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AutoNavi Holdings Limited Reports Fourth Quarter And Fiscal Year 2012 Results

Stocks in this article: AMAP

About Non-GAAP Financial Measures

To supplement AutoNavi's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), AutoNavi uses in this press release the following non-GAAP financial measures: (1) non-GAAP operating expenses, (2) non-GAAP R&D expenses, (3) non-GAAP selling and marketing expenses, (4) non-GAAP general and administrative expenses, (5) non-GAAP operating income, (6) non-GAAP net income attributable to AutoNavi shareholders, and (7) non-GAAP diluted net income per ADS attributable to AutoNavi shareholders, which are adjusted from results based on GAAP to exclude the impact of certain items, particularly share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

AutoNavi believes that these non-GAAP financial measures facilitate investors' and management's comparisons to AutoNavi's historical performance and assist management's financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expenses are recurring expenses that will continue to exist in AutoNavi'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 table has more details on the reconciliation between non-GAAP financial measures and their most directly comparable GAAP financial measures to provide investors with context as to how the adjustments impact the GAAP amounts.

AUTONAVI HOLDINGS LIMITED
Consolidated Balance Sheet (unaudited)
(In thousands of U.S. dollars)
 
  December 31, 2012 December 31, 2011
     
     
Assets    
Current assets    
Cash and cash equivalents 151,543 199,696
Restricted cash  835  -- 
Term deposits 64,686  -- 
     
Accounts receivable, net of allowance for doubtful accounts of $1,859 and $823 as of December 31, 2012 and December 31, 2011, respectively 45,985 36,273
Due from related parties, trading 4,749 1,056
Due from related parties, non-trading 3 221
Prepaid expense and other current assets  7,840 5,725
Deferred tax assets-current  1,838 1,355
Total current assets  277,479 244,326
     
Properties and equipment, net  47,120 49,245
Equity method investments  4,164 4,442
Prepaid consideration in connection with equity investment  --  183
Acquired intangible assets, net  5,004 6,855
Goodwill  8,837 8,747
Deferred tax assets-non-current  150 224
Other long term assets  373 445
Prepayment for acquisition of property 8,677  -- 
     
TOTAL ASSETS  351,804 314,467
     
Liabilities    
Current liabilities    
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to AutoNavi Holdings Limited $2,124 and $2,358 as of December 31, 2012 and December 31, 2011, respectively) 2,124 2,364
Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to AutoNavi Holdings Limited $13,907 and $5,567 as of December 31, 2012 and December 31, 2011, respectively) 14,630 7,328
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to AutoNavi Holdings Limited $26,230 and $23,944 as of December 31, 2012 and December 31, 2011, respectively) 29,613 26,071
Income tax payable (including income tax payable of the consolidated variable interest entities without recourse to AutoNavi Holdings Limited $10,082 and $7,394 as of December 31, 2012 and December 31, 2011, respectively) 10,417 7,481
     
Total current liabilities  56,784 43,244
     
Non-current liabilities    
Deferred tax liability-non-current (including deferred tax liability of the consolidated variable interest entities without recourse to AutoNavi Holdings Limited $862 and $1,191 as of December 31, 2012 and December 31, 2011, respectively) 966 1,345
     
Total liabilities  57,750 44,589
     
Equity    
Ordinary shares 19 19
Additional paid-in capital  189,373 175,726
Treasury stock (29,164)  -- 
Statutory reserve  11,668 9,363
Retained earnings  95,715 61,517
Accumulated other comprehensive income  20,546 18,262
     
Total AutoNavi Holdings Limited shareholders' equity  288,157 264,887
Noncontrolling interest  5,897 4,991
     
Total equity  294,054 269,878
     
TOTAL LIABILITIES AND EQUITY  351,804 314,467
 
AUTONAVI HOLDINGS LIMITED
Consolidated Statements of Comprehensive Income (unaudited)
(In thousands of U.S. dollars, except share and per share data)
 
  For the three months ended For the year ended
  December 31, 2012 December 31, 2011 September 30, 2012 December 31, 2012 December 31, 2011
           
Revenue 44,527 35,547 40,903 163,241 129,749
Business tax (919) (851) (683) (3,548) (2,789)
Net revenues 43,608 34,696 40,220 159,693 126,960
Cost of revenues (12,771) (9,422) (11,406) (43,019) (35,021)
Gross profit 30,837 25,274 28,814 116,674 91,939
           
Operating expenses:          
Research and development (10,077) (7,481) (9,251) (35,581) (23,720)
Selling and marketing (7,112) (5,919) (5,920) (24,958) (16,428)
General and administrative (5,448) (4,175) (4,842) (20,322) (15,114)
Impairment of intangible assets  --  (19)  --   --  (19)
Total operating expenses (22,637) (17,594) (20,013) (80,861) (55,281)
Government subsidies  597  141  1,742  3,111  163
Operating income 8,797 7,821 10,543 38,924 36,821
           
