BEIJING, Nov. 18, 2010 /PRNewswire-Asia-FirstCall/ --
ChinaEdu Corporation (Nasdaq: CEDU) ("ChinaEdu" or the "Company"),
a leading online education services provider in China, today announced its unaudited financial
results for the third quarter ended September 30, 2010 (1).
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(in thousands,
unaudited)
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Three Months
Ended
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Nine Months
Ended
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Period ended
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September
30,
2009
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September
30,
2010
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Period over
Period %
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September
30,2009
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September
30,
2010
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Year over
Year %
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Currency
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USD
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USD
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USD
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USD
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Financial Data:
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Net
revenue
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13,414
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15,107
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12.6%
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38,740
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43,026
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11.1%
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Gross profit
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8,187
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9,581
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17.0%
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23,683
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27,590
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16.5%
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Income from operations
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2,985
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3,733
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25.1%
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8,897
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10,921
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22.7%
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Net
income attributable to ChinaEdu
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1,091
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1,752
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60.6%
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3,845
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4,858
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26.3%
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Adjusted EBITDA(2) (non-GAAP)
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4,012
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4,996
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24.5%
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12,248
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14,426
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17.8%
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Adjusted net income attributable to ChinaEdu (3)
(non-GAAP)
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1,477
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2,170
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46.9%
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5,285
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5,925
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12.1%
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Net
income attributable to ChinaEdu per ADS (4)
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0.067
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0.109
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62.7%
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0.236
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0.303
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28.4%
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Adjusted net income attributable to ChinaEdu per ADS (5)
(non-GAAP)
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0.091
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0.135
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48.4%
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0.324
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0.370
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14.2%
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Net
income attributable to ChinaEdu per diluted ADS
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0.061
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0.101
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65.6%
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0.220
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0.280
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27.3%
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Adjusted net income attributable to ChinaEdu per diluted
ADS(6) (non-GAAP)
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0.084
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0.125
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48.8%
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0.302
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0.341
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12.9%
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Operating Data:
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Revenue
students (7) for online degree program
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147,000
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157,000
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6.8%
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265,000
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297,000
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12.1%
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(1) The reporting currency of the Company is RMB, but for the
convenience of the reader, the amounts for the three and nine
months ended on September 30, 2009
and September 30, 2010 are presented
in U.S. dollars. Unless otherwise stated, all translations from RMB
to U.S. dollars were made at the rate of RMB6.6905 to $1.00, the noon buying rate in
effect on September 30, 2010 in the
H.10 statistical release of the Federal Reserve Board. The Company
makes no representation that the RMB or U.S. dollar amounts
referred could be converted into U.S. dollars or RMB, as the case
may be, at any particular rate or at all. For analytical
presentation, all percentages are calculated using the numbers
presented in the financial statements contained in this earnings
release. An explanation of the Company’s non-GAAP financial
measures is included in the section entitled "Non-GAAP Financial
Measures" below, and the related reconciliations to GAAP financial
measures are presented in the accompanying financial
statements.
(2) "Adjusted EBITDA" is a non-GAAP measure defined as net
income before interest income, taxes, depreciation, amortization of
intangible assets and land use rights and share-based
compensation.
(3) "Adjusted net income attributable to ChinaEdu" is a non-GAAP
measure defined as net income attributable to ChinaEdu excluding
share-based compensation net of noncontrolling interest portion,
and amortization of intangible assets and land use rights.
(4) "ADS" is American Depositary Share. Each ADS represents
three ordinary shares.
(5) "Adjusted net income attributable to ChinaEdu per ADS" is a
non-GAAP measure which is computed using adjusted net income
attributable to ChinaEdu over number of ADSs used in net income
attributable to ChinaEdu per ADS calculation.
(6) "Adjusted net income attributable to ChinaEdu per diluted
ADS" is a non-GAAP measure which is computed using adjusted net
income attributable to ChinaEdu over number of ADSs used in net
income attributable to ChinaEdu per diluted ADS calculation.
(7) "Revenue students" refers to students of university online
degree programs who have paid tuitions. The numbers for the three
months ended September 30, 2009 and
2010 are revenue students in spring 2009 and spring 2010,
respectively. The numbers for the nine months ended September 30, 2009 and 2010 are total revenue
students in fall 2008 and spring 2009, and total revenue students
in fall 2009 and spring 2010, respectively.
Third Quarter 2010 Highlights
- Total net revenue grew by 12.6% to $15.1
million for the third quarter of 2010 from $13.4 million for the corresponding period in
2009, exceeding our guidance for the third quarter of 2010 of
$14.3 million to $14.8 million.
- Net revenue from online degree programs increased by 12.7% to
$12.0 million for the third quarter
of 2010 from $10.7 million for the
corresponding period in 2009.
- The number of revenue students in online degree programs during
2010 spring semester increased by approximately 6.8% to over
157,000 from approximately 147,000 for the corresponding period in
2009.
- Adjusted EBITDA increased by 24.5% to $5.0 million in the third quarter of 2010 from
$4.0 million for the corresponding
period in 2009.
- Net income attributable to ChinaEdu increased by 60.6% to
$1.8 million in the third quarter of
2010 from $1.1 million for the
corresponding period in 2009.
- Adjusted net income attributable to ChinaEdu increased by 46.9%
to $2.2 million in the third quarter
of 2010 from $1.5 million for the
corresponding period in 2009.
- Net income attributable to ChinaEdu per diluted ADS was
$0.101 for the third quarter of 2010,
as compared to $0.061 for the
corresponding period in 2009.
- Adjusted net income attributable to ChinaEdu per diluted ADS
was $0.125 for the third quarter of
2010, as compared to $0.084 for the
corresponding period in 2009.
"Our third quarter performance continued on track." said Ms.
Julia Huang, ChinaEdu's Chairman and
Chief Executive Officer, "Similar to our second quarter results,
online degree programs grew steadily in the third quarter as a
result of healthy spring semester enrollment. While we continue to
improve our margins, we are committing significant efforts in
developing and expanding businesses in our learning centers, both
online and offline after school tutoring, and international
curriculum programs to drive future growth. As we see
increasing demand of learning and education contents from Internet
and mobile users, we are also committed to further developing our
education contents and improving user learning experience for our
Internet and mobile applications."
