BEIJING, March 16, 2022 /PRNewswire/ -- Tarena
International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a
leading provider of adult professional education and childhood
& adolescent quality education services in China, today announced its unaudited financial
results for the fourth quarter and full year ended
December 31, 2021.
Fourth Quarter 2021 Highlights
- Net revenues increased by 0.8% year-over-year to RMB655.3 million (US$102.8
million), from RMB650.3
million in the same period of 2020.
- Net revenue from childhood & adolescent quality education
business, which represented 51.3% of the total net revenues,
increased by 12.8% year-over-year to RMB336.0 million (US$52.7
million), from RMB297.9
million in the same period of 2020.
- Net revenue from adult professional education business,
which represented 48.7% of the total net revenues, decreased by
9.4% year-over-year to RMB319.3
million (US$50.1 million),
from RMB352.4 million in the same
period of 2020.
- Gross profit decreased by 8.7% year-over-year to RMB327.6 million (US$51.4
million), from RMB358.8
million in the same period of 2020.
- Gross profit margin decreased by 5.2% points
year-over-year to 50.0%, from 55.2% in the same period of
2020.
- Operating loss decreased by 29.1% to a loss of RMB60.4 million (US$9.5 million), from a loss of RMB85.1 million in the same period of 2020.
Operating margin improved year-over-year to -9.2% from -13.1% in
the same period of 2020.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB56.5 million (US$8.9 million), compared to non-GAAP operating
loss of RMB77.5 million in the same
period of 2020.
- Income tax expense increased year-over year to RMB125.7 million (US$19.7
million) from RMB7.0 million
in the same period of 2020.
- Net loss was RMB182.5 million
(US$28.6 million), compared to net
loss of RMB94.7 million in the same
period of 2020.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB178.6 million
(US$28.0 million), compared to
non-GAAP net loss of RMB87.1 million
in the same period of 2020.
- Basic and diluted loss per ordinary share was
RMB3.22 (US$0.51), compared to
loss per ordinary share of RMB1.72 in the fourth quarter of 2020.
- Cash, cash equivalents and time deposits, including current and
non-current, and restricted cash totaled RMB430.4 million (US$67.5
million) as of December 31,
2021, compared to RMB364.8
million as of December 31,
2020.
- Net cash inflow from operating activities in the fourth quarter
of 2021 was RMB129.5 million
(US$20.3 million). Capital
expenditures in the fourth quarter of 2021 were RMB21.4 million (US$3.4
million).
- Deferred revenue totaled RMB2,024.9
million (US$317.8 million) as
of December 31, 2021, compared to
RMB1,998.2 million as of December 31, 2020, representing an increase of
1.3%.
- Total student enrollments in childhood & adolescent quality
education business, defined as the total number of students who
attended at least one paid lesson during that period or have
deposit balances in their accounts at the end of that period, in
the fourth quarter of 2021 reached 151,300, increased by 17.9%,
compared to the student enrollments of 128,300 in the same period
of 2020.
- Total number of learning centers in childhood & adolescent
quality education increased to 238 as of December 31, 2021, from 236 as of December 31, 2020.
- Total student enrollments in adult professional education
business, defined as the total number of courses enrolled by
students during that period, including multiple courses enrolled by
the same student, in the fourth quarter of 2021 decreased by 14.0%
year-over-year to 30,200.
- Total number of learning centers in adult professional
education decreased to 100 as of December
31, 2021, from 104 as of December 31,
2020.
Fiscal Year 2021 Highlights
- Net revenues increased by 25.7% year-over-year to RMB2,386.5 million (US$374.5 million), from RMB 1,897.9 million in the same period of
2020.
- Net revenue from childhood & adolescent quality education
business, which represented 51.8% of the total net revenues
increased by 62.3% year-over-year to RMB1,236.3 million (US$194.0 million), from RMB761.8 million in the same period of 2020.
- Net revenue from adult professional education business, which
represented 48.2% of the total net revenues, increased by 1.2%
year-over-year to RMB1,150.2 million
(US$180.5 million), from RMB1,136.1 million in the same period of
2020.
- Gross profit increased by 42.6% year-over-year to RMB1,185.1 million (US$186.0 million), from RMB831.0 million in the same period of 2020.
- Gross profit margin increased by 5.9% points year-over-year to
49.7%, from 43.8% in the same period of 2020.
- Operating loss decreased by 54.2% to a loss of RMB369.1 million (US$57.9
million), from a loss of RMB806.4
million in the same period of 2020. Operating margin
improved year-over-year to -15.5% from -42.5% in the same period of
2020.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB350.0
million (US$54.9 million),
compared to non-GAAP operating loss of RMB770.1 million in the same period of 2020.
- Income tax expense was RMB114.1
million (US$17.9 million),
compared to income tax benefit of RMB35.0
million in the same period of 2020.
