BEIJING, Dec. 19, 2012 /PRNewswire/ -- ChinaEdu
Corporation (NASDAQ: CEDU) ("ChinaEdu" or the "Company"), a leading
online educational services provider in China, today announced its unaudited financial
results for the third quarter and nine months ended September 30, 2012.[1]
Third Quarter 2012 Highlights
- Total net revenue for the third quarter of 2012 was
$19.7 million, an 8.7 percent
increase from $18.1 million in the
corresponding period in 2011.
- Net revenue from online degree programs was $15.8 million, an increase of 9.4 percent from
$14.4 million in the corresponding
period of 2011.
- Net income attributable to ChinaEdu was $0.5 million. There was a non-cash intangible
assets impairment charge of $0.9
million and a related deferred income tax impact of
$0.6 million in the third quarter of
2012.
- Adjusted net income attributable to ChinaEdu[2] was
$1.9 million.
- Net income attributable to ChinaEdu per diluted ADS[3] was
$0.030. The non-cash intangible
assets impairment charge and related deferred income tax impact
affected net income attributable to ChinaEdu per diluted ADS by
$0.091.
- Adjusted net income attributable to ChinaEdu per diluted ADS[4]
was $0.115.
- Operating margin in the third quarter of 2012 was 20.3 percent
excluding the intangible assets impairment charge.
- The number of revenue students[5] in online degree programs
during the Spring 2012 semester increased roughly 21.4 percent
year-over-year to approximately 193,000 students.
[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, 2012 are presented in U.S. dollars. Unless otherwise
stated, all translations from RMB to U.S. dollars were made at
the rate of RMB6.2848 to $1.00, the noon buying rate in effect on
September 30, 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, amortization of
intangible assets and land use rights, and impairment
charges.
|
[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 September 30,
2012 and 2011 are revenue students in Spring 2012 and Spring 2011,
respectively.
|
Julia Huang, executive chairman
of ChinaEdu commented, "We are pleased with our performance in the
third quarter, particularly our ability to increase gross
margin to 61.0 percent. We continue to see healthy growth in
our online degree programs and are making efforts to build our
online professional and certification training programs to help
narrow the gap between the skills of the workforce and present-day
employers' needs. We are also working to improve our interactive
learning capability by integrating mobile and social network
applications into our K-12 programs. As these programs begin to
benefit from our focus on technology-supported interactive
learning, we will look for ways to integrate the platforms into our
adult training and degree offerings. At the same time, we continue
to closely monitor and control costs across our businesses,
enabling us to deliver yet another successful quarter. As we look
towards the close of 2012, we are confident in the full year
results we will deliver and we are optimistic about the year
ahead."
Financial Results for the Third Quarter
Ended September 30,
2012
Net Revenue
Total net revenue for the third quarter of 2012 was $19.7 million, an 8.7 percent increase from
$18.1 million in the corresponding
period in 2011.
Net revenue from online degree programs for the third quarter of
2012 was $15.8 million, a 9.4 percent
increase from $14.4 million in the
corresponding period in 2011. As seen in the previous quarter, the
increase in net revenue from online degree programs in the third
quarter was primarily due to organic growth in revenue students
enrolled in core online degree programs. Some growth was also
attributed to greater revenue contribution from our learning
centers network and increased revenue contribution from our online
non-degree training programs. Enrollment for online degree programs
in the Spring 2012 semester was approximately 193,000 revenue
students, an increase of 21.4 percent from approximately 159,000
revenue students in the Spring 2011 semester.
As of September 30 2012,
ChinaEdu's learning centers network was providing recruiting
services for 22 universities with 116 operational learning centers,
of which 55 were proprietary centers[6] and 61 were contracted
centers[7]. This compares to 103 operational learning centers as of
September 30, 2011, of which 59 were
proprietary and 44 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 third quarter of 2012 was
$3.9 million, a 6.0 percent increase
from $3.7 million in the third
quarter of 2011. The growth was mainly driven by increased
enrollment at our private schools in Anqing and Pingdingshan as
well as an increase in tuition at our Anqing private school.
[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.
|
Cost of Revenue
Total cost of revenue for the third quarter of 2012 was
$7.7 million, representing an
increase of 1.5 percent, compared to $7.6
million in the corresponding period of 2011.
Cost of revenue for online degree programs in the third quarter
of 2012 was $5.4 million, an increase
of 7.5 percent from $5.0 million in
the corresponding period of 2011. The increase in cost of revenue
was primarily due to an increase in staff costs that resulted from
a headcount increase across the Company.
Cost of revenue for non-degree programs in the third quarter of
2012 was $2.3 million, a decrease of
10.5 percent from $2.5 million in the
third quarter of 2011. The decrease in cost of revenue in this area
was mainly due to decreases in employee costs and leasing costs
related to our international and elite curriculum programs.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2012 was $12.0 million, compared to $10.6 million in the corresponding period of
2011. Gross margin increased to 61.0 percent, compared to 58.2
percent in the corresponding period in 2011.
Gross margin for online degree programs increased to 65.7
percent for the third quarter of 2012, compared to 65.1 percent in
the corresponding period of 2011.
