BEIJING, June 13, 2012 /PRNewswire-Asia/ -- ChinaEdu
Corporation (NASDAQ: CEDU) ("ChinaEdu" or the "Company"), a leading
online educational services provider in China, today announced its unaudited financial
results for the first quarter ended March
31, 2012.[1]
First Quarter 2012 Highlights
- Total net revenue for the first quarter of 2012 was
$18.1 million, a 24.7 percent
increase from $14.5 million in the
corresponding period in 2011.
- Net revenue from online degree programs was $14.6 million, an increase of 28.3 percent from
$11.4 million in the corresponding
period of 2011.
- Net income attributable to ChinaEdu was $1.6 million.
- Adjusted net income attributable to ChinaEdu[2] was
$2.1 million.
- Net income attributable to ChinaEdu per diluted ADS[3] was
$0.098.
- Adjusted net income attributable to ChinaEdu per diluted ADS[4]
was $0.128.
- Operating margin in the first quarter of 2012 was 19.6
percent.
- The number of revenue students[5] in online degree programs
during the Fall 2011 semester increased roughly 27.9 percent
year-over-year to approximately 197,000 students.
Julia Huang, executive chairman
commented, "We are pleased with our results in the first quarter of
2012 and are optimistic about the full year. As seen historically,
over eighty percent of our net revenue results from student
enrollments in our core online degree programs. We continue to
focus our attention on our core business and are confident that
with continued effort and innovation we will see further organic
growth in student enrollments in these programs. We will continue
to stay close to our online teaching expertise as we move through
2012 and beyond."
Mr. Simon Mei, chief financial
officer commented, "With a strong top line, enhanced by significant
increases in student enrollment in online degree programs, careful
cost management allowed for an equally well enhanced bottom line in
the first quarter of 2012. We have been cautious with headcount
increases and marketing spending, even reducing headcount in
certain non-essential areas where redundancies were found. Moving
forward, we will continue to implement these cost control measures
and manage our financial situation, allowing us to successfully
navigate a developing industry."
Financial Results for the First Quarter
Ended March 31,
2012
Net Revenue
Total net revenue for the first quarter of 2012 was $18.1 million, a 24.7 percent increase from
$14.5 million in the corresponding
period in 2011.
Net revenue from online degree programs for the first quarter of
2012 was $14.6 million, a 28.3
percent increase over $11.4 million
in the corresponding period in 2011. The increase was primarily due
to organic growth in revenue students enrolled in our core online
degree programs. There was also strong growth in revenue
contributed from our learning centers network and increased revenue
contribution from our online non-degree training programs.
Enrollment for 2011 Fall semester online degree programs was
approximately 197,000 revenue students, a 27.9 percent increase
from approximately 154,000 revenue students enrolled in the Fall
2010 semester.
As of March 31 2012, ChinaEdu's
learning centers network was providing recruiting services for 22
universities with 105 operational learning centers, of which 55
were proprietary centers[6] and 50 were contracted centers[7]. This
compares to 96 operational learning centers as of March 31, 2011, of which 53 were proprietary and
43 were contracted centers.
Net revenue from non-degree programs, including online tutoring
programs, private primary and secondary schools and international
and elite curriculum programs, in the first quarter of 2012 was
$3.5 million, an 11.8 percent
increase from $3.1 million in the
first quarter of 2011. The growth was mainly driven by an increase
in student enrollments at our private schools in Anqing and
Pingdingshan as well as strong performance by our 101 online school
tutoring programs.
Cost of Revenue
Total cost of revenue for the first quarter of 2012 was
$7.2 million, representing an
increase of 14.5 percent, compared to $6.3
million in the corresponding period of 2011.
Cost of revenue for online degree programs in the first quarter
of 2012 was $4.8 million, an increase
of 13.5 percent from $4.2 million in
the corresponding period of 2011. The cost increase was primarily
due to the increase in staff costs that resulted from headcount
increase across the Company, especially in our online degree
programs that have seen significant growth beginning in the second
half of 2011 and continuing in the first quarter of 2012.
