PR Newswire | Nov 18, 2021 06:26AM EST

US$200 Million Share Repurchase Program

11/18 05:25 CST

Autohome Inc. Announces Unaudited 2021 Third Quarter Financial Results and US$200 Million Share Repurchase Program BEIJING, Nov. 18, 2021

BEIJING, Nov. 18, 2021 /PRNewswire/ -- Autohome Inc. (NYSE: ATHM; HKEX: 2518) ("Autohome" or the "Company"), the leading online destination for automobile consumers in China, today announced its unaudited financial results for the third quarter ended September 30, 2021 and its US$200 million share repurchase program.

ThirdQuarter2021Highlights[1]

* Net Revenues in the third quarter of 2021 were RMB1,763.8 million ($273.7 million), compared to RMB2,315.6 million in the corresponding period of 2020. Online Marketplace and Others Revenues in the third quarter of 2021 were RMB561.2 million ($87.1 million), representing an increase of 2.5% year- over- year. * Net Income attributable to Autohome Inc. in the third quarter of 2021 was RMB521.7 million ($81.0 million), compared to RMB846.7 million in the corresponding period of 2020 and net income attributable to Ordinary Shareholders in the third quarter of 2021 was RMB511.0 million ($79.3 million), compared to RMB846.7 million in the corresponding period of 2020. * Adjusted Net Income attributable to Autohome Inc. (Non-GAAP)[2] in the third quarter of 2021 was RMB583.2 million ($90.5 million), compared to RMB901.8 million in the corresponding period of 2020.

^[1] The reporting currency of the Company is Renminbi ("RMB"). For theconvenience of readers, certain amounts throughout the release are presented inUS dollars ("$"). Unless otherwise noted, all conversions from RMB to US$ aretranslated at the noon buying rate of US$1.00 to RMB6.4434 on September 30,2021 in the City of New York for cable transfers of RMB as certified forcustoms purposes by the Federal Reserve Bank of New York. No representation ismade that the RMB amounts could have been, or could be, converted into US$ atsuch rate.

^[2] For more information on this and other non-GAAP financial measures, pleasesee the section captioned "Use of Non-GAAP Financial Measures" and the tablescaptioned "Reconciliations of Non-GAAP and GAAP Results" set forth at the endof this release.

Share Repurchase Program

On November 18, 2021, Autohome's Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$200 million of its American depositary shares over the next twelve months.

The Company's proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Company's Board of Directors will review the authorized share repurchase program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company plans to fund repurchases from its existing cash balance.

Mr. Quan Long, Chairman of the Board of Directors and Chief Executive Officer of Autohome, stated, "We are pleased to announce the financial results of our third quarter of 2021, which is another profitable quarter, as we maintained our leading market share and delivered total revenues of RMB1.76 billion. Despite the challenges for our traditional business due to chip shortage and reductions in marketing spending by OEMs and dealers, we are inspired by our solid progress in strategy implementation, which focuses on high-quality future growth in new business. In particular, revenues from new energy vehicle ("NEV") brands more than doubled year-over-year in the third quarter as we increased our efforts to engage with NEV automakers. Besides, the popularity of our digital-dealer-solutions packages grew steadily, evidenced by increasing data products adoption among dealer stores along with high penetration rate."

Mr. Long added, "Our content differentiation strategy and a series of innovative initiatives have successfully strengthened Autohome's content ecosystem, delivered a better user experience and sustained solid traffic expansion. In September 2021, our mobile daily active users increased by 12.3% year-over-year, a further testament to our leadership position in the auto media vertical.

Mr. Long continued, "we are also pleased to announce the share repurchase program of US$ 200 million, which demonstrates our confidence in Autohome's fundamentals, business outlook and the growth opportunities presented by our upgraded strategies. We believe that the share repurchase program will ultimately benefit Autohome as well as maximize value for our shareholders. Our strong cash positions bolster our ability to carry out this program while continuously investing in our value-driving strategies and new business, promoting Autohome's sustainable growth."

"Looking ahead, we will continue to build upon our solid business fundamentals and strong cash position, together with support from Ping An Group, to execute our strategic upgrades, and we are highly confident that we will make significant progress with more competitiveness in the long run." Mr. Long concluded.

Unaudited Third Quarter 2021 Financial Results

NetRevenues

Net revenues in the third quarter of 2021 were RMB1,763.8 million ($273.7 million), compared to RMB2,315.6 million in the corresponding period of 2020.

