Third Quarter Net Revenues up by 18.1%
Year-Over-Year
Third Quarter Total Student Enrollments up by
17.5% Year-Over-Year
Third Quarter Student Enrollments in Kid
Education Programs up by 582.5% Year-Over-Year
BEIJING, Nov. 20, 2017 /PRNewswire/ -- Tarena
International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a
leading provider of professional education services in China, today announced its unaudited financial
results for the third quarter ended September 30, 2017.
Third Quarter 2017 Highlights
- Net revenues increased by 18.1% year-over-year to RMB568.2 million from RMB481.0 million in the same period in 2016.
- Gross profit increased by 13.9% year-over-year to RMB410.0 million from RMB360.1 million in the same period in 2016.
- Operating income was RMB94.5
million, compared to RMB113.8
million in the same period in 2016.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB114.8
million, compared to RMB127.1
million in the same period in 2016.
- Net income was RMB97.0 million,
compared to RMB120.3 million in the
same period in 2016.
- Non-GAAP net income, which excluded share-based compensation
expenses, was RMB117.3 million,
compared to RMB133.6 million in the
same period in 2016.
- Basic and diluted net income per American Depositary Share
("ADS") were RMB1.69 and RMB1.62, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were RMB2.04
and RMB1.96, respectively. Each ADS
represents one Class A ordinary share.
- The Company repurchased 1,221,550 Class A ordinary shares from
the open market for an aggregate consideration of US$17.1 million in the third quarter of
2017.
- Cash and time deposits totaled RMB1, 149.2 million as of September 30, 2017, compared to RMB1,286.1 million as of December 31, 2016.
- Deferred revenue totaled RMB326.6
million as of September 30,
2017, compared to RMB266.1
million as of December 31,
2016, representing an increase of 22.7%.
- Total course enrollments[1], defined as the cumulative number
of courses enrolled in by our students, in the third quarter of
2017 increased by 9.9% year-over-year to 32,526.
- Total student enrollments[2], defined as the total number of
new students recruited and registered, in the third quarter of 2017
increased by 17.5% year-over-year to 36,220.
- Total number of learning centers[3] increased to 179 as of
September 30, 2017, from 145 as of
December 31, 2016.
- Total student enrollments in kid education programs, defined as
the total number of students recruited and registered in our kid
education programs, in the third quarter of 2017 increased by
582.5% year-over-year to 3,590.
First Nine Months2017 Highlights
- Net revenues increased by 21.6% year-over-year to RMB1, 356.8 million from RMB1, 115.6 million in the same period in
2016.
- Gross profit increased by 17.4% year-over-year to RMB927.2million from RMB789.9 million in the same period in 2016.
- Operating income was RMB96.3
million, compared to RMB133.9
million in the same period in 2016.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB147.0
million, compared to RMB177.7
million in the same period in 2016.
- Net income was RMB110.2 million,
compared to RMB139.1million in the
same period in 2016.
- Non-GAAP net income, which excluded share-based compensation
expenses and loss on foreign currency forward contract, was
RMB160.9 million, compared to
RMB195.8million in the same period in
2016.
- Basic and diluted net income per American Depositary Share
("ADS") were RMB1.93 and RMB1.84, respectively. Non-GAAP basic and
Non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses and loss on foreign currency forward
contract, were RMB2.82 and
RMB2.69, respectively.
- Total course enrollments[4] during the first nine months of
2017 increased by 14.3% year-over-year to 85,017.
- Total student enrollments[5] during the first nine months
of2017increased by 17.3% year-over-year to 94,553.
- Total student enrollments in kid education programs during the
first nine months of 2017 increased by 328.9% year-over-year to
6,309.
Mr. Shaoyun Han, Chairman and
Chief Executive Officer of Tarena, said, "We are pleased to see
dynamic growth in net revenues and student enrollments this
quarter. All our business lines performed well during the third
quarter, and net revenues in the quarter recorded RMB568.2 million, reaching almost the high end of
our guidance. Our key revenue driver, professional education
business showed 17.5% year-over-year enrollment growth, mainly
driven by the capacity expansion and diversified course offerings.
