- Net Revenue Up 15.1% Year-Over-Year to $35.4 Million, Exceeding Guidance Range
-
BEIJING, Aug. 23, 2017 /PRNewswire/ -- China Distance
Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a
leading provider of online education and value-added services for
professionals and corporate clients in China, today announced unaudited financial
results for the third quarter of fiscal year 2017 ended
June 30, 2017.
Third Quarter Fiscal 2017 Financial and Operational
Highlights
- Total course enrollments were 659,000, a decrease of 31.1% from
the third quarter of fiscal 2016.
- Cash receipts from online course registration were $25.4 million, an increase of 4.5 % from the
third quarter of fiscal 2016. Without the impact of Renminbi
depreciation against the U.S. dollar, cash receipts from online
course registration increased by 9.7% year-over-year in the third
quarter of fiscal 2017.
- Net revenue increased by 15.1% to $35.4
million from $30.8 million in
the prior year period, exceeding the Company's guidance range of
$30.8 million to $32.3 million.
Xiamen NetinNet, which was acquired by the Company in May 2016, contributed net revenue from the sale
of learning simulation software of $1.2
million, an increase of 8.8% from the third quarter of
fiscal 2016.
- Gross profit was $19.2 million,
an increase of 9.2% from $17.6
million in the prior year period.
- Non-GAAP1 gross profit was $19.2 million, an increase of 9.2% from
$17.6 million in the prior year
period.
- Gross margin was 54.1%, compared with 57.1% in the prior year
period. Non-GAAP1 gross
margin was 54.3%, compared with 57.2% in the prior year
period.
- Operating income was $4.7
million, a decrease of 21.7% from $6.0 million in the prior year period.
- Non-GAAP1 operating income was $5.2 million, a decrease of 20.3% from
$6.5 million in the prior year
period.
- Net income was $2.9 million, a
decrease of 60.5% from $7.4 million
in the prior year period.
- Non-GAAP1 net income was $3.4
million, a decrease of 56.9% from $7.9 million in the prior year period.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.089, compared with
basic and diluted net income per ADS of $0.219 and $0.218,
respectively, for the third quarter of fiscal 2016. Each ADS
represents four ordinary shares.
- Basic and diluted non-GAAP1 net income per ADS were
$0.104 and $0.103, respectively, compared with basic and
diluted non-GAAP1 net income per ADS of $0.234 and $0.233,
respectively, for the third quarter of fiscal 2016.
- Cash flow from operations decreased by 11.6% to $7.8 million from $8.8
million in the third quarter of fiscal 2016.
1 For more
information about the non-GAAP financial measures contained in this
press release, please see "Use of Non-GAAP Financial Measures"
below.
|
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "Our third quarter revenue growth of 15.1%
year-over-year exceeded our guidance range, primarily due to
higher-than-expected revenue from books and reference materials.
However, softer growth in cash receipts from online course
registration of 4.5% year-over-year in the third quarter adversely
impacted the revenue growth of online education services. Our third
quarter total enrollment growth declined 31.1% year-over-year,
primarily due to a decline in accounting continuing education
course enrollments, as a result of the previously disclosed
suspension of the Accounting Certificate examination. Excluding
accounting continuing education and Accounting Certificate course
enrollments, our third quarter total enrollment growth was 7.4%
year-over-year.
"Despite softer growth in cash receipts from online course
registration, our ability to quickly adapt and respond to changing
market dynamics bodes well for our future development. The
accounting practical skills training and employment guidance
services bundles we introduced earlier this fiscal year, together
with our core accounting test preparation courses, drove strong
growth of cash receipts from online accounting course registration
of 28.8% year-over-year in the third quarter.
"As we continue to execute on our strategic expansion
initiatives, we are employing a prudent approach to further
leverage our existing resources by branching into complementary
services. One such strategic investment is our recently announced
acquisition of 40% equity interest in Beijing Ruida, which enables
us to build-out our practice in judicial examination preparation,
while leveraging our proven expertise and online learning platform.
