BEIJING, March 11, 2019 /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 full
year ended December 31, 2018.
Fourth Quarter 2018 Highlights
- Net revenues decreased by 0.3% year-over-year to RMB615.3 million, from RMB617.0 million in the same period in 2017.
- Gross profit decreased by 26.1% year-over-year to RMB330.6 million, from RMB447.4 million in the same period in 2017.
- Operating loss was RMB195.7
million, compared to an operating income
of RMB72.9 million in the same period in 2017.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB166.2
million, compared to a non-GAAP operating income of
RMB99.6 million in the same
period in 2017.
- Net loss was RMB164.7million, compared to a
net income of RMB74.6 million in the same period in
2017.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB135.2million,
compared to a non-GAAP net income of RMB101.3 million in
the same period in 2017.
- Loss per American Depositary Share ("ADS") was RMB3.07. Non-GAAP loss per ADS, which
excluded share-based compensation expenses, was RMB2.52. Each ADS represents one Class A ordinary
share.
- The Company repurchased 591,145 Class A ordinary shares from
the open market for an aggregate consideration of US$4.3 million in the fourth quarter of
2018.
- Cash, cash equivalents and time deposits totaled RMB655.2 million as of December 31, 2018, compared to RMB1,119.7 million as of December 31, 2017. During the quarter,
RMB29.4 million was used for
repurchasing of Class A ordinary shares. In addition, the Company
had RMB14.7 million in restricted
cash as of December 31, 2018.
- Deferred revenue totaled RMB664.1
million as of December 31,
2018, compared to RMB302.2
million as of December 31,
2017, representing an increase of 119.9%. Kid education
business has contributed RMB312.7
million to the increase in deferred revenue.
- Total student enrollments in adult education business, defined
as the total number of new students recruited and registered, in
the fourth quarter of 2018 increased by 6.3% year-over-year to
36,394.
- Total course enrollments in adult education business, defined
as the cumulative number of courses enrolled in by our students, in
the fourth quarter of 2018 decreased by 9.1%
year-over-year to 31,955.
- Total number of learning centers in adult education business
was 184 as of December 31, 2018
and December 31, 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 fourth quarter of 2018 increased by
365.7% year-over-year to 15,233.
Fiscal Year 2018 Highlights
- Net revenues increased by 13.5% year-over-year to RMB2,239.3 million, from RMB1,973.8 million in the same period in
2017.
- Gross profit decreased by 4% year-over-year to RMB1,319.8 million, from RMB1,374.6 million in the same period in
2017.
- Operating loss was RMB599.1
million, compared to an operating income of RMB169.2
million in the same period in 2017.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB474.9
million, compared to a non-GAAP operating income of
RMB246.6 million in the same
period in 2017.
- Net loss was RMB597.8 million, compared to a
net income of RMB184.8 million in the same period in
2017.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB473.5 million,
compared to a non-GAAP net income of RMB262.2 million in
the same period in 2017.
- Loss per American Depositary Share ("ADS") was RMB10.85. Non-GAAP loss per ADS, which excluded
share-based compensation expenses, was RMB8.58. Each ADS represents one Class A ordinary
share.
- The Company repurchased 3,768,495 Class A ordinary shares from
the open market for an aggregate consideration of US$30.3 million in 2018.
- Total student enrollments in adult education business, defined
as the total number of new students recruited and registered,
during fiscal year 2018 increased by 14.7% year-over-year to
147,692.
- Total course enrollments in adult education business, defined
as the cumulative number of courses enrolled in by our students, in
fiscal year 2018 increased by 3.3% year-over-year
to 124,073.
- Total student enrollments in kid education programs, defined as
the total number of students recruited and registered in our kid
education programs, in fiscal year 2018 increased by 363.1%
year-over-year to 44,368.