* Media services revenues were RMB434.1 million ($67.4 million), compared to RMB927.4 million in the corresponding period of 2020. The decline was primarily due to the decrease in average revenue per automaker advertiser, who adjusted their advertising budgets due to the ongoing global chip shortage and the elevated price of raw materials. * Leads generation services revenues were RMB768.4 million ($119.3 million), compared to RMB840.5 million in the corresponding period of 2020. The decline was primarily due to the decrease in dealers' marketing spending. * Online marketplace and others revenues increased by 2.5% year- over- year to RMB561.2 million ($87.1 million) from RMB547.7 million in the corresponding period of 2020. The increase was primarily due to the consolidation of TTP.

Cost of Revenues

Cost of revenues was RMB281.2 million ($43.6 million) in the third quarter of 2021, compared to RMB250.1 million in the corresponding period of 2020. The increase was primarily attributable to the consolidation of TTP. In addition, share-based compensation expense included in cost of revenues was RMB6.4 million ($1.0 million) during the third quarter of 2021, compared to RMB5.5 million in the corresponding period of 2020.

Operating Expenses

Operating expenses were RMB1,187.0 million ($184.2 million) in the third quarter of 2021, compared to RMB1,468.0 million in the corresponding period of 2020.

* Sales and marketing expenses were RMB712.2 million ($110.5 million) in the third quarter of 2021, compared to RMB979.3 million in the corresponding period of 2020, primarily due to the decrease in promotional spending and continuous budget control. Share-based compensation expense included in sales and marketing expenses in the third quarter of 2021 was RMB14.7 million ($2.3 million), compared to RMB11.2 million in the corresponding period of 2020. * General and administrative expenses were RMB110.7 million ($17.2 million) in the third quarter of 2021, compared to RMB139.6 million in the corresponding period of 2020. Share-based compensation expense included in general and administrative expenses in the third quarter of 2021 was RMB9.6 million ($1.5 million), compared to RMB11.5 million in the corresponding period of 2020. * Product development expenses were RMB364.0 million ($56.5 million) in the third quarter of 2021, compared to RMB349.0 million in the corresponding period of 2020, primarily due to the increased investment in research and development activities. Share-based compensation expense included in product development expenses in the third quarter of 2021 was RMB23.6 million ($3.7 million), compared to RMB25.7 million in the corresponding period of 2020.

Operating Profit

Operating profit was RMB365.1 million ($56.7 million) in the third quarter of 2021, compared to RMB744.2 million in the corresponding period of 2020.

Income TaxExpense

There was an income tax expense of RMB18.2 million ($2.8 million) in the third quarter of 2021, compared to RMB31.9 million in the corresponding period of 2020.

Net Income attributable to Autohome Inc.

Net income attributable to Autohome Inc. was RMB521.7 million ($81.0 million) in the third quarter of 2021, compared with RMB846.7 million in the corresponding period of 2020.

NetIncome attributable to Ordinary Shareholdersand Earnings per Share/ADS

Net income attributable to ordinary shareholders was RMB511.0 million ($79.3 million) in the third quarter of 2021, compared to RMB846.7 million in the corresponding period of 2020. Basic and diluted earnings per share ("EPS") were RMB1.01($0.16) and RMB1.01($0.16), respectively, as compared to basic and diluted EPS of RMB1.77 and RMB1.76, respectively, in the corresponding period of 2020. Basic and diluted earnings per ADS were RMB4.04($0.63) and RMB4.04($0.63), respectively, as compared to basic and diluted earnings per ADS of RMB7.09 and RMB7.06, respectively, in the corresponding period of 2020.

Adjusted Net Income attributable to Autohome Inc.(Non-GAAP) and Non-GAAPEPS/ADS

Adjusted net income attributable to Autohome Inc. (Non-GAAP) was RMB583.2 million ($90.5 million) in the third quarter of 2021, compared to RMB901.8 million in the corresponding period of 2020. Non-GAAP basic and diluted EPS were RMB1.15($0.18) and RMB1.15($0.18), respectively, compared to non-GAAP basic and diluted EPS of RMB1.89 and RMB1.88, respectively, in the corresponding period of 2020. Non-GAAP basic and diluted earnings per ADS were RMB4.61($0.72) and RMB4.61($0.72), respectively, compared to non-GAAP basic and diluted earnings per ADS of RMB7.55 and RMB7.52, respectively, in the corresponding period of 2020.

Balance Sheet and Cash Flow

As of September 30, 2021, the Company had cash and cash equivalents and short-term investments of RMB19.18 billion ($2.98 billion). Net cash provided by operating activities in the third quarter of 2021 was RMB567.5 million ($88.1 million).

Employees

The Company had 6,048 employees as of September 30, 2021, including 2,191 employees from TTP.