Financial Results for the Third Quarter
Ended September 30,
2010
Net Revenue
Total net revenue for the third quarter of 2010 was $15.1 million, representing a 12.6% increase from
$13.4 million for the corresponding
period in 2009. Net revenue from online degree programs for the
third quarter of 2010 was $12.0
million, representing a 12.7% increase from $10.7 million for the corresponding period in
2009. The revenue growth was primarily due to 2010 spring semester
enrollment which registered over 157,000 revenue students as
compared to 147,000 revenue students for 2009 spring semester. As
explained in our second quarter results, the higher online degree
programs revenue growth compared to enrollment growth was primarily
attributable to lower expenses incurred by third-party learning
centers, and increased tuition rate at selected online colleges for
the 2010 spring semester.
Learning centers network continued to expand both in geographic
coverage and universities served. By the end of the third quarter
of 2010, we had 86 operational learning centers of which 43 were
proprietary, and 43 were contracted locations, as compared to 56
operational learning centers as of the end of the third quarter of
2009, of which 23 were proprietary and 33 were contracted
locations. Of the 43 proprietary learning centers, 14 were
newly established service stations. In the past, our number of
learning centers disclosed corresponds to the number of cities in
which we established the learning centers. Beginning this year, in
order to further the penetration in large cities, we also began to
establish branch networks in key cities. Our learning centers
network was serving a total of 18 universities' online degree
programs as of the end of the third quarter of 2010.
Also in this quarter, the Company signed an agreement to acquire
the remaining 81% of Hongcheng Xueyuan, which will expand our
learning centers network by eight new learning centers in six
additional cities and add service agreements with five additional
universities. The transaction is expected to close in the
fourth quarter of 2010 and Hongcheng Xueyuan will become one of our
wholly owned subsidiaries.
Net revenue from the Company's non-online degree programs
(online tutoring programs, private primary and secondary schools
and international curriculum programs) for the third quarter of
2010 was $3.1 million, representing a
12.5% increase from $2.7 million for
the corresponding period in 2009. This increase was attributable to
a 7.0% increase in net revenue for the 101 online tutoring programs
and a 41.5% increase in net revenue at Anqing School due to an
increase in student enrollment as a result of new campus opening.
The increases were offset by a 27.2% decrease in net revenue for
the international curriculum programs which was in line with the
management expectation.
Cost of Revenue
Total cost of revenue for the third quarter of 2010 was
$5.5 million, representing an
increase of 5.7%, as compared to $5.2
million for the corresponding period of 2009. Cost of
revenue for online degree programs for the third quarter of 2010
was $3.9 million, representing an
increase of 10.0% as compared to $3.5
million for the third quarter of 2009. The increase in
online degree programs' cost of revenue was primarily related to
the increase in student enrollment in the 2010 spring semester as
compared to 2009 spring semester.
Cost of revenue for non-online degree programs for the third
quarter of 2010 was $1.6 million,
representing a decrease of 3.1% for the corresponding period in
2009. This decrease was attributable primarily to a decrease in
cost of revenue for international curriculum programs.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2010 was $9.6 million, representing a 17.0% increase from
$8.2 million for the corresponding
period of 2009. Total gross margin for the third quarter of 2010
increased to 63.4%, as compared to 61.0% for the corresponding
period of 2009. Gross margin for the online degree programs
increased to 67.7% for the third quarter of 2010, as compared to
67.0% for the corresponding period of 2009.
Gross margin for 101 online tutoring programs increased to 76.0%
for the third quarter of 2010, as compared to 75.3% for the third
quarter of 2009. Gross margin for private schools improved
significantly to 34.2%, as compared to 7.8% in the corresponding
period in 2009, due to increased enrollment at Anqing School's new
campus. Gross margin for the international curriculum programs
decreased to 32.2% for the third quarter of 2010, as compared to
40.7% in the corresponding period of 2009, due to increased
expenses related to summer groups.
Operating Expenses
Total operating expenses were $5.8
million for the third quarter of 2010, representing a 12.4%
increase from $5.2 million for the
corresponding period in 2009. This increase was a result of the
factors discussed below:
- General and administrative expenses for the third quarter of
2010 were $2.9 million, which
represented a 4.5% decrease from $3.1
million for the corresponding period in 2009, primarily due
to reduced corporate events in the third quarter and other
miscellaneous expenses.
- Selling and marketing expenses were $1.5
million for the third quarter of 2010, which represented a
45.7% increase from $1.0 million for
the corresponding period in 2009. This increase was attributable
primarily to an increase in advertising expenses at our 101 online
tutoring programs, learning centers network, and selected
subsidiaries in the third quarter of 2010.
- Research and development expenses for the third quarter of 2010
were $1.4 million, representing a
28.5% increase from $1.1 million in
the corresponding period in 2009, primarily due to increased staff
and related increased depreciation expenses associated with the new
research and development initiatives for both degree and non-degree
programs.
- Share-based compensation for the third quarter of 2010, which
was allocated to the related cost and operating expense line items,
slightly increased to $0.3 million,
as compared to $0.2 million for the
corresponding period in 2009.
Income from Operations
As a result of the factors discussed above, income from
operations for the third quarter of 2010 was $3.7 million, representing a 25.1% increase as
compared to $3.0 million for the
corresponding period of 2009. Operating margin increased to 24.7%
for the third quarter of 2010, as compared to 22.2% in the
corresponding period of 2009.
Adjusted income from operations, which is a non-GAAP measure
defined as income from operations excluding share-based
compensation, and amortization of intangible assets and land use
rights, was $4.2 million for the
third quarter of 2010, representing an increase of 22.9% as
compared to $3.4 million in the
corresponding period of 2009. Adjusted operating margin, which is a
non-GAAP measure defined as a ratio of adjusted operating income
from operations (non-GAAP) over net revenue, for the third quarter
of 2010 improved to 27.6% as compared to 25.3% for the
corresponding period of 2009.
