BEIJING, June 19, 2013 /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 first quarter ended March
31, 2013.[1]
First Quarter 2013 Highlights
- Total net revenue for the first quarter of 2013 was
$19.2 million, a 4.9 percent increase
from $18.3 million in the
corresponding period in 2012. Total net revenue was within the
Company's guidance range for the quarter.
- Net revenue from online degree programs was $15.2 million, an increase of 2.6 percent from
$14.8 million in the corresponding
period of 2012.
- Net income attributable to ChinaEdu was $1.9 million, an increase of 11.6 percent from
$1.7 million in the corresponding
period of 2012.
- Adjusted net income attributable to ChinaEdu[2] was
$2.4 million, an increase of 10.6
percent from $2.2 million in the
corresponding period of 2012.
- Net income attributable to ChinaEdu per diluted ADS[3] was
$0.144, an increase of 43.6 percent
from $0.100 in the corresponding
period of 2012.
- Adjusted net income attributable to ChinaEdu per diluted ADS[4]
was $0.186, an increase of 43.2
percent from $0.130 in the
corresponding period of 2012.
- The number of revenue students[5] enrolled in online degree
programs during the Fall 2012 semester increased by 5.1 percent
year-over-year to approximately 207,000 students.
[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, 2013
are presented in U.S. dollars. Unless otherwise stated, all
translations from RMB to U.S. dollars were made at the rate of
RMB6.2108 to $1.00, the noon buying rate in effect on March 31,
2013 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 intangible assets
impairment.
|
[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,
2013 and 2012 are revenue students in Fall 2012 and Fall 2011,
respectively.
|
Julia Huang, executive chairman
of ChinaEdu commented, "We are pleased with the start of 2013.
During the year, we will remain dedicated to technological
innovation, continually increasing ways in which emerging
technology can be applied to our teaching and learning methods. We
will continue to focus investment on the areas of our business that
provide steady returns and demonstrate consistent cost control with
ever-improving efficiency in spending."
Financial Results for the First Quarter
Ended March 31,
2013
Net Revenue
Total net revenue for the first quarter of 2013 was $19.2 million, a 4.9 percent increase from
$18.3 million in the corresponding
period in 2012.
Net revenue from online degree programs for the first quarter of
2013 was $15.2 million, a 2.6 percent
increase over $14.8 million in the
corresponding period in 2012. The increase in net revenue from
online degree programs was primarily related to organic growth in
revenue students enrolled in online degree programs, and continued
expansion and optimization of the Company's learning centers
network. Enrollment for the 2012 Fall semester online degree
programs was approximately 207,000 revenue students, a 5.1 percent
increase from approximately 197,000 revenue students enrolled in
the Fall semester in 2011.
By the end of the first quarter of 2013, ChinaEdu's learning
centers network was providing recruiting services for 23
universities with 122 operational learning centers, of which 54
were proprietary centers[6] and 68 were contracted centers[7]. This
compares to 105 operational learning centers as of March 31, 2012, of which 55 were proprietary and
50 were contracted centers.
Net revenue from non-degree programs, including online tutoring
programs, private primary and secondary schools and international
curriculum programs in the first quarter of 2013 was $4.0 million, a 14.3 percent increase from
$3.5 million in the first quarter of
2012. Of that, approximately $0.3
million was attributable to increased enrollment and
increased tuition at our private school in the city of Anqing.
[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 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 first quarter of 2013 was
$7.5 million, an increase of 2.3
percent, from $7.3 million in the
corresponding period of 2012.
Cost of revenue for online degree programs in the first quarter
of 2013 was $5.2 million, an increase
of 6.1 percent compared to $4.9
million in the corresponding period of 2012. The increase in
cost of revenue was primarily related to staff costs increasing by
$0.1 million and service station fees
increasing by $0.2 million.
