BEIJING, Aug. 15, 2016 /PRNewswire/ -- Tarena
International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a
leading provider of professional education services in China today announced its unaudited financial
results for the second quarter ended June
30, 2016.
Second Quarter 2016 Financial and Operational
Highlights
- Net revenues increased by 35.2% year-over-year to US$55.9 million from US$41.3 million in the same period in 2015.
- Gross profit increased by 37.3% year-over-year to US$39.2 million from US$28.6 million in the same period in 2015.
- Operating income increased by 400.3% year-over-year to
US$6.1 million from US$1.2 million in the same period in 2015.
Non-GAAP operating income, which excluded share-based compensation
expenses, increased by 217.2% to US$8.3
million fromUS$2.6 million in the same period in 2015.
- Operating margin was 10.9%, compared to 2.9% in the same period
in 2015. Non-GAAP operating margin was 14.9%, compared to 6.4% in
the same period in 2015.
- Net income increased by 131.5% to US$6.6
million from US$2.9 million in
the same period in 2015. Non-GAAP net income, which excluded
share-based compensation expenses and gain on foreign currency
forward contract, increased by 83.5% to US$7.9 million from US$4.3
million in the same period in 2015.
- Basic and diluted net income per American Depositary Share
("ADS") were US$0.12 and US$0.11, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses and gain on foreign currency forward
contract, were US$0.14 and
US$0.13, respectively. Each ADS
represents one Class A ordinary share.
- Deferred revenue totaled US$42.2
million as of June 30, 2016,
compared to US$25.3 million as of
December 31, 2015.
- Net operating cash flow for the second quarter of 2016 was
approximately US$24.8 million.
- Total student enrollments, defined as the total number of new
students recruited and registered, in the second quarter of 2016
increased by 21.5% year-over-year to 26,747.
- Total course enrollments, defined as the cumulative number of
courses enrolled in by our students, in the second quarter of 2016
increased by 38.5% year-over-year to 23,694.
- Total seat capacity, defined as the total number of seats
available in our learning centers, increased by 22.5% to 47,632 as
of June 30, 2016, from 38,870 as of
June 30, 2015.
- Total number of learning centers increased to 138 as of
June 30, 2016, from 128 as of
June 30, 2015.
"I am delighted to report another excellent quarter with
significant revenue growth and margin expansion," said Mr.
Shaoyun Han, Tarena's Chairman and
Chief Executive Officer. "We maintained robust year-over-year
top-line growth of 35.2% in the second quarter of 2016. The growth
was mainly driven by increase in student enrollments, particularly
from Java, Digital Arts and Web-front development courses, which
ranked our top 3 courses by student enrollments in the second
quarter of 2016. Such strong performance further validated our
strategy to continue diversifying our course offerings and meeting
student demands at different levels."
"Our kid education programs also showed good progress this
quarter. Besides Tongcheng and Tongmei that we launched in
December 2015, we rolled out
Tongchuang program featuring robot programming designed for kids in
the second quarter 2016. By the end of June
2016, we have extended kid programs in 14 cities and the
total student enrollment in kid programs reached 699 in the second
quarter of 2016. After several months of pilot trial, we expect the
kid programs will grow faster in the coming quarters." continued
Mr. Han.
"Along with the enrollment growth, we further extended
geographic footprint and optimize facility resources. Therefore,
total number of learning centers increased to 138, covering 42
cities in China, while seat
capacity increased to 47,632 as of June 30,
2016 from 38,870 as of June 30,
2015. We are confident in achieving our expansion target set
at the beginning of the year. As we communicated previously, we
focus on delivering high quality and differentiated education
services to our students, enhancing their learning experiences and
outcomes, and strengthening our leading position in professional
education market." Mr. Han concluded.
Mr. Yuduo Yang, Tarena's Chief Financial Officer, added, "In
addition to our solid top line results, we are particularly pleased
to see margin expansion year-over-year and even stronger growth in
operating income. Gross margin increased by 104 basis points
year-over-year to 70.2% and operating margin increased by 794 basis
points year-over-year to 10.9%. We will continue to execute on our
objective and priority for 2016 in improving our operating
efficiency to drive sustainable growth in the long run."
Second Quarter 2016 Results
Net Revenues
Net revenues increased by 35.2% to US$55.9 million in the second quarter of 2016,
from US$41.3 million in the same
period in 2015. The increase was primarily due to increased course
enrollments and to a lesser extent, an increase in the standard
tuition fees.