Interest Income and Investment
Income
Interest income and investment income for the third quarter of
2010 increased 101.9% to $0.32
million, as compared to $0.16
million in the corresponding quarter of 2009.
Income Tax Expense
Income tax expense for the third quarter of 2010 was
$0.7 million, which remained flat
from income tax expense of $0.7
million for the corresponding period in 2009.
Noncontrolling Interest
Noncontrolling interest was $1.6
million in the third quarter of 2010, representing an
increase from $1.3 million in the
corresponding period in 2009, which was attributable primarily to
the noncontrolling interest impact related to the increased net
income from the online degree programs for the third quarter of
2010, as compared to the third quarter of 2009.
Net Income attributable to
ChinaEdu
Net income attributable to ChinaEdu, which is net income
excluding net income attributable to noncontrolling interest, was
$1.8 million for the third quarter of
2010, representing an increase of 60.6% from $1.1 million for the corresponding period in
2009. The increase was primarily due to the increased revenue and
improved gross margin across all of our business lines except for
the international curriculum programs, as well as improved
operating efficiencies.
Net income attributable to ChinaEdu per basic and diluted ADS
were $0.109 and $0.101, respectively, for the third quarter of
2010, as compared to $0.067 and
$0.061, respectively, for the
corresponding period in 2009, which represented increase of 62.7%
and 65.6%, respectively.
Adjusted net income attributable to ChinaEdu (non-GAAP)
increased by 46.9% to $2.2 million
for the third quarter of 2010 from $1.5
million in the corresponding period of 2009. Adjusted net
margin, which is a non-GAAP measure defined as a ratio of adjusted
net income attributable to ChinaEdu (non-GAAP) over net revenue,
was 14.4% in the third quarter of 2010, as compared to 11.0% in the
corresponding period of 2009. The increase was primarily due to
improvement in operating results across our online degree programs
including learning centers network, 101 online tutoring programs
and private schools, offset by a decline in operating results of
the international curriculum programs.
Adjusted net income attributable to ChinaEdu per basic and
diluted ADS (non-GAAP) were $0.135
and $0.125, respectively, for the
third quarter of 2010, as compared to $0.091 and $0.084,
respectively, for the corresponding period in 2009, which
represented increase of 48.4% and 48.8%, respectively.
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (non-GAAP) was $5.0
million for the third quarter of 2010, which increased by
24.5%, as compared to $4.0 million
for the corresponding period in 2009. Adjusted EBITDA margin
(non-GAAP) was 33.1% in the third quarter of 2010 as compared to
29.9% in the third quarter of 2009. This increase was attributable
primarily to improved operating results as discussed above.
Deferred Revenue
Deferred revenue at the end of the third quarter of 2010 was
$6.7 million, with current deferred
revenue of $5.4 million and
non-current deferred revenue of $1.3
million. Spring semester tuition is received generally
during the second quarter and revenue is recognized in the second
and third quarter of each year.
Cash and Cash Equivalents and Term
Deposits
As of September 30, 2010, ChinaEdu
reported cash and cash equivalents and term deposits of
$47.2 million, which primarily
consisted of cash, demand deposits with original maturity terms of
three months or less, and term deposits with original maturity
terms of greater than three months but less than one year.
Amounts Due from Related Parties
Amounts due from related parties (which represent cash owed to
us by our collaborative alliance partners) were $30.3 million as of September 30, 2010.
2010 Year-to-Date Financial Results
Net Revenue
For the nine months ended September 30,
2010, total net revenue was $43.0
million, which represented an increase of 11.1% from
$38.7 million for the corresponding
period in 2009. Net revenue from online degree programs for the
nine months ended September 30, 2010
was $34.3 million, representing a
9.8% increase from $31.2 million for
the corresponding period in 2009. And net revenue from non-online
degree programs for the nine months ended September 30, 2010 was $8.8 million, as compared to $7.5 million for the corresponding period in
2009, representing a 16.1% increase. The growth in total net
revenue was mainly attributable to (i) strong enrollment for the
online degree programs both in the fall semester of 2009 and spring
semester of 2010, representing an increase in total enrollment of
12.1%, as compared to the total enrollment in the fall semester of
2008 and spring semester of 2009; (ii) 42.1% growth in net revenue
at Anqing School resulting from increased enrollment at the new
campus, and (iii) 25.5% net revenue growth at 101 online tutoring
programs.
Cost of Revenue
For the nine months ended September 30,
2010, total cost of revenue was $15.4
million, which remained stable as compared to $15.1 million for the corresponding period in
2009. Cost of revenue at our online degree programs slightly
increased for the nine months ended September 30, 2010 as compared to the
corresponding period of 2009. For non-online degree programs, the
slight decrease in cost of revenue for 101 online tutoring programs
and decrease in cost of revenue at the international curriculum
programs were offset by an increase in staff and depreciation
charges at the Anqing School.
Gross Profit and Gross Margin
Gross profit for the nine months ended September 30, 2010 was $27.6 million which grew by 16.5% as compared
with $23.7 million for the
corresponding period in 2009. Total gross margin for the first nine
months of 2010 increased to 64.1% as compared to 61.1% in
corresponding period in 2009. Gross margin improved across our
business lines except for the international curriculum programs,
primarily due to improved profitability at our learning centers
networks, 101 online tutoring programs and private schools.
Income from Operations
Income from operations was $10.9
million for the nine months ended September 30, 2010, representing an increase of
22.7% from $8.9 million for the
corresponding period in 2009. Operating margin was 25.4% for the
nine months ended September 30, 2010,
as compared to 23.0% for the corresponding period in 2009.
Adjusted income from operations (non-GAAP) was $12.1 million for the nine months ended
September 30, 2010, representing an
increase of 15.8%, compared to $10.4
million in the corresponding period of 2009. Adjusted
operating margin (non-GAAP) for the nine months ended September 30, 2010 was 28.1%, which improved from
27.0% for the corresponding period in 2009.