Cost of revenue for non-degree programs in the first quarter of
2011 was $2.4 million, an increase of
16.5 percent from $2.1 million in the
first quarter of 2011. The cost of revenue increase was primarily
related to employee costs, leasing costs and service fees
associated with our 101 online tutoring programs and teaching
costs, dormitory, canteen and transportation costs related to our
private primary schools in Anqing and Pingdingshan.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2012 was $10.9 million, compared to $8.2 million in the corresponding period of 2011.
Gross margin increased to 60.1 percent, compared to 56.5 percent in
the corresponding period in 2011.
Gross margin for online degree programs increased to 67.0
percent for the first quarter of 2012, compared to 62.7 percent in
the corresponding period of 2011. The increases in gross margin and
gross profit were primarily related to organic growth in the number
of revenue students enrolled in online degree programs.
Gross margin for private schools increased to 27.6 percent in
the first quarter of 2012, compared to 25.6 percent in the
corresponding period in 2011. The increase was primarily due to
continued strong enrollment at the Anqing School, which is enjoying
economics of scale, as well as increased enrollment at our
Pingdingshan School.
Gross margin for online tutoring programs decreased to 54.7
percent in the first quarter of 2012, from 64.4 percent in first
quarter of 2011, largely due to increased staff and leasing costs
associated with these programs.
Operating Expenses
Total operating expenses were $7.3
million in the first quarter of 2012, representing a 13.1
percent increase from $6.5 million
for the corresponding period in 2011. As a percentage of net
revenue, total operating expenses decreased to 40.4 percent,
compared to 44.6 percent in the corresponding period in 2011. The
increase in total operating expense was the result of the
following:
- General and administrative expenses for the first quarter of
2012 were $4.1 million, an increase
of 17.9 percent from $3.5 million in
the corresponding period in 2011. More than half of the increase in
general and administrative expenses over the year ago period was
the result of an early termination penalty related to a terminated
lease agreement. As a percentage of net revenue, general and
administrative expenses decreased to 22.7 percent, compared with
24.0 percent in the same period in 2011 as a result of increased
net revenue.
- Selling and marketing expenses were $1.7
million in the first quarter of 2012, an increase of 15.4
percent compared to $1.4 million in
the corresponding period in 2011. The increase in selling and
marketing expenses was primarily attributable to an increase in
marketing activities. As a percentage of net revenue, selling and
marketing expenses decreased to 9.2 percent, compared with 9.9
percent in the same period in 2011.
- Research and development expenses for the first quarter of 2012
were $1.6 million, flat with the
corresponding period in 2011. As a percentage of net revenue, the
research and development expense was 8.6 percent in the first
quarter of 2012, decreasing from 10.7 percent in the same period of
2011.
Income from Operations
Income from operations in the first quarter of 2012 was
$3.6 million, an increase of 105.7
percent compared to $1.7 million in
the corresponding period of 2011. This was mainly due to the
significant increase in student enrollment in online degree
programs coupled with well-enforced cost controlling measures and
cautious spending practices. Operating margin increased to 19.6
percent for the first quarter of 2012, compared to 11.9 percent in
the corresponding period of 2011.
Adjusted income from operations, a non-GAAP measure defined as
income from operations excluding share-based compensation,
amortization of intangible assets and land use rights, was
$4.1 million for the first quarter of
2012, an increase of 89.1 percent compared to $2.2 million in the corresponding period of
2011.
Adjusted operating margin, a non-GAAP measure defined as the
ratio of adjusted income from operations (non-GAAP) over net
revenue, for the first quarter of 2012 increased to 22.6 percent,
compared to 14.9 percent for the corresponding period of 2011.
Interest and Investment Income
Interest and investment income for the first quarter of 2012
increased 91.7 percent to $0.6
million, compared to $0.3
million for the corresponding quarter of 2011.
Income Tax Expense
In the first quarter of 2012, income tax expense was
$0.9 million and the effective income
tax rate was 20.9 percent, compared with an income tax expense of
$0.4 million and effective income tax
rate of 19.2 percent in same period of 2011. The Company had a
higher tax rate in the first quarter of 2012 due to the allowance
provided for deferred income tax assets, considering cumulative
historical losses at certain subsidiaries.
Net Income Attributable to Non-controlling
Interests
Net income attributable to non-controlling interests increased
to $1.7 million in the first quarter
of 2012, compared to $1.1 million in
the corresponding period in 2011.
