GDS Reports Fourth Quarter and Full Year 2018 Results
Fourth Quarter 2018 Financial Highlights
- Net revenue increased by 64.1% year-over-year (“Y-o-Y”) to
RMB829.5 million (US$120.6 million ) in the fourth quarter of 2018 (4Q2017:RMB505.5 million ). - Service revenue increased by 67.9% Y-o-Y to
RMB829.1 million (US$120.6 million ) in the fourth quarter of 2018 (4Q2017:RMB493.7 million ). - Net loss was
RMB122.9 million (US$17.9 million ) in the fourth quarter of 2018, compared with a net loss ofRMB116.5 million in the fourth quarter of 2017. - Adjusted EBITDA (non-GAAP) increased by 114.2% Y-o-Y to
RMB331.8 million (US$48.3 million ) in the fourth quarter of 2018 (4Q2017:RMB154.9 million ). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release. - Adjusted EBITDA margin (non-GAAP) increased to 40.0% in the fourth quarter of 2018 (4Q2017: 30.6%).
Full Year 2018 Financial Highlights
- Net revenue increased by 72.8% to
RMB2,792.1 million (US$406.1 million ) in 2018 (2017:RMB1,616.2 million ). - Service revenue increased by 73.4% to
RMB2,759.5 million (US$401.4 million ) in 2018 (2017:RMB1,591.9 million ). - Net loss was
RMB430.3 million (US$62.6 million ) in 2018 (2017:RMB326.9 million ). - Adjusted EBITDA (non-GAAP) increased by 104.3% to
RMB1,046.5 million (US$152.2 million ) in 2018 (2017:RMB512.3 million ). - Adjusted EBITDA margin (non-GAAP) increased to 37.5% in 2018 (2017: 31.7%).
Operating Highlights
- Total area committed increased by 79.2% Y-o-Y to 183,743 square meters (“sqm”) as of
December 31, 2018 (December 31, 2017 : 102,528 sqm). - Area utilized (or revenue generating space) increased by 75.5% Y-o-Y to 108,326 sqm as of
December 31, 2018 (December 31, 2017 : 61,713 sqm). - Area in service increased by 58.4% Y-o-Y to 160,356 sqm as of
December 31, 2018 (December 31, 2017 : 101,258 sqm). - Commitment rate for area in service was 94.9% as of
December 31, 2018 (December 31, 2017 : 91.8%), and utilization rate was 67.6% as ofDecember 31, 2018 (December 31, 2017 : 60.9%). - Area under construction was 65,201 sqm as of
December 31, 2018 (December 31, 2017 : 24,505 sqm). - Pre-commitment rate for area under construction was 48.4% as of
December 31, 2018 (December 31, 2017 : 39.0%).
“2018 was an outstanding year for GDS marked by accelerated growth and robust results across our organization,” said Mr.
“We are pleased to report over 70% revenue and over 100% adjusted EBITDA growth for 2018, beating our revised guidance,” commented Mr.
Fourth Quarter 2018 Financial Results
Net revenue in the fourth quarter of 2018 was
Cost of revenue in the fourth quarter of 2018 was
Gross profit was
Adjusted Net Operating Income (“Adjusted NOI”) (non-GAAP) is defined as net loss (computed in accordance with GAAP), excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, accretion expenses for asset retirement costs, share-based compensation expenses, selling and marketing expenses, general and administrative expenses, research and development expenses, foreign currency exchange loss (gain) and others. Adjusted NOI was
Adjusted NOI margin (non-GAAP) was 49.8% in the fourth quarter of 2018, compared with 44.9% in the fourth quarter of 2017, and 48.1% in the third quarter of 2018. The increase over the previous quarter was mainly due to improved power efficiency achieved in the winter and less business coming from lower-margin IT equipment sales.
Selling and marketing expenses, excluding share-based compensation expenses of
General and administrative expenses, excluding share-based compensation expenses of
Research and development costs were
Net interest expenses for the fourth quarter of 2018 were
Foreign currency exchange gain for the fourth quarter of 2018 was
Net loss in the fourth quarter of 2018 was
Adjusted EBITDA (non-GAAP) is defined as net loss excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, accretion expenses for asset retirement costs and share-based compensation expenses. Adjusted EBITDA was
Adjusted EBITDA margin (non-GAAP) was 40.0% in the fourth quarter of 2018, compared with 30.6% in the fourth quarter of 2017, and 39.5% in the third quarter of 2018. The increase over the previous quarter was mainly due to improved power efficiency achieved in the winter and less business coming from lower-margin IT equipment sales, as well as leverage effect realized on general and administrative expenses, partially offset by less positive impact from foreign currency exchange gain.