Gross margin for private schools increased to 40.3 percent,
compared to 29.4 percent in the corresponding period in 2011. The
increase was primarily due to increased student enrollment at our
private schools in Anqing and Pingdingshan as well as a tuition
increase at the Anqing school.
Gross margin for online tutoring programs decreased to 63.9
percent from 65.6 percent in third quarter of 2011, largely due to
decreased barter transaction revenue.
Operating Expenses
Total operating expenses were $9.0
million in the third quarter of 2012, representing a 16.3
percent increase from $7.7 million in
the corresponding period in 2011. As a percentage of net revenue,
total operating expenses increased to 45.5 percent, compared to
42.5 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 third quarter of
2012 were $4.3 million, an increase
of 16.6 percent compared to $3.7
million in the corresponding period in 2011. The increase
was mainly the result of an early termination fee related to a
lease agreement and an increase in conference fees and travel fees.
As a percentage of net revenue, general and administrative expenses
increased to 22.0 percent, compared with 20.5 percent in the same
period in 2011.
- Selling and marketing expenses were $2.0
million in the third quarter of 2012,a decrease of 13.7
percent compared to $2.3 million in
the corresponding period in 2011. The decrease was primarily
attributable to a significant decrease in marketing activities
surrounding international and elite curriculum programs. As a
percentage of net revenue, selling and marketing expenses decreased
to 9.9 percent, compared with 12.5 percent in the same period in
2011.
- Research and development expenses for the third quarter of 2012
were $1.7 million, flat with the
corresponding period in 2011. As a percentage of net revenue, the
research and development expense was 8.8 percent in the third
quarter of 2012, decreasing from 9.5 percent in the same period in
2011.
- The Company incurred an intangible asset impairment charge in
relation to the BCIT (British Columbia Institute of Technology) and
FEC (Friendly Experimental Class) programs in the international and
elite curriculum division in the third quarter of 2012, resulting
in an aggregate non-cash charge of $0.9
million (RMB5.9 million). The
Company does not plan to enter into new cooperative agreements such
as these in the near future. Due to the projection that
demonstrated the operation from the FEC program and continuing
losses from the BCIT programs, the Company believes that the
intangible assets carrying amount associated with the BCIT and FEC
programs may not be recoverable. The fair value for the intangible
assets of these programs is less than the carrying value as of
September 30, 2012, resulting in
impairment of these two programs in the current quarter. The excess
carrying value of the intangible assets over its fair value is
recognized as an impairment loss.
Income from Operations
Income from operations in the third quarter of 2012 was
$3.1 million, an increase of 7.3
percent compared to $2.8 million in
the corresponding period of 2011. The increase was mainly due to an
increase in student enrollment in online degree programs in the
Spring semester as well as increased enrollment at our private
schools. Operating margin decreased very slightly to 15.5 percent
in the third quarter of 2012, compared to 15.7 percent in the
corresponding period of 2011. The non-cash intangible assets
impairment charge affected income from operations by $0.9 million.
Adjusted income from operations, a non-GAAP measure defined as
income from operations excluding share-based compensation,
amortization of intangible assets, land use rights, and impairment
charges, was $4.5 million for the
third quarter of 2012, an increase of 36.0 percent compared to
$3.3 million in the corresponding
period of 2011.
Adjusted operating margin, a non-GAAP measure defined as the
ratio of adjusted income from operations over net revenue, for the
third quarter of 2012 increased to 22.7 percent, compared to 18.2
percent in the corresponding period of 2011.
Interest and Investment Income
Interest and investment income for the third quarter of 2012
increased 112.6 percent to $0.7
million, compared to $0.3
million for the corresponding quarter of 2011.
Income Tax Expense
In the third quarter of 2012, the income tax expense was
$1.5 million and the effective income
tax rate calculated without consideration for the impairment charge
was 31.5 percent. This compares with an income tax expense of
$0.5 million and effective income tax
rate of 14.2 percent in same period of 2011. The increase in income
tax expense is attributable to the provision of valuation allowance
of the deferred tax assets that arose in the carrying losses in the
international and elite programs.
Net Income Attributable to Non-controlling
Interests
Net income attributable to non-controlling interests was to
$1.8 million in the third quarter of
2012, flat with 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
$0.5 million in the third quarter of
2012, representing a decrease of 47.5 percent from $0.9 million in the corresponding period of 2011.
The non-cash intangible assets impairment charge and related
deferred income tax impact affected net income attributable to
ChinaEdu by $0.9 million and
$0.6 million respectively.
Net income attributable to ChinaEdu per basic and diluted ADS
was $0.031 and $0.030, respectively, for the third quarter of
2012, compared to $0.060 and
$0.057, respectively, for the
corresponding period in 2011. The non-cash intangible assets
impairment charge and related deferred income tax impact affected
net income attributable to ChinaEdu per basic and diluted ADS by
$0.096 and $0.091, respectively.
Adjusted net income attributable to ChinaEdu was $1.9 million in the third quarter of 2012
compared to $1.4 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 over net revenue, was 9.7 percent in the third quarter of
2012, compared to 7.6 percent in the corresponding period of 2011.
