BEIJING, Aug. 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 second quarter of 2019.
Second Quarter 2019 Operational and Financial
Summary
- Number of students enrolled at directly operated facilities was
30,478 as of June 30, 2019, compared
with 23,526 as of June 30, 2018.
- Net revenues were $53.6 million,
compared with $47.5 million for the
second quarter of 2018.
- Gross profit was $11.9 million,
compared with $15.9 million for the
second quarter of 2018.
- Net income attributable to ordinary shareholders of RYB for the
second quarter of 2019 was $2.9
million, compared with $4.7
million for the second quarter of 2018. Adjusted net income
attributable to ordinary shareholders[1] of RYB for the
second quarter of 2019 was $3.9
million, compared with $6.9
million for the second quarter of 2018.
- Cash used in operating activities was $2.9 million in the second quarter of 2019,
compared with $10.6 million cash used
in operating activities for the second quarter of 2018.
First Six Months of 2019 Financial Highlights
- Net revenues were $87.8 million,
compared with $76.2 million for the
first six months of 2018.
- Gross profit was $13.8 million,
compared with $16.5 million for the
first six months of 2018.
- Net income attributable to ordinary shareholders of RYB was
$0.6 million, compared with
$2.0 million for the same period of
2018. Adjusted net income attributable to ordinary shareholders of
RYB was $2.7 million, compared with
$6.0 million for the same period of
2018.
- Cash generated from operating activities was $10.3 million, versus $5.3
million of cash used in operating activities for the same
period of 2018.
"We delivered another solid performance during the second
quarter of 2019, which was driven by the strength of our core
offerings: play-and-learn centers and kindergarten services.
Additionally, during the second quarter, net enrollment increased
at our directly operated facilities as we benefitted from healthy
domestic growth and contributions from our overseas operations. The
strong market appeal of our expanded educational platform continues
to be fueled by our steadfast commitment to offering differentiated
educational products and services to the students and families we
serve," said Ms. Yanlai Shi, Co-founder, Director and Chief
Executive Officer of RYB.
"With the expanded brand portfolio for our kindergarten business
following our Singapore
acquisition, we now adopt a 'multi-layered brand portfolio'
strategy to cater to a broader student base, and improve children
and parents satisfaction level. Our teams on both sides will
explore opportunities for resources sharing, and introduce
integrated early education services to our students at home and
abroad. We expect potential benefits to unfold through our combined
efforts. In this process, we remain committed to improving the
quality of our educational offerings, and ultimately contributing
to the greater good of our children, families and communities,"
concluded Ms. Shi.
Mr. Hao Gu, Chief Financial Officer of RYB, said, "In second
quarter 2019, our net revenues reached $53.6
million. The solid revenue growth was attributable to
enrollment increases at our directly operated facilities, and
product revenues increases from our newly added courses, among
others. These were partially offset by a decline in our franchise
fee revenue. Due to the change of accounting estimate, franchise
fee revenue in the second quarter of 2018 was relatively high."
"With focused execution of our growth strategy and prudent cost
management, the Company's adjusted operating income was
$6.3 million in this quarter,
improving from the adjusted operating income generated in the
second quarter last year (excluding certain estimate change which
resulted in a high comparison base in the second quarter 2018).
General and administrative ("G&A") expenses declined in
absolute terms from a year ago, primarily due to reduced expenses
in administrative functions such as professional services and
corporate spending. Looking ahead, we will continually strive for
stable growth and creating shareholder value," concluded Mr.
Gu.
Second Quarter 2019 Financial Results
Net Revenues
Net revenues for the second quarter of 2019 were $53.6 million, compared with $47.5 million for the same quarter of 2018.
Service revenues for the second quarter of 2019 were
$48.2 million, compared with
$43.6 million for the same quarter of
2018. The increase was primarily contributed by enrollment increase
at directly operated facilities and newly acquired facilities in
Singapore, and was partially
offset by the decrease in the franchise services revenue. Franchise
fee revenue in the second quarter of 2018 was relatively higher due
to the recording of an accounting estimate change.
Product revenues for the second quarter of 2019 were
$5.4 million, compared with
$3.9 million for the same quarter of
2018, primarily due to an increase in delivery of products of
certain courses rolled out by the Company during the first quarter
of 2019 and an increase in the amount of merchandise sold through
the Company's franchise network.
