PHOENIX, Dec. 21,
2022 /PRNewswire/ -- Renren Inc. (NYSE: RENN)
("Renren" or the "Company"), which operates two US-based SaaS
businesses, Chime Technologies Inc.© and Trucker Path Inc.©, today
reports its unaudited financial results for the nine months ended
September 30, 2022 for informational
purposes only.
On November 3, 2022, the Company
declared a special cash distribution in connection with the
settlement contemplated by the Stipulation of Settlement, dated as
of October 7, 2021 and as amended on
May 27, 2022. The trading price for
Renren's American Depositary Shares ("ADSs") on and around the
ex-dividend date for the special cash distribution (i.e.
December 22, 2022) is expected to be
much lower than the closing price on the last trading date before
the ex-dividend date, to reflect the amount of the special cash
distribution. To the extent that Renren's ADSs trade below
US$1.00 per ADS for an extended
period of time, or at a price viewed to be an abnormally low
selling price under NYSE rules, Renren's ADSs may be suspended from
trading on the NYSE and ultimately delisted. To assist in
stabilizing the ADS trading price and address this risk, Renren's
board of directors has authorized a share repurchase program under
which the Company may repurchase up to US$10
million of its shares (including those represented by ADSs),
effective for up to one year following commencement of the
repurchase program. The Company's proposed repurchases may be made
on the open market at prevailing market prices from time to time as
market conditions warrant in accordance with the applicable
requirements of Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of
1934, as amended. The Company is considering repurchasing Renren's
ADSs in accordance with its repurchase program.
Following the announcement of the Company's unaudited financial
results for the six months ended June 30,
2022, which was included as Exhibit 99.1 to the Form 6-K
furnished to the U.S. Securities and Exchange Commission on
November 10, 2022, the Company made
write-downs to investments in Infinities Technology (Cayman)
Holding Limited ("Infinities"), and convertible preferred shares of
Kaixin Auto Holdings, of US$40
million and US$1.45 million,
respectively.
Conference Call Information
The Company will not host a conference call regarding its
unaudited financial results for the nine months ended September 30, 2022. Please contact our Investor
Relations Department if you have any questions.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates several US-based SaaS
businesses including Chime, Inc. and Trucker Path. Renren's
American depositary shares, each of which currently represents
forty-five Class A ordinary shares, trade on NYSE under the symbol
"RENN".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under 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. Renren may also
make written or oral forward-looking statements in its filings with
the U.S. Securities and Exchange Commission ("SEC"), 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 Renren'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: Renren's
goals and strategies; Renren's future business development,
financial condition and results of operations; Renren's
expectations regarding demand for and market acceptance of its
services; Renren's plans to enhance user experience, infrastructure
and service offerings. Further information regarding these and
other risks is included in our annual report on Form 20-F and other
documents filed with the SEC. All information provided in this
press release and in the attachments is as of the date of this
press release, and Renren does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
About Non-GAAP Financial Measures
To supplement Renren's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Renren uses "adjusted loss from operations"
and "adjusted net income (loss) from continuing operations" which
are defined as non-GAAP financial measures by the SEC, in
evaluating its business. Renren defines adjusted loss from
operations as loss from operations excluding share-based
compensation expenses, depreciation of property and equipment and
gain on debt extinguishment and adjusted net income (loss) from
continuing operations as net income (loss) from continuing
operations excluding share-based compensation expenses,
depreciation of property and equipment, fair value change of
contingent consideration, gain on debt extinguishment, fair value
change of long-term investment, pick up of loss from Kaixin
goodwill impairment, pick up of loss from the equity method
investment in Kaixin and impairment of long-term investments.
Renren continuously and periodically reviews its operating results
and business performance. Starting from the first quarter of 2018,
there was a significant impact on net (loss) income due to the
material and significant noncash amount of fair value change of
contingent consideration relating to the used auto dealerships of
the emerging used auto business. The contingent consideration was
settled during 2021 and has no significant impact to the Company
thereafter. Kaixin completed the reverse acquisition with Haitaoche
on June 25, 2021, which created
significant goodwill on Kaixin's financial statements, and a
significant portion of such goodwill was impaired as of
June 30, 2021. Subsequent to
completion of the reverse acquisition, Renren started to account
for its retained non-controlling investment in Kaixin under the
equity method of accounting through June 30,
2022. As of June 30, 2022, the
Company changed the method of accounting of the Kaixin investment
from equity method to equity investment with readily available fair
value. Due to the nature of the business, Renren believes that in
disclosing adjusted net income (loss) from continuing operations by
excluding the impact of fair value changes of contingent
consideration and long-term investment, gain on debt
extinguishment, pick-up of loss from the equity method investment
in Kaixin, pick-up of loss derived from Kaixin's goodwill
impairment, impairment of long term investments, and also expenses
for share-based compensation, and depreciation of property and
equipment, Renren provides investors with useful information to
understand Renren's business performance. To facilitate investors'
and analysts' comparative analysis, the aforesaid impact is
presented retrospectively in "Reconciliation of non-GAAP results of
operations measures to the comparable GAAP financial measures".
