E-House Reports First Quarter 2013 Results

                  E-House Reports First Quarter 2013 Results

PR Newswire

SHANGHAI, May 15, 2013

SHANGHAI, May 15, 2013 /PRNewswire-FirstCall/ -- E-House (China) Holdings
Limited ("E-House" or the "Company") (NYSE: EJ), a leading real estate
services company in China, today announced its unaudited financial results for
the fiscal quarter ended March 31, 2013.

First Quarter 2013 Financial and Operating Highlights

  oTotal gross floor area ("GFA") of new properties sold was 4.4 million
    square meters, an increase of 135% from the same quarter of 2012. Total
    value of new properties sold increased by 167% year-on-year to RMB39.1
    billion ($6.2 billion) [1].
  oTotal revenues increased by 97% year-on-year to $116.6 million.
  oNon-GAAP [2]income from operations was $0.8 million.
  oNon-GAAP net income attributable to E-House shareholders was $4.2 million,
    or $0.03 per diluted American depositary share ("ADS").

[1] This press release contains translations of certain RMB amounts into U.S.
dollar amounts solely for the convenience of the reader. The RMB amounts were
translated into U.S. dollar amounts at a rate of RMB6.2780 to US$1.00, which
is the average central parity rate announced by the People's Bank of China for
the first quarter of 2013.
[2] E-House uses in this press release the following non-GAAP financial
measures: (1) income (loss) from operations, (2) net income (loss), (3) net
income (loss) attributable to E-House shareholders, (4) net income (loss)
attributable to E-House shareholders per basic ADS, and (5) net income (loss)
attributable to E-House shareholders per diluted ADS, each of which excludes
share-based compensation expense and amortization of intangible assets
resulting from business acquisitions. See "About Non-GAAP Financial Measures"
and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more
information about the non-GAAP financial measures included in this press
release.

Xin Zhou, co-chairman and CEO of E-House said, "E-House adjusted its
strategies and cost structure amid real estate market fluctuations in the past
two years, resulting in a more focused and streamlined business that is better
able to adapt to changing market conditions. During the first quarter of 2013,
two of our main business components, our primary agency business and our
online real estate advertising and e-commerce business, saw significant growth
of over 170% and nearly 90%, respectively. On top of the strong gains in
traditional online advertising, our real estate e-commerce business has become
an important growth driver for the online segment. If last year's first
quarter represented the nadir for E-House's business, we believe the first
quarter of 2013 signified a clear turn-around of our business and formed a
solid base for our overall growth this year."

Mr. Zhou continued, "Innovation has always been a core component of our
vision. Tomorrow, we will launch our CRIC Home Price series, also referred to
as our China Real Estate Price System or CRPS, another unique set of products
in the industry. The CRIC Home Price series includes a primary home price
index for 288 cities in China, a secondary home price index for 66 cities, and
home price appraisals and recommended pricings for every newly built home in
12 key cities as well as secondary home price estimates within those 12
cities. The CRIC Home Price series has gone through industry expert scrutiny
and obtained a patent in China. In addition, to target the growing number of
mobile Internet users in China, we recently launched our mobile application,
Pocket Leju, which allows users to search for new and secondary homes to buy
or rent, with price and listing source information as well as transaction
tools. The application has been downloaded by approximately 700,000 users in
the first month since its launch. These new and innovative products and
services will enable us to better serve our developer clients, along with
consumers, and further strengthen our competitive and leadership position in
the industry."

Bin Laurence, E-House's CFO, added, "Since the implementation of our
cost-control and new incentive measures last year, which aligned our cost
structure with the changing market environment, our operating income has
improved consistently over the last few quarters. That trend continued in the
first quarter of this year with roughly doubled year-on-year revenues yet
relatively flat SG&A expenses. We expect to see significant improvement in
profitability along with top-line growth this year."

First Quarter 2013 Results

Total revenues were $116.6 million, an increase of 97% from $59.1 million for
the same quarter of 2012, primarily driven by E-House's real estate brokerage
services and real estate online services.