During the quarter, we entered into 5 new cities and added a net of
8 learning centers to broaden our market reach. As planned, Tarena
successfully piloted an exciting IT course named Python in the
quarter to meet the growing market demand for artificial
intelligence and big data talents, which is a new addition to our
existing diversified course offerings. While we explored
cooperation opportunities with universities and colleges to further
strengthen our branding on campus, more students started to enroll
in joint major programs this September. We are achieving our
mission of improving careers and changing lives of China's
youngsters with the most innovative education services and higher
quality education experience. Our new initiatives on modern
facilities, upgraded E-learning platform, industry-leading
curriculum development system as well as deepened university
cooperation are distinguishing us in the marketplace."
"More importantly, we are also proud to report that our new
business line kid education programs continued robust momentum,
growing by 582.5% year over year, or by 108.1% quarter on quarter
in the third quarter of 2017. Through extensive sales and marketing
activities and shared teaching facilities with professional
education business, Tarena was able to quickly capture strong
growth momentum in China's kid education market. Along with the
policies to encourage primary and middle schools to introduce
computer science courses into curriculum system and the increasing
awareness of computer science education among Chinese families, kid
education business was extended into 21 cities and had 24 separate
centers and more than 20 shared centers nationwide with improving
student retention by the end of third quarter 2017. Total number of
kid student enrollment more than tripled for the first nine months
of 2017. Looking ahead, we believe our growth strategy will
strengthen the solid foundation for our long-term growth." Mr. Han
continued.
Mr. Yuduo Yang, Tarena's Chief Financial Officer added, "As
mentioned earlier, our continued investment into network expansion,
new course development, as well as kid education programs ramp-up
may affect the overall margin level in short term, as a result of
lower utilization of teaching facilities and higher operational
cost. During this quarter, we started to optimize lease areas in
underperforming centers. Total seat capacity increased by 15.5%
year over year this quarter which remained at a relatively healthy
level. With more scientific allocation of teaching and marketing
resources, we will put a balance between expansion and operational
efficiency. Though our kid education business is still at a fast
growing stage and has not reached maturity level, we expect to see
more and more kid education centers reaching to normalized
utilization gradually in the future. We are confident that Tarena
has laid down the right strategies to drive additional revenue and
profitability growth and will deliver more sustainable value for
our students and shareholders in the long run."
Third Quarter 2017 Results
Net Revenues
Net revenues increased by 18.1% to RMB568.2 million in the third quarter of 2017,
from RMB481.0 million in the same
period in 2016. The increase was primarily due to increased course
enrollments and to a lesser extent, an increase in the standard
tuition fees.
Total course enrollments[6] in the third quarter of 2017
increased by 9.9% to 32,526 from 29,586 in the same period in 2016,
which was mainly driven by the expansion in seat capacity and the
popularity of our course offerings. The number of our course
offerings increased to 20 from 17 in the third quarter, while the
total seat capacity in our learning centers increased by 15.5% to
58,066 as of September 30,2017 from
50,270 as of September 30, 2016 to
cater to the increased demand for our courses.
Beginning in the third quarter of 2017, we raised the standard
tuition fees on most of our courses by RMB1,000 to RMB
2000 per course. We charge students enrolled through the
retail channel our standard tuition fee and provide students
enrolled through the university channel a discount of approximately
RMB4,000 per person per course. Our
student enrollment mix from retail and university channel was
78%/22% and 84%/16% in the third quarter of 2017 and 2016,
respectively.
Cost of Revenues
Cost of revenues increased by 30.9% to RMB158.2 million in the third quarter of 2017,
from RMB120.9 million in the same
period in 2016. The increase was mainly due to an increase in
personnel cost and welfare expenses resulting from growing number
of teaching and advisory staff at our learning centers, rental cost
resulting from higher seat capacity, as well as depreciation
expenses for the growing number of learning centers.
Gross Profit and Gross Margin
Gross profit increased by 13.9% to RMB410.0 million in the third quarter of 2017,
from RMB360.1 million in the same
period in 2016. Gross margin was 72.2% in the third quarter of
2017, compared with 74.9% in the same period in 2016.The decrease
in gross margin was mainly due to expansion of our center network.
