The Board Has Authorized a Share Repurchase Program
HANGZHOU, China, March 9, 2023 /PRNewswire/ — BEST Inc. (NYSE: BEST) (“BEST” or the “Company”), a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022. The Company also announced that its board of directors has authorized a share repurchase program, under which the Company may repurchase up to US$20 million worth of its outstanding American Depositary Shares over the next 12 months.
Johnny Chou, Founder, Chairman and CEO of BEST, commented, “2022 was a challenging year. The COVID-19 pandemic and its related controls seriously impacted general economy, and was particularly hard for the logistic industry. However, under such severe challenges, we prevailed. In the fourth quarter of 2022, both BEST Freight and BEST Supply Chain Management have significantly improved their gross margins and narrowed their losses. At the same time, BEST Global began to show promising operating trends.
After lifting of COVID pandemic-related controls, we have seen a rapid recovery in general economy and our multiple business lines. We are confident to deliver a strong growth and financial results in 2023. In addition, our Board has authorized an up-to-$20M share repurchase program.”
“During 2022, Best Freight focused heavily on digital transformation, cost reductions and quality improvement. As a result, our operating efficiency and service quality have significantly improved. In the fourth quarter, Freight’s gross margin grew by 10.4 percentage points and its net loss was narrowed by 69.3% year over year.”
“For BEST Supply Chain Management, its strong technical know-how and superb service capabilities helped us weather the storm. Despite COVID-related restrictions throughout the year, BEST Supply Chain Management went above and beyond to make sure we provided our customers with top quality service. As a result, we were rewarded with additional business. Supply Chain Management has added 64 new key account customers in the second half of 2022 and its distribution volume and revenue increased in the fourth quarter by 82.1% and 2.7%, respectively, and gross margin increased to 4.4%, from negative 1.9%, year over year.”
“For BEST Global, with the lifting of COVID-related controls, we quickly adjusted our strategy, and realigned our organization in response to the evolving Southeast Asia market. We greatly elevated our organization’s capabilities, widening our network coverage and significantly improved our service quality. We also expanded our coverage of small- and medium-sized enterprise customers and the revenue contribution from those customers grew by 13 percentage points to 40.2% in the fourth quarter of 2022, compared with the first quarter of 2022. In addition, we are accelerating our B2B2C and cross border business to provide additional product offerings. We believe this strategic direction will usher in Global’s fast recovery and prompt growth for a much improved gross margin and better cash flow in 2023.”
“We finished 2022 with a much more resilient, streamlined business infrastructure and improved operating efficiency. Our strengths in technology, domestic and global supply chain management as well as logistics services place us in a strong position to deliver a strong profitable growth in 2023 and beyond.” concluded Mr. Chou.
Gloria Fan, BEST’s Chief Financial Officer, added, “While our revenue for the fourth quarter was dampened by the COVID-19 pandemic, the cost control measures we enacted significantly narrowed our Group non-GAAP net loss by 52.4% year over year. We are actively managing our cash and our balance sheet remains healthy. At the end of 2022, we had cash, cash equivalents, restricted cash and short-term investments of RMB3.2 billion, after we used RMB1.4 billion during 2022 to repurchase our Convertible Senior Notes due 2024. Our overarching goal is to achieve ongoing sustainable and profitable growth. In 2023, we expect Freight and Supply Chain Management to become profitable in the second quarter and generate positive cash flow and profitable growth throughout the year, and BEST Global to see profitability in certain countries.”
FINANCIAL HIGHLIGHTS ([1])
For the Fourth Quarter Ended December 31, 2022:([2])
Revenue was RMB1,981.4 million (US$287.3 million), compared with RMB2,724.9 million in the fourth quarter of 2021. The decrease was primarily due to the wind-down of the BEST UCargo business line and lower Freight and Global volume. Revenue generated from UCargo was approximately RMB952,000 (US$0.1 million), compared with RMB350 million in the same quarter of 2021. Gross Loss was RMB58.5 million (US$8.5 million), compared with RMB228.4 million in the fourth quarter of 2021. The decrease in gross loss was primarily due to improved gross margin from BEST Freight and BEST Supply Chain business lines. Gross Loss Margin was 3.0% for the fourth quarter of 2022, compared with a Gross Loss Margin of 8.4% in the same period of 2021. Net Loss from continuing operations was RMB365.8 million (US$53.0 million), compared with RMB734.1 million in the fourth quarter of 2021. Non-GAAP Net Loss from continuing operations([3])([4]) was RMB338.0 million (US$49.0 million), compared with RMB710.4 million in the fourth quarter of 2021. Diluted loss per ADS([5]) from continuing operations was RMB4.49 (US$0.65), compared with RMB9.07 in the fourth quarter of 2021. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB4.13 (US$0.60), compared with RMB8.77 in the fourth quarter of 2021. EBITDA([6]) from continuing operations was negative RMB324.7 million (US$47.1million), compared with negative RMB658.9 million in the fourth quarter of 2021. Adjusted EBITDA(6) from continuing operations was negative RMB296.9 million (US$43.0 million), compared with negative RMB635.2 million in the fourth quarter of 2021.
