BEIJING, Aug. 23, 2016 /PRNewswire/ -- China Distance
Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a
leading provider of online education in China focusing on professional education,
today announced unaudited financial results for the third quarter
fiscal year 2016 ended June 30,
2016.
Third Quarter Fiscal 2016 Financial and Operational
Highlights
- Total course enrollments reached 956,000, an increase of 12.5%
from the third quarter of fiscal 2015.
- Cash receipts from online course registration were $24.3 million, a 15.2% decrease from the third
quarter of fiscal 2015. Excluding the impact of the depreciation of
the Renminbi against the U.S. Dollar, cash receipts from online
course registration decreased by 10.8% year-over-year.
- Net revenue increased by 7.0% to $30.8
million from $28.8 million in
the prior year period, exceeding the Company's guidance range of
$27.3 million to $28.8 million.
Xiamen NetinNet, which was acquired in the third quarter fiscal
2016, contributed net revenue of $1.1
million in the third quarter.
- Gross profit increased by 1.0% to $17.6
million from $17.4 million in
the prior year period.
- Non-GAAP1 gross profit increased by 1.0% to
$17.6 million from $17.4 million in the prior year period.
- Gross margin was 57.1%, compared with 60.5% in the prior year
period. Non-GAAP1 gross margin was 57.2%, compared with
60.6% in the prior year period.
- Operating income increased by 1.4% to $6.0 million from $5.9
million in the prior year period.
- Non-GAAP1 operating income increased by 1.6% to
$6.5 million from $6.4 million in the prior year period.
- Net income increased by 41.2% to $7.4
million from $5.2 million in
the prior year period.
- Non-GAAP1 net income increased by 38.0% to
$7.9 million from $5.7 million in the prior year period.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.219 and $0.218, respectively, compared with basic and
diluted net income per ADS of $0.146
for the third quarter of fiscal 2015. Each ADS represents four
ordinary shares.
- Basic and diluted non-GAAP1 net income per ADS were
$0.234 and $0.233, respectively, compared with basic and
diluted non-GAAP1 net income per ADS of $0.161 and $0.160,
respectively, for the third quarter of fiscal 2015.
- Operating cash inflow decreased by 34.7% to $8.8 million from $13.5
million in the third quarter of fiscal 2015.
- Completion of acquisition of an 80% equity interest in Xiamen
NetinNet Software Co., Ltd. ("Xiamen NetinNet") for a total
consideration of RMB212.0 million
($32.5 million) in May 2016.
- Successful listing of majority-owned subsidiary, Beijing
Zhengbao Yucai Education Technology Co., Ltd. ("Zhengbao Yucai"),
on China's New Third Board in
June 2016.
1 For more
information about the non-GAAP financial measures contained in this
press release, please see "Use of Non-GAAP Financial Measures"
below.
|
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "We are pleased to report third quarter net
revenue of $30.8 million, a 7.0%
year-over-year increase, exceeding our guidance, as well as net
income of $7.4 million, a 41.2%
year-over-year increase compared with the third quarter of fiscal
2015. The primary drivers of our third quarter revenue growth
include contributions from our accounting vertical, books and
reference materials, together with our recently acquired Xiamen
NetinNet business, which performed better than our expectations
during the quarter. We look forward to the valuable contributions
from Xiamen NetinNet in the upcoming quarters."
Mr. Zhu added, "While third quarter cash receipts from online
course registration decreased by 15.2% year-over-year, we still
achieved growth in cash receipts from online course registration
for the first three quarters of fiscal year 2016 of 2.2%
year-over-year, primarily attributable to more rapid growth of our
accounting vertical during the first half of fiscal year 2016,
partially offset by the continued weak demand in our engineering
and construction (E&C) vertical and the impact of a later start
to the enrollment season for our National Pharmacist Qualification
Examination test preparation courses compared with the year-ago
period as previously disclosed. Of note, since the mid-July 2016 release of the licensed pharmacist
exam policy, we are pleased to see a significant rebound in the
cash receipts from the related courses."
