51job, Inc. Reports Fourth Quarter and Fiscal Year 2018 Financial Results
SHANGHAI, Feb. 28, 2019 /PRNewswire/ --51job, Inc. (Nasdaq: JOBS) ("51job" or the "Company"), a leading provider of integrated human resource services in China, announced today its unaudited financial results for the fourth quarter and fiscal year of 2018 ended December 31, 2018.
Fourth Quarter 2018 Financial Highlights:
-- Total revenues increased 28.5% over Q4 2017 to RMB1,120.5 million
(US$163.0 million), at the top of the Company's guidance range
-- Online recruitment services revenues increased 24.4%
-- Other human resource related revenues increased 34.6%
-- Gross margin was 70.3% compared with 73.3% in Q4 2017
-- Operating margin was 38.4% compared with 36.8% in Q4 2017
-- Income from operations increased 34.1% over Q4 2017 to RMB425.5 million
(US$61.9 million)
-- Fully diluted earnings per share were RMB6.22 (US$0.90)
-- Excluding share-based compensation expense, loss from foreign currency
translation and change in fair value of convertible senior notes, as
well as the related tax effect of these items, non-GAAP adjusted fully
diluted earnings per share were RMB6.67 (US$0.97), exceeding the
Company's guidance range
Fiscal Year 2018 Financial Highlights:
-- Total revenues increased 31.3% over 2017 to RMB3,781.9 million (US$550.1
million)
-- Gross margin was 72.2% compared with 73.2% in 2017
-- Operating margin was 30.8% compared with 30.6% in 2017
-- Income from operations increased 32.1% over 2017 to RMB1,150.2 million
(US$167.3 million)
-- Fully diluted earnings per share were RMB19.82 (US$2.88)
-- Excluding share-based compensation expense, loss from foreign currency
translation and change in fair value of convertible senior notes, as
well as the related tax effect of these items, non-GAAP adjusted fully
diluted earnings per share were RMB20.94 (US$3.05)
-- Cash and short-term investments totaled RMB8,834.2 million (US$1,284.9
million) as of December 31, 2018
Commenting on the results, Rick Yan, President and Chief Executive Officer of 51job, said, "We are very proud to have celebrated our 20th anniversary by delivering robust financial results to our shareholders in 2018. Our online business demonstrated strong growth with progress in ARPU improvement due to greater usage and spending by employers for our ever expanding array of products and platforms. The other HR services area also performed well as we elevated cross-promotion efforts, gained customer acceptance and drove uptake of these value-added services. For 2019, we will stay focused on executing our high quality growth strategy, emphasizing deeper engagements with employers and capturing opportunities across the entire spectrum of HR needs in China."
Fourth Quarter 2018 Unaudited Financial Results
Total revenues for the fourth quarter ended December 31, 2018 were RMB1,120.5 million (US$163.0 million), an increase of 28.5% from RMB872.1 million for the same quarter in 2017.
Online recruitment services revenues for the fourth quarter of 2018 were RMB646.0 million (US$94.0 million), representing a 24.4% increase from RMB519.4 million for the same quarter of the prior year. The growth was driven by higher revenue per unique employer, which was partially offset by a decrease in the number of unique employers utilizing the Company's online services. Average revenue per unique employer increased 34.3% in the fourth quarter of 2018 as compared with the same quarter in 2017, due to successful up-selling efforts that resulted in the purchase of multiple and/or higher value online products and services as well as the Company's continued reallocation of sales resources away from smaller sized customer accounts. In line with the Company's strategic priority to focus more attention on higher potential employers, moderate new user additions and terminate coverage of certain customer accounts in 2018, the estimated number of unique employers decreased 7.4% to 343,405 in the fourth quarter of 2018 compared with 370,746 for the same quarter of the prior year. The estimated number of unique employers in the fourth quarter of 2018 reflects those employers currently assigned a unique identification number in the Company's management information systems and does not include employers utilizing Lagou.com.