"We are pleased with the rapid growth from our kid education
business during 2018. More than 100 learnings centers were added to
our kid education business, including 21 from acquisition in early
2018. By the end of 2018, we have expanded to a total of 148 kid
learnings centers, covering 53 cities. In this quarter, Tarena's
kid education business delivered outstanding results in student
enrollment, centers layout, course development, and revenue
contribution. The student enrollment of kid education business
continued its rapid growth of over 360% year over year increase to
reach 15,233 students. Furthermore, kid education net revenues
reached at RMB67.2 million this
quarter, representing 11% of our total net revenues." Said Mr.
Shaoyun Han, Tarena's Chairman and
Chief Executive Officer.
"I am also very pleased to see the enrollment of adult education
business during this quarter was 36,394, achieving a year over year
growth of 6.3%. The State Council recently issued the
Implementation Plan for the National Vocational Education Reform,
reflecting government's emphasize on the teaching quality in
vocational training area and the determination to promote
cooperation between schools and enterprises. In 2018, we
successfully explored a Featured Program business model targeted at
university students through partnerships with universities. Such a
new enrollment model will become one of important drivers of our
adult business growth in the future. By closing about 40
under-performing adult centers in 2018, we effectively controlled
the operating costs. Looking forward into 2019, we expect our adult
business to achieve significant improvement in profitability along
with a steady student enrollment, and kid business to continue its
momentum to grow robustly and make greater contribution to the
company." Mr. Han concluded.
Mr. Yuduo Yang, Tarena's Chief Financial Officer, said, "During
this quarter, we continued to emphasize on resources distribution,
as the Company closed or merged a total of 12 adult learning
centers and opened only one center in the city of Baoding. By the
end of this quarter, company operated 184 adult learning centers in
70 cities. By optimizing seating layout, our seat utilization rate
improved to 71.6%, as compared to the utilization rate of 69.6% in
the same period last year. In 2018, our bottom line was negatively
impacted by a larger number of students enrolled through university
partnership where revenue is recognized over longer period and by
the fact that most of the kid education learning centers are still
in the ramp up period. With great market potential and company's
unique strength in IT training area, we believe that our kid
education business and our university partnerships will provide a
strong foundation for the Company to grow in the coming years."
Fourth Quarter 2018 Results
Net Revenues
Net revenues decreased by 0.3% to RMB615.3 million in the fourth quarter of 2018,
from RMB617.0 million in the same
period in 2017. RMB67.2 million of
net revenue was contributed by our kid education business in the
quarter.
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 74%/26% and
84%/16% in the fourth quarter of 2018 and 2017,
respectively.
Cost of Revenues
Cost of revenues increased by 67.9% to RMB284.8 million in the fourth quarter of 2018,
from RMB169.6 million in the same
period in 2017. 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
the increasing enrollment through university channel, as well as
depreciation expenses and other supplier cost for the growing
number of learning centers.
Gross Profit and Gross Margin
Gross profit decreased by 26.1% to RMB330.6 million in the fourth quarter of 2018,
from RMB447.4 million in the same
period in 2017. Gross margin was 53.7% in the fourth quarter of
2018, compared with 72.5% in the same period in 2017. The decrease
in gross margin was mainly due to the rapid expansion of our
learning centers in kid education programs and university
programs.
Operating Expenses
Total operating expenses increased by 40.5% to RMB526.3 million in the fourth quarter of 2018,
from RMB374.5 million in the same
period in 2017. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 42.8% to
RMB497.3 million in the fourth
quarter of 2018, from RMB348.3
million in the same period in 2017. Total share-based
compensation expenses allocated to the related operating expenses
increased by 10.5% to RMB29.0 million
in the fourth quarter of 2018, from RMB26.3
million in the same period in 2017.
Selling and marketing expenses increased by 32.7% to
RMB291.5 million in the fourth
quarter of 2018, from RMB219.7
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 54.9% to
RMB189.7 million in the fourth
quarter of 2018, from RMB122.5
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, as well as an increase in bad debt
allowance which was based on the recent assessment of
collectability.
