iKang Healthcare Group, Inc. (“iKang” or the “Company”)
(Nasdaq:KANG), the largest provider in China’s fast growing private
preventive healthcare services market with a market share of 13.6%
in terms of revenue in calendar year 2014, today announced its
unaudited financial results for the second quarter ended September
30, 2016.
Fiscal Second Quarter Ended September
30, 2016 Financial Highlights
- Net revenues were US$119.7 million, an increase of 21.4%
year-over-year (an increase of 28.3% on RMB basis) (1)
- Gross profit was US$54.1 million, an increase of 19.0%
year-over-year (an increase of 25.8% on RMB basis) (1)
- Net income attributable to the Company was US$5.9 million,
a decrease of 49.1% year-over-year (a decrease of 46.1% on RMB
basis) (1)
- Non-GAAP net income attributable to the
Company(2) was US$6.4 million, a decrease of 47.1%
year-over-year (a decrease of 44.1% on RMB basis)
(1)
- Basic and diluted income per ADS attributable to common
shareholders were US$0.09 and US$0.09, respectively, as
compared to US$0.17 and US$0.17, respectively, in the
fiscal second quarter of 2015
- Non-GAAP basic and diluted income per ADS(3) attributable
to common shareholders were US$0.09 and US$0.09,
respectively, as compared to US$0.18 and US$0.17,
respectively, in the fiscal second quarter of 2015
First Fiscal Six Months ended September 30,
2016 Financial Highlights
- Net revenues were US$221.0 million, an increase of 19.5%
year-over-year (an increase of 26.1% on RMB basis) (1)
- Gross profit was US$98.9 million, an increase of 12.8%
year-over-year (an increase of 19.1% on RMB basis) (1)
- Net income attributable to the Company was US$8.0 million,
a decrease of 64.2% year-over-year (a decrease of 62.0% on RMB
basis) (1)
- Non-GAAP net income attributable to the
Company(2) was US$9.0 million, a decline of 61.5%
year-over-year (a decrease of 59.2% on RMB basis) (1)
- Basic and diluted income per ADS attributable to common
shareholders were US$0.12 and US$0.12, respectively,
as compared to US$0.32 and US$0.32, respectively, in the
first fiscal six months of 2015
- Non-GAAP basic and diluted income per ADS(3) attributable
to common shareholders were US$0.13 and US$0.13,
respectively, as compared to US$0.34 and US$0.33,
respectively, in the first fiscal six months of 2015
(1) RMB basis refers to the year on year
comparison made on local currency – Chinese Renminbi basis.(2)
Non-GAAP net income attributable to the Company is defined as net
income attributable to the Company excluding share-based
compensation expenses. For more information on these non-GAAP
financial measures, please see the section captioned under
“Non-GAAP Financial Measures” and the tables captioned
“Reconciliation of GAAP and Non-GAAP Results” set forth at the end
of this release.(3) Non-GAAP basic and diluted earnings per ADS is
defined as non-GAAP net income divided by the weighted average
number of basic and diluted ADS.
Mr. Lee Ligang Zhang, Chairman and Chief
Executive Officer of iKang, commented on the results. “iKang’s
growth continues its positive trend with year-over-year revenue
growth achieving 21.4% (an increase of 28.3% on RMB basis)
(1) for fiscal second quarter of 2016. We are pleased with our
performance to date and look forward to continuing the growth for
the remainder of fiscal 2016.”
“The revenue growth this quarter has primarily
been driven by the continuous investment to expand our geographical
coverage and deepen market penetration in high growth tier two and
three cities. Compared to September 30, 2015, we have added 18 new
medical centers and expanded into six new cities – Foshan, Xi’an,
Ningbo, Wuhu, Guiyang and Jinan, bringing our network to 95 medical
centers as of September 30, 2016. We expect that 11 more new
self-built medical centers will commence operation by the end of
the fiscal year ending March 31, 2017. Although our net margin was
affected by the accelerated expansion to new cities as well as the
one-time cost associated with the ongoing privatization, we have
strong confidence that our focus on building new capacity and
capabilities in existing and new cities will yield pleasing results
in the years ahead.”