The non-cash intangible assets impairment charge and related
deferred income tax impact affected adjusted net income
attributable to ChinaEdu by $0.9
million and $0.6 million,
respectively, which affected adjusted net margin by 2.9
percent.
Adjusted net income attributable to ChinaEdu per basic and
diluted ADS was $0.120 and
$0.115, respectively, for the third
quarter of 2012, compared to $0.088
and $0.083, respectively, in the
corresponding period of 2011. The non-cash intangible assets
impairment charge and related deferred income tax impact affected
adjusted net income attributable to ChinaEdu per basic and diluted
ADS by $0.037 and $0.035, respectively.
Deferred Revenue
As of September 30, 2012, deferred
revenue was $10.0 million, consisting
of current deferred revenue in the amount of $8.3 million and non-current deferred revenue in
the amount of $1.7 million.
Spring semester tuition is generally received during the second
quarter but is recognized both in the second quarter and the third
quarter of the calendar year. Service fees are amortized within the
service period.
Private school revenue is generally received in September, but
is amortized over 6 or 12 months. 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 September 30, 2012, the
Company had cash and cash equivalents and term deposits of
$63.0 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 $41.0 million as of September 30, 2012 compared to $37.9 million as of September 30, 2011.
2012 Year-to-Date Financial Results
Net Revenue
For the nine months ended September 30,
2012, total net revenue was $56.1
million, representing an increase of 11.9 percent over
$50.2 million in the corresponding
period in 2011. Net revenue from online degree programs for the
first nine months of 2012 was $45.0
million, representing a 13.1 percent increase from
$39.8 million in the corresponding
period in 2011. Net revenue from non-online degree programs for the
first nine months of 2012 was $11.1
million, compared to $10.3
million in 2011, a 7.3 percent increase. Growth in total net
revenue was attributable to strong enrollment in online degree
programs in the Fall semester of 2011 and Spring semester of 2012,
particularly within the learning centers network. Growth in net
revenue at the Anqing School increased, while the Company saw a
decrease in revenue contributed by 101 online tutoring programs and
international and elite curriculum programs.
Cost of Revenue
For the nine months ended September 30,
2012, total cost of revenue was $22.4
million, an increase from $20.9
million in the corresponding period in 2011. Cost of revenue
for online degree programs in the first nine months of 2012 was
$15.2 million, an increase of 8.6
percent compared to $14.0 million in
the corresponding period of 2011. The increase was primarily due to
cost increases in headcount as well as expansion of the Company's
learning centers network.
Cost of revenue for non-online degree programs in the first nine
months of 2012 was $7.2 million, an
increase of 4.0 percent compared to $7.0
million in the corresponding period of 2011. The increase in
cost of revenue was primarily related to employee costs, leasing
costs and service costs 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. Cost of revenue for international and elite
curriculum programs decreased as those programs have grown smaller
over the course of the year.
Gross Profit
Gross profit for the nine months ended September 30, 2012 was $33.7 million, an increase of 15.3 percent
compared with $29.2 million for the
corresponding period in 2011. The increase was primarily due to an
increase in gross margin across online degree programs and private
school programs.
Income from Operations
Income from operations was $10.2
million for the nine months ended September 30, 2012, representing an increase of
41.2 percent from $7.2 million for
the corresponding period in 2011. Operating margin was 18.2 percent
for the nine months ended September 30,
2012 compared to 14.4 percent for the corresponding period
in 2011. The non-cash intangible assets impairment charge affected
income from operations and operating margin by $0.9 million and 1.7 percent, respectively.
Adjusted income from operations was $12.7
million for the first nine months of 2012, representing an
increase of 47.9 percent, compared to $8.6
million in the corresponding period of 2011. Adjusted
operating margin for the nine months ended September 30, 2012 was 22.6 percent, compared to
17.1 percent for the corresponding period in 2011.
Interest Income and Investment Income
Interest income and investment income increased 84.7 percent to
$2.0 million in the first nine months
of 2012, compared to $1.1 million in
the corresponding period of last year.
Income Tax Expense
Income tax expense for the first nine months of 2012 was
$3.3 million, as compared with
$1.5 million for the corresponding
period of last year.
Net Income Attributable to Non-controlling
Interests
Net income attributable to non-controlling interests was
$5.4 million in first nine months of
2012, an increase of 17.2 percent compared to $4.6 million in the first nine months of 2011.
The increase was primarily attributable to a non-controlling
interest impact related to the increase in net income from online
degree programs in the first nine months of 2012.
Net Income attributable to ChinaEdu
Net income attributable to ChinaEdu was $3.6 million for the nine months ended
September 30, 2012, representing an
increase of 57.0 percent from $2.3
million for the corresponding period in 2011. Net margin was
6.4 percent for the nine months ended September 30, 2012, compared to 4.6 percent for
the corresponding period in 2011. The non-cash intangible assets
impairment charge and related deferred income tax impact affected
net income attributable to ChinaEdu by $0.9
million and $0.6 million
respectively, which affected net margin for nine months ended
September 30, 2012 by 2.7
percent.
Adjusted net margin was 10.7 percent for the nine months ended
September 30, 2012, compared to 7.1
percent for the corresponding period of 2011. The increase was
primarily due to increased net profit in the first nine months of
2012. The non-cash intangible assets impairment charge and related
deferred income tax impact affected adjusted net margin for nine
months ended September 30, 2012 by
one percent.