Our overall center utilization rate[7] in the third quarter of 2017
was 73.7%, compared with 77.1% in the same period in 2016.
Operating Expenses
Total operating expenses increased by 28.1% to RMB315.5 million in the third quarter of 2017,
from RMB246.3 million in the same
period in 2016. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 26.3% to
RMB295.5 million in the third quarter
of 2017, from RMB234.0 million in the
same period in 2016. Total share-based compensation expenses
allocated to the related operating expenses increased by 62.7% to
RMB20.0 million in the third quarter
of 2017, from RMB12.3 million in the
same period in 2016.
Selling and marketing expenses increased by 26.9% to
RMB190.0 million in the third quarter
of 2017, from RMB149.7 million in the
same period in 2016. The increase was due to an increase in
personnel cost and welfare expenses related to the growth in our
selling and marketing headcount, and expanded marketing efforts as
we expanded our course offerings and network of learning
centers.
General and administrative expenses increased by 21.4% to
RMB96.8 million in the third quarter
of 2017, from RMB79.8 million in the
same period in 2016. The increase was mainly due to an increase in
personnel cost and welfare expenses for our increased number of
general and administrative personnel to support our growing
operations. Non-GAAP general and administrative expenses, which
excluded share-based compensation expenses, increased by 15.9% to
RMB80.7 million, from RMB69.6 million in the same period in 2016.
Research and development expenses increased by 70.6% to
RMB28.7 million in the third quarter
of 2017, from RMB16.8 million in the
same period in 2016. The increase was mainly due to an increase in
personnel cost and welfare expenses of our instructors and teaching
assistants allocated to their system and content development
activities for our courses, as well as growing number of research
and development staff as we expanded our course offerings and
operations.
Operating Income
Operating income was RMB94.5
million for the third quarter of 2017, compared to
RMB113.8 million in the same period
in 2016. Operating margin was 16.6% in the third quarter of 2017,
compared to 23.7% in the same period in 2016. Non-GAAP operating
income, which excluded share-based compensation expenses, was
RMB114.8 million, compared to
RMB127.1 million in the same period
in 2016. Non-GAAP operating margin was 20.2% in the third quarter
of 2017, compared to 26.4% in the same period in 2016.
Interest Income
Interest income was RMB5.1 million
in the third quarter of 2017, compared to RMB4.3 million in the same period in 2016.
Interest income in both periods consisted of interest earned on our
cash and time deposits in commercial banks and interest income
recognized in relation to our installment payment plan for
students. The increase in interest income was primarily due to
higher bank deposits, as well as higher tuition interest income in
relation to our installment payment plan for students.
Foreign Exchange Gain (Loss)
Foreign exchange loss was RMB2.1
million in the third quarter of 2017, compared to
RMB1.3 million foreign exchange gain
in the same period in 2016. The loss was mainly attributable to the
appreciation of China's RMB against U.S. Dollar as the Company had
converted its offshore bank deposits previously in RMB into US
dollars in May 2016.
Income Tax Expense
The Company recorded an income tax expense of RMB6.8 million in the third quarter of 2017,
compared to RMB4.7 million in the
same period in 2016. The change was mainly due to lower percentage
of taxable income from certain subsidiaries with preferential tax
rates.
Net Income
As a result of the foregoing, net income was RMB97.0 million in the third quarter of 2017,
compared to RMB120.3 million in the
same period in 2016. Non-GAAP net income, which excluded
share-based compensation expenses, was RMB117.3 million, compared to a non-GAAP net
income of RMB133.6 million in the
same period in 2016.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS in the third quarter of
2017 were RMB1.69 and RMB1.62, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were RMB2.04
and RMB1.96, respectively.
Cash Flow
Net cash inflow from operating activities for the third quarter
of 2017 was RMB38.2 million, compared
to RMB245.4 million in the same
period in 2016. The change was mainly due to lower net income in
the third quarter of 2017 and longer credit granting and tuition
payment procedures from third party financing institutions for
students. Capital expenditures for the quarter were RMB50.1 million.
