- Fourth Quarter 2017 Net Revenue Up 9.1% Year-Over-Year to
$41.7 Million, At High-End of
Guidance Range -
- Fourth Quarter 2017 Cash Receipts from Online Course
Registration Up 22.2% Year-Over-Year to $22.3 Million -
- Declares Annual Special Cash Dividend of $0.1125 per Ordinary Share or $0.45 per ADS -
BEIJING, Nov. 28, 2017 /PRNewswire/ -- China Distance
Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a
leading provider of online education and value-added services for
professionals and corporate clients in China, today announced unaudited financial
results for the fourth quarter and fiscal year 2017 ended
September 30, 2017.
Fourth Quarter Fiscal 2017 Financial and Operational
Highlights
- Total course enrollments were 830,000, a decrease of 17.8% from
the fourth quarter of fiscal 2016.
- Cash receipts from online course registration were $22.3 million, a 22.2% increase from the fourth
quarter of fiscal 2016.
- Net revenue increased by 9.1% to $41.7
million from $38.2 million in
the prior year period.
- Gross profit was $25.2 million,
flat compared with the prior year period.
- Non-GAAP1 gross profit was $25.2 million, flat compared with the prior year
period.
- Gross margin was 60.3%, compared with 65.8% in the prior year
period. Non-GAAP1 gross margin was 60.4%, compared with
65.9% in the prior year period.
- Operating income decreased by 27.7% to $10.5 million from $14.6
million in the prior year period.
- Non-GAAP1 operating income decreased by 25.9% to
$11.2 million from $15.1 million in the prior year period.
- Net income decreased by 52.0% to $5.9
million from $12.2 million in
the prior year period.
- Non-GAAP1 net income decreased by 43.5% to
$7.2 million from $12.7 million in the prior year period.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.178 and $0.177, respectively, compared with basic and
diluted net income per ADS of $0.370
and $0.369, respectively, for the
fourth quarter of fiscal 2016. Each ADS represents four ordinary
shares.
- Basic and diluted non-GAAP1 net income per ADS were
$0.219 and $0.218, respectively, compared with basic and
diluted non-GAAP1 net income per ADS of $0.387 and $0.385,
respectively, for the fourth quarter of fiscal 2016.
- Cash flow from operations decreased by 49.8% to $2.9 million from $5.8
million in the fourth quarter of fiscal 2016.
- Completion of acquisition of 40% equity interest in Beijing
Ruida in September 2017.
Fiscal Year 2017 Financial and Operational Highlights
- Total course enrollments were 3.4 million, a decrease of 8.5%
from fiscal year 2016.
- Cash receipts from online course registration were $109.5 million, a 12.5% increase from fiscal year
2016.
- Net revenue increased by 11.4% to $131.0
million from $117.5 million in
fiscal year 2016.
- Gross profit increased by 6.3% to $73.6
million from $69.2 million in
fiscal year 2016.
- Non-GAAP1 gross profit increased by 6.3% to
$73.7 million from $69.4 million in fiscal year 2016.
- Gross margin was 56.2%, compared with 58.9% in fiscal year
2016. Non-GAAP1 gross margin was 56.3%, compared with
59.0% in fiscal year 2016.
- Operating income decreased by 26.5% to $21.1 million from $28.7
million in fiscal year 2016.
- Non-GAAP1 operating income decreased by 24.5% to
$23.2 million from $30.7 million in fiscal year 2016.
- Net income decreased by 43.2% to $14.9
million from $26.3 million in
fiscal year 2016.
- Non-GAAP1 net income decreased by 37.4% to
$17.7 million from $28.3 million in fiscal year 2016.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.453 and $0.448, respectively, compared with basic and
diluted net income per ADS of $0.767
and $0.759, respectively, for fiscal
year 2016. Each ADS represents four ordinary shares.
- Basic and diluted non-GAAP1 net income per ADS were
$0.539 and $0.532, respectively, compared with basic and
diluted non-GAAP1 net income per ADS of $0.829 and $0.818,
respectively, for fiscal year 2016.
- Cash flow from operations decreased by 4.6% to $37.1 million from $38.9
million in fiscal year 2016.
