Yandex N.V. (YNDX)-NasdaqGS
Apr 25, 4:00PM EDT | Pre-Market: 24.70  0.16 (0.65%) 9:11AM EDT - Nasdaq Real Time Price
Yandex Announces First Quarter 2012 Financial Results
finance.yahoo.com
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| YANDEX N.V. | | | Unaudited Condensed Consolidated Balance Sheets | | | (in millions of Russian rubles ("RUR") and U.S. dollars ("$"), except share and per share data) | | | | As of | | December
31, 2011* | March 31,
2012 | March 31,
2012 | | RUR | RUR | $ | | ASSETS |
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| | Current assets: |
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| | Cash and cash equivalents | 6,322 | 5,810 | 198.1 | | Term deposits | 5,169 | 4,459 | 152.0 | | Accounts receivable, net | 1,250 | 1,158 | 39.5 | | Funds receivable, net | 174 | 161 | 5.5 | | Prepaid expenses | 630 | 557 | 19.0 | | Deferred tax assets | 297 | 420 | 14.3 | | Other current assets | 663 | 747 | 25.5 | | Total current assets | 14,505 | 13,312 | 453.9 | | Property and equipment, net | 6,973 | 6,990 | 238.4 | | Intangible assets, net | 486 | 432 | 14.7 | | Goodwill | 1,132 | 1,115 | 38.0 | | Long-term prepaid expenses | 616 | 654 | 22.3 | | Restricted cash | 454 | 414 | 14.1 | | Term deposits | 2,454 | 4,247 | 144.8 | | Investments in non-marketable equity securities | 569 | 519 | 17.7 | | Investments in debt securities | 6,733 | 6,120 | 208.7 | | Deferred tax assets | 11 | 10 | 0.3 | | Other non-current assets | 143 | 267 | 9.1 | | TOTAL ASSETS | 34,076 | 34,080 | 1,162.0 |
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| | LIABILITIES AND SHAREHOLDERS' EQUITY |
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| | Current liabilities: |
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| | Accounts payable and accrued liabilities | 1,722 | 1,794 | 61.2 | | Taxes payable | 916 | 796 | 27.1 | | Deferred revenue | 900 | 812 | 27.7 | | Funds payable and amounts due to customers | 1,174 | 1,152 | 39.3 | | Total current liabilities | 4,712 | 4,554 | 155.3 | | Deferred tax liabilities | 189 | 216 | 7.3 | | Other accrued liabilities | 222 | 228 | 7.8 | | Total liabilities | 5,123 | 4,998 | 170.4 | | Commitments and contingencies |
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| | Shareholders' equity: |
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| | Priority share: EURO1 par value; 1 share authorized, issued and outstanding | -- | -- | -- | | Preference shares: EURO0.01 par value; 2,000,000,001, shares authorized, nil shares issued and outstanding | -- | -- | -- | | Ordinary shares: par value (Class A EURO0.01, Class B EURO0.10 and Class C EURO0.09); shares authorized (Class A: 2,000,000,000, Class B: 273,764,304, and Class C: 276,063,445); shares issued (Class A: 159,217,348 and 167,726,170, Class B: 164,621,382 and 157,821,083, and Class C: 109,142,922 and 115,943,221, respectively); shares outstanding (Class A: 159,217,348 and 167,726,170, Class B: 164,621,382 and 157,821,083, respectively, and Class C: nil) | 595 | 570 | 19.4 | | Additional paid-in capital | 12,729 | 12,975 | 442.4 | | Accumulated other comprehensive income | 1,828 | 478 | 16.3 | | Retained earnings | 13,801 | 15,059 | 513.5 | | Total shareholders' equity | 28,953 | 29,082 | 991.6 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 34,076 | 34,080 | 1,162.0 | | | | | | * Derived from the audited financial statements |
| Unaudited Condensed Consolidated Statements of Income | | | (in millions of Russian rubles and U.S. dollars, except share and per share data) | | | Three months ended March 31, | | 2011 | 2012 | 2012 | | RUR | RUR | $ | | Revenues | 3,894 | 5,874 | 200.3 | | Operating costs and expenses: |
