EXHIBIT 99.1
* 27.5 million Sold Items, up 26%, 14.8 million Total Payment Transactions, up 62%
* Net Revenues of $148.1 million, growing 28% in USD, 100% in local currencies
* Net Income was $1.7 million resulting in a $0.04 EPS. Excluding one-time effects of Venezuelan devaluation, Net Income would have been $34.6 million resulting in a $0.78 EPS.
BUENOS AIRES, Argentina, May 6, 2015 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com), Latin America's leading e-commerce technology company, today reported first quarter financial results for the period ended March 31, 2015.
Pedro Arnt, Chief Financial Officer of MercadoLibre, Inc., commented, "The first quarter confirms the sustained momentum of our business, and points a clear direction for our company for the remainder of 2015: replicating the success we are seeing in the roll-out of our enhanced marketplace services in the areas of payments, financing, shipping and branded merchant offerings throughout all our geographies. We are confident that if we are successful in executing on this strategy we will be in great shape for the future."
First Quarter 2015 Operational Highlights
Enhanced marketplace roll-out translating into improved operating and financial results:
First Quarter 2015 Financial Highlights
(*) See note on "Non-GAAP Financial Measures"
The following table summarizes certain key performance metrics for the three months ended March 31, 2015 and 2014.
| Three months ended March 31, (in MM) | 2015 | 2014 | %YoY | %YoY Constant USD |
| Total confirmed registered users at the end of period | 126.7 | 103.7 | 22.1% | -- |
| New confirmed registered users during the period | 5.7 | 4.3 | 34.4% | -- |
| Gross merchandise volume | $ 1,649.1 | $ 1,797.3 | -8.2% | 77.5% |
| Items sold | 27.5 | 21.7 | 26.4% | -- |
| Total payments volume | $ 1,037.3 | $ 664.0 | 56.2% | 102.2% |
| Total payments transactions | 14.8 | 9.2 | 61.6% | -- |
| The table above may not total due to rounding. |
Table of Year-on-Year Local Currency Revenue Growth Rates by Quarter
| YoY Growth rates at previous years exchange rates | |||||||||
| Consolidated Net Revenues | |||||||||
| Q1'14 | Q2'14 | Q3'14 | Q4'14 | Q1'15 | |||||
| Brazil | 30% | 34% | 49% | 61% | 58% | ||||
| Argentina | 65% | 76% | 84% | 98% | 94% | ||||
| Mexico | 9% | 25% | 23% | 21% | 32% | ||||
| Venezuela | 116% | 167% | 220% | 253% | 284% | ||||
| Others | 32% | 53% | 59% | 61% | 33% | ||||
| Total | 50% | 66% | 89% | 109% | 100% | ||||
Conference Call and Webcast
The Company will host a conference call and audio webcast on May 6, 2015 at 4:30 p.m. Eastern Time. The conference call may be accessed by dialing +(970) 315-0420 or +(877) 303-7209 (Conference ID 37102042) 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 platform (including MercadoPago) and confirmed their registration. Since July '12, registration and confirmation take place in the same step of the registration flow.
New confirmed registered users – Measure of the number of new users who have registered on the MercadoLibre platform (including MercadoPago) and confirmed their registration. Since July'12, registration and confirmation take place in the same step of the registration flow.
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 completed 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 assets 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, intangible assets and payment for acquired business net of cash 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.
Excluding Venezuela – Given the current currency distortions and hyperinflation present in Venezuela, the Company's growth data disclosed above excludes the impact of the results of operations from its Venezuelan subsidiaries. The disclosure of this data enables investors to evaluate the company's operating performance from period to period without the distortions caused by Venezuela's hyperinflation and foreign exchange policies.