Renren presents adjusted loss from operations and adjusted net
income (loss) from continuing operations because they are used by
Renren's management to evaluate its operating performance. Renren
also believes that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
Renren's consolidated results of operations in the same manner as
Renren's management and in comparing financial results across
accounting periods and to those of Renren's peer companies.
These non-GAAP financial measures are not intended to be
considered in isolation from, or as a substitute for, the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the table captioned "Reconciliation of non-GAAP results of
operations measures to the comparable GAAP financial measures" at
the end of this release.
RENREN
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of US
dollars)
|
|
|
|
As of
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
|
2021
|
|
|
2022
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
65,247
|
|
|
$
|
55,254
|
|
Accounts receivable,
net
|
|
|
1,618
|
|
|
|
2,286
|
|
Prepaid expenses and
other current assets
|
|
|
6,272
|
|
|
|
3,503
|
|
Amounts due from
related parties
|
|
|
762
|
|
|
|
685
|
|
Inventory
|
|
|
358
|
|
|
|
10
|
|
Total current
assets
|
|
|
74,257
|
|
|
|
61,738
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
216
|
|
|
|
5,101
|
|
Intangible assets,
net
|
|
|
325
|
|
|
|
3,612
|
|
Goodwill
|
|
|
124
|
|
|
|
260
|
|
Long-term
investments
|
|
|
94,195
|
|
|
|
45,692
|
|
Right-of-use lease
assets
|
|
|
888
|
|
|
|
526
|
|
Other non-current
assets
|
|
|
170
|
|
|
|
104
|
|
Total non-current
assets
|
|
|
95,918
|
|
|
|
55,295
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
170,175
|
|
|
$
|
117,033
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,652
|
|
|
$
|
2,298
|
|
Short-term
debt
|
|
|
1,585
|
|
|
|
-
|
|
Accrued expenses and
other current liabilities
|
|
|
12,054
|
|
|
|
13,100
|
|
Short-term operating
lease liabilities
|
|
|
706
|
|
|
|
431
|
|
Amounts due to related
parties
|
|
|
714
|
|
|
|
642
|
|
Deferred revenue and
advance from customers
|
|
|
2,622
|
|
|
|
3,890
|
|
Income tax
payable
|
|
|
13,767
|
|
|
|
12,331
|
|
Total current
liabilities
|
|
|
33,100
|
|
|
|
32,692
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
Long-term operating
lease liabilities
|
|
|
63
|
|
|
|
-
|
|
Total non-current
liabilities
|
|
|
63
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
$
|
33,163
|
|
|
$
|
32,692
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
|
816
|
|
|
|
833
|
|
Class B ordinary
shares
|
|
|
305
|
|
|
|
305
|
|
Additional paid-in
capital
|
|
|
772,207
|
|
|
|
775,540
|
|
Statutory
reserves
|
|
|
6,712
|
|
|
|
6,712
|
|
Accumulated
deficit
|
|
|
(620,391)
|
|
|
|
(677,198)
|
|
Accumulated other
comprehensive loss
|
|
|
(10,012)
|
|
|
|
(8,209)
|
|
Total Renren Inc.
shareholders' equity
|
|
|
149,637
|
|
|
|
97,983
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
(12,625)
|
|
|
|
(13,642)
|
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
137,012
|
|
|
|
84,341
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
170,175
|
|
|
$
|
117,033
|
|
RENREN
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of US
dollars, except share data, per share data, ADS data, and per ADS
data)
|
|
|
|
For the nine months
ended
|
|
|
September
30,
|
|
|
2021
|
|
|
2022
|
(Unaudited)
|
(Unaudited)
|
Net
revenues
|
|
$
|
23,735
|
|
|
$
|
33,304
|
Cost of
revenues
|
|
|
(4,013)
|
|
|
|
(7,653)
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
19,722
|
|
|
|
25,651
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
(10,287)
|
|
|
|
(14,456)
|
Research and
development
|
|
|
(7,613)
|
|
|
|
(11,964)
|
General and
administrative
|
|
|
(13,131)
|
|
|
|
(10,663)
|
Total operating
expenses
|
|
|
(31,031)
|
|
|
|
(37,083)
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(11,309)
|
|
|
|
(11,432)
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
528
|
|
|
|
1,412
|
Net increase of fair
value on investment in Kaixin
|
|
|
-
|
|
|
|
5,172
|
Fair value change of
contingent consideration
|
|
|
513
|
|
|
|
-
|
Impairment of long-term
investments
|
|
|
-
|
|
|
|
(41,452)
|
Provision of restricted
cash
|
|
|
-
|
|
|
|
(38)
|
Interest
income
|
|
|
216
|
|
|
|
254
|
Interest
expenses
|
|
|
(51)
|
|
|
|
(24)
|
Total other
income, net
|
|
|
1,206
|
|
|
|
(34,676)
|
|
|
|
|
|
|
|
|
Loss before
provision of income tax and loss in equity
method investments
|
|
|
(10,103)
|
|
|
|
(46,108)
|
Income tax
expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Loss before loss in
equity method investments and
noncontrolling interest
|
|
|
(10,103)
|
|
|
|
(46,108)
|
Loss in equity method
investments, net of tax
|
|
|
(44,099)
|
|
|
|
(11,595)
|
Loss from continuing
operations
|
|
|
(54,202)
|
|
|
|
(57,703)
|
|
|
|
|
|
|
|
|
Discontinued
operation:
|
|
|
|
|
|
|
|
Loss from operations of
discontinued operation net of income
tax
|
|
|
(10,896)
|
|
|
|
-
|
Gain on deconsolidation
of the discontinued operation, net of
income tax
|
|
|
123,667
|
|
|
|
-
|
Income from
discontinued operation, net of tax
|
|
|
112,771
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
58,569
|
|
|
|
(57,703)
|
Net loss attributable
to noncontrolling interests
|
|
|
3,606
|
|
|
|
896
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to Renren Inc.
