Second Quarter Net Revenues up by 13.6%
Year-Over-Year
Second Quarter Student Enrollment in adult up by 21.6%
Year-Over-Year
Second Quarter Student Enrollment in kid education programs up by
512.8% Year-Over-Year
BEIJING, Aug. 20, 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 second quarter ended June
30, 2018.
Second Quarter 2018 Highlights
- Net revenues increased by 13.6% year-over-year to RMB517.8 million, from RMB455.8 million in the same period in 2017.
- Gross profit increased by 0.3% year-over-year to RMB313.4 million, from RMB312.3 million in the same period in 2017.
- Operating loss was RMB154.6
million, compared to an operating income of RMB36.0 million in the same period in 2017.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB128.1
million, compared to a non-GAAP operating income of
RMB55.2 million in the same period in
2017.
- Net loss was RMB166.1million, compared to a net income
of RMB37.9 million in the same period in 2017.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB139.6 million,
compared to a non-GAAP net income of RMB57.1 million in the
same period in 2017.
- Basic and diluted loss per American Depositary Share ("ADS")
was RMB2.94. Non-GAAP basic and
non-GAAP diluted loss per ADS, which excluded share-based
compensation expenses, was RMB2.47.
Each ADS represents one Class A ordinary share.
- The Company repurchased 1,298,299 Class A ordinary shares from
the open market for an aggregate consideration of US$10.1 million in the second quarter of
2018.
- An aggregate amount of cash dividends of US$6.8 million (US$0.12 per ADS) was paid in June 2018 to shareholders of record as of the
close of business on April 5,
2018.
- The Company made an aggregate payment of RMB70.7 million for equity investments during the
first half of 2018.
- Cash, cash equivalents and time deposits totaled RMB851.7 million as of June 30, 2018, compared to RMB1,119.7 million as of December 31, 2017. In addition, the Company had
RMB110.0 million in short term
investments as of June 30, 2018.
- Deferred revenue totaled RMB647.2
million as of June 30, 2018,
compared to RMB302.2 million as of
December 31, 2017, representing an
increase of 114.2%.
- Total student enrollments in adult education business, defined
as the total number of new students recruited and registered, in
the second quarter of 2018 increased by 21.6% year-over-year to
37,138.
- Total course enrollments in adult education business, defined
as the cumulative number of courses enrolled in by our students, in
the second quarter of 2018 increased by 4.9% year-over-year to
29,355.
- Total number of learning centers in adult education business
increased to 198 as of June 30, 2018,
from 171 as of June 30, 2017.
- Total student enrollments in kid education programs, defined as
the total number of students recruited and registered in our kid
education programs, in the second quarter of 2018 increased by
512.8% year-over-year to 10,570.
"We are delighted to see a recovery of retail channel student
enrollment in the adult education business, achieving 12% year over
year growth, and a positive trend in both enrollment efficiency and
students acquisition cost compared to the past three quarters.
These improvements benefited from our successful resources
integration, course upgrading, and optimization of the students
acquisition model. We believe this trend will continue in the
second half of the year. At the same time, the number of students
enrolled in joint major programs almost doubled compared to the
same period last year. Because our joint major programs typically
last between three and four years, tuition generated from such
programs is only partially recognized during this quarter, with the
remaining portions to be recognized in future quarters and years.
During the first half of 2018, student enrollment through
university channel contributed approximately 18% of total student
enrollment in adult education business, while the net revenue
contribution was only approximately 8%. Although relatively faster
increase in student enrollment through university channel has a
short-term negative impact on our net revenues, the long-term
partnership with universities will bring us rapid growth in student
enrollment, which will lay a solid foundation for our adult
education business in the future. We are confident in the long-term
growth in the professional education market." said Mr. Shaoyun Han, Tarena's Chairman and Chief
Executive Officer.
"In addition, we are pleased to see continuous rapid growth in
kid education business with student enrollment of 10,570 during the
second quarter, representing a 512.8% year over year growth and a
171.4% growth compared to the first quarter of this year. By the
end of the second quarter, our kid education business covered 39
cities with 99 learning centers. We believe that the recent change
in government regulation related to the kid education industry will
have a positive impact on quality-oriented courses including
children IT programming education. Our core competitiveness to
rapidly expand K12 education business significantly in a short time
are our strong IT courses development ability uniquely originated
from our adult education business, our dual-teacher teaching
ability, our exceptional skills to recruit IT teaching faculties
and to train them, as well as our operating management teams in 67
cities. With the increasing importance of information technology
and AI skills, programming courses are becoming increasingly
important. We expect our kid education business to maintain a
robust growth in the coming two to three years, and we believe that
Tarena will be the leader in the market." Mr. Han added.