Cost of revenue for non-degree programs in the first quarter of
2013 was $2.3 million, a decrease of
5.4 percent from $2.4 million in the
first quarter of 2012. The decrease in cost of revenue for
non-degree programs was primarily related to the decrease of
depreciation and amortization costs associated with our
international curriculum programs.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2013 was $11.7 million, compared to $11.0 million in the corresponding period of
2012. Gross margin increased slightly to 61.0 percent, compared to
60.1 percent for the corresponding period in 2012.
Gross margin for online degree programs was 65.9 percent, a
slight decrease from 67.0 percent in the first quarter of 2012. The
slight decrease was primarily due to an overall increase in the
percentage of total net revenue contributed by the Company's
learning centers network. The learning centers network's sales and
service based model results in a slightly higher cost of sales,
whereas the joint venture model is more operationally driven. In
general, more revenue generated from our learning centers network
results in lower gross margin for our overall online degree
programs.
Gross margin for online tutoring programs increased to 64.3
percent from 54.7 percent in the first quarter of 2012, mainly due
to increased net revenue as well as decreased lease and service
costs.
Gross margin for private schools in the first quarter of 2013
increased to 32.7 percent, compared to 27.6 percent in the
corresponding period in 2012. The increase of gross margin was
primarily due to increased net revenue at our private school in
Anqing.
Operating Expenses
Total operating expenses were $7.5
million in the first quarter of 2013, an increase of 1.5
percent, from $7.4 million in the
corresponding period in 2012. As a percentage of net revenue, total
operating expenses decreased to 39.1 percent, compared to 40.4
percent in the corresponding period in 2012. The increase in total
operating expense was the result of the following:
- General and administrative expenses for the first quarter of
2013 were $4.1 million, a decrease of
1.3 percent from $4.2 million in the
corresponding period in 2012. As a percentage of net revenue,
general and administrative expenses decreased to 21.3 percent from
22.7 percent in the same period in 2012. The decrease in general
and administrative expenses was primarily the result of a one-time
early lease termination fee in the first quarter of 2012 that was
related to a leased property used by our international curriculum
programs.
- Selling and marketing expenses were $1.6
million in the first quarter of 2013, a decrease of 2.4
percent compared to $1.7 million in
the corresponding period in 2012. As a percentage of net revenue,
selling and marketing expenses decreased to 8.5 percent from 9.2
percent in the same period in 2012.
- Research and development expenses for the first quarter of 2013
were $1.8 million, an increase of
13.0 percent compared to $1.6 million
in the corresponding period in 2012. As a percentage of net
revenue, the research and development expense was 9.2 percent in
the first quarter of 2013, increasing from 8.6 percent in the same
period of 2012. The increase in research and development expenses
relative to net revenue was primarily due to increased staff costs
associated with the company's investment in technology
upgrades.
Income from Operations
Income from operations in the first quarter of 2013 was
$4.2 million, an increase of 17.1
percent compared to $3.6 million in
the corresponding period of 2012. Operating margin increased to
21.9 percent in the first quarter of 2013, compared to 19.6 percent
in the corresponding period of 2012.
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 intangible
assets impairment, was $4.8 million
in the first quarter of 2013, an increase of 15.1 percent compared
to $4.1 million in the corresponding
period of 2012.
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 2013 increased to 24.8 percent,
compared to 22.6 percent for the corresponding period of 2012.
Interest expense
Interest expense for the first quarter of 2013 was $0.3 million, and is primarily related to our
loans with The Bank of East Asia,
Limited.
Income Tax Expense
In the first quarter of 2013, income tax expense was
$1.0 million and the effective income
tax rate was 21.2 percent.
Net Income Attributable to ChinaEdu
Net income attributable to ChinaEdu, which is net income,
excluding net income attributable to non-controlling interests, was
$1.9 million in the first quarter of
2013, representing an increase of 11.6 percent from $1.7 million in the corresponding period of 2012.
The increase was primarily due to an increase in gross profit
across online tutoring programs and private primary and secondary
schools, as well as effective expense control.
Net income attributable to ChinaEdu per basic and diluted ADS
was $0.156 and $0.144, respectively, for the first quarter of
2013, compared to $0.106 and
$0.100, respectively, for the
corresponding period in 2012.
