BEIJING, March 20, 2019 /PRNewswire/ -- RYB Education,
Inc. ("RYB" or the "Company") (NYSE: RYB), a leading early
childhood education service provider in China, today announced its unaudited financial
results for the fourth quarter and full year ended December 31, 2018.
Fourth Quarter 2018 Operational and
Financial Summary
- Number of students enrolled at RYB directly operated
kindergartens was 23,627 as of December 31,
2018, compared with 21,684 as of December 31, 2017.
- Net revenues increased by 15.2% to $45.0
million, compared with $39.1
million for the fourth quarter of 2017.
- Gross profit was $7.9 million,
compared with $7.5 million for the
fourth quarter of 2017.
- Net income attributable to ordinary shareholders of RYB for the
fourth quarter of 2018 was $0.6
million, compared with $0.2
million for the fourth quarter of 2017. Adjusted net income
attributable to ordinary shareholders[1] of RYB for the
fourth quarter of 2018 was $1.1
million, compared with $1.9
million for the fourth quarter of 2017.
- Cash used in operating activities was $9.5 million in the fourth quarter of 2018,
compared with $15.0 million of
outflow for the fourth quarter of 2017.
Full Year 2018 Financial Summary
- Net revenues were $156.5 million,
compared with $140.8 million for
2017.
- Gross profit was $25.6 million,
compared with $29.5 million for
2017.
- Net loss attributable to ordinary shareholders of RYB for 2018
was $1.8 million, compared with net
income attributable to ordinary shareholders of RYB of $7.1 million for 2017. Adjusted net income
attributable to ordinary shareholders of RYB for 2018 was
$5.1 million, compared with
$11.1 million for 2017.
Subsequent Events
- On February 5, 2019, the Company
announced that it had entered into a definitive agreement to
acquire approximately 70% of a leading Singapore-based private childhood education
group for approximately RMB125
million in cash, which is equivalent to $18.6 million. Concurrently, the Company intends
to change its name from RYB Education to GEH Education to better
reflect its growing platform of multiple brands, products and
services in multiple markets and geographies while maintaining the
"RYB" brand as one of its key brands for kindergartens and
play-and-learn services offerings. This name change will be subject
to further approval by the shareholders at the Company's next
shareholders' meeting.
"In many respects, 2018 was a challenging year, but our fourth
quarter results demonstrated the early benefits of our decisive
steps to stabilize our business with a razor-sharp focus on
security and safety of our children and our unrelenting pursuit of
higher quality educational services," said Ms. Yanlai Shi,
Co-founder, Director and Chief Executive Officer of RYB. "With a
multitude of policies related to the kindergarten and private
education industry released in 2018, we supported such policies and
took decisive steps, at times proactively, to adjust our
kindergarten operations according to those requirements to achieve
greater social benefits. Additionally, we have also taken measures
to expand our product and service offerings to provide a more
comprehensive assortment of early childhood education services
including play-and-learn services for parents to bond better with
their children; kindergarten-related curriculum, content, training,
management and other advisory services; and other newly developed
products and services. All of these position us well for
diversified long-term growth."
"As we look to 2019, we will continue to work with the
government to support policies related to early childhood
education. We remain fully committed to the government initiatives
aimed at making kindergarten services affordable and broadly
accessible while keeping the quality of education and the safety
and security of students as priority," Ms. Shi continued. "It is
through this cooperation that we will be well positioned to evolve
our diversified offering to continue to nurture and inspire each
child to realize his or her full potential. We firmly believe in
the value of our differentiated, high-quality early childhood
education services and the familial and societal benefit they
bring, including shareholder value."
Ms. Ping Wei, Chief Financial
Officer of RYB added, "We concluded 2018 with steady growth in the
fourth quarter with net revenues increasing 15.2% to $45.0 million, year-over-year. Net revenues
exceeded our expectations, and we returned to profitability in the
fourth quarter on the non-GAAP basis. Our results were driven by
steady enrollment growth, increase in average student payments in
our directly operated kindergartens and more products sold in the
quarter."
"As we enter 2019, in alignment with the evolving regulatory
environment, our objective is to strike a balance between growth
and profitability as well as between focus and diversification.