He concluded, "In the third quarter, we continued to execute on
our strategic growth initiatives, including K-12 teacher continuing
education, our Open Learning Platform, mobile related products, Big
Data solutions, and our College Cooperation Program. In addition,
we were especially pleased to complete the listing of our Zhengbao
Yucai subsidiary on China's New
Third Board, the over-the-counter stock exchange, in June 2016. We anticipate the listing of Zhengbao
Yucai on the New Third Board will further enhance our brand
awareness within the China market,
and enable us to raise capital from the Chinese capital markets to
fund future growth."
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, added, "Our third quarter results
reflect solid operating execution coupled with diligent cost
control. Of note, excluding the operating results of Xiamen
NetinNet, our third quarter non-GAAP operating margin was 23.3%, up
110 basis points year-over-year, demonstrating our focus on the
profitability of our business. As we head into our fourth quarter
of fiscal 2016 (September), we will continue to balance investments
in growth initiatives while maintaining a keen focus on
profitability."
Third Quarter Fiscal 2016 Financial Results
Net Revenue. Total net revenue increased by 7.0%
to $30.8 million in the third quarter
of fiscal 2016 from $28.8 million in
the third quarter of fiscal 2015. Net revenue from online education
services, books and reference materials, and other sources
contributed 82.1%, 6.3% and 11.6%, respectively, of total net
revenues for the third quarter of fiscal 2016.
Online education services. Net revenue from online
education services was $25.3 million
in the third quarter of fiscal 2016, a 3.8% increase from
$24.4 million in the third quarter of
fiscal 2015, mainly due to revenue growth in our accounting
vertical. This increase was partially offset by decreased revenue
in healthcare and E&C verticals.
Books and reference materials. Net revenue from books and
reference materials increased by 8.1% to $1.9 million in the third quarter of fiscal 2016
from $1.8 million in the third
quarter of fiscal 2015.
Others. Net revenue from other sources increased by 35.2%
to $3.6 million in the third quarter
of fiscal 2016 from $2.6 million in
the third quarter of fiscal 2015, mainly due to our recently
acquired Xiamen NetinNet business, which contributed third quarter
fiscal 2016 revenue of $1.1
million.
Cost of Sales. Cost of sales increased by 16.1% to
$13.2 million in the third quarter of
fiscal 2016 from $11.4 million in the
third quarter of fiscal 2015. Non-GAAP1 cost of sales
increased by 16.1% to $13.2 million
in the third quarter of fiscal 2016 from $11.4 million in the third quarter of fiscal
2015. The increase was mainly due to increased salaries and related
expenses, lecture fees, cost of books and reference materials, as
well as expenses associated with our Xiamen NetinNet business.
Gross Profit. Gross profit increased by
1.0% to $17.6 million in the third
quarter of fiscal 2016 from $17.4
million in the prior year period. Non-GAAP1 gross
profit increased by 1.0% to $17.6
million in the third quarter of fiscal 2016 from
$17.4 million in the prior year
period. Gross margin was 57.1% in the third quarter of fiscal 2016,
compared with 60.5% in the third quarter of fiscal 2015.
Non-GAAP1 gross margin was 57.2% in the third quarter of
fiscal 2016, compared with 60.6% in the third quarter of fiscal
2015.
Operating Expenses. Total operating expenses
increased by 2.0% to $11.8 million in
the third quarter of fiscal 2016, from $11.5
million in the prior year period. Non-GAAP1 total
operating expenses increased by 2.0% to $11.3 million in the third quarter of fiscal
2016, from $11.1 million in the prior
year period.
Selling expenses. Selling expenses decreased by 7.0% to
$7.7 million in the third quarter of
fiscal 2016 from $8.3 million in the
prior year period. Non-GAAP1 selling expenses decreased
by 7.1% to $7.7 million in the third
quarter of fiscal 2016 from $8.2
million in the prior year period. The decrease was primarily
driven by decreased commissions for the Company's online
distributors. This decrease was partially offset by increased
salaries and related expenses, together with expenses associated
with our Xiamen NetinNet business.