Adjusted net income attributable to ChinaEdu (non-GAAP) was
$2.4 million in the first quarter of
2013, compared to $2.2 million in the
corresponding period of 2012. Adjusted net margin, a non-GAAP
measure defined as the ratio of adjusted net income attributable to
ChinaEdu (non-GAAP) over net revenue, was 12.5 percent in the first
quarter of 2013, compared to 11.9 percent in the corresponding
period of 2012.
Adjusted net income attributable to ChinaEdu per basic and
diluted ADS (non-GAAP) was $0.203 and
$0.186 respectively, for the first
quarter of 2013, compared to $0.138
and $0.130, respectively, for the
corresponding period of 2012.
Deferred Revenue
As of March 31, 2013, deferred
revenue was $10.6 million, consisting
of current deferred revenue in the amount of $9.1 million and non-current deferred revenue in
the amount of $1.5 million.
In general, Fall semester tuition for online degree programs is
received during the fourth quarter but is recognized both in the
fourth quarter of the current year and the first quarter of the
following year.
Private school revenue is received in September, but 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, 2013, the Company
reported cash and cash equivalents and term deposits of
$53.4 million, which primarily
consisted of cash and cash equivalents, 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 $47.7 million as of March
31, 2013 compared to $48.7
million as of December 31,
2012.
Share repurchase
On December 31, 2012, the board of
directors of ChinaEdu approved a plan to repurchase up to
US$40.0 million worth of outstanding
ChinaEdu ADSs. In the first quarter of 2013, the Company
repurchased an aggregate of 19,724,739 ordinary shares equivalent
for a total cash consideration and cancellation fee of RMB231.4 million (equivalent to US$37.3 million). The repurchased shares were all
cancelled. Thus net income attributable to ChinaEdu per diluted ADS
increased accordingly.
Second Quarter 2013
Guidance
ChinaEdu management expects total net revenue in the second
quarter of 2013 to range from RMB124 million
to RMB130 million or $20.0 million to
$20.9 million, representing an 8 percent to 13 percent
increase from RMB115 million or
$18.1 million compared to the
corresponding period in 2012.
Conference Call
ChinaEdu's management will hold an earnings conference call at
8:00 a.m. U.S. Eastern Time on
June 20, 2013 (8:00 p.m. Beijing/Hong Kong Time on June 20, 2013).
Dial-in details for the earnings conference call are as
follows:
International:
|
+65
67239381
|
Hong Kong:
|
+852
24750994
|
United
States:
|
+1 (718)
354-1231
|
Toll-free China,
Mobile:
|
4006208038
|
Toll-free
China:
|
8008190121
|
Toll-free United
States:
|
+1 (866)
519-4004
|
Conference
ID:
|
83731444
|
|
|
Conference
Password:
|
ChinaEdu
|
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 28,
2013.
Dial-in numbers for the replay are as follows:
Toll Free United
States:
|
+1 (855)
452-5696
|
International:
|
+61 2 8199
0299
|
Conference
ID:
|
83731444
|
|
|
Conference
Password:
|
ChinaEdu
|
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 intangible assets
impairment. 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 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 provides technical, recruiting and other services to 27
universities with online degree programs and provides services and
support to 11 additional universities that are awaiting regulatory
approval to launch their online programs. Of these 38 universities,
13 of them have entered into collaborative alliances with ChinaEdu,
ranging from 15 to 50 years in length. Eight of them have entered
into technology service agreements, ranging from 3 to 20 years in
length. ChinaEdu also performs recruiting services through its
nationwide learning center network for 23 universities, including 6
with which the Company has either established collaborative
alliances or entered into technology service agreements.
