BEIJING, Aug. 13, 2019 /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 2019 ended
June 30, 2019.
Third Quarter Fiscal 2019 Financial and Operational
Highlights
- Net revenue increased by 30.2% to $61.7
million from $47.4 million in
the prior year period.
- Total course enrollments were 734,800, an increase of 29.2%
from the third quarter of fiscal 2018.
- Cash receipts from online course registration were $50.4 million, a 30.7% increase from the third
quarter of fiscal 2018.
- Gross profit increased by 36.5% to $31.2
million from $22.8 million in
the prior year period.
- Non-GAAP[1] gross
profit increased by 36.3% to $31.2
million from $22.9 million in
the prior year period.
- Gross margin was 50.5%, compared with 48.2% in the prior year
period. Non-GAAP[1]
gross margin was 50.5%, compared with 48.2% in the prior year
period.
- Operating income increased by 527.2% to $9.9 million from $1.6
million in the prior year period.
- Non-GAAP[1]
operating income increased by 371.7% to $10.4 million from $2.2
million in the prior year period.
- Net income increased by 84.1% to $9.4
million from $5.1 million in
the prior year period.
- Non-GAAP[1] net
income increased by 72.9% to $10.0
million from $5.8 million in
the prior year period.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.282 and $0.281, compared with basic and diluted net
income per ADS of $0.154 for the
third quarter of fiscal 2018. Each ADS represents four ordinary
shares.
- Basic and diluted non-GAAP[1] net income per ADS were
$0.299 and $0.296, compared with basic and diluted
non-GAAP[1] net income
per ADS of $0.174 and $0.173 for the third quarter of fiscal 2018.
- Cash flow from operations increased by 41.7% to $17.6 million from $12.4
million in the third quarter of fiscal 2018.
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "The second half of fiscal year 2019 commenced
with a strong third quarter performance, with third quarter revenue
and net income growth of 30.2% and 84.1% year-over-year,
respectively. Third quarter revenue growth was driven primarily by
our industry-leading accounting vertical, a significant increase in
revenue from the sale of learning simulation software, and revenue
from the legal vertical generated by Beijing Ruida. Total
enrollment growth was 29.2% year-over-year in the third quarter,
primarily due to significant enrollment growth in accounting and
engineering & construction (E&C) continuing education
courses. Cash receipts from online course registration grew 30.7%
year-over-year in the third quarter, or 39.8% year-over-year on a
constant currency basis, due to the continued popularity of our
longer duration premium and elite classes."
Mr. Zhu concluded, "Our third quarter results show that our
multi-pronged growth strategy is bearing fruit. All three core
verticals of accounting, healthcare, and E&C, posted strong
year-over-year cash receipt growth in the third quarter,
demonstrating the broad appeal of our course offerings across
industry verticals. Underpinning the growth of our industry
verticals is the comprehensive life-long learning ecosystem we have
built and continue to enhance. Our accounting vertical, for
example, now encompasses a full complement of services, including
professional certification exam preparation and continuing
education services; practical accounting training and employment
guidance services; accounting and related advisory services
to corporate clients; and books and
reference materials. We are focused on developing similar
ecosystems across our other industry verticals, such as healthcare,
E&C, and legal, in an effort to create additional avenues of
growth and expand our overall growth opportunities."
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, added, "We returned to profitability in
the third quarter as anticipated, and recorded non-GAAP operating
margin of 16.8%, a significant year-over-year improvement due to
strong third quarter revenue growth, coupled with the successful
implementation of certain expense control measures and leverage of
our cost structure."
Mr. Marostica, continued, "With our
fourth fiscal quarter well underway, we remain steadfast in
continuing to balance growth with a keen focus on profitability and
prudent cost control."
Third Quarter Fiscal 2019 Financial Results
Net Revenue. Total net revenue increased by 30.2%
to $61.7 million in the third quarter
of fiscal 2019 from $47.4 million in
the third quarter of fiscal 2018. Net revenue from online education
services, books and reference materials, and other sources
contributed 70.5%, 15.9% and 13.6%, respectively, of total net
revenues for the third quarter of fiscal 2019.