In addition, in an effort to create new revenue streams that
broaden our current offerings, we have extended our business
services offered to corporate clients to now include bookkeeping
services, which nicely complements our existing tax advisory and
training business. Through this approach, we will further grow our
business, and extend the breadth and depth of the life-long
partnerships we are establishing with our students and corporate
clients," Mr. Zhu concluded.
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, said, "We returned to profitability in
our third fiscal quarter as expected, driven by our efforts to
continually maintain operating efficiency while balancing our
growth and profitability. The significant year-over-year decline in
our third quarter non-GAAP net income of 56.9%, however, was
primarily due to a foreign currency exchange loss of $1.2 million compared with a foreign currency
exchange gain of $2.8 million in the
year-ago period, together with the impact of Xiamen NetinNet in its
seasonally weak third quarter. Excluding the impact of Xiamen
NetinNet, our third quarter adjusted non-GAAP operating income
declined by 7.1% year-over-year."
Third quarter Fiscal 2017 Financial Results
Net Revenue. Total net revenue increased by 15.1%
to $35.4 million in the third quarter
of fiscal 2017 from $30.8 million in
the third quarter of fiscal 2016. Net revenue from online education
services, books and reference materials, and other sources
contributed 74.7%, 11.2% and 14.1%, respectively, of total net
revenues for the third quarter of fiscal 2017.
Online education services. Net revenue from online
education services increased by 4.8% to $26.5 million in the third quarter of fiscal 2017
from $25.3 million in the third
quarter of fiscal 2016. This increase was primarily due to
relatively higher revenue growth from our healthcare vertical,
partially offset by weaker revenue growth from our accounting
vertical, due to the impact of the suspension of the Accounting
Certificate Examination and the downstream effect of this
examination suspension on Accounting Continuing Education.
Books and reference materials. Net revenue from books and
reference materials increased by 104.4% to $4.0 million in the third quarter of fiscal 2017
from $1.9 million in the third
quarter of fiscal 2016.
Other revenues. Net revenue from other sources increased
by 39.6% to $5.0 million in the third
quarter of fiscal 2017 from $3.6
million in the third quarter of fiscal 2016, primarily due
to revenue growth from business start-up training services.
Cost of Sales. Cost of sales increased by 22.9% to
$16.3 million in the third quarter of
fiscal 2017 from $13.2 million in the
third quarter of fiscal 2016. Non-GAAP1 cost of sales
increased by 23.0% to $16.2 million
in the third quarter of fiscal 2017 from $13.2 million in the third quarter of fiscal
2016. This increase was primarily due to expenses associated with
Xiamen NetinNet, as well as increased cost of books and reference
materials, and salaries and related expenses. This increase was
partially offset by decreased lecture fees.
Gross Profit. Gross profit increased by
9.2% to $19.2 million in the third
quarter of fiscal 2017 from $17.6
million in the prior year period. Non-GAAP1 gross
profit increased by 9.2% to $19.2
million in the third quarter of fiscal 2017 from
$17.6 million in the prior year
period. Gross margin was 54.1% in the third quarter of fiscal 2017,
compared with 57.1% in the third quarter of fiscal 2016.
Non-GAAP1 gross margin was 54.3% in the third quarter of
fiscal 2017, compared with 57.2% in the third quarter of fiscal
2016.
Operating Expenses. Total operating expenses
increased by 24.6% to $14.6 million
in the third quarter of fiscal 2017 from $11.8 million in the prior year period.
Non-GAAP1 total operating expenses increased by 25.7% to
$14.2 million in the third quarter of
fiscal 2017 from $11.3 million in the
prior year period.
Selling expenses. Selling expenses increased by 35.4% to
$10.4 million in the third quarter of
fiscal 2017 from $7.7 million in the
prior year period. Non-GAAP1 selling expenses increased
by 35.5% to $10.4 million in the
third quarter of fiscal 2017 from $7.7
million in the prior year period. The increase was primarily
driven by increased advertising and promotional expenses, together
with expenses associated with Xiamen NetinNet.