Fourth Quarter 2012
Guidance
ChinaEdu management expects total net revenue in the fourth
quarter of 2012 to range from RMB124 million
to RMB129 million or $19.7 million to
$20.5 million, representing a three to seven 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
December 20, 2012 (9:00 p.m. Beijing/Hong Kong Time on December 20, 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:
|
79539648
|
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 December 27,
2012.
Dial-in numbers for the replay are as follows:
Toll Free United
States
|
+1 (855)
452-5696
|
International
|
+61 281990299
|
Conference
ID:
|
79539648
|
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, amortization of
intangible assets and land use rights and impairment charge.
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 entered into collaborative alliances with 12
universities, ranging from 10 to 50 years in length. The Company
has also entered into technology agreements with 6 universities.
Besides, ChinaEdu performs recruiting services for 22 universities
through nationwide learning center network.
Forward-Looking Statements
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: +1 908-442-9395
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
|
September 30,
2012
|
September 30,
2012
|
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
273,746
|
196,951
|
31,338
|
|
Term
deposits
|
98,163
|
199,028
|
31,668
|
|
Short-term
investments
|
34,648
|
23,420
|
3,726
|
|
Accounts receivable,
net
|
31,478
|
38,989
|
6,204
|
|
Prepaid expenses and
other current assets
|
22,725
|
26,234
|
4,174
|
|
Amounts due from related
parties
|
238,016
|
257,367
|
40,951
|
|
Deferred tax
assets-current
|
5,697
|
1,808
|
288
|
Total current
assets
|
704,473
|
743,797
|
118,349
|
|
Deferred tax
assets-non-current
|
8,217
|
4,264
|
678
|
|
Rental
deposits
|
2,213
|
1,480
|
235
|
|
Land use
rights
|
26,657
|
26,201
|
4,169
|
|
Property and equipment,
net
|
239,210
|
227,880
|
36,259
|
|
Deposits paid for
acquisition of property and equipment
|
17,902
|
17,902
|
2,848
|
|
Acquired intangible
assets, net
|
63,638
|
55,662
|
8,857
|
|
Goodwill
|
43,255
|
43,255
|
6,882
|
Total
assets
|
1,105,565
|
1,120,441
|
178,277
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable
(including accounts payable of the consolidated VIE without
recourse to the Group of 1,975 and 9,856 as of December 31,
2011 and September 30, 2012, respectively)
|
2,239
|
10,015
|
1,594
|
|
Deferred
revenues-current (including deferred revenues of the consolidated
VIE without recourse to the Group of 20,525 and 24,297 as of
December 31, 2011 and September 30, 2012, respectively)
|
125,332
|
51,851
|
8,250
|
|
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 25,601 as of December 31, 2011 and September
30, 2012, respectively)
|
91,980
|
119,415
|
19,000
|
|
Amounts due to related
parties (including amounts due to related parties of the
consolidated VIE without recourse to the Group of 1,953 and
2,008 as of December 31, 2011 and September 30, 2012,
respectively)
|
13,146
|
20,138
|
3,204
|
|
Income taxes payable
(including income taxes payable of the consolidated VIE without
recourse to the Group of 8,893 and 10,182 as of December 31, 2011
and September 30, 2012, respectively)
|
51,448
|
48,322
|
7,689
|
|
Other taxes payable
(including other taxes payable of the consolidated VIE without
recourse to the Group of 3,047 and 3,622 as of December 31, 2011
and September 30, 2012, respectively)
|
21,970
|
24,127
|
3,839
|
Total current
liabilities
|
306,115
|
273,868
|
43,576
|
|
Deferred
revenues-non-current (including deferred revenues of the
consolidated VIE without recourse to the Group of 33 and 29 as of
December 31, 2011 and September 30, 2012, respectively)
|
12,059
|
10,986
|
1,748
|
|
Deferred tax