Basic and diluted loss per ordinary share in the fourth quarter of 2018 was
Basic and diluted loss per American Depositary Share (“ADS”) in the fourth quarter of 2018 was
Full Year 2018 Financial Results
Net revenue in 2018 was
Cost of revenue in 2018 was
Gross profit was
Sales and marketing expenses, excluding share-based compensation expenses of
Research and development costs were
Net interest expenses in 2018 were
Adjusted EBITDA was
Net loss in 2018 was
Basic and diluted loss per ordinary share in 2018 was
Sales
Total area committed at the end of the fourth quarter of 2018 was 183,743 sqm, compared with 102,528 sqm at the end of the fourth quarter of 2017 and 161,799 sqm at the end of the third quarter of 2018, an increase of 79.2% Y-o-Y and 13.6% quarter-over-quarter (“Q-o-Q”). In the fourth quarter of 2018, net additional total area committed was 21,944 sqm, including significant contributions from the SH8,
Data Center Resources
Area in service at the end of the fourth quarter of 2018 was 160,356 sqm, compared with 101,258 sqm at the end of the fourth quarter of 2017 and 147,342 sqm at the end of the third quarter of 2018, an increase of 58.4% Y-o-Y and 8.8% Q-o-Q. In the fourth quarter of 2018, SH6 and BJ5 Phase 1 centers came into service.
Area under construction at the end of the fourth quarter of 2018 was 65,201 sqm, compared with 24,505 sqm at the end of the fourth quarter of 2017 and 43,718 sqm at the end of the third quarter of 2018, an increase of 166.1% Y-o-Y and 49.1% Q-o-Q. In the fourth quarter of 2018, as previously disclosed, construction has commenced on KS2 & KS3 data centers. In addition, the Company has initiated construction on
Commitment rate of area in service was 94.9% at the end of the fourth quarter of 2018, compared with 91.8% at the end of the fourth quarter of 2017 and 96.3% at the end of third quarter 2018. Pre-commitment rate of area under construction was 48.4% at the end of the fourth quarter of 2018, compared with 39.0% at the end of the fourth quarter of 2017 and 45.4% at the end of the third quarter of 2018.
Area utilized at the end of the fourth quarter of 2018 was 108,326 sqm, compared with 61,713 sqm at the end of the fourth quarter of 2017 and 100,679 sqm at the end of the third quarter of 2018, an increase of 75.5% Y-o-Y and 7.6% Q-o-Q. Net additional area utilized was 7,647 sqm in the fourth quarter, which mainly came from the additional area utilized in the SH8 and SZ5 Phase 2 data centers.
Utilization rate of area in service was 67.6% at the end of the fourth quarter of 2018, compared with 60.9% at the end of the fourth quarter of 2017 and 68.3% at the end of the third quarter of 2018.
Liquidity
As of
Land Acquisition
In
Business Outlook
For the full year of 2019, the Company expects its total revenues to be between
This forecast reflects the Company’s current and preliminary view on the current business situation and market conditions, which are subject to change.
Conference Call
Management will hold a conference call at
United States: | 1-845-675-0437 | ||||
International: | +65-6713-5090 | ||||
Hong Kong: | +852-3018-6771 | ||||
China: | 400-620-8038 | ||||
Conference ID: | 7727028 |
A telephone replay will be available approximately two hours after the call until
United States: | 1-646-254-3697 | ||||
International: | +61-2-8199-0299 | ||||
Hong Kong: | +852-3051-2780 | ||||
China: | 400-632-2162 | ||||
Replay Access Code: | 7727028 |
A live and archived webcast of the conference call will be available on the Company's investor relations website at investors.gds-services.com.
Non-GAAP Disclosure
Our management and board of directors use adjusted NOI, adjusted NOI margin, adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures, to evaluate our operating performance, establish budgets and develop operational goals for managing our business. In particular, we believe that the exclusion of the expenses eliminated in calculating adjusted NOI and adjusted EBITDA can provide a useful measure of our core operating performance.