While policy-related adjustments to some of our directly operated
kindergartens could negatively impact our near-term margin, we
remain committed to investing in differentiated premium-quality
kindergarten services for our children, as we believe such
investments will pay off in the long term. In addition, our recent
investments to diversify revenue streams, both through the
development of new products and services and through our strategic
acquisitions to expand our geographic reach, will help generate
additional revenue and eventually profitability. All initiatives
position us well for the future," Ms. Wei concluded. "Our balance
sheet remains strong, and we intend to implement cost management
initiatives to maintain healthy profitability as we leverage our
well-diversified network to deliver solid returns to our
shareholders over the long run."
Fourth quarter 2018 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2018 increased by 15.2%
to $45.0 million, from $39.1 million for the same quarter of 2017.
Service revenues for the fourth quarter of 2018 increased by
10.7% to $38.5 million, from
$34.8 million for the same quarter of
2017. The increase was primarily due to an increase in the number
of students enrolled in the Company's directly operated
kindergartens and increased tuition fees due to a student-mix
shift. The increase was partially offset by the decrease in
franchise services revenue related to the pausing of the
kindergarten franchise program, a temporary suspension of the
Company's play-and-learn franchise expansion during the first half
of 2018 as well as lower revenue generated from existing
franchisees due to a one-off fee reduction for part of 2018, all of
which affected revenue in the quarter.
Product revenues for the fourth quarter of 2018 increased by
51.9% to $6.5 million, from
$4.3 million for the same quarter of
2017. The increase was primarily due to the delivery of products
related to new courses offered to the Company's franchisees and an
increase in the amount of merchandise sold through the Company's
franchise network.
Cost of Revenues
Cost of revenues for the fourth quarter of 2018 was $37.1 million, a 17.5% increase from $31.6 million for the same quarter of 2017. Cost
of revenues for services for the fourth quarter of 2018 was
$33.6 million, compared with
$29.3 million for the same quarter of
2017. The increase was primarily due to a planned increase in staff
compensation at the Company's directly operated kindergartens and
higher operating cost, such as rental and material consumption as
the Company continued to moderately expand its kindergarten
facilities network. Cost of products revenues for the fourth
quarter of 2018 was $3.5 million,
compared with $2.3 million for the
same quarter of 2017. The increase was generally in line with the
increase in products revenue.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2018 increased by 5.7% to
$7.9 million, compared with
$7.5 million for the same quarter of
2017.
Gross margin for the fourth quarter of 2018 was 17.6%, compared
with 19.1% for the same quarter last year. The decrease in gross
margin was primarily due to decreased franchise fee revenue and the
increase in staff compensation and operating costs at directly
operated kindergartens.
Operating Expenses
Total operating expenses for the fourth quarter of 2018 were
$8.0 million, comparable with
$7.6 million for the same quarter of
2017. Excluding share-based compensation expenses, operating
expenses were $6.8 million, an
increase of 13.3% from $6.0 million
for the fourth quarter of 2017.
Selling expenses for the fourth quarter of 2018 were
$0.7 million, compared with
$0.5 million for the same quarter of
2017.
General and administrative ("G&A") expenses for the fourth
quarter of 2018 were $7.3 million, a
3.3% increase from $7.1 million for
the same quarter of 2017. Excluding share-based compensation
expenses, G&A expenses were $6.1
million for the fourth quarter of 2018, as compared with
$5.5 million for the same quarter of
2017. The share-based compensation expenses included in G&A
expenses were $1.2 million for the
fourth quarter of 2018.
Operating Income/loss
Operating loss for the fourth quarter of 2018 was $0.1 million, compared with $0.2 million for the same quarter last year.
Adjusted operating income[2] was $1.1 million for the fourth quarter of 2018,
compared with $1.5 million for the
same quarter of 2017.
Net Income/loss
Net income attributable to ordinary shareholders of RYB for the
fourth quarter of 2018 was $0.6
million, compared with $0.2
million for the same quarter of 2017. Adjusted net income
attributable to ordinary shareholders of RYB, which excludes the
impact of $1.2 million of share-based
compensation expense and $0.7 million
decrease in redeemable non-controlling interests for the fourth
quarter of 2018, was $1.1 million,
compared with $1.9 million for the
same quarter of 2017.
Basic and diluted net income per American depositary share
("ADS") attributable to ordinary shareholders of RYB for the fourth
quarter of 2018 were both $0.02,
compared to basic and diluted net income per ADS attributable to
ordinary shareholders of RYB of $0.01, for the same quarter of 2017. Each ADS
represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders[3] of RYB for the fourth quarter
of 2018 were $0.04 and $0.03, respectively, compared with $0.06 and $0.06 for
the same quarter of 2017.
