China Distance Education Holdings Limited Reports Financial Results for Second Quarter Fiscal Year 2019
BEIJING, May 15, 2019 /PRNewswire/ -- China Distance Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a leading provider of online education and value-added services for professionals and corporate clients in China, today announced unaudited financial results for the second quarter of fiscal year 2019 ended March 31, 2019.
Second Quarter Fiscal 2019 Financial and Operational Highlights
-- Net revenue increased by 30.3% to $38.8 million from $29.7 million in
the prior year period.
-- Total course enrollments were 642,000, an increase of 8.9% from the
second quarter of fiscal 2018.
-- Cash receipts from online course registration were $57.0 million, a
29.8% increase from the second quarter of fiscal 2018.
-- Gross profit increased by 39.9% to $15.5 million from $11.1 million in
the prior year period.
-- Non-GAAP([1]) gross profit increased by 39.6% to $15.5 million from
$11.1 million in the prior year period.
-- Gross margin was 39.9%, compared with 37.2% in the prior year period.
Non-GAAP([1]) gross margin was 39.9%, compared with 37.3% in the prior
year period.
-- Operating loss was $4.1 million, compared with $2.9 million in the prior
year period.
-- Non-GAAP([1]) operating loss was $3.6 million, compared with $2.4
million in the prior year period.
-- Net loss was $3.9 million, compared with net loss of $3.3 million in the
prior year period.
-- Non-GAAP([1]) net loss was $3.4 million, compared with non-GAAP([1]) net
loss of $2.7 million in the prior year period.
-- Basic and diluted net loss per American Depositary Share ("ADS") were
$0.116, compared with basic and diluted net loss per ADS of $0.098 for
the second quarter of fiscal 2018. Each ADS represents four ordinary
shares.
-- Basic and diluted non-GAAP([1]) net loss per ADS were $0.101, compared
with basic and diluted non-GAAP([1]) net loss per ADS of $0.082 for the
second quarter of fiscal 2018.
-- Cash flow from operations increased by 128.8% to $16.5 million from $7.2
million in the second quarter of fiscal 2018.
-- CDEL's controlled company Beijing Zhengbao Yucai Education Technology
Company Limited completed its voluntary delisting from the New Third
Board, the over-the-counter stock exchange in China, on April 22, 2019.
-- On May 15, 2019, CDEL decided to acquire an additional 9% equity
interest in Beijing Ruida Chengtai Education Technology Co., Ltd.
("Beijing Ruida"), a company engaged in exam preparation services for
participants in China's Legal Professional Qualification Examination,
for a total consideration of RMB38.3 million ($5.6 million), bringing
the Company's total equity interest in Beijing Ruida from 51% in the
second quarter of fiscal 2019 to 60%. The transaction is expected to
close in the third quarter of fiscal 2019.
Mr. Zhengdong Zhu, Chairman and CEO of CDEL, said, "In the second quarter of fiscal 2019, revenue grew 30.3% year-over-year, exceeding the high end of our guidance range, primarily driven by the strong growth of our accounting vertical together with a significant increase in revenue from the sale of learning simulation software. Revenue from the legal vertical generated by Beijing Ruida also contributed to the growth. Total enrollment growth was 8.9% year-over-year in the second quarter, primarily due to the substantial enrollment growth in accounting and engineering & construction (E&C) continuing education courses. Cash receipts from online course registration grew 29.8% year-over-year in the second quarter, reflecting the continued popularity of our longer duration premium and elite classes."
Mr. Zhu concluded, "We are pleased with our second quarter revenue performance as well as the strong momentum of cash receipts growth during the first half of fiscal year 2019. We attribute our performance to our robust lifelong learning ecosystem, well-diversified business model, reputable brand, and a firm commitment to helping our students achieve superior learning outcomes. Recently, the Company decided to increase its equity interest in Beijing Ruida to 60%, from 51% in the second quarter fiscal 2019, based on Ruida's high-quality legal education courseware and considerable growth potential. This strategic investment decision reflects our dedication to further enhancing the Company's comprehensive lifelong learning ecosystem. Looking ahead, we will remain focused on delivering best-of-breed courseware and value-added services to our students at different stages of their careers, and strive to be the premier education partner for our students throughout their lifelong learning journey."