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, 2012, 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
Simon Mei
Chief Financial Officer
ChinaEdu Corporation
Phone: +86 (10) 84187301
E-mail: simon@chinaedu.net
ChinaEdu
Corporation
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
(in thousands,
unaudited)
|
December 31,
2012
|
March 31,
2013
|
March 31,
2013
|
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
385,922
|
207,448
|
33,401
|
|
Term
deposits
|
92,028
|
124,289
|
20,011
|
|
Short-term
investments
|
23,575
|
18,085
|
2,912
|
|
Accounts receivable,
net
|
34,917
|
16,209
|
2,610
|
|
Prepaid expenses and
other current assets
|
23,455
|
19,445
|
3,132
|
|
Amounts due from
related parties-current
|
260,184
|
254,088
|
40,911
|
|
Deferred tax
assets-current
|
9,571
|
3,213
|
517
|
Total current
assets
|
829,652
|
642,777
|
103,494
|
|
Term deposits -non
current
|
-
|
95,850
|
15,433
|
|
Property and
equipment, net
|
238,563
|
234,143
|
37,699
|
|
Amounts due from
related party-non-current
|
41,979
|
41,979
|
6,759
|
|
Land use
rights
|
26,049
|
25,897
|
4,170
|
|
Deposits paid for
acquisition of property and equipment
|
3,873
|
3,873
|
624
|
|
Deferred tax
assets-non-current
|
2,085
|
2,368
|
381
|
|
Long-term
investments
|
801
|
758
|
122
|
|
Rental
deposits
|
1,497
|
1,366
|
220
|
|
Acquired intangible
assets, net
|
54,499
|
53,700
|
8,646
|
|
Goodwill
|
43,255
|
43,255
|
6,964
|
Total
assets
|
1,242,253
|
1,145,966
|
184,512
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short term loan
(including short term loan of the consolidated VIE
without recourse to the
Group of nil and nil as of December 31, 2012 and
March 31, 2013, respectively)
|
-
|
68,120
|
10,968
|
|
Accounts payable
(including accounts payable of the consolidated VIE without
recourse to the
Group of 2,007 and 5,311 as of December 31, 2012 and
March 31, 2013, respectively)
|
2,401
|
5,680
|
915
|
|
Deferred
revenues-current (including deferred revenues of the
consolidated VIE without recourse to
the Group of 23,518 and 25,376 as of December 31,
2012 and March 31, 2013, respectively)
|
134,175
|
56,220
|
9,052
|
|
Accrued expenses and
other current liabilities (including accrued expenses and
other current
liabilities of the consolidated VIE without recourse to
the Group of 22,113 and 25,349
as of December 31, 2012 and March 31, 2013,
respectively)
|
113,558
|
114,055
|
18,364
|
|
Amounts due to
related parties-current (including amounts due to related
parties of the consolidated
VIE without recourse to the Group of 1,926 and 1,960
as of December 31, 2012 and March 31,
2013, respectively)
|
35,507
|
28,577
|
4,601
|
|
Income taxes payable
(including income taxes payable of the consolidated VIE
without recourse to the
Group of 10,004 and 8,504 as of December 31, 2012 and
March 31, 2013, respectively)
|
49,294
|
32,421
|
5,220
|
|
Other taxes payable
(including other taxes payable of the consolidated VIE without
recourse to the
Group of 4,442 and 3,819 as of December 31, 2012 and
March 31, 2013, respectively)
|
27,294
|
18,663
|
3,005
|
Total current
liabilities
|
362,229
|
323,736
|
52,125
|
|
Long term
loan(including long term loan of the consolidated VIE without