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 the major countries in which it operates according to metrics provided by comScore Networks. 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 | ||
| March 31, | December 31, | |
| 2015 | 2014 | |
| (In thousands of dollars, except par value) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 219,768 | $ 223,144 |
| Short-term investments | 148,052 | 148,810 |
| Accounts receivable, net | 54,054 | 46,672 |
| Credit cards receivables, net | 133,644 | 85,162 |
| Prepaid expenses | 6,433 | 3,458 |
| Deferred tax assets | 11,222 | 11,520 |
| Other assets | 15,002 | 13,984 |
| Total current assets | 588,175 | 532,750 |
| Non-current assets: | ||
| Long-term investments | 190,152 | 205,265 |
| Property and equipment, net | 75,945 | 91,545 |
| Goodwill | 65,577 | 68,829 |
| Intangible assets, net | 22,801 | 23,171 |
| Deferred tax assets | 13,817 | 21,554 |
| Other assets | 20,316 | 23,734 |
| Total non-current assets | 388,608 | 434,098 |
| Total assets | $ 976,783 | $ 966,848 |
| Liabilities and Equity | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $ 58,160 | $ 58,006 |
| Funds payable to customers | 193,188 | 165,034 |
| Salaries and social security payable | 36,212 | 28,777 |
| Taxes payable | 23,733 | 26,013 |
| Loans payable and other financial liabilities | 1,565 | 1,642 |
| Deferred tax liabilities | 1,673 | 1,645 |
| Other liabilities | 4,081 | 4,176 |
| Dividends payable | 4,548 | 7,330 |
| Total current liabilities | 323,160 | 292,623 |
| Non-current liabilities: | ||
| Salaries and social security payable | 12,193 | 11,326 |
| Loans payable and other financial liabilities | 286,180 | 282,184 |
| Deferred tax liabilities | 18,774 | 18,746 |
| Other liabilities | 5,358 | 6,181 |
| Total non-current liabilities | 322,505 | 318,437 |
| Total liabilities | $ 645,665 | $ 611,060 |
| Commitments and contingencies | ||
| Equity: | ||
| Common stock, $0.001 par value, 110,000,000 shares authorized, 44,154,932 and 44,154,572 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | $ 44 | $ 44 |
| Additional paid-in capital | 137,692 | 137,645 |
| Retained earnings | 350,346 | 353,173 |
| Accumulated other comprehensive loss | (156,964) | (135,074) |
| Total Equity | 331,118 | 355,788 |
| Total Liabilities and Equity | $ 976,783 | $ 966,848 |
| Consolidated statements of income | ||
| Three Months Ended March 31, | ||
| 2015 | 2014 | |
| (In thousands) | ||
| Net revenues | $ 148,103 | $ 115,382 |
| Cost of net revenues | (44,708) | (31,540) |
| Gross profit | 103,395 | 83,842 |
| Operating expenses: | ||
| Product and technology development | (17,245) | (12,257) |
| Sales and marketing | (26,202) | (22,352) |
| General and administrative | (18,134) | (15,232) |
| Impairment of Long-Lived Assets | (16,226) | — |
| Total operating expenses | (77,807) | (49,841) |
| Income from operations | 25,588 | 34,001 |
| Other income (expenses): | ||
| Interest income and other financial gains | 4,308 | 3,036 |
| Interest expense and other financial losses | (4,950) | (1,027) |
| Foreign currency (losses) gains | (8,570) | 3,093 |
| Net income before income / asset tax expense | 16,376 | 39,103 |
| Income / asset tax expense | (14,655) | (8,775) |
| Net income | $ 1,721 | $ 30,328 |
| Less: Net Income attributable to Redeemable | ||
| Noncontrolling Interest | — | 64 |
| Net income attributable to MercadoLibre, Inc. shareholders | $ 1,721 | $ 30,264 |
| Three Months Ended March 31, | ||
| 2015 | 2014 | |
| Basic EPS | ||
| Basic net income attributable to MercadoLibre, Inc. | ||
| Shareholders per common share | $ 0.04 | $ 0.69 |
| Weighted average of outstanding common shares | 44,154,796 | 44,153,818 |
| Diluted EPS | ||
| Diluted net income attributable to MercadoLibre, Inc. | ||
| Shareholders per common share | $ 0.04 | $ 0.69 |
| Weighted average of outstanding common shares | 44,154,796 | 44,153,818 |
| Cash Dividends declared | 0.103 | 0.166 |
| Consolidated statements of cash flows | ||
| Three Months Ended March 31, | ||
