Fourth Quarter Net Revenues Increased by 33.0%
Year-Over-Year, exceeding the guidance
Fourth Quarter
Total Student Enrollments up by 27.2% Year-Over-Year
Fourth Quarter Student Enrollments in Kid Education Programs up
by 270.4% Year-Over-Year
Fiscal Year Net Revenues Increased by 25.0%
Year-Over-Year
Fiscal Year Total Student Enrollments up
by 19.8% Year-Over-Year
Fiscal Year Student Enrollments
in Kid Education Programs up by 307.0% Year-Over-Year
Declares Annual Special Cash Dividend of
US$0.12 per Ordinary Share or
US$0.12 per ADS
BEIJING, March 5, 2018 /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 fourth quarter and fiscal year ended December 31, 2017.
Fourth Quarter 2017 Highlights
- Net revenues increased by 33.0% year-over-year to RMB617.0 million from RMB464.0 million in the same period in 2016.
- Gross profit increased by 31.3% year-over-year to RMB447.4 million from RMB340.6 million in the same period in 2016.
- Operating income was RMB72.9
million, compared to RMB96.0
million in the same period in 2016.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB99.6
million, compared to RMB120.0
million in the same period in 2016.
- Net income was RMB74.6 million,
compared to RMB102.7 million in the
same period in 2016.
- Non-GAAP net income, which excluded share-based compensation
expenses, was RMB101.3 million,
compared to RMB126.7 million in the
same period in 2016.
- Basic and diluted net income per American Depositary Share
("ADS") were RMB1.33 and RMB1.28, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were RMB1.80
and RMB1.74, respectively. Each ADS
represents one Class A ordinary share.
- The Company repurchased 534,116 Class A ordinary shares from
the open market for an aggregate consideration of US$7.4 million in the fourth quarter of
2017.
- Cash, cash equivalents and time deposits totaled RMB1,119.7 million as of December 31, 2017, compared to RMB1,286.1 million as of December 31, 2016.
- Deferred revenue totaled RMB302.2
million as of December 31,
2017, compared to RMB266.1
million as of December 31,
2016.
- Total course enrollments[1], defined as the cumulative number
of courses enrolled in by our students, in the fourth quarter of
2017 increased by 26.0% year-over-year to 35,145.
- Total student enrollments[2], defined as the total number of
new students recruited and registered, in the fourth quarter of
2017 increased by 27.2% year-over-year to 34,223.
- Total number of learning centers[3] increased to 184 as of
December 31, 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 fourth quarter of 2017 increased by
270.4% year-over-year to 3,271.
Fiscal Year 2017 Highlights
- Net revenues increased by 25.0% year-over-year to RMB1, 973.8 million from RMB1, 579.6 million in the same period in
2016.
- Gross profit increased by 21.6% year-over-year to RMB1,374.6 million from RMB1,130.5 million in the same period in
2016.
- Operating income was RMB169.2
million, compared to RMB229.8
million in the same period in 2016.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB246.6
million, compared to RMB297.7
million in the same period in 2016.
- Net income was RMB184.8 million,
compared to RMB241.9 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
RMB262.2 million, compared to
RMB322.6 million in the same period
in 2016.
- Basic and diluted net income per American Depositary Share
("ADS") were RMB3.25 and RMB3.10, 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 RMB4.61 and
RMB4.40, respectively.
- Total course enrollments[4] in fiscal year 2017 increased by
17.5% year-over-year to 120,162.
- Total student enrollments[5] in fiscal year 2017 increased by
19.8% year-over-year to 128,776.
- Total student enrollments in kid education programs in fiscal
year 2017 increased by 307.0% year-over-year to 9,580.
Mr. Shaoyun Han, Chairman and
Chief Executive Officer of Tarena, said, "We are pleased to finish
fiscal year 2017 with a strong momentum and record-high results in
net revenues as well as total number of student enrollments in both
professional education and kid education business. It is
encouraging to see an accelerated revenue growth of 33.0%
year-over-year in the fourth quarter of 2017, which exceed our
previously issued guidance. The solid topline growth was primarily
driven by our growing student base in professional education, with
a 27.2% enrollment growth in the quarter. Additionally, student
enrollment in kid education programs continued to achieve robust
momentum, up by 270.4% year over year in the fourth quarter."