For the Fiscal Year Ended December 31, 2022:
Revenue was RMB7,744.1 million (US$1,122.8 million), compared with RMB11,425.8 million in 2021. The decrease was primarily due to the wind-down of the BEST UCargo business line and lower Freight and Global volume. Revenue generated from UCargo was approximately RMB36.0 million (US$5.2 million), compared with RMB2,809.1 million in 2021. Gross Loss was RMB263.6 million (US$38.2 million), compared with RMB199.4 million in 2021. The increase in gross loss was primarily due to lower parcel volume from BEST Global business line. Gross Loss Margin was 3.4%, compared with a Gross Loss Margin of 1.7% in 2021. Net Loss from continuing operations was RMB1,464.8 million (US$212.4 million), compared with RMB1,263.9 million in 2021. Non-GAAP Net Loss from continuing operations([7])([8]) was RMB1,380.4 million (US$200.1 million), compared with RMB1,214.8 million in 2021. Diluted loss per ADS([9]) from continuing operations was RMB18.17 (US$2.63), compared with a loss of RMB15.61 in 2021. Non-GAAP diluted loss per ADS(3)(4) from continuing operations was RMB17.09 (US$2.48), compared with a loss of RMB14.98 in 2021. EBITDA([10]) from continuing operations was negative RMB1,266.2 million (US$183.6 million), compared with negative RMB976.2 million in 2021. Adjusted EBITDA(6) from continuing operations was negative RMB1,181.8 million (US$171.3 million), compared with negative RMB927.2 million in 2021.
BUSINESS HIGHLIGHTS([11])
BEST Freight – In the fourth quarter of 2022, Freight’s volume decreased by 7.6% year over year, and revenue decreased by 32.0% year over year to approximately RMB1.3 billion. The decrease in Freight revenue was primarily due to the wind-down of UCargo business unit. The Company remained focused on developing its e-commerce related business, which contributed 21.2% of total volume in the fourth quarter of 2022. Freight’s gross margin was negative 1.3%, representing a 10.4 percentage points improvement from the same period of 2021 as we continued to reduce operating expenses and improve efficiency. For the full year of 2022, Freight’s volume decreased by 6.1% year over year to 8.7 million tonnes.
BEST UCargo’s operations and financial results are now consolidated with BEST Freight.
BEST Supply Chain Management – In the fourth quarter of 2022, total revenue for Supply Chain Management increased by 2.7% to RMB500.6 million year over year, and gross margin improved by 6.3 percentage points to 4.4%, narrowing Supply Chain Management’s net loss by RMB60.4 million, or 81.3%. Its distribution volume increased by 82.1% in the fourth quarter, while the total number of orders fulfilled by Cloud OFCs decreased by 15.6% year over year. For the full year of 2022, the distribution volume increased by 53.6% year over year, while the total number of orders fulfilled by Cloud OFCs decreased by 16.6%. BEST Supply Chain Management’s gross margin for 2022 improved by 2.1 percentage points to 6.1%.
BEST Global – The market in Southeast Asia remained challenging in the fourth quarter of 2022. In the wake of relaxed COVID-19 pandemic control measures in the region, there was a shift in consumer consumption activities from online to offline, which negatively impacted the e-commerce logistics industry. As a result, Global’s parcel volume decreased by 41.8% year over year to 25.4 million in the fourth quarter of 2022. For the full year of 2022, Global’s parcel volume decreased by 19.1% year over year to 121.6 million.
Others
As part of its Strategic Refocusing Program, the Company substantially completed its wind down of the Capital business line in the fourth quarter of 2022.
Key Operational Metrics
Three Months Ended
% Change YOY
December 31,
2020
December 31,
2021
December 31,
2022
2021 vs
2020
2022 vs
2021
Freight Volume (Tonne in ‘000)
2,623
2,408
2,226
(8.2 %)
(7.6 %)
Global Parcel Volume in
Southeast Asia (in ‘000)
27,891
43,707
25,421
56.7 %
(41.8 %)
Fiscal Year Ended
% Change YoY
December 31,
2020
December 31,
2021
December 31,
2022
2021 vs
2020
2022 vs
2021
Freight Volume (Tonne in ‘000)
8,392
9,218
8,659
9.8 %
(6.1 %)
Global Parcel Volume in
Southeast Asia (in ‘000)
73,585
150,392
121,637
104.4 %
(19.1 %)
FINANCIAL RESULTS ([12])
For the Fourth Quarter Ended December 31, 2022:
Revenue
The following table sets forth a breakdown of revenue by business segment for the periods indicated.
