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| 8-K - FORM 8-K FILING DOCUMENT - MERCADOLIBRE INC | document.htm |
EXHIBIT 99.1
MercadoLibre, Inc. Reports Financial Results for Fourth Quarter and Full Year 2011
* Q4'11 gross merchandise volume grew by 46.7% year-over-year to $1,450.0 million
* Items sold during Q4'11 increased by 40.9% year-over-year to 15.9 million
* During Q4'11 total payment transactions grew by 94.9% to 4.7 million
BUENOS AIRES, Argentina, Feb. 23, 2012 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com), Latin America's leading e-commerce technology company, today reported financial results for the fourth quarter and full year ended December 31, 2011.
Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc., commented, "The vast improvements to our platform that were carried out throughout this past year continued to drive innovation and growth throughout MercadoLibre in the fourth quarter of 2011. We are proud of the significant steps we have taken to consolidate our position of leadership in the Latin American e-commerce market, and are also excited about the challenges and opportunities that 2012 will bring."
Financial Results Summary
MercadoLibre reported consolidated net revenues for the three months ended December 31, 2011 of $86.5 million, representing 38.8% year-over-year growth while in local currencies growth was 46.5%.
For the three months ended December 31, 2011, gross merchandise volume grew 46.7% year-over-year to $1,450.0 million, while total payment volume grew 70.4% year-over-year to $402.3 million. In local currencies, gross merchandise volume grew 54.4% year-over-year, while payment volume grew 81.1% year-over-year.
Items sold on MercadoLibre during the fourth quarter 2011 increased 40.9% to 15.9 million, while total payments transactions through MercadoPago increased 94.9% to 4.7 million.
Gross profit for the fourth quarter of 2011 was $65.7 million, a 35.5% increase over the previous year quarter. Gross profit margin for the period was 76.0%, down from 77.9% during the fourth quarter of 2010, as the lower margin payments volume continued to grow at a faster pace than the merchandise volume.
Income from operations grew 38.1% to $29.0 million in the fourth quarter of 2011 compared to $21.0 million in the fourth quarter of 2010. Operating income margin for the fourth quarter of 2011 was 33.5%. Net Income before taxes was $30.8 million, an increase of 39.7% over the fourth quarter of 2010.
Net income for the three months ended December 31, 2011, increased 35.6% year-over-year to $21.6 million while in local currencies increased 42.0%. Net income margin was 25.0% for the fourth quarter of 2011, compared to 25.6% for the same period last year. Earnings per share for the fourth quarter of 2011 were $0.47 compared to $0.36 for the prior year quarter.
Free cash flow, defined as cash from operating activities less purchases of property, equipment, intangible asset and business acquired, was $25.1 million for the three months ended December 31, 2011.
For the full year, MercadoLibre generated $4.8 billion in gross merchandise volume, consolidated net revenues of $298.9 million, and net income of $76.8 million, or $1.73 per share. Gross merchandise volume was up 41.5% in 2011 when compared to the full year 2010, while net revenues increased 37.9% and net income increased 37.1%.
The following table summarizes certain key performance metrics for the three months ended December 31, 2011 and 2010.