Revenues from real estate brokerage services were $59.4 million, an increase
of 151% from $23.6 million for the same quarter of 2012. Real estate brokerage
services include primary real estate agency services and secondary real estate
brokerage services. Revenues from primary real estate agency services were
$56.4 million, an increase of 171% from $20.8 million for the same quarter of
2012, driven by a 135% increase in the total GFA of new properties sold and a
167% increase in the total transaction value of new properties sold. (See
"Selected Operating Data" below for more details on the total GFA and
transaction value of new properties sold.) Revenues from secondary real estate
brokerage services were $3.0 million, a slight increase from $2.8 million for
the same quarter of 2012.

Revenues from real estate online services were $39.8 million, an increase of
89% from $21.1 million for the same quarter of 2012, contributed by growth in
both traditional online advertising and e-commerce revenues.

Revenues from real estate information and consulting services were $11.7
million, an increase of 17% compared to $9.9 million for the same quarter of
2012, due to a revenue increase from information services which was partially
offset by a revenue decrease from consulting services as the Company continued
to shift its focus to the more scalable real estate information business.

Revenues from other services were $5.7 million, an increase of 30% from $4.5
million for the same quarter of 2012. Other services include offline real
estate advertising services, promotional events services and real estate fund
management services.

Cost of revenues was $52.0 million, an increase of 38% from $37.7 million for
the same quarter of 2012, due to increased revenues.

Selling, general and administrative ("SG&A") expenses were $75.0 million,
slightly down compared to $77.5 million in the same quarter of 2012.

Loss from operations was $10.3 million, compared to loss of $54.6 million for
the same quarter of 2012. Non-GAAP income from operations was $0.8 million,
compared to non-GAAP loss from operations of $39.8 million for the same
quarter of 2012.

Net loss was $6.2 million, compared to net loss of $34.0 million for the same
quarter of 2012. Non-GAAP net income was $3.5 million, compared to non-GAAP
net loss of $20.0 million for the same quarter of 2012.

Net loss attributable to E-House shareholders was $5.4 million, or $0.05 loss
per diluted ADS, compared to net loss attributable to E-House shareholders of
$25.9 million, or $0.33 loss per diluted ADS, for the same quarter of 2012.
Non-GAAP net income attributable to E-House shareholders was $4.2 million or
$0.03 per diluted ADS, compared to non-GAAP net loss attributable to E-House
shareholders of $16.8 million, or $0.21 loss per diluted ADS, for the same
quarter of 2012.

Cash Flow

As of March 31, 2013, the Company's cash and cash equivalents balance was
$206.3 million. First quarter 2013 net cash used in operating activities was
$43.0 million, mainly attributable to an increase in customer deposits of
$46.3 million and a decrease of $13.1 million in payroll and welfare payables,
partially offset by a decrease in accounts receivable of $10.1 million and
non-GAAP net income of $3.5 million. Net cash used in investing activities was
$9.7 million, mainly comprised of $9.2 million for purchase of property and
equipment. Net cash proceeds from financing activities were $47.8 million,
mainly comprised of $62.6 million proceeds of the issuance of new ordinary
shares to management, partially offset by $14.9 million paid for share
repurchases.

Business Outlook

The Company increased its fiscal 2013 total revenue guidance from the
previously guided amount of approximately $550 million to approximately $600
million, which would represent an increase of approximately 30% from $462.4
million in 2012. This forecast reflects the Company's current and preliminary
view, which is subject to change.

Conference Call Information

E-House's management will host an earnings conference call on May 15, 2013 at
7:30 a.m. U.S. Eastern Time (7:30 p.m. Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

U.S./International: +1-718-354-1231
Hong Kong: +852-2475-0994
Mainland China: +86-10-800-819-0121

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 May 22, 2013:

International:+1-646-254-3697
Passcode: 68640804

Additionally, a live and archived webcast will be available at
http://ir.ehousechina.com.

About E-House

E-House (China) Holdings Limited ("E-House") (NYSE: EJ) is China's leading
real estate services company with a nationwide network covering approximately
245 cities. E-House offers a wide range of services to the real estate
industry, including online advertising and e-commerce, primary sales agency,
secondary brokerage, information and consulting, offline advertising and
promotion and real estate investment management services. E-House has received
numerous awards for its innovative and high-quality services, including
"China's Best Company" from the National Association of Real Estate Brokerage
and Appraisal Companies and "China Enterprises with the Best Potential" from
Forbes. For more information about E-House, please visit
http://www.ehousechina.com.

