million) for the first nine months of 2013.
Non-GAAP adjusted EBITDA for the first nine months of 2014 was RMB209.4 million (US$34.5 million), up 221.2% compared to the first nine months of 2013. Non-GAAP adjusted EBITDA margin for the first nine months of 2014 was 34.6%, compared to 15.9% for the first nine months of 2013.
As of September 30, 2014, the Company's cash and cash equivalents balance was RMB207.4 million (US$33.8 million).
Outlook
The Company estimates that its fiscal year 2014 net revenues will be in the range of RMB840 million to RMB845 million, which would represent an increase of approximately 48.3% to 49.2% from RMB566.4 million in 2013. This forecast reflects the Company's current and preliminary view, which is subject to change.
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