Online education services. Net revenue from online
education services increased by 25.6% to $43.5 million in the third quarter of fiscal 2019
from $34.7 million in the third
quarter of fiscal 2018, mainly due to revenue growth from the
accounting and healthcare verticals. Revenue from the legal
vertical generated by Beijing Ruida also contributed to the
growth.
Books and reference materials. Net revenue from books and
reference materials increased by 84.7% to $9.8 million in the third quarter of fiscal 2019
from $5.3 million in the third
quarter of fiscal 2018, mainly due to book sale revenue from the
Legal Professional Qualification Examination contributed by Beijing
Ruida.
Others. Net revenue from other sources increased by 12.8%
to $8.4 million in the third quarter
of fiscal 2019 from $7.4 million in
the third quarter of fiscal 2018, primarily due to offline training
revenue from the Legal Professional Qualification Examination
contributed by Beijing Ruida. A significant increase in revenue
from the sale of learning simulation software also contributed to
the growth. This increase was partially offset by the decrease in
revenue from the "Tax School Program" which the Company disposed in
the first quarter of fiscal 2019.
Cost of Sales. Cost of sales increased by 24.4% to
$30.6 million in the third quarter of
fiscal 2019 from $24.6 million in the
third quarter of fiscal 2018. Non-GAAP[1] cost of sales increased by 24.6%
to $30.6 million in the third quarter
of fiscal 2019 from $24.5 million in
the third quarter of fiscal 2018. The increase was mainly due to
expenses associated with Beijing Ruida, including amortization
expenses of intangibles arising from its acquisition of
$1.7 million, cost of books and
reference materials, and lecture fees. This increase was partially
offset by the decrease in salaries and related expenses, and rental
and related expenses.
Gross Profit and Gross Margin. Gross profit
was $31.2 million in the third
quarter of fiscal 2019, up 36.5% from $22.8
million in the prior year period. Non-GAAP[1] gross profit was $31.2 million, increasing by 36.3% from
$22.9 million in the prior year
period. Gross margin was 50.5% in the third quarter of fiscal 2019,
compared with 48.2% in the third quarter of fiscal 2018.
Non-GAAP[1] gross
margin was 50.5% in the third quarter of fiscal 2019, compared with
48.2% in the third quarter of fiscal 2018.
Operating Expenses. Total operating expenses
increased by 24.5% to $22.0 million
in the third quarter of fiscal 2019, from $17.7 million in the prior year period.
Non-GAAP[1] total
operating expenses increased by 25.8% to $21.5 million in the third quarter of fiscal
2019, from $17.1 million in the prior
year period.
Selling expenses. Selling expenses increased by 31.4% to
$17.0 million in the third quarter of
fiscal 2019 from $13.0 million in the
prior year period. Non-GAAP[1] selling expenses increased by
31.6% to $17.0 million in the third
quarter of fiscal 2019 from $12.9
million in the prior year period. The increase was primarily
driven by higher advertising and promotional expenses, expenses
associated with Beijing Ruida, the increase in rental and related
expenses and other miscellaneous selling expenses. This increase
was partially offset by the decrease in commission to agents.
General and administrative expenses. General and
administrative expenses increased by 5.3% to $4.9 million in the third quarter of fiscal 2019
from $4.7 million in the prior year
period. Non-GAAP[1]
general and administrative expenses increased by 7.4% to
$4.4 million in the third quarter of
fiscal 2019 from $4.1 million in the
prior year period. The increase was mainly due to the expenses
associated with Beijing Ruida.
Income Tax Expense. Income tax expense increased
by 82.6% to $2.5 million in the third
quarter of fiscal 2019 from $1.3
million in the prior year period, primarily due to an
increase in taxable income.
Net Income. As a result of the foregoing, net
income was $9.4 million in the third
quarter of fiscal 2019, compared with $5.1
million in the prior year period. Non-GAAP[1] net income was $10.0 million in the third quarter of fiscal
2019, compared with $5.8 million in
the prior year period.