Mr. Zhang concluded, “In spite of the
uncertainties surrounding the privatization, the management remains
unwavering in their commitment and focus on strategic priorities of
building a sustainable and long-term business that capitalizes on
China’s fast growing private preventive healthcare sector. We
believe that our growth strategy will lead us to solid and
continued growth in fiscal 2016 and beyond.”
FISCAL SECOND QUARTER ENDED SEPTEMBER 30, 2016 UNAUDITED
FINANCIAL RESULTS
Net RevenuesNet revenues for the fiscal
second quarter were US$119.7 million, representing a 21.4%
increase from US$98.6 million in the same period of the
last fiscal year. On RMB basis, the revenue growth was 28.3%.
As of September 30, 2016, the number of self-owned medical
centers totaled 95 compared to 77 as of September 30, 2015. In
the quarter, the Company served approximately a total of 1.59
million customer visits under both corporate and individual
programs, representing an increase of 27.9% over the fiscal second
quarter of 2015.
The table below sets forth a breakdown of net revenues:
(US$ million) |
2nd Fiscal Quarter Ended
September 30, 2016 |
2nd Fiscal Quarter Ended
September 30, 2015 |
YoY % Change |
Medical Examinations |
100.1 |
83.6 |
|
19.8 |
% |
Disease Screening |
9.1 |
7.0 |
|
28.4 |
% |
Dental Services |
2.4 |
1.6 |
|
55.1 |
% |
Other Services |
8.1 |
6.4 |
|
26.7 |
% |
Total |
119.7 |
98.6 |
|
21.4 |
% |
Medical Examinations: Net revenues for the
quarter were US$100.1 million, representing a 19.8% increase
from US$83.6 million in the same period of the last
fiscal year, which was in line with the increase in the number of
visits.
Disease Screening: Net revenues for the
quarter were US$9.1 million, representing a 28.4% increase
from US$7.0 million in the same period of the last fiscal
year. Disease screening services refer to the additional services
requested by individuals under the basic corporate medical
examination programs as a result of individual needs.
Dental Services: Net revenues for the
quarter were US$2.4 million, representing a 55.1% increase
from US$1.6 million in the same period of the last fiscal
year.
Other Services: Net revenues for the
quarter were US$8.1 million, representing a 26.7% increase
from US$6.4 million in the same period of the last fiscal
year.
Cost of RevenuesCost of
revenues for the quarter was US$65.6 million, representing a
23.5% increase from US$53.2 million in the same period of
the last fiscal year.
Gross Profit and Gross
MarginGross profit for the quarter was US$54.1
million, representing a 19.0% increase from US$45.5
million in the same period of the last fiscal year. Gross
margin for the quarter was 45.2%, as compared to 46.1% in the
second quarter of the last fiscal year. Gross margin was diluted
mainly due to the addition of newly acquired and self-built medical
centers which have lower gross margins due to the ramp up.
Operating ExpensesTotal
operating expenses for the quarter were US$39.8 million,
representing a 34.9% increase from US$29.5 million in the
same period of the last fiscal year.
Selling and marketing expensesSelling and
marketing expenses for the quarter were US$16.6 million,
accounting for 13.9% of total net revenues as compared to 14.7% in
the same period of the last fiscal year.
General and administrative expensesGeneral and
administrative expenses for the quarter were US$22.4 million,
accounting for 18.7% of total net revenues as compared to 14.3% in
the same period of the last fiscal year. The increase was
mainly due to payroll and rental costs increases, which were
associated with our expansion into new geographic areas, and the
professional service expenses relating to the privatization.
Research and development expensesResearch and
development expenses for the quarter were US$750,000,
accounting for 0.6% of total net revenues as compared to 1.0% in
the same period of the last fiscal year.
Income from OperationsIncome
from operations for the quarter was US$14.3 million,
representing a 10.5% decrease from US$16.0 million in the
same period of the last fiscal year. Excluding share-based
compensation expenses of US$489,000 for both this quarter and
the same quarter last year, non-GAAP income from operations for the
quarter was US$14.8 million as compared to US$16.5
million, which reflected a decline of 10.1% as a result of diluted
gross margin and an increase in operating expenses.
Net
Income Net income
attributable to the Company for the quarter was US$5.9
million, representing a decrease of 49.1% from US$11.6
million for the same period in the last fiscal year.
Non-GAAP net income for the quarter
was US$6.4 million, representing a decrease of 47.1%
from US$12.1 million for the same period in the last
fiscal year.