"Despite challenging market conditions in the year, fiscal year
2017 as a whole was a year of successful business expansion and
enlarged market presence. We added a net of 39 learning centers and
rolled out to thirteen new cities during the year. At the same
time, we undertook new content initiatives to enhance our core
competency as a top level comprehensive education services
provider. Our course portfolio has been further extended and
upgraded to best cater to the market demand for new technology
through our proprietary curriculum development platform, strategic
alliances with well-known international enterprises and joint major
programs with universities and colleges. In particular, Python and
other AI related courses are gaining popularity, which we believe
will gradually become the new driver for future enrollment growth."
Mr. Han continued.
"We are also proud to see that our investments in Tongcheng and
Tongmei started to bear fruit. Leveraging on the teaching resources
and facilities with professional education business, our k-12
business has quickly expanded into 24 cities, with 30 separate
centers and 28 shared centers nationwide by the end of 2017. As a
result, total number of kid student enrollments more than tripled
in 2017. Looking ahead, we will continue the well-paced expansion
plan and further optimize center network with more refined
assessment metrics at each level of organization to quicken the
mature period of new centers. We believe our growth strategy will
strengthen the solid foundation for our long term growth for both
topline and bottom line." Mr. Han concluded.
Mr. Yuduo Yang, Tarena's Chief Financial Officer added, "Fourth
quarter recovered enrollment growth in professional education
business and exciting performance in k-12 education reflected our
ability to harvest from capacity expansion and new course
development efforts in recent quarters. We allocated more
advertisement and marketing resources at the end of fourth quarter
to improve utilization of facilities. The year-over-year decline of
utilization rate narrowed to approximately 210 basis points from
340 basis points in the previous quarter. Despite the fact that our
costs associated with the marketing efforts were incurred ahead of
the revenue ramp and most of the tuition fees from new student
enrollment in the fourth quarter will be recognized next quarter,
we will increasingly benefit from economies of scale and margin
pressure will gradually lessen over the coming quarters. With solid
business execution and strong market demand, we are confident to
deliver long-term value for all our stakeholders."
Dividend
The Company announced today that its board of directors has
approved and declared a cash dividend of US$0.12 per ordinary share, including both Class
A ordinary shares and Class B ordinary shares. The Company expects
that the aggregate amount of the dividend will not exceed
US$7.1 million. Holders of Tarena's
ADS, each representing one Class A ordinary share, are accordingly
entitled to the cash dividend of US$0.12 per ADS. The cash dividend will be paid
on or about June 9, 2018 to
shareholders of record as of the close of business on April 5, 2018.
Subject to the Company's ongoing financial performance, cash
position, budget and business plan and market conditions, the
Company may, on an annual basis, consider paying a special
dividend.
Fourth Quarter 2017 Results
Net Revenues
Net revenues increased by 33.0% to RMB617.0 million in the fourth quarter of 2017,
from RMB464.0 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 fourth quarter of 2017
increased by 26.0% to 35,145 from 27,897 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 18 in the fourth quarter, while the
total seat capacity[7] in our learning centers increased by 11.5%
to 56,984 as of December 31,2017 from
51,127 as of December 31, 2016 to
cater to the increased demand for our courses.
Beginning in the third quarter of 2017, we raised the standard
tuition fees on some 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
84%/16% and 81%/19% in the fourth quarter of 2017 and 2016,
respectively.
Cost of Revenues
Cost of revenues increased by 37.4% to RMB169.6 million in the fourth quarter of 2017,
from RMB123.4 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 31.3% to RMB447.4 million in the fourth quarter of 2017,
from RMB340.6 million in the same
period in 2016. Gross margin was 72.5% in the fourth quarter of
2017, compared with 73.4% in the same period in 2016. The decrease
in gross margin was mainly due to expansion in center network. Our
overall center utilization rate[8] in the fourth quarter of 2017
was 69.6%, compared with 71.7% in the same period in 2016.