Mr. Mark Marostica, Co-Chief Financial Officer of CDEL, said, "Similar to the second quarters of fiscal 2018 and fiscal 2017, we recorded an operating loss in the second quarter of fiscal 2019, as it is typically the lowest revenue quarter of our fiscal year due to seasonality. In addition, the operating loss of the second quarter fiscal 2019 was more pronounced due to our acquisition of Beijing Ruida in July 2018, as Beijing Ruida has quarterly revenue seasonality similar to CDEL's core business, and the operating results of Beijing Ruida include $1.7 million amortization expenses of intangibles arising from the acquisition of Beijing Ruida."
Mr. Marostica, continued, "Despite the first half of fiscal year 2019 operating loss, we believe we will see year-over-year improvement in our operating margins in fiscal year 2019 as a result of our expectation of healthy revenue growth in the fiscal year, together with the implementation of certain expense control measures. As we head into our second half of fiscal year 2019, we are focused on continuing to balance growth with a strong emphasis on profitability and expense controls."
CEO Share Purchase Plan
As announced on June 25, 2018 by the Company, Mr. Zhengdong Zhu, Chairman and CEO of CDEL, had informed the Company of his intention to use his personal funds to purchase the Company's shares for an amount up to a maximum of $25 million within one year. As of May 15, 2019, Mr. Zhu had bought a total of approximately $11.1 million of the Company's ordinary shares and ADSs pursuant to a 10b5-1 plan in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
Second Quarter Fiscal 2019 Financial Results
Net Revenue. Total net revenue increased by 30.3% to $38.8 million in the second quarter of fiscal 2019 from $29.7 million in the second quarter of fiscal 2018. Net revenue from online education services, books and reference materials, and other sources contributed 71.9%, 14.0% and 14.1%, respectively, of total net revenues for the second quarter of fiscal 2019.
Online education services. Net revenue from online education services increased by 19.2% to $27.9 million in the second quarter of fiscal 2019 from $23.4 million in the second quarter of fiscal 2018, mainly due to revenue growth from the accounting vertical. Revenues from courses of Intermediate and Advance Level Accounting Professional Qualifications Exams ("APQE"), and CPA Qualification Exam grew strongly in the second quarter of fiscal 2019. This increase was partially offset by the decrease in revenue from Elementary APQE courses.
Books and reference materials. Net revenue from books and reference materials increased by 288.3% to $5.4 million in the second quarter of fiscal 2019 from $1.4 million in the second quarter of fiscal 2018, mainly due to book sale revenue from the Legal Professional Qualification Examination contributed by Beijing Ruida. Book sale revenue from our core accounting professional exams also contributed to the growth.
Others. Net revenue from other sources increased by 10.5% to $5.5 million in the second quarter of fiscal 2019 from $5.0 million in the second quarter of fiscal 2018, primarily due to a significant increase in revenue from the sale of learning simulation software. This increase was partially offset by the decrease in revenue from the "Tax School Program" which we disposed in the first quarter of fiscal 2019.
Cost of Sales. Cost of sales increased by 24.6% to $23.3 million in the second quarter of fiscal 2019 from $18.7 million in the second quarter of fiscal 2018. Non-GAAP([1]) cost of sales increased by 24.8% to $23.3 million in the second quarter of fiscal 2019 from $18.7 million in the second quarter of fiscal 2018. The increase was mainly due to the increase in cost of purchase related to the sale of learning simulation software, cost of books and reference materials, and expenses associated with Beijing Ruida, including amortization expenses of intangibles arising from its acquisition of $1.7 million. This increase was partially offset by the decrease in salaries and related expenses.