Research and development expenses increased by 39.0% to
RMB45.1 million in the fourth quarter
of 2018, from RMB32.4 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 RMB195.7
million for the fourth quarter of 2018, compared to
operating income of RMB72.9 million
in the same period in 2017. Non-GAAP operating loss, which excluded
share-based compensation expenses, was RMB166.2 million, compared to non-GAAP operating
income of RMB99.6 million in the same
period in 2017.
Interest Income
Interest income was RMB4.1 million
in the fourth quarter of 2018, compared to RMB7.5 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.
Other Income
Other income was RMB2.3 million in
the fourth quarter of 2018, compared to RMB8.7 million income in the same period in 2017.
The income was mostly from bank product investment gain.
Foreign Exchange Gain (Loss)
Foreign exchange loss was RMB0.1
million in the fourth quarter of 2018, compared to
RMB1.8million foreign exchange loss
in the same period in 2017.
Income Tax Expense
The Company recorded an income tax benefit of RMB24.6 million in the fourth quarter of 2018,
compared to RMB12.7million income tax
expense in the same period in 2017. The tax benefit was due to
that the Company recognized deferred tax assets for the losses
incurred in this quarter.
Net Loss
As a result of the foregoing, net loss was RMB164.7 million in the fourth quarter of 2018,
compared to net income of RMB74.6
million in the same period in 2017. Non-GAAP net loss, which
excluded share-based compensation expenses, was RMB135.2 million, compared to a non-GAAP net
income of RMB101.3 million in the
same period in 2017.
Basic and Diluted Loss per ADS
Loss per ADS were RMB3.07 in the
fourth quarter of 2018. Non-GAAP loss per ADS, which excluded
share-based compensation expenses, were RMB2.52.
Cash Flow
Net cash outflow from operating activities for the fourth
quarter of 2018 was RMB13.1 million.
Capital expenditures for the fourth quarter of 2018 were
RMB69.3 million. There was repurchase
of 3,768,495 Class A ordinary shares from the open market for an
aggregate consideration of US$30.3
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 RMB72.2 million
for equity investments during 2018.
Shares Issued and Outstanding
As of December 31, 2018, the
Company had 45,873,037 Class A and 7,206,059 Class B ordinary
shares outstanding. Each ADS represents one Class A ordinary
share.
Fiscal Year 2018 Results
Net Revenues
Net revenues increased by 13.5% to RMB2,239.3 million in 2018, from RMB1,973.8 million in 2017. RMB175.6 million of net revenue was contributed
by our kid education business in 2018. The increase in our adult
education programs was primarily due to increased course
enrollments and an increase in the standard tuition fees.
Total course enrollments in adult education business in 2018
increased by 3.3% to 124,073, from 120,162 in 2017, which was
mainly driven by the popularity of our course offerings.
Cost of Revenues
Cost of revenues increased by 53.5% to RMB919.5 million in 2018, from RMB599.2 million in 2017. 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, depreciation expenses and other supplier cost for the
growing number of learning centers.
Gross Profit and Gross Margin
Gross profit decreased by 4% to RMB1,319.8 million in 2018, from RMB1,374.6million in 2017. Gross margin was 58.9%
in 2018, compared with 69.6% 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 59.2% to RMB1,918.9 million in 2018, from RMB1,205.4 million in 2017. Total non-GAAP
operating expenses, which excluded share-based compensation
expenses, increased by 59.1% to RMB1,796.9
million in 2018, from RMB1,129.3
million in 2017. Total share-based compensation expenses
allocated to the related operating expenses increased by 60.2% to
RMB122.0 million in 2018, from
RMB76.1 million in 2017.
Selling and marketing expenses increased by 55.5% to
RMB1,108.6 million in 2018, from
RMB713.1 million 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 63.9% to
RMB643.1 million in 2018, from
RMB392.3 million 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 68.3% to
RMB558.5 million, from RMB331.8 million in 2017.