Gain on re-measurement of fair value of the equity method investment  --   --   --   --   995
Interest income 1,707 1,383 1,570  6,456  5,226
Change in fair value of forward contract  --   --   --   --   2,465
Foreign exchange gains/(loss) 377 500 545 454 (1,579)
Other Income 201 47 47  342  188
Income before income taxes and share of net loss of equity method investments 11,082 9,751 12,705 46,176 44,116
Income tax expense (1,792) (1,382) (2,133) (7,214) (5,086)
Share of net loss of equity method investments (248) (718) (29) (778) (653)
Net income 9,042 7,651 10,543 38,184 38,377
Less: Net income attributable to noncontrolling interest 352 575 463 1,676 1,842
Net income attributable to AutoNavi Holdings Limited shareholders 8,690 7,076 10,080 36,508 36,535
           
Net income per ordinary share attributable to AutoNavi Holdings Limited shareholders          
Basic 0.05 0.04 0.05 0.19 0.19
Diluted 0.04 0.04 0.05 0.18 0.18
           
Weighted average number of shares used in calculating net income per ordinary share          
Basic 188,136,499 191,236,355 191,292,003 190,853,540 190,132,407
Diluted 198,054,969 200,900,042 201,738,628 201,168,386 201,230,735
           
Other comprehensive income, net of tax          
Foreign currency translation adjustment 1,867 2,216 2,286 2,338 7,013
           
Comprehensive income  10,909  9,867  12,829  40,522  45,390
Less: comprehensive income attributable to noncontrolling interest  402  640  522 1,730  2,042
Comprehensive income attributable to AutoNavi Holdings Limited shareholders  10,507  9,227  12,307  38,792  43,348
             
AUTONAVI HOLDINGS LIMITED
Reconciliation of non-GAAP measures to most directly comparable GAAP measures (unaudited)
(In thousands of U.S. dollars, except per ADS data)
 
  For the three months ended For the year ended  
  December 31, 2012 December 31, 2011 September 30, 2012 December 31, 2012 December 31, 2011  
             
Total operating expenses 22,637 17,594 20,013 80,861 55,281  
Share-based compensation (2,180) (2,620) (2,750) (12,315) (5,130)  
Impairment of intangible assets  --  (19)  --   --  (19)  
Non-GAAP total operating expenses 20,457 14,955 17,263 68,546 50,132  
             
R&D expenses 10,077 7,481 9,251 35,581 23,720  
Share-based compensation (644) (1,286) (1,088) (3,785) (2,464)  
Non-GAAP R&D expenses 9,433 6,195 8,163 31,796 21,256  
             
Selling and marketing expenses  7,112 5,919 5,920 24,958 16,428  
Share-based compensation (828) (970) (877) (4,651) (1,705)  
Non-GAAP selling and marketing expenses  6,284 4,949 5,043 20,307 14,723  
             
General and administrative expenses 5,448 4,175 4,842 20,322 15,114  
Share-based compensation (708) (364) (785) (3,879) (961)  
Non-GAAP general and administrative expenses 4,740 3,811 4,057 16,443 14,153  
             
Operating income 8,797 7,821 10,543 38,924 36,821  
Share-based compensation 2,316 2,691 2,684 12,536 5,362  
Impairment of intangible assets  --  19  --   --  19  
Non-GAAP operating income 11,113 10,531 13,227 51,460 42,202  
             
Net income attributable to AutoNavi Holdings Limited shareholders 8,690 7,076 10,080 36,508 36,535  
Share-based compensation 2,316 2,691 2,684 12,536 5,362  
Impairment of intangible assets  --  19  --   --  19  
Gain on re-measurement of fair value of the equity method investment  --   --   --   --  (995)  
Non-GAAP net income attributable to AutoNavi Holdings Limited shareholders 11,006 9,786 12,764 49,044 40,921  
     
  For the three months ended December 31, 2012 For the year ended December 31, 2012
  GAAP Adjustments Non-GAAP (a) GAAP Adjustments Non-GAAP (a)
Diluted net income per ADS attributable to AutoNavi Holdings Limited shareholders 0.18 0.04 0.22 0.73 0.25 0.98
             
             
(a) Non-GAAP diluted net income per ADS attributable to AutoNavi Holdings Limited shareholders is computed by dividing non-GAAP net income attributable to AutoNavi Holdings Limited shareholders by the weighted average number of diluted ordinary shares outstanding used in computing the GAAP diluted net income per ordinary share attributable to AutoNavi Holdings Limited shareholders (after adjusting for the ADS to ordinary share ratio).
CONTACT: For investor and media inquiries please contact:

         In China:

         Serena Shi
         AutoNavi Holdings Limited
         Tel: +86-10-8410-7883
         E-mail: serena.shi@autonavi.com 

         Derek Mitchell
         Ogilvy Financial, Beijing
         Tel: +86-10-8520-3073
         E-mail: amap@ogilvy.com

         In the U.S.:

         Jessica Barist Cohen
         Ogilvy Financial, New York
         Tel: +1-646-460-9989
         E-mail: amap@ogilvy.com

AutoNavi Holdings Limited logo

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