General and administrative expenses. General and
administrative expenses increased by 25.0% to $4.1 million in the third quarter of fiscal 2016
from $3.3 million in the prior year
period. Non-GAAP1 general and administrative expenses
increased by 28.5% to $3.6 million in
the third quarter of fiscal 2016 from $2.8
million in the prior year period. The increase was mainly
due to increased salaries and related expenses, a decrease in
reversal of doubtful debts, due to collection, compared to the
prior-year period, as well as expenses associated with our Xiamen
NetinNet business.
Income Tax Expense. Income tax expense increased
by 32.8% to $1.8 million in the third
quarter of fiscal 2016 from $1.3
million in the prior year period, primarily due to an
increase in taxable income.
Net Income. As a result of the foregoing, net
income increased by 41.2% to $7.4
million in the third quarter of fiscal 2016 from
$5.2 million in the prior year
period. Non-GAAP1 net income increased by 38.0% to
$7.9 million in the third quarter of
fiscal 2016 from $5.7 million in the
prior year period.
Operating Cash Flow. Net operating
cash inflow decreased by 34.7% to $8.8
million in the third quarter of fiscal 2016 from
$13.5 million in the prior year
period. The operating cash inflow was mainly attributable to net
income before non-cash items generated in the third quarter of
fiscal 2016. The decrease in accounts receivable, inventories,
prepayment and other current assets also contributed to the
operating cash inflow. This operating cash inflow was partially
offset by the decrease in accrued expenses and other liabilities,
and deferred revenue.
Cash and Cash Equivalents, Term Deposits, Restricted Cash
and Short-term Investments. Cash and cash equivalents, term
deposits, restricted cash and short-term investments as of
June 30, 2016 decreased by 34.0% to
$71.9 million from $109.0 million as of March
31, 2016, mainly due to the repurchase of ADSs on the open
market of $14.4 million, the payment
of the acquisition balance for Xiamen NetinNet of $27.6 million, a long-term investment of
$0.7 million, and the capital
expenditure of $0.8 million. This
decrease was partially offset by cash flow generated from operating
activities in the third quarter of $8.8
million.
First Nine Months of Fiscal 2016 Financial
Results
Net Revenue. Total net revenue increased by 9.2%
to $79.3 million in the first nine
months of fiscal 2016 from $72.6
million in the first nine months of fiscal 2015. Net revenue
from online education services, books and reference materials, and
other sources contributed 80.0%, 6.7% and 13.3%, respectively, of
total net revenues for the first nine months of fiscal 2016.
Online education services. Net revenue from online
education services was $63.5 million
in the first nine months of fiscal 2016, an 8.2% increase from
$58.6 million in the first nine
months of fiscal 2015.
Books and reference materials. Net revenue from books and
reference materials increased by 1.9% to $5.3 million in the first nine months of fiscal
2016 from $5.2 million in the first
nine months of fiscal 2015.
Others. Net revenue from other sources increased by 20.4%
to $10.5 million in the first nine
months of fiscal 2016 from $8.7
million in the first nine months of fiscal 2015.
Cost of Sales. Cost of sales increased by 8.9% to
$35.2 million in the first nine
months of fiscal 2016 from $32.4
million in the first nine months of fiscal 2015.
Non-GAAP1 cost of sales increased by 8.9% to
$35.1 million in the first nine
months of fiscal 2016 from $32.3
million in the first nine months of fiscal 2015.
Gross Profit. Gross profit increased by
9.5% to $44.1 million in the first
nine months of fiscal 2016 from $40.2
million in the prior year period. Non-GAAP1 gross
profit increased by 9.6% to $44.2
million in the first nine months of fiscal 2016 from
$40.3 million in the prior year
period. Gross margin was 55.6% in the first nine months of fiscal
2016, compared with 55.4% in the first nine months of fiscal 2015.
Non-GAAP1 gross margin was 55.7% in the first nine
months of fiscal 2016, compared with 55.6% in the first nine months
of fiscal 2015.