liabilities-non-current (including deferred tax liabilities of the
consolidated VIE without recourse to the Group of 1,017 and 988 as
of December 31, 2011 and September 30, 2012,
respectively)
|
9,243
|
7,274
|
1,157
|
|
Unrecognized tax benefit
(including unrecognized tax benefit of the consolidated VIE without
recourse to the Group of 2,364 and 3,241 as of December 31, 2011
and September 30, 2012, respectively)
|
6,089
|
7,951
|
1,265
|
Total
liabilities
|
333,506
|
300,079
|
47,746
|
|
|
|
|
|
ChinaEdu shareholders' equity
|
604,806
|
634,576
|
100,970
|
|
Noncontrolling
interests
|
167,253
|
185,786
|
29,561
|
Total
equity
|
772,059
|
820,362
|
130,531
|
Total liabilities and
equity
|
1,105,565
|
1,120,441
|
178,277
|
ChinaEdu
Corporation
|
Unaudited Condensed
Consolidated Statements of Operations
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(in thousands, except
for percentage, share, and per share information)
|
|
September 30,
2011
|
|
June 30,
2012
|
|
September 30,
2012
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue
*
|
|
118,800
|
|
119,519
|
|
129,012
|
|
20,527
|
|
329,989
|
|
368,163
|
|
58,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Tax
|
|
4,880
|
|
4,486
|
|
5,192
|
|
826
|
|
14,688
|
|
15,383
|
|
2,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree programs
|
|
90,597
|
|
92,089
|
|
99,097
|
|
15,768
|
|
250,347
|
|
283,113
|
|
45,046
|
Online tutoring programs
|
|
6,792
|
|
6,389
|
|
6,025
|
|
958
|
|
19,698
|
|
18,423
|
|
2,931
|
Private primary and
secondary schools
|
|
12,445
|
|
13,815
|
|
16,311
|
|
2,596
|
|
35,565
|
|
43,662
|
|
6,948
|
International and elite
curriculum programs
|
|
4,086
|
|
2,740
|
|
2,387
|
|
379
|
|
9,691
|
|
7,582
|
|
1,207
|
Total net
revenue
|
|
113,920
|
|
115,033
|
|
123,820
|
|
19,701
|
|
315,301
|
|
352,780
|
|
56,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
31,597
|
|
31,035
|
|
33,982
|
|
5,407
|
|
87,809
|
|
95,336
|
|
15,169
|
Online tutoring
programs
|
|
2,334
|
|
2,700
|
|
2,178
|
|
347
|
|
6,424
|
|
7,599
|
|
1,209
|
Private primary and
secondary schools
|
|
8,782
|
|
10,205
|
|
9,740
|
|
1,550
|
|
25,538
|
|
29,751
|
|
4,734
|
International and elite
curriculum programs
|
|
4,902
|
|
3,020
|
|
2,422
|
|
385
|
|
11,735
|
|
8,105
|
|
1,290
|
Total cost of
revenue
|
|
47,615
|
|
46,960
|
|
48,322
|
|
7,689
|
|
131,506
|
|
140,791
|
|
22,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
59,000
|
|
61,054
|
|
65,115
|
|
10,361
|
|
162,538
|
|
187,777
|
|
29,877
|
Online tutoring
programs
|
|
4,458
|
|
3,689
|
|
3,847
|
|
611
|
|
13,274
|
|
10,824
|
|
1,722
|
Private primary and
secondary schools
|
|
3,663
|
|
3,610
|
|
6,571
|
|
1,046
|
|
10,027
|
|
13,911
|
|
2,214
|
International and elite
curriculum programs
|
|
(816)
|
|
(280)
|
|
(35)
|
|
(6)
|
|
(2,044)
|
|
(523)
|
|
(83)
|
Total gross
profit
|
|
66,305
|
|
68,073
|
|
75,498
|
|
12,012
|
|
183,795
|
|
211,989
|
|
33,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
65.1%
|
|
66.3%
|
|
65.7%
|
|
65.7%
|
|
64.9%
|
|
66.3%
|
|
66.3%
|
Online tutoring
programs
|
|
65.6%
|
|
57.7%
|
|
63.9%
|
|
63.9%
|
|
67.4%
|
|
58.8%
|
|
58.8%
|
Private primary and
secondary schools
|
|
29.4%
|
|
26.1%
|
|
40.3%
|
|
40.3%
|
|
28.2%
|
|
31.9%
|
|
31.9%
|
International and elite
curriculum programs
|
|
(20.0%)
|
|
(10.2%)
|
|
(1.5%)
|
|
(1.5%)
|
|
(21.1%)
|
|
(6.9%)
|
|
(6.9%)
|
Gross margin
|
|
58.2%
|
|
59.2%
|
|
61.0%
|
|
61.0%
|
|
58.3%
|
|
60.1%
|
|
60.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
23,320
|
|
24,251
|
|
27,182
|
|
4,325
|
|
69,829
|
|
77,243
|
|
12,290
|
Selling and
marketing
|
|
14,264
|
|
11,316
|
|
12,315
|
|
1,959
|
|
37,415
|
|
34,094
|
|
5,425
|
Research and
development
|
|
10,843
|
|
9,894
|
|
10,914
|
|
1,737
|
|
31,102
|
|
30,585
|
|
4,867
|
Intangible assets
impairment
|
|
-
|
|
-
|