Research and development expenses increased by 67.2% to
RMB167.3 million in 2018, from
RMB100.0 million 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 RMB599.1
million in 2018, compared to operating income of
RMB169.2 million in 2017. Non-GAAP
operating loss, which excluded share-based compensation expenses,
was RMB474.9 million, compared to
non-GAAP operating income of RMB246.6
million in 2017.
Interest Income
Interest income was RMB24.5
million in 2018, compared to RMB21.0
million 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.
Other (Loss)/ Income
Other loss was RMB1.1 million in
2018, compared to RMB26.7 million
other income in 2017. There was an investment loss of RMB10.8 million recognized in the year of 2018
related to its available for sale investment and equity method
long-term investment's performance.
Foreign Exchange Gain (Loss)
Foreign exchange gain was RMB5.0
million in 2018, compared to RMB6.3
million foreign exchange loss 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 RMB27.0 million in 2018, compared to RMB25.8 million income tax expense in 2017. There
was income tax expense of RMB24.7
million arisen from payment of dividend made to offshore
parent company in the second quarter of 2018, excluding which, the
decrease was mainly due to a decrease in profits.
Net Loss
As a result of the foregoing, net loss was RMB597.8 million in 2018, compared to net income
of RMB184.8 million in 2017. Non-GAAP
net loss, which excluded share-based compensation expenses, was
RMB473.5 million, compared to a
non-GAAP net income of RMB262.2
million in 2017.
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS were RMB10.85 in 2018. Non-GAAP basic and non-GAAP
diluted loss per ADS, which excluded share-based compensation
expenses, were RMB8.58.
Cash Flow
Net cash inflow from operating activities for 2018 was
RMB114.6 million. Capital
expenditures for 2018 were RMB268.5
million.
Business Outlook
Based on the Company's current estimates, total net revenues for
the first quarter of 2019 are expected to be between RMB395.0 million and RMB415.0 million, representing a decrease of 2.9%
to an increase of 2.1% on a year-over-year basis.
The Company also expects its total net revenues for the full
year of 2019 to be between RMB2,430.0
million and RMB2,580.0
million, representing an increase of 8.5% to 15.2% 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, March 11, 2019 (9:00AM Beijing Time on Tuesday, March 12, 2019).
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: +44 203 621
4779
International: +65 6713 5090
Conference ID: 6129907
Please dial in 10 minutes before the call is scheduled to begin
and provide the conference ID to join the call.
A replay of the call will be available approximately 2 hours
after the conclusion of the conference call through March 19, 2019. 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: 6129907
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 fourth 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
620,000 students, cooperated with approximately 800 universities
and colleges and placed students with approximately accumulated
160,000 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
|
|
December
31
|
|
December
31
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
496,103
|
|
686,691
|
Time
deposits
|
158,585
|
|
432,536
|
Restricted
cash
|
14,700
|
|
-
|
Short-term
investments
|
-
|
|
-
|
Accounts receivable,
net of allowance for doubtful accounts
|
143,932
|
|
216,700
|
Amounts due from a
related party
|
-
|
|
231
|
Inventory,
net
|
1,774
|
|
-
|
Prepaid expenses and
other current assets
|
195,098
|
|
156,360
|
Total current
assets
|
1,010,192
|
|
1,492,518
|
Time
deposits
|
517
|
|
505
|
Accounts receivable,
net of allowance for doubtful accounts
|
5,610
|
|
14,582
|
Property and
equipment, net
|
647,225
|
|
519,691
|
Intangible assets,
net
|
1,907
|
|
-
|
Goodwill
|
63,247
|
|
-
|
Long-term
investments
|
94,826
|
|
101,920
|
Other non-current
assets
|
207,769
|
|
153,429
|
Total
assets
|
2,031,293
|
|
2,282,645
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term bank
loans
|
13,726
|
|
-
|
Accounts
payable
|
18,541
|
|
11,351
|
Amounts due to related
parties
|
413
|
|
-
|
Income taxes
payable
|
138,605
|
|
125,971
|
Deferred
revenue
|
664,078
|
|
302,163
|
Accrued expenses and
other current liabilities
|
254,330
|
|
184,646
|
Total current
liabilities
|
1,089,693
|
|
624,131
|
Other non-current
liabilities
|
5,606
|
|
4,329
|
Total
liabilities
|
1,095,299
|
|
628,460
|
|
|
|
|
Commitments and
contingencies
|
—
|
|
—
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A ordinary
shares
|
331
|
|
327
|
Class B ordinary
shares
|
74
|
|
74
|
Treasury
stock
|
(457,169)
|
|
(255,103)
|
Additional paid-in
capital
|
1,222,072
|
|
1,094,872
|
Accumulated other
comprehensive income
|
50,477
|
|
54,122
|
Retained
earnings
|
121,161
|
|
759,893
|
Total equity
attributable to Tarena International, Inc.