- Net loss was RMB475.8 million
(US$74.7 million), compared to net
loss of RMB 771.2 million in the same
period of 2020.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB456.7 million
(US$71.7 million), compared to
non-GAAP net loss of RMB734.9 million
in the same period of 2020.
- Basic and diluted loss per ordinary share was RMB8.43 (US$1.32),
compared to loss per ordinary share of RMB14.11 in 2020.
- Total student enrollments in childhood & adolescent quality
education programs, defined as the total number of students who
attended at least one paid lesson during that period or have
deposit balances in their accounts at the end of that period, for
fiscal year 2021 reached 178,400, increased by 26.0%, compared to
the student enrollments of 141,600 in the same period of 2020.
- Total student enrollments in adult professional education
business, defined as the total number of courses enrolled by
students during that period, including multiple courses enrolled by
the same student, for fiscal year 2021 decreased by 13.5%
year-over-year to 72,100.
Key Financial Results
|
|
For the Three Months Ended
December
31,
|
Variance
|
% of
change
|
|
Fiscal Year
Ended
December
31,
|
Variance
|
% of
change
|
|
|
2020
Unaudited
|
|
2021
Unaudited
|
|
RMB
|
|
|
2020
Audited
|
|
2021
Unaudited
|
|
RMB
|
|
|
|
RMB
|
|
RMB
|
|
|
|
RMB
|
|
RMB
|
|
|
|
|
(in thousands,
except for percentages)
|
Net
revenues
|
|
650,254
|
|
655,301
|
|
5,047
|
0.8
|
|
1,897,883
|
|
2,386,520
|
|
488,637
|
25.7
|
Cost of
revenues(a)
|
|
(291,474)
|
|
(327,689)
|
|
(36,215)
|
12.4
|
|
(1,066,842)
|
|
(1,201,419)
|
|
(134,577)
|
12.6
|
Gross
profit
|
|
358,780
|
|
327,612
|
|
(31,168)
|
-8.7
|
|
831,041
|
|
1,185,101
|
|
354,060
|
42.6
|
Gross
margin
|
|
55.2%
|
|
50.0%
|
|
-5.2%
|
|
|
43.8%
|
|
49.7%
|
|
5.9%
|
|
Selling and
marketing
expenses(a)
|
|
(223,342)
|
|
(221,847)
|
|
1,495
|
-0.7
|
|
(906,337)
|
|
(878,130)
|
|
28,207
|
-3.1
|
General and
administrative
expenses(a)
|
|
(195,322)
|
|
(132,465)
|
|
62,857
|
-32.2
|
|
(630,618)
|
|
(569,985)
|
|
60,633
|
-9.6
|
Research and
development
expenses(a)
|
|
(25,247)
|
|
(33,664)
|
|
(8,417)
|
33.3
|
|
(100,466)
|
|
(106,098)
|
|
(5,632)
|
5.6
|
Total operating
expenses
|
|
(443,911)
|
|
(387,976)
|
|
55,935
|
-12.6
|
|
(1,637,421)
|
|
(1,554,213)
|
|
83,208
|
-5.1
|
Operating
loss
|
|
(85,131)
|
|
(60,364)
|
|
24,767
|
-29.1
|
|
(806,380)
|
|
(369,112)
|
|
437,268
|
-54.2
|
Notes:
(a) Includes share-based compensation expenses.
"We are delighted to see that, in the fourth quarter of 2021,
both our childhood & adolescent quality education and adult
professional education businesses reached their highest amounts of
quarterly cash collection during the year of 2021. This resulted in
our net cash provided by operating activities in the fourth quarter
of 2021 achieved RMB129.5 million,
and our total cash and cash equivalent balance increased to
RMB430.4 million as of December 31, 2021. At the same time, we are
excited that our operating loss decreased by 29.1% in the fourth
quarter of 2021 as compared to that in the same period of last
year, and the operating margin in the fourth quarter of 2021
improved to -9.2% from -13.1% in the same period of 2020. Our total
net revenues increased by about 6.5% in the fourth quarter of 2021
as compared to that in the third quarter of 2021, and increased by
0.8% as compared to that in the fourth quarter of 2020. Net revenue
from childhood & adolescent quality education business
increased by 12.8% in the fourth quarter of 2021 as compared to
that in the same period of 2020. Net revenue from adult
professional education business decreased by 9.4% in the fourth
quarter of 2021 as compared to that in the same period of 2020, but
the decrease in cost of revenue and
operating expenses of adult professional education outweighed its
decrease in net revenue. Operating
loss decreased by 54.2% in 2021 as compared to that in 2020.
Operating margin improved to -15.5% in 2021 from -42.5% in
2020.
In 2021, by adopting the Online-Merge-Offline (OMO) model to
develop and deliver our comprehensive products, and by optimizing
our offline learning centers' operational efficiency and user
acquisition capability, we believe that we have further
strengthened our core competitive advantages in the market.