Other human resource related revenues for the fourth quarter of 2018 increased 34.6% to RMB474.6 million (US$69.0 million) from RMB352.7 million for the same quarter in 2017. The increase was primarily due to greater usage and growth of seasonal campus recruitment, business process outsourcing, training and assessment services.
Gross profit for the fourth quarter of 2018 increased 23.0% to RMB778.9 million (US$113.3 million) from RMB633.0 million for the same quarter of the prior year. Gross margin, which is gross profit as a percentage of net revenues, was 70.3% in the fourth quarter of 2018 compared with 73.3% for the same quarter in 2017 due to higher employee compensation expenses as well as a greater portion of additional offline costs, such as venue rental and event decoration, incurred in providing on-site campus recruitment services to employers in the fourth quarter of 2018.
Operating expenses for the fourth quarter of 2018 increased 11.9% to RMB353.4 million (US$51.4 million) from RMB315.7 million for the same quarter in 2017. Sales and marketing expenses for the fourth quarter of 2018 increased 10.5% to RMB264.8 million (US$38.5 million) from RMB239.6 million for the same quarter of the prior year primarily due to higher employee compensation expenses, headcount additions and greater advertising expenses. General and administrative expenses for the fourth quarter of 2018 increased 16.5% to RMB88.6 million (US$12.9 million) from RMB76.1 million for the same quarter of the prior year primarily due to higher employee compensation and office expenses.
Income from operations for the fourth quarter of 2018 increased 34.1% to RMB425.5 million (US$61.9 million) from RMB317.3 million for the fourth quarter of 2017. Operating margin, which is income from operations as a percentage of net revenues, was 38.4% in the fourth quarter of 2018 compared with 36.8% for the same quarter in 2017. Excluding share-based compensation expense, operating margin would have been 40.9% in the fourth quarter of 2018 compared with 39.2% for the same quarter in 2017.
The Company recognized a loss from foreign currency translation of RMB0.8 million (US$0.1 million) in the fourth quarter of 2018 compared with a gain of RMB7.7 million in the fourth quarter of 2017 primarily due to the impact of the change in exchange rate between the Renminbi and the U.S. dollar on the Company's U.S. dollar cash deposits and U.S. dollar-denominated convertible senior notes issued in 2014.
In the fourth quarter of 2018, the Company recognized a mark-to-market, non-cash gain of RMB448.9 million (US$65.3 million) associated with a change in fair value of convertible senior notes compared with a loss of RMB4.8 million in the fourth quarter of 2017. The large non-cash gain was a result of the significant change in the price of the Company's American Depositary Shares traded on the Nasdaq Global Select Market during the fourth quarter of 2018 and its corresponding effect on the fair value of the convertible senior notes.
Other income in the fourth quarter of 2018 included local government financial subsidies of RMB17.9 million (US$2.6 million) compared with RMB11.5 million in the fourth quarter of 2017.
Net income attributable to 51job for the fourth quarter of 2018 was RMB856.3 million (US$124.5 million) compared with RMB305.4 million for the same quarter in 2017. Fully diluted earnings per share for the fourth quarter of 2018 were RMB6.22 (US$0.90) compared with RMB4.42 for the same quarter in 2017.
In the fourth quarter of 2018, total share-based compensation expense was RMB27.9 million (US$4.1 million) compared with RMB21.1 million in the fourth quarter of 2017.
Excluding share-based compensation expense, gain/loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, non-GAAP adjusted net income attributable to 51job for the fourth quarter of 2018 increased 34.8% to RMB436.1 million (US$63.4 million) compared with RMB323.4 million for the fourth quarter of 2017. Non-GAAP adjusted fully diluted earnings per share were RMB6.67 (US$0.97) in the fourth quarter of 2018 compared with RMB5.01 in the fourth quarter of 2017.