Conference Call Information

The Company will host an earnings conference call at 7:00 AM U.S. Eastern Time on Thursday, November 18, 2021 (8:00 PM Beijing Time on the same day).

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

United States: +1-855-824-5644

Hong Kong, China: +852-3027-6500

Mainland, China: 8009-880-563/ 400-821-0637

United Kingdom: 0800-026-1542

International: +1-646-722-4977

Passcode: 67228218#

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until November 25, 2021:

United States: +1-646-982-0473

International: +61-2-8325-2405

Passcode: 520000132#

Additionally, a live and archived webcast of the conference call will be available at http://ir.autohome.com.cn.

About Autohome Inc.

Autohome Inc. (NYSE: ATHM; HKEX: 2518) is the leading online destination for automobile consumers in China. Its mission is to engage, educate and inform consumers about everything auto. Autohome provides original generated content, professionally generated content, user-generated content, and AI-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns. Further, the Company's dealer subscription and advertising services allow dealers to market their inventory and services through Autohome's platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. Autohome operates its "Autohome Mall," a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its websites and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services. For further information, please visit www.autohome.com.cn.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to 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 "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things, Autohome's business outlook, Autohome's strategic and operational plans and quotations from management in this announcement contain forward-looking statements. Autohome may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), 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 Autohome's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Autohome's goals and strategies; Autohome's future business development, results of operations and financial condition; the expected growth of the online automobile advertising market in China; Autohome's ability to attract and retain users and advertisers and further enhance its brand recognition; Autohome's expectations regarding demand for and market acceptance of its products and services; competition in the online automobile advertising industry; relevant government policies and regulatory environment of China; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Autohome's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Autohome does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

To supplement net income presented in accordance with U.S. GAAP, we use Adjusted Net Income attributable to Autohome Inc., Non-GAAP basic and diluted EPS and per ADS, Adjusted net margin and Adjusted EBITDA as non-GAAP financial measures. We define Adjusted Net Income attributable to Autohome Inc. as net income attributable to Autohome Inc. excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisition. We define Non-GAAP basic and diluted EPS as Adjusted Net Income attributable to Autohome Inc. divided by the basic and diluted weighted average number of ordinary shares. We define Adjusted net margin as Adjusted Net Income attributable to Autohome Inc. divided by total net revenues. We define Adjusted EBITDA as net income attributable to Autohome Inc. before income tax expense, depreciation expenses of property and equipment, amortization expenses of intangible assets, and share-based compensation expenses. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance, in addition to net income prepared in accordance with U.S. GAAP. We believe these non-GAAP financial measures are important to help investors understand our operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess our core operating results, as they exclude certain expenses that are not expected to result in cash payments. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of our results. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of non-GAAP and GAAP Results" set forth at the end of this press release.

For investor and media inquiries, please contact:

In China:

Autohome Inc.Investor Relations

Tel: +86-10-5985-7483E-mail: ir@autohome.com.cn

The Piacente Group, Inc.Jenny CaiTel: +86-10-6508-0677 E-mail: autohome@tpg-ir.com

In the United States:

The Piacente Group, Inc.Brandi PiacenteTel: +1-212-481-2050 E-mail: autohome@tpg-ir.com

AUTOHOME INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(Amount in thousands, except per share / per ADS data)

For three months ended September 30,

2020 2021

RMB RMB US$

(Unaudited) (Unaudited) (Unaudited)

Net revenues:

Media services 927,361 434,102 67,372

Leads generation services 840,470 768,412 119,256

Online marketplace and others 547,737 561,249 87,104

Total net revenues 2,315,568 1,763,763 273,732

Cost of revenues (250,085) (281,212) (43,643)

Gross profit 2,065,483 1,482,551 230,089

Operating expenses:

Sales and marketing expenses (979,337) (712,196) (110,531)

General and administrative expenses (139,632) (110,748) (17,188)

Product development expenses (349,010) (364,029) (56,496)

Total operating expenses (1,467,979) (1,186,973) (184,215)

Other income, net 146,672 69,506 10,787

Operating profit 744,176 365,084 56,661

Interest income 135,091 152,307 23,638

Loss from equity method investments (280) (102) (16)

Income before income taxes 878,987 517,289 80,283

Income tax expense (31,914) (18,204) (2,825)

Net income 847,073 499,085 77,458

Net (income)/ loss attributable to noncontrolling (402) 22,635 3,513 interests

Net income attributable to Autohome Inc. 846,671 521,720 80,971

Accretion of mezzanine equity - (24,445) (3,794)

Accretion attributable to noncontrolling interests - 13,763 2,136

Net income attributable to ordinary 846,671 511,038 79,313 shareholders

Earnings per share for ordinary shares

Basic 1.77 1.01 0.16

Diluted 1.76 1.01 0.16

Earnings per ADS attributable to ordinaryshareholders (one ADS equals for four ordinaryshares)

Basic 7.09 4.04 0.63

Diluted 7.06 4.04 0.63

Weighted average shares used to compute earnings per share attributable to ordinary shareholders:

Basic 477,836,800 505,628,316 505,628,316

Diluted 479,842,768 505,851,862 505,851,862

AUTOHOME INC.