Net Income attributable to ChinaEdu
Net income attributable to ChinaEdu was $4.9 million for the nine months ended
September 30, 2010, representing an
increase of 26.4% from $3.8 million
for the corresponding period in 2009. Net margin was 11.3% for the
nine months ended September 30, 2010,
as compared to 9.9% for the corresponding period in 2009.
Adjusted net margin was 13.8% for the nine months ended
September 30, 2010, which increased
slightly from 13.6% for the corresponding period of 2009.
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (non-GAAP) was $14.4
million for the nine months ended September 30, 2010, representing an increase of
17.8%, as compared to $12.2 million
for the corresponding period in 2009. Adjusted EBITDA margin was
33.5% for the nine months ended September
30, 2010, which improved as compared to 31.6% for the
corresponding period of 2009. This increase was attributable
primarily to improved operating results as discussed above.
Fourth Quarter 2010 Total Net Revenue
Guidance
For the fourth quarter of 2010, ChinaEdu expects its total net
revenue to be in the range of RMB99 million
to RMB106 million or $14.8 million to
$15.8 million. This forecast reflects ChinaEdu's current and
preliminary view, which is subject to change.
Conference Call
ChinaEdu senior management will host a conference call on
Friday, November 19, 2010 at
8:00 a.m. U.S. Eastern time /
5:00 a.m. U.S. Pacific time /
9:00 p.m. Beijing/Hong
Kong time.
The conference call may be accessed by calling (US) 866 783
2137/ (International) +1 857 350 1596/ (HK) +852 3002 1672/
(China) +86 10 800 130 0399;
Passcode: 86174106. A telephone replay will be available
shortly after the call until November 26,
2010 at (US) 888 286 8010/ (International) +1 617 801 6888;
Passcode: 45690405. A live and archived webcast may be accessed via
ChinaEdu's investor relations website at
http://ir.chinaedu.net.
Non-GAAP Financial Measures
To supplement the unaudited condensed consolidated financial
information presented in accordance with Generally Accepted
Accounting Principles in the United
States of America ("GAAP"), the Company uses non-GAAP
measures of income from operations and net income attributable to
ChinaEdu, which are adjusted from results based on GAAP to exclude
certain non-cash items of share-based compensation and amortization
of intangible assets and land use rights. The Company also uses
adjusted EBITDA, which is also a non-GAAP measure and is adjusted
from GAAP results of net income to exclude interest income, taxes,
depreciation, amortization of intangible assets and land use
rights, and share-based compensation. These non-GAAP financial
measures are provided to enhance the investors' overall
understanding of the Company's current and past financial
performance in on-going core operations as well as prospects for
the future. These measures should be considered in addition to
results prepared and presented in accordance with GAAP, but should
not be considered a substitute for or superior to GAAP results.
Management considers the non-GAAP information as important measures
internally and therefore deems it important to provide all of this
information to investors.
About ChinaEdu
ChinaEdu Corporation is an educational services provider in
China, incorporated as an exempted
limited liability company in the Cayman
Islands. Established in 1999, the Company's primary business
is to provide comprehensive services to the online degree programs
of leading Chinese universities. These services include academic
program development, technology services, enrollment marketing,
student support services and finance operations. The Company's
other lines of businesses include the operation of private primary
and secondary schools, online interactive tutoring services and
providing marketing and support for international curriculum
programs.
The Company believes it is the largest service provider to
online degree programs in China in
terms of the number of higher education institutions that are
served and the number of student enrollments supported. The Company
currently has 17 long-term contracts that generally vary from 10 to
50 years in length. ChinaEdu also performs recruiting services for
18 universities through its nationwide learning centers
network.
Forward-Looking Statement
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including certain plans, expectations, goals, and
projections, which are subject to numerous assumptions, risks, and
uncertainties. Forward-looking statements involve known and unknown
risks, uncertainties and contingencies, many of which are beyond
our control which may cause actual results, levels of activity,
performance or achievements to differ materially from any future
results, levels of activity, performance or achievements expressed
or implied by such forward-looking statements. The Company's actual