Fiscal Year 2018 Unaudited Financial Results
Total revenues in 2018 were RMB3,781.9 million (US$550.1 million), an increase of 31.3% from RMB2,881.2 million in 2017.
Online recruitment services revenues in 2018 were RMB2,431.9 million (US$353.7 million), representing a 29.9% increase from RMB1,871.7 million in 2017. Average revenue per unique employer increased 39.1% in 2018 primarily due to successful up-selling efforts that resulted in greater spending by customers as well as price increases on select online products and packages in 2018. In line with the Company's strategic priority to focus more attention on higher potential employers, moderate new user additions and terminate coverage of certain customer accounts in 2018, the estimated number of unique employers using the Company's online recruitment services decreased 6.6% to 485,008 in 2018 from 519,257 in 2017. An employer who purchases online services multiple times or in multiple quarters throughout the fiscal year is counted as one unique employer for the annual total. The estimated number of unique employers in 2018 reflects those employers currently assigned a unique identification number in the Company's management information systems and does not include employers utilizing Lagou.com.
Other human resource related revenues in 2018 grew 33.7% to RMB1,350.0 million (US$196.4 million) from RMB1,009.5 million in 2017.
Income from operations in 2018 increased 32.1% to RMB1,150.2 million (US$167.3 million) from RMB870.8 million in 2017. Operating margin was 30.8% in 2018 compared with 30.6% in 2017. Excluding share-based compensation expense, operating margin would have been 33.6% in 2018, similar to 2017.
Net income attributable to 51job in 2018 was RMB1,252.3 million (US$182.1 million) compared with RMB371.9 million in 2017. Fully diluted earnings per share in 2018 were RMB19.82 (US$2.88) compared with RMB6.08 in 2017.
Excluding share-based compensation expense, gain/loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, non-GAAP adjusted net income attributable to 51job in 2018 increased 44.2% to RMB1,370.5 million (US$199.3 million) from RMB950.3 million in 2017. Non-GAAP adjusted fully diluted earnings per share were RMB20.94 (US$3.05) in 2018 compared with RMB15.16 in 2017.
As of December 31, 2018, cash and short-term investments totaled RMB8,834.2 million (US$1,284.9 million) compared with RMB7,132.0 million as of December 31, 2017.
Business Outlook
Based on current market conditions and factoring in seasonality related to the Chinese New Year holiday in 2019, the Company's total revenues target for the first quarter of 2019 is in the estimated range of RMB935 million to RMB975 million (US$136.0 million to US$141.8 million). Guidance for earnings per share is provided on a non-GAAP basis due to the inherent difficulty in forecasting the future impact of certain items, such as gain/loss from foreign currency translation and change in fair value of convertible senior notes. The Company is not able to provide a reconciliation of these non-GAAP items to expected reported GAAP earnings per share, without unreasonable efforts, due to the unknown effect and potential significance of such future impact and changes. Excluding share-based compensation expense, any gain or loss from foreign currency translation, and any mark-to-market gain or loss associated with a change in fair value of convertible senior notes, as well as the related tax effect of these items, the Company's non-GAAP fully diluted earnings target for the first quarter of 2019 is in the estimated range of RMB4.25 to RMB4.55 (US$0.62 to US$0.66) per share. The Company expects total share-based compensation expense in the first quarter of 2019 to be in the estimated range of RMB31 million to RMB32 million (US$4.5 million to US$4.7 million).
Currency Convenience Translation
For the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB6.8755 to US$1.00, the noon buying rate on December 31, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly statistical release of the Federal Reserve Board.