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| | Cost of revenues(1) | 894 | 1,518 | 51.8 | | Product development(1) | 723 | 1,066 | 36.3 | | Sales, general and administrative(1) | 628 | 1,070 | 36.5 | | Depreciation and amortization | 377 | 661 | 22.5 | | Total operating costs and expenses | 2,622 | 4,315 | 147.1 | | Income from operations | 1,272 | 1,559 | 53.2 | | Interest income | 34 | 167 | 5.7 | | Other expense, net | (254) | (124) | (4.3) | | Net income before income taxes | 1,052 | 1,602 | 54.6 | | Provision for income taxes | 232 | 344 | 11.7 | | Net income | 820 | 1,258 | 42.9 |
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| | Net income per Class A and Class B share: |
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| | Basic | 2.70 | 3.88 | 0.13 | | Diluted | 2.60 | 3.75 | 0.13 |
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| | Weighted average number of Class A and Class B shares outstanding |
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| | Basic | 303,815,518 | 324,444,817 | 324,444,817 | | Diluted | 315,230,574 | 335,035,919 | 335,035,919 |
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| | (1) These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of: |
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| | Cost of revenues | 6 | 6 | 0.2 | | Product development | 32 | 39 | 1.3 | | Sales, general and administrative | 32 | 36 | 1.2 |
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| | YANDEX N.V. | | | Unaudited Condensed Consolidated Statements of Cash Flows | | | (in millions of Russian rubles and U.S. dollars) | | | Three months ended March 31, | | 2011 | 2012 | 2012 | | RUR | RUR | $ | | CASH FLOWS FROM OPERATING ACTIVITIES: |
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| | Net income | 820 | 1,258 | 42.9 | | Adjustments to reconcile net income to net cash provided by operating activities: |
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| | Depreciation and amortization of property and equipment | 371 | 643 | 21.9 | | Amortization of acquisition-related intangible assets | 6 | 18 | 0.6 | | Share-based compensation expense | 70 | 81 | 2.8 | | Deferred income taxes | (126) | (98) | (3.3) | | Foreign exchange losses | 254 | 114 | 3.9 | | Other | -- | 13 | 0.5 | | Changes in operating assets and liabilities excluding the effect of acquisitions: |
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| | Accounts receivable, net | (7) | 86 | 2.9 | | Funds receivable | (41) | 14 | 0.5 | | Prepaid expenses and other assets | (366) | (205) | (7.0) | | Accounts payable and accrued liabilities | 111 | 10 | 0.3 | | Deferred revenue | (25) | (85) | (2.9) | | Funds payable and amounts due to customers | 54 | (22) | (0.8) | | Net cash provided by operating activities | 1,121 | 1,827 | 62.3 |
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| | CASH FLOWS USED IN INVESTING ACTIVITIES: |
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| | Purchase of property and equipment | (978) | (767) | (26.2) | | Investments in term deposits | (1,229) | (4,175) | (142.3) | | Maturities of term deposits | 1,022 | 2,863 | 97.6 | | Net cash used in investing activities | (1,185) | (2,079) | (70.9) |
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| | CASH FLOWS (USED IN)/PROVIDED BY FINANCING ACTIVITIES: |
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| | Proceeds from exercise of share options | -- | 119 | 4.0 | | Repurchase of share options | (7) | -- | -- | | Net cash (used in)/provided by financing activities | (7) | 119 | 4.0 | | Effect of exchange rate changes on cash and cash equivalents | (146) | (379) | (12.9) | | Net change in cash and cash equivalents | (217) | (512) | (17.5) | | Cash and cash equivalents at beginning of period | 3,371 | 6,322 | 215.6 | | Cash and cash equivalents at end of period | 3,154 | 5,810 | 198.1 |
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| | YANDEX N.V. |
| | RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO THE NEAREST COMPARABLE US GAAP MEASURES |
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| | Reconciliation of Ex-TAC Revenues to US GAAP Revenues |
| In RUR millions