Mr. Yuduo Yang, Tarena's Chief Financial Officer, said,
"Focusing on the enhancement of operating efficiency of our
traditional professional education business, we closed 16
non-performing centers, and reasonably controlled total operating
cost. Our seat capacity increased to 62,153 as of June 30, 2018, representing a year over year
increase of 9.0%. By optimizing seating layout, our seat
utilization rate was 73.2% in the second quarter of 2018, slightly
lower than the utilization rate of 73.6% during the same period
last year. However, we are closing the gap between the utilization
rates achieved in 2018 compared with those in 2017. Average selling
and advertising expenses spent per student for adult education
business also improved during the second quarter as compared with
the three previous quarters. Such improvement in enrollment and
seat utilization proves the effectiveness of our learning center
resource optimization strategy, which will provide continuous
positive impact in the coming quarters. Meanwhile, we will continue
to accelerate investments in kid education business and joint major
programs with universities, as well as developing new courses.
Considering that the kid education business and joint major
programs are in a fast growing phase, these two types of businesses
resulted in a loss during this quarter with its partially
recognized revenue due to longer services periods. However, we
observed a decreasing average acquisition cost per student and a
steady improvement of seat utilization, both of which are good
indicators of future profits. We believe in a gradual recovery of
our profitability with increased business maturity in both the kid
education business and joint major programs."
Second Quarter 2018 Results
Net Revenues
Net revenues increased by 13.6% to RMB517.8 million in the second quarter of 2018,
from RMB455.8 million in the same
period in 2017. RMB29.4 million of
net revenue was contributed by our kid education business in the
quarter. The increase in our adult education programs was primarily
due to increased course enrollments.
Total course enrollments in adult education business in the
second quarter of 2018 increased by 4.9% to 29,355, from 27,893 in
the same period in 2017, which was mainly driven by the expansion
in seat capacity and the popularity of our course offerings. The
total seat capacity in our adult learning centers increased by 9.0%
to 62,153 as of June 30, 2018 from
57,043 as of June 30, 2017 to cater
to the increased demand for our courses.
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 79%/21% and
86%/14% in the second quarter of 2018 and 2017, respectively.
Cost of Revenues
Cost of revenues increased by 42.4% to RMB204.4 million in the second quarter of 2018,
from RMB143.5 million in the same
period in 2017. Our kid education program contributed RMB41.4 million of cost of revenues in the second
quarter of 2018. The increase in our adult education programs 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 and other
supplier cost for the growing number of learning centers.
Gross Profit and Gross Margin
Gross profit increased by 0.3% to RMB313.4 million in the second quarter of 2018,
from RMB312.3 million in the same
period in 2017. Gross margin was 60.5% in the second quarter of
2018, compared with 68.5% in the same period in 2017.The decrease
in gross margin was mainly due to an increase in personnel cost and
welfare expenses for teaching and advisory staff, as well as the
rapid expansion of our learning centers in kid education programs
and joint major programs.
Operating Expenses
Total operating expenses increased by 69.4% to RMB468.0 million in the second quarter of 2018,
from RMB276.3 million in the same
period in 2017. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 71.8% to
RMB442.2 million in the second
quarter of 2018, from RMB257.4
million in the same period in 2017. Total share-based
compensation expenses allocated to the related operating expenses
increased by 36.1% to RMB25.8 million
in the second quarter of 2018, from RMB18.9
million in the same period in 2017.
Selling and marketing expenses increased by 66.4% to
RMB270.2 million in the second
quarter of 2018, from RMB162.4
million in the same period in 2017. The increase was mainly
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 69.0% to
RMB157.6 million in the second
quarter of 2018, from RMB93.2 million
in the same period in 2017. 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
81.5% to RMB140.9 million, from
RMB77.6 million in the same period in
2017.
Research and development expenses increased by 94.4% to
RMB40.3 million in the second quarter
of 2018, from RMB20.7 million in the
same period in 2017. The increase was mainly due to an increase in
personnel cost and welfare expenses of our instructors allocated to
their 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 Loss
Operating loss was RMB154.6
million for the second quarter of 2018, compared to
operating income of RMB36.0 million
in the same period in 2017. Non-GAAP operating loss, which excluded
share-based compensation expenses, was RMB128.1 million, compared to Non-GAAP operating
income of RMB55.2 million in the same
period in 2017. Kid education program contributed RMB77.9 million of operating loss in the second
quarter of 2018.