Table 1 – Breakdown of Revenue by Business Segment
Three Months Ended
December 31, 2021
December 31, 2022
(In ‘000, except for %)
RMB
% of
Revenue
RMB
US$
% of
Revenue
% Change
YOY
Total Freight
1,854,018
68.1 %
1,261,196
182,856
63.7 %
-32.0 %
-Freight
1,503,995
55.3 %
1,260,244
182,718
63.6 %
-16.2 %
-Legacy UCargo
350,023
12.8 %
952
138
0.1 %
-99.7 %
Supply Chain
Management
487,337
17.9 %
500,602
72,580
25.3 %
2.7 %
Global
330,564
12.1 %
195,680
28,371
9.9 %
-40.8 %
Others([13])
52,935
1.9 %
23,917
3,468
1.1 %
-54.8 %
Total Revenue
2,724,854
100.0 %
1,981,395
287,275
100.0 %
-27.3 %
Freight Service Revenue was RMB1,261.2 million (US$182.9 million) for the fourth quarter of 2022, compared with RMB1,854.0 million in the same period last year, of which, RMB952,000 and RMB350.0 million were from the legacy UCargo business line, respectively. Freight service revenue, excluding the legacy UCargo business, decreased by 16.2% year over year, primarily due to lower volume and decrease in average selling price per tonne. Supply Chain Management Service Revenue increased by 2.7% year over year to RMB500.6 million (US$72.6 million) for the fourth quarter of 2022 from RMB487.3 million in the same period of 2021, primarily due to newly signed customers with high unit economics, and improved service capability. Global Service Revenue decreased by 40.8% year over year to RMB195.7 million (US$28.4 million) for the fourth quarter of 2022 from RMB330.6 million in the same period of 2021, primarily due to decreased parcel volume.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 2 – Breakdown of Cost of Revenue by Business Segment
Three Months Ended
% of Revenue
Change
YOY
December 31, 2021
December 31, 2022
(In ‘000, except for %)
RMB
% of
Revenue
RMB
US$
% of
Revenue
Freight
(2,070,840)
111.7 %
(1,277,026)
(185,151)
101.3 %
-10.4 %
Supply Chain
Management
(496,353)
101.9 %
(478,511)
(69,378)
95.6 %
-6.3 %
Global
(346,392)
104.8 %
(264,014)
(38,278)
134.9 %
30.1 %
Others
(39,679)
75.0 %
(20,321)
(2,946)
85.0 %
10.0 %
Total Cost of Revenue
(2,953,264)
108.4 %
(2,039,872)
(295,753)
103.0 %
-5.4 %
Cost of Revenue for Freight was RMB1,277.0 million (US$185.2 million), or 101.3% of revenue, in the fourth quarter of 2022. The 10.4% year-over-year decrease in cost of revenue as a percentage of revenue was mainly due to improved operating efficiency and effective cost control measures. Cost of Revenue for Supply Chain Management was RMB478.5 million (US$69.4 million), or 95.6% of revenue, in the fourth quarter of 2022. The 6.3% year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to effective cost control measures and customer structure optimization. Cost of Revenue for Global was RMB264.0 million (US$38.3 million), or 134.9% of revenue, in the fourth quarter of 2022. The 30.1% year-over-year increase in cost of revenue as a percentage of revenue was primarily due to lower parcel volume. Cost of Revenue for Others was RMB20.3 million (US$2.9 million), or 85.0% of revenue, in the fourth quarter of 2022, representing a 10.0% year-over-year increase.
Gross loss was RMB58.5 million (US$8.5 million) in the fourth quarter of 2022, compared with a gross loss of RMB228.4 million in the fourth quarter of 2021; Gross Margin was negative 3.0%, compared with negative 8.4% in the fourth quarter of 2021.
Operating Expenses
Selling, General and Administrative (“SG&A”) Expenses were RMB263.4 million (US$38.2 million), or 13.3% of revenue in the fourth quarter of 2022, compared with RMB354.8 million, or 13.0% of revenue in the same quarter of 2021. The decrease in the SG&A expenses was primarily due to reduced employee headcount.
Research and Development Expenses were RMB29.2 million (US$4.2 million), or 1.5% of revenue in the fourth quarter of 2022, compared with RMB50.3 million, or 1.8% of revenue in the fourth quarter of 2021, primarily due to reduced employee headcount.
Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB15.6 million (US$2.3 million) in the fourth quarter of 2022, compared with RMB23.7 million in the same period of 2021. Of the total SBC expenses, RMB0.08 million (US$0.01 million) was allocated to cost of revenue, RMB0.7 million (US$0.1 million) was allocated to selling expenses, RMB13.6 million (US$2.0 million) was allocated to general and administrative expenses, and RMB1.2 million (US$0.2 million) was allocated to research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations in the fourth quarter of 2022 was RMB365.8 million (US$53.0 million), compared with RMB734.1 million in the same period of 2021. Excluding SBC expenses and fair value change of equity investments, Non-GAAP Net Loss from continuing operations in the fourth quarter of 2022 was RMB338.0 million (US$49.0 million), compared with RMB710.4 million in the fourth quarter of 2021.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations
Diluted loss per ADS from continuing operations in the fourth quarter of 2022 was RMB4.49 (US$0.65), compared with a loss of RMB9.07 in the same period of 2021. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and fair value change of equity investments, Non-GAAP diluted loss per ADS from continuing operations in the fourth quarter of 2022 was RMB4.13 (US$0.60), compared with a loss of RMB8.77 in the fourth quarter of 2021. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations in the fourth quarter of 2022 was negative RMB296.9 million (US$43.0 million), compared with negative RMB635.2 million in the same period of 2021. Adjusted EBITDA Margin from continuing operations in the fourth quarter of 2022 was negative 15.0%, compared with negative 23.3% in the same period of 2021.
Capital Expenditures (“CAPEX”)
CAPEX was RMB11.1 million (US$1.6 million) or 0.6% of total revenue in the fourth quarter of 2022, compared with CAPEX of RMB20.6 million, or 0.8% of total revenue in the same period of 2021.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments
As of December 31, 2022, cash and cash equivalents, restricted cash and short-term investments were RMB3.2 billion (US$464.5 million), compared with RMB5.5 billion as of December 31, 2021. In 2022, the Company bought back approximately US$200 million (RMB1.4 billion) aggregate principal amount of its existing Convertible Senior Notes due 2024.
For the Fiscal Year Ended December 31, 2022:
Revenue
The following table sets forth a breakdown of revenue by business segment for the periods indicated.
