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* Items sold during Q2'12 increased by 35.6% year-over-year to 15.8 million * Net Revenues in Q2'12 grew to 88.8 million, a 47.1% growth in local currencies * Q2'12 net income increased to $25.4 million, a 90.8% growth in local currencies
BUENOS AIRES, Argentina, Aug. 2, 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 second quarter ended June 30, 2012.
Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc., commented, "Wrapping up the first half of 2012 I am very pleased with our solid performance, achieved despite currency and macro headwinds, confirming the strong secular tailwinds behind e-commerce growth, as well as our solid execution on top of a flexible business model that captures this growth through multiple channels. We are more focused than ever on building for the long term, growing our user base by providing them with a great experience, and with the new solutions they require, convinced that this is the right way to generate value going forward." Financial Results Summary
MercadoLibre reported consolidated net revenues for the three months ended June 30, 2012 of $88.8 million, representing a year-over-year growth of 28.1% in USD, and 47.1% in local currencies.
For the three months ended June 30, 2012, gross merchandise volume grew 21.7% year-over-year to $1,299.2 million, while total payment volume grew 39.1% year-over-year to $411.6 million. In local currencies, gross merchandise volume grew 37.3% year-over-year, while payment volume grew 64.4% year-over-year.
Items sold on MercadoLibre during the second quarter 2012 increased 35.6% to 15.8 million, while total payments transactions through MercadoPago increased 78.5% to 5.5 million.
Gross profit for the second quarter of 2012 was $65.0 million, a 23.9% increase over the previous year quarter. Gross profit margin for the period was 73.1%, down from 75.6% during the second quarter of 2011, driven primarily by the growth in the lower margin payment business.
Total operating expenses during the second quarter 2012 were $33.1 million, a 7.1% increase over the previous year quarter. Total operating expenses as percentage of net revenues for the second quarter of 2012 were 37.2%, down from 44.5% for the same quarter one year earlier.
Strong operating expense leverage led to Income from operations for the second quarter 2012 of $31.9 million, representing a year-over-year growth of 47.9% in USD, and 66.4% in local currencies. Operating income margin for the period was 35.9%, up from 31.1% during the second quarter of 2011.
Net income before taxes was $35.1 million, an increase of 56.4% over the second quarter of 2011. The blended tax rate for the quarter was of 27.7%, as compared to 34.0% during the same quarter one year earlier.
Net income for the three months ended June 30, 2012, increased 71.3% year-over-year to $25.4 million, a local currency growth of 90.8%. Net income margin was 28.6% for the second quarter of 2012, compared to 21.4% for the same period last year. Earnings per share for the second quarter of 2012 were $0.57 compared to $0.34 for the prior year quarter.
Free cash flow, defined as cash from operating activities less payment for the acquisition of property, equipment and intangible assets, was $33.5 million for the three months ended June 30, 2012. The following table summarizes certain key performance metrics for the three months ended June 30, 2012 and 2011. Table of Year-on-Year Local Currency Revenue Growth Rates by Quarter Conference Call and Webcast
The Company will host a conference call and audio webcast on August 2, 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 13764311) 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 payment completed transactions using MercadoPago. Operating margin — Defined as income from operations as
a percentage of net revenues. Blended tax rate — Defined as income and asset tax expense as a percentage of income before income and asset tax. Net income margin — Defined as net income as a percentage of net revenues. Free Cash Flow — Defined as cash flows from operating activities less property, equipment and intangible asset. 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 and services 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
Three month ended June 30, (in MM) 2012 2011 %YoY %YoY Constant USD
Total confirmed registered users at the end of period
73.2
58.4
25.3%
--
New confirmed registered users during the period
3.7
2.8
30.5%
--
Gross merchandise volume
$ 1,299.2
$ 1,067.8