| Three month ended December 31, (in MM) | 2011 | 2010 | %YOY |
| Total confirmed registered users at the end of period | 65.8 | 52.9 | 24.4% |
| New confirmed registered users during the period | 3.8 | 2.7 | 42.9% |
| Gross merchandise volume | $ 1,450.0 | $ 988.1 | 46.7% |
| Items sold | 15.9 | 11.3 | 40.9% |
| Total payments volume | $ 402.3 | $ 236.1 | 70.4% |
| Total payments transactions | 4.7 | 2.4 | 94.9% |
Table of Year-on-Year Local Currency Revenue Growth Rates by Quarter
| YoY Growth rates at previous years exchange rates | |||||||||
| Consolidated Net Revenues | |||||||||
| Q4'09 | Q1'10 | Q2'10 | Q3'10 | Q4'10 | Q1'11 | Q2'11 | Q3'11 | Q4`11 | |
| Brazil | 38% | 35% | 26% | 7% | 15% | 22% | 15% | 38% | 39% |
| Argentina | 60% | 67% | 62% | 48% | 52% | 33% | 37% | 55% | 70% |
| Mexico | 36% | 25% | 19% | 11% | 12% | 11% | 7% | 14% | 31% |
| Venezuela | 68% | 59% | 69% | 61% | 57% | 58% | 39% | 57% | 64% |
| Others | 68% | 47% | 24% | 14% | 22% | 22% | 32% | 37% | 35% |
| Total | 49% | 45% | 39% | 23% | 25% | 26% | 22% | 41% | 46% |
Conference Call and Webcast
The Company will host a conference call and audio webcast on February 23, 2012 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing (970) 315-0420 or (877) 303-7209 (Conference ID 53123204) and requesting inclusion in the call for MercadoLibre. The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at http://investor.mercadolibre.com. An archive of the webcast will be available for one week following the conclusion of the conference call.
Definition of Selected Operational Metrics
Total confirmed registered users – Measure of the cumulative number of users who have registered on the MercadoLibre Marketplace and confirmed their registration.
New confirmed registered users – Measure of the number of new users who have registered on the MercadoLibre Marketplace and confirmed their registration.
Gross merchandise volume – Measure of the total U.S. dollar sum of all transactions completed through the MercadoLibre Marketplace, excluding motor vehicles, vessels, aircraft, real estate, and services.
Items sold – Measure of the number of items sold/purchased through the MercadoLibre Marketplace.
Total payment volume – Measure of total U.S. dollar sum of all transactions paid for using MercadoPago.
Total payment transactions – Measure of the number of all transactions paid for using MercadoPago.
Operating margin – Defined as income from operations as a percentage of net revenues.
Net Income margin – Defined as net income as a percentage of net revenues.
Free Cash Flow – Defined as cash flow from operating activities less property, equipment, intangible asset purchases and business acquired.
Local Currency Growth Rates – Calculated by using the average monthly exchange rate for each month during the previous year and applying it to the corresponding month in the current year, so as to calculate what the growth would have been had exchange rates been the same throughout both periods.
About MercadoLibre
Founded in 1999, MercadoLibre is Latin America's leading e-commerce technology company. Through its primary platforms, MercadoLibre.com and MercadoPago.com, it provides solutions to individuals and companies buying, selling, advertising, and paying for goods online.
MercadoLibre.com serves millions of users and creates a market for a wide variety of goods and services in an easy, safe and efficient way. The site is among the top 50 in the world in terms of page views and is the leading retail platform in unique visitors in each country in which it operates according to metrics provided by comScore Networks. MercadoLibre maintains a leadership position in 12 Latin American countries. The Company is listed on NASDAQ (Nasdaq:MELI) following its initial public offering in 2007.
For more information about the company visit: http://investor.mercadolibre.com.