Operating Expenses. Total operating expenses
increased by 4.9% to $30.3 million in
the first nine months of fiscal 2016, from $28.9 million in the prior year period.
Non-GAAP1 total operating expenses increased by 4.3% to
$28.9 million in the first nine
months of fiscal 2016, from $27.7
million in the prior year period.
Selling expenses. Selling expenses decreased by 7.6% to
$18.3 million in the first nine
months of fiscal 2016 from $19.9
million in the prior year period. Non-GAAP1
selling expenses decreased by 7.7% to $18.3
million in the first nine months of fiscal 2016 from
$19.8 million in the prior year
period.
General and administrative expenses. General and
administrative expenses increased by 32.5% to $11.9 million in the first nine months of fiscal
2016 from $9.0 million in the prior
year period. Non-GAAP1 general and administrative
expenses increased by 34.5% to $10.6
million in the first nine months of fiscal 2016 from
$7.9 million in the prior year
period.
Income Tax Expense. Income tax expense increased
by 23.9% to $3.5 million in the first
nine months of fiscal 2016 from $2.8
million in the prior year period.
Net Income. As a result of the foregoing, net
income increased by 27.2% to $14.1
million in the first nine months of fiscal 2016 from
$11.1 million in the prior year
period. Non-GAAP1 net income increased by 26.3% to
$15.6 million in the first nine
months of fiscal 2016 from $12.3
million in the prior year period.
Operating Cash Flow. Net operating cash
inflow decreased by 0.8% to $33.1
million in the first nine months of fiscal 2016 from
$33.4 million in the prior year
period.
Outlook
For the fourth quarter of fiscal 2016, the Company expects to
generate total net revenues in the range of $35.6 million to $37.4 million, representing a
year-over-year increase of approximately 0% to 5%.
For fiscal year 2016, the Company expects to generate total net
revenues in the range of $114.8 million to
$116.6 million, representing year-over-year growth of
approximately 6.2% to 7.8%. The Company's prior fiscal 2016 full
year total net revenues guidance range was $108.2 million to $113.6 million.
The above guidance reflects the Company's current and
preliminary view, which is subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time the following morning on
Wednesday, August 24, 2016
(8:00 p.m. Beijing Time on
August 24, 2016) to discuss financial
results and answer questions from investors and analysts. Listeners
may access the call by dialing:
US Toll
Free:
|
+1-866-5194-004
|
International:
|
+65-6713-5090
|
Mainland
China:
|
400-620-8038
|
Hong Kong:
|
+852-3018-6771
|
United
Kingdom:
|
+44-203-6214-779
|
Passcode:
|
CDEL or DL
|
A telephone replay will be available approximately two hours
after the call until August 31, 2016
by dialing:
US Toll
Free:
|
+1-855-4525-696
|
International:
|
+61-2-8199-0299
|
Mainland
China:
|
400-632-2162
|
Hong Kong:
|
800-963-117
|
United
Kingdom:
|
0808-234-0072
|
Replay
Passcode:
|
55990744
|
Additionally, a live and archived webcast of the conference call
will be available at http://ir.cdeledu.com.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider
of online education in China
focusing on professional education. The courses offered by the
Company through its websites are designed to help professionals
seeking to obtain and maintain professional licenses and to enhance
their job skills through our professional development courses in
China in the areas of accounting,
healthcare, engineering & construction, and other industries.
The Company also offers other professional education courses for
the national judicial examination, online test preparation courses
for self-taught learners pursuing higher education diplomas or
degrees, test preparation courses for university students intending
to take the nationwide graduate school entrance exam, and online
language courses. The Company also offers third-party developed
online courses through its Online Open Learning Platform, a
proprietary education platform that allows people to share their
educational content or deliver live courses online. For further
information, please visit http://ir.cdeledu.com.