Operating Cash Flow. Net operating cash
inflow increased by 41.7% to $17.6
million in the third quarter of fiscal 2019 from
$12.4 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 2019. The increase in accrued expenses and other
liabilities, income tax payable, and deferred revenue generated
from the Company's professional education services segment also
contributed to the operating cash inflow. The operating cash inflow
was partially offset by the increase in accounts receivable,
inventories, prepayments and other current assets, and other
non-current assets.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments. Cash and cash equivalents, restricted cash and
short-term investments as of June 30,
2019 decreased by 4.0% to $124.9
million from $130.1 million as
of March 31, 2019, mainly due to (i)
the payment of contingent consideration for the acquisition of 11%
equity interest, and purchase consideration for further acquisition
of 9% equity interest in Beijing Ruida for a total of $6.6 million, (ii) the repayment of loans of
$13.1 million and (iii) the capital
expenditure of $1.7 million. The
decrease was partially offset by the operating cash inflow
generated in the third quarter of fiscal 2019 and the proceeds from
disposal of an investment, Beijing Yousian Technology Co., Ltd, of
$3.6 million.
First Nine Months of Fiscal 2019 Financial Results
Net Revenue. Total net revenue increased by 26.6%
to $143.1 million in the first nine
months of fiscal 2019 from $113.0
million in the first nine months of fiscal 2018. Net revenue
from online education services, books and reference materials, and
other sources contributed 67.4%, 15.1% and 17.5%, respectively, of
total net revenues for the first nine months of fiscal 2019.
Online education services. Net revenue from online
education services increased by 19.8% to $96.5 million in the first nine months of fiscal
2019 from $80.5 million in the first
nine months of fiscal 2018.
Books and reference materials. Net revenue from books and
reference materials increased by 138.0% to $21.6 million in the first nine months of fiscal
2019 from $9.1 million in the first
nine months of fiscal 2018.
Others. Net revenue from other sources increased by 6.7%
to $25.0 million in the first nine
months of fiscal 2019 from $23.5
million in the first nine months of fiscal 2018.
Cost of Sales. Cost of sales increased by 28.9% to
$79.5 million in the first nine
months of fiscal 2019 from $61.6
million in the first nine months of fiscal 2018.
Non-GAAP[1] cost of
sales increased by 29.1% to $79.4
million in the first nine months of fiscal 2019 from
$61.5 million in the first nine
months of fiscal 2018.
Gross Profit and Gross Margin. Gross profit
was $63.7 million in the first nine
months of fiscal 2019, up 23.9% from $51.4
million in the prior year period. Non-GAAP[1] gross profit was $63.7 million, increasing by 23.6% from
$51.5 million in the prior year
period. Gross margin was 44.5% in the first nine months of fiscal
2019, compared with 45.5% in the first nine months of fiscal 2018.
Non-GAAP[1] gross
margin was 44.5% in the first nine months of fiscal 2019, compared
with 45.6% in the first nine months of fiscal 2018.
Operating Expenses. Total operating expenses
increased by 37.7% to $63.2 million
in the first nine months of fiscal 2019 from $45.9 million in the prior year period.
Non-GAAP[1] total
operating expenses increased by 39.2% to $61.7 million in the first nine months of fiscal
2019 from $44.3 million in the prior
year period.
Selling expenses. Selling expenses increased by 49.0% to
$45.3 million in the first nine
months of fiscal 2019 from $30.4
million in the prior year period. Non-GAAP[1] selling expenses increased by
49.2% to $45.3 million in the first
nine months of fiscal 2019 from $30.4
million in the prior year period.
General and administrative expenses. General and
administrative expenses increased by 15.5% to $17.9 million in the first nine months of fiscal
2019 from $15.5 million in the prior
year period. Non-GAAP[1]
general and administrative expenses increased by 17.3% to
$16.4 million in the first nine
months of fiscal 2019 from $14.0
million in the prior year period.
Change in fair value of contingent consideration
payable. Change in fair value of contingent consideration
payable was attributable to the increase or decrease in fair value
of contingent consideration with respect to the Company's equity
interest investment in Beijing Ruida.
Gain from Deconsolidation of a Subsidiary. Gain
from deconsolidation of a subsidiary of $6.9
million related to the gain on the disposal of 60% equity
interest, and fair value change of remaining 40% equity interest,
in Champion Tax Advisory or "Tax School Program."