EBITDA[4] for the fourth quarter of 2018 was
$4.3 million, compared with
$2.3 million for the same period of
2017. Adjusted EBITDA[5] for the fourth quarter of 2018
was $5.5 million, compared with
$3.9 million for the same quarter of
2017.
Operating Cash Flow
Cash used in operating activities was $9.5 million during the fourth quarter of 2018,
compared with $15.0 million of
outflow from operating activities during the fourth quarter of
2017. The decrease in cash outflow was primarily due to the pay-out
of IPO related disbursements and one-off refunds to contracted and
potential franchisees in the same period of 2017.
Full Year of 2018 Financial Results
Net Revenues
Net revenues for the full year of 2018 were $156.5 million, compared with $140.8 million for 2017.
Services revenues for the full year of 2018 were $139.2 million, compared with $122.9 million for 2017. The increase was mainly
related to the increase in kindergarten revenue as the number of
students enrolled increased.
Franchise services revenue remained stable as revenue increased due
to the recognition of initial franchise fee revenue over the
service period as the Company adopted Topic 606 "Revenue from
Contracts with Customers" (ASC 606) applying the modified
retrospective method to franchise contracts not completed as of
January 1, 2018. This increase was
offset by reduced revenue due to the pausing of the kindergarten
franchise program, the temporary suspension of play-and-learn
franchise expansion during the first half of 2018 as well as lower
revenue generated from existing franchisees related to a one-off
fee reduction at the beginning of 2018.
Products revenues for the full year of 2018 were $17.3 million, compared with $17.9 million for 2017.
Cost of Revenues
Cost of revenues for the full year of 2018 was $130.9 million, compared with $111.3 million for 2017. Cost of services
revenues for the full year of 2018 was $121.5 million, compared with $101.5 million for 2017. The increase was
primarily due to a planned increase in staff compensation at the
Company's directly operated kindergartens and higher operating
cost, such as rental and material consumption as the Company
continued to moderately expand its kindergarten facilities network.
Cost of products revenues for the full year of 2018 was
$9.3 million, compared with
$9.8 million for 2017.
Gross Profit and Gross Margin
Gross profit for the full year of 2018 was $25.6 million, compared with $29.5 million for 2017.
Gross margin for the full year of 2018 was 16.4%, compared with
21.0% for 2017.
Operating Expenses
Total operating expenses for the full year of 2018 were
$28.7 million, compared with
$20.2 million for 2017. Excluding
share-based compensation expenses, operating expenses were
$22.1 million, compared with
$16.3 million for 2017.
Selling expenses were $2.2 million
for the full year of 2018, compared with $1.8 million for 2017.
G&A expenses for the full year of 2018 were $26.4 million, compared with $18.4 million for 2017. Excluding share-based
compensation expenses, G&A expenses were $19.9 million for the full year of 2018, a 36.3%
increase from $14.6 million for 2017.
The increase in G&A expenses excluding share-based compensation
expenses was primarily due to higher payroll expenses and
additional expenses incurred in professional service fees.
Operating Income/loss
Operating loss for the full year of 2018 was $3.0 million, compared to operating income of
$9.3 million for 2017. Adjusted
operating income for 2018 was $3.7
million, compared with $13.3
million for 2017.
Net Income/loss
Net loss attributable to ordinary shareholders of RYB for the
full year of 2018 was $1.8 million,
compared to net income attributable to ordinary shareholders of RYB
of $7.1 million for 2017. Adjusted
net income attributable to ordinary shareholders of RYB, which
excludes the impact of share-based compensation expenses and
accretion of redeemable non-controlling interests, for the full
year of 2018 was $5.1 million,
compared with $11.1 million for
2017.
Basic and diluted net losses per ADS attributable to ordinary
shareholders of RYB for the full year of 2018 were both
$0.06 compared to basic and diluted
net income per ADS attributable to ordinary shareholders of RYB of
$0.29 and $0.27, respectively, for 2017. Each ADS
represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of RYB for the full year of 2018 were
$0.18 and $0.16, respectively, compared with $0.45 and $0.42,
respectively, for 2017.