Moreover, we have been adhering to our strategies of optimizing
business structure and uplifting operational efficiency so as to
cope with the negative impacts arising from the sporadic occurrence
of COVID-19 cases, and to ensure that we can achieve a sustainable
growth in our business." remarked Ms. Ying
Sun, the Chief Executive Officer of Tarena.
"Looking ahead, we will continuously enhance our overall
operational efficiency and grow our revenues by increasing the
productivity of each learning center rather than relying on the
expansion of the learning center network. Our target is to improve
our profitability.
Additionally, we are pleased to welcome Mr. Roy Shengwen Rong to join our board of directors
as an independent director and the chairman of the audit committee.
We look forward to working with Roy to continuously develop our
businesses in a healthy way. We would like to thank Mr. Arthur Lap
Tat Wong for his dedication during his tenure as an independent
director in the past two years." concluded Ms. Ying Sun.
Fourth Quarter 2021 Results
Net Revenues
Total net revenues increased by 0.8% to RMB655.3 million (US$102.8
million) in the fourth quarter of 2021, from RMB650.3 million in the same period of 2020.
Net revenue from childhood & adolescent quality education
business increased by 12.8% to RMB336.0
million (US$52.7 million) in
the fourth quarter of 2021, from RMB297.9
million in same period of 2020. The increase was primarily
due to increase in student enrollments from 128,300 in the fourth
quarter of 2020 to 151,300 in the same period of 2021.
Net revenue from adult professional education business decreased
by 9.4% to RMB319.3 million
(US$50.1 million) in the fourth
quarter of 2021, from RMB352.4
million in same period of 2020. The decrease was primarily
due to decrease in student enrollments from 35,100 in the fourth
quarter of 2020 to 30,200 in the same period of this year.
Cost of Revenues
Cost of revenues increased by 12.4% to RMB327.7 million (US$51.4
million) in the fourth quarter of 2021, from RMB291.5 million in the same period of 2020. The
increase was primarily due to increase in personnel-related costs
resulting from the growing number of teaching staffs at our
childhood & adolescent quality education learning centers and
increase in social security fees which were exempted according to
the preferential policies enacted by the government during COVID-19
pandemic in the fourth quarter of 2020 but were not exempted in the
fourth quarter of 2021.
Gross Profit and Gross Margin
Gross profit decreased by 8.7% to RMB327.6 million (US$51.4
million) in the fourth quarter of 2021, from RMB358.8 million in the same period of 2020.
Gross margin, which is equal to gross profit divided by net
revenues, was 50.0% in the fourth quarter of 2021, compared to
55.2% in the same period of 2020. The decrease in gross margin was
primarily attributable to the increase in total cost of revenues
outweighing the increase in total net revenues in the fourth
quarter of 2021.
Operating Expenses
Total operating expenses decreased by 12.6% to RMB388.0 million (US$60.9
million) in the fourth quarter of 2021, from RMB443.9 million in the same period of 2020.
Total non-GAAP operating expenses, which excluded share-based
compensation expenses, decreased by 12.1% to RMB383.6 million (US$60.2
million) in the fourth quarter of 2021, from RMB436.4 million in the same period of 2020.
Total share-based compensation expenses allocated to the related
operating expenses decreased by 41.3% to RMB4.4 million (US$0.7
million) in the fourth quarter of 2021, from RMB7.5 million in the same period of 2020.
Selling and marketing expenses decreased by 0.7% to RMB221.8 million (US$34.8
million) in the fourth quarter of 2021, from RMB223.3 million in the same period of 2020. The
decrease was mainly due to decrease in personnel-related cost
resulting from drop in the number of sales staffs which was
partially offset by the increase in sales promotion fee in the
fourth quarter of 2021, as compared to the same period of
2020.
General and administrative expenses decreased by 32.2% to
RMB132.5 million (US$20.8 million) in the fourth quarter of 2021,
from RMB195.3 million in the same
period of 2020. The decrease was mainly due to decrease in
personnel-related cost as a result of decrease in the number of
staffs, and the one-off income recognized resulting from the
receipt of the settlement payment from the Buyer Group Parties of
the proposed privatization transaction in the fourth quarter of
2021.
Research and development expenses increased by 33.3% to
RMB33.7 million (US$5.3 million) in the fourth quarter of 2021,
from RMB25.2 million in the same
period of 2020. The increase was mainly due to increase in
personnel-related cost in the fourth quarter of 2021.
Operating Loss
Operating loss was RMB60.4 million
(US$9.5 million) in the fourth
quarter of 2021, compared to operating loss of RMB85.1 million in the same period of 2020.
Non-GAAP operating loss, which excluded share-based compensation
expenses, was RMB56.5 million
(US$8.9 million) in the fourth
quarter of 2021, compared to non-GAAP operating loss of
RMB77.5 million in the same period of
2020.