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," "may," "should," "potential," "continue," "expect,"
"predict," "anticipate," "future," "intend," "plan," "believe,"
"is/are likely to," "estimate" and similar statements. Among other
things, the outlook for the fourth quarter of fiscal year 2016 and
fiscal year 2016 and quotations from management in this
announcement, as well as the Company's strategic and operational
plans (in particular, the anticipated benefits of CDEL's investment
in strategic growth initiatives, and listing of Zhengbao Yucai on
China's New Third Board, the
anticipated contributions from Xiamen NetinNet, and the
implementation of expense control initiatives and its intended
effect on the Company's profitability) contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its periodic and annual reports to
the 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 the Company'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: our goals and growth strategies; our future prospects
and market acceptance of the Company's courses and other products
and services; future business development and results of
operations; projected revenues, profits, earnings and other
estimated financial information; projected enrollment numbers;
plans to expand and enhance courses and other products and
services; competition in the education and test preparation
markets; and Chinese laws, regulations and policies, including
those applicable to the Internet, Internet content providers, the
education and telecommunications industries, mergers and
acquisitions, taxation and foreign exchange.
Further information regarding these and other risks is included
in the Company's annual report on Form 20-F and other documents
filed or furnished with the SEC. All information provided in this
press release is as of the date of this press release. The Company
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth in this press
release is preliminary and subject to adjustments. Adjustments to
the financial statements may be identified when audit work is
performed for the year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial results
presented in accordance with U.S. generally accepted accounting
principles, or GAAP, the Company uses the following measures
defined as non-GAAP financial measures: non-GAAP net income,
operating income, gross profit, cost of sales, selling expenses,
general and administrative expenses, net income margin, operating
margin, gross profit margin and basic and diluted earnings per ADS
and per share. 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 GAAP. For more information on these non-GAAP
financial measures, please see the table captioned "Reconciliations
of non-GAAP measures to comparable GAAP measures" set forth at the
end of this release.
The Company believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses. However, non-GAAP financial measures may not be
indicative of the Company's operating performance from a cash
perspective. The Company believes that both management and
investors benefit from these non-GAAP financial measures in
assessing its performance and when planning and forecasting future
periods. These non-GAAP financial measures also facilitate
management's internal comparisons to the Company's historical
performance and liquidity. The Company computes its non-GAAP
financial measures using the same consistent method from quarter to
quarter. The Company believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision making. A limitation of
excluding share-based compensation expenses from the
above-mentioned line items and presenting these non-GAAP measures
is that such charges may continue to be for the foreseeable future
a significant recurring expense in our business. Management
compensates for this limitation by providing specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying table at the end of this release provides more detail