We also present these non-GAAP measures because we believe these non-GAAP measures are frequently used by securities analysts, investors and other interested parties as measures of the financial performance of companies in our industry.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for net income (loss), cash flows used in operating activities or other consolidated statements of operations and cash flow data prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures instead of their nearest GAAP equivalent. First, adjusted EBITDA, adjusted EBITDA margin, adjusted NOI, and adjusted NOI margin are not substitutes for net income (loss), cash flows used in operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. Second, other companies may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial measures as tools for comparison. Finally, these non-GAAP financial measures do not reflect the impact of net interest expenses, incomes tax benefits (expenses), depreciation and amortization, accretion expenses for asset retirement costs, and share-based compensation expenses, each of which have been and may continue to be incurred in our business.
We mitigate these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance.
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.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of
Statement Regarding Preliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.
About
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 “aim,” “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “guidance,” “intend,” “is/are likely to,” “may,” “ongoing,” “plan,” “potential,” “target,” “will,” and similar statements. Among other things, statements that are not historical facts, including statements about GDS Holdings’ beliefs and expectations regarding the growth of its businesses and its revenue for the full fiscal year, the business outlook and quotations from management in this announcement, as well as GDS Holdings’ strategic and operational plans, are or contain forward-looking statements.
For investor and media inquiries, please contact:
Phone: +86 (21) 2033-0295
Email: ir@gds-services.com
Phone: +86 (10) 5730-6200
Email: GDS@tpg-ir.com
Phone: +1 (212) 481-2050
Email: GDS@tpg-ir.com
GDS HOLDINGS LIMITED | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||
As of | As of | ||||||
December 31, 2017 | December 31, 2018 | ||||||
RMB | RMB | US$ | |||||
Assets | |||||||
Current assets | |||||||
Cash | 1,873,446 | 2,161,622 | 314,395 | ||||
Accounts receivable, net of allowance for doubtful accounts | 364,654 | 536,842 | 78,080 | ||||
Value-added-tax (“VAT”) recoverable | 112,067 | 163,476 | 23,777 | ||||
Prepaid expenses and other current assets | 103,861 | 175,456 | 25,519 | ||||
Total current assets | 2,454,028 | 3,037,396 | 441,771 | ||||
Property and equipment, net | 8,165,601 | 13,994,945 | 2,035,480 | ||||
Goodwill and intangible assets, net | 1,919,221 | 2,234,462 | 324,989 | ||||
Other non-current assets | 605,717 | 1,618,440 | 235,392 | ||||
Total assets | 13,144,567 | 20,885,243 | 3,037,632 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Short-term borrowings and current portion of long-term borrowings | 790,484 | 1,283,320 | 186,651 | ||||
Accounts payable | 1,110,411 | 1,508,020 | 219,332 | ||||
Accrued expenses and other payables | 424,233 | 549,641 | 79,942 | ||||
Capital lease and other financing obligations, current | 97,943 | 166,898 | 24,274 | ||||
Total current liabilities | 2,423,071 | 3,507,879 | 510,199 | ||||
Long-term borrowings, excluding current portion | 3,459,765 | 5,203,708 | 756,848 | ||||
Convertible bonds payable | 0 | 2,004,714 | 291,574 | ||||
Capital lease and other financing obligations, non-current | 2,303,044 | 4,134,327 | 601,313 | ||||