results could differ materially from those contained in the
forward-looking statements due to a number of factors, including
those described under the heading "Risk Factors" in the Company's
Annual Report on Form 20-F for the year ended
December 31, 2009, and in documents subsequently filed by the
Company from time to time with the Securities and Exchange
Commission. Unless required by law, the Company undertakes no
obligation to (and expressly disclaim any such obligation to)
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Company Contacts:
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Min Yang
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ChinaEdu
Corporation
|
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Phone: +86-10-8418-6655 ext.1012
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E-mail:
ir@chinaedu.net
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ChinaEdu
Corporation
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
(in thousands, unaudited)
|
December
31,2009
|
September
30,2010
|
September
30,2010
|
|
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
203,143
|
153,988
|
23,016
|
|
|
Term deposits
|
122,304
|
161,572
|
24,149
|
|
|
Restricted cash
|
365
|
365
|
55
|
|
|
Short-term investments
|
17,706
|
32,060
|
4,792
|
|
|
Accounts receivable, net
|
28,334
|
23,261
|
3,477
|
|
|
Inventory
|
1,852
|
1,329
|
199
|
|
|
Prepaid expenses and other current
assets
|
25,315
|
22,065
|
3,297
|
|
|
Amounts due from related
parties
|
176,802
|
203,022
|
30,345
|
|
|
Deferred tax assets
|
3,309
|
966
|
144
|
|
Total current assets
|
579,130
|
598,628
|
89,474
|
|
|
Long-term investments
|
4,210
|
1,210
|
181
|
|
|
Prepaid acquisition cost
|
-
|
7,460
|
1,115
|
|
|
Deferred tax assets
|
1,541
|
3,009
|
450
|
|
|
Rental deposits
|
868
|
1,055
|
157
|
|
|
Land use rights, net
|
27,874
|
27,417
|
4,098
|
|
|
Property and equipment, net
|
203,995
|
223,496
|
33,405
|
|
|
Deposits paid for acquisition of
property and equipment
|
13,898
|
19,792
|
2,958
|
|
|
Acquired intangible assets,
net
|
66,621
|
64,335
|
9,616
|
|
|
Goodwill
|
38,155
|
38,155
|
5,703
|
|
Total assets
|
936,292
|
984,557
|
147,157
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short term loan
|
-
|
5,756
|
860
|
|
|
Accounts payable (including accounts
payable of the consolidated VIEs without recourse to
ChinaEdu Group of 5,351 and
4,519 as of December 31, 2009 and September 30, 2010)
|
6,467
|
6,362
|
951
|
|
|
Deferred revenues (including deferred
revenues of the consolidated VIEs without recourse to
ChinaEdu Group of 17,786 and
18,335 as of December 31, 2009 and September 30, 2010)
|
97,853
|
35,970
|
5,376
|
|
|
Accrued expenses and other current
liabilities (including accrued expenses and other
current
liabilities of the consolidated
VIEs without recourse to ChinaEdu Group of 11,066 and
14,842
as of December 31, 2009 and
September 30, 2010)
|
68,917
|
77,755
|
11,622
|
|
|
Amounts due to related parties
(including amounts due to related parties of the consolidated
VIEs
without recourse to ChinaEdu
Group of 2,065 and 1,631 as of December 31, 2009 and
September 30, 2010)
|
25,668
|
52,482
|
7,844
|
|
|
Income taxes payable (including income
taxes payable of the consolidated VIEs without recourse
to
ChinaEdu Group of 7,770 and
9,237 as of December 31, 2009 and September 30, 2010)
|
33,389
|
42,439
|
6,343
|
|
|
Other taxes payable (including other
taxes payable of the consolidated VIEs without recourse
to
ChinaEdu Group of 2,285 and
2,269 as of December 31, 2009 and September 30, 2010)
|
15,900
|
15,979
|
2,388
|
|
Total current
liabilities
|
248,194
|
236,743
|
35,384
|
|
|
Deferred revenues (including deferred
revenues of the consolidated VIEs without recourse to
ChinaEdu Group of 113 and 97 as
of December 31, 2009 and September 30, 2010)
|
8,075
|
8,934
|
1,336
|
|
|
Deferred tax liabilities (including
deferred tax liabilities of the consolidated VIEs without recourse
to
ChinaEdu Group of 1,381 and
1,365 as of December 31, 2009 and September 30, 2010)
|
10,143
|
9,704
|
1,450
|
|
|
Unrecognized tax benefit (including
unrecognized tax benefit of the consolidated VIEs
without
recourse to ChinaEdu Group of
1,145 and 1,235 as of December 31, 2009 and September 30,
2010)
|
7,727
|
8,275
|
1,237
|
|
Total liabilities
|
274,139
|
263,656
|
39,407
|
|
|
|
|
|
|
|
ChinaEdu shareholders’
equity
|
559,973
|
599,152
|
89,553
|
|
|
Noncontrolling interests
|
102,180
|
121,749
|
18,197
|
|
Total equity
|
662,153
|
720,901
|
107,750
|
|
Total liabilities and
equity
|
936,292
|
984,557
|
147,157
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(in thousands, unaudited, except for
percentage,
share, and per share
information)
|
|
September
30,2009
|
|
June
30,2010
|
|
September
30,2010
|
|
September
30,2010
|
|
September
30,2009
|
|
September
30,2010
|
|
September
30,2010
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue *
|
|
94,303
|
|
104,108
|
|
105,115
|
|
15,711
|
|
272,576
|
|
300,312
|
|
44,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Tax and Surcharge
|
|
4,559
|
|
4,591
|
|
4,044
|
|
604
|
|
13,387
|
|
12,447
|
|
1,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree programs
|
|
71,510
|
|
80,188
|
|
80,560
|
|
12,041
|
|
208,721
|
|
229,263
|
|
34,267
|
|
Online tutoring programs
|
|
5,778
|
|
6,084
|
|
6,180
|
|
924
|
|
14,074
|
|
17,665
|
|
2,640
|
|
Private primary and secondary
schools
|
|
7,669
|
|
9,454
|
|
10,848
|
|
1,621
|
|
20,811
|
|
29,582
|
|
4,422
|
|
International curriculum
programs
|
|
4,787
|
|
3,791
|
|
3,483
|
|
521
|
|
15,583
|
|
11,355
|
|
1,697
|
|
Total net revenue
|
|
89,744
|
|
99,517
|
|
101,071
|
|
15,107
|
|
259,189
|
|
287,865
|
|
43,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree programs
|
|
23,633
|
|
24,417
|
|
25,986
|
|
3,884
|
|
68,853
|
|
71,451
|
|
10,679
|
|
Online tutoring programs
|
|
1,426
|
|
1,473
|
|
1,486
|
|
222
|
|
4,491
|
|
4,124
|
|
616
|
|
Private primary and secondary
schools
|
|
7,070
|
|
7,016
|
|
7,138
|
|
1,067
|
|
18,811
|
|
20,878
|
|
3,121
|
|
International curriculum
programs
|
|
2,840
|
|
2,052
|
|
2,362
|
|
353
|
|
8,581
|
|
6,825
|
|
1,020
|
|
Total cost of revenue
|
|
34,969
|
|
34,958
|
|
36,972
|
|
5,526
|
|
100,736
|
|
103,278
|
|
15,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree programs
|
|
47,877
|
|
55,771
|
|
54,574
|
|
8,157
|
|
139,868
|
|
157,812
|
|
23,588
|
|
Online tutoring programs
|
|
4,352
|
|
4,611
|
|
4,694
|
|
702
|
|
9,583
|
|
13,541
|
|
2,024
|
|
Private primary and secondary
schools
|
|
599
|
|
2,438
|
|
3,710
|
|
554
|
|
2,000
|
|
8,704
|
|
1,301
|
|
International curriculum
programs
|
|
1,947
|
|
1,739
|
|
1,121
|
|
168
|
|
7,002
|
|
4,530
|
|
677
|
|
Total gross profit
|
|
54,775
|
|
64,559
|
|
64,099
|
|
9,581
|
|
158,453
|
|
184,587
|
|
27,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree programs
|
|
67.0%
|
|
69.6%
|
|
67.7%
|
|
67.7%
|
|
67.0%
|
|
68.8%
|
|
68.8%
|
|
Online tutoring programs
|
|
75.3%
|
|
75.8%
|
|
76.0%
|
|
76.0%
|
|
68.1%
|
|
76.7%
|
|
76.7%
|
|
Private primary and secondary
schools
|
|
7.8%
|
|
25.8%
|
|
34.2%
|
|
34.2%
|
|
9.6%
|
|
29.4%
|
|
29.4%
|
|
International curriculum
programs
|
|
40.7%
|
|
45.9%
|
|
32.2%
|
|
32.2%
|
|
44.9%
|
|
39.9%
|
|
39.9%
|
|
Gross margin
|
|
61.0%
|
|
64.9%
|
|
63.4%
|
|
63.4%
|
|
61.1%
|
|
64.1%
|
|
64.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
20,519
|
|
18,400
|
|
19,605
|
|
2,930
|
|
59,844
|
|
57,925
|
|
8,658
|
|
Selling and marketing
|
|
6,766
|
|
8,056
|
|
9,856
|
|
1,473
|
|
17,110
|
|
25,652
|
|
3,834
|
|
Research and development
|
|
7,522
|
|
9,512
|
|
9,665
|
|
1,445
|
|
21,975
|
|
27,948
|
|
4,177
|
|
Total operating expenses
|
|
34,807
|
|
35,968
|
|
39,126
|
|
5,848
|
|
98,929
|
|
111,525
|
|
16,669
|
|
Income from operations
|
|
19,968
|
|
28,591
|
|
24,973
|
|
3,733
|
|
59,524
|
|
73,062
|
|
10,921
|
|
Operating margin
|
|
22.2%
|
|
28.7%
|
|
24.7%
|
|
24.7%
|
|
23.0%
|
|
25.4%
|
|
25.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
(264)
|
|
144
|
|
143
|
|
21
|
|
987
|
|
431
|
|
64
|
|
Interest income
|
|
1,041
|
|
1,345
|
|
1,560
|
|
233
|
|
3,895
|
|
3,962
|
|
592
|
|
Interest expense
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
Investment income
|
|
-
|
|
522
|
|
549
|
|
82
|
|
-
|
|
1,071
|
|
160
|
|
Income before income tax
provisions
|
|
20,744
|
|
30,602
|
|
27,225
|
|
4,069
|
|
64,405
|
|
78,526
|
|
11,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
(4,835)
|
|
(6,441)
|
|
(4,723)
|
|
(706)
|
|
(13,800)
|
|
(19,335)
|
|
(2,890)
|
|
Net income
|
|
15,909
|
|
24,161
|
|
22,502
|
|
3,363
|
|
50,605
|
|
59,191
|
|
8,847
|
|
Net income attributable to the
noncontrolling interests
|
|
(8,610)
|
|
(10,616)
|
|
(10,777)
|
|
(1,611)
|
|
(24,882)
|
|
(26,689)
|
|
(3,989)
|
|
Net income attributable to
ChinaEdu
|
|
7,299
|
|
13,545
|
|
11,725
|
|
1,752
|
|
25,723
|
|
32,502
|
|
4,858
|
|
Net margin
|
|
8.1%
|
|
13.6%
|
|
11.6%
|
|
11.6%
|
|
9.9%
|
|
11.3%
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ChinaEdu
per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.45
|
|
0.84
|
|
0.73
|
|
0.109
|
|
1.58
|
|
2.03
|
|
0.303
|
|
Diluted
|
|
0.41
|
|
0.78
|
|
0.68
|
|
0.101
|
|
1.47
|
|
1.87
|
|
0.280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average aggregate number of
ADSs outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,227,267
|
|
16,029,983
|
|
16,043,240
|
|
16,043,240
|
|
16,326,294
|
|
16,009,690
|
|
16,009,690
|
|
Diluted
|
|
17,604,567
|
|
17,376,199
|
|
17,306,106
|
|
17,306,106
|
|
17,479,334
|
|
17,359,851
|
|
17,359,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Gross revenue are detailed as
follows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree programs
|
|
75,564
|
|
84,365
|
|
84,148
|
|
12,577
|
|