The MercadoLibre, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4193
| Consolidated balance sheets | ||||
|
December 31, 2011 |
December 31, 2010 |
|||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 67,381,677 | $ 56,830,466 | ||
| Short-term investments | 74,928,620 | 5,342,766 | ||
| Accounts receivable, net | 16,815,087 | 12,618,173 | ||
| Credits Cards Receivables | 23,855,689 | 6,151,518 | ||
| Prepaid expenses | 1,269,594 | 913,262 | ||
| Deferred tax assets | 9,131,638 | 12,911,256 | ||
| Other assets | 6,863,250 | 6,867,767 | ||
| Total current assets | 200,245,555 | 101,635,208 | ||
| Non-current assets: | ||||
| Long-term investments | 43,933,316 | 78,846,281 | ||
| Property and equipment, net | 30,877,719 | 20,817,712 | ||
| Goodwill, net | 62,093,948 | 60,496,314 | ||
| Intangible assets, net | 6,494,857 | 4,141,167 | ||
| Deferred tax assets | 6,491,646 | 2,975,118 | ||
| Other assets | 5,794,395 | 771,223 | ||
| Total non-current assets | 155,685,881 | 168,047,815 | ||
| Total assets | $ 355,931,436 | $ 269,683,023 | ||
| Liabilities and Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ 20,251,313 | $ 17,232,103 | ||
| Funds payable to customers | 69,216,185 | 48,788,225 | ||
| Payroll and social security payable | 13,525,293 | 10,786,534 | ||
| Taxes payable | 11,633,178 | 11,487,574 | ||
| Loans payable and other financial liabilities | 146,194 | 100,031 | ||
| Dividends payable | 3,531,362 | -- | ||
| Total current liabilities | 118,303,525 | 88,394,467 | ||
| Non-current liabilities: | ||||
| Payroll and social security payable | 3,844,172 | 2,562,343 | ||
| Loans payable and other financial liabilities | 136,227 | 188,846 | ||
| Deferred tax liabilities | 8,670,606 | 5,167,699 | ||
| Other liabilities | 1,797,890 | 1,651,398 | ||
| Total non-current liabilities | 14,448,895 | 9,570,286 | ||
| Total liabilities | $ 132,752,420 | $ 97,964,753 | ||
| Commitments and contingencies | ||||
| Redeemable Noncontrolling Interest | $ 4,000,000 | $ -- | ||
| Equity: | ||||
| Common stock, $0.001 par value, 110,000,000 shares authorized, | ||||
| 44,142,020 and 44,131,376 shares issued and outstanding at December 31, | ||||
| 2011 and December 31, 2010, respectively | $ 44,142 | $ 44,131 | ||
| Additional paid-in capital | 120,452,032 | 120,391,622 | ||
| Retained earnings | 135,726,188 | 73,681,556 | ||
| Accumulated other comprehensive loss | (37,043,346) | (22,399,039) | ||
| Total Equity | 219,179,016 | 171,718,270 | ||
| Total liabilities, redeemable noncontrolling interest and equity | $ 355,931,436 | $ 269,683,023 | ||
| Consolidated statements of income | ||||||
| Year Ended December 31, | ||||||
| 2011 | 2010 | 2009 | ||||
| Net revenues | $ 298,931,625 | $ 216,715,713 | $ 172,843,621 | |||
| Cost of net revenues | (72,055,835) | (46,549,845) | (35,958,050) | |||
| Gross profit | 226,875,790 | 170,165,868 | 136,885,571 | |||
| Operating expenses: | ||||||
| Product and technology development | (23,349,787) | (15,855,992) | (12,140,521) | |||
| Sales and marketing | (64,968,755) | (48,883,167) | (42,861,735) | |||
| General and administrative | (38,785,083) | (30,828,146) | (25,849,596) | |||
| Total operating expenses | (127,103,625) | (95,567,305) | (80,851,852) | |||
| Income from operations | 99,772,165 | 74,598,563 | 56,033,719 | |||
| Other income (expenses): | ||||||
| Interest income and other financial gains | 9,905,829 | 4,931,215 | 2,695,109 | |||
| Interest expense and other financial charges | (3,648,733) | (7,601,671) | (13,357,554) | |||
| Foreign currency gain / (loss) | 2,353,005 | (62,447) | (2,658,476) | |||
| Other income, net | 73,894 | -- | -- | |||