21.7%
37.3%
Items sold
15.8
11.6
35.6%
--
Total payments volume
$ 411.6
$ 295.8
39.1%
64.4%
Total payments transactions
5.5
3.1
78.5%
--
YoY Growth rates at previous years exchange rates Consolidated Net Revenues
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Brazil
15%
38%
39%
29%
36%
Argentina
37%
55%
70%
85%
81%
Mexico
7%
14%
31%
35%
30%
Venezuela
39%
57%
64%
66%
72%
Others
32%
37%
35%
34%
30%
Total 22% 41% 46% 44% 47%
Consolidated balance sheets
June 30, December 31,
2012 2011
(Unaudited) (Audited) Assets
Current assets:
Cash and cash equivalents
$ 87,595,730
$ 67,381,677
Short-term investments
83,016,176
74,928,620
Accounts receivable, net
16,559,972
16,815,087
Credits Cards Receivables
28,021,663
23,855,689
Prepaid expenses
1,940,811
1,269,594
Deferred tax assets
9,366,084
9,131,638
Other assets
7,043,968
6,863,250
Total current assets
233,544,404
200,245,555
Non-current assets:
Long-term investments
49,571,882
43,933,316
Property and equipment, net
35,103,153
30,877,719
Goodwill, net
61,112,402
62,093,948
Intangible assets, net
7,622,698
6,494,857
Deferred tax assets
5,965,641
6,491,646
Other assets
5,631,553
5,794,395
Total non-current assets
165,007,329
155,685,881
Total assets
$ 398,551,733
$ 355,931,436
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses
$ 24,303,699
$ 20,251,313
Funds payable to customers
77,697,708
69,216,185
Salaries and social security payable
14,723,722
13,525,293
Taxes payable
10,346,811
11,633,178
Loans payable and other financial liabilities
146,604
146,194
Dividends payable
4,812,036
3,531,362
Total current liabilities
132,030,580
118,303,525
Non-current liabilities:
Salaries and social security payable
3,818,275
3,844,172
Loans payable and other financial liabilities
94,093
136,227
Deferred tax liabilities
8,554,494
8,670,606
Other liabilities
2,213,237
1,797,890
Total non-current liabilities
14,680,099
14,448,895
Total liabilities
$ 146,710,679
$ 132,752,420
Commitments and contingencies
Redeemable noncontrolling interest
$ 4,000,000
$ 4,000,000
Equity:
Common stock, $0.001 par value, 110,000,000 shares authorized, 44,148,720 and 44,142,020 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively
$ 44,149
$ 44,142
Additional paid-in capital
120,465,461
120,452,032
Retained earnings
171,253,118
135,726,188
Accumulated other comprehensive loss
(43,921,674)
(37,043,346)
Total Equity
247,841,054
219,179,016
Total liabilities, redeemable noncontrolling interest and equity
$ 398,551,733
$ 355,931,436
Consolidated statements of income
Six Months Ended June 30, Three Months Ended June 30,
2012 2011 2012 2011
(Unaudited) (Unaudited)
Net revenues
$ 172,580,065
$130,837,828
$ 88,844,059
$69,378,160
Cost of net revenues
(44,989,178)
(31,270,822)
(23,892,881)
(16,939,118)
Gross profit
127,590,887
99,567,006
64,951,178
52,439,042
Operating expenses:
Product and technology development
(13,719,892)
(10,675,783)
(6,133,819)
(5,518,892)
Sales and marketing
(34,233,040)
(28,865,357)
(16,805,362)
(15,636,413)
General and administrative
(22,822,289)
(19,183,316)
(10,127,077)
(9,732,340)
Total operating expenses
(70,775,221)
(58,724,456)
(33,066,258)
(30,887,645)
Income from operations
56,815,666
40,842,550
31,884,920
21,551,397
Other income (expenses):
Interest income and other financial gains
6,070,862
4,123,668
2,982,303
2,249,898
Interest expense and other financial losses
(551,617)
(1,509,769)
(474,300)
(880,819)
Foreign currency (loss) gains
(283,969)
(1,203,369)
749,008
(702,714)
Other income / (loss), net
(11,263)
260,441
(7,009)
240,097
Net income before income / asset tax expense
62,039,679
42,513,521
35,134,922
22,457,859
Income / asset tax expense
(17,007,817)
(13,635,062)
(9,740,098)
(7,637,033)
Net income
$ 45,031,862
$ 28,878,459
$ 25,394,824
$14,820,826
Less: Net Income attributable to Noncontrolling Interest
18,060
--
15,632
--
Net income attributable to MercadoLibre, Inc.
$ 45,013,802
$ 28,878,459
$ 25,379,192
$14,820,826
Six Months Ended June 30, Three Months Ended June 30, 2012 2011 2012 2011 (Unaudited) (Unaudited) Basic EPS
Basic net income attributable to MercadoLibre, Inc. per common share
$ 1.02
$ 0.65
$ 0.57
$ 0.34
Weighted average shares
44,145,038
44,134,763
44,147,999
44,138,105
Diluted EPS
Diluted net income attributable to MercadoLibre, Inc. per common share
$ 1.02
$ 0.65
$ 0.57
$ 0.34
Weighted average shares
44,149,178
44,149,911
44,152,133
44,152,296
Consolidated statements of cash flows
Six Months Ended June 30,
2012 2011
(Unaudited)
Cash flows from operations:
Net income attributable to MercadoLibre, Inc.