Interest Income/(Expense)
Net interest income was RMB0.8
million (US$0.1 million) in
the fourth quarter of 2021, compared to net interest expense of
RMB1.5 million in the same period of
2020.
Other Income
Other income was RMB2.7 million
(US$0.4 million) in the fourth
quarter of 2021, compared to RMB2.0
million in other income in the same period of 2020. The
income was mostly from government grant offered to learning centers
and investment income of invested companies.
Foreign Exchange Loss
Foreign exchange loss was RMB0.01
million (US$0.0 million) in
the fourth quarter of 2021, compared to RMB3.1 million foreign exchange loss in the same
period of 2020.
Income Tax Expense
The Company recorded an income tax expense of RMB125.7 million (US$19.7
million) in the fourth quarter of 2021, compared to income
tax expense of RMB7.0 million in the
same period of 2020. The increase in tax expense was mainly due to
increase in provision allowance made to the deferred tax assets
which was derived from the unutilized tax loss, as it was more
likely than not that the tax loss will not be utilized within the
five-years deduction period.
Net Loss
As a result of the foregoing, net loss was RMB182.5 million (US$28.6
million) in the fourth quarter of 2021, compared to net loss
of RMB94.7 million in the same period
of 2020. Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB178.6 million
(US$28.0 million) in the fourth
quarter of 2021, compared to non-GAAP net loss of RMB87.1 million in the same period of 2020.
Basic and Diluted Loss per ordinary share
Loss per ordinary share was RMB3.22 (US$0.51) in the fourth quarter of
2021, compared to loss per ordinary share of RMB1.72 in the fourth quarter of 2020. Non-GAAP
loss per ordinary share, which excluded share-based
compensation expenses, was RMB3.16
(US$0.50) in the fourth quarter of
2021, compared to non-GAAP loss per ordinary share of
RMB1.58 in the fourth quarter of
2020.
Cash Flow
Net cash inflow from operating activities in the fourth quarter
of 2021 was RMB129.5 million
(US$20.3 million). Capital
expenditures in the fourth quarter of 2021 were RMB21.4 million (US$3.4 million).
Fiscal Year 2021 Results
Net Revenues
Net revenues increased by 25.7% to RMB2,386.5 million (US$374.5 million) in 2021, from RMB1,897.9 million in 2020.
Net revenue from childhood & adolescent quality education
increased by 62.3% from RMB761.8
million in 2020 to RMB1,236.3
million (US$194.0 million) in
2021. The increase was mainly due to increase in student
enrollments of childhood & adolescent quality education from
141,600 in 2020 to 178,400 in 2021.
Net revenue from adult professional education business increased
by 1.2% from RMB1,136.1 million in
2020 to RMB1,150.2 million
(US$180.5 million) in 2021. The
increase was mainly attributable to increase in unit price of
tuition fee, and certificate revenue, whilst partially offset by
decrease in student enrollments from 83,400 in 2020 to 72,100 in
2021.
Cost of Revenues
Cost of revenues increased by 12.6% to RMB1,201.4 million (US$188.5 million) in 2021, from RMB1,066.8 million in 2020. The increase was
mainly due to increase in personnel-related costs resulting from
growing number of teaching staffs and, increase in social security
fees which were exempted according to the preferential policies
enacted by the government during COVID-19 pandemic in 2020 but were
not exempted in 2021.
Gross Profit and Gross Margin
Gross profit increased by 42.6% to RMB1,185.1 million (US$186.0 million) in 2021, from RMB831.0 million in 2020. Gross margin, which is
equal to gross profit divided by net revenues, was 49.7% in 2021,
compared to 43.8% in 2020. The increase in gross margin was
primarily attributable to the increase in total net revenues
outweighed the increase in cost of revenues in 2021 and, the
effective cost controls we have implemented in 2021.
Operating Expenses
Total operating expenses decreased by 5.1% to RMB1,554.2 million (US$243.9 million) in 2021, from RMB1,637.4 million in 2020. Total non-GAAP
operating expenses, which excluded share-based compensation
expenses, decreased by 4.1% to RMB1,535.2
million (US$240.9 million) in
2021, from RMB1,601.6 million in
2020. Total share-based compensation expenses allocated to the
related operating expenses decreased by 46.9% to RMB19.0 million (US$3.0
million) in 2021, from RMB35.9
million in 2020.
Selling and marketing expenses decreased by 3.1% to RMB878.1 million (US$137.8
million) in 2021, from RMB906.3
million in 2020. The decline was mainly due to decrease in
advertising expenses in 2021.
General and administrative expenses decreased by 9.6% to
RMB570.0 million (US$89.4 million) in 2021, from RMB 630.6 million in 2020. The decline was mainly
due to decrease in personnel-related cost and welfare as a result
of decrease in number of staffs, and the one-off income recognized
resulting from the receipt of the settlement payment from the Buyer
Group Parties of the proposed privatization transaction in
2021.