Basic and Diluted Earnings per
ADSBasic and diluted income per ADS attributable to common
shareholders were US$0.09 and US$0.09, respectively, as compared to
US$0.17 and US$0.17, respectively, in the fiscal second quarter of
2015.
Non-GAAP basic and diluted income per ADS attributable to common
shareholders were US$0.09 and US$0.09, respectively, as compared to
US$0.18 and US$0.17, respectively, in the fiscal second quarter of
2015. FIRST FISCAL SIX MONTHS ENDED SEPTEMBER 30,
2015 UNAUDITED FINANCIAL RESULTS
Net RevenuesNet revenues for the first
fiscal six months were US$221.0 million, representing a 19.5%
increase from US$184.9 million in the same period in the
last fiscal year. On RMB basis, the revenue growth was
26.1%. From the beginning of year, we have in total added nine
new medical centers, of which two were acquired. During this
period, the Company served approximately a total of 2.86 million
customer visits under both corporate and individual programs,
representing an increase of 25.2% over the first fiscal six months
of 2015.
The table below sets forth a breakdown of net
revenues:
(US$ million) |
Fiscal Six Months Ended
September 30, 2016 |
Fiscal Six Months Ended
September 30, 2015 |
YoY % Change |
Medical Examinations |
185.1 |
155.6 |
|
19.0 |
% |
Disease Screening |
16.3 |
12.5 |
|
30.1 |
% |
Dental Services |
3.7 |
3.1 |
|
19.1 |
% |
Other Services |
15.9 |
13.7 |
|
15.9 |
% |
Total |
221.0 |
184.9 |
|
19.5 |
% |
Medical Examinations: Net revenues for the
period were US$185.1 million, representing a 19.0% increase
from US$155.6 million in the same period of last fiscal
year. The strong performance was primarily due to an increase of
25.2% in the number of customer visits for medical examinations
during the period while the blended average selling price remained
stable around RMB450.
Disease Screening: Net revenues for the
period were US$16.3 million, representing a 30.1% increase
from US$12.5 million in the same period of last fiscal
year.
Dental Services: Net revenues for the
period were US$3.7 million, representing a 19.1% increase
from US$3.1 million in the same period in the last fiscal
year.
Other Services: Net revenues for the period
were US$15.9 million, representing a 15.9% increase
from US$13.7 million in the same period in the last
fiscal year.
Cost of RevenuesCost of
revenues for the period was US$122.1 million, representing a
25.5% increase from US$97.3 million in the same period in
the last fiscal year.
Gross Profit and Gross
MarginGross profit for the period was US$98.9
million, representing a 12.8% increase from US$87.6
million in the same period in the last fiscal year. Gross
margin for the period was 44.7%, as compared to 47.4% in the same
period of the last fiscal year. Gross margin was diluted
mainly due to the additions of newly acquired and self-built
medical centers which has lower gross margin due to the ramp
up.
Operating ExpensesTotal
operating expenses for the period were US$77.7 million,
representing a 35.8% increase from US$57.2 million in the
same period in the last fiscal year.
Selling and marketing expensesSelling and
marketing expenses for the period were US$34.9 million,
accounting for 15.8% of total net revenues as compared to 15.4% in
the same period in the last fiscal year.
General and administrative expensesGeneral and
administrative expenses for the period were US$41.1 million,
accounting for 18.6% of total net revenues as compared to 14.6% in
the same period in the last fiscal year. The increase was mainly
due to payroll and rental costs increases, which were associated
with our expansion into new geographic areas, and the professional
service expenses relating to the privatization.
Research and development expensesResearch and
development expenses for the period were US$1.6 million,
accounting for 0.7% of total net revenues as compared to 0.9% in
the same period in the last fiscal year.
Income from OperationsIncome
from operations for the period was US$21.2 million,
representing a 30.4% decrease from US$30.4 million in the
same period in the last fiscal year. Excluding share-based
compensation expenses of US$973,000 for this period
and US$981,000 for the same period last year, non-GAAP
income from operations for the period was US22.1 million as
compared to US$31.4 million, which reflected a decline of
29.5%.
Net
Income Net income
attributable to the Company for the period was US$8.0 million,
representing a decrease of 64.2% from US$22.3 million for
the same period in the last fiscal year.