|
5,901
|
|
939
|
|
-
|
|
5,901
|
|
939
|
Total operating
expenses
|
|
48,427
|
|
45,461
|
|
56,312
|
|
8,960
|
|
138,346
|
|
147,823
|
|
23,521
|
Income from
operations
|
|
17,878
|
|
22,612
|
|
19,186
|
|
3,052
|
|
45,449
|
|
64,166
|
|
10,209
|
Operating
margin
|
|
15.7%
|
|
19.7%
|
|
15.5%
|
|
15.5%
|
|
14.4%
|
|
18.2%
|
|
18.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
297
|
|
266
|
|
404
|
|
64
|
|
719
|
|
917
|
|
146
|
Interest
income
|
|
2,153
|
|
3,583
|
|
3,352
|
|
534
|
|
6,202
|
|
9,923
|
|
1,579
|
Investment
income
|
|
37
|
|
786
|
|
1,303
|
|
207
|
|
666
|
|
2,763
|
|
440
|
Income before income
tax
|
|
20,365
|
|
27,247
|
|
24,245
|
|
3,857
|
|
53,036
|
|
77,769
|
|
12,374
|
Income tax
expense
|
|
(2,897)
|
|
(5,831)
|
|
(9,510)
|
|
(1,513)
|
|
(9,353)
|
|
(20,824)
|
|
(3,314)
|
Net income
|
|
17,468
|
|
21,416
|
|
14,735
|
|
2,344
|
|
43,683
|
|
56,945
|
|
9,060
|
Net income attributable
to the noncontrolling interests
|
|
(11,514)
|
|
(12,124)
|
|
(11,611)
|
|
(1,847)
|
|
(29,195)
|
|
(34,204)
|
|
(5,442)
|
Net income attributable
to ChinaEdu
|
|
5,954
|
|
9,292
|
|
3,124
|
|
497
|
|
14,488
|
|
22,741
|
|
3,618
|
Net margin
|
|
5.2%
|
|
8.1%
|
|
2.5%
|
|
2.5%
|
|
4.6%
|
|
6.4%
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ChinaEdu per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.38
|
|
0.59
|
|
0.20
|
|
0.031
|
|
0.91
|
|
1.44
|
|
0.229
|
Diluted
|
|
0.36
|
|
0.55
|
|
0.19
|
|
0.030
|
|
0.85
|
|
1.36
|
|
0.216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
15,573,809
|
|
15,852,495
|
|
15,884,264
|
|
15,884,264
|
|
15,838,717
|
|
15,827,795
|
|
15,827,795
|
Diluted
|
|
16,720,855
|
|
16,927,279
|
|
16,625,395
|
|
16,625,395
|
|
16,983,130
|
|
16,771,477
|
|
16,771,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Gross revenue are
detailed as follows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
95,073
|
|
96,268
|
|
103,920
|
|
16,535
|
|
263,910
|
|
297,506
|
|
47,336
|
Online tutoring
programs
|
|
6,940
|
|
6,511
|
|
6,181
|
|
983
|
|
20,204
|
|
18,849
|
|
2,999
|
Private primary and
secondary schools
|
|
12,463
|
|
13,837
|
|
16,382
|
|
2,607
|
|
35,620
|
|
43,777
|
|
6,966
|
International and elite
curriculum programs
|
|
4,324
|
|
2,903
|
|
2,529
|
|
402
|
|
10,255
|
|
8,031
|
|
1,278
|
ChinaEdu
Corporation
|
Unaudited Condensed
Consolidated Statements of Comprehensive
Income
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(in thousands,
unaudited)
|
|
September 30,
2011
|
|
June 30,
2012
|
|
September 30,
2012
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
|
|
17,468
|
|
21,416
|
|
14,735
|
|
2,344
|
|
43,683
|
|
56,945
|
|
9,060
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
(1,984)
|
|
120
|
|
(121)
|
|
(19)
|
|
(1,898)
|
|
6
|
|
1
|
Change in fair
value of available for sale investments
|
|
904
|
|
205
|
|
515
|
|
82
|
|
727
|
|
957
|
|
152
|
Comprehensive
income
|
|
16,388
|
|
21,741
|
|
15,129
|
|
2,407
|
|
42,512
|
|
57,908
|
|
9,213
|
Less: comprehensive
income attributable to the noncontrollng interest
|
|
13,739
|
|
11,106
|
|
13,591
|
|
2,163
|
|
34,392
|
|
35,143
|
|
5,592
|
Comprehensive income attributable to ChinaEdu
|
|
2,649
|
|
10,635
|
|
1,538
|
|
244
|
|
8,120
|
|
22,765
|
|
3,621
|
ChinaEdu
Corporation
|
Unaudited Condensed
Consolidated Statements of Cash Flow
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(in thousands, unaudited)
|
|
September 30,
2011
|
|
June 30,
2012
|
|
September 30,
2012
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
17,468
|
|
21,416
|
|
14,735
|
|
2,344
|
|
43,683
|
|
56,945
|
|
9,060
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
1,619
|
|
1,892
|
|
1,885
|
|
300
|
|
4,823
|
|
5,996
|
|
954
|
Depreciation and amortization of property and
equipment
|
|
5,728
|
|
6,304
|
|
6,355
|
|
1,011
|
|
17,263
|
|
18,963