| Net income before income / asset tax expense | 108,456,160 | 71,865,660 | 42,712,798 | |||
| Income / asset tax expense | (31,659,821) | (15,840,641) | (9,504,005) | |||
| Net income | $ 76,796,339 | $ 56,025,019 | $ 33,208,793 | |||
| Less: Net Income attributable to Noncontrolling Interest | 16,286 | -- | -- | |||
| Net income attributable to MercadoLibre, Inc. | $ 76,780,053 | $ 56,025,019 | $ 33,208,793 | |||
| Year Ended December 31, | |||
| 2011 | 2010 | 2009 | |
| Basic EPS | |||
| Basic net income attributable to MercadoLibre, Inc. per common share | $1.73 | $1.27 | $0.75 |
| Weighted average shares | 44,138,397 | 44,124,018 | 44,086,892 |
| Diluted EPS | |||
| Diluted net income attributable to MercadoLibre, Inc. per common share | $1.73 | $1.27 | $0.75 |
| Weighted average shares | 44,151,437 | 44,146,858 | 44,144,368 |
| Consolidated statements of income | ||||
| Three Months Ended December 31, | ||||
| 2011 | 2010 | |||
| (Unaudited) | ||||
| Net revenues | $ 86,465,653 | $ 62,316,230 | ||
| Cost of net revenues | (20,724,539) | (13,794,314) | ||
| Gross profit | 65,741,114 | 48,521,916 | ||
| Operating expenses: | ||||
| Product and technology development | (6,748,985) | (4,430,275) | ||
| Sales and marketing | (19,401,416) | (14,019,551) | ||
| General and administrative | (10,624,821) | (9,103,067) | ||
| Total operating expenses | (36,775,222) | (27,552,893) | ||
| Income from operations | 28,965,891 | 20,969,023 | ||
| Other income (expenses): | ||||
| Interest income and other financial gains | 2,868,565 | 1,857,787 | ||
| Interest expense and other financial charges | (1,086,099) | (682,363) | ||
| Foreign currency gain / (loss) | 272,183 | (69,722) | ||
| Other income, net | (179,255) | -- | ||
| Net income before income / asset tax expense | 30,841,285 | 22,074,725 | ||
| Income / asset tax expense | (9,219,854) | (6,135,233) | ||
| Net income | $ 21,621,431 | $ 15,939,493 | ||
| Less: Net Income attributable to Noncontrolling Interest | 15,764 | -- | ||
| Net income attributable to MercadoLibre, Inc. | $ 21,605,667 | $ 15,939,492 | ||
| Three Months Ended December 31, | |||
| 2011 | 2010 | ||
| (Unaudited) | |||
| Basic EPS | |||
| Basic net income attributable to MercadoLibre, Inc. per common share | $0.47 | $0.36 | |
| Weighted average shares | 44,142,020 | 44,131,376 | |
| Diluted EPS | |||
| Diluted net income attributable to MercadoLibre, Inc. per common share | $0.47 | $0.36 | |
| Weighted average shares | 44,152,658 | 44,151,762 | |
| Consolidated statements of cash flows | ||||||
| Year Ended December 31, | ||||||
| 2011 | 2010 | 2009 | ||||
| Cash flows from operations: | ||||||
| Net income | $76,780,053 | $56,025,019 | $33,208,793 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Net Income attributable to noncontrolling Interest | 16,286 | -- | -- | |||
| Depreciation and amortization | 7,268,075 | 4,921,650 | 3,893,752 | |||
| Interest expense | -- | 213,878 | ||||
| Accrued interest | (3,177,578) | (504,874) | 90,339 | |||
| Stock-based compensation expense - stock options | -- | 244 | 1,752 | |||
| Stock-based compensation expense - restricted shares | -- | 37,696 | 74,382 | |||
| LTRP accrued compensation | 4,079,265 | 3,479,066 | 1,924,149 | |||
| Deferred income taxes | 1,022,797 | (7,053,030) | (3,607,292) | |||
| Changes in assets and liabilities, net of the effect of the acquired business : | ||||||
| Accounts receivable | (9,274,653) | (7,063,942) | (2,974,890) | |||
| Credit Card Receivables | (19,494,707) | (2,324,575) | (942,407) | |||
| Prepaid expenses | (436,310) | (333,755) | (287,836) | |||
| Other assets | (6,532,978) | (3,463,650) | (2,591,353) | |||