Operating Expenses
Total operating expenses increased by 53.1% to RMB374.5 million in the fourth quarter of 2017,
from RMB244.6 million in the same
period in 2016. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 56.5% to
RMB348.3 million in the fourth
quarter of 2017, from RMB222.5
million in the same period in 2016. Total share-based
compensation expenses allocated to the related operating expenses
increased by 18.5% to RMB26.3 million
in the fourth quarter of 2017, from RMB22.2
million in the same period in 2016.
Selling and marketing expenses increased by 58.6% to
RMB219.7 million in the fourth
quarter of 2017, from RMB138.5
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 44.7% to
RMB122.5 million in the fourth
quarter of 2017, from RMB84.6 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
50.1% to RMB102.7 million, from
RMB68.4 million in the same period in
2016.
Research and development expenses increased by 50.6% to
RMB32.4 million in the fourth quarter
of 2017, from RMB21.5 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 RMB72.9
million for the fourth quarter of 2017, compared to
RMB96.0 million in the same period in
2016. Operating margin was 11.8% in the fourth quarter of 2017,
compared to 20.7% in the same period in 2016. Non-GAAP operating
income, which excluded share-based compensation expenses, was
RMB99.6 million, compared to
RMB120.0 million in the same period
in 2016. Non-GAAP operating margin was 16.1% in the fourth quarter
of 2017, compared to 25.9% in the same period in 2016.
Interest Income
Interest income was RMB7.5 million
in the fourth quarter of 2017, compared to RMB5.4 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 increase in interest income was primarily
due to higher tuition interest income in relation to our
installment payment plan for students, as well as higher bank
deposits.
Foreign Exchange Gain (Loss)
Foreign exchange loss was RMB1.8
million in the fourth quarter of 2017, compared to
RMB6.2 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 RMB12.7 million in the fourth quarter of 2017,
compared to RMB9.9 million in the
same period in 2016. The change was mainly due to an increase in
the effective tax rate.
Net Income
As a result of the foregoing, net income was RMB74.6 million in the fourth quarter of 2017,
compared to RMB102.7 million in the
same period in 2016. Non-GAAP net income, which excluded
share-based compensation expenses, was RMB101.3 million, compared to a non-GAAP net
income of RMB126.7 million in the
same period in 2016.
Cash Flow
Net cash inflow from operating activities for the fourth quarter
of 2017 was RMB36.3 million, compared
to RMB55.5 million in the same period
in 2016. The change was mainly due to lower net income in the
fourth quarter of 2017 and longer credit granting and tuition
payment procedures from third party financing institutions for
students. Capital expenditures for the quarter were RMB53.1 million.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS in the fourth quarter of
2017 were RMB1.33 and RMB1.28, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were RMB1.80
and RMB1.74, respectively.
Shares Issued and Outstanding
As of December 31, 2017, the
Company had 49,009,530 Class A and 7,206,059 Class B ordinary
shares outstanding. Each ADS represents one Class A ordinary
share.
Fiscal Year 2017 Results
Net Revenues
Net revenues increased by 25.0% to RMB1,973.8 million in 2017, from RMB1,579.6 million 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[9] for 2017 increased by 17.5%
year-over-year to 120,162, 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 33.4% to RMB599.2 million in 2017, from RMB449.1 million 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 21.6% to RMB1,374.6 million in 2017, from RMB1,130.5 million in 2016. Gross margin was
69.6% in 2017, compared to 71.6% in 2016. The decrease in gross
margin was mainly due to expansion of our center network.
Operating Expenses
Total operating expenses increased by 33.8% to RMB1,205.4 million in 2017, from RMB900.7 million in 2016. Total non-GAAP
operating expenses, which excluded share-based compensation
expenses, increased by 34.9% to RMB1,129.3
million in 2017, from RMB837.0
million in the same period in 2016. Total share-based
compensation expenses allocated to the related operating expenses
increased by 19.5% to RMB76.1 million
in 2017, from RMB63.7 million in
2016.
Selling and marketing expenses increased by 35.2% to
RMB713.1 million in 2017, from
RMB527.6 million 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 27.6% to
RMB392.3 million in 2017, from
RMB307.5 million 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 29.4% to
RMB331.8 million, from RMB256.4 million in 2016.