Total course enrollments in the second quarter of 2016 increased
by 38.5% to 23,694 from 17,104 in the same period in 2015, which
was driven mainly by the popularity of our course offerings. The
number of our course offerings increased from 14 in the second
quarter of 2015 to 17 in the second quarter of 2016. The number of
our learning centers increased from 128 as of June 30, 2015 to 138 as of June 30, 2016, while the total seat capacity in
our learning centers increased by 22.5% to 47,632 as of
June 30, 2016 from 38,870 as of
June 30, 2015 to cater to the
increased demand for our courses.
In March 2016, we raised the
standard tuition fees on selected courses by RMB1,000 to RMB
2,000 per course. We charge students enrolled through the
retail channel our standard tuition fee and provide students
enrolled through the university channel a discount of approximately
RMB4,000 per person per course. Our
student enrollment mix from retail and university channel was
85%/15% and 81%/19% in the second quarter of 2016 and 2015,
respectively.
Cost of Revenues
Cost of revenues increased by 30.7% to US$16.7 million in the second quarter of 2016,
from US$12.8 million in the same
period in 2015. The increase was mainly due to higher personnel
cost and welfare expenses resulting from increased number of
teaching and advisory staff at our learning centers and higher
average salary, higher rental cost resulting from increased seat
capacity, as well as higher depreciation expenses for our learning
centers.
Gross Profit and Gross Margin
Gross profit increased by 37.3% to US$39.2 million in the second quarter of 2016,
from US$28.6 million in the same
period in 2015. Gross margin increased to 70.2% in the second
quarter of 2016 from 69.1% in the same period in 2015. The
improvement in gross margin was mainly due to increased standard
tuition fees in RMB.
Operating Expenses
Total operating expenses increased by 21.1% to US$33.2 million in the second quarter of 2016,
from US$27.4 million in the same
period in 2015. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 19.4% to
US$31.0 million in the second quarter
of 2016, from US$26.0 million in the
same period in 2015. Total share-based compensation expenses
allocated to the related operating expenses increased by 53.8% to
US$2.1 million in the second quarter
of 2016, from US$1.4 million in the
same period in 2015.
Selling and marketing expenses increased by 15.1% to
US$19.4 million in the second quarter
of 2016, from US$16.8 million in the
same period in 2015. The increase was due to higher personnel cost
and welfare expenses related to the growth in our selling and
marketing headcount and higher average salary, as we expanded our
course offerings and network of learning centers.
General and administrative expenses increased by 41.2% to
US$12.0 million in the second quarter
of 2016, from US$8.5 million in the
same period in 2015. The increase was mainly due to higher
compensation cost for our increased number of general and
administrative personnel to support our growing operations, and
higher share-based compensation expenses. Non-GAAP general and
administrative expenses, which excluded share-based compensation
expenses, increased by 38.4% to US$10.1
million, from US$7.3 million
in the same period in 2015.
Research and development expenses decreased by 13.4% to
US$1.8 million in the second quarter
of 2016, from US$2.0 million in the
same period in 2015. The decrease was mainly due to lower personnel
cost and welfare expenses of our instructors allocated to their
content development activities for our courses, as well as
decreased travelling expenses as some R&D programs have been
completed in the second quarter of 2016.
Operating Income
Operating income was US$6.1
million in the second quarter of 2016, compared to
US$1.2 million in the same period in
2015. Operating margin was 10.9% in the second quarter of 2016,
compared to 2.9% in the same period in 2015. Non-GAAP operating
income, which excluded share-based compensation expenses, was
US$8.3 million, compared to
US$2.6 million in the same period in
2015. Non-GAAP operating margin was 14.9% in the second quarter of
2016, compared to 6.4% in the same period in 2015.
Interest Income
Interest income was US$0.8 million
in the second quarter of 2016, compared to US$1.3 million in the same period in 2015.
Interest income in both periods consisted of interest earned on our
cash, cash equivalents and time deposits in commercial banks and
interest income recognized in relation to our installment payment
plan for students. The decrease in interest income was primarily
due to lower bank deposits and interest rate, as well as lower
tuition interest income in relation to our installment payment plan
for students.
Foreign Exchange
Gain(Loss)
Foreign exchange loss was US$1.0
million in the second quarter of 2016, compared to
US$0.6 million foreign exchange gain
in the same period in 2015. The loss was attributable to the
depreciation of China's RMB against U.S. Dollar as a significant
portion of the Company's IPO proceeds in April 2014 had been placed in bank deposits in
RMB before we converted them into US dollars under the foreign
currency forward contract settled in May
2016.