1 For more
information about the non-GAAP financial measures contained in this
press release, please see "Use of Non-GAAP Financial Measures"
below.
|
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "We are pleased to report fourth quarter fiscal
2017 revenue growth of 9.1% year-over-year, at the high end of our
guidance range, driven by the continued robust growth of our
accounting vertical and strong growth from the sale of learning
simulation software. Our fourth quarter total enrollments declined
by 17.8% year-over-year, primarily due to a decline in Accounting
Certificate and accounting continuing education course enrollments,
as a result of the previously disclosed suspension of the
Accounting Certificate examination. Excluding the enrollments of
these courses, however, our fourth quarter total enrollments
increased by 28.2% year-over-year.
"Despite the adverse impact of the suspension of the Accounting
Certificate Examination, we saw healthy growth in total cash
receipts from online course registration, which increased by 22.2%
year-over-year in the fourth quarter, led once again by strong
growth in cash receipts from online accounting course registration
of 29.9% year-over-year. Continuing the momentum in cash receipts
growth, we are pleased to report that we've kicked-off fiscal year
2018 on a positive note, as our total cash receipts from online
course registration in the first quarter fiscal 2018 through last
week grew over 50% year-over-year."
Mr. Zhu added, "In-line with our strategy to build out certain
practice areas where we see strong growth potential with
complementary offerings, in September
2017 we successfully closed our acquisition of a 40% equity
interest in Beijing Ruida Chengtai Education Technology Co., Ltd.
('Beijing Ruida'), a leading
provider of exam preparation services for participants in
China's National Judicial
Examination, for RMB192 million
($28.8 million) as previously
announced. Our early integration efforts have been seamless with
Beijing Ruida delivering strong revenue of over RMB190 million during the 2017 National Judicial
Examination preparation season. In addition, our investment in
Beijing Ruida will enable us to leverage our leading online
learning platform to gain a deeper foothold in the legal education
services arena.
"We continue to focus on growing our existing industry
verticals, and utilizing our resources to broaden our course
offerings and services in key disciplines. Our goal is to build
industry-leading education verticals that promote our lifelong
learning ecosystem, with a commitment to providing best-of-breed
content as well as different modalities of learning and solutions
to best serve a broad constituency of student and enterprise needs.
As we head into fiscal 2018, we remain confident in our ability to
deliver superior learning outcomes, expand our service offerings
and maximize shareholder value," Mr. Zhu concluded.
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, said, "The significant year-over-year
decrease in our fourth quarter and fiscal year 2017 operating
margins was primarily due to increased salaries and related
expenses, as well as an increase in advertising and promotional
expenses. The softer growth in revenue due to the suspension of the
Accounting Certificate Examination also adversely impacted our
operating margins. The increase in salaries and related expenses
was mainly attributable to an upfront investment in additional
headcount ahead of fiscal 2018 to best position CDEL to drive key
growth initiatives in the coming quarters. As such, we expect
headcount to remain relatively stable over the next few quarters.
The increase in our advertising and promotional expenses in the
fourth quarter was aimed at driving key growth initiatives as well,
and as we have previously indicated, we expect the level of
advertising and promotional spending to moderate in fiscal 2018. We
are pleased to see early returns from these investments and are
encouraged by the acceleration in growth of cash receipts in our
fourth quarter fiscal 2017 and in our first quarter fiscal 2018 to
date. As always, we strive to maintain operating efficiency while
balancing our growth and profitability."
Dividend
The Company today announced that its Board of Directors has
declared a special cash dividend of $0.1125 per ordinary share on its outstanding
shares to shareholders of record as of the close of trading on
January 12, 2018.
Holders of American Depositary Shares ("ADS"), each representing
four ordinary shares of CDEL, are accordingly entitled to a cash
dividend of $0.45 per ADS. The
depository, Deutsche Bank Trust Company Americas, will charge a fee
of $0.02 per ADS when the dividends
are distributed on or about January 18,
2018.
Subject to the Company's ongoing financial performance, cash
position, budget and business plan, and market conditions, the
Company's Board of Directors will, on a yearly basis, consider
paying a dividend.
Fourth Quarter Fiscal 2017 Financial Results
Net Revenue. Total net revenue increased by 9.1%
to $41.7 million in the fourth
quarter of fiscal 2017 from $38.2
million in the fourth quarter of fiscal 2016. Net revenue
from online education services, books and reference materials, and
other sources contributed 76.8%, 5.0% and 18.2%, respectively, of
total net revenues for the fourth quarter of fiscal 2017.