Other long-term liabilities | 483,175 | 512,690 | 74,568 | ||||
Total liabilities | 8,669,055 | 15,363,318 | 2,234,502 | ||||
Shareholders' equity | |||||||
Ordinary shares | 320 | 341 | 50 | ||||
Additional paid-in capital | 5,861,445 | 7,275,945 | 1,058,242 | ||||
Accumulated other comprehensive loss | (200,688 | ) | (139,254 | ) | (20,254 | ) | |
Accumulated deficit | (1,185,565 | ) | (1,615,107 | ) | (234,908 | ) | |
Total shareholders’ equity | 4,475,512 | 5,521,925 | 803,130 | ||||
Commitments and contingencies | |||||||
Total liabilities and shareholders' equity | 13,144,567 | 20,885,243 | 3,037,632 | ||||
Note: | |||
1) | The Company adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers on January 1, 2018 using the cumulative effect method and made an adjustment to the opening balance of accumulated deficit at January 1, 2018 of RMB0.7 million. Therefore, the comparative information was not adjusted. | ||
GDS HOLDINGS LIMITED | ||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | ||||||||||||||||||||||||||||||
except for number of shares and per share data) | ||||||||||||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||||||||||||
December 31, | September 30, | December 31, 2018 | December 31, 2017 | December 31, 2018 | ||||||||||||||||||||||||||
2017 | 2018 | |||||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||||||
Net revenue | ||||||||||||||||||||||||||||||
Service revenue | 493,663 | 752,620 | 829,050 | 120,580 | 1,591,860 | 2,759,490 | 401,351 | |||||||||||||||||||||||
Equipment sales | 11,813 | 10,201 | 471 | 69 | 24,306 | 32,587 | 4,740 | |||||||||||||||||||||||
Total net revenue | 505,476 | 762,821 | 829,521 | 120,649 | 1,616,166 | 2,792,077 | 406,091 | |||||||||||||||||||||||
Cost of revenue | (387,287 | ) | (590,956 | ) | (639,383 | ) | (92,994 | ) | (1,207,694 | ) | (2,169,636 | ) | (315,560 | ) | ||||||||||||||||
Gross profit | 118,189 | 171,865 | 190,138 | 27,655 | 408,472 | 622,441 | 90,531 | |||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||
Selling and marketing expenses | (22,500 | ) | (29,320 | ) | (32,269 | ) | (4,693 | ) | (90,118 | ) | (110,570 | ) | (16,082 | ) | ||||||||||||||||
General and administrative expenses | (68,391 | ) | (89,267 | ) | (90,661 | ) | (13,186 | ) | (228,864 | ) | (329,601 | ) | (47,938 | ) | ||||||||||||||||
Research and development expenses | (2,541 | ) | (3,318 | ) | (4,724 | ) | (687 | ) | (7,261 | ) | (13,915 | ) | (2,024 | ) | ||||||||||||||||
Income from operations | 24,757 | 49,960 | 62,484 | 9,089 | 82,229 | 168,355 | 24,487 | |||||||||||||||||||||||
Other income (expenses): | ||||||||||||||||||||||||||||||
Net interest expenses | (136,307 | ) | (182,152 | ) | (202,493 | ) | (29,451 | ) | (406,403 | ) | (636,973 | ) | (92,644 | ) | ||||||||||||||||
Foreign currency exchange (loss) gain, net | (6,826 | ) | 13,420 | 327 | 48 | (12,299 | ) | 20,306 | 2,953 | |||||||||||||||||||||
Others, net | 795 | 3,197 | 2,944 | 428 | 3,497 | 8,653 | 1,259 | |||||||||||||||||||||||
Loss before income taxes | (117,581 | ) | (115,575 | ) | (136,738 | ) | (19,886 | ) | (332,976 | ) | (439,659 | ) | (63,945 | ) | ||||||||||||||||
Income tax benefits (expenses) | 1,038 | (3,779 | ) | 13,827 | 2,011 | 6,076 | 9,391 | 1,366 | ||||||||||||||||||||||
Net loss | (116,543 | ) | (119,354 | ) | (122,911 | ) | (17,875 | ) | (326,900 | ) | (430,268 | ) | (62,579 | ) | ||||||||||||||||
Net loss attributable to ordinary shareholders | (116,543 | ) | (119,354 | ) | (122,911 | ) | (17,875 | ) | (326,900 | ) | (430,268 | ) | (62,579 | ) | ||||||||||||||||
Loss per ordinary share | ||||||||||||||||||||||||||||||
Basic and diluted | (0.14 | ) | (0.12 | ) | (0.12 | ) | (0.02 | ) | (0.42 | ) | (0.43 | ) | (0.06 | ) | ||||||||||||||||