Gross Profit and Gross Margin. Gross profit was $15.5 million in the second quarter of fiscal 2019, up 39.9% from $11.1 million in the prior year period. Non-GAAP([1]) gross profit was $15.5 million, increasing by 39.6% from $11.1 million in the prior year period. Gross margin was 39.9% in the second quarter of fiscal 2019, compared with 37.2% in the second quarter of fiscal 2018. Non-GAAP([1]) gross margin was 39.9% in the second quarter of fiscal 2019, compared with 37.3% in the second quarter of fiscal 2018.
Operating Expenses. Total operating expenses increased by 44.5% to $20.4 million in the second quarter of fiscal 2019, from $14.1 million in the prior year period. Non-GAAP([1]) total operating expenses increased by 46.4% to $19.9 million in the second quarter of fiscal 2019, from $13.6 million in the prior year period.
Selling expenses. Selling expenses increased by 65.5% to $13.8 million in the second quarter of fiscal 2019 from $8.3 million in the prior year period. Non-GAAP([1]) selling expenses increased by 65.9% to $13.8 million in the second quarter of fiscal 2019 from $8.3 million in the prior year period. The increase was primarily driven by the increase in salaries and related expenses, higher commissions to agents, higher advertising and promotional expenses, expenses associated with Beijing Ruida, and other miscellaneous selling expenses.
General and administrative expenses. General and administrative expenses increased by 14.1% to $6.6 million in the second quarter of fiscal 2019 from $5.8 million in the prior year period. Non-GAAP([1]) general and administrative expenses increased by 15.5% to $6.1 million in the second quarter of fiscal 2019 from $5.3 million in the prior year period. The increase was mainly due to the increase in salaries and related expenses, and expenses associated with Beijing Ruida.
Income Tax Benefit. Income tax benefit decreased by 6.7% to $1.3 million in the second quarter of fiscal 2019 from $1.4 million in the prior year period, primarily due to a lower estimated effective tax rate applied in fiscal year 2019, compared with the prior year period.
Net Loss. As a result of the foregoing, net loss was $3.9 million in the second quarter of fiscal 2019, compared with net loss of $3.3 million in the prior year period. Non-GAAP([1]) net loss was $3.4 million in the second quarter of fiscal 2019, compared with non-GAAP([1]) net loss of $2.7 million in the prior year period.
Operating Cash Flow. Net operating cash inflow increased by 128.8% to $16.5 million in the second quarter of fiscal 2019 from $7.2 million in the prior year period. The operating cash inflow was mainly attributable to the increase in deferred revenue generated from our professional education services segment. The operating cash inflow was partially offset by the increase in accounts receivable, prepayments and other current assets, and the decrease in accrued expenses and other liabilities, income tax payable, deferred tax liabilities, and amount due to a related party.
Cash and Cash Equivalents, Restricted Cash and Short-term Investments. Cash and cash equivalents, restricted cash and short-term investments as of March 31, 2019 increased by 17.7% to $130.1 million from $110.5 million as of December 31, 2018, mainly due to the operating cash inflow generated in the second quarter of fiscal 2019, which was partially offset by the capital expenditure of $1.7 million.
First Six Months of Fiscal 2019 Financial Results
Net Revenue. Total net revenue increased by 24.0% to $81.4 million in the first six months of fiscal 2019 from $65.6 million in the first six months of fiscal 2018. Net revenue from online education services, books and reference materials, and other sources contributed 65.0%, 14.5% and 20.5%, respectively, of total net revenues for the first six months of fiscal 2019.
Online education services. Net revenue from online education services increased by 15.5% to $52.9 million in the first six months of fiscal 2019 from $45.8 million in the first six months of fiscal 2018.
Books and reference materials. Net revenue from books and reference materials increased by 213.3% to $11.8 million in the first six months of fiscal 2019 from $3.8 million in the first six months of fiscal 2018.