Online education services. Net revenue from online
education services increased by 5.2% to $32.0 million in the fourth quarter of fiscal
2017 from $30.5 million in the fourth
quarter of fiscal 2016, mainly due to relatively higher revenue
growth from CDEL's accounting vertical. In particular, the
strong revenue growth of APQE, CPA and practical skills training
courses in the accounting vertical more than offset the adverse
revenue impact from the suspension of the Accounting Certificate
Examination and the downstream effect of this examination
suspension on Accounting Continuing Education revenue.
Books and reference materials. Net revenue from books and
reference materials decreased by 24.0% to $2.1 million in the fourth quarter of fiscal
2017, from $2.8 million in the fourth
quarter of fiscal 2016.
Others. Net revenue from other sources increased by 50.5%
to $7.6 million in the fourth quarter
of fiscal 2017 from $5.0 million in
the fourth quarter of fiscal 2016, primarily due to revenue growth
from the sale of learning simulation software.
Cost of Sales. Cost of sales increased by 26.5% to
$16.6 million in the fourth quarter
of fiscal 2017 from $13.1 million in
the fourth quarter of fiscal 2016. Non-GAAP1 cost of
sales increased by 26.6% to $16.5
million in the fourth quarter of fiscal 2017 from
$13.0 million in the fourth quarter
of fiscal 2016. The increase was mainly due to increased salaries
and related expenses resulting from a growing number of personnel,
as well as increased cost of books and reference materials.
Gross Profit and Gross Margin. Gross profit
was $25.2 million in the fourth
quarter of fiscal 2017, flat compared with the prior year period.
Non-GAAP1 gross profit was $25.2
million, also flat compared with the prior year period.
Gross margin was 60.3% in the fourth quarter of fiscal 2017,
compared with 65.8% in the fourth quarter of fiscal 2016.
Non-GAAP1 gross margin was 60.4% in the fourth quarter
of fiscal 2017, compared with 65.9% in the fourth quarter of fiscal
2016.
Operating Expenses. Total operating expenses
increased by 35.6% to $14.9 million
in the fourth quarter of fiscal 2017, from $11.0 million in the prior year period.
Non-GAAP1 total operating expenses increased by 35.9% to
$14.3 million in the fourth quarter
of fiscal 2017, from $10.6 million in
the prior year period.
Selling expenses. Selling expenses increased by 44.2% to
$8.9 million in the fourth quarter of
fiscal 2017 from $6.2 million in the
prior year period. Non-GAAP1 selling expenses increased
by 44.4% to $8.9 million in the
fourth quarter of fiscal 2017 from $6.2
million in the prior year period. The increase was primarily
driven by increased salaries and related expenses, increased
advertising and promotional expenses, and increased commissions to
online agents.
General and administrative expenses. General and
administrative expenses increased by 24.7% to $6.0 million in the fourth quarter of fiscal 2017
from $4.8 million in the prior year
period. Non-GAAP1 general and administrative expenses
increased by 24.0% to $5.5 million in
the fourth quarter of fiscal 2017 from $4.4
million in the prior year period. The increase was mainly
due to increased professional fees, as well as other miscellaneous
expenses.
Income Tax Expense. Income tax expense decreased
by 22.7% to $2.1 million in the
fourth quarter of fiscal 2017 from $2.7
million in the prior year period, primarily due to a
decrease in taxable income.
Net Income. As a result of the foregoing, net
income decreased by 52.0% to $5.9
million in the fourth quarter of fiscal 2017 from
$12.2 million in the prior year
period. Non-GAAP1 net income decreased by 43.5% to
$7.2 million in the fourth quarter of
fiscal 2017 from $12.7 million in the
prior year period.
Operating Cash Flow. Net operating cash
inflow decreased by 49.8% to $2.9
million in the fourth quarter of fiscal 2017 from
$5.8 million in the prior year
period. The decrease in operating cash inflow was mainly
attributable to the decrease in net income before non-cash items
generated in the fourth quarter of fiscal 2017. The increase in
accounts receivable, prepayments and other current assets, and the
decrease in deferred revenue and deferred tax liabilities also
contributed to the operating cash outflow. This operating cash
outflow was partially offset by the increase in accrued expenses
and other liabilities, and income tax payable.
Cash and Cash Equivalents, Term Deposits, Restricted Cash
and Short-term Investments. Cash and cash equivalents, term
deposits, restricted cash and short-term investments as of
September 30, 2017 decreased by 6.3%
to $100.6 million from $107.4 million as of June
30, 2017, mainly due to the payment of purchase
consideration of 40% equity interest in Beijing Ruida and 10.72%
equity interest in Hangzhou Wanting of $28.8
million and $2.6 million,
respectively. The decrease was partially offset by operating cash
flow generated and a 3-year bank loan of $19.9 million raised in the fourth quarter of
fiscal 2017.