Gain on foreign currency
forward contract
Gain on foreign currency forward contract was US$1.0 million in the second quarter of 2016, due
to the fluctuation in the exchange rate between U.S. dollars and
RMB. In January 2016, the Company
entered into a foreign currency forward contract to offset the
changes in the carrying amounts of RMB deposits due to fluctuations
in RMB to US dollar exchange rate. The contract has been settled in
May 2016.
Income Tax Expense
The Company recorded an income tax expense of US$0.6 million in the second quarter of 2016,
compared to an income tax expense of US$0.4
million in the same period in 2015. The change was mainly
due to higher taxable income, largely offset by a decrease in the
effective income tax rate to 8.4% in the second quarter of 2016
from 12.8% in the same period in 2015.
Net Income
As a result of the foregoing, net income was US$6.6 million in the second quarter of 2016,
compared to US$2.9 million in the
same period in 2015. Non-GAAP net income, which excluded
share-based compensation expenses and gain on foreign currency
forward contract, was US$7.9 million,
compared to US$4.3 million in the
same period in 2015.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS in the second quarter of
2016 were US$0.12 and US$0.11, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses and gain on foreign currency forward
contract, were US$0.14 and
US$0.13, respectively.
Cash and Time Deposits
Cash and time deposits totaled US$183.0
million as of June 30, 2016,
compared to US$189.1 million as of
December 31, 2015. In the second
quarter of 2016, the Company purchased an office building, mainly
for teaching purpose, and to a lesser extent, for administrative
functions, with a total consideration of approximately RMB114.6 million.
Cash Flow
Net operating cash flow for the second quarter of 2016 was
approximately US$24.8 million.
Capital expenditures for the second quarter of 2016 were
US$20.9 million.
Shares Issued and Outstanding
As of June 30, 2016, the Company
had 45,285,552 Class A and 10,574,896 Class B ordinary shares
outstanding. Each ADS represents one Class A ordinary share.
Stock Repurchase
As of June 30, 2016, the Company
repurchased 1,289,814 Class A ordinary shares from the open market
with the consideration of US$11,469,370. On August
20, 2015, the Board of Directors approved a share repurchase
plan under which the Company may repurchase up to US$20 million of its shares over the next 12
months. According to the plan, the share repurchases may be made
from time to time on the open market at prevailing market prices,
in privately negotiated transactions, in block trades and/or
through other legally permissible means, depending on market
conditions and in accordance with applicable rules and
regulations.
Business Outlook
Taking into consideration the significant change in RMB exchange
rate against the U.S. dollar compared with same period in 2015,
based on the Company's current estimates, total net revenues for
the third quarter of 2016 are expected to be between US$70.0 million and US$72.5 million, representing
an increase of 17% to 21% on a year-over-year basis. If not
including the impact from the depreciation of RMB against the U.S.
Dollar, the projected revenue growth rate is expected to be in the
range of 24% to 28% on a year-over-year basis for the second
quarter of 2016.
The Company also expects its total net revenues for the full
year of 2016 to be between US$232.5 million
and US$238.5 million, representing an increase of 23% to 26%
on a year-over-year basis. The latest net revenues projection is
US$2.5 million higher than the
original net revenues projection of US$230.0
million to US$236.0 million issued in May 2016. If not including the impact from the
depreciation of RMB against the U.S. Dollar, the projected revenue
growth rate is expected to be in the range of 30% to 33% on a
year-over-year basis for the fiscal year 2016.
This guidance is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions, which are subject to change.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the second quarter of 2016 ended
June 30, 2016 at 9:00 p.m. Eastern Daylight Time on August 15, 2016 (9:00
a.m. Beijing time on
August16, 2016).