Cost of Revenues
Cost of revenues for the second quarter of 2019 was $41.6 million, a 31.7% increase from $31.6 million for the same quarter of 2018. Cost
of revenues for services for the second quarter of 2019 was
$38.8 million, compared with
$29.4 million for the same quarter of
2018. The increase was primarily due to an increase in staff
compensation at the Company's directly operated facilities and
higher operating cost. Cost of product revenues for the second
quarter of 2019 was $2.8 million,
compared with $2.2 million for the
same quarter of 2018. The increase was in line with the increase in
product revenues.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2019 decreased by 24.9%
to $11.9 million, compared with
$15.9 million for the same quarter of
2018. The decrease was primarily due to the increase in staff
compensation and operating costs at the directly operated
facilities and decrease in franchise services revenue.
Gross margin for the second quarter of 2019 was 22.3%, compared
with 33.5% for the same quarter of 2018. The decrease in gross
margin was primarily due to the increase in staff compensation and
operating costs at the directly operated facilities and decrease in
franchise services revenue.
Operating Expenses
Total operating expenses for the second quarter of 2019 were
$6.6 million, compared with
$8.4 million for the same quarter of
2018. Excluding share-based compensation expenses, operating
expenses were $5.7 million, a
decrease of 9.1% from $6.2 million
for the second quarter of 2018.
Selling expenses for the second quarter of 2019 were
$0.7 million, compared with
$0.4 million for the same quarter of
2018.
G&A expenses for the second quarter of 2019 were
$5.9 million, a 26.2% decrease from
$8.0 million for the same quarter of
2018. Excluding share-based compensation expenses, G&A expenses
were $5.0 million for the second
quarter of 2019, a 15.2% decrease from $5.8
million for the same quarter of 2018. The decrease in
G&A expenses excluding share-based compensation expenses was
primarily due to less expenses incurred in professional service
fees and stringent cost control. The share-based compensation
expenses included in G&A expenses were $0.9 million for the quarter.
Operating Income
Operating income for the second quarter of 2019 was $5.3 million, compared with $7.5 million for the same quarter of 2018.
Adjusted operating income[2] was $6.3 million for the second quarter of 2019,
compared with $9.7 million for the
same quarter of 2018.
Net Income
Net income attributable to ordinary shareholders of RYB for the
second quarter of 2019 was $2.9
million, compared with $4.7
million for the second quarter of 2018. Adjusted net income
attributable to ordinary shareholders of RYB, which excludes the
impact of $1.0 million of share-based
compensation expense was $3.9
million, compared with $6.9
million for the second quarter of 2018.
Basic and diluted net income per American depositary share
("ADS") attributable to ordinary shareholders of RYB for the second
quarter of 2019 were $0.11 and
$0.10, respectively, compared with
basic and diluted net income per ADS of $0.16 and $0.15,
respectively for the second quarter of 2018. 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 second
quarter of 2019 were $0.14 and
$0.13, respectively, compared with
adjusted basic and diluted net income per ADS of $0.24 and $0.22,
respectively for the second quarter of 2018.
EBITDA[4] for the second quarter of 2019 was
$8.2 million, compared with
$10.1 million for the second period
of 2018. Adjusted EBITDA[5] for the second quarter of
2019 was $9.2 million, compared with
$12.3 million for the second quarter
of 2018.
[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 changes in redeemable non-controlling
interests. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
|
|
|
[2]
|
Adjusted operating
loss is a non-GAAP financial measure, which is defined as operating
income excluding share-based compensation expenses and changes in
redeemable non-controlling interests. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non-GAAP
results" elsewhere in this earnings release.
|
|
|
[3]
|
Adjusted basic and
diluted net income (loss) per ADS attributable to ordinary
shareholders is a non- GAAP financial measure, which is defined as
basic and diluted net income (loss) per ADS attributable to
ordinary shareholders excluding share-based compensation expenses
and changes in redeemable non-controlling interest. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" elsewhere in this earnings release.
|
|
|
[4]
|
EBITDA is defined as
net income (loss) excluding depreciation, amortization, interest
expenses and income tax expenses. See "Use of Non-GAAP Financial
Measures" and "Reconciliations of GAAP and non- GAAP results"
elsewhere in this earnings release.
|
|
|
[5]
|
Adjusted EBITDA is a
non-GAAP financial measure, which is defined as net income (loss)
excluding depreciation, amortization, interest expenses, income tax
expenses, and share-based compensation expenses. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-
GAAP results" elsewhere in this earnings release.
|
Operating Cash Flow
Cash used in operating activities was $2.9 million during the second quarter of 2019,
compared with $10.6 million cash used
in operating activities during the second quarter of 2018.