Fiscal Year 2017 Financial Results
Net revenue. Total net revenue increased by 11.4%
to $131.0 million in fiscal year
2017, from $117.5 million in fiscal
year 2016. Net revenue from online education services, books and
reference materials, and other sources contributed 72.9%, 6.9% and
20.2%, respectively, of total net revenues for fiscal year
2017.
Online education services. Net revenue from online
education services increased by 1.7% to $95.5 million in fiscal year 2017 from
$93.9 million in fiscal year
2016.
Books and reference materials. Net revenue from books and
reference materials increased by 11.3% to $9.0 million in fiscal year 2017 from
$8.1 million in fiscal year 2016.
Others. Net revenue from other sources increased by 70.4%
to $26.5 million in fiscal year 2017
from $15.6 million in fiscal year
2016.
Cost of Sales. Cost of sales increased by
18.8% to $57.4 million in fiscal year
2017, from $48.3 million in fiscal
year 2016. Non-GAAP1 cost of sales increased by 18.8% to
$57.2 million in fiscal year 2017
from $48.2 million in fiscal year
2016.
Gross Profit. Gross profit increased by
6.3% to $73.6 million in fiscal year
2017 from $69.2 million in fiscal
year 2016. Non-GAAP1 gross profit increased by 6.3% to
$73.7 million in fiscal year 2017
from $69.4 million in fiscal year
2016. Gross margin for fiscal year 2017 was 56.2%, compared with
58.9% in fiscal year 2016. Non-GAAP1 gross margin for
fiscal year 2017 was 56.3%, compared with 59.0% in fiscal year
2016.
Operating Expenses. Total operating
expenses increased by 31.7% to $54.4
million in fiscal year 2017 from $41.3 million in fiscal year 2016.
Non-GAAP1 total operating expenses increased by 32.9% to
$52.4 million in fiscal year 2017
from $39.4 million in fiscal year
2016.
Selling expenses. Selling expenses increased by 42.4% to
$34.9 million in fiscal year 2017
from $24.5 million in fiscal year
2016. Non-GAAP1 selling expenses increased by 42.5% to
$34.8 million in fiscal year 2017
from $24.4 million in fiscal year
2016.
General and administrative expenses. General and
administrative expenses increased by 16.0% to $19.5 million in fiscal year 2017 from
$16.8 million in fiscal year 2016.
Non-GAAP1 general and administrative expenses increased
by 17.3% to $17.6 million in fiscal
year 2017 from $15.0 million in
fiscal year 2016.
Income Tax Expense. Income tax expense decreased
by 24.9% to $4.6 million in fiscal
year 2017 from $6.2 million in fiscal
year 2016.
Net Income. Net income decreased by 43.2% to
$14.9 million in fiscal year 2017
from $26.3 million in fiscal year
2016. Non-GAAP1 net income decreased by 37.4% to
$17.7 million in fiscal year 2017
from $28.3 million in fiscal year
2016.
Operating Cash Flow. Net operating cash inflow
decreased by 4.6% to $37.1 million
from $38.9 million in fiscal year
2016.
Outlook
For the first quarter of fiscal 2018, the Company expects to
generate total net revenue in the range of $33.6 million to $35.2 million, representing
year-over-year growth of approximately 5% to 10%.
For fiscal year 2018, the Company expects to generate total net
revenues in the range of $150.6 million to
$157.2 million, representing year-over-year growth of
approximately 15% to 20%.