Interest Income
Interest income was RMB5.3 million
in the second quarter of 2018, compared to RMB4.9 million in the same period in 2017.
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.
Foreign Exchange Gain (Loss)
Foreign exchange gain was RMB5.2
million in the second quarter of 2018, compared to
RMB1.8 million foreign exchange loss
in the same period in 2017. The gain was mainly attributable to the
depreciation of China's RMB against U.S. Dollar.
Income Tax Expense
The Company recorded an income tax expense of RMB25.6 million in the second quarter of 2018,
compared to RMB5.8 million income tax
expense in the same period in 2017. There was income tax expense of
RMB24.7 million arisen from payment
of dividend made to offshore parent company during this quarter.
Excluding the income tax expense from payment of dividend, there
was tax benefit from January to June of this year, which was due to
the Company's recognized deferred tax assets for the loss incurred
in the first quarter.
Net Loss
As a result of the foregoing, net loss was RMB166.1 million in the second quarter of 2018,
compared to net income of RMB37.9
million in the same period in 2017. Non-GAAP net loss, which
excluded share-based compensation expenses, was RMB139.6 million, compared to a non-GAAP net
income of RMB57.1 million in the same
period in 2017.
Basic and Diluted Loss
per ADS
Basic and diluted loss per ADS were RMB2.94 in the second quarter of 2018. Non-GAAP
basic and non-GAAP diluted loss per ADS, which excluded share-based
compensation expenses, were RMB2.47.
Cash Flow
Net cash inflow from operating activities for the second quarter
of 2018 was RMB80.5 million. Capital
expenditures for the second quarter of 2018 were RMB62.2 million. The repurchasing of 1,298,299
Class A ordinary shares from the open market for an aggregate
consideration of US$10.1 million, an
aggregate payment of cash dividends of US$6.8 million (US$0.12 per ADS) in June
2018 to shareholders of record as of the close of business
on April 5, 2018, as well as an
aggregate payment of RMB70.7 million
for equity investments during the first half of 2018 resulted in
the decrease of ending balance of cash and cash equivalent by the
end of June 30, 2018.
Kid education business contributed cash receipt of RMB127.4 million during the second quarter.
Shares Issued and Outstanding
As of June 30, 2018, the Company
had 48,072,159 Class A and 7,206,059 Class B ordinary shares
outstanding. Each ADS represents one Class A ordinary share.
Business Outlook
Based on the Company's current estimates, total net revenues for
the third quarter of 2018 are expected to be between RMB675.0 million and RMB705.0 million, representing an increase of
18.8% to 24.1% 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
Company management will hold an earnings conference call and
live webcast to discuss the Company's results at 9:00PM U.S. Eastern Time on Monday, August 20, 2018 (9:00AM Beijing Time on Tuesday, August 21, 2018).
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: +886 255723895 or 0
809 091 568
Canada: +1 866 386 1016
United Kingdom: 0 808 234 6646
International: +65 6713 5090
Conference ID: 9890219
A replay of the call will be available approximately 2 hours
after the conclusion of the conference call through August 28, 2018. The dial-in details for the
replay are:
United States: +1 855 452
5696
Hong Kong: 800 963 117
China: 800 870 0206
Taiwan: 00 801232482
Canada: +1 855 759 0869
United Kingdom: 0 808 234 0072
International: +61 2 8199 0299
Conference ID:
9890219
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 IT and non-IT subjects. Tarena also offers 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
577,000 students, cooperated with approximately 800 universities
and colleges and placed students with approximately 148,000
corporate employers in a variety of industries.
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:
Lei Song
Investor Relations Contact
Tarena International, Inc.