General and administrative expenses. General and
administrative expenses increased by 4.2% to $4.3 million in the third quarter of fiscal 2017
from $4.1 million in the prior year
period. Non-GAAP1 general and administrative expenses
increased by 5.2% to $3.8 million in
the third quarter of fiscal 2017 from $3.6
million in the prior year period. The increase was mainly
due to expenses associated with Xiamen NetinNet, and the provision
for doubtful debts. This increase was partially offset by decreased
professional fees.
Income Tax Expense. Income tax expense decreased
by 58.0% to $0.7 million in the third
quarter of fiscal 2017 from $1.8
million in the prior year period, primarily due to a
decrease in taxable income.
Net Income. As a result of the foregoing, net
income decreased by 60.5% to $2.9
million in the third quarter of fiscal 2017 from
$7.4 million in the prior year
period. Non-GAAP1 net income decreased by 56.9% to
$3.4 million in the third quarter of
fiscal 2017 from $7.9 million in the
prior year period.
Operating Cash Flow. Net operating cash
inflow decreased by 11.6% to $7.8
million in the third quarter of fiscal 2017 from
$8.8 million in the prior year
period. The operating cash inflow was mainly attributable to net
income before non-cash items generated in the third quarter of
fiscal 2017. The decrease in accounts receivable, prepayment and
other current assets, and the increase in amount due to a related
party also contributed to the operating cash inflow. This operating
cash inflow was partially offset by the increase in other
non-current assets, and decrease in deferred revenue.
Cash and Cash Equivalents, Term Deposits, Restricted Cash
and Short-term Investments. Cash and cash equivalents, term
deposits, restricted cash and short-term investments as of
June 30, 2017 increased by 7.8% to
$107.4 million from $99.6 million as of March
31, 2017, mainly due to cash flow of $7.8 million generated from operating activities
in the third quarter of fiscal 2017. This increase was partially
offset by deposit payments for certain strategic investments of
$1.7 million, and capital
expenditures of $0.7 million.
First Nine Months of Fiscal 2017 Financial
Results
Net Revenue. Total net revenue increased by 12.6%
to $89.3 million in the first nine
months of fiscal 2017 from $79.3
million in the first nine months of fiscal 2016. Net revenue
from online education services, books and reference materials, and
other sources contributed 71.1%, 7.7% and 21.2%, respectively, of
total net revenues for the first nine months of fiscal 2017.
Online education services. Net revenue from online
education services was $63.5 million
in the first nine months of fiscal 2017, in-line with $63.5 million in the first nine months of fiscal
2016.
Books and reference materials. Net revenue from books and
reference materials increased by 29.7% to $6.9 million in the first nine months of fiscal
2017 from $5.3 million in the first
nine months of fiscal 2016.
Others. Net revenue from other sources increased by 79.9%
to $18.9 million in the first nine
months of fiscal 2017 from $10.5
million in the first nine months of fiscal 2016.
Cost of Sales. Cost of sales increased by 15.9% to
$40.9 million in the first nine
months of fiscal 2017 from $35.2
million in the first nine months of fiscal 2016.
Non-GAAP1 cost of sales increased by 16.0% to
$40.7 million in the first nine
months of fiscal 2017 from $35.1
million in the first nine months of fiscal 2016.
Gross Profit. Gross profit increased by
9.9% to $48.4 million in the first
nine months of fiscal 2017 from $44.1
million in the prior year period. Non-GAAP1 gross
profit increased by 9.9% to $48.5
million in the first nine months of fiscal 2017 from
$44.2 million in the prior year
period. Gross margin was 54.2% in the first nine months of fiscal
2017, compared with 55.6% in the first nine months of fiscal 2016.
Non-GAAP1 gross margin was 54.4% in the first nine
months of fiscal 2017, compared with 55.7% in the first nine months
of fiscal 2016.
Operating Expenses. Total operating expenses
increased by 30.2% to $39.4 million
in the first nine months of fiscal 2017, from $30.3 million in the prior year period.