| Accounts payable and accrued expenses | 10,808,788 | 9,051,139 | 8,686,334 | |||
| Funds payable to customers | 27,875,755 | 15,458,416 | 12,421,412 | |||
| Provisions | -- | (63,549) | 302,987 | |||
| Other liabilities | 490,838 | (89,402) | (713,014) | |||
| Net cash provided by operating activities | 89,425,631 | 67,896,453 | 49,700,986 | |||
| Cash flows from investing activities: | ||||||
| Purchase of investments | (379,044,395) | (121,266,157) | (80,060,909) | |||
| Proceeds from sale and maturity of investments | 336,835,026 | 76,062,629 | 81,728,485 | |||
| Payment for acquired businesses, net of cash acquired | (5,468,180) | -- | -- | |||
| Purchases of intangible assets | (280,706) | (416,450) | (955,679) | |||
| Purchases of property and equipment | (18,924,161) | (13,214,043) | (3,798,170) | |||
| Net cash used in investing activities | (66,882,416) | (58,834,021) | (3,086,273) | |||
| Cash flows from financing activities: | ||||||
| Decrease in short term debt | -- | -- | (310,634) | |||
| Loans paid | -- | (3,000,000) | (15,000,000) | |||
| Dividends distribution | (10,593,206) | -- | -- | |||
| Stock options exercised | 11,175 | 18,199 | 28,354 | |||
| Net cash used in financing activities | (10,582,031) | (2,981,801) | (15,282,280) | |||
| Effect of exchange rate changes on cash and cash equivalents | (1,409,973) | 946,433 | 996,857 | |||
| Net increase in cash and cash equivalents | 10,551,211 | 7,027,064 | 32,329,290 | |||
| Cash and cash equivalents, beginning of the year | 56,830,466 | 49,803,402 | 17,474,112 | |||
| Cash and cash equivalents, end of the year | $67,381,677 | $56,830,466 | $49,803,402 | |||
| Year Ended December 31, | ||||||
| 2011 | 2010 | 2009 | ||||
| Supplemental cash flow information: | ||||||
| Cash paid for interest | $58,559 | $5,781,058 | $12,332,592 | |||
| Cash paid for income and asset taxes | $31,050,206 | $22,253,947 | $11,650,007 | |||
| Acquisition of AutoPlaza.com | ||||||
| Cash and cash equivalents | $3,876 | $ -- | $ -- | |||
| Tax credits | 49,951 | -- | -- | |||
| Noncurrent assets | 99,522 | -- | -- | |||
| Total assets acquired | 153,349 | -- | -- | |||
| Total liabilities assumed | -- | -- | -- | |||
| Net assets acquired | 153,349 | -- | -- | |||
| Goodwill and Identifiable Intangible Assets | 8,966,744 | -- | -- | |||
| Non-controlling interest | (3,648,037) | |||||
| Total purchase price | 5,472,056 | -- | -- | |||
| Cash and cash equivalents acquired | 3,876 | -- | -- | |||
| Payment for acquired businesses, net of cash acquired | $5,468,180 | $ -- | $ -- | |||
| Financial results of reporting segments | ||||||||||||
| Year Ended December 31, 2011 | ||||||||||||
| Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | |||||||
| Net revenues | $165,905,789 | $56,714,941 | $22,275,213 | $34,828,878 | $19,206,804 | $298,931,625 | ||||||
| Direct costs | (96,910,310) | (23,463,871) | (12,472,204) | (13,287,279) | (10,062,446) | (156,196,110) | ||||||
| Direct contribution | 68,995,479 | 33,251,070 | 9,803,009 | 21,541,599 | 9,144,358 | 142,735,515 | ||||||
| Operating expenses and indirect costs of net revenues | (42,963,350) | |||||||||||
| Income from operations | 99,772,165 | |||||||||||
| Other income (expenses): | ||||||||||||
| Interest income and other financial gains | 9,905,829 | |||||||||||
| Interest expense and other financial results | (3,648,733) | |||||||||||
| Foreign currency gains | 2,353,005 | |||||||||||
| Other income, net | 73,894 | |||||||||||
| Net income before income / asset tax expense | $108,456,160 | |||||||||||
| Year Ended December 31, 2010 | ||||||||||||
| Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | |||||||