recourse to the
Group of nil and nil as of December 31, 2012 and March
31, 2013, respectively)
|
-
|
156,433
|
25,187
|
|
Deferred
revenues-non-current (including deferred revenues of the
consolidated VIE without recourse
to the Group of 29 and 29 as of December 31, 2012 and
March 31, 2013, respectively)
|
10,654
|
9,785
|
1,575
|
|
Deferred tax
liabilities-non-current (including deferred tax liabilities of
the consolidated VIE without
recourse to the Group of 978 and 968 as of December 31,
2012 and March 31, 2013, respectively)
|
13,473
|
13,418
|
2,160
|
|
Unrecognized tax
benefit (including unrecognized tax benefit of the
consolidated VIE without
recourse to the Group of 3,555 and 3,851 as of
December 31, 2012 and March 31, 2013, respectively)
|
8,795
|
9,383
|
1,511
|
Total
liabilities
|
395,151
|
512,755
|
82,558
|
|
|
|
|
|
ChinaEdu shareholders' equity
|
650,191
|
432,660
|
69,663
|
Noncontrolling interests
|
196,911
|
200,551
|
32,291
|
Total
equity
|
847,102
|
633,211
|
101,954
|
Total liabilities
and equity
|
1,242,253
|
1,145,966
|
184,512
|
ChinaEdu
Corporation
|
Unaudited
Condensed Consolidated Statements of
Operations
|
|
|
|
Three Months
Ended
|
(in thousands,except for percentage, share, and
per share information)
|
|
March 31,
2012
|
March 31,
2013
|
|
March 31,
2013
|
|
|
RMB
|
RMB
|
|
US$
|
|
|
|
|
|
|
Gross Revenue
*
|
|
119,632
|
122,173
|
|
19,670
|
|
|
|
|
|
|
Business
Tax
|
|
5,705
|
2,714
|
|
437
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
Online degree
programs
|
|
91,927
|
94,315
|
|
15,186
|
Online tutoring
programs
|
|
6,009
|
6,731
|
|
1,083
|
Private primary and
secondary schools
|
|
13,536
|
15,855
|
|
2,553
|
International
curriculum programs
|
|
2,455
|
2,558
|
|
411
|
Total net
revenue
|
|
113,927
|
119,459
|
|
19,233
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
Online degree
programs
|
|
30,319
|
32,162
|
|
5,178
|
Online tutoring
programs
|
|
2,721
|
2,400
|
|
386
|
Private primary and
secondary schools
|
|
9,806
|
10,664
|
|
1,717
|
International
curriculum programs
|
|
2,663
|
1,309
|
|
211
|
Total cost of
revenue
|
|
45,509
|
46,535
|
|
7,492
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
Online degree
programs
|
|
61,608
|
62,153
|
|
10,008
|
Online tutoring
programs
|
|
3,288
|
4,331
|
|
697
|
Private primary and
secondary schools
|
|
3,730
|
5,191
|
|
836
|
International
curriculum programs
|
|
(208)
|
1,249
|
|
200
|
Total gross
profit
|
|
68,418
|
72,924
|
|
11,741
|
|
|
|
|
|
|
Online degree
programs
|
|
67.0%
|
65.9%
|
|
65.9%
|
Online tutoring
programs
|
|
54.7%
|
64.3%
|
|
64.3%
|
Private primary and
secondary schools
|
|
27.6%
|
32.7%
|
|
32.7%
|
International
curriculum programs
|
|
(8.5%)
|
48.8%
|
|
48.8%
|
Gross
margin
|
|
60.1%
|
61.0%
|
|
61.0%
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
General and
administrative
|
|
25,810
|
25,476
|
|
4,102
|
Selling and
marketing
|
|
10,463
|
10,211
|
|
1,644
|
Research and
development
|
|
9,777
|
11,046
|
|
1,779
|
Total operating
expenses
|
|
46,050
|
46,733
|
|
7,525
|
Income from
operations
|
|
22,368
|
26,191
|
|
4,216
|
Operating
margin
|
|
19.6%
|
21.9%
|
|
21.9%
|
|
|
|
|
|
|
Interest
income
|
|
2,988
|
2,906
|
|
468
|
Interest
expense