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 filed or furnished
with the U.S. Securities and Exchange Commission, including 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. 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 China, government measures aimed at
China's real estate industry, failure of the real estate services industry in
China to develop or mature as quickly as expected, diminution of the value of
E-House's brand or image, E-House's inability to successfully execute its
strategy of expanding into new geographical markets in China, E-House's
failure to manage its growth effectively and efficiently, E-House's failure to
successfully execute the business plans for its strategic alliances and other
new business initiatives, E-House's loss of its competitive advantage if it
fails to maintain and improve its proprietary CRIC system or to prevent
disruptions or failure in the system's performance, E-House's failure to
compete successfully, fluctuations in E-House's results of operations and cash
flows, E-House's reliance on a concentrated number of real estate developers,
natural disasters or outbreaks of health epidemics and other risks outlined in
E-House's filings with the U.S. Securities and Exchange Commission. All
information provided in this press release is current as of the date of this
press release, and E-House does not undertake any obligation to update any
such information, except as required under applicable law.

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 in this press release the following non-GAAP financial measures: (1)
income (loss) from operations, (2) net income (loss), (3) net income (loss)
attributable to E-House shareholders, (4) net income (loss) attributable to
E-House shareholders per basic ADS, and (5) net income (loss) attributable to
E-House shareholders per diluted ADS, each of which excludes share-based
compensation expense and amortization of intangible assets resulting from
business acquisitions. 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 "Unaudited 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 to investors regarding its operating performance by
excluding share-based compensation expense, amortization of intangible assets
resulting from business acquisitions, goodwill impairment charge and
gain/(loss) from the disposal of subsidiaries, which may not be indicative of
E-House's operating performance. These non-GAAP financial measures also
facilitate management's internal comparisons to E-House's historical
performance and assist its financial and operational decision making. A
limitation of using these non-GAAP financial measures is that share-based
compensation expense, amortization of intangible assets resulting from
business acquisitions, goodwill impairment charge and gain/(loss) from the
disposal of subsidiaries are recurring expenses that may continue to exist in
E-House's business for the foreseeable future. Management compensates for
these limitations by providing specific information regarding the GAAP amounts
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
Director of Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-0754
E-mail: michelleyuan@ehousechina.com

Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com

In the United States:

Jessica Barist Cohen
Ogilvy Financial, New York
Phone: +1 (646) 460-9989
E-mail: ej@ogilvy.com



E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
                                                      December31,  March31,
                                                      2012           2013
ASSETS
Current assets
 Cash and cash equivalents                          210,841        206,284
 Restricted cash                                     2,749          9,271
 Marketable securities                              3,685          -
 Customer deposits, net                             92,624         139,345
 Accounts receivable, net                           304,600        288,931
 Properties held for sale                           612            5,505
 Deferred tax assets, net                           41,212         41,270
 Prepaid expenses and other current assets          15,964         25,328
 Amounts due from related parties                   319            1,764
Total current assets                                 672,606        717,698
Property and equipment, net                          41,410         40,243
Intangible assets, net                               175,042        165,764
Investment in affiliates                             34,949         37,265
Goodwill                                             49,401         49,444
Customer deposits, non-current, net                  744            778
Other non-current assets                             37,810         41,233
Total assets                                         1,011,962      1,052,425
LIABILITIES AND EQUITY
Current liabilities
 Accounts payable                                   7,412          6,935
 Accrued payroll and welfare expenses               69,028         55,768
 Income tax payable                                 56,142         52,396
 Other tax payable                                  24,864         23,584
 Amounts due to related parties                     4,282          4,358
 Advance from property buyers                       2,803          9,526
 Deferred revenue                                   13,601         17,262
 Liability for exclusive rights, current            16,973         23,283
 Dividend payable                                    -              19,947
 Other current liabilities                          27,178         26,874
Total current liabilities                            222,283        239,933
Deferred tax liabilities                             36,926         36,926
Liability for exclusive rights, non-current          5,919          -
Other non-current liabilities                        1,720          1,599
Total liabilities                                    266,848        278,458
Equity
 Ordinary shares ($0.001 par value): 1,000,000,000
and 1,000,000,000

 shares authorized, 118,242,281 and 132,978,300   118            133
shares issued and

 outstanding, as of December 31, 2012 and March
31, 2013, respectively
 Additional paid-in capital                         841,536        875,762
 Subscription receivables                           (12)           (49)
 Accumulated deficit                                (157,835)      (163,962)
 Accumulated other comprehensive income             55,118         56,551
Total E-House equity                                 738,925        768,435
Non-controlling interests                            6,189          5,532
Total equity                                         745,114        773,967
TOTAL LIABILITIES AND EQUITY                         1,011,962      1,052,425