Non-GAAP1 total operating expenses increased by 31.9% to
$38.1 million in the first nine
months of fiscal 2017, from $28.9
million in the prior year period.
Selling expenses. Selling expenses increased by 41.8% to
$26.0 million in the first nine
months of fiscal 2017 from $18.3
million in the prior year period. Non-GAAP1
selling expenses increased by 41.9% to $25.9
million in the first nine months of fiscal 2017 from
$18.3 million in the prior year
period.
General and administrative expenses. General and
administrative expenses increased by 12.5% to $13.4 million in the first nine months of fiscal
2017 from $11.9 million in the prior
year period. Non-GAAP1 general and administrative
expenses increased by 14.5% to $12.1
million in the first nine months of fiscal 2017 from
$10.6 million in the prior year
period.
Income Tax Expense. Income tax expense decreased
by 26.5% to $2.6 million in the first
nine months of fiscal 2017 from $3.5
million in the prior year period.
Net Income. As a result of the foregoing, net
income decreased by 35.5% to $9.1
million in the first nine months of fiscal 2017 from
$14.1 million in the prior year
period. Non-GAAP1 net income decreased by 32.4% to
$10.5 million in the first nine
months of fiscal 2017 from $15.6
million in the prior year period.
Operating Cash Flow. Net operating cash
inflow increased by 4.2% to $34.5
million in the first nine months of fiscal 2017 from
$33.1 million in the prior year
period.
Outlook
For the fourth quarter of fiscal 2017, the Company expects to
generate total net revenue in the range of $40.2 million to $42.1 million, representing a
year-over-year increase of approximately 5% to 10%.
For fiscal year 2017, the Company expects to generate total net
revenues in the range of $129.4 million to
$131.3 million, representing year-over-year growth of
approximately 10.1% to 11.7%.
The above guidance reflects the Company's current and
preliminary view, which is subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern time on Thursday, August 24, 2017 (8:00 p.m. Beijing Time on August 24, 2017) to discuss financial results and
answer questions from investors and analysts. Listeners may access
the call by dialing:
US Toll
Free:
|
+1-866-5194-004
|
International:
|
+65-6713-5090
|
Mainland
China:
|
400-620-8038
|
Hong Kong:
|
+852-3018-6771
|
United
Kingdom:
|
+44-203-6214-779
|
Passcode:
|
CDEL or DL
|
A telephone replay will be available two hours after the call
until August 31, 2017 by dialing:
US Toll
Free:
|
+1-855-4525-696
|
International:
|
+61-2-8199-0299
|
Mainland
China:
|
400-632-2162
|
Hong Kong:
|
800-963-117
|
United
Kingdom:
|
0808-234-0072
|
Replay
Passcode:
|
63353422
|
Additionally, a live and archived webcast of the conference call
will be available at http://ir.cdeledu.com.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider
of online education and value-added services for professionals and
corporate clients in China. The
courses offered by the Company through its websites are designed to
help professionals seeking to obtain and maintain professional
licenses and to enhance their job skills through our professional
development courses in China in
the areas of accounting, healthcare, engineering &
construction, and other industries. The Company also offers
professional education courses for participants in the national
judicial examination, online test preparation courses for
self-taught learners pursuing higher education diplomas or degrees,
test preparation courses for university students intending to take
the nationwide graduate school entrance exam, practical accounting
training courses for college students and working professionals, as
well as online language courses and third-party developed online
courses. In addition, the Company provides business services to
corporate clients, including but not limited to tax advisory,
bookkeeping and accounting outsourcing services. For further
information, please visit http://ir.cdeledu.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "may," "should," "potential," "continue," "expect,"
"predict," "anticipate," "future," "intend," "plan," "believe,"
"is/are likely to," "estimate" and similar statements. Among other
things, the outlook for the fourth quarter and full fiscal year
2017 and quotations from management in this announcement, as well
as the Company's strategic and operational plans (in particular,
the anticipated benefits of strategic growth initiatives, including
bundling accounting practical skills training and employment
guidance services; offering bookkeeping services, tax advisory
services and tax training to corporate clients; as well as
acquisition and strategic investments such as the acquisition of
40% equity interest in Beijing Ruida) contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its periodic and annual reports to
the SEC, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: goals and growth strategies; future prospects and market
acceptance of the Company's courses and other products and
services; future business development and results of operations;
projected revenues, profits, earnings and other estimated financial
information; projected enrollment numbers; plans to expand and
enhance courses and other products and services; competition in the
education and test preparation markets; and Chinese laws,
regulations and policies, including those applicable to the
Internet, Internet content providers, the education and
telecommunications industries, mergers and acquisitions, taxation
and foreign exchange.