Shares Issued and Outstanding
As of September 30, 2017, the
Company had 49,452,343 Class A and 7,206,059 Class B ordinary
shares outstanding. Each ADS represents one Class A ordinary
share.
First Nine Months 2017 Results
Net Revenues
Net revenues increased by 21.6% to RMB1,356.8 million for the first nine months of
2017, from RMB1,115.6 million in the
same period in 2016. The increase was primarily due to increased
course enrollments and to a lesser extent, an increase in the
standard tuition fees.
Total course enrollments[8] during the first nine months of 2017
increased by 14.3% year-over-year to 85,017, which was mainly
driven by the expansion in seat capacity and the popularity of our
course offerings.
Cost of Revenues
Cost of revenues grew by 31.9% to RMB429.6 million in the first nine months of2017,
from RMB325.7 million in the same
period in 2016. Along with the business expansion, the increase in
cost of revenues was mainly due to an increase in personnel cost
and welfare expenses resulting from growing number of teaching and
advisory staff at our learning centers, rental cost resulting from
higher seat capacity, as well as depreciation expenses for our
learning centers.
Gross Profit and Gross Margin
Gross profit increased by 17.4% to RMB927.2 million in the first nine months of
2017, from RMB789.9 million in the
same period in 2016. Gross margin was 68.3% for the first nine
months of 2017, compared to 70.8% in the same period in 2016. The
decrease in gross margin was mainly due to expansion of our center
network.
Operating Expenses
Total operating expenses increased by 26.7% to RMB830.9million in the first nine months of 2017,
from RMB656.0 million in the same
period in 2016. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 27.1% to
RMB781.0 million in the first nine
months of 2017, from RMB614.5 million
in the same period in 2016. Total share-based compensation expenses
allocated to the related operating expenses increased by 20.1% to
RMB49.9 million in the first nine
months of 2017, from RMB41.5 million
in the same period in 2016.
Selling and marketing expenses increased by 26.8% to
RMB493.5 million in the first nine
months of 2017, from RMB389.0 million
in the same period in 2016. The increase was due to an increase in
personnel cost and welfare expenses related to the growth in our
selling and marketing headcount, and marketing efforts as we
expanded our course offerings and network of learning centers.
General and administrative expenses increased by 21.0% to
RMB269.8 million in the first nine
months of 2017, from RMB222.9 million
in the same period in 2016. The increase was mainly due to an
increase in compensation cost for our increased number of general
and administrative personnel to support our growing operations and
an increase in share-based compensation expenses. Non-GAAP general
and administrative expenses, which excluded share-based
compensation expenses, increased by 21.9% to RMB229.1 million, from RMB187.9 million in the same period in 2016.
Research and development expenses increased by 53.4% to
RMB67.6 million in the first nine
months of 2017, from RMB44.1 million
in the same period in 2016. The increase was mainly due to an
increase in personnel cost and welfare expenses of our instructors
and teaching assistants allocated to their system and content
development activities for our courses, as well as growing number
of research and development staff as we expanded our course
offerings and operations.
Operating Income
Operating income was RMB96.3
million in the first nine months of 2017, compared to
RMB133.9 million in the same period
in 2016. Operating margin was 7.1%in the first nine months of 2017,
compared to 12.0% in the same period in 2016. Non-GAAP operating
income, which excluded share-based compensation expenses, was
RMB147.0 million in the first nine
months of 2017, compared to RMB177.7
million in the same period in 2016. Non-GAAP operating
margin was 10.8 %in the first nine months of 2017, compared to
15.9% in the same period in 2016.
Interest Income
Interest income was RMB13.5
million in the first nine months of 2017, compared to
RMB18.6 million in the same period in
2016. Interest income in both periods consisted of interest earned
on our cash, cash equivalents and time deposits in commercial banks
and interest income recognized in relation to our installment
payment plan for students. The decrease in interest income in the
first nine months of 2017 was primarily due to lower bank deposits
and interest rate, as well as lower tuition interest income in
relation to our installment payment plan for students in the first
half of 2017.