|
936,946
|
|
1,654,185
|
Non-controlling
interest
|
(952)
|
|
—
|
Total liabilities
and shareholders' equity
|
2,031,293
|
|
2,282,645
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
(in thousands,
except share data and per share data)
|
|
|
For the Three Months Ended
December 31
|
|
For the Year Ended
December 31
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Net
revenues
|
615,315
|
|
616,999
|
|
2,239,328
|
|
1,973,806
|
Cost of
revenues(a)
|
(284,753)
|
|
(169,609)
|
|
(919,530)
|
|
(599,199)
|
Gross
profit
|
330,562
|
|
447,390
|
|
1,319,798
|
|
1,374,607
|
Selling and marketing
expenses(a)
|
(291,517)
|
|
(219,655)
|
|
(1,108,565)
|
|
(713,120)
|
General and
administrative expenses(a)
|
(189,703)
|
|
(122,451)
|
|
(643,119)
|
|
(392,296)
|
Research and
development expenses(a)
|
(45,067)
|
|
(32,427)
|
|
(167,254)
|
|
(100,032)
|
Operating (loss)
income
|
(195,725)
|
|
72,857
|
|
(599,140)
|
|
169,159
|
Interest
income
|
4,130
|
|
7,518
|
|
24,516
|
|
21,000
|
Other income
(loss)
|
2,337
|
|
8,722
|
|
(1,144)
|
|
26,702
|
Foreign exchange
(loss) gain
|
(68)
|
|
(1,822)
|
|
4,951
|
|
(6,284)
|
(Loss) income
before income taxes
|
(189,326)
|
|
87,275
|
|
(570,817)
|
|
210,577
|
Income tax benefit
(expense)
|
24,640
|
|
(12,684)
|
|
(26,962)
|
|
(25,770)
|
Net (loss)
income
|
(164,686)
|
|
74,591
|
|
(597,779)
|
|
184,807
|
Less: Net loss
attributable to non-controlling interests
|
(1,258)
|
|
-
|
|
(2,002)
|
|
-
|
Net (loss) income
attributable to Class A and Class B ordinary
shareholders
|
(163,428)
|
|
74,591
|
|
(595,777)
|
|
184,807
|
|
|
|
|
|
|
|
|
Net (loss) income
per Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
-3.07
|
|
1.33
|
|
-10.85
|
|
3.25
|
Diluted
|
-3.07
|
|
1.28
|
|
-10.85
|
|
3.10
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
Basic
|
53,209,594
|
|
56,276,273
|
|
54,929,508
|
|
56,849,332
|
Diluted
|
53,209,594
|
|
58,360,822
|
|
54,929,508
|
|
59,598,711
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(164,686)
|
|
74,591
|
|
(597,779)
|
|
184,807
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
243
|
|
(1,521)
|
|
11,105
|
|
(13,832)
|
Unrealized gain on
available for sale securities, net of RMB986(RMB986 for the twelve
months in 2018) income taxes
|
1,267
|
|
2,758
|
|
(8,354)
|
|
26,246
|
Less:
reclassification adjustment for gain on available for sale
securities realized in net income, net of RMB986(RMB986 for the
twelve months in 2018) income taxes
|
(2,677)
|
|
(2,758)
|
|
(6,396)
|
|
(16,496)
|
Comprehensive
(loss) income
|
(165,853)
|
|
73,070
|
|
(601,424)
|
|
180,725
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes share-based compensation expenses as follows:
|
|
|
For the Three Months Ended
December 31
|
|
For the Year Ended
December 31
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Cost of
revenues
|
513
|
|
474
|
|
2,265
|
|
1,285
|
Selling and marketing
expenses
|
827
|
|
2,240
|
|
8,866
|
|