Others. Net revenue from other sources increased by 3.9% to $16.7 million in the first six months of fiscal 2019 from $16.0 million in the first six months of fiscal 2018.
Cost of Sales. Cost of sales increased by 31.9% to $48.9 million in the first six months of fiscal 2019 from $37.1 million in the first six months of fiscal 2018. Non-GAAP([1]) cost of sales increased by 32.1% to $48.9 million in the first six months of fiscal 2019 from $37.0 million in the first six months of fiscal 2018.
Gross Profit and Gross Margin. Gross profit was $32.5 million in the first six months of fiscal 2019, up 13.8% from $28.6 million in the prior year period. Non-GAAP([1]) gross profit was $32.5 million, increasing by 13.6% from $28.6 million in the prior year period. Gross margin was 39.9% in the first six months of fiscal 2019, compared with 43.5% in the first six months of fiscal 2018. Non-GAAP([1]) gross margin was 40.0% in the first six months of fiscal 2019, compared with 43.6% in the first six months of fiscal 2018.
Operating Expenses. Total operating expenses increased by 45.9% to $41.2 million in the first six months of fiscal 2019 from $28.2 million in the prior year period. Non-GAAP([1]) total operating expenses increased by 47.6% to $40.2 million in the first six months of fiscal 2019 from $27.2 million in the prior year period.
Selling expenses. Selling expenses increased by 62.0% to $28.3 million in the first six months of fiscal 2019 from $17.5 million in the prior year period. Non-GAAP([1]) selling expenses increased by 62.3% to $28.3 million in the first six months of fiscal 2019 from $17.4 million in the prior year period.
General and administrative expenses. General and administrative expenses increased by 19.9% to $12.9 million in the first six months of fiscal 2019 from $10.8 million in the prior year period. Non-GAAP([1]) general and administrative expenses increased by 21.5% to $11.9 million in the first six months of fiscal 2019 from $9.8 million in the prior year period.
Gain on Deconsolidation of a Subsidiary. Gain on deconsolidation of a subsidiary of $6.9 million related to the gain on disposal of 60% equity interest, and fair value change of remaining 40% equity interest, in Champion Tax Advisory or "Tax School Program."
Income Tax Benefit. Income tax benefit decreased by 49.6% to $0.4 million in the first six months of fiscal 2019 from $0.8 million in the prior year period.
Net Loss. As a result of the foregoing, net loss was $2.0 million in the first six months of fiscal 2019, compared with $3.2 million in the prior year period. Non-GAAP([1]) net loss was $1.0 million in the first six months of fiscal 2019, compared with non-GAAP([1]) net loss of $2.1 million in the prior year period.
Operating Cash Flow. Net operating cash inflow increased by 91.0% to $41.3 million in the first six months of fiscal 2019 from $21.6 million in the prior year period.
Outlook
For the third quarter of fiscal 2019, the Company expects to generate total net revenue in the range of $61.6 million to $64.0 million, representing year-over-year growth of approximately 30% to 35%.
For fiscal year 2019, the Company expects to generate total net revenues in the range of $210.0 million to $218.3 million, representing year-over-year growth of approximately 26% to 31%. The Company's prior fiscal 2019 full-year total net revenue guidance range was $208.3 million to $216.7 million.