Net Income Attributable to ChinaEdu
Net income attributable to ChinaEdu, which is net income,
excluding net income attributable to non-controlling interests, was
$1.6 million in the first quarter of
2012, representing an increase of 195.5 percent from $0.5 million in the corresponding period of
2011.
Net income attributable to ChinaEdu per basic and diluted ADS
was $0.104 and $0.098, respectively, for the first quarter of
2012, as compared to $0.035 and
$0.032, respectively, for the
corresponding period in 2011.
Adjusted net income attributable to ChinaEdu (non-GAAP) was
$2.1 million in the first quarter of
2012 compared to $1.0 million in the
corresponding period of 2011. Adjusted net margin, a non-GAAP
measure defined as the ratio of adjusted net income attributable to
ChinaEdu (non-GAAP) over net revenue, was 11.9 percent in the first
quarter of 2012, compared to 6.7 percent in the corresponding
period of 2011.
Adjusted net income attributable to ChinaEdu per basic and
diluted ADS (non-GAAP) was $0.136 and
$0.128, respectively, for the first
quarter of 2012, compared to $0.060
and $0.056, respectively, in the
corresponding period of 2011.
Deferred Revenue
As of March 31, 2012, deferred
revenue was $9.3 million, consisting
of current deferred revenue in the amount of $7.5 million and non-current deferred revenue in
the amount of $1.8 million. In
general, the Fall semester tuition is finally received during the
first quarter of the following year but is recognized both in the
fourth quarter of the current year and in the first quarter of the
following year. Private school revenue is received in September,
but is amortized over 6 or 12 months while online tutoring program
revenue can be received at program enrollment and is mostly
amortized within 12 months.
Cash and Cash Equivalents and Term Deposits
As of March 31, 2012, the Company
reported cash and cash equivalents and term deposits of
$55.5 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 represents cash owed to
the Company by collaborative alliance partners, were $37.5 million as of March
31, 2012 compared to $37.8
million as of December 31,
2011.
Second Quarter 2012 Guidance
ChinaEdu management expects total net revenue in the second
quarter of 2012 to range from RMB111 million
to RMB113 million or $17.6 million to
$17.8 million, representing a one percent to two percent
increase compared to the corresponding period in 2011. This
forecast reflects ChinaEdu's current and preliminary view, which is
subject to change.
Conference Call
ChinaEdu's management will hold an earnings conference call at
8:00 a.m. U.S. Eastern Time on
June 14, 2012 (8:00 p.m. Beijing/Hong Kong Time on June 14, 2012).
Dial-in details for the earnings conference call are as
follows:
|
International:
|
+6567239381
|
|
Hong Kong:
|
+85224750994
|
|
United
States:
|
+1 (718)
354-1231
|
|
Toll-free China,
Mobile:
|
4006208038
|
|
Toll-free
China:
|
8008190121
|
|
Toll-free United
States:
|
1 (866)
519-4004
|
|
Passcode:
|
82646278
|
A live and archived webcast of the conference call will be
available on the investor relations page of ChinaEdu's website at
http://ir.chinaedu.net and a replay of the conference call may be
accessed by phone until June 21,
2012.
Dial-in numbers for the replay are as follows:
|
Toll Free United
States:
|
+1 866 214
5335
|
|
International:
|
+1 718 354
1232
|
|
Conference
ID:
|
82646278
|
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. Adjusted operating margin
defined as the ratio of adjusted operating income from operation
over net revenue. Adjusted net income attributable to ChinaEdu per
basic and diluted ADS are a non-GAAP measure which are computed
using adjusted net income attributable to ChinaEdu over the number
of ADSs used in net income attributable to ChinaEdu per basic and
diluted ADS calculation.
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, support for international and elite curriculum
programs and online learning community for adult students.
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 18 long-term contracts that generally vary from 10 to
50 years in length. ChinaEdu also performs recruiting services for
22 universities through nationwide learning center 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, 2011, 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.