| 2015 | 2014 | |
| (In thousands) | ||
| Cash flows from operations: | ||
| Net income attributable to MercadoLibre, Inc. Shareholders | $ 1,721 | $ 30,264 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Net income attributable to Redeemable Noncontrolling Interest | — | 64 |
| Devaluation Loss (Gain), net | 10,862 | (2,658) |
| Impairment of Long-Lived Assets | 16,226 | — |
| Depreciation and amortization | 5,081 | 3,519 |
| Accrued interest | (2,780) | (2,019) |
| Convertible bonds accrued interest and amortization of debt discount | 3,984 | — |
| Long Term Retention Program accrued compensation | 3,327 | 766 |
| Deferred income taxes | 6,118 | (4,675) |
| Changes in assets and liabilities: | ||
| Accounts receivable | (27,923) | (9,410) |
| Credit Card Receivables | (54,763) | (9,871) |
| Prepaid expenses | (3,451) | (962) |
| Other assets | (2,306) | 925 |
| Accounts payable and accrued expenses | 30,395 | 11,755 |
| Funds payable to customers | 48,683 | 7,366 |
| Other liabilities | 181 | 318 |
| Interest received from investments | 2,824 | 2,246 |
| Net cash provided by operating activities | 38,179 | 27,628 |
| Cash flows from investing activities: | ||
| Purchase of investments | (420,070) | (386,755) |
| Proceeds from sale and maturity of investments | 431,636 | 379,720 |
| Purchases of intangible assets | (942) | (144) |
| Purchases of property and equipment | (7,315) | (6,966) |
| Net cash provided by (used in) investing activities | 3,309 | (14,145) |
| Cash flows from financing activities: | ||
| Payments on loans payable and other financial liabilities | (139) | (582) |
| Dividends paid | (7,330) | (6,314) |
| Net cash used in financing activities | (7,469) | (6,896) |
| Effect of exchange rate changes on cash and cash equivalents | (37,395) | (15,732) |
| Net decrease in cash and cash equivalents | (3,376) | (9,145) |
| Cash and cash equivalents, beginning of the period | 223,144 | 140,285 |
| Cash and cash equivalents, end of the period | $ 219,768 | $ 131,140 |
| Financial results of reporting segments | ||||||
| Three Months Ended March 31, 2015 | ||||||
| (In thousands) | ||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | |
| Net revenues | $ 68,498 | $ 47,431 | $ 9,437 | $ 13,955 | $ 8,782 | $ 148,103 |
| Direct costs | (39,681) | (24,785) | (5,969) | (4,204) | (5,172) | (79,811) |
| Impairment of Long-lived Assets | — | — | — | (16,226) | — | (16,226) |
| Direct contribution | 28,817 | 22,646 | 3,468 | (6,475) | 3,610 | 52,066 |
| Operating expenses and indirect costs of net revenues | (26,478) | |||||
| Income from operations | 25,588 | |||||
| Other income (expenses): | ||||||
| Interest income and other financial gains | 4,308 | |||||
| Interest expense and other financial losses | (4,950) | |||||
| Foreign currency losses | (8,570) | |||||
| Net income before income / asset tax expense | $ 16,376 | |||||
| Three Months Ended March 31, 2014 | |||||||||||
| (In thousands) | |||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||
| Net revenues | $ 52,434 | $ 27,962 | $ 8,083 | $ 19,357 | $ 7,546 | $ 115,382 | |||||
| Direct costs | (30,517) | (16,916) | (4,578) | (5,635) | (3,914) | (61,560) | |||||
| Direct contribution | 21,917 | 11,046 | 3,505 | 13,722 | 3,632 | 53,822 | |||||
| Operating expenses and indirect costs of net revenues | (19,821) | ||||||||||
| Income from operations | 34,001 | ||||||||||
| Other income (expenses): | |||||||||||
| Interest income and other financial gains | 3,036 | ||||||||||
| Interest expense and other financial losses | (1,027) | ||||||||||
| Foreign currency gains | 3,093 | ||||||||||
| Net income before income / asset tax expense | $ 39,103 | ||||||||||
Non-GAAP Financial Measures
To supplement our interim condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (U.S. GAAP), we use free cash flows, adjusted net income before income / asset tax, adjusted income / asset tax, adjusted net income, adjusted blended tax rate and adjusted earnings per share as non-GAAP measures.