Non-GAAP net income for the period
was US$9.0 million, representing a decline of 61.5%
from US$23.3 million for the same period in the last
fiscal year.
Basic and Diluted Earnings per
ADSBasic and diluted income per ADS attributable to common
shareholders were US$0.12 and US$0.12, respectively, as compared to
US$0.32 and US$0.32, respectively, in the first fiscal six months
of 2015.
Non-GAAP basic and diluted income per ADS
attributable to common shareholders were US$0.13 and US$0.13,
respectively, as compared to US$0.34 and US$0.33, respectively, in
the first fiscal six months of 2015.
Cash and Working CapitalAs of
September 30, 2016, the Company’s cash and cash equivalents and
restricted cash totaled US$72.0 million, as compared to US$89.9
million as of June 30, 2016.
The net working capital was totaled US$63.6
million as of September 30, 2016, with current assets of totaled
US$275.7 million and current liabilities of totaled US$212.2
million, compared to net working capital of US$90.9 million as of
June 30, 2016.
Conference Call
iKang’s management will host a conference call at 8:00
am US Eastern Time (9:00 pm Beijing/Hong Kong Time) on
December 2, 2016, to discuss its quarterly results and recent
business activities.
To participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call
time:
China: |
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4001-200-539 |
Hong Kong: |
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800-905-927 |
United States: |
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1855-298-3404 |
International: |
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+65 6823-2299 |
Passcode: |
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7538185 |
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The Company will also broadcast a live audio webcast of the
conference call. The webcast will be available at
http://ir.ikang.com.
Following the earnings conference call, an archive of the call
will be available by dialing:
China: |
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4001-842-240 |
Hong Kong: |
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800-966-697 |
United States: |
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1866-846-0868 |
International: |
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+61-2-9641-7900 |
Replay Passcode: |
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7538185 |
Replay End Date: |
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December 16, 2016 |
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STATEMENT REGARDING UNAUDITED FINANCIAL
INFORMATION
The unaudited financial information set forth
above is subject to adjustments that may be identified when audit
work is performed on the Company’s year-end financial statements,
which could result in significant differences from this unaudited
financial information.
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial
statements which are presented in accordance with U.S. GAAP, we
also use non-GAAP operating income, non-GAAP net income and
non-GAAP EBITDA as additional non-GAAP financial measures. We
present these non-GAAP financial measures because they are used by
our management to evaluate our operating performance. We also
believe that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
our consolidated results of operations in the same manner as our
management and in comparing financial results across accounting
periods and to those of our peer companies.
Reconciliation of non-GAAP operating income,
non-GAAP net income and non-GAAP EBITDA to the most directly
comparable financial measures calculated and presented in
accordance with U.S. GAAP is set forth at the end of this
release.
About iKang Healthcare Group,
Inc.iKang Healthcare Group, Inc. is the largest provider
in China’s fast growing private preventive healthcare services
market, accounting for approximately 13.6% of market share in terms
of revenue in calendar year 2014.
Through iKang’s integrated service platform and
established nationwide network of medical centers and third-party
service provider facilities, the Company provides comprehensive and
high quality preventive healthcare solutions, including a wide
range of medical examination services and value-added services
including disease screening and other services. iKang’s customers
are primarily corporate customers who contract with the Company to
provide medical examination services to their employees and
clients, and pay for these services at pre-negotiated prices. iKang
also directly markets its services to individual customers. In the
fiscal year ended March 31, 2016, the Company served a total of 4.6
million customer visits under both corporate and individual
programs.
As of December 1, 2016, iKang’s nationwide
network consisted of 96(1) self-owned centers covering 28 of the
most affluent cities in China, namely Beijing, Shanghai, Guangzhou,
Shenzhen, Chongqing, Tianjin, Nanjing, Suzhou, Hangzhou, Chengdu,
Fuzhou, Changchun, Jiangyin, Changzhou, Wuhan, Changsha, Yantai,
Yinchuan, Weihai, Weifang, Shenyang, Xi’an, Wuhu, Guiyang, Ningbo,
Jinan and Foshan as well as Hong Kong. The Company has also
supplemented its self-owned medical center network by contracting
with approximately 400 third-party service provider facilities in
over 150 cities, which include select independent medical
examination centers and hospitals across all of China’s provinces,
creating a nationwide network that allows iKang to serve its
customers in markets where it does not have self-owned medical
centers.