For investor and media inquiries, please contact:
Helen Plummer
Senior Investor Relations Coordinator
ChinaEdu Corporation
Phone: +86 13911672124
E-mail: helen@chinaedu.net
Jin Yu
Investor Relations Manager
ChinaEdu Corporation
Phone: +86 15711096022
E-mail: jinyu@chinaedu.net
|
ChinaEdu
Corporation
|
|
|
|
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
(in thousands,
unaudited)
|
December
31,2011
|
March
31,2012
|
March
31,2012
|
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
273,746
|
275,691
|
43,778
|
|
Term
deposits
|
98,163
|
74,028
|
11,755
|
|
Short-term
investments
|
34,648
|
24,649
|
3,914
|
|
Accounts receivable,
net
|
31,478
|
22,299
|
3,541
|
|
Prepaid expenses and
other current assets
|
22,725
|
24,939
|
3,961
|
|
Amounts due from related
parties
|
238,016
|
236,178
|
37,503
|
|
Deferred tax
assets-current
|
5,697
|
1,520
|
241
|
|
Total current
assets
|
704,473
|
659,304
|
104,693
|
|
Deferred tax
assets-non-current
|
8,217
|
9,838
|
1,562
|
|
Rental
deposits
|
2,213
|
1,742
|
277
|
|
Land use
rights
|
26,657
|
26,505
|
4,209
|
|
Property and equipment,
net
|
239,210
|
232,882
|
36,980
|
|
Deposits paid for
acquisition of property and equipment
|
17,902
|
17,902
|
2,843
|
|
Acquired intangible
assets, net
|
63,638
|
62,653
|
9,949
|
|
Goodwill
|
43,255
|
43,255
|
6,869
|
|
Total
assets
|
1,105,565
|
1,054,081
|
167,382
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIE
without recourse to the Group of 1,975 and 4,579 as of
December 31,
2011 and March 31, 2012)
|
2,239
|
4,738
|
752
|
|
Deferred
revenues-current (including deferred revenues of the
consolidated VIE without recourse to the Group of
20,525 and 21,211
as of December 31, 2011 and March 31, 2012)
|
125,332
|
46,941
|
7,454
|
|
Accrued expenses and
other current liabilities (including accrued
expenses and
other current liabilities of the consolidated VIE without
recourse to the Group of 18,644 and 20,711 as of
December 31, 2011
and March 31, 2012)
|
91,980
|
97,956
|
15,555
|
|
Amounts due to related
parties (including amounts due to related parties
of the consolidated VIE without recourse to the
Group of 1,953 and
1,484 as of December 31, 2011 and March 31,
2012)
|
13,146
|
23,098
|
3,668
|
|
Income taxes payable
(including income taxes payable of the
consolidated VIE without recourse to the Group of
8,893 and 9,437 as
of December 31, 2011 and March 31, 2012)
|
51,448
|
40,846
|
6,486
|
|
Other taxes payable
(including other taxes payable of the consolidated
VIE without recourse to the Group of 3,047 and
3,268 as of December
31, 2011 and March 31, 2012)
|
21,970
|
17,010
|
2,701
|
|
Total current
liabilities
|
306,115
|
230,589
|
36,616
|
|
Deferred
revenues-non-current (including deferred revenues of the
consolidated VIE without recourse to the Group of
33 and 31 as of
December 31, 2011 and March 31, 2012)
|
12,059
|
11,459
|
1,820
|
|
Deferred tax
liabilities-non-current (including deferred tax liabilities of
the
consolidated VIE without recourse to the Group of
1,017 and 1,007 as
of December 31, 2011 and March 31, 2012)
|
9,243
|
9,043
|
1,436
|
|
Unrecognized tax benefit
(including unrecognized tax benefit of the
consolidated VIE without recourse to the Group of
2,364 and 2,641 as
of December 31, 2011 and March 31, 2012)
|
6,089
|
6,729
|
1,069
|
|
Total
liabilities
|
333,506
|
257,820
|
40,941
|
|
|
|
|
|
|
ChinaEdu shareholders' equity
|
604,806
|
617,112
|
97,993
|
|
Noncontrolling
interests
|
167,253
|
179,149
|
28,448
|
|
Total
equity
|
772,059
|
796,261
|
126,441
|
|
Total liabilities and
equity
|
1,105,565
|
1,054,081
|
167,382