The above guidance reflects the Company's current and
preliminary view, which is subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Wednesday, November 29, 2017 (9:00 p.m. Beijing Time on November 29, 2017) to discuss financial results
and answer questions from investors and analysts. Listeners may
access the call by dialing:
US Toll Free: +1-866-519-4004
International: +65-6713-5090
Mainland China: 400-620-8038
Hong Kong: +852-3018-6771
United Kingdom:
+44-203-6214-779
Passcode: CDEL or DL
A telephone replay will be available two hours after the call
until December 6, 2017 by
dialing:
US Toll Free: +1-855-452-5696
International: +61-2-8199-0299
Mainland China: 400-632-2162
Hong Kong: 800-963-117
United Kingdom: 0808-234-0072
Replay Passcode: 3166629
Additionally, a live and archived webcast of the conference call
will be available at http://ir.cdeledu.com.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider
of online education and value-added services for professionals and
corporate clients in China. The
courses offered by the Company through its websites are designed to
help professionals seeking to obtain and maintain professional
licenses and to enhance their job skills through our professional
development courses in China in
the areas of accounting, healthcare, engineering &
construction, and other industries. The Company also offers
professional education courses for participants in the national
judicial examination, online test preparation courses for
self-taught learners pursuing higher education diplomas or degrees,
test preparation courses for university students intending to take
the nationwide graduate school entrance exam, practical accounting
training courses for college students and working professionals, as
well as online language courses and third-party developed online
courses. In addition, the Company provides business services to
corporate clients, including but not limited to tax advisory,
bookkeeping and accounting outsourcing services. For further
information, please visit http://ir.cdeledu.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "may," "should," "potential," "continue," "expect,"
"predict," "anticipate," "future," "intend," "plan," "believe,"
"is/are likely to," "estimate" and similar statements. Among other
things, the outlook for the first quarter and full fiscal year 2018
and quotations from management in this announcement, as well as the
Company's strategic and operational plans (in particular, the
anticipated benefits of strategic growth initiatives, including
acquisition and strategic investments such as the acquisition of
40% equity interest in Beijing Ruida, as well as cost control)
contain forward-looking statements. The Company may also make
written or oral forward-looking statements in its periodic and
annual reports to the SEC, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: goals and growth strategies; future
prospects and market acceptance of the Company's courses and other
products and services; future business development and results of
operations; projected revenues, profits, earnings and other
estimated financial information; projected enrollment numbers;
plans to expand and enhance courses and other products and
services; competition in the education and test preparation
markets; and Chinese laws, regulations and policies, including
those applicable to the Internet, Internet content providers, the
education and telecommunications industries, mergers and
acquisitions, taxation and foreign exchange.
Further information regarding these and other risks is included
in the Company's annual report on Form 20-F and other documents
filed or furnished with the SEC. All information provided in this
press release is as of the date of this press release. The Company
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth in this press
release is preliminary and subject to adjustments. Adjustments to
the financial statements may be identified when audit work is
performed for the year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial results
presented in accordance with U.S. generally accepted accounting
principles, or GAAP, the Company uses the following measures
defined as non-GAAP financial measures: non-GAAP net income,
operating income, gross profit, cost of sales, selling expenses,
general and administrative expenses, net income margin, operating
margin, gross profit margin and basic and diluted earnings per ADS
and per share. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP
financial measures, please see the table captioned "Reconciliations
of non-GAAP measures to comparable GAAP measures" set forth at the
end of this release.
The Company believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses and impairment loss of long-term investments. However,
non-GAAP financial measures may not be indicative of the Company's
operating performance from a cash perspective. The Company believes
that both management and investors benefit from these non-GAAP
financial measures in assessing its performance and when planning
and forecasting future periods. These non-GAAP financial measures
also facilitate management's internal comparisons to the Company's
historical performance and liquidity. The Company computes its
non-GAAP financial measures using the same consistent method from
quarter to quarter. The Company believes these non-GAAP financial
measures are useful to investors in allowing for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making. A
limitation of excluding share-based compensation expenses and
impairment loss of long-term investments from the above-mentioned
line items and presenting these non-GAAP measures is that such
charges may continue to be for the foreseeable future a significant
recurring expense in our business. Management compensates for this
limitation by providing specific information regarding the GAAP
amounts excluded from each non-GAAP measure. The accompanying table
at the end of this release provides more detail on the
reconciliations between GAAP financial measures that are most
directly comparable to non-GAAP financial measures.