EBITDA for the full year of 2018 was $8.8
million, compared with $16.5
million for 2017. Adjusted EBITDA for 2018 was $15.6 million, compared with $20.4 million for 2017.
Balance Sheet
As of December 31, 2018, the
Company had total cash and cash equivalents of $104.1 million, compared with $158.7 million as of December 31, 2017. The decrease in cash balance
was primarily driven by acquisition related payments of
$41.5 million, capital expenditures
of $11.5 million.
Outlook
For the first quarter of 2019, the Company's management
currently expects:
- Net revenues to be between
$33.0 million and $34.5 million, representing a year-over-year
increase of approximately 15.0% to 20.0%.
For the full year of 2019, the Company's management currently
expects:
- Net revenues to be between
$180.5 million and $191.5 million, representing a year-over-year
increase of approximately 15.0% to 22.0%.
The above outlook is based on the current market conditions and
reflects the Company management's current and preliminary estimates
of market and operating conditions, customer demand and foreign
exchange environment, which are all subject to change. The
above outlook excludes revenue consideration of the Company's
pending acquisition of a leading Singapore-based private childhood education
group, as announced February 5,
2019.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, March 21,
2019 (8:00 p.m. Beijing Time on
March 21, 2019) to discuss financial
results and answer questions from investor and
analysts. Listeners may access the call by dialing:
|
United States (toll
free):
|
1-888-317-6003
|
International:
|
1-412-317-6061
|
China (toll
free):
|
400-120-6115
|
Hong Kong (toll
free):
|
800-963-976
|
Participants Elite
Entry Number:
|
5356184
|
|
Participants should dial-in at least 10-15 minutes before the
scheduled start time and ask to be connected to the RYB Education,
Inc. conference call.
A telephone replay will be available approximately one hour
after the call until March 28, 2019
by dialing:
|
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10129617
|
|
Additionally, a live and archived webcast of the conference call
will be available at http://ir.rybbaby.com.
About RYB Education, Inc.
Founded on the core values of "Care" and "Responsibility",
"Inspire" and "Innovate," RYB Education, Inc. is a leading early
childhood education service provider in China. Since opening its first play-and-learn
center in 1998, the Company has grown and flourished with the
mission to provide high-quality, individualized and age-appropriate
care and education to nurture and inspire each child for his or her
betterment in life. During its two decades of operating history,
the Company has built "RYB" into a well-recognized education brand
and helped bring about many new educational practices in
China's early childhood education
industry. RYB's comprehensive early childhood education solutions
meet the needs of children from infancy to 6 years old through
structured courses at kindergartens and play-and-learn centers, as
well as at-home educational products and services.
For more information, please visit http://ir.rybbaby.com
Use of Non-GAAP Financial Measures
We use EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, each a non-GAAP financial measure, in evaluating our operating
results and for financial and operational decision-making
purposes.
EBITDA is defined as net income excluding depreciation,
amortization, interest expenses, and income tax expenses; adjusted
EBITDA is defined as net income excluding depreciation,
amortization, interest expenses, income tax expenses, and
share-based compensation expenses; adjusted operating income is
defined as operating income excluding share-based compensation
expenses; adjusted net income attributable to ordinary shareholders
is defined as net income attributable to ordinary
shareholders excluding share-based compensation expenses and
accretion of redeemable non-controlling interests; and adjusted
basic and diluted net income per ADS attributable to ordinary
shareholders are defined as basic and diluted net income per ADS
attributable to ordinary shareholders excluding share-based
compensation expenses and accretion of redeemable non-controlling
interests.
We believe that EBITDA, adjusted EBITDA, adjusted operating
income, adjusted net income, and adjusted basic and diluted net
income per ADS, help identify underlying trends in our business
that could otherwise be distorted by the effect of certain expenses
that we include in income from operations and net income. We
believe that EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, provide useful information about our operating results,
enhance the overall understanding of our past performance and
future prospects and allow for greater visibility with respect to
key metrics used by our management in its financial and operational
decision-making.