Foreign Exchange Gain (Loss)
Foreign exchange loss was RMB4.4
million in the first nine months of 2017, compared to
RMB2.5 million foreign exchange loss
in the same period in 2016. The loss was mainly attributable to the
appreciation of China's RMB against U.S. Dollar as the Company had
converted its offshore bank deposits previously in RMB into US
dollars in May 2016.
Income Tax Expense
Income tax expense was RMB13.1
million in the first nine months of 2017, compared to
RMB8.9million in the same period in
2016. The change was mainly due to lower percentage of taxable
income from certain subsidiaries with preferential tax rates.
Net Income
As a result of the foregoing, net income was RMB110.2 million in the first nine months of
2017, compared to RMB139.1 million in
the same period in 2016. Non-GAAP net income, which excluded
share-based compensation expenses and loss on foreign currency
forward contract, was RMB160.9
million, compared to RMB195.8
million in the same period in 2016.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were RMB1.93 and RMB1.84
respectively in the first nine months of 2017. Non-GAAP basic and
Non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses and loss on foreign currency forward
contract, were RMB2.82 and
RMB2.69, respectively.
Business Outlook
Based on the Company's current estimates, total net revenues for
the fourth quarter of 2017 are expected to be between RMB590.0 million and RMB610.0 million,
representing an increase of 27.1% to 31.5% on a year-over-year
basis.
The Company also expects its total net revenues guidance for the
full year of 2017 to be between RMB1,920.0
million and RMB2,000.0 million, representing an increase of
21.5% to 26.6% on a year-over-year basis.
This guidance is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions, which are subject to change.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the third quarter ended
September 30, 2017 at 8:00PM U.S. Eastern Time on Monday, November 20, 2017 (9:00AM Beijing Time on Tuesday, November 21, 2017).
The dial-in details for the live conference call are as
follows:
United States/Canada: 866 548
4713
Hong Kong: 800 961
105
China Mainland: 400 120 9101
Singapore: 800 186 5107
Taiwan: +886 (0)2 8793 3223
United Kingdom: 800 358 6377
International: +1 323 794 2093
Conference ID: 5255804
A replay of the call will be available approximately 2 hours
after the conclusion of the conference call through November 27, 2017. The dial-in details for the
replay are:
United States: 888 203 1112
Hong Kong: 800 901
108
China Mainland: 400 120 1651
Singapore:+65 6517 0784
Taiwan: 00 801 126 971
United Kingdom: 0 808 101 1153
Conference ID:5255804
Additionally, a live and archived webcast of this call will be
available on the Investor Relations section of Tarena's website at
http://ir.tedu.cn.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Tarena may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including any business outlook and
statements about Tarena's beliefs and expectations, are
forward-looking statements. Many factors, risks and uncertainties
could cause actual results to differ materially from those in the
forward-looking statements. Such factors and risks include, but not
limited to the following: Tarena's goals and strategies; its future
business development, financial condition and results of
operations; its ability to continue to attract students to enroll
in its courses; its ability to continue to recruit, train and
retain qualified instructors and teaching assistants; its ability
to continually tailor its curriculum to market demand and enhance
its courses to adequately and promptly respond to developments in
the professional job market; its ability to maintain or enhance its
brand recognition, its ability to maintain high job placement rate
for its students, and its ability to maintain cooperative
relationships with financing service providers for student loans.
Further information regarding these and other risks, uncertainties
or factors is included in Tarena's filings with the U.S. Securities
and Exchange Commission. All information provided in this press
release is current as of the date of the press release, and Tarena
does not undertake any obligation to update such information,
except as required under applicable law.
About Tarena International, Inc.
Tarena International, Inc. (NASDAQ: TEDU) is a leading provider
of professional education services in China. Through its innovative education
platform combining live distance instruction, classroom-based
tutoring and online learning modules, Tarena offers professional
education courses in twelve IT subjects and three non-IT subjects.
Tarena also offers three kid education programs. Its professional
education courses provide students with practical skills to prepare
them for jobs in industries with significant growth potential and
strong hiring demand. Since its inception in 2002, Tarena has
trained over 475,000 students, cooperated with more than 772
universities and colleges and placed students with approximately
124,000 corporate employers in a variety of industries. For further
information, please visit http://ir.tedu.cn.