Further information regarding these and other risks is included
in the Company's annual report on Form 20-F and other documents
filed or furnished with the SEC. All information provided in this
press release is as of the date of this press release. The Company
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth in this press
release is preliminary and subject to adjustments. Adjustments to
the financial statements may be identified when audit work is
performed for the year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial results
presented in accordance with U.S. generally accepted accounting
principles, or GAAP, the Company uses the following measures
defined as non-GAAP financial measures: non-GAAP net income,
operating income, gross profit, cost of sales, selling expenses,
general and administrative expenses, net income margin, operating
margin, gross profit margin and basic and diluted earnings per ADS
and per share. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP
financial measures, please see the table captioned "Reconciliations
of non-GAAP measures to comparable GAAP measures" set forth at the
end of this release.
The Company believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance and liquidity by excluding share-based compensation
expenses. However, non-GAAP financial measures may not be
indicative of the Company's operating performance from a cash
perspective. The Company believes that both management and
investors benefit from these non-GAAP financial measures in
assessing its performance and when planning and forecasting future
periods. These non-GAAP financial measures also facilitate
management's internal comparisons to the Company's historical
performance and liquidity. The Company computes its non-GAAP
financial measures using the same consistent method from quarter to
quarter. The Company believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision making. A limitation of
excluding share-based compensation expenses from the
above-mentioned line items and presenting these non-GAAP measures
is that such charges may continue to be for the foreseeable future
a significant recurring expense in our business. Management
compensates for this limitation by providing specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying table at the end of this release provides more detail
on the reconciliations between GAAP financial measures that are
most directly comparable to non-GAAP financial measures.
Contacts:
China Distance
Education Holdings Limited
Investor Relations
Department
Tel: +86-10-8231-9999
ext1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
DL@tpg-ir.com
|
(Financial Tables on Following Pages)
China Distance
Education Holdings Limited
|
Consolidated
Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
|
|
|
|
|
|
September
30, 2016
|
|
June 30,
2017
|
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
53,677
|
|
68,633
|
|
|
Restricted
cash
|
15,547
|
|
34,207
|
|
|
Short term
investments
|
1,278
|
|
4,573
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$976 and
US$661 as of June 30, 2017 and September 30, 2016,
respectively
|
5,454
|
|
3,883
|
|
|
Inventories
|
971
|
|
1,578
|
|
|
Prepayment and other
current assets
|
5,893
|
|
8,800
|
|
|
Amount due from a
related party
|
208
|
|
75
|
|
|
Deferred tax assets,
current portion
|
1,676
|
|
2,429
|
|
|
Deferred
cost
|
1,118
|
|
1,235
|
|
|
Total
current assets
|
85,822
|
|
125,413
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
13,908
|
|
14,313
|
|
|
Goodwill
|
29,392
|
|
28,913
|
|
|
Long term
investments
|
3,079
|
|
9,342
|
|
|
Other intangible
assets, net
|
11,675
|
|
10,212
|
|
|
Deposit for purchase
of non-current assets
|
1,116
|
|
433
|
|
|
Other non-current
assets
|
3,928
|
|
6,491
|
|
|
Total
non-current assets
|
63,098
|
|
69,704
|
|
|
|
|
|
|
|
|
Total
assets
|
148,920
|
|
195,117
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank borrowings