The dial-in details for the live conference call are as
follows:
United States:
8552983404
Hong Kong: 800 905 927
China Mainland: 400 120 0539
Singapore: 800 616 3222
Taiwan: +886 2 7708 3282
United Kingdom: 800 015 9725
International: +1 6315142526
Conference ID: 2873178
A replay of the call will be available approximately 2 hours
after the conclusion of the conference call through August 23, 2016. The dial-in details for the
replay are:
United States: 1866 846
0868
Hong Kong: 800 966 697
China Mainland: 400 1842240
Singapore: 800 616 2127
Taiwan: 801 232 352
United Kingdom: 800 169 7301
Conference ID: 2873178
Additionally, a live and archived webcast of this call will be
available on the Investor Relations section of Tarena's website at
http://ir.tedu.cn.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and 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," "confident" and similar statements. Tarena may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, 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. Any statements
that are not historical facts, including the business outlook for
the third quarter of 2016 and for the full fiscal year 2016 and
statements about Tarena's beliefs and expectations, are
forward-looking statements. Many factors, risks and uncertainties
could cause actual results to differ materially from those in the
forward-looking statements. Such factors and risks include, but not
limited to the following: Tarena's goals and strategies; its future
business development, financial condition and results of
operations; its ability to continue to attract students to enroll
in its courses; its ability to continue to recruit, train and
retain qualified instructors and teaching assistants; its ability
to continually tailor its curriculum to market demand and enhance
its courses to adequately and promptly respond to developments in
the professional job market; its ability to maintain or enhance its
brand recognition, its ability to maintain high job placement rate
for its students, and its ability to maintain cooperative
relationships with financing service providers for student loans.
Further information regarding these and other risks, uncertainties
or factors is included in Tarena's filings with the U.S. Securities
and Exchange Commission. All information provided in this press
release is current as of the date of the press release, and Tarena
does not undertake any obligation to update such information,
except as required under applicable law.
About Tarena International, Inc.
Tarena International, Inc. (NASDAQ: TEDU) is a leading provider
of professional education services in China. Through its innovative education
platform combining live distance instruction, classroom-based
tutoring and online learning modules, Tarena offers professional
education courses in eleven IT subjects and three non-IT subjects.
Tarena also offers three kid education programs. Its professional
education courses provide students with practical skills to prepare
them for jobs in industries with significant growth potential and
strong hiring demand. Since its inception in 2002, Tarena has
trained over 322,000 students, cooperated with more than 600
universities and colleges and placed students with approximately
86,000 corporate employers in a variety of industries. For further
information, please visit http://ir.tedu.cn.
About Non-GAAP Financial Measures
Beginning in the first quarter of 2016, the Company revised its
non-GAAP financial measures to exclude gain or loss on derivative
instruments, goodwill impairment, impairment of intangibles via
acquisitions of businesses and the related tax impact, in addition
to its historical practice of excluding share-based compensation
expenses for non-GAAP results.
To supplement Tarena's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Tarena's management uses non-GAAP measures of
cost of revenues, operating expenses, operating income (loss), net
income (loss), and net income (loss) per ADS, which are adjusted
from results based on GAAP to exclude the share-based compensation
expenses, gain or loss on derivative instruments, goodwill
impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact. These non-GAAP financial
measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute
for, or superior to, GAAP results. In addition, calculation of the
non-GAAP financial measures may be different from the calculation
used by other companies, and therefore comparability may be
limited.
Tarena's management believes that excluding the share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact provides meaningful
supplemental information regarding our performance and liquidity by
excluding certain items identified as non-recurring and infrequent
in nature, and non-cash charges. The amount of share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact are not built into the
Company's annual budgets and quarterly forecasts, which generally
will be the basis for information Tarena provides to analysts and
investors as guidance for future operating performance.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Tarena's current financial
performance and prospects for the future. A limitation of using
non-GAAP cost of revenues, operating expenses, operating income
(loss) and net income (loss), excluding the share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact is that the share-based
compensation charge has been and will continue to be a recurring
expense in the Company's business for the foreseeable future, and
gain or loss on derivative instruments, goodwill impairment,
impairment of intangibles via acquisitions of businesses and the
related tax impact may recur in the future. In order to mitigate
these limitations the Company has provided specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
GAAP financial measures that are most directly comparable to the
non-GAAP financial measures the Company has presented.
For further information, please contact:
Helen Song
Investor Relations
Tarena International Inc.