Table 3 – Breakdown of Revenue by Business Segment
Fiscal Year Ended
December 31, 2021
December 31, 2022
(In ‘000, except for %)
RMB
% of
Revenue
RMB
US$
% of
Revenue
% Change
YoY
Total Freight
8,244,435
72.2 %
4,888,278
708,734
63.2 %
-40.7 %
-Freight
5,435,354
47.6 %
4,852,299
703,518
62.8 %
-10.7 %
-Legacy UCargo
2,809,081
24.6 %
35,979
5,216
0.4 %
-98.7 %
Supply Chain
Management
1,815,104
15.9 %
1,822,075
264,176
23.5 %
0.4 %
Global
1,193,855
10.4 %
916,907
132,939
11.8 %
-23.2 %
Others
172,442
1.5 %
116,812
16,936
1.5 %
-32.3 %
Total Revenue
11,425,836
100.0 %
7,744,072
1,122,785
100.0 %
-32.2 %
Freight Service Revenue was RMB4,888.3 million (US$708.7 million) in 2022 compared with RMB8,244.4 million in 2021, of which, RMB36.0 million and RMB2,809.1 million were from the legacy UCargo business line in 2022 and 2021, respectively. Freight service revenue, excluding the legacy UCargo business, decreased by 10.7% year over year, primarily due to lower volume. Supply Chain Management Service Revenue increased by 0.4% year over year to RMB1,822.1 million (US$264.2 million) in 2022 from RMB1,815.1 million in 2021, primarily due to newly signed customers with high unit economics following discontinuation of certain low margin legacy accounts, as well as improved service capability. Global Service Revenue decreased by 23.2% year over year to RMB916.9 million (US$132.9 million) in 2022 from RMB1,193.9 million in 2021, primarily due to decreased parcel volume.
Cost of Revenue
The following table sets forth a breakdown of cost of revenue by business segment for the periods indicated.
Table 4 – Breakdown of Cost of Revenue by Business Segment
Fiscal Year Ended
% of Revenue
Change
YoY
December 31, 2021
December 31, 2022
(In ‘000, except for %)
RMB
% of
Revenue
RMB
US$
% of
Revenue
Freight
(8,506,738)
103.2 %
(5,114,937)
(741,596)
104.6 %
1.4 %
Supply Chain
Management
(1,741,832)
96.0 %
(1,711,818)
(248,190)
93.9 %
-2.1 %
Global
(1,258,511)
105.4 %
(1,081,587)
(156,815)
118.0 %
12.6 %
Others
(118,143)
68.5 %
(99,288)
(14,395)
85.0 %
16.5 %
Total Cost of Revenue
(11,625,224)
101.7 %
(8,007,630)
(1,160,996)
103.4 %
1.7 %
Cost of Revenue for Freight was RMB5,114.9 million (US$741.6 million), or 104.6% of revenue in 2022. The 1.4% year-over-year increase in cost of revenue as a percentage of revenue was mainly due to lower volume. Cost of Revenue for Supply Chain Management was RMB1,711.8 million (US$248.2 million), or 93.9% of revenue in 2022. The 2.1% year-over-year decrease in cost of revenue as a percentage of revenue was primarily due to effective cost control measures and customer structure optimization. Cost of Revenue for Global was RMB1,081.6 million (US$156.8 million), or 118.0% of revenue in 2022. The 12.6% year-over-year increase in cost of revenue as a percentage of revenue was primarily due to lower parcel volume. Cost of Revenue for Others was RMB99.3 million (US$14.4 million), or 85.0% of revenue in 2022, representing a 16.5% year-over-year increase.
Gross loss was RMB263.6 million (US$38.2 million) in 2022, compared with a gross loss of RMB199.4 million in 2021; Gross Margin was negative 3.4%, compared with negative 1.7% in 2021.
Operating Expenses
Selling, General and Administrative (“SG&A”) Expenses were RMB1,127.3 million (US$163.4 million), or 14.6% of revenue in 2022, compared with RMB1,141.7 million, or 10.0% of revenue in 2021 due to reduced employee headcount.
Research and Development Expenses were RMB144.2 million (US$20.9 million), or 1.9% of revenue in 2022, compared with RMB180.2 million, or 1.6% of revenue in 2021 due to reduced employee headcount.
Share-based Compensation (“SBC”) Expenses included in the cost and expense items above were RMB72.1 million (US$10.5 million) in 2022, compared with RMB107.7 million in 2021. Of the total SBC expenses, RMB0.32 million (US$0.05 million) was allocated to cost of revenue, RMB3.5 million (US$0.5 million) was allocated to selling expenses, RMB63.3 million (US$9.2 million) was allocated to general and administrative expenses, and RMB5.0 million (US$0.7 million) was allocated to research and development expenses.
Net Loss and Non-GAAP Net Loss from continuing operations
Net Loss from continuing operations in 2022 was RMB1,464.8 million (US$212.4 million), compared with RMB1,263.9 million in 2021. Excluding SBC expenses and fair value change of equity investments, Non-GAAP Net Loss from continuing operations in 2022 was RMB1,380.4 million (US$200.1 million), compared with RMB1,214.8 million in 2021.
Diluted loss per ADS and Non-GAAP diluted loss per ADS from continuing operations
Diluted loss per ADS from continuing operations in 2022 was RMB18.17 (US$2.63), compared with a loss of RMB15.61 in 2021. Excluding SBC expenses, amortization of intangible assets resulting from business acquisitions and fair value change of equity investments, Non-GAAP diluted loss per ADS from continuing operations in 2022 was RMB17.09 (US$2.48), compared with a loss of RMB14.98 in 2021. A reconciliation of non-GAAP diluted loss per ADS to diluted loss per ADS is included at the end of this results announcement.
Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations
Adjusted EBITDA from continuing operations in 2022 was negative RMB1,181.8 million (US$171.3 million), compared with negative RMB927.2 million in 2021. Adjusted EBITDA Margin from continuing operations in 2022 was negative 15.3%, compared with negative 8.1% in 2021.
Capital Expenditures (“CAPEX”)
CAPEX was RMB143.3 million (US$20.8 million) or 1.9% of total revenue in 2022, compared with CAPEX of RMB160.0 million, or 1.4% of total revenue in 2021.
SHARES OUTSTANDING
As of February 28, 2023, the Company had approximately 393.9 million ordinary shares outstanding([14]). Each American Depositary Share represents five (5) Class A ordinary shares.