| Three months
ended March 31, | | 2011 | 2012 | Change | | Total revenues | 3,894 | 5,874 | 51% | | Less: traffic acquisition costs (TAC) | 537 | 992 | 85% | | Ex-TAC revenues | 3,357 | 4,882 | 45% |
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| | Reconciliation of Adjusted EBITDA to US GAAP Net Income |
| In RUR millions
| Three months
ended March 31, | | 2011 | 2012 | Change | | Net income | 820 | 1,258 | 53% | | Add: depreciation and amortization | 377 | 661 | 75% | | Add: share-based compensation (SBC) expense | 70 | 81 | 16% | | Add: expense for acquisition-related contingent compensation | -- | 76 | -- | | Less: interest income | (34) | (167) | 391% | | Add: other expense, net | 254 | 124 | -51% | | Add: provision for income taxes | 232 | 344 | 48% | | Adjusted EBITDA | 1,719 | 2,377 | 38% |
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| | Reconciliation of Adjusted Net Income to US GAAP Net Income |
| In RUR millions
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ended March 31, | | 2011 | 2012 | Change | | Net income | 820 | 1,258 | 53% | | Add: SBC expense | 70 | 81 | 16% | | Less: reduction in income tax attributable to SBC expense | -- | (1) | -- | | Add: expense for acquisition-related contingent compensation | -- | 76 | -- | | Add: foreign exchange loss | 254 | 114 | -55% | | Less: reduction in income tax attributable to foreign exchange loss | (51) | (23) | -55% | | Adjusted net income | 1,093 | 1,505 | 38% |
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| | Reconciliation of Adjusted EBITDA Margin and Adjusted Ex-TAC EBITDA Margin to US GAAP Net Income Margin for the Three Months Ended March 31, 2012 | | | In RUR millions | | |
US
GAAP
Actual |
Net
Income
Margin (1) |
Adjustment (2) |
Adjusted
EBITDA |
Adjusted
EBITDA
Margin (3) | Adjusted
Ex-TAC
EBITDA
Margin (4) | | Three months ended March 31, 2012 | Net income | 1,258 | 21.4% | 1,119 | 2,377 | 40.5% | 48.7% |
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| | (1) Net income margin is defined as net income divided by total revenues. | | (2) Adjusted to eliminate depreciation and amortization expense, SBC expense, expense related to SPB Software contingent compensation, interest income, other (expense)/income, net, and provision for income taxes. For a reconciliation of adjusted EBITDA to net income, please see the table above. | | (3) Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenues. | | (4) Adjusted ex-TAC EBITDA margin is defined as adjusted EBITDA divided by ex-TAC revenues. For a reconciliation of ex-TAC revenues to GAAP revenues, please see the table above. |
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| | Reconciliation of Adjusted Net Income Margin and Adjusted Ex-TAC Net Income Margin to US GAAP Net Income Margin for the Three Months Ended March 31, 2012 | | | In RUR millions | |
US
GAAP
Actual |
Net
Income
Margin (1) |
Adjustment (2) |
Adjusted
Net Income |
Adjusted
Net Income
Margin (3) | Adjusted
Ex-TAC
Net Income
Margin (4) | | Three months ended March 31, 2012 | Net income | 1,258 | 21.4% | 247 | 1,505 | 25.6% | 30.8% |
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| | (1) Net income margin is defined as net income divided by total revenues. | | (2) Adjusted to eliminate SBC expense (as adjusted for the income tax reduction attributable to SBC expense), expense related to SPB Software contingent compensation and foreign exchange losses (as adjusted for the reduction in income tax attributable to the loss). For a reconciliation of adjusted net income to net income, please see the table above. | | (3) Adjusted net income margin is defined as adjusted net income divided by total revenues. | (4) Adjusted ex-TAC net income margin is defined as adjusted net income divided by ex-TAC revenues. For a reconciliation of ex-TAC revenues to US GAAP revenues, please see the table above.
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