Tel: +8610 56219451
Email: ir@tedu.cn
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
As
of
|
|
June 30
|
|
December 31
|
|
2016
|
|
2015
|
|
US$
|
|
US$
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
131,242,980
|
|
79,145,296
|
Time
deposits
|
35,000,000
|
|
69,280,200
|
Restricted time
deposits
|
—
|
|
23,099,668
|
Accounts receivable,
net of allowance for doubtful accounts
|
20,631,001
|
|
22,637,451
|
Prepaid expenses and
other current assets
|
14,367,135
|
|
10,179,811
|
Total current
assets
|
201,241,116
|
|
204,342,426
|
Time
deposits
|
16,710,351
|
|
17,590,693
|
Accounts receivable,
net of allowance for doubtful accounts
|
246,629
|
|
1,196,747
|
Property and
equipment, net
|
37,454,346
|
|
19,690,779
|
Goodwill
|
507,388
|
|
—
|
Cost-method
investments
|
3,920,859
|
|
3,695,946
|
Other non-current
assets
|
8,343,524
|
|
8,178,969
|
Total
assets
|
268,424,213
|
|
254,695,560
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,125,677
|
|
679,549
|
Amounts due to a
related party
|
82,627
|
|
135,393
|
Income taxes
payable
|
9,165,857
|
|
8,669,015
|
Deferred
revenue
|
42,152,074
|
|
25,336,265
|
Accrued expenses and
other current liabilities
|
13,736,807
|
|
12,294,473
|
Total current
liabilities
|
66,263,042
|
|
47,114,695
|
Other non-current
liabilities
|
1,232,637
|
|
1,437,238
|
Total
liabilities
|
67,495,679
|
|
48,551,933
|
|
|
|
|
Commitments and
contingencies
|
—
|
|
—
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A ordinary
shares
|
46,575
|
|
44,914
|
Class B ordinary
shares
|
10,575
|
|
10,575
|
Treasury
stock(a)
|
(11,469,370)
|
|
(7,738,834)
|
Additional paid-in
capital
|
151,534,488
|
|
144,776,619
|
Accumulated other
comprehensive loss
|
(7,670,479)
|
|
(4,905,419)
|
Retained
earnings
|
68,476,745
|
|
73,955,772
|
Total
shareholders' equity
|
200,928,534
|
|
206,143,627
|
Total liabilities
and shareholders' equity
|
268,424,213
|
|
254,695,560
|
|
|
|
|
Note:
|
|
|
|
(a) On August 20,
2015, the Board of Directors approved a share repurchase plan under
which the Company may repurchase up to US$20 million of its shares
over the next 12 months. According to the plan, the share
repurchases may be made from time to time on the open market at
prevailing market prices, in privately negotiated transactions, in
block trades and/or through other legally permissible means,
depending on market conditions and in accordance with applicable
rules and regulations. As of June 30, 2016, the Company repurchased
1,289,814 Class A ordinary shares from the open market with the
consideration of US$11,469,370.
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
For the Three Months Ended
June 30
|
|
For the Six Months Ended
June 30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Net
revenues
|
|
55,905,915
|
|
41,340,574
|
|
97,184,765
|
|
69,523,169
|
Cost of
revenues(a)
|
|
(16,669,718)
|
|
(12,755,301)
|
|
(31,366,393)
|
|
(23,709,562)
|
Gross
profit
|
|
39,236,197
|
|
28,585,273
|
|
65,818,372
|
|
45,813,607
|
Selling and marketing
expenses(a)
|
|
(19,353,754)
|
|
(16,814,932)
|
|
(36,648,880)
|
|
(28,932,771)
|
General and
administrative expenses(a)
|
|
(12,045,780)
|
|
(8,531,627)
|
|
(21,922,260)
|
|
(16,698,144)
|
Research and
development expenses(a)
|
|
(1,751,263)
|
|
(2,022,296)
|
|
(4,174,108)
|
|
(3,644,354)
|
Operating income
(loss)
|
|
6,085,400
|
|
1,216,418
|
|
3,073,124
|
|
(3,461,662)
|
Interest
income
|
|
790,745
|
|
1,321,157
|
|
2,199,221
|
|
2,833,715
|
Other
income
|
|
337,033
|
|
174,219
|
|
792,986
|
|
890,892
|
Gain/(loss) from fair
value change of foreign currency forward
|
|
1,036,464
|
|
—
|
|
(1,975,180)
|
|
—
|
Foreign exchange
gain/(loss)
|
|
(1,002,244)
|
|
574,917
|
|
(573,432)
|
|
349,780
|
Income before
income taxes
|
|
7,247,398
|
|
3,286,711
|
|
3,516,719
|
|
612,725
|
Income tax
expense
|
|
(612,172)
|
|
(420,063)
|
|
(634,203)
|
|
(244,145)
|
Net
income
|
|
6,635,226
|
|
2,866,648
|
|
2,882,516
|
|
368,580
|
Net income
attributable to Class A and Class B ordinary
shareholders
|
|
6,635,226
|
|
2,866,648
|
|
2,882,516
|
|
368,580
|
|
|
|
|
|
|
|
|
|
Net income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