(1) Among the 96 self-owned medical centers, 2
medical centers are currently operated primarily by the minority
shareholders of these medical centers or their parent company.
Forward-looking StatementsThis press release
contains forward-looking statements. These statements, including
management quotes and business outlook, 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,” "estimate," "project," "predict,"
"believe," "expect," "anticipate," "intend," "potential," "plan,"
"goal" and similar statements. iKang may also make written or
oral forward-looking statements in its periodic reports 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. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
These forward-looking statements include, but are not limited to,
statements about: the Company’s goals and strategies; its future
business development, financial condition and results of
operations; its ability to retain and grow its customer base and
network of medical centers; the growth of, and trends in, the
markets for its services in China; the demand for and market
acceptance of its brand and services; competition in its industry
in China; relevant government policies and regulations relating to
the corporate structure, business and industry; fluctuations in
general economic and business conditions in China. Further
information regarding these and other risks is included in iKang’s
filing with the Securities and Exchange Commission. iKang
undertakes no duty to update any forward-looking statement as a
result of new information, future events or otherwise, except as
required under applicable law.
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IKANG HEALTHCARE GROUP, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands of US dollars, except share data
and per share data) |
(Unaudited) |
|
|
|
|
|
As of |
|
As of |
|
March 31, |
|
September 30, |
|
2016 |
|
2016 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
108,111 |
|
$ |
71,982 |
Restricted cash |
|
31,836 |
|
|
- |
Term
deposits |
|
12,202 |
|
|
- |
Accounts
receivable, net of allowance for doubtful accounts of $14,329 |
|
74,163 |
|
|
120,034 |
and $16,596 as of March 31, 2016 and September 30, 2016,
respectively |
|
|
|
Inventories |
|
4,015 |
|
|
4,783 |
Deferred
tax assets-current |
|
8,064 |
|
|
8,716 |
Amount
due from a related party |
|
4,653 |
|
|
5,019 |
Prepaid
expenses and other current assets |
|
62,659 |
|
|
65,205 |
|
|
|
|
Total current
assets |
$ |
305,703 |
|
$ |
275,739 |
|
|
|
|
Property and equipment,
net |
$ |
130,170 |
|
$ |
144,673 |
Acquired intangible
assets, net |
|
37,179 |
|
|
31,244 |
Goodwill |
|
108,839 |
|
|
110,323 |
Long-term
investments |
|
200,108 |
|
|
191,881 |
Deferred tax
assets-non-current |
|
8,077 |
|
|
10,571 |
Rental deposit and
other non-current assets |
|
13,565 |
|
|
15,740 |
|
|
|
|
TOTAL ASSETS |
$ |
803,641 |
|
$ |
780,171 |
|
|
|
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LIABILITIES, MEZZANINE
EQUITY AND EQUITY (DEFICIT) |
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Current
liabilities: |
|
|
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Accounts
payable (including accounts payable of the consolidated VIEs |
|
|
|
without recourse to iKang Healthcare Group, Inc. of
$22,685 |
|
|
|
and $ 33,018 as of March 31, 2016 and September 30, 2016,
respectively) |
$ |
28,135 |
|
$ |
39,078 |
Accrued
expenses and other current liabilities (including accrued
expenses |
|
|
|
and other current liabilities of the consolidated VIEs
without recourse |
|
|
|
to iKang Healthcare Group, Inc. of $41,319 and $42,714 as of
March 31, 2016 |
|
|
|
and September 30, 2016, respectively) |
|
47,404 |
|
|
49,617 |
Income
tax payable (including income tax payable of the consolidated
VIEs |
|
|
|