Research and development expenses increased by 52.5% to
RMB100.0 million in 2017, from
RMB65.6 million 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 RMB169.2
million in 2017, compared to RMB229.8
million in 2016. Operating margin was 8.6% in 2017, compared
to 14.6% in 2016. Non-GAAP operating income, which excluded
share-based compensation expenses, was RMB246.6 million in 2017, compared to
RMB297.7 million in 2016. Non-GAAP
operating margin was 12.5 % in 2017, compared to 18.8% in 2016.
Interest Income
Interest income was RMB21.0
million in 2017, compared to RMB24.0
million 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 2017 was primarily due to lower interest rate on bank
deposits.
Foreign Exchange Gain (Loss)
Foreign exchange loss was RMB6.3
million in 2017, compared to RMB3.8
million foreign exchange gain 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 RMB25.8
million in 2017, compared to RMB18.8
million in 2016. The change was mainly due to an increase in
the effective tax rate.
Net Income
As a result of the foregoing, net income was RMB184.8 million in 2017, compared to
RMB241.9 million in 2016. Non-GAAP
net income, which excluded share-based compensation expenses and
loss on foreign currency forward contract, was RMB262.2 million, compared to RMB322.6 million in 2016.
Cash Flow
Net operating cash flow in 2017 reached approximately
RMB288.7 million. Capital
expenditures were RMB177.3
million.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were RMB3.25 and RMB3.10
respectively in 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 RMB4.61 and RMB4.40, respectively.
Business Outlook
Based on the Company's current estimates, total net revenues for
the first quarter of 2018 are expected to be between RMB370.0 million and RMB390.0 million, representing an increase of
11.2% to 17.2% on a year-over-year basis.
The Company also expects its total net revenues for the full
year of 2018 to be between RMB2,300.0
million and RMB2,450.0
million, representing an increase of 16.5% to 24.1% 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 fourth quarter and fiscal
year ended December 31, 2017 at
8:00PM U.S. Eastern Time on
Monday, March 5, 2018 (9:00AM Beijing Time on Tuesday, March 6, 2018).
The dial-in details for the live conference call are as
follows:
United States: +1 845 675 0437
or +1 866 519 4004
Hong Kong: +852 3018 6771 or 800
906 601
China Mainland: 800 819 0121 or 400
620 8038
Taiwan: 00 801 126 920
Canada: +1 866 386 1016
United Kingdom: 0 808 234 6646
International: +65 6713 5090
Conference ID: 8186527
A replay of the call will be available approximately 2 hours
after the conclusion of the conference call through March 13, 2018. The dial-in details for the
replay are:
Hong Kong: 800 963 117
China Mainland: 800 870 0206
United States: +1 855 452 5696
Japan: 0 120 959 034
Malaysia: +60 3 7724 9579
Singapore: +65 3158 3682
New Zealand: 0 800 453 213
Australia: +61 2 8199 0299
International: +61 2 8199 0299
Conference ID: 8186527
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 four 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 509,000 students, cooperated with approximately 757
universities and colleges and placed students with approximately
134,000 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 kid education programs
[2] excluding kid education programs
[3] excluding learning centers that are for kid education programs
only
[4] excluding kid education programs
[5] excluding kid education programs
[6] excluding kid education programs
[7] excluding seat capacity that are for kid education programs
only
[8] excluding kid education program