FINANCIAL GUIDANCE
The Company confirms its guidance for total revenue between RMB 9.0 billion and RMB 9.5 billion for the full year of 2023.
This forecast reflects the Company’s current and preliminary view based on its current business situation and market conditions, which are subject to change.
WEBCAST AND CONFERENCE CALL INFORMATION
The Company will hold a conference call at 8:00 pm U.S. Eastern Time on March 8, 2023 (9:00 am Beijing Time on March 9, 2023), to discuss its financial results and operating performance for the fourth quarter and fiscal year 2022.
Participants may access the call by dialing the following numbers:
United States : +1-888-317-6003
Hong Kong : 800-963976 or +852-5808-1995
Mainland China : 4001-206115
International : +1-412-317-6061
Participant Elite Entry Number : 1659917
A replay of the conference call will be accessible through March 15, 2023 by dialing the following numbers:
United States : +1-877-344-7529
International : +1-412-317-0088
Replay Access Code : 1608887
Please visit the Company’s investor relations website to view the earnings release prior to the conference call. A live and archived webcast of the conference call and a corporate presentation will be available at the same site.
ABOUT BEST INC.
BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including freight delivery, supply chain management and global logistics services. BEST’s mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain. For more information, please visit: http://www.best-inc.com/en/.
For investor and media inquiries, please contact:
BEST Inc.
Investor relations team
[email protected]
The Piacente Group, Inc.
Helen Wu
Tel: +86-10-6508-0677
E-mail: [email protected]
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]
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. Among other things, the business outlook and quotations from management in this announcement, as well as BEST’s strategic and operational plans, contain forward-looking statements. BEST may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, 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 BEST’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: BEST’s goals and strategies; BEST’s future business development, results of operations and financial condition; BEST’s ability to maintain and enhance its ecosystem; BEST’s ability to compete effectively; BEST’s ability to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain its culture of innovation; fluctuations in general economic and business conditions in China and other countries in which BEST operates, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in BEST’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and BEST does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
USE OF NON-GAAP FINANCIAL MEASURES
In evaluating its business, BEST considers and uses non-GAAP measures, such as non-GAAP net loss/income, non-GAAP net loss/income margin, adjusted EBITDA, adjusted EBITDA margin, EBITDA, and non-GAAP Diluted earnings/loss per ADS, as supplemental measures in the evaluation of the Company’s operating results and in the Company’s financial and operational decision-making. The Company believes these non-GAAP financial measures that help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in loss from operations and net loss. The Company believes that these non-GAAP financial measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” in the results announcement.
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Summary of Unaudited Condensed Consolidated Income Statements
(In Thousands)
Three Months Ended December 31,
Fiscal Year Ended December 31,
2021
2022
2021
2022
RMB
RMB
US$
RMB
RMB
US$
Revenue
Freight
1,854,018
1,261,196
182,856
8,244,435
4,888,278
708,734
-Freight
1,503,995
1,260,244
182,718
5,435,354
4852,299
705,696
-Legacy UCargo
350,023
952
138
2,809,081
35,979
3,038
Supply Chain Management
487,337
500,602
72,580
1,815,104
1,822,075
264,176
Global
330,564
195,680
28,371
1,193,855
916,907
132,939
Others
52,935
23,917
3,468
172,442
116,812
16,936
Total Revenue
2,724,854
1,981,395
287,275
11,425,836
7,744,072
1,122,785
Cost of Revenue
Freight
(2,070,840)
(1,277,026)
(185,151)
(8,506,738)
(5,114,937)
(741,596)
Supply Chain Management
(496,353)
(478,511)
(69,378)
(1,741,832)
(1,711,818)
(248,190)
Global
(346,392)
(264,014)
(38,278)
(1,258,511)
(1,081,587)
(156,815)
Others
(39,679)
(20,321)
(2,946)
(118,143)
(99,288)
(14,395)
Total Cost of Revenue
(2,953,264)
(2,039,872)
(295,753)
(11,625,224)
(8,007,630)
(1,160,996)
Gross Loss
(228,410)
(58,477)
(8,478)
(199,388)
(263,558)
(38,211)
Selling Expenses
(73,021)
(54,621)
(7,919)
(260,219)
(237,918)
(34,495)
General and Administrative
Expenses
(281,772)
(208,738)
(30,264)
(881,498)
(889,345)
(128,943)
Research and Development
Expenses
(50,294)
(29,247)
(4,240)
(180,204)
(144,181)
(20,904)
Other operating (loss)/income, net
(89,893)
3,387
491
58,337
108,817
15,777
Loss from Operations
(723,390)
(347,696)
(50,410)
(1,462,972)
(1,426,185)
(206,776)
Interest Income
17,735
19,208
2,785
49,658
80,361
11,651
Interest Expense
(29,310)
(16,329)
(2,367)
(142,751)
(89,058)
(12,912)
Foreign Exchange Gain/(loss)
44,186
68,318
9,905
44,556
(132,730)
(19,244)
Other Income
6,709
2,149
312
321,075
25,914
3,757
Other Expense
(34,657)
(13,815)
(2,003)
(55,253)
5,763
836
(Loss)/Gain on changes in the fair
value of derivative assets/liabilities
(14,918)
(77,577)
(11,248)
(14,918)
71,619
10,384
Loss before Income Tax and
Share of Net Loss of Equity
Investees
(733,645)
(365,742)
(53,026)
(1,260,605)
(1,464,316)
(212,304)
Income Tax Expense
(500)
(106)
(15)
(3,198)
(511)
(74)
Loss before Share of Net loss of
Equity Investees
(734,145)
(365,848)
(53,041)
(1,263,803)
(1,464,827)
(212,378)
Share of Net Loss of Equity
Investees
–
–
–
(58)
–
–
Net Loss from continuing
operations
(734,145)
(365,848)
(53,041)
(1,263,861)
(1,464,827)
(212,378)
Net gain/(loss) from discontinued
operations
2,679,400
(31,787)
(4,609)
1,473,489
(38,464)
(5,577)
Net Gain/(Loss)
1,945,255
(397,635)
(57,650)
209,628
(1,503,291)
(217,955)
Net Loss from continuing operations
attributable to non-controlling
interests
(28,727)
(13,055)
(1,893)
(52,279)
(39,980)
(5,797)
Net Gain/(Loss) attributable to
BEST Inc.