Balance Sheet
As of June 30, 2019, the Company
had total cash and cash equivalents of $80.7
million, a decrease from $104.1
million as of December 31,
2018. The decrease in cash and cash equivalents balances was
mainly due to payment for acquisition and other investments
activities as well as share repurchase executed in the quarter.
First Six Months of 2019 Financial Results
Net Revenues
Net revenues for the first six months of 2019 were $87.8 million, compared with $76.2 million for the same period of 2018.
Services revenues for the first six months of 2019 were
$80.0 million, compared with
$69.6 million for the same period
last year. The increase was mainly contributed by student
enrollment improvement and newly-added directly operated
facilities. The increase was partially offset by the decrease in
the franchise services revenue. Franchise fee revenue in the second
quarter of 2018 was relatively higher due to the recording of an
accounting estimate change. This impact was partially offset by the
moderate expansion of network during the first six months of
2019.
Product revenues for the first six months of 2019 were
$7.8 million, compared with
$6.6 million for the same period in
2019. The increase was primarily due to an increase in delivery of
products of certain courses rolled out by the Company during the
first quarter of 2019 and an increase in the amount of merchandise
sold through the Company's franchise network.
Cost of Revenues
Cost of revenues for the first six months of 2019 was
$74.0 million, compared with
$59.7 million for the first six
months of 2018. Cost of services revenues for the first six months
of 2019 was $70.0 million, compared
with $56.1 million for the same
period in 2018. The increase was primarily due to an increase in
staff compensation at the Company's directly operated facilities
and higher operating cost. Cost of product revenues for the first
six months of 2019 was $4.0 million,
compared with $3.6 million for the
same period last year. The increase was in line with the increase
in product revenues.
Gross Profit and Gross Margin
Gross profit for the first six months of 2019 was $13.8 million, compared with $16.5 million for the same period last year.
Gross margin for the first six months of 2019 was 15.7%,
compared with 21.7% for the same period last year.
Operating Expenses
Total operating expenses for the first six months of 2019 were
$12.5 million, compared with
$14.2 million for the same period
last year. Excluding share-based compensation expenses, operating
expenses were $10.3 million for the
first six months of 2019.
Selling expenses were $1.3 million
for the first six months of 2019, compared with $0.7 million for the same period last year.
G&A expenses for the first six months of 2019 were
$11.2 million, compared with
$13.5 million for the same period
last year. Excluding share-based compensation expenses, G&A
expenses were $9.0 million for the
first six months of 2019, a 6.5% decrease from $9.6 million for the same quarter of 2018. The
decrease in G&A expenses excluding share-based compensation
expenses was primarily due to less expenses incurred in
professional service fees and stringent cost control.
Operating Income
Operating income for the first six months of 2019 was
$1.3 million, compared with
$2.4 million for the same period last
year. Adjusted operating income for the first six months of 2019
was $3.5 million, compared with
$6.3 million for the same period last
year.
Net Income
Net income attributable to ordinary shareholders of RYB for the
first six months of 2019 was $0.6
million, compared with $2.0
million for the same period of 2018. Adjusted net income
attributable to ordinary shareholders of RYB, which excludes the
impact of share-based compensation expense and changes in
redeemable non-controlling interests, for the first six months of
2019 was $2.7 million, compared with
$6.0 million for the same period of
2018.
Basic and diluted net income per ADS attributable to ordinary
shareholders of RYB for the first six months of 2019 were
$0.02 and $0.02, respectively, compared with basic and
diluted net income per ADS attributable to ordinary shareholders of
RYB of $0.07 and $0.06, respectively for the same period of 2018.