Contacts:
China Distance
Education Holdings Limited
Investor Relations
Department
Tel: +86-10-8231-9999
ext. 1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
DL@tpg-ir.com
|
(Financial Tables on Following Pages)
China Distance
Education Holdings Limited
|
Consolidated
Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
|
|
|
|
|
|
September
30, 2016
|
|
September 30,
2017
|
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
53,677
|
|
60,526
|
|
|
Restricted
cash
|
15,547
|
|
34,855
|
|
|
Short term
investments
|
1,278
|
|
5,261
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$1,190 and
US$661 as of September 30, 2017 and September 30, 2016,
respectively
|
5,454
|
|
5,525
|
|
|
Inventories
|
971
|
|
864
|
|
|
Prepayment and other
current assets
|
5,893
|
|
10,439
|
|
|
Amount due from a
related party
|
208
|
|
-
|
|
|
Deferred tax assets,
current portion
|
1,676
|
|
1,654
|
|
|
Deferred
cost
|
1,118
|
|
711
|
|
|
Total
current assets
|
85,822
|
|
119,835
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
13,908
|
|
14,022
|
|
|
Goodwill
|
29,392
|
|
29,459
|
|
|
Long term
investments
|
3,079
|
|
43,631
|
|
|
Other intangible
assets, net
|
11,675
|
|
9,947
|
|
|
Deposit for purchase
of non-current assets
|
1,116
|
|
641
|
|
|
Other non-current
assets
|
3,928
|
|
7,016
|
|
|
Total
non-current assets
|
63,098
|
|
104,716
|
|
|
|
|
|
|
|
|
Total
assets
|
148,920
|
|
224,551
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
borrowings
|
15,551
|
|
29,965
|
|
|
Accrued expenses and
other liabilities (including accrued expenses and other
liabilities of the consolidated VIE without recourse to China
Distance Education
Holdings Limited of US$31,684 and US$26,279 as of September 30,
2017 and
September 30, 2016, respectively)
|
30,564
|
|
38,767
|
|
|
Amount due to a
related party
|
-
|
|
1,648
|
|
|
Income tax payable
(including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$3,641
and
US$3,353 as of September 30, 2017 and September 30, 2016,
respectively)
|
5,308
|
|
6,750
|
|
|
Deferred revenue
(including deferred revenue of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$49,575
and
US$35,437 as of September 30, 2017 and September 30, 2016,
respectively)
|
36,332
|
|
50,506
|
|
|
Refundable fees
(including refundable fees of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$1,074
and US$862
as of September 30, 2017 and September 30, 2016,
respectively)
|
862
|
|
1,074
|
|
|
Total
current liabilities
|
88,617
|
|
128,710
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities, non-current portion
|
3,831
|
|
3,099
|
|
|
Long-term bank
borrowing
|
-
|
|
19,930
|
|
|
Total
non-current liabilities
|
3,831
|
|
23,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
92,448
|
|
151,739
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share at September 30, 2017 and
September 30, 2016, respectively; Authorized –500,000,000 shares at
September
30, 2017 and September 30, 2016, respectively; Issued and
outstanding –
131,854,773 and 131,729,773 shares at September 30, 2017 and
September 30,
2016, respectively)
|
13
|
|
13
|
|
|
Additional paid-in
capital
|
15,697
|
|
19,097
|
|
|
Accumulated other
comprehensive loss
|
(3,418)
|
|
(3,367)
|
|
|
Retained
Earnings
|
32,944
|
|
33,040
|
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
45,236
|
|
48,783
|
|
|
Noncontrolling
interest
|
11,236
|
|
24,029
|
|
|
Total
equity
|
56,472
|
|
72,812
|
|
|
Total
liabilities and equity
|
148,920
|
|
224,551
|
|
|
|
|
|
|
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Three Months
Ended September 30,
|
|
2016
|
|
2017
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
30,454
|
|
32,045
|
|
Books and reference
materials
|
2,755
|
|
2,093
|
|
Others
|
5,030
|
|
7,570
|
|
- Sale
of learning simulation software
|
1,910
|
|
2,930
|
|
-
Business start-up training services
|
946
|
|
1,102
|
|
-
Others
|
2,174
|
|
3,538
|
|
Total
net revenues
|
38,239
|
|
41,708
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(11,835)
|
|
(14,513)
|
|