on the reconciliations between GAAP financial measures that are
most directly comparable to non-GAAP financial measures.
Contacts:
China Distance
Education Holdings Limited
Investor Relations
Department
Tel: +86-10-8231-9999
ext1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
DL@tpg-ir.com
|
(Financial Tables on Following Pages)
China Distance
Education Holdings Limited
|
Consolidated
Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
September
30, 2015
|
|
June 30,
2016
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
Assets:
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
117,899
|
|
54,299
|
|
Term
deposits
|
4,720
|
|
-
|
|
Restricted
cash
|
16,312
|
|
15,600
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$680 and
US$158 as of June 30, 2016 and September 30, 2015,
respectively
|
2,800
|
|
4,373
|
|
Inventories
|
871
|
|
1,385
|
|
Prepayment and other
current assets
|
4,853
|
|
6,082
|
|
Short term
investments
|
-
|
|
2,018
|
|
Amount due from a
related party
|
103
|
|
-
|
|
Deferred tax assets,
current portion
|
1,508
|
|
1,611
|
|
Deferred
cost
|
1,163
|
|
1,145
|
|
Total
current assets
|
150,229
|
|
86,513
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Property, plant and
equipment, net
|
12,916
|
|
13,892
|
|
Goodwill
|
7,429
|
|
29,492
|
|
Long term
investments
|
-
|
|
2,539
|
|
Other intangible
assets, net
|
1,078
|
|
12,138
|
|
Deposit for purchase
of non-current assets
|
93
|
|
95
|
|
Other non-current
assets
|
2,375
|
|
2,645
|
|
Total
non-current assets
|
23,891
|
|
60,801
|
|
|
|
|
|
|
Total
assets
|
174,120
|
|
147,314
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
Current
liabilities:
|
|
|
|
|
Bank
borrowing
|
16,467
|
|
15,602
|
|
Accrued expenses and
other liabilities (including accrued expenses and other
liabilities of the consolidated VIE without recourse to China
Distance Education
Holdings Limited of US$24,132 and US$24,129 as of June 30, 2016
and
September 30, 2015, respectively)
|
25,993
|
|
27,901
|
|
Income tax payable
(including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$2,632
and
US$3,474 as of June 30, 2016 and September 30, 2015,
respectively)
|
4,453
|
|
3,959
|
|
Deferred revenue
(including deferred revenue of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$46,254
and
US$29,540 as of June 30, 2016 and September 30, 2015,
respectively)
|
29,563
|
|
46,531
|
|
Refundable fees
(including refundable fees of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$1,083
and
US$5,245 as of June 30, 2016 and September 30, 2015,
respectively)
|
5,245
|
|
1,083
|
|
Total
current liabilities
|
81,721
|
|
95,076
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Deferred tax
liabilities, non-current portion
|
1,590
|
|
3,610
|
|
Total
non-current liabilities
|
1,590
|
|
3,610
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
83,311
|
|
98,686
|
|
|
|
|
|
Equity:
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share at June 30, 2016 and September
30, 2015, respectively; Authorized –500,000,000 shares at June 30,
2016 and
September 30, 2015, respectively; Issued and outstanding –
133,290,613 and
142,406,933 shares at June 30, 2016 and September 30, 2015,
respectively)
|
14
|
|
13
|
|
Additional paid-in
capital
|
55,598
|
|
15,697
|
|
Accumulated other
comprehensive income
|
2,735
|
|
(2,986)
|
|
Retained
Earnings
|
32,462
|
|
24,404
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
90,809
|
|
37,128
|
|
Noncontrolling
interest
|
-
|
|
11,500
|
|
Total
equity
|
90,809
|
|
48,628
|
|
Total
liabilities and equity
|
174,120
|
|
147,314
|
|
|
|
|
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Three Months
Ended June 30,
|
|
2015
|
|
2016
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
Online
education services
|
24,353
|
|
25,279
|
Books and
reference materials
|
1,796
|
|
1,942
|
Others
|
2,643
|
|