without recourse to iKang Healthcare Group, Inc. of $7,386
and |
|
|
|
$8,986 as of March 31, 2016 and September 30, 2016,
respectively) |
|
8,216 |
|
|
11,651 |
Deferred
revenues (including deferred revenues of the consolidated VIEs |
|
|
|
without recourse to iKang Healthcare Group, Inc. of $52,210
and |
|
|
|
$59,469 as of March 31, 2016 and September 30, 2016,
respectively) |
|
61,881 |
|
|
66,855 |
Short
term borrowings (including short term borrowings of the
consolidated |
|
|
|
VIEs without recourse to iKang Healthcare Group, Inc. of
$53,364 |
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and $44,988 as of March 31, 2016 and September 30, 2016,
respectively) |
|
53,364 |
|
|
44,988 |
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|
|
|
Total current
liabilities |
$ |
199,000 |
|
$ |
212,189 |
|
|
|
|
Long-term borrowings
(including long term borrowings of the consolidated |
|
|
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VIEs and
VIEs’ subsidiaries without recourse to iKang Healthcare Group,
Inc. |
|
|
|
of
$229,467 and $197,661 as of March 31, 2016 and September 30, 2016,
respectively) |
|
229,467 |
|
|
197,661 |
Deferred tax
liabilities-non-current (including deferred tax liabilities |
|
|
|
non-current of the consolidated VIEs without recourse to
iKang |
|
|
|
Healthcare
Group, Inc. of $9,422 and $8,249 as of March 31, 2016 and |
|
|
|
September
30, 2016, respectively) |
|
9,772 |
|
|
8,509 |
|
|
|
|
TOTAL LIABILITIES |
$ |
438,239 |
|
$ |
418,359 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
Total
iKang Healthcare Group, Inc. shareholders' equity |
|
342,826 |
|
|
339,057 |
Non-controlling interests |
|
22,576 |
|
|
22,755 |
|
|
|
|
TOTAL EQUITY |
|
365,402 |
|
|
361,812 |
|
|
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
803,641 |
|
$ |
780,171 |
|
|
|
|
IKANG HEALTHCARE GROUP, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands of US dollars, except share data
and per share data) |
(Unaudited) |
|
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|
Three-month periods |
|
Six-month periods |
|
ended September 30 |
|
ended September 30 |
|
2015 |
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2016 |
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2015 |
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2016 |
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|
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
98,642 |
|
|
|
$ |
119,749 |
|
|
|
$ |
184,939 |
|
|
|
$ |
220,987 |
|
Cost of revenues |
|
53,152 |
|
|
|
|
65,628 |
|
|
|
|
97,304 |
|
|
|
|
122,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ |
45,490 |
|
|
|
$ |
54,121 |
|
|
|
$ |
87,635 |
|
|
|
$ |
98,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Selling
and marketing expenses |
$ |
14,453 |
|
|
|
$ |
16,624 |
|
|
|
$ |
28,484 |
|
|
|
$ |
34,925 |
|
General
and administrative expenses |
|
14,101 |
|
|
|
|
22,443 |
|
|
|
|
27,068 |
|
|
|
|
41,145 |
|
Research
and development expenses |
|
961 |
|
|
|
|
750 |
|
|
|
|
1,678 |
|
|
|
|
1,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses |
$ |
29,515 |
|
|
|
$ |
39,817 |
|
|
|
$ |
57,230 |
|
|
|
$ |
77,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
$ |
15,975 |
|
|
|
$ |
14,304 |
|
|
|
$ |
30,405 |
|
|
|
$ |
21,150 |
|
Interest expense |
|
393 |
|
|
|
|
3,082 |
|
|
|
|
789 |
|
|
|
|
6,363 |
|
Interest income |
|
108 |
|
|
|
|
237 |
|
|
|
|
294 |
|
|
|
|
613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expenses and loss from |
|
|
|
|
equity
method investments |
$ |
15,690 |
|
|
|
$ |
11,459 |
|
|
|
$ |
29,910 |
|
|
|
$ |
15,400 |
|
Income tax
expenses |
|
4,174 |
|
|
|
|
2,865 |
|
|
|
|
7,957 |
|
|
|
|
3,850 |
|
Loss from equity method
investments |
|
- |
|
|
|
|
(2,125 |
) |
|
|
|
- |
|
|
|
|
(3,162 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11,516 |