RECONCILIATION OF NON-GAAP AND GAAP RESULTS

(Amount in thousands, except per share / per ADS data)

For three months ended September 30,

2020 2021

RMB RMB US$

(Unaudited) (Unaudited) (Unaudited)

Net income attributable to Autohome Inc. 846,671 521,720 80,971

Plus: income tax expense 31,914 19,914 3,091

Plus: depreciation of property and equipment 42,364 56,550 8,776

Plus: amortization of intangible assets 2,951 9,538 1,480

EBITDA 923,900 607,722 94,318

Plus: share-based compensation expenses 53,943 54,276 8,424

Adjusted EBITDA 977,843 661,998 102,742

Net income attributable to Autohome Inc. 846,671 521,720 80,971

Plus: amortization of intangible assets resulting 1,139 7,191 1,116 from business acquisition

Plus: share-based compensation expenses 53,943 54,276 8,424

Adjusted net income attributable to Autohome 901,753 583,187 90,511 Inc.

Net income attributable to Autohome Inc. 846,671 521,720 80,971

Net margin 36.6% 29.6% 29.6%

Adjusted net income attributable to Autohome 901,753 583,187 90,511 Inc.

Adjusted net margin 38.9% 33.1% 33.1%

Non-GAAP earnings per share

Basic 1.89 1.15 0.18

Diluted 1.88 1.15 0.18

Non-GAAP earnings per ADS (one ADS equals for four ordinary shares)

Basic 7.55 4.61 0.72

Diluted 7.52 4.61 0.72

Weighted average shares used to compute non- GAAP earnings per share:

Basic 477,836,800 505,628,316 505,628,316

Diluted 479,842,768 505,851,862 505,851,862

AUTOHOME INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Amount in thousands, except as noted)

As of December 31, As of September 30,

2020 2021

RMB RMB US$

(Audited) (Unaudited) (Unaudited)

ASSETS

Current assets

Cash and cash equivalents 1,751,222 2,321,132 360,234

Restricted Cash - 87,235 13,539

Short-term investments 12,878,176 16,862,459 2,617,013

Accounts receivable, net 3,124,197 2,263,101 351,228

Amounts due from related parties, current 47,303 44,624 6,926

Prepaid expenses and other current assets 563,182 361,236 56,063

Total current assets 18,364,080 21,939,787 3,405,003

Non-current assets

Restricted cash, non-current 17,926 5,200 807

Property and equipment, net 410,081 410,756 63,748

Goodwill and intangible assets, net 4,511,812 4,448,529 690,401

Long-term investments 70,418 69,356 10,764

Deferred tax assets 79,661 96,191 14,929

Other non-current assets 276,867 196,586 30,510

Total non-current assets 5,366,765 5,226,618 811,159

Total assets 23,730,845 27,166,405 4,216,162

LIABILITIES AND EQUITY

Current liabilities

Accrued expenses and other payables 2,577,709 1,739,412 269,953

Advance from customers 127,235 114,520 17,773

Deferred revenue 1,315,667 647,134 100,434

Income tax payable 85,177 257,689 39,993

Amounts due to related parties 79,895 32,445 5,035

Other current liabilities - 14,247 2,211

Total current liabilities 4,185,683 2,805,447 435,399

Non-current liabilities

Other liabilities 104,861 47,937 7,441

Deferred tax liabilities 631,509 594,082 92,200

Total non-current liabilities 736,370 642,019 99,641

Total liabilities 4,922,053 3,447,466 535,040

MEZZANINE EQUITY

Convertible redeemable noncontrolling interests 1,056,237 1,436,972 223,015

EQUITY

Total Autohome Inc. shareholders' equity 17,625,734 22,556,366 3,500,693

Noncontrolling interests 126,821 (274,399) (42,586)

Total equity 17,752,555 22,281,967 3,458,107

Total liabilities, mezzanine equity and equity 23,730,845 27,166,405 4,216,162

View original content: https://www.prnewswire.com/news-releases/autohome-inc-announces-unaudited-2021-third-quarter-financial-results-and-us200-million-share-repurchase-program-301427887.html

SOURCE Autohome Inc.