|
|
-
|
(1,767)
|
|
(285)
|
Investment
income
|
|
674
|
368
|
|
59
|
Other
income
|
|
247
|
423
|
|
68
|
Income before income
tax and equity method investments
|
|
26,277
|
28,121
|
|
4,526
|
Income tax
expense
|
|
(5,483)
|
(5,953)
|
|
(958)
|
Net income before
income from equity method investments
|
|
20,794
|
22,168
|
|
3,568
|
Income from equity
method investments, net of taxes
|
|
-
|
(43)
|
|
(7)
|
Net income
|
|
20,794
|
22,125
|
|
3,561
|
Net income
attributable to the noncontrolling interests
|
|
(10,469)
|
(10,606)
|
|
(1,708)
|
Net income
attributable to ChinaEdu
|
|
10,325
|
11,519
|
|
1,853
|
Net margin
|
|
9.1%
|
9.6%
|
|
9.6%
|
|
|
|
|
|
|
Net income
attributable to ChinaEdu per ADS:
|
|
|
|
|
|
Basic
|
|
0.66
|
0.97
|
|
0.156
|
Diluted
|
|
0.62
|
0.89
|
|
0.144
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
Basic
|
|
15,746,005
|
11,847,105
|
|
11,847,105
|
Diluted
|
|
16,761,137
|
12,892,555
|
|
12,892,555
|
|
|
|
|
|
|
|
|
|
|
|
|
* Gross revenue are
detailed as follows
|
|
|
|
|
|
Online degree
programs
|
|
97,318
|
96,795
|
|
15,585
|
Online tutoring
programs
|
|
6,157
|
6,872
|
|
1,106
|
Private primary and
secondary schools
|
|
13,558
|
15,882
|
|
2,557
|
International
curriculum programs
|
|
2,599
|
2,624
|
|
422
|
ChinaEdu
Corporation
|
Unaudited
Condensed Consolidated Statements of Cash Flow
|
|
|
|
Three Months
Ended
|
(in thousands,
unaudited)
|
|
March 31,
2012
|
|
March 31,
2013
|
|
March 31,
2013
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
Net
income
|
|
20,794
|
|
22,125
|
|
3,561
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Share-based compensation
|
|
2,219
|
|
2,463
|
|
397
|
Depreciation and amortization of property and
equipment
|
|
6,304
|
|
6,373
|
|
1,026
|
Amortization of land use rights
|
|
152
|
|
152
|
|
24
|
Amortization of acquired intangible assets
|
|
985
|
|
799
|
|
129
|
Investment income
|
|
(69)
|
|
(368)
|
|
(59)
|
Amortization of debt discount
|
|
-
|
|
234
|
|
38
|
Earnings from equity method investment
|
|
-
|
|
43
|
|
7
|
Provision for Accounts Receivable
|
|
340
|
|
144
|
|
23
|
Loss from disposal of property and
equipment
|
|
812
|
|
9
|
|
1
|
Changes in
assets and liabilities
|
|
|
|
|
|
|
Accounts receivable
|
|
8,839
|
|
18,564
|
|
2,989
|
Prepaid expenses and other current assets
|
|
(2,213)
|
|
4,144
|
|
668
|
Amounts due from related parties
|
|
1,838
|
|
6,096
|
|
983
|
Rental deposits
|
|
471
|
|
131
|
|
21
|
Accounts payable
|
|
2,514
|
|
3,279
|
|
528
|
Deferred revenues
|
|
(78,991)
|
|
(78,821)
|
|
(12,691)
|
Accrued expenses and other current
liabilities
|
|
5,974
|
|
368
|
|
59
|
Amounts due to related parties
|
|
9,952
|
|
(14,453)
|
|
(2,327)
|
Income tax payable
|
|
(10,602)
|
|
(16,873)
|
|
(2,717)
|
Other taxes payable
|
|
(4,960)
|
|
(8,631)
|
|
(1,390)
|
Deferred income taxes
|
|
2,356
|
|
6,020
|
|
969
|
Unrecognized tax benefit
|
|
640
|
|
588
|
|
95
|
Net cash used in
operating activities
|
|
(32,645)
|
|
(47,614)
|
|
(7,666)
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(803)
|
|
(1,961)
|
|
(316)
|
Maturity/(purchase) of term deposits, net
|
|
24,135
|
|
(128,119)
|
|
(20,628)
|
Proceeds from the sale of investments
|
|
10,318
|
|
5,482
|
|
883
|