The above guidance reflects the Company's current and preliminary view, which is subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, May 16, 2019 (8:00 p.m. Beijing Time on Thursday, May 16, 2019) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
US Toll Free: +1-866-519-4004
International: +65-6713-5090
Mainland China: 400-620-8038
Hong Kong: +852-3018-6771
United Kingdom: +44-203-6214-779
Passcode: CDEL or DL
A telephone replay will be available two hours after the call until May 23, 2019 by dialing:
US Toll Free: +1-855-452-5696
International: +61-2-8199-0299
Mainland China: 400-632-2162
Hong Kong: 800-963-117
United Kingdom: 0808-234-0072
Replay Passcode: 2589101
Additionally, a live and archived webcast of the conference call will be available at http://ir.cdeledu.com.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider of online education and value-added services for professionals and corporate clients in China. The courses offered by the Company through its websites are designed to help professionals seeking to obtain and maintain professional licenses and to enhance their job skills through our professional development courses in China in the areas of accounting, healthcare, engineering & construction, legal and other industries. The Company also offers online test preparation courses for self-taught learners pursuing higher education diplomas or degrees, practical accounting training courses for college students and working professionals, as well as third-party developed online courses. In addition, the Company provides business services to corporate clients, including but not limited to tax advisory and accounting outsourcing services. For further information, please visit http://ir.cdeledu.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "may," "should," "potential," "continue," "expect," "predict," "anticipate," "future," "intend," "plan," "believe," "is/are likely to," "estimate" and similar statements. Among other things, the outlook for the third quarter and full fiscal year 2019 and quotations from management in this announcement, as well as the Company's strategic and operational plans (in particular, the anticipated benefits of strategic growth initiatives, including the promotion of the Company's lifelong learning ecosystem, as well as cost control and year-over-year improvement of operating margins) contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic and annual reports to the SEC, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and growth strategies; future prospects and market acceptance of our courses and other products and services; our future business development and results of operations; projected revenues, profits, earnings and other estimated financial information; projected enrollment numbers; our plans to expand and enhance our courses and other products and services; competition in the education and test preparation markets; and Chinese laws, regulations and policies, including those applicable to the Internet, Internet content providers, the education and telecommunications industries, mergers and acquisitions, taxation and foreign exchange.
Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed or furnished with the SEC. All information provided in this press release is as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth in this press release is preliminary and subject to adjustments. Adjustments to the financial statements may be identified when audit work is performed for the year-end audit, which could result in significant differences from this preliminary unaudited financial information.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial results presented in accordance with U.S. generally accepted accounting principles, or GAAP, the Company uses the following measures defined as non-GAAP financial measures: non-GAAP net income, operating income, gross profit, cost of sales, selling expenses, general and administrative expenses, net income margin, operating margin, gross profit margin, and basic and diluted earnings per ADS and per share. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to comparable GAAP measures" set forth at the end of this release.
The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses. However, non-GAAP financial measures may not be indicative of the Company's operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance and liquidity. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of excluding share-based compensation expenses from the above-mentioned line items and presenting these non-GAAP measures is that such items may continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for this limitation by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this release provides more detail on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Contacts:
China Distance Education Holdings The Piacente Group |
Limited Investor Relations
Investor Relations Department
Brandi Piacente
Tel: +86-10-8231-9999 ext. 1826 Tel: +1 212-481-2050
Email: IR@cdeledu.com Email: DL@tpg-ir.com
[1] For more information
about the non-GAAP
financial measures contained
in this press release,
please see "Use of Non-GAAP
Financial Measures" below.