About Non-GAAP Financial Measures
Beginning in the second quarter of 2016, the Company revised its
non-GAAP financial measures to exclude gain or loss on derivative
instruments, goodwill impairment, impairment of intangibles via
acquisitions of businesses and the related tax impact, in addition
to its historical practice of excluding share-based compensation
expenses for non-GAAP results.
To supplement Tarena's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Tarena's management uses non-GAAP measures of
cost of revenues, operating expenses, operating income, net income,
and basic and diluted net income per ADS, which are adjusted from
results based on GAAP to exclude the share-based compensation
expenses, gain or loss on derivative instruments, goodwill
impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact. These non-GAAP financial
measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute
for, or superior to, GAAP results. In addition, calculation of the
non-GAAP financial measures may be different from the calculation
used by other companies, and therefore comparability may be
limited.
Tarena's management believes that excluding the share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact provides meaningful
supplemental information regarding our performance and liquidity by
excluding certain items identified as non-recurring and infrequent
in nature, and non-cash charges. The amount of share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact are not built into the
Company's annual budgets and quarterly forecasts, which generally
will be the basis for information Tarena provides to analysts and
investors as guidance for future operating performance.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Tarena's current financial
performance and prospects for the future. A limitation of using
non-GAAP cost of revenues, operating expenses, operating income
(loss) and net income (loss), excluding the share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact is that the share-based
compensation charge has been and will continue to be a recurring
expense in the Company's business for the foreseeable future, and
gain or loss on derivative instruments, goodwill impairment,
impairment of intangibles via acquisitions of businesses and the
related tax impact may recur in the future. In order to mitigate
these limitations the Company has provided specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
GAAP financial measures that are most directly comparable to the
non-GAAP financial measures the Company has presented.
For further information, please contact:
Helen Song
Investor Relations
Tarena International Inc.
Tel: +8610 56219451
Email: ir@tedu.cn
--------------------------------------------------------------------------------
[1] excluding course enrollments in kid education programs
[2] excluding student enrollments in kid education programs
[3] excluding learning centers that are for kid education programs
only
[4] excluding course enrollments in kid education programs
[5] excluding student enrollments in kid education programs
[6] excluding course enrollments in kid education programs
[7] excluding kid education program
[8] excluding course enrollments in kid education programs
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands,
except share data and per share data)
|
|
As
of
|
|
September 30
|
|
December 31
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
|
|
863,422
|
|
|
810,672
|
Time
deposits
|
|
285,309
|
|
|
416,724
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
114,960
|
|
|
97,374
|
Amounts due from a
related party
|
|
105
|
|
|
—
|
Prepaid expenses and
other current assets
|
|
205,045
|
|
|
126,088
|
Total current
assets
|
|
1,468,841
|
|
|
1,450,858
|
Time
deposits
|
|
501
|
|
|
58,667
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
4,189
|
|
|
1,176
|
Property and
equipment, net
|
|
501,031
|
|
|
437,337
|
Goodwill
|
|
3,365
|
|
|
3,365
|
Long-term
investments
|
|
101,977
|
|
|
41,760
|
Other non-current
assets
|
|
120,233
|
|
|
91,849
|
Total
assets
|
|
2,200,137
|
|
|
2,085,012
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
15,580
|
|
|
4,502
|
Amounts due to a
related party
|
|
—
|
|
|
79
|
Income taxes
payable
|
|
105,708
|
|
|
91,240
|
Deferred
revenue
|
|
326,576
|
|
|
266,061
|
Accrued expenses and
other current liabilities
|
|
145,268
|
|
|
117,867
|
Total current
liabilities
|
|
593,132
|
|
|
479,749
|
Other non-current
liabilities
|
|
4,979
|
|
|
7,043
|
Total
liabilities
|
|
598,111
|
|
|
486,792
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
—
|
|
|
—
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Class A ordinary
shares
|
|
326
|
|
|
302
|
Class B ordinary
shares
|
|
74
|
|
|
86
|
Treasury
stock(a)
|
|
(206,215)
|
|
|
(93,761)
|
Additional paid-in
capital
|
|
1,066,896
|
|
|
995,216
|
Accumulated other
comprehensive income
|
|
55,643
|
|
|
58,204
|
Retained
earnings
|
|
685,302
|
|
|
638,173
|
Total shareholders'
equity
|
|
1,602,026
|
|
|
1,598,220
|
Total liabilities
and shareholders' equity
|
|
2,200,137
|
|
|
2,085,012
|
|
Note:
(a) On August 21, 2017,
the board of directors has authorized a share repurchase plan under
which the Company may repurchase up to US$30 million of its shares
over the next 12 months.