Income Tax Expense. Income tax expense increased
by 253.5% to $2.1 million in the
first nine months of fiscal 2019 from $0.6
million in the prior year period.
Net Income. As a result of the foregoing, net
income was $7.5 million in the first
nine months of fiscal 2019, compared with net income of
$2.0 million in the prior year
period. Non-GAAP[1] net
income was $9.0 million in the first
nine months of fiscal 2019, compared with non-GAAP[1] net income of $3.6 million in the prior year period.
Operating Cash Flow. Net operating cash
inflow increased by 76.5% to $61.9
million in the first nine months of fiscal 2019 from
$35.1 million in the prior year
period.
Outlook
For the fourth quarter of fiscal 2019, the Company expects to
generate total net revenue in the range of $63.3 million to $66.5
million, representing year-over-year growth of approximately
18% to 24%.
For fiscal year 2019, the Company expects to generate total net
revenues in the range of $206.4
million to $209.6 million,
representing year-over-year growth of approximately 23.8% to 25.8%.
The Company's prior fiscal 2019 full-year total net revenue
guidance range was $210.0 million to
$218.3 million.
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 Wednesday, August 14,
2019 (8:00 p.m. Beijing Time on
Wednesday, August 14, 2019) to
discuss financial results and answer questions from investors and
analysts. Listeners may access the call by dialing:
US Toll Free: +1-866-519-4004
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 21, 2019 by dialing:
US Toll Free: +1-855-452-5696
International: +61-2-8199-0299
Mainland China: 400-632-2162
Hong Kong: 800-963-117
United Kingdom: 0808-234-0072
Replay Passcode: 9789216
Additionally, a live and archived webcast of the conference call
will be available at http://ir.cdeledu.com.
[1]
|
For more information about the
non-GAAP financial measures contained in this press release, please
see "Use of Non-GAAP Financial Measures" below.
|
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, legal and other industries. The Company also offers
online test preparation courses for self-taught learners pursuing
higher education diplomas or degrees, practical accounting training
courses for college students and working professionals, as well as
third-party developed online courses. In addition, the Company
provides business services to corporate clients, including but not
limited to tax advisory 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
2019 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
the promotion of the Company's lifelong learning ecosystem, as well
as cost control) 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: our goals and growth strategies; future prospects and
market acceptance of our courses and other products and services;
our future business development and results of operations;
projected revenues, profits, earnings and other estimated financial
information; projected enrollment numbers; our plans to expand and
enhance our 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 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 items 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:
In China:
China Distance Education Holdings Limited
Jiao Jiao
Tel: +86-10-8231-9999 ext. 1826
Email: IR@cdeledu.com
The Piacente Group, Inc.
Xi Zhang
Tel: +86-10-6508-0677
E-mail: dl@tpg-ir.com
In the United
States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1 212-481-2050
Email: dl@tpg-ir.com
China Distance
Education Holdings Limited
|
Unaudited
Condensed Consolidated Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
|
|
|
|
|
|
September
30, 2018
|
|
June 30,
2019
|
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
30,826
|
|
61,918
|
|
|
Restricted
cash
|
51,736
|
|
39,355
|
|
|
Short term
investments
|
17,073
|
|
23,578