220,751
|
|
240,971
|
|
36,017
|
|
Online tutoring programs
|
|
6,002
|
|
6,278
|
|
6,399
|
|
957
|
|
14,472
|
|
17,710
|
|
2,647
|
|
Private primary and secondary
schools
|
|
7,671
|
|
9,454
|
|
10,882
|
|
1,626
|
|
20,863
|
|
29,616
|
|
4,427
|
|
International curriculum
programs
|
|
5,066
|
|
4,011
|
|
3,686
|
|
551
|
|
16,490
|
|
12,015
|
|
1,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
Unaudited
Condensed Consolidated Statements of Cash Flow
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(in thousands,
unaudited)
|
|
September
30,2009
|
|
June
30,2010
|
|
September
30,2010
|
|
September
30,2010
|
|
September
30,2009
|
|
September
30,2010
|
|
September
30,2010
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
15,909
|
|
24,161
|
|
22,502
|
|
3,363
|
|
50,605
|
|
59,191
|
|
8,847
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
1,488
|
|
366
|
|
1,700
|
|
254
|
|
5,805
|
|
4,204
|
|
628
|
|
Depreciation and amortization of property and equipment
|
|
4,119
|
|
4,820
|
|
4,957
|
|
741
|
|
12,043
|
|
14,467
|
|
2,162
|
|
Amortization of land use rights
|
|
152
|
|
153
|
|
152
|
|
23
|
|
467
|
|
457
|
|
68
|
|
Amortization of acquired intangible assets
|
|
1,114
|
|
1,093
|
|
1,088
|
|
163
|
|
4,108
|
|
3,261
|
|
487
|
|
Provision for amounts due from related parties and account
receivables
|
|
16
|
|
-
|
|
-
|
|
-
|
|
425
|
|
-
|
|
-
|
|
Loss (gain) from disposal of property and equipment
|
|
110
|
|
(8)
|
|
4
|
|
1
|
|
203
|
|
-
|
|
-
|
|
Deferred income taxes
|
|
(613)
|
|
269
|
|
(318)
|
|
(48)
|
|
357
|
|
436
|
|
65
|
|
Changes in assets
and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
11,797
|
|
(16,907)
|
|
9,100
|
|
1,360
|
|
1,277
|
|
5,073
|
|
758
|
|
Inventory
|
|
(722)
|
|
119
|
|
4
|
|
1
|
|
(1,799)
|
|
523
|
|
78
|
|
Prepaid expenses and other current assets
|
|
(6,582)
|
|
(4,805)
|
|
348
|
|
52
|
|
(2,275)
|
|
5,043
|
|
754
|
|
Amounts due from related parties
|
|
26,821
|
|
(112,040)
|
|
50,989
|
|
7,621
|
|
(37,841)
|
|
(26,220)
|
|
(3,919)
|
|
Rental deposits
|
|
(67)
|
|
(111)
|
|
(65)
|
|
(10)
|
|
28
|
|
(187)
|
|
(28)
|
|
Land use rights
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,989)
|
|
-
|
|
-
|
|
Accounts payable
|
|
(1,368)
|
|
1,164
|
|
1,636
|
|
245
|
|
1,488
|
|
1,992
|
|
298
|
|
Deferred revenues
|
|
(60,114)
|
|
70,558
|
|
(70,660)
|
|
(10,561)
|
|
(60,725)
|
|
(61,023)
|
|
(9,121)
|
|
Accrued expenses and other current liabilities
|
|
8,437
|
|
9,310
|
|
4,975
|
|
744
|
|
9,039
|
|
8,839
|
|
1,321
|
|
Amounts due to related parties
|
|
11,946
|
|
27,653
|
|
(17,200)
|
|
(2,571)
|
|
37,791
|
|
21,183
|
|
3,166
|
|
Income tax payable
|
|
4,800
|
|
6,401
|
|
4,960
|
|
741
|
|
341
|
|
9,050
|
|
1,353
|
|
Other taxes payable
|
|
2,122
|
|
3,380
|
|
1,533
|
|
229
|
|
1,838
|
|
79
|
|
12
|
|
Unrecognized tax benefit
|
|
89
|
|
125
|
|
60
|
|
9
|
|
2,070
|
|
547
|
|
82
|
|
Net cash provided by operating
activities
|
|
19,454
|
|
15,701
|
|
15,765
|
|
2,357
|
|
23,256
|
|
46,915
|
|
7,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(10,270)
|
|
(3,509)
|
|
(12,052)
|
|
(1,801)
|
|
(50,794)
|
|
(22,251)
|
|
(3,326)
|
|
Deposits paid for acquisition of property and equipment
|
|
2,616
|
|
-
|
|
(19,792)
|
|
(2,958)
|
|
2,616
|
|
(19,792)
|
|
(2,958)
|
|
Purchase of term deposits
|
|
(8,988)
|
|
(55,318)
|
|
17,800
|
|
2,660
|
|
(24,988)
|
|
(39,537)
|
|
(5,909)
|
|
Prepaid acquisition cost
|
|
-
|
|
-
|
|
(7,460)
|
|
(1,115)
|
|
-
|
|
(7,460)
|
|
(1,115)
|
|
Purchase of investments
|
|
(14,083)
|
|
(11,924)
|
|
(1,494)
|
|
(223)
|
|
(14,083)
|
|
(13,418)
|
|
(2,006)
|
|
Proceeds from sale of investment
|
|
-
|
|
-
|
|
3,000
|
|
448
|
|
-
|
|
3,000
|
|
448
|
|
Purchase of contractual right
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(500)
|
|
-
|
|
-
|
|
Acqisition of noncontrolling interest
|
|
-
|
|
-
|
|
(998)
|
|
(149)
|
|
-
|
|
(998)
|
|
(149)
|
|
Proceeds from disposal of property and equipment
|
|
-
|
|
59
|
|
-
|
|
-
|
|
-
|
|
108
|
|
16
|
|
Net cash used in investing
activities
|
|
(30,725)
|
|
(70,692)
|
|
(20,996)
|
|
(3,138)
|
|
(87,749)
|
|
(100,348)
|
|
(14,999)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of share options
|
|
2,463
|
|
847
|
|
574
|
|
86
|
|
3,887
|
|
2,760
|
|
413
|
|
Prepayment for share repurchase
|
|
-
|
|
(1,824)
|
|
-
|
|
-
|
|
-
|
|
(1,824)
|
|
(273)
|
|
Repurchase and cancellation of ordinary shares
|
|
(249)
|
|
(210)
|
|
-
|
|
-
|
|
(61,896)
|
|
(323)
|
|
(48)
|
|
Short term loan
|
|
2,117
|
|
-
|
|
5,756
|
|
860
|
|
2,117
|
|
5,756
|
|
860
|
|
Cash dividends paid to noncontrolling shareholders
|
|
-
|
|
-
|
|
(196)
|
|
(29)
|
|
(10,600)
|
|
(1,666)
|
|
(249)
|
|
Capital contributions by noncontrolling shareholders
|
|
-
|
|
-
|
|
-
|
|
-
|
|
980
|
|
-
|
|
-
|
|
Net cash provided by (used in)
financing activities
|
|
4,331
|
|
(1,187)
|
|
6,134
|
|
917
|
|
(65,512)
|
|
4,703
|
|