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
Unaudited Condensed
Consolidated Statements of Operations
|
|
|
|
|
Three Months
Ended
|
|
(in thousands, except for percentage, share, and per share information)
|
|
March
31,2011
|
|
March
31,2012
|
|
March
31,2012
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Gross Revenue
*
|
|
95,862
|
|
119,632
|
|
18,997
|
|
|
|
|
|
|
|
|
Business Tax
|
|
4,512
|
|
5,705
|
|
906
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
Online degree
programs
|
|
71,665
|
|
91,927
|
|
14,597
|
|
Online tutoring
programs
|
|
5,656
|
|
6,009
|
|
954
|
|
Private primary and
secondary schools
|
|
11,240
|
|
13,536
|
|
2,150
|
|
International and elite
curriculum programs
|
|
2,789
|
|
2,455
|
|
390
|
|
Total net
revenue
|
|
91,350
|
|
113,927
|
|
18,091
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Online degree
programs
|
|
26,712
|
|
30,319
|
|
4,814
|
|
Online tutoring
programs
|
|
2,013
|
|
2,721
|
|
432
|
|
Private primary and
secondary schools
|
|
8,361
|
|
9,806
|
|
1,557
|
|
International and elite
curriculum programs
|
|
2,665
|
|
2,663
|
|
423
|
|
Total cost of
revenue
|
|
39,751
|
|
45,509
|
|
7,226
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
Online degree
programs
|
|
44,953
|
|
61,608
|
|
9,783
|
|
Online tutoring
programs
|
|
3,643
|
|
3,288
|
|
522
|
|
Private primary and
secondary schools
|
|
2,879
|
|
3,730
|
|
593
|
|
International and elite
curriculum programs
|
|
124
|
|
(208)
|
|
(33)
|
|
Total gross
profit
|
|
51,599
|
|
68,418
|
|
10,865
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
62.7%
|
|
67.0%
|
|
67.0%
|
|
Online tutoring
programs
|
|
64.4%
|
|
54.7%
|
|
54.7%
|
|
Private primary and
secondary schools
|
|
25.6%
|
|
27.6%
|
|
27.6%
|
|
International and elite
curriculum programs
|
|
4.4%
|
|
(8.5%)
|
|
(8.5%)
|
|
Gross margin
|
|
56.5%
|
|
60.1%
|
|
60.1%
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
|
21,897
|
|
25,810
|
|
4,098
|
|
Selling and
marketing
|
|
9,068
|
|
10,463
|
|
1,661
|
|
Research and
development
|
|
9,758
|
|
9,777
|
|
1,553
|
|
Total operating
expenses
|
|
40,723
|
|
46,050
|
|
7,312
|
|
Income from
operations
|
|
10,876
|
|
22,368
|
|
3,553
|
|
Operating
margin
|
|
11.9%
|
|
19.6%
|
|
19.6%
|
|
|
|
|
|
|
|
|
Other income
|
|
123
|
|
247
|
|
39
|
|
Interest
income
|
|
1,910
|
|
2,988
|
|
474
|
|
Investment
income
|
|
-
|
|
674
|
|
107
|
|
Income before income
tax
|
|
12,909
|
|
26,277
|
|
4,173
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(2,475)
|
|
(5,483)
|
|
(871)
|
|
Net income
|
|
10,434
|
|
20,794
|
|
3,302
|
|
Net income attributable
to the noncontrolling interests
|
|
(6,940)
|
|
(10,469)
|
|
(1,662)
|
|
Net income attributable
to ChinaEdu
|
|
3,494
|
|
10,325
|
|
1,640
|
|
Net margin
|
|
3.8%
|
|
9.1%
|
|
9.1%
|
|
|
|
|
|
|
|
|
Net income attributable
to ChinaEdu per ADS:
|
|
|
|
|
|
|
|
Basic
|
|
0.22
|
|
0.66
|
|
0.104
|
|
Diluted
|
|
0.20
|
|
0.62
|
|
0.098
|
|
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
15,910,224
|
|
15,746,005
|
|
15,746,005
|
|
Diluted
|
|
17,229,640
|
|
16,761,137
|
|
16,761,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Gross revenue are
detailed as follows
|
|
|
|
|
|
|
|
Online degree
programs
|
|
75,809
|
|
97,318
|
|
15,453
|
|
Online tutoring
programs
|
|
5,850
|
|
6,157
|
|
978
|
|
Private primary and
secondary schools
|
|
11,252
|
|
13,558
|
|
2,153
|
|
International and elite
curriculum programs
|
|
2,951
|
|
2,599
|
|
413
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
|
|
Unaudited Condensed
Consolidated Statements of Comprehensive