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$1,417 and
US$1,342 as of June 30, 2019 and September 30,
2018, respectively
|
7,280
|
|
7,067
|
|
|
Inventories
|
2,782
|
|
4,416
|
|
|
Prepayment and other
current assets
|
17,054
|
|
25,013
|
|
|
Deferred
cost
|
1,125
|
|
1,608
|
|
|
Total
current assets
|
127,876
|
|
162,955
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
27,972
|
|
39,016
|
|
|
Goodwill
|
79,516
|
|
79,463
|
|
|
Long term
investments
|
33,837
|
|
32,822
|
|
|
Other intangible
assets, net
|
39,500
|
|
33,471
|
|
|
Deposit for purchase
of non-current assets
|
8,126
|
|
9,812
|
|
|
Deferred tax
assets – non-current portion
|
5,711
|
|
4,583
|
|
|
Other non-current
assets
|
6,387
|
|
11,420
|
|
|
Total
non-current assets
|
201,049
|
|
210,587
|
|
|
|
|
|
|
|
|
Total
assets
|
328,925
|
|
373,542
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
borrowings
|
50,975
|
|
44,458
|
|
|
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$33,327 and US$34,993 as of
June 30, 2019 and September 30,
2018, respectively)
|
42,141
|
|
36,717
|
|
|
Income tax payable
(including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of
US$6,941 and US$$4,847 as of June 30, 2019 and September 30,
2018, respectively)
|
9,293
|
|
8,621
|
|
|
Deferred revenue -
current portion (including deferred revenue of the consolidated VIE
without recourse to China Distance Education Holdings Limited of
US$105,294 and US$77,299 as of June 30, 2019 and September 30,
2018, respectively)
|
78,194
|
|
106,099
|
|
|
Refundable fees -
current portion (including refundable fees of the consolidated VIE
without recourse to China Distance Education Holdings Limited of
US$414 and US$13,837 as of June 30, 2019 and September 30,
2018, respectively)
|
13,837
|
|
414
|
|
|
Total
current liabilities
|
194,440
|
|
196,309
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred revenue -
non-current portion (including deferred revenue of the consolidated
VIE without recourse to China Distance Education Holdings Limited
of US$34,286 and nil as of June 30, 2019 and September 30,
2018, respectively)
|
-
|
|
34,286
|
|
|
Refundable fees -
non-current portion (including refundable fees of the consolidated
VIE without recourse to China Distance Education Holdings Limited
of US$2,690 and nil as of June 30, 2019 and September 30,
2018, respectively)
|
-
|
|
2,690
|
|
|
Deferred tax
liabilities- non-current portion
|
12,693
|
|
11,287
|
|
|
Long-term bank
borrowing
|
12,027
|
|
329
|
|
|
Total
non-current liabilities
|
24,720
|
|
48,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
219,160
|
|
244,901
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share; 500,000,000
shares authorized; 134,212,357 and 133,275,521
shares issued and outstanding at June 30, 2019 and
September 30, 2018, respectively)
|
13
|
|
13
|
|
|
Additional paid-in
capital
|
21,557
|
|
23,100
|
|
|
Accumulated other
comprehensive loss
|
(7,013)
|
|
(6,223)
|
|
|
Retained
Earnings
|
29,717
|
|
46,899
|
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
44,274
|
|
63,789
|
|
|
Noncontrolling
interest
|
65,491
|
|
64,852
|
|
|
Total
equity
|
109,765
|
|
128,641
|
|
|
Total
liabilities and equity
|
328,925
|
|
373,542
|
|
|
|
|
|
|
|
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,
|
|
2018
|
|
2019
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
34,658
|
|
43,529
|
|
Books and reference
materials
|
5,321
|
|
9,826
|
|
Others
|
7,437
|
|
8,392
|
|
Sale of learning
simulation software
|
1,703
|
|
2,665
|
|
- Business
start-up training services
|
809
|
|
886
|
|
-
Others
|
4,925
|
|
4,841
|
|
Total
net revenues
|
47,416
|
|
61,747
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(20,250)
|
|
(20,836)
|
|
Cost of tangible
goods sold
|
(4,333)
|
|
(9,735)
|
|
Total
cost of sales
|
(24,583)
|
|
(30,571)
|
|
|
|
|
|
Gross
profit
|
22,833
|
|