Each ADS represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders of RYB for the first six months of 2019 were
$0.10 and $0.09, respectively, compared with adjusted basic
and diluted net income per ADS attributable to ordinary
shareholders of RYB of $0.20 and
$0.19, respectively for the same
period of 2018.
EBITDA for the first six months of 2019 was $7.5 million, compared with $7.3 million for the same period of 2018.
Adjusted EBITDA for the first six months of 2019 was $9.8 million, compared with $11.2 million for the same period of 2018.
Outlook
For the third quarter of 2019, the Company's management
currently expects:
- Net revenues to be between $45.5
million and $47.0 million,
representing a year-over-year increase of approximately 29% to
33%.
For the full year of 2019, the Company's management currently
expects:
- Net revenues to be between $195.5
million and $203.5 million,
representing a year-over-year increase of approximately 25% to
30%.
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 includes revenue consideration of the Company's completed
acquisition of a leading Singapore-based private childhood education
group, as initially announced on
February 5, 2019.
Conference Call
Management will hold a conference call at 8:30 a.m. Eastern Time on Wednesday, August 21,
2019 (8:30 p.m. Beijing Time on
August 21, 2019). 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
|
Participant Elite
Entry Number:
|
5180218
|
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 August 28, 2019
by dialing:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10134450
|
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.
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 changes in
redeemable non-controlling interest; 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 changes in redeemable non-controlling interest.
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) 6508-0677
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
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands of
U.S. dollars)
|
|
|
As
of
|
|
June
30,
|
December
31,
|
|
2019
|
2018
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
80,673
|
104,084
|
Term
deposits
|
874
|
-
|
Accounts receivable,
net
|
2,598
|
876
|
Inventories
|
7,030
|
4,811
|
Prepaid expenses and
other current assets
|
14,604
|
11,243
|
Loan
receivables-current
|
583
|
582
|
Total current
assets
|
106,362
|
121,596
|
|
|
|
Non-current
assets:
|
|
|
Restricted
cash
|
772
|
746
|
Property, plant and
equipment, net
|
48,500
|
45,896
|
Acquired intangible
assets
|
18,745
|
4,491
|
Goodwill
|
52,284
|
25,096
|
Long-term
investments
|
4,564
|
4,805
|
Deferred tax
assets
|
17,336
|
16,195
|
Other non-current
assets
|
8,437
|
24,048
|
Operating lease
right-of-use assets
|
84,142
|
-
|
Loan receivables –
non-current
|
583
|
582
|
Total
assets
|
341,725
|
243,455
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Prepayments from
customers, current portion(including prepayments from customers of
the consolidated VIEs without recourse to the Group of $4,588 and
$6,647 as of June 30, 2019 and December 31, 2018,
respectively)
|
5,702
|
6,647
|
Accrued expenses and
other current liabilities(including accrued expenses and other
current liabilities of the consolidated VIEs without recourse to
the Group of $47,193 and $54,443 as of June 30, 2019 and December
31, 2018, respectively)
|
53,896
|
60,429
|
Income taxes
payable(including income taxes payable of the consolidated VIEs
without recourse to the Group of $12,865 and $11,298 as of June 30,
2019 and December 31, 2018, respectively)
|
13,341
|
11,685
|
Deferred revenue,
current portion(including deferred revenue of the consolidated VIEs
without recourse to the Group of $36,922 and $29,578 as of June 30,
2019 and December 31, 2018, respectively)
|
37,256
|
29,578
|
Operating lease
liabilities, current portion (including operating lease liabilities
of the consolidated VIEs without recourse to the Group of $12,619