|
|
|
$ |
6,469 |
|
|
|
$ |
21,953 |
|
|
|
$ |
8,388 |
|
Less: Net (loss)/income
attributable to non-controlling interest |
|
(107 |
) |
|
|
|
548 |
|
|
|
|
(332 |
) |
|
|
|
401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to iKang Healthcare Group, Inc. |
$ |
11,623 |
|
|
|
$ |
5,921 |
|
|
|
$ |
22,285 |
|
|
|
$ |
7,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders |
|
|
|
|
of iKang
Healthcare Group, Inc. |
$ |
11,623 |
|
|
|
$ |
5,921 |
|
|
|
$ |
22,285 |
|
|
|
$ |
7,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common shareholders |
|
|
|
|
of iKang
Healthcare Group, Inc. |
|
|
|
|
Basic |
$ |
0.34 |
|
|
|
$ |
0.17 |
|
|
|
$ |
0.65 |
|
|
|
$ |
0.24 |
|
Diluted |
$ |
0.33 |
|
|
|
$ |
0.17 |
|
|
|
$ |
0.63 |
|
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS (one
common share equals to two ADSs) |
|
|
|
|
Basic |
$ |
0.17 |
|
|
|
$ |
0.09 |
|
|
|
$ |
0.32 |
|
|
|
$ |
0.12 |
|
Diluted |
$ |
0.17 |
|
|
|
$ |
0.09 |
|
|
|
$ |
0.32 |
|
|
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in calculating net income |
|
|
|
|
per common
share |
|
|
|
|
Basic |
|
34,361,539 |
|
|
|
|
33,985,212 |
|
|
|
|
34,361,539 |
|
|
|
|
33,970,222 |
|
Diluted |
|
35,218,237 |
|
|
|
|
34,578,970 |
|
|
|
|
35,231,324 |
|
|
|
|
34,566,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IKANG HEALTHCARE GROUP, INC. |
RECONCILIATION OF GAAP AND NON-GAAP
RESULTS |
(In thousands of US dollars, except share data
and per share data) |
(Unaudited) |
|
|
|
Three-month periods |
|
|
|
|
Six-month periods |
|
ended September 30 |
|
|
|
|
ended September 30 |
|
2015 |
|
|
|
2016 |
|
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
$ |
15,975 |
|
|
|
$ |
14,304 |
|
|
|
$ |
30,405 |
|
|
$ |
21,150 |
Add: |
|
Share-based compensation expenses |
|
489 |
|
|
|
|
489 |
|
|
|
|
981 |
|
|
|
973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income |
$ |
16,464 |
|
|
|
$ |
14,793 |
|
|
|
$ |
31,386 |
|
|
$ |
22,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to iKang Healthcare Group, Inc. |
$ |
11,623 |
|
|
|
$ |
5,921 |
|
|
|
$ |
22,285 |
|
|
$ |
7,987 |
Add: |
|
Share-based compensation expenses |
|
489 |
|
|
|
|
489 |
|
|
|
|
981 |
|
|
|
973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
$ |
12,112 |
|
|
|
$ |
6,410 |
|
|
|
$ |
23,266 |
|
|
$ |
8,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
$ |
15,975 |
|
|
|
$ |
14,304 |
|
|
|
$ |
30,405 |
|
|
$ |
21,150 |
Add: |
|
Depreciation and amortization |
|
7,618 |
|
|
|
|
9,400 |
|
|
|
|
14,394 |
|
|
|
18,047 |
Share-based compensation expenses |
|
489 |
|
|
|
|
489 |
|
|
|
|
981 |
|
|
|
973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA |
$ |
24,082 |
|
|
|
$ |
24,193 |
|
|
|
$ |
45,780 |
|
|
$ |
40,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to common shareholders |
|
of iKang
Healthcare Group, Inc. |
$ |
12,112 |
|
|
|
$ |
6,410 |
|
|
|
$ |
23,266 |
|
|
$ |
8,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
share attributable to common shareholders |
|
of iKang
Healthcare Group, Inc. |
|
Basic |
$ |
0.35 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.68 |
|
|
$ |
0.26 |
Diluted |
$ |
0.34 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.66 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
ADS (one common share equals to two ADSs) |
|
Basic |
$ |
0.18 |
|
|
|
$ |
0.09 |
|
|
|
$ |
0.34 |
|
|
$ |
0.13 |
Diluted |
$ |
0.17 |
|
|
|
$ |
0.09 |
|
|
|
$ |
0.33 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IR Contact:
iKang Healthcare Group, Inc.
Christy Xie
Director of Investor Relations
Tel: +86 10 5320 8599
Email: ir@ikang.com
Website: www.ikanggroup.com
FleishmanHillard
Email: ikang@fleishman.com
IKANG HEALTHCARE GROUP, INC. (NASDAQ:KANG)
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