1,973,982
(384,580)
(55,757)
261,907
(1,463,311)
(212,158)
Summary of Unaudited Condensed Consolidated Balance Sheets
(In Thousands)
As of December 31,2021
As of December 31, 2022
RMB
RMB
US$
Assets
Current Assets
Cash and Cash Equivalents
3,571,745
533,481
77,347
Restricted Cash
675,159
399,337
57,898
Accounts and Notes Receivables
827,631
691,324
100,237
Inventories
25,622
16,480
2,389
Prepayments and Other Current
Assets
1,172,472
795,401
115,322
Short–term Investments
147,359
725,043
105,121
Amounts Due from Related Parties
125,198
76,368
11,072
Lease Rental Receivables
298,364
43,067
6,244
Total Current Assets
6,843,550
3,280,501
475,630
Non–current Assets
Property and Equipment, Net
762,642
784,732
113,775
Intangible Assets, Net
55,684
75,553
10,954
Long–term Investments
219,171
156,859
22,742
Goodwill
54,135
54,135
7,849
Non–current Deposits
92,866
50,767
7,361
Other Non–current Assets
111,640
75,666
10,971
Restricted Cash
1,069,244
1,545,605
224,092
Lease Rental Receivables
235,429
40,188
5,827
Operating Lease Right-of-use
Assets
1,899,522
1,743,798
252,827
Total non–current Assets
4,500,333
4,527,303
656,398
Total Assets
11,343,883
7,807,804
1,132,028
Liabilities and Shareholders’
Equity
Current Liabilities
Long-term borrowings-current
287,814
79,148
11,475
Convertible Senior Notes held by
related parties
633,475
1,045,488
151,582
Convertible Senior Notes held by
third parties
633,475
77
11
Short–term Bank Loans
530,495
183,270
26,572
Accounts and Notes Payable
1,353,150
1,430,004
207,331
Income Tax Payable
587
1,563
227
Customer Advances and Deposits
and Deferred Revenue
298,353
277,737
40,268
Accrued Expenses and Other
Liabilities
1,591,639
1,198,228
173,727
Financing Lease Liabilities
1,851
1,490
216
Operating Lease Liabilities
518,248
544,262
78,911
Amounts Due to Related Parties
2,763
1,315
191
Total Current Liabilities
5,851,850
4,762,582
690,511
Summary of Unaudited Condensed Consolidated Balance Sheets (Cont’d)
(In Thousands)
As of December 31, 2021
As of December 31, 2022
RMB
RMB
US$
Non-current Liabilities
Convertible senior notes held by
related parties
955,097
–
–
Long-term borrowings
67,080
381
55
Operating Lease Liabilities
1,456,843
1,292,057
187,331
Financing Lease Liabilities
2,121
1,392
202
Other Non–current Liabilities
24,261
18,752
2,719
Long-term Bank Loans
769,767
928,894
134,677
Total Non–current Liabilities
3,275,169
2,241,476
324,984
Total Liabilities
9,127,019
7,004,058
1,015,495
Mezzanine Equity:
Convertible Non-controlling Interests
191,865
191,865
27,818
Total mezzanine equity
191,865
191,865
27,818
Shareholders’ Equity
Ordinary Shares
25,988
25,988
3,768
Treasury Shares
(113,031)
–
–
Additional Paid–In Capital
19,522,173
19,481,417
2,824,540
Statutory reserves
167
–
–
Accumulated Deficit
(17,471,716)
(18,934,860)([15])
(2,745,297)
Accumulated Other
Comprehensive Income
107,379
124,464
18,046
BEST Inc. Shareholders’ Equity
2,070,960
697,009
101,057
Non-controlling Interests
(45,961)
(85,128)
(12,342)
Total Shareholders’ Equity
2,024,999
611,881
88,715
Total Liabilities, Mezzanine Equity
and Shareholders’ Equity
11,343,883
7,807,804
1,132,028
Summary of Unaudited Condensed Consolidated Statements of Cash Flows
(In Thousands)
Three Months Ended December 31,
Fiscal Year Ended December 31,
2021
2022
2021
2022
RMB
RMB
US$
RMB
RMB
US$
Net cash used in continuing
operating activities
(508,632)
(241,890)
(35,071)
(891,135)
(1,051,662)
(152,478)
Net cash used in discontinued
operating activities
(387,540)
–
–
(1,912,826)
(66,174)
(9,594)
Net cash used in operating
activities
(896,172)
(241,890)
(35,071)
(2,803,961)
(1,117,836)
(162,072)
Net cash generated from
continuing investing activities
3,236,982
239,536
34,729
4,990,734
150,756
21,858
Net cash used in discontinued
Investing activities
(97,328)
–
–
(448,016)
–
–
Net cash generated from
investing activities
3,139,654
239,536
34,729
4,542,718
150,756
21,858
Net cash (used in)/generated
from continuing financing
activities
(746,656)
481
70
(237,922)
(1,948,367)
(282,487)
Net cash generated from/(used
in) discontinued financing
activities
469,421
–
–
(337,838)
–
–
Net cash (used in)/generated
from financing activities
(277,235)
481
70
(575,760)
(1,948,367)
(282,487)
Exchange Rate Effect on Cash
and Cash Equivalents, and
Restricted Cash
(29,450)
(14,864)
(2,155)
(55,970)
77,722
11,269
Net increase/(decrease) in
Cash and Cash Equivalents,
and Restricted Cash
1,936,797
(16,737)
(2,427)
1,107,027
(2,837,725)
(411,432)
Cash and Cash Equivalents,
and Restricted Cash at
Beginning of Period
3,379,351
2,495,160
361,764
4,209,121
5,316,148
770,769
Cash and Cash Equivalents,
and Restricted Cash at End
of Period
5,316,148
2,478,423