Conference Call Information
The Company's management will hold a conference call at 8:00 p.m. Eastern Time on February 28, 2019 (9:00 a.m. Beijing / Hong Kong time zone on March 1, 2019) to discuss its fourth quarter and fiscal year 2018 financial results, operating performance and business outlook. To dial in to the call, please use the following telephone numbers:
US: +1-888-346-8982
International: +1-412-902-4272
Hong Kong: +852-3018-4992
Conference ID:
51job
The call will also be available live and on replay through 51job's investor relations website, http://ir.51job.com.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), 51job uses non-GAAP financial measures of income before income tax expense, income tax expense, adjusted net income, adjusted net income attributable to 51job and adjusted earnings per share, which are adjusted from results based on GAAP to exclude share-based compensation expense, gain/loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items. The Company believes excluding share-based compensation expense and its related tax effect from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such expense is not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company believes excluding gain/loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect, from its non-GAAP financial measures is useful for its management and investors as such translation or mark-to-market gain/loss is not indicative of the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings. 51job also believes these non-GAAP financial measures excluding share-based compensation expense, gain/loss from foreign currency translation and change in fair value of convertible senior notes, as well as the related tax effect of these items, are important in helping investors to understand the Company's current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial statements.
About 51job
Founded in 1998, 51job is a leading provider of integrated human resource services in China. With a comprehensive suite of HR solutions, 51job meets the needs of enterprises and job seekers through the entire talent management cycle, from initial recruitment to employee retention and career development. The Company's main online recruitment platforms (http://www.51job.com, http://www.yingjiesheng.com, http://www.51jingying.com, and http://www.lagou.com), as well as mobile applications, connect millions of people with employment opportunities every day. 51job also provides a number of other value-added HR services, including business process outsourcing, training, professional assessment, executive search and compensation analysis. 51job has a call center in Wuhan and a nationwide sales office network spanning 25 cities across China.
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," "targets, "confident" and similar statements. Among other things, statements that are not historical facts, including statements about 51job's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as 51job's strategic and operational plans, are or contain forward-looking statements. 51job may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All forward-looking statements are based upon management's expectations at the time of the statements and 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: execution of 51job's strategies and business plans; behavioral and operational changes of enterprises in meeting their human resource needs as they respond to evolving social, political, regulatory and financial conditions in China; introduction by competitors of new or enhanced products or services; price competition in the market for the various human resource services that 51job provides in China; acceptance of new products and services developed or introduced by 51job outside of the human resources industry; risks related to acquisitions or investments 51job has made or will make in the future; accounting adjustments that may occur during the quarterly or annual close or auditing process; fluctuations in the value of the Renminbi against the U.S. dollar and other currencies; and fluctuations in general economic and business conditions in China. Further information regarding these and other risks are included in 51job's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release and based on assumptions that 51job believes to be reasonable as of this date, and 51job undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact:
Linda Chien
Investor Relations
51job, Inc.
+86-21-6879-6250
ir@51job.com
51job, Inc.
Consolidated Statements of Operations and Comprehensive Income
For the Three Months Ended
December 31,
December 31,
December 31,
2017 2018 2018
(In thousands, except share and per share data)
(unaudited)
(unaudited)
(unaudited)
---
RMB
RMB
US$ (Note 1)
Revenues:
Online recruitment services 519,443 645,952 93,950
Other human resource related revenues 352,663 474,550 69,020
Total revenues 872,106 1,120,502 162,970
Less: Government surcharges (9,054) (11,952) (1,738)
Net revenues 863,052 1,108,550 161,232
Cost of services (Note 2) (230,076) (329,683) (47,950)
Gross profit 632,976 778,867 113,282
Operating expenses:
Sales and marketing (Note 3) (239,621) (264,775) (38,510)
General and administrative (Note 4) (76,093) (88,614) (12,888)
Total operating expenses (315,714) (353,389) (51,398)
Income from operations 317,262 425,478 61,884
Gain (Loss) from foreign currency translation 7,675 (776) (113)
Interest and investment income, net 20,905 34,585 5,030
Change in fair value of convertible senior notes (4,765) 448,868 65,285
Other income, net 11,265 17,692 2,573
Income before income tax expense 352,342 925,847 134,659
Income tax expense (46,877) (71,369) (10,380)
Net income 305,465 854,478 124,279
Net (income) loss attributable to non-controlling interests (108) 1,858 270
Net income attributable to 51job, Inc. 305,357 856,336 124,549
Net income 305,465 854,478 124,279
Other comprehensive income 105,442 137,877 20,053
Total comprehensive income 410,907 992,355 144,332
Earnings per share:
Basic 5.02 13.92 2.02
Diluted (Note 5) 4.42 6.22 0.90
Weighted average number of common shares outstanding:
Basic 60,774,701 61,515,021 61,515,021
Diluted 66,339,820 66,869,587 66,869,587
Notes:
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8755
to US$1.00 on December 31, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly
statistical release of the Federal Reserve Board.