Income
|
|
|
|
Three Months
Ended
|
|
(in thousands,
unaudited)
|
|
March
31,2011
|
|
March
31,2012
|
|
March
31,2012
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net income
|
|
10,434
|
|
20,794
|
|
3,302
|
|
Other comprehensive
income, net of tax
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
332
|
|
7
|
|
1
|
|
Change in fair
value of available for sale investments
|
|
(163)
|
|
237
|
|
38
|
|
Comprehensive
income
|
|
10,603
|
|
21,038
|
|
3,341
|
|
Less: comprehensive
income attributable to the noncontrollng interest
|
|
7,988
|
|
10,446
|
|
1,659
|
|
Comprehensive income
attributable to ChinaEdu
|
|
2,615
|
|
10,592
|
|
1,682
|
|
ChinaEdu
Corporation
|
|
|
|
Unaudited Condensed
Consolidated Statements of Cash Flow
|
|
|
|
Three Months
Ended
|
|
(in thousands,
unaudited)
|
|
March
31,2011
|
|
March
31,2012
|
|
March
31,2012
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
|
|
10,434
|
|
20,794
|
|
3,302
|
|
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Share-based compensation
|
|
1,555
|
|
2,219
|
|
352
|
|
Depreciation and amortization of property and
equipment
|
|
5,787
|
|
6,304
|
|
1,001
|
|
Amortization of land use rights
|
|
152
|
|
152
|
|
24
|
|
Amortization of acquired intangible assets
|
|
1,017
|
|
985
|
|
156
|
|
Loss (gain) on sale of investment
|
|
16
|
|
(69)
|
|
(11)
|
|
Provision for Accounts Receivable
|
|
-
|
|
340
|
|
54
|
|
Loss from disposal of property and equipment
|
|
65
|
|
812
|
|
129
|
|
Changes in assets and liabilities
|
|
|
|
|
|
|
|
Accounts receivable
|
|
19,796
|
|
8,839
|
|
1,404
|
|
Inventory
|
|
(2)
|
|
-
|
|
-
|
|
Prepaid expenses and other current assets
|
|
(489)
|
|
(2,213)
|
|
(350)
|
|
Amounts due from related parties
|
|
72,795
|
|
1,838
|
|
292
|
|
Rental deposits
|
|
(1,317)
|
|
471
|
|
75
|
|
Accounts payable
|
|
1,321
|
|
2,514
|
|
399
|
|
Deferred revenues
|
|
(61,272)
|
|
(78,991)
|
|
(12,543)
|
|
Accrued expenses and other current liabilities
|
|
(6,952)
|
|
5,974
|
|
950
|
|
Amounts due to related parties
|
|
(12,945)
|
|
9,952
|
|
1,580
|
|
Income tax payable
|
|
(11,259)
|
|
(10,602)
|
|
(1,684)
|
|
Other taxes payable
|
|
(6,974)
|
|
(4,960)
|
|
(788)
|
|
Deferred income taxes
|
|
1,047
|
|
2,356
|
|
374
|
|
Unrecognized tax benefit
|
|
596
|
|
640
|
|
102
|
|
Net cash provided by
(used in) operating activities
|
|
13,371
|
|
(32,645)
|
|
(5,182)
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(7,921)
|
|
(803)
|
|
(128)
|
|
Proceeds from discontinued operations
|
|
233
|
|
-
|
|
-
|
|
Purchase of/ mature of term deposits
|
|
(43,000)
|
|
24,135
|
|
3,832
|
|
Purchase of investments
|
|
(6,000)
|
|
-
|
|
-
|
|
Proceeds from the sale of investment
|
|
-
|
|
10,318
|
|
1,638
|
|
Net cash (used in)
provided by investing activities
|
|
(56,688)
|
|
33,650
|
|
5,342
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Cash dividends paid to noncontrolling shareholders
|
|
(10,521)
|
|
-
|
|
-
|
|
Capital contributions by noncontrolling
shareholders
|
|
1,000
|
|
-
|
|
-
|
|
Proceeds from exercise of share options
|
|
280
|
|
945
|
|
150
|
|
Loan from related party
|
|
35,500
|
|
-
|
|
-
|
|
Net cash provided by
financing activities
|
|
26,259
|
|
945
|
|
150
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
151
|
|
(5)
|
|
(1)
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
|
190,493
|
|
273,746
|
|
43,469
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
|
173,586
|
|
275,691
|
|
43,778
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(16,907)
|
|
1,945
|
|
309
|
|
ChinaEdu
Corporation
|
|
|
Unaudited