359,337
5,316,148
2,478,423
359,337
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s net loss to EBITDA, adjusted EBITDA and adjusted EBITDA margin for the periods indicated:
Table 5 – Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended December 31, 2022
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([16])
Total
Net Loss
(137,133)
(13,939)
(134,200)
(25,378)
(55,198)
(365,848)
Add
Depreciation &
Amortization
19,411
7,492
11,682
847
4,448
43,880
Interest Expense
–
–
–
–
16,329
16,329
Income Tax Expense
–
(12)
(5)
123
–
106
Subtract
Interest Income
–
–
–
–
(19,208)
(19,208)
EBITDA
(117,722)
(6,459)
(122,523)
(24,408)
(53,629)
(324,741)
Add
Share-based
Compensation
Expenses
2,237
1,259
(235)
25
12,291
15,577
Loss from
depreciation of
investments
–
–
–
–
12,312
12,312
Adjusted EBITDA
(115,485)
(5,200)
(122,758)
(24,383)
(29,026)
(296,852)
Adjusted EBITDA
Margin
(9.2 %)
(1.0 %)
(62.7 %)
(101.9 %)
–
(15.0 %)
Three Months Ended December 31, 2021
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([17])
Total
Net Loss
(447,057)
(74,380)
(85,518)
(60,046)
(67,144)
(734,145)
Add
Depreciation &
Amortization
19,730
9,431
4,696
23,257
6,058
63,172
Interest Expense
–
–
–
–
29,310
29,310
Income Tax
Expense
–
79
–
421
–
500
Subtract
Interest Income
–
–
–
–
(17,735)
(17,735)
EBITDA
(427,327)
(64,870)
(80,822)
(36,368)
(49,511)
(658,898)
Add
Share-based
Compensation
Expenses
3,404
1,967
2,066
124
16,173
23,734
Adjusted EBITDA
(423,923)
(62,903)
(78,756)
(36,244)
(33,338)
(635,164)
Adjusted EBITDA
Margin
(22.9 %)
(12.9 %)
（23.8%)
(68.5 %)
–
(23.3 %)
Fiscal Year Ended December 31, 2022
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([18])
Total
Net Loss
(506,411)
(32,277)
(420,687)
(213,794)
(291,658)
(1,464,827)
Add
Depreciation &
Amortization
79,273
35,789
29,300
22,846
22,179
189,387
Interest Expense
–
–
–
–
89,058
89,058
Income Tax
Expense
–
23
25
451
12
511
Subtract
Interest Income
–
–
–
–
(80,361)
(80,361)
EBITDA
(427,138)
3,535
(391,362)
(190,497)
(260,770)
(1,266,232)
Add
Share-based
Compensation
Expenses
10,478
6,081
4,962
319
50,256
72,096
Loss from
depreciation of
investments
–
–
–
–
12,312
12,312
Adjusted EBITDA
(416,660)
9,616
(386,400)
(190,178)
(198,202)
(1,181,824)
Adjusted EBITDA
Margin
(8.5 %)
0.5 %
(42.1 %)
(162.8 %)
–
(15.3 %)
Fiscal Year Ended December 31, 2021
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([19])
Total
Net Loss
(707,793)
(103,387)
(267,902)
(90,775)
(94,004)
(1,263,861)
Add
Depreciation &
Amortization
83,425
38,525
19,506
24,396
25,513
191,365
Interest Expense
–
–
–
–
142,751
142,751
Income Tax
Expense/(Benefit)
–
173
21
3,010
(6)
3,198
Subtract
Interest Income
–
–
–
–
(49,658)
(49,658)
EBITDA
(624,368)
(64,689)
(248,375)
(63,369)
24,596
(976,205)
Add
Share-based
Compensation
Expenses
13,537
8,351
8,604
608
76,581
107,681
Subtract
Gain from
appreciation of
investments
–
–
–
–
(58,643)
(58,643)
Adjusted EBITDA
(610,831)
(56,338)
(239,771)
(62,761)
42,534
(927,167)
Adjusted EBITDA
Margin
(7.4 %)
(3.1 %)
(20.1 %)
(36.4 %)
–
(8.1 %)
For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s net loss to non-GAAP net loss, non-GAAP net loss margin for the periods indicated:
Table 6 – Reconciliation of Non-GAAP Net Loss and Non-GAAP Net Loss Margin
Three Months Ended December 31, 2022
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([20])
Total
Net Loss
(137,133)
(13,939)
(134,200)
(25,378)
(55,198)
(365,848)
Add
Share-based
Compensation
Expenses
2,237
1,259
(235)
25
12,291
15,577
Loss from
depreciation of
investments
–
–
–
–
12,312
12,312
Non-GAAP Net
Loss
(134,896)
(12,680)
(134,435)
(25,353)
(30,595)
(337,959)
Non-GAAP Net
Loss Margin
(10.7 %)
(2.5 %)
(68.7 %)
(106.0 %)
–
(17.1 %)
Three Months Ended December 31, 2021
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([21])
Total
Net Loss
(447,057)
(74,380)
(85,518)
(60,046)
(67,144)
(734,145)
Add
Share-based
Compensation
Expenses
3,404
1,967
2,066
124
16,173
23,734
Non-GAAP Net
Loss
(443,653)
(72,413)
(83,452)
(59,922)
(50,971)
(710,411)
Non-GAAP Net
Loss Margin
(23.9 %)
(14.9 %)
(25.2 %)
(113.2 %)
–
(26.1 %)
Fiscal Year Ended December 31, 2022
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([22])
Total
Net Loss
(506,411)
(32,277)
(420,687)
(213,794)
(291,658)
(1,464,827)
Add
Share-based
Compensation
Expenses
10,478
6,081
4,962
319
50,256
72,096
Loss from
depreciation of
investments
–
–
–
–
12,312
12,312
Non-GAAP Net
Loss
(495,933)
(26,196)
(415,725)
(213,475)
(229,090)
(1,380,419)
Non-GAAP Net
Loss Margin
(10.1 %)
(1.4 %)
(45.3 %)
(182.8 %)
–
(17.8 %)
Fiscal Year Ended December 31, 2021
(In RMB’000)
Freight
Supply Chain
Global
Others
Unallocated([23])
Total
Net Loss
(707,793)
(103,387)