|
15,551
|
|
29,963
|
|
|
Accrued expenses and
other liabilities (including accrued expenses and other
liabilities of the consolidated VIE without recourse to China
Distance Education
Holdings Limited of US$25,634 and US$26,279 as of June 30, 2017
and
September 30, 2016, respectively)
|
30,564
|
|
30,788
|
|
|
Amount due to a
related party
|
-
|
|
2,920
|
|
|
Income tax payable
(including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$2,911
and
US$3,353 as of June 30, 2017 and September 30, 2016,
respectively)
|
5,308
|
|
4,444
|
|
|
Deferred revenue
(including deferred revenue of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$57,978
and
US$35,437 as of June 30, 2017 and September 30, 2016,
respectively)
|
36,332
|
|
58,864
|
|
|
Refundable fees
(including refundable fees of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$859 and
US$862 as
of June 30, 2017 and September 30, 2016, respectively)
|
862
|
|
859
|
|
|
Total
current liabilities
|
88,617
|
|
127,838
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities, non-current portion
|
3,831
|
|
3,990
|
|
|
Total
non-current liabilities
|
3,831
|
|
3,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
92,448
|
|
131,828
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share at June 30, 2017 and September
30, 2016, respectively; Authorized –500,000,000 shares at June 30,
2017 and
September 30, 2016, respectively; Issued and outstanding
–131,854,773 and
131,729,773 shares at June 30, 2017 and September 30, 2016,
respectively)
|
13
|
|
13
|
|
|
Additional paid-in
capital
|
15,697
|
|
18,394
|
|
|
Accumulated other
comprehensive loss
|
(3,418)
|
|
(5,640)
|
|
|
Retained
Earnings
|
32,944
|
|
27,175
|
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
45,236
|
|
39,942
|
|
|
Noncontrolling
interest
|
11,236
|
|
23,347
|
|
|
Total
equity
|
56,472
|
|
63,289
|
|
|
Total
liabilities and equity
|
148,920
|
|
195,117
|
|
|
|
|
|
|
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Three Months
Ended June 30,
|
|
2016
|
|
2017
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
25,279
|
|
26,482
|
|
Books and reference
materials
|
1,942
|
|
3,970
|
|
Others
|
3,573
|
|
4,987
|
|
- Sale of learning
simulation software
|
1,126
|
|
1,224
|
|
-
Business start-up training services
|
343
|
|
1,372
|
|
-
Others
|
2,104
|
|
2,391
|
|
Total
net revenues
|
30,794
|
|
35,439
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(11,548)
|
|
(12,965)
|
|
Cost of tangible
goods sold
|
(1,670)
|
|
(3,285)
|
|
Total
cost of sales
|
(13,218)
|
|
(16,250)
|
|
|
|
|
|
Gross
profit
|
17,576
|
|
19,189
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(7,674)
|
|
(10,388)
|
|
General and
administrative expenses
|
(4,080)
|
|
(4,252)
|
|
Total
operating expenses
|
(11,754)
|
|
(14,640)
|
Other operating
income
|
163
|
|
135
|
|
|
|
|
|
Operating
income
|
5,985
|
|
4,684
|
|
|
|
|
Interest
income
|
370
|
|
431
|
Interest
expense
|
(136)
|
|
(165)
|
Exchange
gain
|
2,778
|
|
(1,213)
|
|
|
|
|
|
Income
before income taxes
|
8,997
|
|
3,737
|
Less: Income tax
expense
|
(1,779)
|
|
(747)
|
Less: Loss from
equity method investment
|
-
|
|
(40)
|
|
|
|
|
Net
income
|
7,218
|
|
2,950
|
Net (income) loss
attributable to noncontrolling interest
|
196
|
|
(23)
|
Net
income attributable to China Distance Education
Holdings Limited
|
7,414
|
|
2,927
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
|
Basic
|
0.055
|
|
0.022
|
|
Diluted
|
0.055
|
|
0.022
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
|
Basic
|
0.219
|
|
0.089
|
|
Diluted
|
0.218
|
|
0.089
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
135,084,505
|
|
131,458,587
|
|
Diluted
|
135,942,921
|
|
131,801,187
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Nine Months
Ended June 30,
|
|
2016
|
|
2017
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
63,468
|
|
63,457
|
|
Books and reference