These non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. These non-GAAP financial measures should only be used to evaluate our results of operations in conjunction with the most comparable GAAP financial measures.
Reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures can be found in the tables included in this press release.
Non-GAAP financial measures are provided to enhance investors' overall understanding of our current financial performance. Specifically, we believe that free cash flow provides useful information to both management and investors by excluding payments for the acquisition of property, equipment, of intangible assets and of acquired businesses net of cash acquired, that may not be indicative of our core operating results. In addition, we report free cash flows to investors because we believe that the inclusion of this measure provides consistency in our financial reporting.
Free cash flow represents cash from operating activities less payment for the acquisition of property, equipment and intangible assets and acquired businesses net of cash acquired. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our operations after the purchase of property, equipment, of intangible assets and of acquired businesses net of cash acquired. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in our cash balance for the period.
Reconciliation of Operating Cash Flows to Free Cash Flows:
| Three Months Ended March 31, | ||
| 2015 | 2014 | |
| Net Cash provided by Operating Activities | $ 38.2 | $ 27.6 |
| Purchase of intangible assets | (0.9) | (0.1) |
| Purchases of property and equipment | (7.3) | (7.0) |
| Free cash flows | $ 29.9 | $ 20.5 |
| The table above may not total due to rounding. | ||
Moreover, the company believes that adjusted net income before income / asset tax, adjusted income / asset tax, adjusted net income, adjusted blended tax rate and adjusted earnings per share provide useful information to both management and investors by excluding the foreign exchange loss attributable to the devaluation in Venezuela, and the impairment of long-lived assets, because it may not be indicative of the ordinary course of the business. In addition, the company reports adjusted net income before income / asset tax, adjusted income / asset tax, adjusted net income, adjusted blended tax rate and adjusted earnings per share to investors because the inclusion of these measures provides consistency in the Company's financial reporting and because these financial measures provide useful information to management and investors about what adjusted net income before income / asset tax, adjusted income / asset tax, adjusted net income, adjusted blended tax rate and adjusted earnings per share, would have been, had the foreign exchange loss and impairment of long-lived assets in Venezuela not occurred.A limitation of the utility of adjusted net income before income / asset tax, adjusted income / asset tax, adjusted net income, adjusted blended tax rate and adjusted earnings per share, as measures of financial performance, is that these measures do not represent the total foreign exchange effect in the Income Statement for the three-month period ended March 31, 2015.
Reconciliation of these non-gaap financial measures:
| Three-months periods ended (**) | ||||||
| March 31, 2015 | March 31, 2014 | |||||
| Net income before income / asset tax expense | $ 16.4 | $ 39.1 | ||||
| Devaluation loss in Venezuela | 20.4 | 1.3 | ||||
| Impairment of long-lived assets in Venezuela | 16.2 | — | ||||
| Adjusted Net income before income / asset tax expense | $ 53.0 | $ 40.4 | ||||
| Income and asset tax expense | $ (14.7) | $ (8.8) | ||||
| Income tax effect on devaluation loss in Venezuela | (3.8) | (1) | (3.9) | (1) | ||
| Adjusted Income and asset tax | $ (18.5) | $ (12.7) | ||||
| Net Income | $ 1.7 | $ 30.3 | ||||
| Devaluation loss in Venezuela | 20.4 | 1.3 | ||||
| Impairment of long-lived assets in Venezuela | 16.2 | — | ||||
| Income tax effect on devaluation loss in Venezuela | (3.8) | (1) | (3.9) | (1) | ||
| Adjusted Net Income | $ 34.6 | $ 27.7 | ||||
| Weighted average of outstanding common shares | 44,154,932 | 44,153,818 | ||||
| Adjusted Earnings per share | $ 0.78 | $ 0.63 | ||||
| Adjusted Blended Tax Rate (2) | 34.8% | 31.4% | ||||
| (**) Stated in millions of U.S. dollars. The table above may not total due to rounding. | ||||||
| (1) Income tax charge related to the Venezuela devaluation under local tax norms. | ||||||
| (2) Adjusted Income and asset tax over Adjusted Net income before income / asset tax expense. | ||||||
CONTACT: MercadoLibre, Inc.
Investor Relations
investor@mercadolibre.com
http://investor.mercadolibre.com