(Financial Tables on Following Pages)
China Distance Education Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(in thousands of US Dollars, except number of shares and per share data)
September 30
, 20
18 March 31, 2019
Assets:
Current assets:
Cash and cash equivalents 30,826 62,708
Restricted cash 51,736 48,090
Short term investments 17,073 19,270
Accounts receivable, net of allowance for doubtful accounts of US$1,513 and 7,280 6,475
US$1,342 as of March 31, 2019 and September 30, 2018,respectively
Inventories 2,782 4,339
Prepayment and other current assets 17,054 23,617
Deferred cost 1,125 1,455
Total current assets 127,876 165,954
Non-current assets:
Property, plant and equipment, net 27,972 40,368
Goodwill 79,516 81,287
Long term investments 33,837 37,537
Other intangible assets, net 39,500 36,519
Deposit for purchase of non-current assets 8,126 3,007
Deferred tax assets 5,711 4,912
Other non-current assets 6,387 10,979
Total non-current assets 201,049 214,609
Total assets 328,925 380,563
Liabilities and equity:
Current liabilities:
Bank borrowings 50,975 51,843
Accrued expenses and other liabilities (including accrued expenses and other 42,141 36,152
liabilities of the consolidated VIE without recourse to China Distance Education
Holdings Limited of US$30,378 and US$34,993 as of March 31, 2019 and
September 30, 2018,respectively)
Amount due to a related party 798
Income tax payable (including income tax payable of the consolidated VIE without 9,293 6,069
recourse to China Distance Education Holdings Limited of US$5,425 and
US$$4,847 as of March 31, 2019 and September 30, 2018, respectively)
Deferred revenue - current portion (including deferred revenue of the consolidated 78,194 103,022
VIE without recourse to China Distance Education Holdings Limited of US$102,131
and US$77,299 as of March 31, 2019 and September 30, 2018, respectively)
Refundable fees - current portion (including refundable fees of the consolidated VIE 13,837 1,036
without recourse to China Distance Education Holdings Limited of US$1,036 and
US$13,837 as of March 31, 2019 and September 30, 2018, respectively)
Total current liabilities 194,440 198,920
Non-c
urrent liabilities
:
Deferred revenue - non-current portion (including deferred revenue of the 34,624
consolidated VIE without recourse to China Distance Education Holdings Limited
of US$34,624 and nil as of March 31, 2019 and September 30, 2018, respectively)
Refundable fees - non-current portion (including refundable fees of the consolidated 2,249
VIE without recourse to China Distance Education Holdings Limited of US$2,249
and nil as of March 31, 2019 and September 30, 2018, respectively)
Deferred tax liabilities 12,693 12,062
Long-term bank borrowing 12,027 6,348
Total
non-
current liabilities 24,720 55,283
Total liabilities 219,160 254,203
Equity:
Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 13 13
134,230,689 and 133,275,521 shares issued and outstanding at March 31, 2019 and
September 30, 2018, respectively)
Additional paid-in capital 21,557 22,591
Accumulated other comprehensive loss (7,013) (619)
Retained Earnings 29,717 37,452
Total China Distance Education Holdings Limited shareholder's equity 44,274 59,437
Noncontrolling interest 65,491 66,923
Total equity 109,765 126,360
Total liabilities and equity 328,925 380,563
China Distance Education Holdings Limited
Unaudited Condensed
Consolidated Statements Of
Operations
(in thousands of US dollars, except number of shares, per share and per ADS data)
Three Months Ended
March
31
,
2018 2019
Sales, net of business tax, value-added tax and related surcharges:
Online education services 23,396 27,878
Books and reference materials 1,391 5,401
Others 4,961 5,482
- Sale of learning simulation software 739 1,962
- Business start-up training services 642 692
- Others 3,580 2,828
Total net revenues 29,748 38,761
Cost of sales