|
|
3,017
|
Amortization of land use rights
|
|
152
|
|
152
|
|
152
|
|
24
|
|
456
|
|
456
|
|
73
|
Amortization of acquired intangible assets
|
|
1,059
|
|
1,036
|
|
1,035
|
|
165
|
|
3,093
|
|
3,056
|
|
486
|
Intangible Assets impairment
|
|
-
|
|
-
|
|
5,901
|
|
939
|
|
-
|
|
5,901
|
|
939
|
Gain on sale of investment
|
|
-
|
|
(158)
|
|
-
|
|
-
|
|
(687)
|
|
(227)
|
|
(36)
|
Gain on disposal
|
|
-
|
|
-
|
|
(1,303)
|
|
(207)
|
|
-
|
|
(1,303)
|
|
(207)
|
Loss on sale of bonds
|
|
(37)
|
|
-
|
|
-
|
|
-
|
|
21
|
|
-
|
|
-
|
Loss on discontinued operations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16
|
|
-
|
|
-
|
Loss from disposal of property and equipment
|
|
55
|
|
16
|
|
586
|
|
93
|
|
137
|
|
1,414
|
|
225
|
Changes in assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
14,342
|
|
(24,932)
|
|
8,242
|
|
1,311
|
|
11,646
|
|
(7,851)
|
|
(1,249)
|
Inventory
|
|
-
|
|
-
|
|
-
|
|
-
|
|
358
|
|
-
|
|
-
|
Provision for Accounts Receivable
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
340
|
|
54
|
Prepaid expenses and other current assets
|
|
5,087
|
|
(377)
|
|
1,239
|
|
196
|
|
3,022
|
|
(1,351)
|
|
(215)
|
Amounts due from related parties
|
|
41,318
|
|
(65,981)
|
|
40,792
|
|
6,491
|
|
17,354
|
|
(23,351)
|
|
(3,715)
|
Rental deposits
|
|
(94)
|
|
(34)
|
|
296
|
|
47
|
|
(1,686)
|
|
733
|
|
117
|
Accounts payable
|
|
1,854
|
|
2,324
|
|
2,951
|
|
470
|
|
6,436
|
|
7,789
|
|
1,239
|
Deferred revenues
|
|
(72,711)
|
|
79,370
|
|
(74,887)
|
|
(11,916)
|
|
(59,257)
|
|
(74,508)
|
|
(11,855)
|
Accrued expenses and other current liabilities
|
|
7,943
|
|
3,167
|
|
17,532
|
|
2,791
|
|
18,164
|
|
26,673
|
|
4,245
|
Amounts due to related parties
|
|
(7,944)
|
|
(6,596)
|
|
8,265
|
|
1,315
|
|
(12,791)
|
|
11,621
|
|
1,849
|
Income tax payable
|
|
5,241
|
|
4,021
|
|
3,462
|
|
551
|
|
(2,483)
|
|
(3,119)
|
|
(496)
|
Other taxes payable
|
|
1,555
|
|
1,558
|
|
5,559
|
|
885
|
|
(2,018)
|
|
2,157
|
|
343
|
Deferred income taxes
|
|
(3,108)
|
|
608
|
|
2,909
|
|
463
|
|
(3,140)
|
|
5,873
|
|
934
|
Unrecognized tax benefit
|
|
473
|
|
586
|
|
637
|
|
101
|
|
1,731
|
|
1,863
|
|
296
|
Net cash provided by operating activities
|
|
20,000
|
|
24,372
|
|
46,343
|
|
7,374
|
|
46,141
|
|
38,070
|
|
6,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(3,810)
|
|
(2,071)
|
|
(6,283)
|
|
(1,000)
|
|
(18,086)
|
|
(9,157)
|
|
(1,457)
|
Proceeds from discontinued operations
|
|
-
|
|
-
|
|
4,000
|
|
636
|
|
233
|
|
4,000
|
|
636
|
Deposits paid for acquisition of property and
equipment
|
|
(444)
|
|
-
|
|
-
|
|
-
|
|
(14,990)
|
|
-
|
|
-
|
Purchase of/ maturity of term deposits
|
|
38,936
|
|
(122,000)
|
|
(3,000)
|
|
(477)
|
|
33,337
|
|
(100,865)
|
|
(16,049)
|
Purchase of investments
|
|
-
|
|
(12,571)
|
|
-
|
|
-
|
|
(17,000)
|
|
(12,571)
|
|
(2,000)
|
Proceeds from the sale of investment
|
|
1,674
|
|
14,634
|
|
-
|
|
-
|
|
10,361
|
|
24,952
|
|
3,970
|
Proceeds from the sale of bonds
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,859
|
|
-
|
|
-
|
Proceeds of exclusive contractual right
|
|
-
|
|
(980)
|
|
-
|
|
-
|
|
-
|
|
(980)
|
|
(156)
|
Proceeds of exclusive partnership
|
|
(1,960)
|
|
-
|
|
-
|
|
-
|
|
(1,960)
|
|
-
|
|
-
|
Proceeds from disposal of property and equipment
|
|
21
|
|
1
|
|
94
|
|
15
|
|
22
|
|
95
|
|
15
|
Net cash provided by (used in) investing activities
|
|
34,417
|
|
(122,987)
|
|
(5,189)
|
|
(826)
|
|
(5,224)
|
|
(94,526)
|
|
(15,041)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid to noncontrolling shareholders
|
|
-
|
|
(4,642)
|
|
(16,799)
|
|
(2,673)
|
|
(10,251)
|
|
(21,441)
|
|
(3,412)
|
Capital contributions by noncontrolling
shareholders
|
|
1,960
|
|
-
|
|
-
|
|
-
|
|
2,960
|
|
-
|
|
-
|
Capital contributions by shareholders
|
|
-
|
|
980
|
|
-
|
|
-
|
|
-
|
|
980
|
|
156
|