Tel: +8610 56219451
Email: ir@tedu.cn
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands,
except share data and per share data)
|
|
|
As
of
|
|
June
30
|
|
December
31
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
646,004
|
|
686,691
|
Time
deposits
|
205,195
|
|
432,536
|
Short-term investments
|
110,000
|
|
-
|
Accounts receivable,
net of allowance for doubtful accounts
|
228,602
|
|
216,700
|
Amounts
due from a related party
|
253
|
|
231
|
Inventory,
net
|
4,891
|
|
-
|
Prepaid expenses and
other current assets
|
192,268
|
|
156,360
|
Total current
assets
|
1,387,213
|
|
1,492,518
|
Time
deposits
|
511
|
|
505
|
Accounts receivable,
net of allowance for doubtful accounts
|
4,832
|
|
14,582
|
Property and equipment, net
|
581,223
|
|
519,691
|
Intangible assets,
net
|
6,140
|
|
-
|
Goodwill
|
39,162
|
|
3,365
|
Long-term investments
|
118,717
|
|
101,920
|
Other non-current
assets(a)
|
161,521
|
|
150,064
|
Total
assets
|
2,299,319
|
|
2,282,645
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
18,416
|
|
11,351
|
Income taxes
payable
|
114,119
|
|
125,971
|
Deferred
revenue
|
647,161
|
|
302,163
|
Accrued expenses and
other current liabilities
|
248,423
|
|
184,646
|
Total current
liabilities
|
1,028,119
|
|
624,131
|
Other non-current
liabilities
|
3,700
|
|
4,329
|
Total
liabilities
|
1,031,819
|
|
628,460
|
|
|
|
|
Commitments and
contingencies
|
—
|
|
—
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A ordinary
shares
|
329
|
|
327
|
Class B ordinary
shares
|
74
|
|
74
|
Treasury
stock(b)
|
(320,293)
|
|
(255,103)
|
Additional paid-in
capital
|
1,158,030
|
|
1,094,872
|
Accumulated other
comprehensive income
|
58,321
|
|
54,122
|
Retained
earnings
|
370,770
|
|
759,893
|
Total equity
attributable to Tarena International, Inc.
|
1,267,231
|
|
1,654,185
|
Non-controlling
interest
|
269
|
|
—
|
Total liabilities
and shareholders' equity
|
2,299,319
|
|
2,282,645
|
|
Note:
(a) The intangible
assets and goodwill arising from the acquisition of RTEC are
included in the other non-current assets for this report due to
that the evaluation of purchase price allocation is still under
review.
|
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 June 30
|
|
For the Six Months
Ended June 30
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net
revenues
|
517,813
|
|
455,833
|
|
924,134
|
|
788,581
|
Cost of
revenues(a)
|
(204,434)
|
|
(143,530)
|
|
(399,603)
|
|
(271,344)
|
Gross
profit
|
313,379
|
|
312,303
|
|
524,531
|
|
517,237
|
Selling and marketing
expenses(a)
|
(270,158)
|
|
(162,396)
|
|
(498,021)
|
|
(303,463)
|
General and
administrative expenses(a)
|
(157,575)
|
|
(93,240)
|
|
(289,412)
|
|
(172,998)
|
Research and
development expenses(a)
|
(40,262)
|
|
(20,707)
|
|
(79,850)
|
|
(38,935)
|
Operating (loss)
income
|
(154,616)
|
|
35,960
|
|
(342,752)
|
|
1,841
|
Interest
income
|
5,269
|
|
4,907
|
|
14,032
|
|
8,381
|
Other
income
|
3,607
|
|
4,614
|
|
5,431
|
|
11,685
|
Foreign exchange
loss
|
5,190
|
|
(1,785)
|
|
789
|
|
(2,332)
|
(Loss) income
before income taxes
|
(140,550)
|
|
43,696
|
|
(322,500)
|
|
19,575
|
Income tax
expense
|
(25,597)
|
|
(5,812)
|
|
(24,099)
|
|
(6,324)
|
Net (loss)
income
|
(166,147)
|
|
37,884
|
|
(346,599)
|
|
13,251
|
Less: Net loss
attributable to non-controlling interests
|
(356)
|
|
-
|
|
(431)
|
|
-
|
Net income
attributable to Class A and Class B ordinary
shareholders
|
(165,791)
|
|
37,884
|
|
(346,168)
|
|
13,251
|
|
|
|
|
|
|
|
|
Net income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
(2.94)
|
|
0.66
|
|
(6.15)
|
|
0.23
|
Diluted
|
(2.94)
|
|
0.63
|
|
(6.15)
|
|
0.22
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
Basic
|
56,296,986
|
|
57,355,721
|
|
56,277,694
|
|
56,843,932
|
Diluted
|
56,296,986
|
|
59,849,094
|
|
56,277,694
|
|
59,705,190
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(166,147)