(2) Includes share-based compensation expense of RMB3,639 and RMB4,709 (US$685) for the three months ended
December 31, 2017 and 2018, respectively.
(3) Includes share-based compensation expense of RMB3,128 and RMB4,048 (US$589) for the three months ended
December 31, 2017 and 2018, respectively.
(4) Includes share-based compensation expense of RMB14,349 and RMB19,142 (US$2,784) for the three months ended
December 31, 2017 and 2018, respectively.
(5) Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the
add-back of interest expense of RMB9,240 and RMB9,701 (US$1,411), and the subtraction of foreign currency
translation gain of RMB26,184 and RMB1,292 (US$188) related to the convertible senior notes to the numerator of
net income attributable to 51job for the three months ended December 31, 2017 and 2018, respectively. Also, due
to change in fair value of convertible senior notes, there was an add-back of RMB4,765 and a subtraction of
RMB448,868 (US$65,285) to the numerator of net income attributable to 51job for the three months ended
December 31, 2017 and 2018, respectively, and the addition of the maximum number of 4,035,672 potentially
converted shares related to the convertible senior notes to the denominator of diluted common shares for the
three months ended December 31, 2017 and 2018.
51job, Inc.
Consolidated Statements of Operations and Comprehensive Income
For the Year Ended
December 31,
December 31,
December 31,
2017 2018 2018
(In thousands, except share and per share data)
(unaudited)
(unaudited)
(unaudited)
---
RMB
RMB
US$ (Note 1)
Revenues:
Online recruitment services 1,871,700 2,431,898 353,705
Other human resource related revenues 1,009,515 1,350,048 196,356
Total revenues 2,881,215 3,781,946 550,061
Less: Government surcharges (32,623) (42,245) (6,144)
Net revenues 2,848,592 3,739,701 543,917
Cost of services (Note 2) (763,440) (1,038,766) (151,082)
Gross profit 2,085,152 2,700,935 392,835
Operating expenses:
Sales and marketing (Note 3) (917,784) (1,197,178) (174,122)
General and administrative (Note 4) (296,608) (353,557) (51,423)
Total operating expenses (1,214,392) (1,550,735) (225,545)
Income from operations 870,760 1,150,200 167,290
Gain (Loss) from foreign currency translation 3,630 (112,353) (16,341)
Interest and investment income, net 77,009 113,673 16,533
Change in fair value of convertible senior notes (496,175) 99,079 14,410
Gain from sale of long-term investments - 61,070 8,882
Other income, net 87,032 175,206 25,483
Income before income tax expense 542,256 1,486,875 216,257
Income tax expense (169,493) (242,434) (35,261)
Net income 372,763 1,244,441 180,996
Net (income) loss attributable to non-controlling interests (874) 7,878 1,146
Net income attributable to 51job, Inc. 371,889 1,252,319 182,142
Net income 372,763 1,244,441 180,996
Other comprehensive income 104,665 117,238 17,052
Total comprehensive income 477,428 1,361,679 198,048
Earnings per share:
Basic 6.19 20.42 2.97
Diluted (Note 5) 6.08 19.82 2.88
Weighted average number of common shares outstanding:
Basic 60,087,306 61,318,292 61,318,292
Diluted 61,150,413 63,175,483 63,175,483
Notes:
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8755
to US$1.00 on December 31, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly
statistical release of the Federal Reserve Board.