31,176
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(12,967)
|
|
(17,043)
|
|
General and
administrative expenses
|
(4,698)
|
|
(4,947)
|
|
Total
operating expenses
|
(17,665)
|
|
(21,990)
|
Change in fair value
of contingent consideration payable
|
(4,420)
|
|
-
|
Other operating
income
|
823
|
|
665
|
|
|
|
|
|
Operating income
|
1,571
|
|
9,851
|
|
|
|
|
Interest
income
|
682
|
|
526
|
Interest
expense
|
(906)
|
|
(703)
|
Gain from disposal of
an investment
|
-
|
|
318
|
Exchange
gain
|
4,511
|
|
1,996
|
|
|
|
|
|
Income
before income taxes
|
5,858
|
|
11,988
|
Income tax
expense
|
(1,347)
|
|
(2,460)
|
Loss from equity
method investments
|
(107)
|
|
(656)
|
|
|
|
|
Net
income
|
4,404
|
|
8,872
|
Net loss
attributable to noncontrolling interest
|
727
|
|
575
|
Net
income attributable to China Distance Education
Holdings Limited
|
5,131
|
|
9,447
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.039
|
|
0.070
|
|
Diluted
|
0.038
|
|
0.070
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.154
|
|
0.282
|
|
Diluted
|
0.154
|
|
0.281
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
132,522,733
|
|
133,037,866
|
|
Diluted
|
133,392,776
|
|
134,342,150
|
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,
|
|
2018
|
|
2019
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
80,487
|
|
96,450
|
|
Books and reference
materials
|
9,088
|
|
21,632
|
|
Others
|
23,467
|
|
25,049
|
|
- Sale of
learning simulation software
|
8,602
|
|
9,630
|
|
- Business
start-up training services
|
2,858
|
|
2,258
|
|
-
Others
|
12,007
|
|
13,161
|
|
Total
net revenues
|
113,042
|
|
143,131
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(54,138)
|
|
(62,461)
|
|
Cost of tangible
goods sold
|
(7,505)
|
|
(16,997)
|
|
Total
cost of sales
|
(61,643)
|
|
(79,458)
|
|
|
|
|
|
Gross
profit
|
51,399
|
|
63,673
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(30,430)
|
|
(45,327)
|
|
General and
administrative expenses
|
(15,459)
|
|
(17,855)
|
|
Total operating
expenses
|
(45,889)
|
|
(63,182)
|
Change in fair value
of contingent consideration payable
|
(3,867)
|
|
695
|
Other operating
income
|
2,125
|
|
2,434
|
|
|
|
|
|
Operating income
|
3,768
|
|
3,620
|
|
|
|
|
Interest
income
|
1,805
|
|
1,714
|
Interest
expense
|
(2,522)
|
|
(2,294)
|
Gain from disposal of
an investment
|
-
|
|
318
|
Gain from
deconsolidation of a subsidiary
|
-
|
|
6,869
|
Exchange loss
|
(496)
|
|
(104)
|
|
|
|
|
|
Income
before income taxes
|
2,555
|
|
10,123
|
Income tax
expense
|
(588)
|
|
(2,077)
|
Loss from equity method
investments
|
(151)
|
|
(1,019)
|
|
|
|
|
Net
income
|
1,816
|
|
7,027
|
Net
loss attributable to noncontrolling
interest
|
144
|
|
457
|
Net
income attributable to China Distance Education
Holdings Limited
|
1,960
|
|
7,484
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.015
|
|
0.056
|
|
Diluted
|
0.015
|
|
0.056
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.059
|
|
0.224
|
|
Diluted
|
0.059
|
|
0.223
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
132,197,650
|
|
132,946,829
|
|
Diluted
|
133,006,241
|
|
134,072,148
|
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,
|
|
|
2018
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
24,583
|
|
30,571
|
Share-based
compensation expense in cost of sales
|
|
45
|
|
-
|
Non-GAAP cost of
sales
|
|
24,538
|
|
30,571
|
|
|
|
|
|
Selling
expenses
|
|
12,967
|
|
17,043
|
Share-based
compensation expense in selling expenses
|
|
20
|
|
-
|
Non-GAAP selling
expenses
|
|
12,947
|
|
17,043
|
|
|
|
|
|
General and
administrative expenses
|
|
4,698
|
|
4,947
|
Share-based
compensation expense in general and administrative
expenses
|
|
559
|
|
503
|
Non-GAAP general and
administrative expenses
|
|
4,139
|
|
4,444
|
|
|
|
|
|
Gross
profit
|
|
22,833
|
|
31,176
|
Share-based
compensation expenses
|
|
45
|
|
-
|
Non-GAAP gross