Research and development expenses increased by 5.6% to
RMB106.1 million (US$16.6 million) in 2021, from RMB100.5 million in 2020. The increase was mainly
due to the increase in personnel-related costs in 2021.
Operating Loss
Operating loss was RMB369.1
million (US$57.9 million) in
2021, compared to operating loss of RMB806.4
million in 2020. Non-GAAP operating loss, which excluded
share-based compensation expenses, was RMB350.0 million (US$54.9
million) in 2021, compared to non-GAAP operating loss of
RMB770.1 million in 2020.
Interest Income/(Expense)
Net interest income was RMB2.3
million (US$0.4 million) in
2021, compared to net interest expense of RMB0.2 million in 2020.
Other Income
Other income was RMB5.6 million
(US$0.9 million) in 2021, compared to
RMB5.2 million in other income in
2020. The income was mostly from government grants offered to
learning centers and investment income of invested companies.
Foreign Exchange Loss
Foreign exchange loss was RMB0.5
million (US$0.1 million) in
2021, compared to RMB4.8 million
foreign exchange loss in 2020.
Income Tax Benefit/(Expense)
The Company recorded an income tax expense of RMB114.1 million (US$17.9
million) in 2021, compared to income tax benefit of
RMB35.0 million in 2020. The increase
in tax expense was mainly due to increase in provision allowance
made to the deferred tax assets which was derived from the
unutilized tax loss, as it was more likely than not that the tax
loss will not be utilized within the five years deduction
period.
Net Loss
As a result of the foregoing, net loss was RMB475.8 million (US$74.7
million) in 2021, compared to net loss of RMB 771.2 million in 2020. Non-GAAP net loss,
which excluded share-based compensation expenses, was RMB456.7 million (US$71.7
million) in 2021, compared to non-GAAP net loss of
RMB734.9 million in 2020.
Basic and Diluted Loss per ordinary share
Loss per ordinary share was RMB8.43(US$1.32) in
2021, compared to loss per ordinary share of RMB14.11 in 2020. Non-GAAP loss per
ordinary share, which excluded share-based compensation
expenses, was RMB8.10 (US$1.27) in 2021, compared to non-GAAP loss per
ordinary share of RMB13.44 in
2020.
Cash Flow
Net cash inflow from operating activities in 2021 was
RMB8.6 million (US$1.3 million). Net cash inflow from investing
activities in 2021 were RMB33.7
million (US$5.3
million). The net proceeds from disposal of property
and long-term investments were RMB94.6
million (US$14.8 million) and
the capital expenditures were RMB67.7
million (US$10.6 million) in
2021.
The financial statements for the fourth quarter and full year
ended December 31, 2021 herein the
press release have not been audited or reviewed by the Company's
independent registered accounting firm. The audited financial
statements for the year ended December 31,
2021 to be disclosed in the Company's Form 20-F may have
discrepancies with the above-mentioned unaudited financial
statements.
Termination of the Going Private Transaction
On April 30, 2021, the Company
announced that it entered into an Agreement and Plan of Merger (the
"Merger Agreement") with Kidedu Holdings Limited ("Parent") and
Kidarena Merger Sub, a wholly owned subsidiary of Parent ("Merger
Sub"). Pursuant to the Merger Agreement, Merger Sub will merge with
and into the Company, with the Company continuing as the surviving
company and becoming a wholly owned subsidiary of Parent (the
"Merger"), in a transaction at $4 per
share. On November 15, 2021, the
Company and the buyer group (the "Buyer Group Parties") consisting
of Mr. Han Shaoyun, Ascendent Capital Partners III, L.P., Parent,
Merger Sub and Kidtech Limited, a wholly owned subsidiary of Mr.
Han Shaoyun, entered into a termination and settlement agreement
(the "Termination Agreement") to mutually terminate the Merger
Agreement. Pursuant to the Termination Agreement, the Buyer Group
Parties made the settlement payment of US$3.53 million to the Company on November 24, 2021. The Merger Agreement was
therefore terminated of even date upon receipt by the Company of
such settlement payment.
Business Outlook
Based on the Company's current estimates, total net revenues for
the first quarter of 2022 are expected to be in the range of
RMB580 million and RMB610 million, which represent an increase of
8.6% to 14.2% as compared to the net revenues in the first quarter
of 2021, after taking into consideration the seasonal fluctuation
factor and the likely continued impact of the COVID-19.
This guidance is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions, which are subject to change, particularly
as to the potential impact of COVID-19 on the economy in
China and elsewhere in the
world.
Exchange Rate Information
All translations made in the financial statements or elsewhere
in this press release made from RMB into United States dollars ("US$") are solely for
convenience and calculated at the rate of US$1.00=RMB6.3726,
representing the exchange rate as of December 30, 2021, set forth in the H.10
statistical release of the U.S. Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate, or
at any other rate, on December 30,
2021.