Proceeds from exercise of share options
|
|
204
|
|
2,777
|
|
16
|
|
3
|
|
578
|
|
3,738
|
|
595
|
Prepayment for shares repurchase
|
|
-
|
|
(886)
|
|
-
|
|
-
|
|
(130)
|
|
(886)
|
|
(141)
|
Repurchase and cancellation of ordinary shares
|
|
(1,026)
|
|
(385)
|
|
(2,343)
|
|
(373)
|
|
(6,749)
|
|
(2,728)
|
|
(434)
|
Repayment of loan from related party
|
|
(8,000)
|
|
-
|
|
(5,500)
|
|
(875)
|
|
(33,000)
|
|
(5,500)
|
|
(875)
|
Loan from related party
|
|
2,000
|
|
5,500
|
|
-
|
|
-
|
|
37,500
|
|
5,500
|
|
875
|
Net cash (used
in) provided by financing activities
|
|
(4,862)
|
|
3,344
|
|
(24,626)
|
|
(3,918)
|
|
(9,092)
|
|
(20,337)
|
|
(3,236)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(9)
|
|
(6)
|
|
9
|
|
2
|
|
103
|
|
(2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS,
beginning of period
|
|
172,875
|
|
275,691
|
|
180,414
|
|
28,706
|
|
190,493
|
|
273,746
|
|
43,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS,
end of period
|
|
222,421
|
|
180,414
|
|
196,951
|
|
31,338
|
|
222,421
|
|
196,951
|
|
31,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
|
49,546
|
|
(95,277)
|
|
16,537
|
|
2,632
|
|
31,928
|
|
(76,795)
|
|
(12,219)
|
ChinaEdu
Corporation
|
Unaudited
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,
2011
|
|
June 30,
2012
|
|
September 30,
2012
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
113,920
|
|
115,033
|
|
123,820
|
|
19,701
|
|
315,301
|
|
352,780
|
|
56,132
|
Income from
operations
|
|
17,878
|
|
22,612
|
|
19,186
|
|
3,052
|
|
45,449
|
|
64,166
|
|
10,209
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,619
|
|
1,892
|
|
1,885
|
|
300
|
|
4,823
|
|
5,996
|
|
954
|
Amortization of
intangible assets and land use rights
|
|
1,211
|
|
1,188
|
|
1,187
|
|
189
|
|
3,549
|
|
3,512
|
|
559
|
Intangible assets
impairment
|
|
-
|
|
-
|
|
5,901
|
|
939
|
|
-
|
|
5,901
|
|
939
|
Adjusted income from operations(non-GAAP)
|
|
20,708
|
|
25,692
|
|
28,159
|
|
4,480
|
|
53,821
|
|
79,575
|
|
12,661
|
Adjusted operating
margin (non-GAAP)
|
|
18.2%
|
|
22.3%
|
|
22.7%
|
|
22.7%
|
|
17.1%
|
|
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
|
|
Nine Months
Ended
|
(in thousands,
unaudited)
|
|
September 30,
2011
|
|
June 30,
2012
|
|
September 30,
2012
|
|
September 30,
2012
|
|
September 30,
2011
|
|
September 30,
2012
|
|
September 30,
2012
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
113,920
|
|
115,033
|
|
123,820
|
|
19,701
|
|
315,301
|
|
352,780
|
|
56,132
|
Net income (loss) attributable to ChinaEdu
|
|
5,954
|
|
9,292
|
|
3,124
|
|
497
|
|
14,488
|
|
22,741
|
|
3,618
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
1,619
|
|
1,892
|
|
1,885
|
|
300
|
|
4,823
|
|
5,996
|
|
954
|
Share-based
compensation attributable to the noncontrolling interest
|
|
(122)
|
|
(110)
|
|
(82)
|
|
(13)
|
|
(376)
|
|
(369)
|
|
(59)
|
Amortization of
intangible assets and land use rights
|
|
1,211
|
|
1,188
|
|
1,187
|
|
189
|
|
3,549
|
|
3,512
|
|
559
|
Intangible assets
impairment
|
|
-
|
|
-
|
|
5,901
|
|
939
|
|
-
|
|
5,901
|
|
939
|
Adjusted net income
attributable to ChinaEdu (non-GAAP)
|
|
8,662
|
|
12,262
|
|
12,015
|
|
1,912
|
|
22,484
|
|
37,781
|
|
6,011
|
Adjusted net margin
(non-GAAP)
|
|
7.6%
|
|
10.7%
|
|
9.7%
|
|
9.7%
|
|
7.1%
|
|
10.7%
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to ChinaEdu per ADS (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.55
|
|
0.77
|
|
0.76
|
|
0.120
|
|
1.42
|
|
2.39
|
|
0.380
|
Diluted
|
|
0.52
|
|
0.72
|
|
0.72
|
|
0.115
|
|
1.32
|
|
2.25
|
|
0.358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
15,573,809
|
|
15,852,495
|
|
15,884,264
|
|
15,884,264
|
|
15,838,717
|
|
15,827,795
|
|
15,827,795
|
Diluted
|
|
16,720,855
|
|
16,927,279
|
|
16,625,395
|
|
16,625,395
|
|
16,983,130
|
|
16,771,477
|
|
16,771,477
|
SOURCE ChinaEdu Corporation