profit
|
|
22,878
|
|
31,176
|
|
|
|
|
|
Gross profit
margin
|
|
48.2%
|
|
50.5%
|
Non-GAAP gross profit
margin
|
|
48.2%
|
|
50.5%
|
|
|
|
|
|
Operating
income
|
|
1,571
|
|
9,851
|
Share-based
compensation expenses
|
|
624
|
|
503
|
Non-GAAP operating
income
|
|
2,195
|
|
10,354
|
|
|
|
|
|
Operating
margin
|
|
3.3%
|
|
16.0%
|
Non-GAAP operating
margin
|
|
4.6%
|
|
16.8%
|
|
|
|
|
|
Net income
|
|
5,131
|
|
9,447
|
Share-based
compensation expense
|
|
624
|
|
503
|
Non-GAAP net
income
|
|
5,755
|
|
9,950
|
|
|
|
|
|
Net income
margin
|
|
10.8%
|
|
15.3%
|
Non-GAAP net income
margin
|
|
12.1%
|
|
16.1%
|
|
|
|
|
|
Net income per
share—basic
|
|
0.039
|
|
0.070
|
Net income per
share—diluted
|
|
0.038
|
|
0.070
|
Non-GAAP net income
per share—basic
|
|
0.043
|
|
0.075
|
Non-GAAP
net income per share—diluted
|
|
0.043
|
|
0.074
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.154
|
|
0.282
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.154
|
|
0.281
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.174
|
|
0.299
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.173
|
|
0.296
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
132,522,733
|
|
133,037,866
|
Weighted average
shares used in calculating diluted net income per share
|
|
133,392,776
|
|
134,342,150
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
132,522,733
|
|
133,037,866
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
133,392,776
|
|
134,342,150
|
|
|
|
|
|
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,
|
|
|
2018
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
61,643
|
|
79,458
|
Share-based
compensation expense in cost of sales
|
|
116
|
|
23
|
Non-GAAP cost of
sales
|
|
61,527
|
|
79,435
|
|
|
|
|
|
Selling
expenses
|
|
30,430
|
|
45,327
|
Share-based
compensation expense in selling expenses
|
|
60
|
|
10
|
Non-GAAP selling
expenses
|
|
30,370
|
|
45,317
|
|
|
|
|
|
General and
administrative expenses
|
|
15,459
|
|
17,855
|
Share-based
compensation expense in general and administrative
expenses
|
|
1,505
|
|
1,482
|
Non-GAAP general and
administrative expenses
|
|
13,954
|
|
16,373
|
|
|
|
|
|
Gross
profit
|
|
51,399
|
|
63,673
|
Share-based
compensation expenses
|
|
116
|
|
23
|
Non-GAAP gross
profit
|
|
51,515
|
|
63,696
|
|
|
|
|
|
Gross profit
margin
|
|
45.5%
|
|
44.5%
|
Non-GAAP gross profit
margin
|
|
45.6%
|
|
44.5%
|
|
|
|
|
|
Operating
income
|
|
3,768
|
|
3,620
|
Share-based
compensation expenses
|
|
1,681
|
|
1,515
|
Non-GAAP operating
income
|
|
5,449
|
|
5,135
|
|
|
|
|
|
Operating
margin
|
|
3.3%
|
|
2.5%
|
Non-GAAP operating
margin
|
|
4.8%
|
|
3.6%
|
|
|
|
|
|
Net income
|
|
1,960
|
|
7,484
|
Share-based
compensation expense
|
|
1,681
|
|
1,515
|
Non-GAAP net
income
|
|
3,641
|
|
8,999
|
|
|
|
|
|
Net income
margin
|
|
1.7%
|
|
5.2%
|
Non-GAAP net income
margin
|
|
3.2%
|
|
6.3%
|
|
|
|
|
|
Net income per
share—basic
|
|
0.015
|
|
0.056
|
Net income per
share—diluted
|
|
0.015
|
|
0.056
|
Non-GAAP net income
per share—basic
|
|
0.028
|
|
0.068
|
Non-GAAP net income
per share—diluted
|
|
0.027
|
|
0.067
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.059
|
|
0.224
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.059
|
|
0.223
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.110
|
|
0.271
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.109
|
|
0.269
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
132,197,650
|
|
132,946,829
|
Weighted average
shares used in calculating diluted net income per share
|
|
133,006,241
|
|
134,072,148
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
132,197,650
|
|
132,946,829
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
133,006,241
|
|
134,072,148
|
|
|
|
|
|
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-2019-300901087.html
SOURCE China Distance Education Holdings Ltd.