Conference Call
Company management will hold an earnings conference call and
live webcast to discuss the Company's results at 8:00 AM on March 16,
2022, U.S. Eastern Time (8:00
PM on March 16, 2022, Beijing
Time).
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, passcode and unique registrant ID.
Conference call registration link:
http://apac.directeventreg.com/registration/event/7940929. It will
automatically direct you to the registration page of "Tarena's
Fourth Quarter and Fiscal Year 2021 Earnings Conference Call "
where you may fill in your details for RSVP. If it requires you to
enter a participant conference ID, please enter "7940929".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s), direct
event passcode and registrant ID) provided in the confirmation
email received at the point of registering.
A replay of the conference call may be accessed by phone at the
following number until March 24,
2022, 08:59 ET:
United
States:
|
+1 855 452
5696
|
INTERNATIONAL:
|
+61 2 8199
0299
|
Conference
ID:
|
7940929
|
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.
About Tarena International, Inc.
Tarena is a leading provider of adult professional education and
childhood and adolescent quality education services in China. Through its innovative education
platform combining live distance instruction, classroom-based
tutoring and online learning modules, Tarena offers adult
professional education courses in IT and non-IT subjects. Its adult
professional education courses provide students with practical
skills to prepare them for jobs in industries with significant
growth potential and strong hiring demand. Tarena also offers
childhood and adolescent quality education programs, including
computer coding and robotics programming courses, etc., targeting
students aged between three and eighteen.
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. Among other
things, quotations from management in this announcement, as well as
the Company's strategic and operational plans (in particular, the
impact of COVID-19 on our businesses; the solutions we adopt to
address such impact of COVID-19; balancing growth and
profitability; as well as the growth prospects of adult
professional education and childhood and adolescent quality
education services in China)
contain forward-looking 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:
the impact of the COVID-19 outbreak; 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 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 ordinary share, 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.
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,
|
|
December
31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
320,179
|
|
423,766
|
|
66,498
|
Time
deposits
|
|
6,257
|
|
6,257
|
|
982
|
Restricted
cash
|
|
38,369
|
|
255
|
|
40
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
32,790
|
|
48,458
|
|
7,604
|
Amounts due from
related parties
|
|
305
|
|
839
|
|
132
|
Prepaid expenses and
other current assets
|
|
138,353
|
|
139,757
|
|
21,931
|
Total current
assets
|
|
536,253
|
|
619,332
|
|
97,187
|
Time deposits-non
current
|
|
-
|
|
123
|
|
19
|
Accounts receivable,
net of allowance for doubtful accounts-non current
|
|
192
|
|
90
|
|
14
|
Amount due from
related parties-non current
|
|
-
|
|
683
|
|
107
|
Property and
equipment, net
|
|
464,490
|
|
299,441
|
|
46,989
|
Intangible assets,
net
|
|
13,444
|
|
9,906
|
|
1,554
|
Goodwill
|
|
52,782
|
|
52,782
|
|
8,283
|
Right-of-use
assets
|
|
586,451
|
|
495,936
|
|
77,823
|
Long-term investments,
net
|
|
67,592
|
|
46,449
|
|
7,289
|
Deferred income tax
assets
|
|
142,220
|
|
41,000
|
|
6,434
|
Other non-current
assets, net
|
|
95,825
|
|
76,040
|
|
11,932
|
Total
assets
|
|
1,959,249
|
|
1,641,782
|
|
257,631
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term bank
loans
|
|
10,710
|
|
30,000
|
|
4,708
|
Accounts
payable
|
|
10,293
|
|
8,914
|
|
1,399
|
Amounts due to related
parties
|
|
180
|
|
554
|
|
87
|
Operating lease
liabilities-current
|
|
199,083
|
|
239,937
|
|
37,651
|
Income taxes
payable
|
|
76,817
|
|
89,000
|
|
13,966
|
Deferred
revenue-current
|
|
1,980,138
|
|
2,008,078
|
|
315,111
|
Accrued expenses and
other current liabilities
|
|
391,904
|
|
563,603
|
|
88,442
|
Total current
liabilities
|
|
2,669,125
|
|
2,940,086
|
|
461,364
|
Deferred revenue-non
current
|
|
18,060
|
|
16,774
|
|
2,632
|
Operating lease
liabilities-non current
|
|
406,251
|
|
272,575
|
|
42,773
|
Other non-current
liabilities
|
|
5,082
|
|
4,767
|
|
748
|
Total
liabilities
|
|
3,098,518
|
|
3,234,202
|
|
507,517
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
-
|
Shareholders'
equity:
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
349
|
|
355
|
|
56
|
Class B ordinary
shares
|
|
74
|
|
74
|
|
12
|
Treasury
stock
|
|
(459,815)
|
|
(459,815)
|
|
(72,155)
|
Additional paid-in
capital
|
|
1,324,161
|
|
1,347,205
|
|
211,406
|
Accumulated other
comprehensive income
|
|
49,120
|
|
48,699
|
|
7,641
|
Accumulated
deficit
|
|
(2,045,891)
|
|
(2,520,438)
|
|
(395,512)
|
Total deficit
attributable to the shareholders of Tarena International,
Inc.
