BEST Inc (BEST) Reports Q3 EPS of $0.007

BEST Inc (NYSE: BEST) reported Q3 EPS of $0.01, versus $0.00 reported last year. Revenue for the quarter came in at $1.22 million versus the consensus estimate of $1.29 million.

"BEST's third quarter results were highlighted by strong revenue growth and significant net loss reduction which saw us achieve positive non-GAAP net income for a second consecutive quarter and we remain on track to achieve our goal of achieving positive non-GAAP net income for the full year 2019," said Johnny Chou, Chairman and Chief Executive Officer of BEST. "Despite challenging market conditions, e-commerce grew at a healthy pace which contributed to accelerating demand for BEST's supply chain solutions and logistics services. BEST Express and Freight continued to gain market share and lower costs, while Supply Chain Management and Store+ optimized their operations and improved profitability. Our "Others" segments of UCargo, Global and Capital continued to expand and deliver strong growth as we capitalized on the significant opportunities in truckload services brokerage and geographic expansion in Southeast Asia. BEST is very well positioned to maintain our strong momentum as we enter into the fourth quarter, which is a peak season for our businesses, and as we execute our strategy of above-market growth and increased profitability."

"BEST delivered an excellent third quarter with strong revenue growth and margin improvement despite a competitive industry environment and the traditionally slow season for our businesses," said Jenny Pan, BEST's principal accounting officer. "We recorded solid revenue growth of 22% year-over-year on revenue of RMB8.7 billion. We also achieved positive non-GAAP net income for the first time during a third quarter period, with non-GAAP net income of RMB16.7 million compared to non-GAAP net loss of RMB101 million for the same period of last year. Gross profit margin increased by 0.4 percentage points year-over-year to 5.8%. EBITDA increased by 71% to RMB93 million while adjusted EBITDA increased to RMB114 million from RMB1.3 million for the same period of last year. Our company also generated positive operating cashflow of RMB237 million compared to RMB86 million for the same period of last year. In mid-September, we successfully completed a US$200 million convertible notes offering. As of September 30, 2019, our cash and cash equivalents, restricted cash and short-term investments were RMB4.8 billion which allows us to invest for the future and create long-term value for our shareholders."

FINANCIAL HIGHLIGHTS

For the Quarter Ended September 30, 2019:

• Revenue was RMB8,745.3 million (US$1,223.5 million), an increase of 21.6% year-over-year ("YoY"). Revenue ex-Store+ was RMB7,883.3 million (US$1,102.9 million), an increase of 25.1% YoY.- Express Service Revenue increased 19.4% YoY to RMB5,202.2 million (US$727.8 million). - Freight Service Revenue increased 25.8% YoY to RMB1,375.4 million (US$192.4 million). - Supply Chain Management Service Revenue decreased 8.3% YoY to RMB450.9 million (US$63.1 million). - Store+ Service Revenue decreased 2.7% YoY to RMB862.0 million (US$120.6 million). - Others [1] Service Revenue increased 136.6% YoY to RMB854.9 million (US$119.6 million).
• Gross Profit was RMB507.1 million (US$70.9 million), an increase of 30.0% YoY; and Gross Profit Margin was 5.8%, an increase of 0.4 percentage points YoY. Gross Profit ex-Store+ was RMB416.2 million (US$58.2 million), an increase of 30.6% YoY; and Gross Profit Margin ex-Store+ was 5.3%, an increase of 0.2 percentage points YoY.
• Net Loss was RMB6.7 million (US$0.9 million), an improvement of 86.9% YoY; and Non-GAAP Net Income [2] [3] was RMB16.7 million (US$2.3 million), compared to Non-GAAP Net Loss of RMB101.4 million in the same period of 2018. Net Income ex-Store+ was RMB93.2 million (US$13.0 million); and Non-GAAP Net Income ex-Store+ [2] [3] was RMB113.5 million (US$15.9 million).
• Diluted EPS [4] was negative RMB0.01 (US$0.001), compared to negative RMB0.13 in the same period of 2018; and Non-GAAP diluted EPS [3] [5] was RMB0.05 (US$0.007), compared to negative RMB0.26 in the same period of 2018.
• EBITDA [3] [6] was RMB93.4 million (US$13.1 million), compared to RMB54.7 million in the same period of 2018; and Adjusted EBITDA [3] [6] was RMB114.3 million (US$16.0 million), compared to RMB1.3 million in the same period of 2018. EBITDA [3] [6] ex-Store+ was RMB190.1 million (US$26.6 million); and Adjusted EBITDA [3] [6] ex-Store+ was RMB209.5 million (US$29.3 million).
• Net Cash Generated from Operating Activities was RMB237.3 million (US$33.2 million), compared to RMB86.3 million in the same period of 2018.

FINANCIAL GUIDANCE

Based on current market conditions and current operations, and after taking into account the lower average selling price per parcel for Express and the lower revenue growth for Store+, we adjusted our full fiscal year 2019 revenue guidance to be in the range of RMB34.9 to RMB35.1 billion. This represents management's current and preliminary expectation, which is subject to change.

For earnings history and earnings-related data on BEST Inc (BEST) click here.

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