EBITDA, adjusted EBITDA, adjusted operating income, adjusted net
income, and adjusted basic and diluted net income per ADS, should
not be considered in isolation or construed as an alternative to
net income or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review
the historical Adjusted financial measures to the most directly
comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted
operating income, adjusted net income, and adjusted basic and
diluted net income per ADS, presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to our data. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
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," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
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: the
Company's brand recognition and market reputation; student
enrollment in the Company's teaching facilities; the Company's
growth strategies; its future business development, results of
operations and financial condition; trends and competition in
China's early childhood education
market; changes in its revenues and certain cost or expense items;
the expected growth of the Chinese early childhood education
market; Chinese governmental policies relating to the Company's
industry and general economic conditions in China. Further information regarding these and
other risks is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
In China:
RYB
Education, Inc.
|Investor Relations
Tel: 86-10-8767-5752
E-mail: ir@rybbaby.com
The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 5730-6200
E-mail: ryb@tpg-ir.com
In the United
States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: ryb@tpg-ir.com
|
[1]
|
Adjusted net income
(loss) attributable to ordinary shareholders is a non-GAAP
financial measure, which is defined as net income (loss)
attributable to ordinary shareholders excluding share-based
compensation expenses and accretion of redeemable non-controlling
interests.
|
|
|
[2]
|
Adjusted operating
income is a non-GAAP financial measure, which is defined as
operating income excluding share-based compensation
expenses.
|
|
|
[3]
|
Adjusted basic and
diluted net income per ADS attributable to ordinary shareholders is
a non-GAAP financial measure, which is defined as basic and diluted
net income per ADS attributable to ordinary shareholders excluding
share-based compensation expenses and accretion of redeemable
non-controlling interest.
|
|
|
[4]
|
EBITDA is defined as
net income excluding depreciation, amortization and income tax
expenses.
|
|
|
[5]
|
Adjusted EBITDA is a
non-GAAP financial measure, which is defined as net income
excluding depreciation, amortization, interest expenses, income tax
expenses, and share-based compensation expenses.
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands of
U.S. dollars)
|
|
|
As
of
|
|
December 31,
2018
|
|
December 31,
2017
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
104,084
|
|
158,691
|
Accounts receivable,
net
|
876
|
|
901
|
Inventories
|
4,811
|
|
3,549
|
Prepaid expenses and
other current assets
|
16,758
|
|
9,541
|
Amounts due from
related parties
|
-
|
|
126
|
Total current
assets
|
126,529
|
|
172,808
|
|
|
|
|
Non-current
assets:
|
|
|
|
Restricted
cash
|
746
|
|
543
|
Property, plant and
equipment, net
|
45,896
|
|
40,163
|
Acquired intangible
assets
|
4,491
|
|
-
|
Goodwill
|
25,096
|
|
428
|
Long-term
investments
|
4,369
|
|
256
|
Deferred tax
assets
|
16,195
|
|
12,430
|
Available-for-sale
security
|
436
|
|
-
|
Other non-current
assets
|
4,027
|
|
3,110
|
Loan
receivables
|
15,670
|
|
-
|
Total
assets
|
243,455
|
|
229,738
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities:
|
|
|
|
Prepayments from
customers, current portion(including prepayments from customers of
the consolidated VIEs without recourse to the Group of $6,647 and
$11,962 as of December 31, 2018 and 2017,
respectively)
|
6,647
|
|
11,968
|
Accrued expenses and
other current liabilities(including accrued expenses and other