(2) Includes share-based compensation expense of RMB14,029 and RMB16,316 (US$2,373) for the year ended
December 31, 2017 and 2018, respectively.
(3) Includes share-based compensation expense of RMB12,060 and RMB14,026 (US$2,040) for the year ended
December 31, 2017 and 2018, respectively.
(4) Includes share-based compensation expense of RMB59,879 and RMB74,623 (US$10,854) for the year ended
December 31, 2017 and 2018, respectively.
(5) Diluted earnings per share is calculated in accordance with the "if converted" method. The potential
conversion of the convertible senior notes was excluded in the computation of diluted earnings per share for the
year ended December 31, 2017 and 2018 because the effect would be anti-dilutive.
51job, Inc.
Reconciliation of GAAP and Non-GAAP Results
For the Three Months Ended
December 31,
December 31,
December 31,
2017 2018 2018
(In thousands, except share and per share data)
(unaudited)
(unaudited)
(unaudited)
---
RMB
RMB
US$ (Note 1)
GAAP income before income tax expense 352,342 925,847 134,659
Add back: Share-based compensation 21,116 27,899 4,058
Add back: (Gain) Loss from foreign currency translation (7,675) 776 113
Add back: Change in fair value of convertible senior notes 4,765 (448,868) (65,285)
Non-GAAP income before income tax expense 370,548 505,654 73,545
GAAP income tax expense (46,877) (71,369) (10,380)
Tax effect of non-GAAP line items (169) (78) (11)
Non-GAAP income tax expense (47,046) (71,447) (10,391)
Non-GAAP adjusted net income 323,502 434,207 63,154
Non-GAAP adjusted net income attributable to 51job, Inc. 323,394 436,065 63,424
Non-GAAP adjusted earnings per share:
Basic 5.32 7.09 1.03
Diluted (Note 2) 5.01 6.67 0.97
Weighted average number of common shares outstanding:
Basic 60,774,701 61,515,021 61,515,021
Diluted 66,339,820 66,869,587 66,869,587
For the Year Ended
December 31,
December 31,
December 31,
2017 2018 2018
(In thousands, except share and per share data)
(unaudited)
(unaudited)
(unaudited)
---
RMB
RMB
US$ (Note 1)
GAAP income before income tax expense 542,256 1,486,875 216,257
Add back: Share-based compensation 85,968 104,965 15,267
Add back: (Gain) Loss from foreign currency translation (3,630) 112,353 16,341
Add back: Change in fair value of convertible senior notes 496,175 (99,079) (14,410)
Non-GAAP income before income tax expense 1,120,769 1,605,114 233,455
GAAP income tax expense (169,493) (242,434) (35,261)
Tax effect of non-GAAP line items (101) (32) (5)
Non-GAAP income tax expense (169,594) (242,466) (35,266)
Non-GAAP adjusted net income 951,175 1,362,648 198,189
Non-GAAP adjusted net income attributable to 51job, Inc. 950,301 1,370,526 199,335
Non-GAAP adjusted earnings per share:
Basic 15.82 22.35 3.25
Diluted (Note 3) 15.16 20.94 3.05
Weighted average number of common shares outstanding:
Basic 60,087,306 61,318,292 61,318,292
Diluted 64,799,349 67,211,155 67,211,155
Notes:
(1) The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of RMB6.8755
to US$1.00 on December 31, 2018 in New York for cable transfers of Renminbi as set forth in the H.10 weekly
statistical release of the Federal Reserve Board.
(2) Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the add-back
of interest expense of RMB9,240 and RMB9,701 (US$1,411) related to the convertible senior notes to the numerator
of non-GAAP adjusted net income attributable to 51job for the three months ended December 31, 2017 and 2018,
respectively. The maximum number of 4,035,672 potentially converted shares related to the convertible senior notes
was added to the denominator of diluted common shares for the three months ended December 31, 2017 and 2018.