According to the
plan, the share repurchases may be made from time to time on the
open market at prevailing market prices, in privately negotiated
transactions, in block trades and/or through other legally
permissible means, depending on market conditions and in accordance
with applicable rules and regulations. Tarena's board of directors
will review the share repurchase plan periodically, and may
authorize adjustment of its terms and size. The Company expects to
fund repurchases made under this plan from its existing cash
balance.
As of September 30,
2017, the Company repurchased 1,221,550 Class A ordinary shares
from the open market with the consideration of US$17.1 million (RMB
112,454,061).
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(in thousands,
except share data and per share data)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30
|
|
For the Nine Months Ended September
30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Net
revenues
|
568,226
|
|
480,959
|
|
1,356,807
|
|
1,115,566
|
Cost of
revenues(a)
|
(158,246)
|
|
(120,856)
|
|
(429,590)
|
|
(325,675)
|
Gross
profit
|
409,980
|
|
360,103
|
|
927,217
|
|
789,891
|
Selling and marketing
expenses(a)
|
(190,002)
|
|
(149,722)
|
|
(493,465)
|
|
(389,035)
|
General and
administrative expenses(a)
|
(96,847)
|
|
(79,774)
|
|
(269,845)
|
|
(222,923)
|
Research and
development expenses(a)
|
(28,670)
|
|
(16,807)
|
|
(67,605)
|
|
(44,063)
|
Operating
income
|
94,461
|
|
113,800
|
|
96,302
|
|
133,870
|
Interest
income
|
5,101
|
|
4,252
|
|
13,482
|
|
18,612
|
Other
income
|
6,295
|
|
5,721
|
|
17,980
|
|
10,899
|
Gain(Loss) from fair
value change of foreign currency forward
|
-
|
|
-
|
|
-
|
|
(12,898)
|
Foreign exchange
loss
|
(2,130)
|
|
1,264
|
|
(4,462)
|
|
(2,481)
|
Income before
income taxes
|
103,727
|
|
125,037
|
|
123,302
|
|
148,002
|
Income tax
expense
|
(6,762)
|
|
(4,739)
|
|
(13,086)
|
|
(8,881)
|
Net
income
|
96,965
|
|
120,298
|
|
110,216
|
|
139,121
|
Net income
attributable to Class A and Class B ordinary
shareholders
|
96,965
|
|
120,298
|
|
110,216
|
|
139,121
|
|
|
|
|
|
|
|
|
Net income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
1.69
|
|
2.16
|
|
1.93
|
|
2.51
|
Diluted
|
1.62
|
|
2.05
|
|
1.84
|
|
2.37
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
57,433,015
|
|
55,722,319
|
|
57,042,450
|
|
55,393,174
|
Diluted
|
59,719,589
|
|
58,649,835
|
|
59,792,579
|
|
58,673,904
|
|
|
|
|
|
|
|
|
Net
income
|
96,965
|
|
120,298
|
|
110,216
|
|
139,121
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
(5,915)
|
|
2,358
|
|
(12,311)
|
|
11,791
|
Unrealized gain on
available for sale securities, net of RMB905 (RMB2,424 for the nine
months in 2017) income taxes
|
5,129
|
|
208
|
|
23,488
|
|
208
|
Less:
reclassification adjustment for gain on available for sale
securities realized in net income, net of RMB905 (RMB2,424 for the
nine months in 2017) income taxes
|
(5,129)
|
|
-
|
|
(13,738)
|
|
-
|
Comprehensive
income
|
91,050
|
|
122,864
|
|
107,655
|
|
151,120
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30
|
|
For the Nine months Ended
September 30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Cost of
revenues
|
345
|
|
1,017
|
|
811
|
|
2,281
|
Selling and marketing