$ 45,013,802
$ 28,878,459
Adjustments to reconcile net income to net cash provided by operating activities:
Net Income attributable to Noncontrolling Interest
18,060
--
Depreciation and amortization
4,057,471
3,305,795
Accrued interest
(2,611,913)
(2,353,234)
LTRP accrued compensation
2,202,842
2,303,542
Deferred income taxes
145,970
1,484,213
Changes in assets and liabilities:
Accounts receivable
(3,034,916)
(164,556)
Credit Card Receivables
(5,810,748)
(1,779,329)
Prepaid expenses
(730,975)
(393,477)
Other assets
(453,355)
1,067,637
Accounts payable and accrued expenses
5,682,625
(5,766,185)
Funds payable to customers
13,461,760
6,718,843
Other liabilities
548,167
430,606
Net cash provided by operating activities
58,488,790
33,732,314
Cash flows from investing activities:
Purchase of investments
(205,377,324)
(200,995,988)
Proceeds from sale and maturity of investments
186,841,187
171,094,260
Purchases of intangible assets
(1,390,738)
(108,823)
Purchases of property and equipment
(8,323,905)
(13,247,416)
Net cash used in investing activities
(28,250,780)
(43,257,967)
Cash flows from financing activities:
Dividends paid
(8,343,398)
(3,530,510)
Stock options exercised
2,400
10,706
Net cash provided in financing activities
(8,340,998)
(3,519,804)
Effect of exchange rate changes on cash and cash equivalents
(1,682,959)
465,123
Net increase in cash and cash equivalents
20,214,053
(12,580,334)
Cash and cash equivalents, beginning of the period
67,381,677
56,830,466
Cash and cash equivalents, end of the period
$ 87,595,730
$ 44,250,132
Six Months Ended June 30, 2012 2011 (Unaudited) Supplemental cash flow information:
Cash paid for interest
$ 34,218
$ 26,426
Cash paid for income and asset taxes
$ 19,037,776
$ 14,806,871
Financial results of reporting segments
Three Months Ended June 30, 2012
Brazil Argentina Mexico Venezuela Other Countries Total
Net revenues
$ 44,205,857
$ 20,561,213
$6,046,812
$ 12,417,318
$ 5,612,859
$88,844,059
Direct costs
(25,066,435)
(9,543,476)
(3,269,574)
(3,728,913)
(2,896,426)
(44,504,824)
Direct contribution
19,139,422
11,017,737
2,777,238
8,688,405
2,716,433
44,339,235
Operating expenses and indirect costs of net revenues
(12,454,315)
Income from operations
31,884,920
Other income (expenses):
Interest income and other financial gains
2,982,303
Interest expense and other financial results
(474,300)
Foreign currency gains
749,008
Other losses, net
(7,009)
Net income before income / asset tax expense
$35,134,922
Three Months Ended June 30, 2011
Brazil Argentina Mexico Venezuela Other Countries Total
Net revenues
$ 39,932,132
$ 12,391,873
$5,370,095
$ 7,234,940
$ 4,449,120
$69,378,160
Direct costs
(23,926,947)
(5,153,807)
(2,982,020)
(2,847,197)
(2,493,570)
(37,403,541)
Direct contribution
16,005,185
7,238,066
2,388,075
4,387,743
1,955,550
31,974,619
Operating expenses and indirect costs of net revenues
(10,423,222)
Income from operations
21,551,397
Other income (expenses):
Interest income and other financial gains
2,249,898
Interest expense and other financial results
(880,819)
Foreign currency loss
(702,714)
Other income, net
240,097
Net income before income / asset tax expense
$22,457,859
Six Months Ended June 30, 2012
Brazil Argentina Mexico Venezuela Other Countries Total
Net revenues
$86,370,511
$ 38,677,682
$12,630,678
$ 23,658,890
$ 11,242,304
$ 172,580,065
Direct costs
(50,809,649)
(17,666,411)
(6,916,211)
(8,576,248)
(5,712,094)
(89,680,613)
Direct contribution
35,560,862
21,011,271
5,714,467
15,082,642
5,530,210
82,899,452
Operating expenses and indirect costs of net revenues
(26,083,786)
Income from operations
56,815,666
Other income (expenses):
Interest income and other financial gains
6,070,862
Interest expense and other financial results
(551,617)
Foreign currency loss
(283,969)
Other loss, net
(11,263)
Net income before income / asset tax expense
$ 62,039,679
Six Months Ended June 30, 2011
Brazil Argentina Mexico Venezuela Other Countries Total
Net revenues
$74,655,327
$ 22,971,805
$10,604,428
$ 14,005,393
$ 8,600,875
$ 130,837,828
Direct costs
(44,002,555)
(9,580,905)
(5,698,379)
(5,916,936)
(4,593,885)
$ (69,792,660)
Direct contribution
30,652,772
13,390,900
4,906,049
8,088,457
4,006,990
61,045,168
Operating expenses and indirect costs of net revenues
(20,202,618)
Income from operations
40,842,550
Other income (expenses):
Interest income and other financial gains
4,123,668
Interest expense and other financial results
(1,509,769)
Foreign currency loss
(1,203,369)
Other income, net
260,441
Net income before income / asset tax expense
42,513,521.35
CONTACT: MercadoLibre, Inc.
Investor Relations
investor@mercadolibre.com
http://investor.mercadolibre.com