3,573
|
Total net revenues
|
28,792
|
|
30,794
|
|
|
|
|
Cost of
sales
|
|
|
|
Cost of
services
|
(10,415)
|
|
(11,548)
|
Cost of
tangible goods sold
|
(972)
|
|
(1,670)
|
Total cost of sales
|
(11,387)
|
|
(13,218)
|
|
|
|
|
Gross
profit
|
17,405
|
|
17,576
|
|
|
|
|
Operating
expenses
|
|
|
|
Selling
expenses
|
(8,253)
|
|
(7,674)
|
General
and administrative expenses
|
(3,265)
|
|
(4,080)
|
Total operating expenses
|
(11,518)
|
|
(11,754)
|
Other operating
income
|
13
|
|
163
|
|
|
|
|
Operating
income
|
5,900
|
|
5,985
|
|
|
|
|
Interest
income
|
810
|
|
370
|
Interest
expense
|
(121)
|
|
(136)
|
Exchange
gain
|
-
|
|
2,778
|
|
|
|
|
Income
before income taxes
|
6,589
|
|
8,997
|
Less: Income tax
expense
|
(1,340)
|
|
(1,779)
|
|
|
|
|
Net
income
|
5,249
|
|
7,218
|
Net income
attributable to noncontrolling interest
|
-
|
|
196
|
Net
income attributable to China Distance Education
Holdings Limited
|
5,249
|
|
7,414
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
Basic
|
0.037
|
|
0.055
|
Diluted
|
0.037
|
|
0.055
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
Basic
|
0.146
|
|
0.219
|
Diluted
|
0.146
|
|
0.218
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
Basic
|
142,755,463
|
|
135,084,505
|
Diluted
|
143,807,344
|
|
135,942,921
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Nine Months
Ended June 30,
|
|
2015
|
|
2016
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
Online
education services
|
58,642
|
|
63,468
|
Books and
reference materials
|
5,211
|
|
5,312
|
Others
|
8,745
|
|
10,528
|
Total net revenues
|
72,598
|
|
79,308
|
|
|
|
|
Cost of
sales
|
|
|
|
Cost of
services
|
(29,557)
|
|
(31,960)
|
Cost of
tangible goods sold
|
(2,816)
|
|
(3,288)
|
Total cost of sales
|
(32,373)
|
|
(35,248)
|
|
|
|
|
Gross
profit
|
40,225
|
|
44,060
|
|
|
|
|
Operating
expenses
|
|
|
|
Selling
expenses
|
(19,850)
|
|
(18,342)
|
General
and administrative expenses
|
(9,011)
|
|
(11,937)
|
Total operating expenses
|
(28,861)
|
|
(30,279)
|
Other operating
income
|
210
|
|
361
|
|
|
|
|
Operating
income
|
11,574
|
|
14,142
|
|
|
|
|
Interest
income
|
2,417
|
|
1,764
|
Interest
expense
|
(316)
|
|
(436)
|
Exchange
gain
|
205
|
|
2,219
|
|
|
|
|
Income
before income taxes
|
13,880
|
|
17,689
|
Less: Income tax
expense
|
(2,822)
|
|
(3,497)
|
|
|
|
|
Net
income
|
11,058
|
|
14,192
|
Net income
attributable to noncontrolling interest
|
-
|
|
(127)
|
Net
income attributable to China Distance Education
Holdings Limited
|
11,058
|
|
14,065
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
Basic
|
0.077
|
|
0.101
|
Diluted
|
0.076
|
|
0.101
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
Basic
|
0.309
|
|
0.406
|
Diluted
|
0.305
|
|
0.403
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
Basic
|
142,725,128
|
|
138,127,626
|
Diluted
|
144,883,392
|
|
139,748,542
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
2015
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
11,387
|
|
13,218
|
Share-based
compensation expense in cost of sales
|
|
36
|
|
40
|
Non-GAAP cost of
sales
|
|
11,351
|
|
13,178
|
|
|
|
|
|
Selling
expenses
|
|
8,253
|
|
7,674
|
Share-based
compensation expense in selling expenses
|
|
18
|
|
21
|
Non-GAAP selling
expenses
|
|
8,235
|
|
7,653
|
|
|
|
|
|
General and
administrative expenses
|
|
3,265
|
|
4,080
|
Share-based
compensation expense in general and administrative
expenses
|
|
433
|
|
440
|
Non-GAAP general and
administrative expenses
|
|
2,832
|
|
3,640
|
|
|
|
|
|
Gross
profit
|
|
17,405
|
|
17,576
|
Share-based
compensation expenses
|
|
36
|
|
40
|
Non-GAAP gross
profit
|
|
17,441
|
|
17,616
|
|
|
|
|
|
Gross profit
margin
|
|
60.5%
|
|
57.1%
|
Non-GAAP gross profit
margin
|
|
60.6%
|
|
57.2%
|
|
|
|
|
|
Operating
income
|
|
5,900
|
|
5,985
|
Share-based
compensation expenses
|
|
487
|
|
501
|
Non-GAAP operating
income
|
|
6,387
|
|
6,486
|
|
|
|
|
|
Operating
margin
|
|