(3) Diluted earnings per share is calculated in accordance with the "if converted" method. This includes the add-back
of interest expense of RMB37,799 and RMB37,191 (US$5,409) related to the convertible senior notes to the numerator
of non-GAAP adjusted net income attributable to 51job for the year ended December 31, 2017 and 2018,
respectively. The maximum number of 4,035,672 potentially converted shares related to the convertible senior notes
was added to the denominator of diluted common shares for the year ended December 31, 2017 and 2018.
51job, Inc.
Consolidated Balance Sheets
As of
December 31,
December 31,
December 31,
2017 2018 2018
(In thousands, except share and per share data)
(unaudited)
(unaudited)
(unaudited)
RMB
RMB
US$ (Note 1)
ASSETS
Current assets:
Cash 2,292,476 1,968,351 286,285
Restricted cash 249 5,770 839
Short-term investments 4,839,550 6,865,886 998,602
Accounts receivable (net of allowance of RMB5,384
and RMB11,014 as of December 31, 2017 and 2018,
respectively) 186,861 230,065 33,462
Prepayments and other current assets 559,105 606,918 88,273
Total current assets 7,878,241 9,676,990 1,407,461
---
Non-current assets:
Long-term investments 433,886 729,095 106,042
Property and equipment, net 497,845 527,020 76,652
Goodwill 1,021,454 1,036,124 150,698
Intangible assets, net 162,024 244,446 35,553
Other long-term assets 17,370 9,736 1,416
Deferred tax assets 12,912 15,005 2,182
Total non-current assets 2,145,491 2,561,426 372,543
---
Total assets 10,023,732 12,238,416 1,780,004
===
LIABILITIES, MEZZANINE EQUITY AND EQUITY
Current liabilities:
Accounts payable 35,532 49,881 7,255
Salary and employee related accrual 134,966 164,134 23,872
Taxes payable 230,734 191,793 27,895
Advance from customers 937,981 1,126,300 163,814
Convertible senior notes, current 1,725,182 250,917
Other payables and accruals 703,441 952,178 138,489
Total current liabilities 2,042,654 4,209,468 612,242
---
Non-current liabilities:
Deferred tax liabilities 121,348 210,752 30,653
Convertible senior notes, non-current 1,667,967 -
Total non-current liabilities 1,789,315 210,752 30,653
---
Total liabilities 3,831,969 4,420,220 642,895
---
Mezzanine equity:
Redeemable non-controlling interests 228,230 225,645 32,818
Shareholders' equity:
Common shares (US$0.0001 par value: 500,000,000
shares authorized, 61,853,004 and 61,874,716
shares issued and outstanding as of December 31,
2017 and 2018, respectively) 50 50 7
Additional paid-in capital 1,809,732 2,055,036 298,893
Statutory reserves 13,874 17,279 2,513
Accumulated other comprehensive income 136,947 254,185 36,970
Retained earnings 3,993,777 5,242,691 762,518
Total 51job, Inc. shareholders' equity 5,954,380 7,569,241 1,100,901
Non-controlling interests 9,153 23,310 3,390
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Total equity 5,963,533 7,592,551 1,104,291
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Total liabilities, mezzanine equity and equity 10,023,732 12,238,416 1,780,004
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Note (1): The conversion of Renminbi amounts into U.S. dollar amounts is based on the noon buying rate of
RMB6.8755 to US$1.00 on December 31, 2018 in New York for cable transfers of Renminbi as set forth in the H.10
weekly statistical release of the Federal Reserve Board.
View original content:http://www.prnewswire.com/news-releases/51job-inc-reports-fourth-quarter-and-fiscal-year-2018-financial-results-300803973.html
SOURCE 51job, Inc.