|
Basic
|
|
0.12
|
|
0.05
|
|
0.05
|
|
0.01
|
Diluted
|
|
0.11
|
|
0.05
|
|
0.05
|
|
0.01
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
55,741,748
|
|
53,030,905
|
|
55,226,788
|
|
52,742,974
|
Diluted
|
|
58,622,457
|
|
58,197,687
|
|
58,438,776
|
|
57,777,628
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
6,635,226
|
|
2,866,648
|
|
2,882,516
|
|
368,580
|
Other
comprehensive income(loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
(3,367,448)
|
|
412,725
|
|
(2,765,060)
|
|
81,061
|
Comprehensive
income
|
|
3,267,778
|
|
3,279,373
|
|
117,456
|
|
449,641
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
(a)
Includes share-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
June 30
|
|
For the Six Months Ended
June 30
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Cost of
revenues
|
|
122,253
|
|
26,407
|
|
193,552
|
|
47,282
|
Selling and marketing
expenses
|
|
84,622
|
|
79,740
|
|
316,479
|
|
136,360
|
General and
administrative expenses
|
|
1,940,788
|
|
1,229,007
|
|
3,798,857
|
|
2,159,793
|
Research and
development expenses
|
|
107,445
|
|
78,183
|
|
362,954
|
|
141,703
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
|
|
|
For the Three Months Ended
June 30
|
|
For the Six Months Ended
June 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
GAAP Cost of
revenues
|
16,669,718
|
|
12,755,301
|
|
31,366,393
|
|
23,709,562
|
Share-based
compensation expense in cost of revenues
|
122,253
|
|
26,407
|
|
193,552
|
|
47,282
|
Non-GAAP Cost of
revenues
|
16,547,465
|
|
12,728,894
|
|
31,172,841
|
|
23,662,280
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
19,353,754
|
|
16,814,932
|
|
36,648,880
|
|
28,932,771
|
Share-based
compensation expense in selling and marketing expenses
|
84,622
|
|
79,740
|
|
316,479
|
|
136,360
|
Non-GAAP Selling
and marketing expenses
|
19,269,132
|
|
16,735,192
|
|
36,332,401
|
|
28,796,411
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
12,045,780
|
|
8,531,627
|
|
21,922,260
|
|
16,698,144
|
Share-based
compensation expense in general and administrative
expenses
|
1,940,788
|
|
1,229,007
|
|
3,798,857
|
|
2,159,793
|
Non-GAAP General
and administrative expenses
|
10,104,992
|
|
7,302,620
|
|
18,123,403
|
|
14,538,351
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
1,751,263
|
|
2,022,296
|
|
4,174,108
|
|
3,644,354
|
Share-based
compensation expense in research and development
expenses
|
107,445
|
|
78,183
|
|
362,954
|
|
141,703
|
Non-GAAP Research
and development expenses
|
1,643,818
|
|
1,944,113
|
|
3,811,154
|
|
3,502,651
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
6,085,400
|
|
1,216,418
|
|
3,073,124
|
|
(3,461,662)
|
Share-based
compensation expenses
|
2,255,108
|
|
1,413,337
|
|
4,671,842
|
|
2,485,138
|
Non-GAAP Operating
income (loss)
|
8,340,508
|
|
2,629,755
|
|
7,744,966
|
|
(976,524)
|
|
|
|
|
|
|
|
|
Net
income
|
6,635,226
|
|
2,866,648
|
|
2,882,516
|
|
368,580
|
Share-based
compensation expenses
|
2,255,108
|
|
1,413,337
|
|
4,671,842
|
|
2,485,138
|
(Gain)loss on foreign
currency forward contract
|
(1,036,464)
|
|
—
|
|
1,975,180
|
|
—
|
Non-GAAP Net
income
|
7,853,870
|
|
4,279,985
|
|
9,529,538
|
|
2,853,718
|
Non-GAAP net
income attributable to Class A and Class B ordinary
shareholders
|
7,853,870
|
|
4,279,985
|
|
9,529,538
|
|
2,853,718
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
0.14
|
|
0.08
|
|
0.17
|
|
0.05
|
Diluted
|
0.13
|
|
0.07
|
|
0.16
|
|
0.05
|
Weighted average
number of ordinary shares outstanding used in calculating Non-GAAP
net income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
55,741,748
|
|
53,030,905
|
|
55,226,788
|
|
52,742,974
|
Diluted
|
58,622,457
|
|
58,197,687
|
|
58,438,776
|
|
57,777,628
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(a) The Non-GAAP net
income per share is computed using Non-GAAP net income attributable
to ordinary shareholders and the same number of ordinary shares
used in GAAP basic and diluted net income per share
calculation.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-second-quarter-2016-results-300313468.html
SOURCE Tarena International, Inc.