(267,902)
(90,775)
(94,004)
(1,263,861)
Add
Share-based
Compensation
Expenses
13,537
8,351
8,604
608
76,581
107,681
Subtract
Gain from
appreciation of
investments
–
–
–
–
(58,643)
(58,643)
Non-GAAP Net
Loss
(694,256)
(95,036)
(259,298)
(90,167)
(76,066)
(1,214,823)
Non-GAAP Net
Loss Margin
(8.4 %)
(5.2 %)
(21.7 %)
(52.3 %)
–
(10.6 %)
For the Company’s continuing operations, the table below sets forth a reconciliation of the Company’s diluted loss per ADS to Non-GAAP diluted loss per ADS for the periods indicated:
Table 7 – Reconciliation of diluted loss per ADS and Non-GAAP diluted loss per ADS
Three Months Ended December 31,
Fiscal Year Ended December 31,
2022
2022
(In ‘000)
RMB
US$
RMB
US$
Net Loss Attributable to Ordinary Shareholders
(352,793)
(51,148)
(1,424,847)
(206,581)
Add
Share-based Compensation Expenses
15,577
2,258
72,096
10,454
Loss from depreciation of investments
12,312
1,785
12,312
1,785
Non-GAAP Net Loss Attributable to Ordinary
Shareholders
(324,904)
(47,105)
(1,340,439)
(194,342)
Weighted Average Diluted Ordinary Shares
Outstanding During the Quarter
Diluted
393,078,084
393,078,084
392,192,648
392,192,648
Diluted (Non-GAAP)
393,078,084
393,078,084
392,192,648
392,192,648
Diluted loss per ordinary share
(0.90)
(0.13)
(3.63)
(0.53)
Add
Non-GAAP adjustment to net loss per
ordinary share
0.07
0.01
0.21
0.03
Non-GAAP diluted loss per ordinary share
(0.83)
(0.12)
(3.42)
(0.50)
Diluted loss per ADS
(4.49)
(0.65)
(18.17)
(2.63)
Add
Non-GAAP adjustment to net loss per ADS
0.36
0.05
1.08
0.15
Non-GAAP diluted loss per ADS
(4.13)
(0.60)
(17.09)
(2.48)
([1]) All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year over year comparisons are based on figures before rounding.
([2]) In December 2021, BEST sold its China express business, the principal terms of which were previously announced. As a result, China express business has been deconsolidated from the Company and its historical financial results are reflected in the Company’s consolidated financial statements as discontinued operations accordingly. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.
([3]) Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).
([4]) See the sections entitled “Use of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.
([5]) Diluted earnings/loss per ADS, is calculated by dividing net income/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period.
([6]) EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).
([7]) Non-GAAP net income/loss represents net income/loss excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and fair value change of equity investments (if any).
([8]) See the sections entitled “Use of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.
([9]) Diluted earnings/loss per ADS, is calculated by dividing net income/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares expressed in ADS outstanding during the period.
([10]) EBITDA represents net income/loss excluding depreciation, amortization, interest expense and income tax expense and minus interest income. Adjusted EBITDA represents EBITDA excluding share-based compensation expenses and fair value change of equity investments (if any).
([11]) All numbers presented have been rounded to the nearest integer, tenth, or hundredth, and year over year comparisons are based on figures before rounding.
([12]) All numbers represented the financial results from continuing operations, unless otherwise stated.
([13]) “Others” Segment primarily represents Capital business units. Results from UCargo’s legacy contracts with external customers are now reported under “Freight” segment and prior period segment information were retrospectively revised to conform to current period presentation.
([14]) The total number of shares outstanding excludes shares reserved for future issuances upon exercise or vesting of awards granted under the Company’s share incentive plans.
([15]) Including accumulated accretion to redemption value and deemed dividend in relation to redeemable convertible preferred shares of RMB9,493,807, and accumulated loss from operations of RMB9,441,053.
([16]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([17]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([18]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([19]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([20]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([21]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([22]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.
([23]) Unallocated expenses are primarily related to corporate administrative expenses and other miscellaneous items that are not allocated to individual segments.