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
                                                   March 31,
                                                   2012          2013
Revenues                                            59,137        116,607
Cost of revenues                                    (37,675)      (51,988)
Selling, general and administrative expenses        (77,547)      (75,037)
Other operating income, net                         1,502         94
Loss from operations                                (54,583)      (10,324)
Interest income                                     741           423
Other income (expense), net                         (221)         (114)
Loss before taxes and equity in affiliates          (54,063)      (10,015)
Income tax benefit                                  20,240        2,157
Loss before equity in affiliates                    (33,823)      (7,858)
Income (Loss) from equity in affiliates             (150)         1,679
Net loss                                            (33,973)      (6,179)
Less: net loss attributable to non-controlling      (8,049)       (755)
interests
Net loss attributable to E-House shareholders       (25,924)      (5,424)
Loss per share:
Basic                                              (0.33)        (0.05)
Diluted                                            (0.33)        (0.05)
Shares used in computation:
Basic                                              79,074,043    118,453,504
Diluted                                            79,074,043    118,453,504

       The conversion of Renminbi ("RMB") amounts into USD amounts is based on
Note1 the rate of USD1 = RMB6.2689 on March 31, 2013 and USD1 = RMB6.2780 for
       the three months ended March 31, 2013.



E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In thousands of U.S. dollars)
                                                         Three months ended
                                                         March 31,
                                                         2012        2013
Net loss                                                  (33,973)    (6,179)
Other comprehensive income
Foreign currency translation adjustment                   523         1,530
Comprehensive loss                                        (33,450)    (4,649)
Less: Comprehensive loss attributable to                  (7,915)     (658)
non-controlling interest
Comprehensive loss attributable to E-House                (25,535)    (3,991)
shareholders



E-HOUSE (CHINA) HOLDINGS LIMITED
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands of U.S. dollars, except share data and per ADS data)
                                                 Three months ended
                                                 March 31,
                                                 2012          2013
                                                 (unaudited)   (unaudited)
GAAP loss from operations                         (54,583)       (10,324)
Share-based compensation expense                  9,085          5,461
Amortization of intangible assets resulting       5,738          5,634
from business acquisitions
Non-GAAP income (loss) from operations            (39,760)       771
GAAP net loss                                     (33,973)       (6,179)
Share-based compensation expense (net of tax)     9,085          5,461
Amortization of intangible assets resulting       4,935          4,226
from business acquisitions (net of tax)
Non-GAAP net income (loss)                        (19,953)       3,508
GAAP net loss attributable to E-House             (25,924)       (5,424)
shareholders
Share-based compensation expense (net of tax      6,514          5,461
and non-controlling interests)
Amortization of intangible assets resulting
from business acquisitions (net of tax and        2,613          4,136
non-controlling interests)
Non-GAAP net income (loss) attributable to        (16,797)       4,173
E-House shareholders
GAAP net loss per ADS- basic                     (0.33)         (0.05)
GAAP net loss per ADS- diluted                   (0.33)         (0.05)
Non-GAAP net income (loss) per ADS- basic        (0.21)         0.04
Non-GAAP net income (loss) per ADS- diluted      (0.21)         0.03
Shares used in calculating basic GAAP /
non-GAAP net income (loss) attributable to        79,074,043     118,453,504
shareholders per ADS
Shares used in calculating diluted GAAP net       79,074,043     118,453,504
loss attributable to shareholders per ADS
Shares used in calculating diluted non-GAAP net
income (loss) attributable to shareholders per    79,074,043     121,364,865
ADS

E-HOUSE (CHINA) HOLDINGS LIMITED

SELECTED OPERATING DATA
                                                        Three months ended
                                                        March 31,
                                                        2012      2013
Primary real estate agency service
Total Gross Floor Area ("GFA") of new properties sold   
                                                                   4,370
(thousands of square meters)                            1,863
Total value of new properties sold (millions of RMB)     14,621    39,066
Total value of new properties sold (millions of $)       2,321     6,223

SOURCE E-House (China) Holdings Limited

Website: http://www.ehousechina.com
Website: http://ir.ehousechina.com
 
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