Cost of tangible
goods sold
|
(1,250)
|
|
(2,042)
|
|
Total
cost of sales
|
(13,085)
|
|
(16,555)
|
|
|
|
|
|
Gross
profit
|
25,154
|
|
25,153
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(6,175)
|
|
(8,906)
|
|
General and
administrative expenses
|
(4,841)
|
|
(6,037)
|
|
Total
operating expenses
|
(11,016)
|
|
(14,943)
|
Other operating
income
|
445
|
|
328
|
|
|
|
|
|
Operating
income
|
14,583
|
|
10,538
|
Impairment loss from
long-term investments
|
-
|
|
(679)
|
Interest
income
|
255
|
|
375
|
Interest
expense
|
(118)
|
|
(615)
|
Exchange gain
(loss)
|
243
|
|
(1,429)
|
|
|
|
|
|
Income
before income taxes
|
14,963
|
|
8,190
|
Income tax
expense
|
(2,653)
|
|
(2,051)
|
Loss from equity
method investment
|
(91)
|
|
(34)
|
|
|
|
|
Net
income
|
12,219
|
|
6,105
|
Net loss (income)
attributable to noncontrolling interest
|
6
|
|
(239)
|
Net
income attributable to China Distance Education
Holdings Limited
|
12,225
|
|
5,866
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.093
|
|
0.044
|
|
Diluted
|
0.092
|
|
0.044
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.370
|
|
0.178
|
|
Diluted
|
0.369
|
|
0.177
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
131,546,652
|
|
131,517,541
|
|
Diluted
|
132,362,078
|
|
132,197,374
|
China Distance
Education Holdings Limited
|
Consolidated
Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Year
Ended September 30,
|
|
2016
|
|
2017
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
93,923
|
|
95,503
|
|
Books and reference
materials
|
8,067
|
|
8,980
|
|
Others
|
15,558
|
|
26,505
|
|
- Sale
of learning simulation software
|
3,036
|
|
11,522
|
|
-
Business start-up training services
|
4,344
|
|
5,223
|
|
-
Others
|
8,178
|
|
9,760
|
|
Total
net revenues
|
117,548
|
|
130,988
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(43,796)
|
|
(50,540)
|
|
Cost of tangible
goods sold
|
(4,538)
|
|
(6,872)
|
|
Total
cost of sales
|
(48,334)
|
|
(57,412)
|
|
|
|
|
|
Gross
profit
|
69,214
|
|
73,576
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(24,517)
|
|
(34,910)
|
|
General and
administrative expenses
|
(16,778)
|
|
(19,468)
|
|
Total operating
expenses
|
(41,295)
|
|
(54,378)
|
Other operating
income
|
806
|
|
1,912
|
|
|
|
|
|
Operating
income
|
28,725
|
|
21,110
|
Impairment loss from
long-term investments
|
-
|
|
(679)
|
Interest
income
|
2,020
|
|
1,531
|
Interest
expense
|
(555)
|
|
(1,049)
|
Exchange
gain
|
2,462
|
|
128
|
|
|
|
|
|
Income
before income taxes
|
32,652
|
|
21,041
|
Income tax
expense
|
(6,150)
|
|
(4,620)
|
Loss from equity
method investment
|
(91)
|
|
(153)
|
|
|
|
|
Net
income
|
26,411
|
|
16,268
|
Net income
attributable to noncontrolling interest
|
(121)
|
|
(1,333)
|
Net
income attributable to China Distance Education
Holdings Limited
|
26,290
|
|
14,935
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.192
|
|
0.113
|
|
Diluted
|
0.190
|
|
0.112
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.767
|
|
0.453
|
|
Diluted
|
0.759
|
|
0.448
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
136,497,929
|
|
131,432,211
|
|
Diluted
|
138,465,944
|
|
133,203,255
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
2016
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
13,085
|
|
16,555
|
Share-based
compensation expense in cost of sales
|
|
40
|
|
43
|
Non-GAAP cost of
sales
|
|
13,045
|
|
16,512
|
|
|
|
|
|
Selling
expenses
|
|
6,175
|
|
8,906
|
Share-based
compensation expense in selling expenses
|
|
21
|
|
22
|
Non-GAAP selling
expenses
|
|
6,154
|
|
8,884
|
|
|
|
|
|
General and
administrative expenses
|
|
4,841
|
|
6,037
|
Share-based
compensation expense in general and administrative
expenses
|
|
442
|
|
581
|
Non-GAAP general and
administrative expenses
|
|
4,399
|
|
5,456
|
|
|
|
|
|
Gross
profit
|
|
25,154
|
|
25,153
|
Share-based
compensation expenses
|
|
40
|
|
43
|
Non-GAAP gross
profit
|
|
25,194
|
|
25,196
|
|
|
|
|
|
Gross profit
margin
|
|
65.8%
|
|
60.3%
|
Non-GAAP gross profit
margin
|
|
65.9%
|
|
60.4%
|
|
|
|
|
|
Operating
income