20.5%
|
|
19.4%
|
Non-GAAP operating
margin
|
|
22.2%
|
|
21.1%
|
|
|
|
|
|
Net income
|
|
5,249
|
|
7,414
|
Share-based
compensation expense
|
|
487
|
|
501
|
Non-GAAP net
income
|
|
5,736
|
|
7,915
|
|
|
|
|
|
Net income
margin
|
|
18.2%
|
|
24.1%
|
Non-GAAP net income
margin
|
|
19.9%
|
|
25.7%
|
|
|
|
|
|
Net income per
share -- basic
|
|
0.037
|
|
0.055
|
Net income per
share -- diluted
|
|
0.037
|
|
0.055
|
Non-GAAP net income
per share -- basic
|
|
0.040
|
|
0.059
|
Non-GAAP net income
per share -- diluted
|
|
0.040
|
|
0.058
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders -- basic (note 1)
|
|
0.146
|
|
0.219
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders -- diluted (note
1)
|
|
0.146
|
|
0.218
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders -- basic
(note 1)
|
|
0.161
|
|
0.234
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders -- diluted
(note 1)
|
|
0.160
|
|
0.233
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
142,755,463
|
|
135,084,505
|
Weighted average
shares used in calculating diluted net income per share
|
|
143,807,344
|
|
135,942,921
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
142,755,463
|
|
135,084,505
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
143,807,344
|
|
135,942,921
|
|
|
|
|
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Nine Months
Ended June 30,
|
|
|
2015
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
32,373
|
|
35,248
|
Share-based
compensation expense in cost of sales
|
|
104
|
|
122
|
Non-GAAP cost of
sales
|
|
32,269
|
|
35,126
|
|
|
|
|
|
Selling
expenses
|
|
19,850
|
|
18,342
|
Share-based
compensation expense in selling expenses
|
|
53
|
|
63
|
Non-GAAP selling
expenses
|
|
19,797
|
|
18,279
|
|
|
|
|
|
General and
administrative expenses
|
|
9,011
|
|
11,937
|
Share-based
compensation expense in general and administrative
expenses
|
|
1,123
|
|
1,328
|
Non-GAAP general and
administrative expenses
|
|
7,888
|
|
10,609
|
|
|
|
|
|
Gross
profit
|
|
40,225
|
|
44,060
|
Share-based
compensation expenses
|
|
104
|
|
122
|
Non-GAAP gross
profit
|
|
40,329
|
|
44,182
|
|
|
|
|
|
Gross profit
margin
|
|
55.4%
|
|
55.6%
|
Non-GAAP gross profit
margin
|
|
55.6%
|
|
55.7%
|
|
|
|
|
|
Operating
income
|
|
11,574
|
|
14,142
|
Share-based
compensation expenses
|
|
1,280
|
|
1,513
|
Non-GAAP operating
income
|
|
12,854
|
|
15,655
|
|
|
|
|
|
Operating
margin
|
|
15.9%
|
|
17.8%
|
Non-GAAP operating
margin
|
|
17.7%
|
|
19.7%
|
|
|
|
|
|
Net income
|
|
11,058
|
|
14,065
|
Share-based
compensation expense
|
|
1,280
|
|
1,513
|
Non-GAAP net
income
|
|
12,338
|
|
15,578
|
|
|
|
|
|
Net income
margin
|
|
15.2%
|
|
17.7%
|
Non-GAAP net income
margin
|
|
17.0%
|
|
19.6%
|
|
|
|
|
|
Net income per
share -- basic
|
|
0.077
|
|
0.101
|
Net income per
share -- diluted
|
|
0.076
|
|
0.101
|
Non-GAAP net income
per share -- basic
|
|
0.086
|
|
0.113
|
Non-GAAP net income
per share -- diluted
|
|
0.085
|
|
0.111
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders -- basic (note
1)
|
|
0.309
|
|
0.406
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders -- diluted (note
1)
|
|
0.305
|
|
0.403
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders -- basic
(note 1)
|
|
0.346
|
|
0.451
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders -- diluted
(note 1)
|
|
0.341
|
|
0.446
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
142,725,128
|
|
138,127,626
|
Weighted average
shares used in calculating diluted net income per share
|
|
144,883,392
|
|
139,748,542
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
142,725,128
|
|
138,127,626
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
144,883,392
|
|
139,748,542
|
|
Note 1: Each ADS
represents four ordinary shares
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-third-quarter-fiscal-2016-financial-results-300316992.html
SOURCE China Distance Education Holdings Limited