|
|
37,884
|
|
(346,599)
|
|
13,251
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
7,062
|
|
(4,557)
|
|
4,199
|
|
(6,396)
|
Unrealized gain on
available for sale securities, net of nil (nil for the six months
in 2018) income taxes
|
-
|
|
3,629
|
|
-
|
|
18,359
|
Less:
reclassification adjustment for gain on available for sale
securities realized in net income, net of nil (nil for the six
months in 2018 income taxes
|
-
|
|
(3,629)
|
|
-
|
|
(8,609)
|
Comprehensive
income
|
(159,085)
|
|
33,327
|
|
(342,400)
|
|
16,605
|
|
|
|
|
|
|
|
|
Notes:
|
(a)
Includes share-based compensation expenses as follows:
|
|
|
For the Three Months
Ended June 30
|
|
For the Six months
Ended June 30
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Cost of
revenues
|
763
|
|
289
|
|
1,529
|
|
466
|
Selling and marketing
expenses
|
4,037
|
|
1,118
|
|
7,110
|
|
1,376
|
General and
administrative expenses
|
16,714
|
|
15,634
|
|
41,854
|
|
24,545
|
Research and
development expenses
|
5,043
|
|
2,192
|
|
10,790
|
|
3,956
|
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 June 30
|
|
For the Six Months
Ended June 30
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
204,434
|
|
143,530
|
|
399,603
|
|
271,344
|
Share-based
compensation expense in cost of revenues
|
763
|
|
289
|
|
1,529
|
|
466
|
Non-GAAP Cost of
revenues
|
203,671
|
|
143,241
|
|
398,074
|
|
270,878
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
270,158
|
|
162,396
|
|
498,021
|
|
303,463
|
Share-based
compensation expense in selling and marketing expenses
|
4,037
|
|
1,118
|
|
7,110
|
|
1,376
|
Non-GAAP Selling
and marketing expenses
|
266,121
|
|
161,278
|
|
490,911
|
|
302,087
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
157,575
|
|
93,240
|
|
289,412
|
|
172,998
|
Share-based
compensation expense in general and administrative
expenses
|
16,714
|
|
15,634
|
|
41,854
|
|
24,545
|
Non-GAAP General
and administrative expenses
|
140,861
|
|
77,606
|
|
247,558
|
|
148,453
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
40,262
|
|
20,707
|
|
79,850
|
|
38,935
|
Share-based
compensation expense in research and development
expenses
|
5,043
|
|
2,192
|
|
10,790
|
|
3,956
|
Non-GAAP Research
and development expenses
|
35,219
|
|
18,515
|
|
69,060
|
|
34,979
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(154,616)
|
|
35,960
|
|
(342,752)
|
|
1,841
|
Share-based
compensation expenses
|
26,557
|
|
19,233
|
|
61,283
|
|
30,343
|
Non-GAAP Operating
(loss) income
|
(128,059)
|
|
55,193
|
|
(281,469)
|
|
32,184
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(166,147)
|
|
37,884
|
|
(346,599)
|
|
13,251
|
Share-based
compensation expenses
|
26,557
|
|
19,233
|
|
61,283
|
|
30,343
|
Non-GAAP Net
(loss) income
|
(139,590)
|
|
57,117
|
|
(285,316)
|
|
43,594
|
Less: Net loss
attributable to non-controlling interests
|
(356)
|
|
-
|
|
(431)
|
|
-
|
Non-GAAP net loss
attributable to Class A and Class B ordinary
shareholders
|
(139,234)
|
|
57,117
|
|
(284,885)
|
|
43,594
|
Non-GAAP net
income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
(2.47)
|
|
1.00
|
|
(5.06)
|
|
0.77
|
Diluted
|
(2.47)
|
|
0.95
|
|
(5.06)
|
|
0.73
|
Weighted average
number of ordinary shares outstanding used in calculating
Non-GAAP net income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
56,296,986
|
|
57,355,721
|
|
56,277,694
|
|
56,843,932
|
Diluted
|
56,296,986
|
|
59,849,094
|
|
56,277,694
|
|
59,705,190
|
|
|
|
|
|
|
|
|
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 second quarter ended June 30,
2017 and 2016. There was no tax impact of share-based compensation
expenses and loss on foreign currency forward contract for the six
months ended June 30, 2017 and 2016.
|
View original
content:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-second-quarter-2018-results-300699670.html
SOURCE Tarena International, Inc.