and nil as of June 30, 2019 and December 31, 2018,
respectively)
|
15,721
|
-
|
Long-term debt,
current portion (including long-term debt of the consolidated VIEs
without recourse to the Group of nil and nil as of June 30, 2019
and December 31, 2018, respectively)
|
80
|
-
|
Total current
liabilities
|
125,996
|
108,339
|
|
|
|
Non-current
liabilities:
|
|
|
Prepayments from
customers, non-current portion (including prepayments from
customers of the consolidated VIEs without recourse to the Group of
$4,236 and $3,582 as of June 30, 2019 and December 31, 2018,
respectively)
|
4,236
|
3,582
|
Deferred revenue,
non-current portion (including deferred revenue of the consolidated
VIEs without recourse to the Group of $4,916 and $5,567 as of June
30, 2019 and December 31, 2018, respectively)
|
6,262
|
6,915
|
Other non-current
liabilities (including other non-current liabilities of the
consolidated VIEs without recourse to the Group of $9,008 and
$8,541 as of June 30, 2019 and December 31, 2018,
respectively)
|
10,784
|
8,541
|
Deferred income tax
liabilities (including deferred income tax liabilities of the
consolidated VIEs without recourse to the Group of $1,486 and
$1,110 as of June 30, 2019 and December 31, 2018,
respectively)
|
3,653
|
1,110
|
Operating lease
liabilities, non-current portion (including operating lease
liabilities of the consolidated VIEs without recourse to the Group
of $70,531 and nil as of June 30, 2019 and December 31, 2018,
respectively)
|
73,374
|
-
|
Long-term debt,
non-current portion (including long term debt of the consolidated
VIEs without recourse to the Group of nil and nil as of June 30,
2019 and December 31, 2018, respectively)
|
47
|
-
|
Total
liabilities
|
224,352
|
128,487
|
|
|
|
Mezzanine
equity
|
|
|
Redeemable
non-controlling interests
|
8,555
|
1,628
|
|
|
|
Equity
|
|
|
Ordinary
shares
|
29
|
29
|
Treasury
stock
|
(12,000)
|
-
|
Additional paid-in
capital
|
138,142
|
135,881
|
Statutory
reserve
|
3,362
|
3,362
|
Accumulated other
comprehensive income
|
(401)
|
(122)
|
Accumulated
deficit
|
(29,827)
|
(30,421)
|
Total RYB
Education, Inc. shareholders' equity
|
99,305
|
108,729
|
Non-controlling
interest
|
9,513
|
4,611
|
Total
equity
|
108,818
|
113,340
|
Total liabilities,
mezzanine equity and total equity
|
341,725
|
243,455
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2019
|
2018
|
2019
|
2018
|
Net
revenues:
|
|
|
|
|
Services
|
48,186
|
43,602
|
80,029
|
69,602
|
Products
|
5,365
|
3,882
|
7,786
|
6,635
|
Total net
revenues
|
53,551
|
47,484
|
87,815
|
76,237
|
Cost of
revenues:
|
|
|
|
|
Services
|
38,840
|
29,418
|
70,036
|
56,106
|
Products
|
2,779
|
2,176
|
4,009
|
3,618
|
Total cost of
revenues
|
41,619
|
31,594
|
74,045
|
59,724
|
Gross
profit
|
11,932
|
15,890
|
13,770
|
16,513
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
Expenses
|
733
|
415
|
1,283
|
693
|
General and
administrative
|
5,878
|
7,970
|
11,201
|
13,462
|
Total operating
expenses
|
6,611
|
8,385
|
12,484
|
14,155
|
|
|
|
|
|
Operating
income
|
5,321
|
7,505
|
1,286
|
2,358
|
Interest
income
|
355
|
503
|
560
|
1,038
|
Government subsidy
income
|
95
|
201
|
220
|
290
|
Gain on disposal of
subsidiaries
|
-
|
-
|
697
|
1
|
Impairment loss on
intangible assets and goodwill
|
(416)
|
-
|
(416)
|
-
|
Income before
income taxes
|
5,355
|
8,209
|
2,347
|
3,687
|
Less: Income tax
expenses
|
1,798
|
2,874
|
1,361
|
1,395
|
Income before loss
in equity method investments
|
3,557
|
5,335
|
986
|
2,292
|
Loss from equity
method investment
|
(183)
|
(35)
|
(296)
|
(90)
|
|
|
|
|
|
Net
income
|
3,374
|
5,300
|
690
|
2,202
|
Less: Net income
attributable to non-controlling interest
|
431
|
583
|
239
|
205
|
Less: Decrease in
redeemable non-controlling interests
|
-
|
-
|
(143)
|
-
|
Net income
attributable to ordinary shareholders of RYB Education,
Inc.
|
2,943
|
4,717
|
594
|
1,997
|
|
|
|
|
|
Net income per share
attributable to ordinary shareholders of RYB Education,
Inc.