Cost of services and others (17,550) (19,453)
Cost of tangible goods sold (1,130) (3,826)
Total cost of sales (18,680) (23,279)
Gross profit 11,068 15,482
Operating expenses
Selling expenses (8,341) (13,801)
General and administrative expenses (5,766) (6,581)
Total operating expenses (14,107) (20,382)
Other operating income 128 842
Operating
loss (2,911) (4,058)
Interest income 667 524
Interest expense (869) (796)
Exchange loss (3,109) (2,177)
Loss
before income taxes (6,222) (6,507)
Income tax benefit 1,431 1,335
Loss from equity method investment (16) (642)
Net
loss (4,807) (5,814)
Net loss attributable to noncontrolling interest 1,542 1,939
Net
loss
attributable to
China Distance Education Holdings Limited (3,265) (3,875)
Net loss
per share
:
Net loss
attributable to
China Distance Education Holdings Limited
shareholders
Basic (0.025) (0.029)
Diluted (0.025) (0.029)
Net loss
per ADS
:
Net loss
attributable to
China Distance Education Holdings Limited
shareholders
Basic (0.098) (0.116)
Diluted (0.098) (0.116)
Weighted average shares used in calculating net
loss
per share:
Basic 132,411,344 133,009,706
Diluted 132,411,344 133,009,706
China Distance Education Holdings Limited
Unaudited Condensed
Consolidated Statements Of
Operations
(in thousands of US dollars, except number of shares, per share and per ADS data)
Six
Months Ended
March 31,
2018 2019
Sales, net of business tax, value-added tax and related surcharges:
Online education services 45,829 52,921
Books and reference materials 3,768 11,806
Others 16,029 16,657
- Sale of learning simulation software 6,899 6,965
- Business start-up training services 2,048 1,372
- Others 7,082 8,320
Total net revenues 65,626 81,384
Cost of sales
Cost of services and others (33,888) (41,626)
Cost of tangible goods sold (3,172) (7,262)
Total cost of sales (37,060) (48,888)
Gross profit 28,566 32,496
Operating expenses
Selling expenses (17,463) (28,285)
General and administrative expenses (10,762) (12,907)
Total operating expenses (28,225) (41,192)
Other operating income 1,857 2,465
Operating
income/(loss) 2,198 (6,231)
Interest income 1,123 1,188
Interest expense (1,616) (1,590)
Gain from deconsolidation of a subsidiary 6,869
Exchange loss (5,008) (2,101)
Loss
before income taxes (3,303) (1,865)
Income tax benefit 760 383
Loss from equity method investment (45) (363)
Net
loss (2,588) (1,845)
Net income attributable to noncontrolling interest (583) (117)
Net
loss
attributable to
China Distance Education Holdings Limited (3,171) (1,962)
Net loss
per share
:
Net loss
attributable to
China Distance Education Holdings Limited
shareholders
Basic (0.024) (0.015)
Diluted (0.024) (0.015)
Net loss
per ADS
:
Net loss
attributable to
China Distance Education Holdings Limited
shareholders
Basic (0.096) (0.059)
Diluted (0.096) (0.059)
Weighted average shares used in calculating net
loss
per share:
Basic 132,035,108 132,901,311
Diluted 132,035,108 132,901,311
China Distance Education Holdings Limited
Reconciliations of non-GAAP measures to comparable GAAP measures
(In thousands of US Dollars, except number of shares, per share and per ADS data)
Three Months Ended
March 31,
2018 2019
(Unaudited) (Unaudited)
Cost of sales 18,680 23,279
Share-based compensation
expense in cost of sales 26
Non-GAAP cost of sales 18,654 23,279
Selling expenses 8,341 13,801
Share-based compensation
expense in selling expenses 20
Non-GAAP selling expenses 8,321 13,801
General and administrative
expenses 5,766 6,581
Share-based compensation
expense in general and
administrative expenses 508 506
Non-GAAP general and
administrative expenses 5,258 6,075
Gross profit 11,068 15,482
Share-based compensation
expenses 26
Non-GAAP gross profit 11,094 15,482
Gross profit margin 37.2% 39.9%
Non-GAAP gross profit margin 37.3% 39.9%
Operating loss (2,911) (4,058)
Share-based compensation
expenses 554 506
Non-GAAP operating loss (2,357) (3,552)
Operating margin (9.8%) (10.5%)