|
|
(1,132,002)
|
|
(1,583,920)
|
|
(248,552)
|
Non-controlling
interest
|
|
(7,267)
|
|
(8,500)
|
|
(1,334)
|
Total liabilities
and equity
|
|
1,959,249
|
|
1,641,782
|
|
257,631
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(in thousands,
except share data and per share data)
|
|
|
|
For the Three Months Ended
December
31,
|
|
Fiscal Year
Ended
December
31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenues
|
|
650,254
|
|
655,301
|
|
102,831
|
|
1,897,883
|
|
2,386,520
|
|
374,497
|
Cost of
revenues(a)
|
|
(291,474)
|
|
(327,689)
|
|
(51,422)
|
|
(1,066,842)
|
|
(1,201,419)
|
|
(188,529)
|
Gross
profit
|
|
358,780
|
|
327,612
|
|
51,409
|
|
831,041
|
|
1,185,101
|
|
185,968
|
Selling and
marketing
expenses(a)
|
|
(223,342)
|
|
(221,847)
|
|
(34,813)
|
|
(906,337)
|
|
(878,130)
|
|
(137,798)
|
General and
administrative
expenses(a)
|
|
(195,322)
|
|
(132,465)
|
|
(20,787)
|
|
(630,618)
|
|
(569,985)
|
|
(89,443)
|
Research and
development
expenses(a)
|
|
(25,247)
|
|
(33,664)
|
|
(5,283)
|
|
(100,466)
|
|
(106,098)
|
|
(16,649)
|
Operating
loss
|
|
(85,131)
|
|
(60,364)
|
|
(9,474)
|
|
(806,380)
|
|
(369,112)
|
|
(57,922)
|
Interest income/
(expense)
|
|
(1,473)
|
|
774
|
|
121
|
|
(199)
|
|
2,335
|
|
366
|
Other
income
|
|
2,031
|
|
2,749
|
|
431
|
|
5,201
|
|
5,572
|
|
875
|
Foreign exchange
loss
|
|
(3,105)
|
|
(12)
|
|
(2)
|
|
(4,849)
|
|
(518)
|
|
(81)
|
Loss before income
taxes
|
|
(87,678)
|
|
(56,853)
|
|
(8,924)
|
|
(806,227)
|
|
(361,723)
|
|
(56,762)
|
Income tax
benefit/ (expense)
|
|
(7,027)
|
|
(125,696)
|
|
(19,724)
|
|
35,034
|
|
(114,057)
|
|
(17,898)
|
Net
loss
|
|
(94,705)
|
|
(182,549)
|
|
(28,648)
|
|
(771,193)
|
|
(475,780)
|
|
(74,660)
|
Less: Net loss
attributable to
non-controlling interests
|
|
(471)
|
|
(75)
|
|
(12)
|
|
(4,550)
|
|
(1,233)
|
|
(193)
|
Net loss
attributable to Class
A and Class B ordinary
shareholders
|
|
(94,234)
|
|
(182,474)
|
|
(28,636)
|
|
(766,643)
|
|
(474,547)
|
|
(74,467)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per Class
A and
Class B ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(1.72)
|
|
(3.22)
|
|
(0.51)
|
|
(14.11)
|
|
(8.43)
|
|
(1.32)
|
Weighted average
number of
Class A and Class B
ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
54,904,956
|
|
56,587,227
|
|
56,587,227
|
|
54,341,213
|
|
56,260,925
|
|
56,260,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(94,705)
|
|
(182,549)
|
|
(28,648)
|
|
(771,193)
|
|
(475,780)
|
|
(74,660)
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment, net of nil income
taxes
|
|
(609)
|
|
(285)
|
|
(45)
|
|
(2,266)
|
|
(421)
|
|
(66)
|
Comprehensive loss
|
|
(95,314)
|
|
(182,834)
|
|
(28,693)
|
|
(773,459)
|
|
(476,201)
|
|
(74,726)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(a) Includes share-based
compensation expenses as follows:
|
|
For the Three Months Ended
December
31,
|
|
Fiscal Year
Ended
December
31,
|
|
|
2020
Unaudited
|
|
2021
Unaudited
|
|
2021
Unaudited
|
|
2020
Audited
|
|
2021
Unaudited
|
|
2021
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
57
|
|
(485)
|
|
(76)
|
|
379
|
|
70
|
|
11
|
Selling and marketing
expenses
|
|
460
|
|
(189)
|
|
(30)
|
|
1,842
|
|
2,785
|
|
437
|
General and
administrative expenses
|
|
6,381
|
|
4,245
|
|
666
|
|
26,242
|
|
14,840
|
|
2,329
|
Research and
development expenses
|
|
691
|
|
341
|
|
54
|
|
7,783
|
|
1,408
|
|
221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
Fiscal
Year Ended December 31,
|
|
|
2020
Unaudited
|
|
2021
Unaudited
|
|
2021
Unaudited
|
|
2020
Unaudited
|
|
2021
Unaudited