reconciliations from income from operations to adjusted income from
operations (non-GAAP) and adjusted operating margin
(non-GAAP)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
(in thousands,
unaudited)
|
|
March
31,2011
|
|
March
31,2012
|
|
March
31,2012
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Net revenue
|
|
91,350
|
|
113,927
|
|
18,091
|
|
Income from
operations
|
|
10,876
|
|
22,368
|
|
3,553
|
|
Adjustment:
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,555
|
|
2,219
|
|
352
|
|
Amortization of intangible assets and land use rights
|
|
1,169
|
|
1,137
|
|
180
|
|
Adjusted income from
operations (non-GAAP)
|
|
13,600
|
|
25,724
|
|
4,085
|
|
Adjusted operating
margin (non-GAAP)
|
|
14.9%
|
|
22.6%
|
|
22.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
|
|
Unaudited
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
|
|
(in thousands,
unaudited)
|
|
March
31,2011
|
|
March
31,2012
|
|
March
31, 2012
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Net revenue
|
|
91,350
|
|
113,927
|
|
18,091
|
|
Net income attributable
to ChinaEdu
|
|
3,494
|
|
10,325
|
|
1,640
|
|
Adjustment:
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,555
|
|
2,219
|
|
352
|
|
Share-based
compensation attributable to the noncontrolling
interest
|
|
(134)
|
|
(177)
|
|
(28)
|
|
Amortization of intangible assets and land use rights
|
|
1,169
|
|
1,137
|
|
180
|
|
Adjusted net income
attributable to ChinaEdu (non-GAAP)
|
|
6,084
|
|
13,504
|
|
2,144
|
|
Adjusted net margin
(non-GAAP)
|
|
6.7%
|
|
11.9%
|
|
11.9%
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to ChinaEdu per ADS (non-GAAP):
|
|
|
|
|
|
|
|
Basic
|
|
0.38
|
|
0.86
|
|
0.136
|
|
Diluted
|
|
0.35
|
|
0.81
|
|
0.128
|
|
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
15,910,224
|
|
15,746,005
|
|
15,746,005
|
|
Diluted
|
|
17,229,640
|
|
16,761,137
|
|
16,761,137
|
|
[1] The reporting
currency of the Company is RMB, but for the convenience of the
reader, the amounts for the three months ended on March 31, 2012
are presented in U.S. dollars. Unless otherwise stated, all
translations from RMB to U.S. dollars were made at the rate of
RMB6.2975 to $1.00, the noon buying rate in effect on March 31,
2012 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 net income
attributable to ChinaEdu" is a non-GAAP measure defined as net
income attributable to ChinaEdu excluding share-based compensation
net of non-controlling interests' portion, and amortization of
intangible assets and land use rights.
|
|
[3] "ADS" is American
Depositary Share. Each ADS represents three ordinary
shares.
|
|
[4] "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 the number of ADSs used in net income attributable to
ChinaEdu per diluted ADS calculation.
|
|
[5] "Revenue students"
refers to students of university online degree programs who have
paid tuitions. The numbers for the three months ended March 31,
2012 and 2011 are revenue students in Fall 2011 and Fall 2010,
respectively.
|
|
[6] Proprietary centers
refer to self-owned learning centers operated either under the
Company's own brand name or the brand name of a university pursuant
to a licensing arrangement with that university.
|
|
[7] Contracted centers
refer to agreement with third party learning centers pursuant to
which the Company only provides assistance in applying for approval
from provincial level education authorities as well as securing
additional university online degree programs. In return, the
Company receives a percentage of the tuition earned by these third
party learning centers.
|
SOURCE ChinaEdu Corporation