current liabilities of the consolidated VIEs without recourse to
the Group of $54,443 and $48,123 as of December 31, 2018 and
2017, respectively)
|
60,429
|
|
51,854
|
Income taxes
payable(including income taxes payable of the consolidated VIEs
without recourse to the Group of $11,298 and $10,125 as of December
31, 2018 and 2017, respectively)
|
11,685
|
|
10,534
|
Deferred revenue,
current portion(including deferred revenue of the consolidated VIEs
without recourse to the Group of $29,578 and $22,327 as of December
31, 2018 and 2017, respectively)
|
29,578
|
|
22,666
|
Total current
liabilities
|
108,339
|
|
97,022
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Prepayments from
customers, non-current portion (including prepayments from
customers of the consolidated VIEs without recourse to the Group of
$3,582 and $8,542 as of December 31, 2018 and 2017,
respectively)
|
3,582
|
|
8,542
|
Deferred revenue,
non-current portion (including deferred revenue of the consolidated
VIEs without recourse to the Group of $5,567 and $8,505 as of
December 31, 2018 and 2017, respectively)
|
6,915
|
|
10,396
|
Other non-current
liabilities (including other non-current liabilities of the
consolidated VIEs without recourse to the Group of $8,541 and
$8,484 as of December 31, 2018 and 2017,
respectively)
|
8,541
|
|
8,484
|
Deferred income tax
liabilities(including deferred income tax liabilities of the
consolidated VIEs without recourse to the Group of $1,110 and nil
as of December 31, 2018 and 2017,
respectively)
|
1,110
|
|
-
|
Total
liabilities
|
128,487
|
|
124,444
|
|
|
|
|
|
|
|
|
Mezzanine
equity
|
1,628
|
|
-
|
Redeemable
non-controlling interests
|
|
|
|
|
|
|
|
Equity
|
|
|
|
Ordinary
shares
|
29
|
|
29
|
Additional paid-in
capital
|
135,881
|
|
129,134
|
Statutory
reserve
|
3,362
|
|
2,678
|
Accumulated other
comprehensive income
|
(122)
|
|
783
|
Accumulated
deficit
|
(30,421)
|
|
(28,879)
|
Total RYB
Education, Inc. shareholders' equity
|
108,729
|
|
103,745
|
Non-controlling
interest
|
4,611
|
|
1,549
|
Total
equity
|
113,340
|
|
105,294
|
Total liabilities,
mezzanine equity and total equity
|
243,455
|
|
229,738
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except share, ADS, per share and per
ADS data)
|
|
|
Three Months
Ended
December 31,
|
Year
Ended December
31,
|
2018
|
2017
|
2018
|
2017
|
Net
revenues:
|
|
|
|
|
Services
|
38,463
|
34,755
|
139,216
|
122,869
|
Products
|
6,541
|
4,306
|
17,282
|
17,934
|
Total net
revenues
|
45,004
|
39,061
|
156,498
|
140,803
|
Cost of
revenues:
|
|
|
|
|
Services
|
33,573
|
29,292
|
121,549
|
101,522
|
Products
|
3,531
|
2,292
|
9,315
|
9,755
|
Total cost of
revenues
|
37,104
|
31,584
|
130,864
|
111,277
|
Gross
profit
|
7,900
|
7,477
|
25,634
|
29,526
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
Expenses
|
696
|
536
|
2,233
|
1,774
|
General and
administrative
|
7,338
|
7,106
|
26,428
|
18,418
|
Total operating
expenses
|
8,034
|
7,642
|
28,661
|
20,192
|
|
|
|
|
|
Operating
income/(loss)
|
(134)
|
(165)
|
(3,027)
|
9,334
|
Interest
income
|
644
|
435
|
2,147
|
563
|
Government subsidy
income
|
299
|
443
|
683
|
863
|
Gain/(loss) on
disposal of subsidiaries
|
1,233
|
-
|
1,234
|
(168)
|
|
|
|
|
|
Income before
income taxes
|
2,042
|
713
|
1,037
|
10,592
|
Less: Income tax
expense
|
1,907
|
486
|
2,459
|
3,812
|
|
|
|
|
|
Income/(loss)
before loss in equity method investments
|
135
|
227
|
(1,422)
|
6,780
|
Loss from equity
method investment
|
(67)
|
(117)
|
(291)
|
(239)
|
|
|
|
|
|
Net
income/(loss)
|
68
|
110
|
(1,713)
|
6,541
|
Less: Net income
/(loss) attributable to non-controlling interest
|
226
|
(89)
|
(93)
|
(574)
|
Increase/(decrease)
in redeemable non-controlling interest
|
(716)
|
-
|
169
|
-
|
|
|
|
|
|
Net income/(loss)
attributable to ordinary shareholders of RYB
|
558
|
199
|
(1,789)
|
7,115
|
|
|
|
|
|
Net income /(loss)
per share attributable to ordinary shareholders of RYB Education,
Inc.