expenses
|
1,247
|
|
971
|
|
2,623
|
|
3,038
|
General and
administrative expenses
|
16,176
|
|
10,180
|
|
40,721
|
|
34,987
|
Research and
development expenses
|
2,568
|
|
1,137
|
|
6,524
|
|
3,507
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except share data and per share data)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
September 30
|
|
For the Nine
Months Ended
September 30
|
|
2017
|
|
2016
|
|
2017
|
|
2015
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
GAAP Cost of
revenues
|
158,246
|
|
120,856
|
|
429,590
|
|
325,675
|
Share-based
compensation expense in cost of revenues
|
345
|
|
1,017
|
|
811
|
|
2,281
|
Non-GAAP Cost of
revenues
|
157,901
|
|
119,839
|
|
428,779
|
|
323,394
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
190,002
|
|
149,722
|
|
493,465
|
|
389,035
|
Share-based
compensation expense in selling and marketing expenses
|
1,247
|
|
971
|
|
2,623
|
|
3,038
|
Non-GAAP Selling
and marketing expenses
|
188,755
|
|
148,751
|
|
490,842
|
|
385,997
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
96,847
|
|
79,774
|
|
269,845
|
|
222,923
|
Share-based
compensation expense in general and administrative
expenses
|
16,176
|
|
10,180
|
|
40,721
|
|
34,987
|
Non-GAAP General
and administrative expenses
|
80,671
|
|
69,594
|
|
229,124
|
|
187,936
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
28,670
|
|
16,807
|
|
67,605
|
|
44,063
|
Share-based
compensation expense in research and development
expenses
|
2,568
|
|
1,137
|
|
6,524
|
|
3,507
|
Non-GAAP Research
and development expenses
|
26,102
|
|
15,670
|
|
61,081
|
|
40,556
|
|
|
|
|
|
|
|
|
Operating
income
|
94,461
|
|
113,800
|
|
96,302
|
|
133,870
|
Share-based
compensation expenses
|
20,336
|
|
13,305
|
|
50,679
|
|
43,813
|
Non-GAAP Operating
income
|
114,797
|
|
127,105
|
|
146,981
|
|
177,683
|
|
|
|
|
|
|
|
|
Net
income
|
96,965
|
|
120,298
|
|
110,216
|
|
139,121
|
Share-based
compensation expenses
|
20,336
|
|
13,305
|
|
50,679
|
|
43,813
|
Loss on foreign
currency forward contract
|
—
|
|
—
|
|
—
|
|
12,898
|
Non-GAAP Net
income
|
117,301
|
|
133,603
|
|
160,895
|
|
195,832
|
Non-GAAP net
income attributable to Class A and Class B ordinary
shareholders
|
117,301
|
|
133,603
|
|
160,895
|
|
195,832
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
2.04
|
|
2.40
|
|
2.82
|
|
3.54
|
Diluted
|
1.96
|
|
2.28
|
|
2.69
|
|
3.34
|
Weighted average
number of ordinary shares outstanding used in calculating
Non-GAAP net income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
57,433,015
|
|
55,722,319
|
|
57,042,450
|
|
55,393,174
|
Diluted
|
59,719,589
|
|
58,649,835
|
|
59,792,579
|
|
58,673,904
|
|
Notes:
(a) The Non-GAAP net
income per share is computed using Non-GAAP net income attributable
to ordinary shareholders and the same number of ordinary shares
used in GAAP basic and diluted net income per share
calculation.
(b) There was no tax
impact of share-based compensation expenses and loss on foreign
currency forward contract for the third quarter and the first nine
months ended September 30, 2017 and 2016.
|
View original
content:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-third-quarter-2017-results-300559513.html
SOURCE Tarena International, Inc.