703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes
|
|
48
|
|
(213)
|
|
(208)
|
|
(32)
|
|
312
|
|
(425)
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, beginning
of period
|
|
231,132
|
|
209,684
|
|
153,293
|
|
22,912
|
|
353,933
|
|
203,143
|
|
30,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, end of
period
|
|
224,240
|
|
153,293
|
|
153,988
|
|
23,016
|
|
224,240
|
|
153,988
|
|
23,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
(6,892)
|
|
(56,391)
|
|
695
|
|
104
|
|
(129,693)
|
|
(49,155)
|
|
(7,347)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
Reconciliations
from income from operations to adjusted income from operations
(non-GAAP) and adjusted operating margin (non-GAAP)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(in thousands,
unaudited)
|
|
September
30,2009
|
|
June
30,2010
|
|
September
30,
2010
|
|
September
30,
2010
|
|
September
30,2009
|
|
September
30,
2010
|
|
September
30,
2010
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
89,744
|
|
99,517
|
|
101,071
|
|
15,107
|
|
259,189
|
|
287,865
|
|
43,026
|
|
Income from operations
|
|
19,968
|
|
28,591
|
|
24,973
|
|
3,733
|
|
59,524
|
|
73,062
|
|
10,921
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,488
|
|
366
|
|
1,700
|
|
254
|
|
5,805
|
|
4,204
|
|
628
|
|
Amortization
|
|
1,266
|
|
1,246
|
|
1,240
|
|
186
|
|
4,575
|
|
3,718
|
|
555
|
|
Adjusted income from operations
(non-GAAP)
|
|
22,722
|
|
30,203
|
|
27,913
|
|
4,173
|
|
69,904
|
|
80,984
|
|
12,104
|
|
Adjusted operating margin
(non-GAAP)
|
|
25.3%
|
|
30.3%
|
|
27.6%
|
|
27.6%
|
|
27.0%
|
|
28.1%
|
|
28.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
Reconciliation
from net income to adjusted EBITDA (non-GAAP) and adjusted EBITDA
margin (non-GAAP)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(in thousands,
unaudited)
|
|
September
30,2009
|
|
June
30,2010
|
|
September
30,
2010
|
|
September
30,
2010
|
|
September
30,2009
|
|
September
30,
2010
|
|
September
30,
2010
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
89,744
|
|
99,517
|
|
101,071
|
|
15,107
|
|
259,189
|
|
287,865
|
|
43,026
|
|
Net income
|
|
15,909
|
|
24,161
|
|
22,502
|
|
3,363
|
|
50,605
|
|
59,191
|
|
8,847
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
4,835
|
|
6,441
|
|
4,723
|
|
706
|
|
13,800
|
|
19,335
|
|
2,890
|
|
Share-based
compensation
|
|
1,488
|
|
366
|
|
1,700
|
|
254
|
|
5,805
|
|
4,204
|
|
628
|
|
Amortization
|
|
1,266
|
|
1,246
|
|
1,240
|
|
186
|
|
4,575
|
|
3,718
|
|
555
|
|
Depreciation
|
|
4,119
|
|
4,820
|
|
4,957
|
|
741
|
|
12,043
|
|
14,467
|
|
2,162
|
|
Interest income and other,
net
|
|
(776)
|
|
(1,489)
|
|
(1,703)
|
|
(254)
|
|
(4,881)
|
|
(4,393)
|
|
(656)
|
|
Adjusted EBITDA
(non-GAAP)
|
|
26,841
|
|
35,545
|
|
33,419
|
|
4,996
|
|
81,947
|
|
96,522
|
|
14,426
|
|
Adjusted EBITDA margin
(non-GAAP)
|
|
29.9%
|
|
35.7%
|
|
33.1%
|
|
33.1%
|
|
31.6%
|
|
33.5%
|
|
33.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
Reconciliations
from net income attributable to ChinaEdu to adjusted net income
attributable to ChinaEdu (non-GAAP),
adjusted net margin (non-GAAP) and
adjusted net income per ADS (non-GAAP)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(in thousands,
unaudited)
|
|
September
30,2009
|
|
June
30,2010
|
|
September
30,
2010
|
|
September
30,
2010
|
|
September
30,2009
|
|
September
30,
2010
|
|
September
30,
2010
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
89,744
|
|
99,517
|
|
101,071
|
|
15,107
|
|
259,189
|
|
287,865
|
|
43,026
|
|
Net income attributable to
ChinaEdu
|
|
7,299
|
|
13,545
|
|
11,725
|
|
1,752
|
|
25,723
|
|
32,502
|
|
4,858
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,488
|
|
366
|
|
1,700
|
|
254
|
|
5,805
|
|
4,204
|
|
628
|
|
Share-based compensation
attributable to the noncontrolling interest
|
|
(168)
|
|
(381)
|
|
(149)
|
|
(22)
|
|
(742)
|
|
(773)
|
|
(116)
|
|
Amortization
|
|
1,266
|
|
1,246
|
|
1,240
|
|
186
|
|
4,575
|
|
3,718
|
|
555
|
|
Adjusted net income attributable to
ChinaEdu (non-GAAP)
|
|
9,885
|
|
14,776
|
|
14,516
|
|
2,170
|
|
35,361
|
|
39,651
|
|
5,925
|
|
Adjusted net margin
(non-GAAP)
|
|
11.0%
|
|
14.8%
|
|
14.4%
|
|
14.4%
|
|
13.6%
|
|
13.8%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to
ChinaEdu per ADS (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.61
|
|
0.92
|
|
0.90
|
|
0.135
|
|
2.17
|
|
2.48
|
|
0.370
|
|
Diluted
|
|
0.56
|
|
0.85
|
|
0.84
|
|
0.125
|
|
2.02
|
|
2.28
|
|
0.341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average aggregate number of
ADSs outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,227,267
|
|
16,029,983
|
|
16,043,240
|
|
16,043,240
|
|
16,326,294
|
|
16,009,690
|
|
16,009,690
|
|
Diluted
|
|
17,604,567
|
|
17,376,199
|
|
17,306,106
|
|
17,306,106
|
|
17,479,334
|
|
17,359,851
|
|
17,359,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE ChinaEdu Corporation