|
|
|
|
|
Basic
|
0.02
|
0.01
|
(0.06)
|
0.29
|
Diluted
|
0.02
|
0.01
|
(0.06)
|
0.27
|
Net income /(loss)
per ADS attributable to ordinary shareholders of RYB Education,
Inc. (Note 1)
|
|
|
|
|
Basic
|
0.02
|
0.01
|
(0.06)
|
0.29
|
Diluted
|
0.02
|
0.01
|
(0.06)
|
0.27
|
Weighted average
shares used in calculating net income/(loss) per ordinary
share
|
|
|
|
|
Basic
|
29,213,801
|
29,213,801
|
29,213,801
|
24,735,445
|
Diluted
|
30,874,121
|
31,678,204
|
29,213,801
|
26,566,657
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(in thousands of
U.S. dollars)
|
|
|
|
|
Three Months
Ended
December 31,
|
Year
Ended
December
31,
|
|
2018
|
2017
|
2018
|
2017
|
Net
income/(loss)
|
68
|
110
|
(1,713)
|
6,541
|
Other comprehensive
income/(loss), net of tax of nil:
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
1,458
|
115
|
(983)
|
410
|
Total
comprehensive income/(loss)
|
1,526
|
225
|
(2,696)
|
6,951
|
Less: Comprehensive
income/(loss) attributable to non-controlling interest
|
430
|
(120)
|
(171)
|
(566)
|
Comprehensive
income/(loss) attributable to RYB Education, Inc.
|
1,096
|
345
|
(2,525)
|
7,517
|
RECONCILIATION
OF GAAP AND NON-GAAP RESULTS
(in thousands of U.S.
dollars, except share, ADS, per share and per ADS
data)
|
|
|
Three Months
Ended
December
31,
|
Year
Ended
December
31,
|
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
Operating
income/(loss)
|
(134)
|
(165)
|
(3,027)
|
9,334
|
Share-based
compensation expenses
|
1,211
|
1,654
|
6,747
|
3,990
|
Adjusted operating
income
|
1,077
|
1,489
|
3,720
|
13,324
|
|
|
|
|
|
Net income/(loss)
attributable to ordinary shareholders of RYB Education,
Inc.
|
558
|
199
|
(1,789)
|
7,115
|
Increase/(decrease)
in redeemable non-controlling interest
|
(716)
|
-
|
169
|
|
Share-based
compensation expenses
|
1,211
|
1,654
|
6,747
|
3,990
|
Adjusted net income
attributable to ordinary shareholders of RYB Education,
Inc.
|
1,053
|
1,853
|
5,127
|
11,105
|
|
|
|
|
|
Net
income/(loss)
|
68
|
110
|
(1,713)
|
6,541
|
Add: Income tax
expense
|
1,907
|
486
|
2,459
|
3,812
|
Depreciation and amortization
|
2,360
|
1,668
|
8,059
|
6,099
|
EBITDA
|
4,335
|
2,264
|
8,805
|
16,452
|
Share-based
compensation expenses
|
1,211
|
1,654
|
6,747
|
3,990
|
Adjusted
EBITDA
|
5,546
|
3,918
|
15,552
|
20,442
|
|
|
|
|
|
Net income/(loss) per
ADS attributable to ordinary shareholders of RYB Education, Inc.-
Basic (Note1)
|
0.02
|
0.01
|
(0.06)
|
0.29
|
Net income/(loss) per
ADS attributable to ordinary shareholders of RYB Education, Inc.-
Diluted (Note1)
|
0.02
|
0.01
|
(0.06)
|
0.27
|
|
|
|
|
|
Adjusted net income
per ADS attributable to ordinary shareholders of RYB Education,
Inc.- Basic (Note1)
|
0.04
|
0.06
|
0.18
|
0.45
|
Adjusted net income
per ADS attributable to ordinary shareholders of RYB Education,
Inc.- Diluted (Note1)
|
0.03
|
0.06
|
0.16
|
0.42
|
|
|
|
|
|
Weighted average
shares used in calculating
basic net income/adjusted net income per ADS(Note1)
|
29,213,801
|
29,213,801
|
29,213,801
|
24,735,445
|
Weighted average
shares used in calculating
diluted net income/(loss) per ADS(Note1)
|
30,874,121
|
31,678,204
|
29,213,801
|
26,566,657
|
Weighted average
shares used in calculating
diluted adjusted net income per ADS(Note1)
|
30,874,121
|
31,678,204
|
31,437,498
|
26,566,657
|
|
|
|
|
|
Adjusted net income
per share attributable to ordinary shareholders of RYB Education,
Inc. - Basic
|
0.04
|
0.06
|
0.18
|
0.45
|
Adjusted net income
per share attributable to ordinary shareholders of RYB Education,
Inc. - Diluted
|
0.03
|
0.06
|
0.16
|
0.42
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
View original
content:http://www.prnewswire.com/news-releases/ryb-education-inc-reports-fourth-quarter-and-full-year-2018-financial-results-300816111.html
SOURCE RYB Education, Inc.