materials
|
5,312
|
|
6,887
|
|
Others
|
10,528
|
|
18,936
|
|
- Sale of learning
simulation software
|
1,126
|
|
8,592
|
|
-
Business start-up training services
|
3,399
|
|
4,121
|
|
-
Others
|
6,003
|
|
6,223
|
|
Total
net revenues
|
79,308
|
|
89,280
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(31,960)
|
|
(36,027)
|
|
Cost of tangible
goods sold
|
(3,288)
|
|
(4,830)
|
|
Total
cost of sales
|
(35,248)
|
|
(40,857)
|
|
|
|
|
|
Gross
profit
|
44,060
|
|
48,423
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(18,342)
|
|
(26,004)
|
|
General and
administrative expenses
|
(11,937)
|
|
(13,431)
|
|
Total operating
expenses
|
(30,279)
|
|
(39,435)
|
Other operating
income
|
361
|
|
1,585
|
|
|
|
|
|
Operating
income
|
14,142
|
|
10,573
|
|
|
|
|
Interest
income
|
1,764
|
|
1,156
|
Interest
expense
|
(436)
|
|
(434)
|
Exchange
gain
|
2,219
|
|
1,556
|
|
|
|
|
|
Income
before income taxes
|
17,689
|
|
12,851
|
Less: Income tax
expense
|
(3,497)
|
|
(2,569)
|
Less: Loss from
equity method investment
|
-
|
|
(118)
|
|
|
|
|
Net
income
|
14,192
|
|
10,164
|
Net income
attributable to noncontrolling interest
|
(127)
|
|
(1,095)
|
Net
income attributable to China Distance Education
Holdings Limited
|
14,065
|
|
9,069
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
|
Basic
|
0.101
|
|
0.069
|
|
Diluted
|
0.101
|
|
0.068
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
|
Basic
|
0.406
|
|
0.275
|
|
Diluted
|
0.403
|
|
0.273
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
138,127,626
|
|
131,403,456
|
|
Diluted
|
139,748,542
|
|
132,853,269
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
|
2016
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
13,218
|
|
16,250
|
Share-based
compensation expense in cost of sales
|
|
40
|
|
40
|
Non-GAAP cost of
sales
|
|
13,178
|
|
16,210
|
|
|
|
|
|
Selling
expenses
|
|
7,674
|
|
10,388
|
Share-based
compensation expense in selling expenses
|
|
21
|
|
21
|
Non-GAAP selling
expenses
|
|
7,653
|
|
10,367
|
|
|
|
|
|
General and
administrative expenses
|
|
4,080
|
|
4,252
|
Share-based
compensation expense in general and administrative
expenses
|
|
440
|
|
422
|
Non-GAAP general and
administrative expenses
|
|
3,640
|
|
3,830
|
|
|
|
|
|
Gross
profit
|
|
17,576
|
|
19,189
|
Share-based
compensation expenses
|
|
40
|
|
40
|
Non-GAAP gross
profit
|
|
17,616
|
|
19,229
|
|
|
|
|
|
Gross profit
margin
|
|
57.1%
|
|
54.1%
|
Non-GAAP gross profit
margin
|
|
57.2%
|
|
54.3%
|
|
|
|
|
|
Operating
income
|
|
5,985
|
|
4,684
|
Share-based
compensation expenses
|
|
501
|
|
483
|
Non-GAAP operating
income
|
|
6,486
|
|
5,167
|
|
|
|
|
|
Operating
margin
|
|
19.4%
|
|
13.2%
|
Non-GAAP operating
margin
|
|
21.1%
|
|
14.6%
|
|
|
|
|
|
Net income
|
|
7,414
|
|
2,927
|
Share-based
compensation expense
|
|
501
|
|
483
|
Non-GAAP net
income
|
|
7,915
|
|
3,410
|
|
|
|
|
|
Net income
margin
|
|
24.1%
|
|
8.3%
|
Non-GAAP net income
margin
|
|
25.7%
|
|
9.6%
|
|
|
|
|
|
Net income per
share—basic
|
|
0.055
|
|
0.022
|
Net income per
share—diluted
|
|
0.055
|
|
0.022
|
Non-GAAP net income
per share—basic
|
|
0.059
|
|
0.026
|
Non-GAAP net income
per share—diluted
|
|
0.058
|
|
0.026
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.219
|
|
0.089
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.218
|
|
0.089
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—basic (note
1)
|
|
0.234
|
|
0.104
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—diluted (note
1)
|
|
0.233
|
|
0.103
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
135,084,505
|
|
131,458,587
|
Weighted average
shares used in calculating diluted net income per share
|
|
135,942,921
|
|
131,801,187
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
135,084,505
|
|
131,458,587
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
135,942,921
|
|
131,801,187
|
|
|
|
|
|
|
|
Note 1: Each ADS
represents four ordinary shares.