|
|
14,583
|
|
10,538
|
Share-based
compensation expenses
|
|
503
|
|
646
|
Non-GAAP operating
income
|
|
15,086
|
|
11,184
|
|
|
|
|
|
Operating
margin
|
|
38.1%
|
|
25.3%
|
Non-GAAP operating
margin
|
|
39.5%
|
|
26.8%
|
|
|
|
|
|
Net income
|
|
12,225
|
|
5,866
|
Share-based
compensation expense
|
|
503
|
|
646
|
Impairment loss from
long-term investments
|
|
-
|
|
679
|
Non-GAAP net
income
|
|
12,728
|
|
7,191
|
|
|
|
|
|
Net income
margin
|
|
32.0%
|
|
14.1%
|
Non-GAAP net income
margin
|
|
33.3%
|
|
17.2%
|
|
|
|
|
|
Net income per
share—basic
|
|
0.093
|
|
0.044
|
Net income per
share—diluted
|
|
0.092
|
|
0.044
|
Non-GAAP net income
per share—basic
|
|
0.097
|
|
0.055
|
Non-GAAP net income
per share—diluted
|
|
0.096
|
|
0.054
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.370
|
|
0.178
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.369
|
|
0.177
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—basic (note
1)
|
|
0.387
|
|
0.219
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—diluted (note
1)
|
|
0.385
|
|
0.218
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
131,546,652
|
|
131,517,541
|
Weighted average
shares used in calculating diluted net income per share
|
|
132,362,078
|
|
132,197,374
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
131,546,652
|
|
131,517,541
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
132,362,078
|
|
132,197,374
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
2016
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
48,334
|
|
57,412
|
Share-based
compensation expense in cost of sales
|
|
162
|
|
164
|
Non-GAAP cost of
sales
|
|
48,172
|
|
57,248
|
|
|
|
|
|
Selling
expenses
|
|
24,517
|
|
34,910
|
Share-based
compensation expense in selling expenses
|
|
84
|
|
85
|
Non-GAAP selling
expenses
|
|
24,433
|
|
34,825
|
|
|
|
|
|
General and
administrative expenses
|
|
16,778
|
|
19,468
|
Share-based
compensation expense in general and administrative
expenses
|
|
1,769
|
|
1,862
|
Non-GAAP general and
administrative expenses
|
|
15,009
|
|
17,606
|
|
|
|
|
|
Gross
profit
|
|
69,214
|
|
73,576
|
Share-based
compensation expenses
|
|
162
|
|
164
|
Non-GAAP gross
profit
|
|
69,376
|
|
73,740
|
|
|
|
|
|
Gross profit
margin
|
|
58.9%
|
|
56.2%
|
Non-GAAP gross profit
margin
|
|
59.0%
|
|
56.3%
|
|
|
|
|
|
Operating
income
|
|
28,725
|
|
21,110
|
Share-based
compensation expenses
|
|
2,015
|
|
2,111
|
Non-GAAP operating
income
|
|
30,740
|
|
23,221
|
|
|
|
|
|
Operating
margin
|
|
24.4%
|
|
16.1%
|
Non-GAAP operating
margin
|
|
26.2%
|
|
17.7%
|
|
|
|
|
|
Net income
|
|
26,290
|
|
14,935
|
Share-based
compensation expense
|
|
2,015
|
|
2,111
|
Impairment loss from
long-term investments
|
|
-
|
|
679
|
Non-GAAP net
income
|
|
28,305
|
|
17,725
|
|
|
|
|
|
Net income
margin
|
|
22.4%
|
|
11.4%
|
Non-GAAP net income
margin
|
|
24.1%
|
|
13.5%
|
|
|
|
|
|
Net income per
share—basic
|
|
0.192
|
|
0.113
|
Net income per
share—diluted
|
|
0.190
|
|
0.112
|
Non-GAAP net income
per share—basic
|
|
0.207
|
|
0.135
|
Non-GAAP net income
per share—diluted
|
|
0.204
|
|
0.133
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.767
|
|
0.453
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.759
|
|
0.448
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—basic (note
1)
|
|
0.829
|
|
0.539
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—diluted (note
1)
|
|
0.818
|
|
0.532
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
136,497,929
|
|
131,432,211
|
Weighted average
shares used in calculating diluted net income per share
|
|
138,465,944
|
|
133,203,255
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
136,497,929
|
|
131,432,211
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
138,465,944
|
|
133,203,255
|
|
|
|
|
|
|
Note 1: Each ADS
represents four ordinary shares
|
View original
content:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-financial-results-for-fourth-quarter-and-fiscal-year-2017-300562632.html
SOURCE China Distance Education Holdings Limited