4,863
|
General and
administrative expenses
|
18,085
|
|
19,770
|
|
84,645
|
|
60,491
|
Research and
development expenses
|
10,103
|
|
4,252
|
|
28,477
|
|
10,776
|
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
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
284,753
|
|
169,609
|
|
919,530
|
|
599,199
|
Share-based
compensation expense in cost of revenues
|
513
|
|
474
|
|
2,265
|
|
1,285
|
Non-GAAP Cost of
revenues
|
284,240
|
|
169,135
|
|
917,265
|
|
597,914
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
291,517
|
|
219,655
|
|
1,108,565
|
|
713,120
|
Share-based
compensation expense in selling and marketing expenses
|
827
|
|
2,240
|
|
8,866
|
|
4,863
|
Non-GAAP Selling
and marketing expenses
|
290,690
|
|
217,415
|
|
1,099,699
|
|
708,257
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
189,703
|
|
122,451
|
|
643,119
|
|
392,296
|
Share-based
compensation expense in general and administrative
expenses
|
18,085
|
|
19,770
|
|
84,645
|
|
60,491
|
Non-GAAP General
and administrative expenses
|
171,618
|
|
102,681
|
|
558,474
|
|
331,805
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
45,067
|
|
32,427
|
|
167,254
|
|
100,032
|
Share-based
compensation expense in research and development
expenses
|
10,103
|
|
4,252
|
|
28,477
|
|
10,776
|
Non-GAAP Research
and development expenses
|
34,964
|
|
28,175
|
|
138,777
|
|
89,256
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(195,725)
|
|
72,857
|
|
(599,140)
|
|
169,159
|
Share-based
compensation expenses
|
29,528
|
|
26,736
|
|
124,253
|
|
77,415
|
Non-GAAP Operating
(loss) income
|
(166,197)
|
|
99,593
|
|
(474,887)
|
|
246,574
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(164,686)
|
|
74,591
|
|
(597,779)
|
|
184,807
|
Share-based
compensation expenses
|
29,528
|
|
26,736
|
|
124,253
|
|
77,415
|
Non-GAAP Net
(loss) income
|
(135,158)
|
|
101,327
|
|
(473,526)
|
|
262,222
|
Less: Net loss
attributable to non-controlling interests
|
(1,258)
|
|
-
|
|
(2,002)
|
|
-
|
Non-GAAP net
(loss) income attributable to Class A and Class B ordinary
shareholders
|
(133,900)
|
|
101,327
|
|
(471,524)
|
|
262,222
|
Non-GAAP net
(loss) income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
(2.52)
|
|
1.80
|
|
(8.58)
|
|
4.61
|
Diluted
|
(2.52)
|
|
1.74
|
|
(8.58)
|
|
4.40
|
Weighted average
number of ordinary shares outstanding used in calculating
Non-GAAP net (loss) income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
53,209,594
|
|
56,276,273
|
|
54,929,508
|
|
56,849,332
|
Diluted
|
53,209,594
|
|
58,360,822
|
|
54,929,508
|
|
59,598,711
|
|
Notes:
(a) The Non-GAAP net (loss) income per share is computed
using Non-GAAP net (loss) 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 fiscal year ended December 31, 2018 and
2017.
|
View original
content:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-fourth-quarter-and-full-year-2018-results-300810381.html
SOURCE Tarena International, Inc.