|
|
|
|
|
Basic
|
0.11
|
0.16
|
0.02
|
0.07
|
Diluted
|
0.10
|
0.15
|
0.02
|
0.06
|
Net income per ADS
attributable to ordinary shareholders of RYB Education, Inc. (Note
1)
|
|
|
|
|
Basic
|
0.11
|
0.16
|
0.02
|
0.07
|
Diluted
|
0.10
|
0.15
|
0.02
|
0.06
|
|
|
|
|
|
Weighted average
shares used in calculating net income per ordinary share
|
|
|
|
|
Basic
|
27,904,877
|
29,349,537
|
28,466,197
|
29,282,044
|
Diluted
|
29,239,156
|
31,344,409
|
29,813,542
|
31,298,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(in thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
|
|
|
Net income
|
3,374
|
5,300
|
690
|
2,202
|
Other comprehensive
loss, net of tax of nil:
|
|
|
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
(178)
|
(1,320)
|
(241)
|
(661)
|
Total
comprehensive income
|
3,196
|
3,980
|
449
|
1,541
|
Less: Comprehensive
income (loss) attributable to non-controlling interest
|
319
|
267
|
276
|
(57)
|
|
|
|
|
|
Comprehensive
income attributable to RYB Education, Inc.
|
2,877
|
3,713
|
173
|
1,598
|
|
|
|
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
June 30,
|
Six Months Ended
June 30,
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Operating
income
|
5,321
|
7,505
|
1,286
|
2,358
|
Share-based
compensation expenses
|
964
|
2,212
|
2,261
|
3,974
|
Adjusted operating
income
|
6,285
|
9,717
|
3,547
|
6,332
|
|
|
|
|
|
Net income
attributable to ordinary shareholders of RYB Education,
Inc.
|
2,943
|
4,717
|
594
|
1,997
|
|
|
|
|
|
Share-based
compensation expenses
|
964
|
2,212
|
2,261
|
3,974
|
Decrease in
redeemable non-controlling interests
|
-
|
-
|
(143)
|
-
|
Adjusted net income
attributable to ordinary shareholders of RYB Education,
Inc.
|
3,907
|
6,929
|
2,712
|
5,971
|
|
|
|
|
|
Net income
|
3,374
|
5,300
|
690
|
2,202
|
Add: Income tax
expense
|
1,798
|
2,874
|
1,361
|
1,395
|
Depreciation of property, plant and equipment, and
amortization of intangible assets
|
3,027
|
1,896
|
5,468
|
3,666
|
EBITDA
|
8,199
|
10,070
|
7,519
|
7,263
|
Share-based
compensation expenses
|
964
|
2,212
|
2,261
|
3,974
|
Adjusted
EBITDA
|
9,163
|
12,282
|
9,780
|
11,237
|
|
|
|
|
|
Net income per ADS
attributable to ordinary shareholders of RYB Education, Inc.- Basic
(Note1)
|
0.11
|
0.16
|
0.02
|
0.07
|
Net income per ADS
attributable to ordinary shareholders of RYB Education, Inc.-
Diluted (Note1)
|
0.10
|
0.15
|
0.02
|
0.06
|
|
|
|
|
|
Adjusted net income
per ADS attributable to ordinary shareholders of RYB Education,
Inc.- Basic (Note1)
|
0.14
|
0.24
|
0.10
|
0.20
|
Adjusted net income
per ADS attributable to ordinary shareholders of RYB Education,
Inc.- Diluted (Note1)
|
0.13
|
0.22
|
0.09
|
0.19
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per ADS
(Note1)
|
27,904,877
|
29,349,537
|
28,466,197
|
29,282,044
|
Weighted average
shares used in calculating diluted net income per ADS
(Note1)
|
29,239,156
|
31,344,409
|
29,813,542
|
31,298,700
|
|
|
|
|
|
Adjusted net income
per share- Basic
|
0.14
|
0.24
|
0.10
|
0.20
|
Adjusted net income
per share- Diluted
|
0.13
|
0.22
|
0.09
|
0.19
|
|
|
|
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
View original
content:http://www.prnewswire.com/news-releases/ryb-education-inc-reports-second-quarter-2019-financial-results-300904826.html
SOURCE RYB Education, Inc.