|
|
2021
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
|
291,474
|
|
327,689
|
|
51,422
|
|
1,066,842
|
|
1,201,419
|
|
188,529
|
Share-based
compensation expense in
cost of revenues(c)
|
|
57
|
|
(485)
|
|
(76)
|
|
379
|
|
70
|
|
11
|
Non-GAAP Cost of
revenues
|
|
291,417
|
|
328,174
|
|
51,498
|
|
1,066,463
|
|
1,201,349
|
|
188,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
|
223,342
|
|
221,847
|
|
34,813
|
|
906,337
|
|
878,130
|
|
137,798
|
Share-based
compensation expense in
selling and marketing expenses(c)
|
|
460
|
|
(189)
|
|
(30)
|
|
1,842
|
|
2,785
|
|
437
|
Non-GAAP Selling
and marketing
expenses
|
|
222,882
|
|
222,036
|
|
34,843
|
|
904,495
|
|
875,345
|
|
137,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
administrative
expenses
|
|
195,322
|
|
132,465
|
|
20,787
|
|
630,618
|
|
569,985
|
|
89,443
|
Share-based
compensation expense in
general and administrative expenses(c)
|
|
6,381
|
|
4,245
|
|
666
|
|
26,242
|
|
14,840
|
|
2,329
|
Non-GAAP General
and
administrative expenses
|
|
188,941
|
|
128,220
|
|
20,121
|
|
604,376
|
|
555,145
|
|
87,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development
expenses
|
|
25,247
|
|
33,664
|
|
5,283
|
|
100,466
|
|
106,098
|
|
16,649
|
Share-based
compensation expense in
research and development expenses(c)
|
|
691
|
|
341
|
|
54
|
|
7,783
|
|
1,408
|
|
221
|
Non-GAAP Research
and
development expenses
|
|
24,556
|
|
33,323
|
|
5,229
|
|
92,683
|
|
104,690
|
|
16,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(85,131)
|
|
(60,364)
|
|
(9,474)
|
|
(806,380)
|
|
(369,112)
|
|
(57,922)
|
Share-based
compensation expenses
|
|
7,589
|
|
3,912
|
|
614
|
|
36,246
|
|
19,103
|
|
2,998
|
Non-GAAP Operating
loss
|
|
(77,542)
|
|
(56,452)
|
|
(8,860)
|
|
(770,134)
|
|
(350,009)
|
|
(54,924)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(94,705)
|
|
(182,549)
|
|
(28,648)
|
|
(771,193)
|
|
(475,780)
|
|
(74,660)
|
Share-based
compensation expenses
|
|
7,589
|
|
3,912
|
|
614
|
|
36,246
|
|
19,103
|
|
2,998
|
Non-GAAP Net
loss
|
|
(87,116)
|
|
(178,637)
|
|
(28,034)
|
|
(734,947)
|
|
(456,677)
|
|
(71,662)
|
Less: Net loss
attributable to non-
controlling interests
|
|
(471)
|
|
(75)
|
|
(12)
|
|
(4,550)
|
|
(1,233)
|
|
(193)
|
Non-GAAP net loss
attributable to
Class A and Class B ordinary
shareholders
|
|
(86,645)
|
|
(178,562)
|
|
(28,022)
|
|
(730,397)
|
|
(455,444)
|
|
(71,469)
|
Non-GAAP net loss
per Class A and
Class B ordinary share(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(1.58)
|
|
(3.16)
|
|
(0.50)
|
|
(13.44)
|
|
(8.10)
|
|
(1.27)
|
Weighted average
number of ordinary
shares outstanding used in calculating
Non-GAAP net loss per Class A and
Class B ordinary share(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
54,904,956
|
|
56,587,227
|
|
56,587,227
|
|
54,341,213
|
|
56,260,925
|
|
56,260,925
|
Notes:
(a) The Non-GAAP net loss per ordinary share is computed using
Non-GAAP net loss attributable to ordinary shareholders and the
same number of ordinary shares used in GAAP basic and diluted net
loss per ordinary share calculation.
(b) There was no tax impact of share-based compensation expenses
for the fourth quarter and full year of 2021 and 2020,
respectively.
(c) Include adjustments of reclassifying share-based
compensation expenses between different categories of operating
expenses.
View original
content:https://www.prnewswire.com/news-releases/tarena-international-inc-announces-the-results-for-the-fourth-quarter-and-fiscal-year-of-2021-301503924.html
SOURCE Tarena International, Inc.