[9] excluding kid education programs
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands,
except share data and per share data)
|
|
|
As
of
|
|
December 31
|
|
December 31
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
686,691
|
|
|
810,672
|
Time
deposits
|
|
432,536
|
|
|
416,724
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
216,700
|
|
|
97,374
|
Amounts due from a
related party
|
|
231
|
|
|
—
|
Prepaid expenses and
other current assets
|
|
156,360
|
|
|
126,088
|
Total current
assets
|
|
1,492,518
|
|
|
1,450,858
|
Time
deposits
|
|
505
|
|
|
58,667
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
14,582
|
|
|
1,176
|
Property and
equipment, net
|
|
519,691
|
|
|
437,337
|
Goodwill
|
|
3,365
|
|
|
3,365
|
Long-term
investments
|
|
101,920
|
|
|
41,760
|
Other non-current
assets
|
|
150,064
|
|
|
91,849
|
Total
assets
|
|
2,282,645
|
|
|
2,085,012
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
11,351
|
|
|
4,502
|
Amounts due to a
related party
|
|
—
|
|
|
79
|
Income taxes
payable
|
|
125,971
|
|
|
91,240
|
Deferred
revenue
|
|
302,163
|
|
|
266,061
|
Accrued expenses and
other current liabilities
|
|
184,646
|
|
|
117,867
|
Total current
liabilities
|
|
624,131
|
|
|
479,749
|
Other non-current
liabilities
|
|
4,329
|
|
|
7,043
|
Total
liabilities
|
|
628,460
|
|
|
486,792
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
—
|
|
|
—
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Class A ordinary
shares
|
|
327
|
|
|
302
|
Class B ordinary
shares
|
|
74
|
|
|
86
|
Treasury
stock(a)
|
|
(255,103)
|
|
|
(93,761)
|
Additional paid-in
capital
|
|
1,094,872
|
|
|
995,216
|
Accumulated other
comprehensive income
|
|
54,122
|
|
|
58,204
|
Retained
earnings
|
|
759,893
|
|
|
638,173
|
Total shareholders'
equity
|
|
1,654,185
|
|
|
1,598,220
|
Total liabilities
and shareholders' equity
|
|
2,282,645
|
|
|
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 December 31, 2017, the Company repurchased 1,755,666 Class A
ordinary shares from the open market with the consideration of
US$24.5 million (RMB161,341,732).
|
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
December 31
|
|
For the Year Ended December
31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net
revenues
|
616,999
|
|
464,038
|
|
1,973,806
|
|
1,579,604
|
Cost of
revenues(a)
|
(169,609)
|
|
(123,429)
|
|
(599,199)
|
|
(449,104)
|
Gross
profit
|
447,390
|
|
340,609
|
|
1,374,607
|
|
1,130,500
|
Selling and marketing
expenses(a)
|
(219,655)
|
|
(138,518)
|
|
(713,120)
|
|
(527,553)
|
General and
administrative expenses(a)
|
(122,451)
|
|
(84,595)
|
|
(392,296)
|
|
(307,519)
|
Research and
development expenses(a)
|
(32,427)
|
|
(21,530)
|
|
(100,032)
|
|
(65,594)
|
Operating
income
|
72,857
|
|
95,966
|
|
169,159
|
|
229,834
|
Interest
income
|
7,518
|
|
5,361
|
|
21,000
|
|
23,974
|
Other
income
|
8,722
|
|
5,061
|
|
26,702
|
|
15,960
|
Loss from fair value
change of foreign currency forward
|
-
|
|
-
|
|
-
|
|
(12,898)
|
Foreign exchange gain
(loss)
|
(1,822)
|
|
6,241
|
|
(6,284)
|
|
3,760
|
Income before
income taxes
|
87,275
|
|
112,629
|
|
210,577
|
|
260,630
|
Income tax
expense
|
(12,684)
|
|
(9,895)
|
|
(25,770)
|
|
(18,776)
|
Net
income
|
74,591
|
|
102,734
|
|
184,807
|
|
241,854
|
Net income
attributable to Class A and Class B ordinary
shareholders
|
74,591
|
|
102,734
|
|
184,807
|
|
241,854
|
|
|
|
|
|
|
|
|
Net income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
1.33
|
|
1.84
|
|
3.25
|
|
4.35
|
Diluted
|
1.28
|
|
1.74
|
|
3.10
|
|
4.10
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
Basic
|
56,276,273
|
|
55,979,972
|
|
56,849,332
|
|
55,540,670
|
Diluted
|
58,360,822