| Net revenues | $122,825,076 | $39,892,763 | $18,950,450 | $20,885,541 | $14,161,883 | $216,715,713 | ||||||
| Direct costs | (73,393,467) | (19,649,506) | (11,723,168) | (9,875,510) | (7,785,914) | ($122,427,565) | ||||||
| Direct contribution | 49,431,609 | 20,243,257 | 7,227,282 | 11,010,031 | 6,375,969 | 94,288,148 | ||||||
| Operating expenses and indirect costs of net revenues | (19,689,585) | |||||||||||
| Income from operations | 74,598,563 | |||||||||||
| Other income (expenses): | ||||||||||||
| Interest income and other financial gains | 4,931,215 | |||||||||||
| Interest expense and other financial results | (7,601,671) | |||||||||||
| Foreign currency loss | (62,447) | |||||||||||
| Net income before income / asset tax expense | $71,865,660 | |||||||||||
| Year Ended December 31, 2009 | ||||||||||||
| Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | |||||||
| Net revenues | $93,087,758 | $26,737,937 | $15,314,982 | $27,331,095 | $10,371,849 | $172,843,621 | ||||||
| Direct costs | (50,230,893) | (12,506,604) | (9,655,783) | (13,717,899) | (5,978,443) | ($92,089,622) | ||||||
| Direct contribution | 42,856,865 | 14,231,333 | 5,659,199 | 13,613,196 | 4,393,406 | 80,753,999 | ||||||
| Operating expenses and indirect costs of net revenues | (24,720,280) | |||||||||||
| Income from operations | 56,033,719 | |||||||||||
| Other income (expenses): | ||||||||||||
| Interest income and other financial gains | 2,695,109 | |||||||||||
| Interest expense and other financial results | (13,357,554) | |||||||||||
| Foreign currency loss | (2,658,476) | |||||||||||
| Other expenses, net | -- | |||||||||||
| Net income before income / asset tax expense | $42,712,798 | |||||||||||
| Financial results of reporting segments | ||||||||||||
| Three Months Ended December 31, 2011 | ||||||||||||
| Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | |||||||
| Net revenues | $45,246,546 | $17,914,864 | $6,062,213 | $11,777,702 | $5,464,328 | $86,465,653 | ||||||
| Direct costs | (27,197,798) | (7,618,197) | (3,590,393) | (4,190,282) | (2,816,636) | (45,413,306) | ||||||
| Direct contribution | 18,048,748 | 10,296,667 | 2,471,820 | 7,587,420 | 2,647,692 | 41,052,347 | ||||||
| Operating expenses and indirect costs of net revenues | (12,086,456) | |||||||||||
| Income from operations | 28,965,891 | |||||||||||
| Other income (expenses): | ||||||||||||
| Interest income and other financial gains | 2,868,565 | |||||||||||
| Interest expense and other financial results | (1,086,099) | |||||||||||
| Foreign currency gain | 272,183 | |||||||||||
| Other losses, net | (179,255) | |||||||||||
| Net income before income / asset tax expense | $30,841,285 | |||||||||||
| Three Months Ended December 31, 2010 | ||||||||||||
| Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | |||||||
| Net revenues | $34,614,541 | $11,283,573 | $5,088,529 | $7,179,615 | $4,149,973 | $62,316,231 | ||||||
| Direct costs | (23,303,343) | (5,663,817) | (3,178,256) | (3,115,680) | (2,091,412) | (37,352,508) | ||||||
| Direct contribution | 11,311,198 | 5,619,756 | 1,910,273 | 4,063,935 | 2,058,561 | 24,963,723 | ||||||
| Operating expenses and indirect costs of net revenues | (3,994,698) | |||||||||||
| Income from operations | 20,969,025 | |||||||||||
| Other income (expenses): | ||||||||||||
| Interest income and other financial gains | 1,857,787 | |||||||||||
| Interest expense and other financial results | (682,363) | |||||||||||
| Foreign currency loss | (69,722) | |||||||||||
| Net income before income / asset tax expense | $22,074,727 | |||||||||||
CONTACT: MercadoLibre, Inc.
Investor Relations
investor@mercadolibre.com
http://investor.mercadolibre.com