Net cash provided
by (used in) investing activities
|
|
33,650
|
|
(124,598)
|
|
(20,061)
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from exercise of share options
|
|
945
|
|
-
|
|
-
|
Financing cost related to loans
|
|
-
|
|
(3,751)
|
|
(604)
|
Proceeds from borrowings of short-term debt
|
|
-
|
|
68,410
|
|
11,015
|
Proceeds from borrowings of long-term debt
|
|
-
|
|
159,750
|
|
25,721
|
Repurchase and cancellation of ordinary shares
|
|
-
|
|
(231,358)
|
|
(37,251)
|
Net cash provided
by (used in) financing activities
|
|
945
|
|
(6,949)
|
|
(1,119)
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(5)
|
|
687
|
|
110
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
|
273,746
|
|
385,922
|
|
62,137
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
|
275,691
|
|
207,448
|
|
33,401
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
1,945
|
|
(178,474)
|
|
(28,736)
|
ChinaEdu
Corporation
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income
|
|
|
|
Three Months
Ended
|
(in thousands,
unaudited)
|
|
March 31,
2012
|
|
March 31,
2013
|
|
March 31,
2013
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
|
|
20,794
|
|
22,125
|
|
3,561
|
Other comprehensive
income, net of taxes
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
7
|
|
749
|
|
121
|
Change in fair
value of available for sale investments
|
|
237
|
|
(337)
|
|
(54)
|
Comprehensive
income
|
|
21,038
|
|
22,537
|
|
3,628
|
Less: comprehensive
income attributable to noncontrollng interests
|
|
10,446
|
|
11,173
|
|
1,799
|
Comprehensive
income attributable to Chinaedu
|
|
10,592
|
|
11,364
|
|
1,829
|
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,
2012
|
|
March 31,
2013
|
|
March 31,
2013
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net
revenue
|
|
113,927
|
|
119,459
|
|
19,233
|
Income from
operations
|
|
22,368
|
|
26,191
|
|
4,216
|
Adjustments:
|
|
|
|
|
|
|
Share-based
compensation
|
|
2,219
|
|
2,463
|
|
397
|
Amortization
of intangible assets and land use rights
|
|
1,137
|
|
951
|
|
153
|
Adjusted income
from operations (non-GAAP)
|
|
25,724
|
|
29,605
|
|
4,766
|
Adjusted operating
margin (non-GAAP)
|
|
22.6%
|
|
24.8%
|
|
24.8%
|
|
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,
2012
|
|
March 31,
2013
|
|
March 31,
2013
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net
revenue
|
|
113,927
|
|
119,459
|
|
19,233
|
Net income
attributable to ChinaEdu
|
|
10,325
|
|
11,519
|
|
1,853
|
Adjustments:
|
|
|
|
|
|
|
Share-based
compensation
|
|
2,219
|
|
2,463
|
|
397
|
Share-based
compensation attributable to noncontrolling interests
|
|
(177)
|
|
-
|
|
-
|
Amortization
of intangible assets and land use rights
|
|
1,137
|
|
951
|
|
153
|
Adjusted net
income attributable to ChinaEdu (non-GAAP)
|
|
13,504
|
|
14,933
|
|
2,403
|
Adjusted net margin
(non-GAAP)
|
|
11.9%
|
|
12.5%
|
|
12.5%
|
|
|
|
|
|
|
|
Adjusted net income
attributable to ChinaEdu per ADS (non-GAAP):
|
|
|
|
|
|
|
Basic
|
|
0.86
|
|
1.26
|
|
0.203
|
Diluted
|
|
0.81
|
|
1.16
|
|
0.186
|
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
Basic
|
|
15,746,005
|
|
11,847,105
|
|
11,847,105
|
Diluted
|
|
16,761,137
|
|
12,892,555
|
|
12,892,555
|
SOURCE ChinaEdu Corporation