Weighted average number of ordinary share outstanding | ||||||||||||||||||||||||||||||
Basic and diluted | 855,104,727 | 997,967,316 | 1,000,435,164 | 1,000,435,164 | 784,566,371 | 990,255,959 | 990,255,959 | |||||||||||||||||||||||
GDS HOLDINGS LIMITED | |||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | |||||||||||||||||||||||||||
except for number of shares and per share data) | |||||||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, | September 30, | December 31, 2018 | December 31, 2017 | December 31, 2018 | |||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||||
Net loss | (116,543 | ) | (119,354 | ) | (122,911 | ) | (17,875 | ) | (326,900 | ) | (430,268 | ) | (62,579 | ) | |||||||||||||
Foreign currency translation adjustments, net of nil tax | (10,325 | ) | 26,602 | 3,331 | 484 | (8,608 | ) | 61,434 | 8,935 | ||||||||||||||||||
Comprehensive loss | (126,868 | ) | (92,752 | ) | (119,580 | ) | (17,391 | ) | (335,508 | ) | (368,834 | ) | (53,644 | ) | |||||||||||||
GDS HOLDINGS LIMITED | |||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, | September 30, | December 31, 2018 | December 31, | December 31, 2018 | |||||||||||
2017 | 2018 | 2017 | |||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Adjusted | Adjusted | ||||||||||||||
Net loss | (116,543 | ) | (119,354 | ) | (122,911 | ) | (17,875 | ) | (326,900 | ) | (430,268 | ) | (62,579 | ) | |
Depreciation and amortization | 117,392 | 206,661 | 230,599 | 33,539 | 378,130 | 741,507 | 107,848 | ||||||||
Amortization of debt issuance cost and debt discount | 30,675 | 15,956 | 28,150 | 4,094 | 48,100 | 61,373 | 8,926 | ||||||||
Share-based compensation expense | 18,449 | 27,358 | 34,932 | 5,081 | 59,843 | 105,877 | 15,400 | ||||||||
Others | (184 | ) | (2,411 | ) | (30,274 | ) | (4,403 | ) | (11,622 | ) | (34,144 | ) | (4,966 | ) | |
Changes in operating assets and liabilities | (78,412 | ) | (90,750 | ) | (29,129 | ) | (4,238 | ) | (315,367 | ) | (457,255 | ) | (66,506 | ) | |
Net cash (used in) provided by operating activities | (28,623 | ) | 37,460 | 111,367 | 16,198 | (167,816 | ) | (12,910 | ) | (1,877 | ) | ||||
Purchase of property and equipment | (584,694 | ) | (965,555 | ) | (1,661,485 | ) | (241,653 | ) | (1,760,165 | ) | (4,257,977 | ) | (619,297 | ) | |
Payments related to acquisitions | (194,571 | ) | (110,556 | ) | (31,223 | ) | (4,541 | ) | (244,889 | ) | (475,073 | ) | (69,096 | ) | |
Net cash used in investing activities | (779,265 | ) | (1,076,111 | ) | (1,692,708 | ) | (246,194 | ) | (2,005,054 | ) | (4,733,050 | ) | (688,393 | ) | |
Net proceeds from financing activities | 1,550,620 | 1,066 | 263,600 | 38,339 | 2,355,728 | 4,876,806 | 709,301 | ||||||||
Net cash provided by financing activities | 1,550,620 | 1,066 | 263,600 | 38,339 | 2,355,728 | 4,876,806 | 709,301 | ||||||||
Effect of exchange rate changes on cash and restricted cash | (22,366 | ) | 115,650 | (4,879 | ) | (710 | ) | (74,250 | ) | 206,302 | 30,005 | ||||
Net increase (decrease) of cash and restricted cash | 720,366 | (921,935 | ) | (1,322,620 | ) | (192,367 | ) | 108,608 | 337,148 | 49,036 | |||||
Cash and restricted cash at the beginning of period | 1,227,234 | 4,529,303 | 3,607,368 | 524,670 | 1,838,992 | 1,947,600 | 283,267 | ||||||||
Cash and restricted cash at end of period | 1,947,600 | 3,607,368 | 2,284,748 | 332,303 | 1,947,600 | 2,284,748 | 332,303 | ||||||||
Notes: | |||
1) | The Company adopted Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash on January 1, 2018 and retrospectively adjusted the unaudited condensed consolidated statements of cash flows for the three month and full year ended December 31, 2017 by excluding the movement of restricted cash of RMB21.0 million and RMB46.5 million, respectively. | ||