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Nine Months
Ended June 30,
|
|
|
2016
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
35,248
|
|
40,857
|
Share-based
compensation expense in cost of sales
|
|
122
|
|
121
|
Non-GAAP cost of
sales
|
|
35,126
|
|
40,736
|
|
|
|
|
|
Selling
expenses
|
|
18,342
|
|
26,004
|
Share-based
compensation expense in selling expenses
|
|
63
|
|
63
|
Non-GAAP selling
expenses
|
|
18,279
|
|
25,941
|
|
|
|
|
|
General and
administrative expenses
|
|
11,937
|
|
13,431
|
Share-based
compensation expense in general and administrative
expenses
|
|
1,328
|
|
1,281
|
Non-GAAP general and
administrative expenses
|
|
10,609
|
|
12,150
|
|
|
|
|
|
Gross
profit
|
|
44,060
|
|
48,423
|
Share-based
compensation expenses
|
|
122
|
|
121
|
Non-GAAP gross
profit
|
|
44,182
|
|
48,544
|
|
|
|
|
|
Gross profit
margin
|
|
55.6%
|
|
54.2%
|
Non-GAAP gross profit
margin
|
|
55.7%
|
|
54.4%
|
|
|
|
|
|
Operating
income
|
|
14,142
|
|
10,573
|
Share-based
compensation expenses
|
|
1,513
|
|
1,465
|
Non-GAAP operating
income
|
|
15,655
|
|
12,038
|
|
|
|
|
|
Operating
margin
|
|
17.8%
|
|
11.8%
|
Non-GAAP operating
margin
|
|
19.7%
|
|
13.5%
|
|
|
|
|
|
Net income
|
|
14,065
|
|
9,069
|
Share-based
compensation expense
|
|
1,513
|
|
1,465
|
Non-GAAP net
income
|
|
15,578
|
|
10,534
|
|
|
|
|
|
Net income
margin
|
|
17.7%
|
|
10.2%
|
Non-GAAP net income
margin
|
|
19.6%
|
|
11.8%
|
|
|
|
|
|
Net income per
share—basic
|
|
0.101
|
|
0.069
|
Net income per
share—diluted
|
|
0.101
|
|
0.068
|
Non-GAAP net income
per share—basic
|
|
0.113
|
|
0.080
|
Non-GAAP net income
per share—diluted
|
|
0.111
|
|
0.079
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.406
|
|
0.275
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.403
|
|
0.273
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—basic (note
1)
|
|
0.451
|
|
0.321
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders—diluted (note
1)
|
|
0.446
|
|
0.317
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
138,127,626
|
|
131,403,456
|
Weighted average
shares used in calculating diluted net income per share
|
|
139,748,542
|
|
132,853,269
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
138,127,626
|
|
131,403,456
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
139,748,542
|
|
132,853,269
|
|
|
|
|
|
|
|
Note 1: Each ADS
represents four ordinary shares
|
View original
content:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-financial-results-for-third-quarter-fiscal-year-2017-300508375.html
SOURCE China Distance Education Holdings Limited