|
|
59,132,850
|
|
59,598,711
|
|
59,005,261
|
|
|
|
|
|
|
|
|
Net
income
|
74,591
|
|
102,734
|
|
184,807
|
|
241,854
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
(1,521)
|
|
11,181
|
|
(13,832)
|
|
22,972
|
Unrealized gain on
available for sale securities, net of RMB394 (RMB2,818 for the year
in 2017) income taxes
|
2,758
|
|
5,027
|
|
26,246
|
|
5,235
|
Less:
reclassification adjustment for gain on available for sale
securities realized in net income, net of RMB394 (RMB2,818 for the
year in 2017) income taxes
|
(2,758)
|
|
(235)
|
|
(16,496)
|
|
(235)
|
Comprehensive
income
|
73,070
|
|
118,707
|
|
180,725
|
|
269,826
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
December 31
|
|
For the Year
Ended
December 31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
474
|
|
1,843
|
|
1,285
|
|
4,124
|
Selling and marketing
expenses
|
2,240
|
|
2,458
|
|
4,863
|
|
5,496
|
General and
administrative expenses
|
19,770
|
|
16,167
|
|
60,491
|
|
51,154
|
Research and
development expenses
|
4,252
|
|
3,543
|
|
10,776
|
|
7,050
|
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 December 31
|
|
For the Year Ended
December 31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
169,609
|
|
123,429
|
|
599,199
|
|
449,104
|
Share-based
compensation expense in cost of revenues
|
474
|
|
1,843
|
|
1,285
|
|
4,124
|
Non-GAAP Cost of
revenues
|
169,135
|
|
121,586
|
|
597,914
|
|
444,980
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
219,655
|
|
138,518
|
|
713,120
|
|
527,553
|
Share-based
compensation expense in selling and marketing expenses
|
2,240
|
|
2,458
|
|
4,863
|
|
5,496
|
Non-GAAP Selling
and marketing expenses
|
217,415
|
|
136,060
|
|
708,257
|
|
522,057
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
122,451
|
|
84,595
|
|
392,296
|
|
307,519
|
Share-based
compensation expense in general and administrative
expenses
|
19,770
|
|
16,167
|
|
60,491
|
|
51,154
|
Non-GAAP General
and administrative expenses
|
102,681
|
|
68,428
|
|
331,805
|
|
256,365
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
32,427
|
|
21,530
|
|
100,032
|
|
65,594
|
Share-based
compensation expense in research and development
expenses
|
4,252
|
|
3,543
|
|
10,776
|
|
7,050
|
Non-GAAP Research
and development expenses
|
28,175
|
|
17,987
|
|
89,256
|
|
58,544
|
|
|
|
|
|
|
|
|
Operating
income
|
72,857
|
|
95,966
|
|
169,159
|
|
229,834
|
Share-based
compensation expenses
|
26,736
|
|
24,011
|
|
77,415
|
|
67,824
|
Non-GAAP Operating
income
|
99,593
|
|
119,977
|
|
246,574
|
|
297,658
|
|
|
|
|
|
|
|
|
Net
income
|
74,591
|
|
102,734
|
|
184,807
|
|
241,854
|
Share-based
compensation expenses
|
26,736
|
|
24,011
|
|
77,415
|
|
67,824
|
Loss on foreign
currency forward contract
|
—
|
|
—
|
|
—
|
|
12,898
|
Non-GAAP Net
income
|
101,327
|
|
126,745
|
|
262,222
|
|
322,576
|
Non-GAAP net
income attributable to Class A and Class B ordinary
shareholders
|
101,327
|
|
126,745
|
|
262,222
|
|
322,576
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
1.80
|
|
2.26
|
|
4.61
|
|
5.81
|
Diluted
|
1.74
|
|
2.14
|
|
4.40
|
|
5.47
|
Weighted average
number of ordinary shares outstanding used in calculating
Non-GAAP net income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
56,276,273
|
|
55,979,972
|
|
56,849,332
|
|
55,540,670
|
Diluted
|
58,360,822
|
|
59,132,850
|
|
59,598,711
|
|
59,005,261
|
|
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 fourth quarter and the year ended
December 31, 2017 and 2016.
|
View original
content:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-results-for-the-fourth-quarter-2017-and-fiscal-year-2017-300608293.html
SOURCE Tarena International, Inc.