2) | The Company adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments on January 1, 2018. As a result, the unaudited condensed consolidated statement of cash flows for the three months and the year ended December 31, 2017 was retrospectively adjusted by reclassifying the payments of contingent considerations for acquisition of subsidiaries amounted to RMB27.1 million from investing activities to operating activities (RMB3.0 million) and financing activities (RMB24.1 million), respectively. | ||
GDS HOLDINGS LIMITED | ||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | ||||||||||||||||
except for percentage data) | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
December 31, 2017 | September 30, 2018 | December 31, 2018 | December 31, 2017 | December 31, 2018 | ||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Net loss | (116,543 | ) | (119,354 | ) | (122,911 | ) | (17,875 | ) | (326,900 | ) | (430,268 | ) | (62,579 | ) | ||
Net interest expenses | 136,307 | 182,152 | 202,493 | 29,451 | 406,403 | 636,973 | 92,644 | |||||||||
Income tax (benefits) expenses | (1,038 | ) | 3,779 | (13,827 | ) | (2,011 | ) | (6,076 | ) | (9,391 | ) | (1,366 | ) | |||
Depreciation and amortization | 117,392 | 206,661 | 230,599 | 33,539 | 378,130 | 741,507 | 107,848 | |||||||||
Accretion expenses for asset retirement costs | 324 | 569 | 555 | 81 | 949 | 1,840 | 268 | |||||||||
Share-based compensation expenses | 18,449 | 27,358 | 34,932 | 5,081 | 59,843 | 105,877 | 15,400 | |||||||||
Selling and marketing expenses (1) | 16,889 | 22,206 | 23,497 | 3,417 | 71,728 | 85,357 | 12,415 | |||||||||
General and administrative expenses (1) | 47,201 | 57,319 | 56,660 | 8,241 | 165,785 | 207,255 | 30,142 | |||||||||
Research and development expenses (1) | 2,172 | 2,829 | 4,132 | 601 | 6,062 | 12,394 | 1,803 | |||||||||
Foreign currency exchange loss (gain), net | 6,826 | (13,420 | ) | (327 | ) | (48 | ) | 12,299 | (20,306 | ) | (2,953 | ) | ||||
Others, net | (795 | ) | (3,197 | ) | (2,944 | ) | (428 | ) | (3,497 | ) | (8,653 | ) | (1,259 | ) | ||
Adjusted NOI | 227,184 | 366,902 | 412,859 | 60,049 | 764,726 | 1,322,585 | 192,363 | |||||||||
Adjusted NOI margin | 44.9% | 48.1% | 49.8% | 49.8% | 47.3% | 47.4% | 47.4% | |||||||||
Note 1: | ||||||||||||||||
Selling and marketing expenses, general and administrative expenses and research and development expenses exclude depreciation, amortization and share-based compensation expenses. | ||||||||||||||||
GDS HOLDINGS LIMITED | ||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | ||||||||||||||||
except for percentage data) | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
December 31, 2017 | September 30, | December 31, 2018 | December 31, 2017 | December 31, 2018 | ||||||||||||
2018 | ||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Net loss | (116,543 | ) | (119,354 | ) | (122,911 | ) | (17,875 | ) | (326,900 | ) | (430,268 | ) | (62,579 | ) | ||
Net interest expenses | 136,307 | 182,152 | 202,493 | 29,451 | 406,403 | 636,973 | 92,644 | |||||||||
Income tax (benefits) expenses | (1,038 | ) | 3,779 | (13,827 | ) | (2,011 | ) | (6,076 | ) | (9,391 | ) | (1,366 | ) | |||
Depreciation and amortization | 117,392 | 206,661 | 230,599 | 33,539 | 378,130 | 741,507 | 107,848 | |||||||||
Accretion expenses for asset retirement costs | 324 | 569 | 555 | 81 | 949 | 1,840 | 268 | |||||||||
Share-based compensation expenses | 18,449 | 27,358 | 34,932 | 5,081 | 59,843 | 105,877 | 15,400 | |||||||||
Adjusted EBITDA | 154,891 | 301,165 | 331,841 | 48,266 | 512,349 | 1,046,538 | 152,215 | |||||||||
Adjusted EBITDA margin | 30.6% | 39.5% | 40.0% | 40.0% | 31.7% | 37.5% | 37.5% |
Source:
Source: GDS Holdings Limited