|
|
|
(54,271)
|
|
|
|
(56,807)
|
Net income from
discontinued operations attributable to
Renren Inc.
|
|
|
116,446
|
|
|
|
-
|
Net income (loss)
attributable to Renren Inc.
|
|
$
|
62,175
|
|
|
$
|
(56,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share from
continuing operations attributable to
Renren Inc. shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
(0.050)
|
|
|
|
(0.050)
|
|
|
|
|
|
|
|
|
Net income per share
from discontinued operations attributable
to Renren Inc. shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.107
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.057
|
|
|
|
(0.050)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Renren Inc. shareholders per
ADS*:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
2.560
|
|
|
|
(2.257)
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in calculating net
(loss) income per ordinary share attributable to Renren Inc.
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
1,092,964,979
|
|
|
|
1,132,545,455
|
|
|
|
|
|
|
|
|
* Each ADS represents
45 Class A ordinary shares.
|
|
|
|
|
|
|
|
Unaudited
Reconciliation of Non-GAAP and GAAP Financial
Measures
|
(In thousands of US
dollars)
|
|
|
|
For the nine months
ended
|
|
|
September
30,
|
|
|
2021
|
|
2022
|
Loss from
operations
|
|
$
|
(11,309)
|
|
$
|
(11,432)
|
Add back: Share-based
compensation expenses
|
|
|
6,373
|
|
|
3,159
|
Add back: Depreciation
of property and equipment
|
|
|
70
|
|
|
164
|
Less: Gain on debt
extinguishment
|
|
|
-
|
|
|
(1,357)
|
Adjusted loss from
operations
|
|
$
|
(4,866)
|
|
$
|
(9,466)
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(54,202)
|
|
$
|
(57,703)
|
Add back: Pick up of
loss from the equity method investment in
Kaixin[1]
|
|
|
513
|
|
|
11,986
|
Add back: Pick up of
loss from Kaixin Goodwill impairment[1]
|
|
|
47,837
|
|
|
-
|
Less: Fair value
increase of long-term investment Kaixin[2]
|
|
|
-
|
|
|
(5,172)
|
Add back: Impairment of
long-term investments[3]
|
|
|
-
|
|
|
41,452
|
Less: Fair value change
of Kaixin contingent consideration
|
|
|
(513)
|
|
|
-
|
Add back: Share-based
compensation expenses
|
|
|
6,373
|
|
|
3,159
|
Add back: Depreciation
of property and equipment
|
|
|
70
|
|
|
164
|
Less: Gain on debt
extinguishment
|
|
|
-
|
|
|
(1,357)
|
Adjusted net income
(loss) from continuing operations
|
|
$
|
78
|
|
$
|
(7,471)
|
|
|
|
|
|
|
|
|
[1] Adjustment of net loss from
equity method investment in Kaixin Auto Holdings, in
which the Company retained a non-controlling interest
after deconsolidating it on June 25, 2021. During the
period from June 25, 2021 to June 30, 2021, the loss picked up
from Kaixin raised from Kaixin's Goodwill
impairment, and after June 30, 2021 through September 30, 2021,
loss picked up from Kaixin raised
from Kaixin's net loss mainly from operation, which are
excluded from the net loss from continuing operations to get to the
non-GAAP adjusted net income (loss) from continuing operations. The
pick up of loss for the nine months ended September 30, 2022
relates to loss picked up prior to the change from equity method to
fair value accounting effective on June 30, 2022.
|
[2] Adjustment of unrealized gain as
a fair value increase to the long-term investment
in Kaixin.
|
[3] Adjustment of impairment
$40 million in the Infinities investment as a result of adverse
change in the government regulatory, economic and technological
environment, the continuing worsened general market condition of
both the geographic area and the industry in which
the investees operate, and negative financial trends
within the investee. An additional $1.45 million impairment
was recorded as a reduction in the fair value of the investment in
preferred shares of Kaixin Auto
Holdings.
|
View original
content:https://www.prnewswire.com/news-releases/renren-reports-unaudited-financial-results-for-the-nine-months-ended-september-30-2022-301708567.html
SOURCE Renren Inc.