Non-GAAP operating margin (7.9%) (9.2%)
Net loss (3,265) (3,875)
Share-based compensation
expense 554 506
Non-GAAP net loss (2,711) (3,369)
Net loss margin (11.0%) (10.0%)
Non-GAAP net loss margin (9.1%) (8.7%)
Net loss per share --basic (0.025) (0.029)
Net loss per share --diluted (0.025) (0.029)
Non-GAAP net loss per share -
- basic (0.020) (0.025)
Non-GAAP net loss per share -
- diluted (0.020) (0.025)
Net loss per ADS attributable
to China Distance Education
Holdings Limited shareholders
--basic (note 1) (0.098) (0.116)
Net loss per ADS attributable
to China Distance Education
Holdings Limited shareholders
--diluted (note 1) (0.098) (0.116)
Non-GAAP net loss per ADS
attributable to China
Distance Education Holdings
Limited shareholders --
basic (note 1)
(0.082) (0.101)
Non-GAAP net loss per ADS
attributable to China
Distance Education Holdings
Limited shareholders --
diluted (note 1)
(0.082) (0.101)
Weighted average shares used
in calculating basic net loss
per share 132,411,344 133,009,706
Weighted average shares used
in calculating diluted net
loss per share 132,411,344 133,009,706
Weighted average shares used
in calculating basic non-
GAAP net loss per share 132,411,344 133,009,706
Weighted average shares used
in calculating diluted non-
GAAP net loss per share 132,411,344 133,009,706
China Distance Education Holdings Limited
Reconciliations of non-GAAP measures to comparable GAAP measures
(In thousands of US Dollars, except number of shares, per share and per ADS data)
Six
Months Ended
March 31,
2018 2019
(Unaudited) (Unaudited)
Cost of sales 37,060 48,888
Share-based compensation
expense in cost of sales 71 23
Non-GAAP cost of sales 36,989 48,865
Selling expenses 17,463 28,285
Share-based compensation
expense in selling expenses 40 10
Non-GAAP selling expenses 17,423 28,275
General and administrative
expenses 10,762 12,907
Share-based compensation
expense in general and
administrative expenses 945 979
Non-GAAP general and
administrative expenses 9,817 11,928
Gross profit 28,566 32,496
Share-based compensation
expenses 71 23
Non-GAAP gross profit 28,637 32,519
Gross profit margin 43.5% 39.9%
Non-GAAP gross profit margin 43.6% 40.0%
Operating income/(loss) 2,198 (6,231)
Share-based compensation
expenses 1,056 1,012
Non-GAAP operating income/
(loss) 3,254 (5,219)
Operating margin 3.3% (7.7%)
Non-GAAP operating margin 5.0% (6.4%)
Net loss (3,171) (1,962)
Share-based compensation
expense 1,056 1,012
Non-GAAP net loss (2,115) (950)
Net loss margin (4.8%) (2.4%)
Non-GAAP net loss margin (3.2%) (1.2%)
Net loss per share --basic (0.024) (0.015)
Net loss per share --diluted (0.024) (0.015)
Non-GAAP net loss per share -
- basic (0.016) (0.007)
Non-GAAP net loss per share -
- diluted (0.016) (0.007)
Net loss per ADS attributable
to China Distance Education
Holdings Limited shareholders
--basic (note 1) (0.096) (0.059)
Net loss per ADS attributable
to China Distance Education
Holdings Limited shareholders
--diluted (note 1) (0.096) (0.059)
Non-GAAP net loss per ADS
attributable to China
Distance Education Holdings
Limited shareholders --
basic (note 1) (0.064) (0.029)
Non-GAAP net loss per ADS
attributable to China
Distance Education Holdings
Limited shareholders --
diluted (note 1) (0.064) (0.029)
Weighted average shares used
in calculating basic net loss
per share 132,035,108 132,901,311
Weighted average shares used
in calculating diluted net
loss per share 132,035,108 132,901,311
Weighted average shares used
in calculating basic non-
GAAP net loss per share 132,035,108 132,901,311
Weighted average shares used
in calculating diluted non-
GAAP net loss per share 132,035,108 132,901,311
Note 1: Each ADS represents four ordinary shares.
View original content:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-financial-results-for-second-quarter-fiscal-year-2019-300851097.html
SOURCE China Distance Education Holdings Ltd.
