RISE Education Announces Fourth Quarter and Full Year 2020 Unaudited Financial Results
BEIJING,
Impact of COVID-19
The outbreak of COVID-19 in late January 2020 had a significant and material adverse impact on the Company's operations through the full year of 2020. In accordance with government regulations to contain the pandemic, RISE's learning centers were temporarily closed for a majority of the time during the period starting
Fourth Quarter of 2020 Financial and Operational Summary
- Total revenues were
RMB364.5 million (US$55.9 million ) for the fourth quarter of 2020, compared withRMB320.0 million for the preceding quarter andRMB416.2 million for the fourth quarter of 2019. - Net income attributable to RISE[1] was
RMB1.4 million (US$0.2 million ) for the fourth quarter of 2020, compared withRMB28.0 million for the preceding quarter andRMB51.1 million for the fourth quarter of 2019. - Non-GAAP net income attributable to RISE was
RMB55.4 million (US$8.5 million ) for the fourth quarter of 2020, compared withRMB35.7 million for the preceding quarter andRMB66.1 million for the fourth quarter of 2019. - Adjusted EBITDA[2] income was
RMB85.3 million (US$13.1 million ) for the fourth quarter of 2020, compared withRMB57.8 million for the preceding quarter andRMB91.0 million for the fourth quarter of 2019. - Students in class[3] for Rise regular courses (including Rise Start and Rise On programs) were 47,724 as of
December 31, 2020 , a decrease of 2,738 from 50,462 as ofSeptember 30, 2020 and a decrease of 6,659 from 54,383 as ofDecember 31, 2019 . - New students enrolled[4] for Rise regular courses in the fourth quarter of 2020 were 8,023, compared with 8,328 for the preceding quarter and 6,200 for the fourth quarter of 2019. New students enrolled for other Rise courses (including Rise Up, Can-Talk, other Rise online courses, STEAM, courses provided by The Edge learning centers and light courses) were 3,231 in the fourth quarter of 2020, compared with 2,510 for the preceding quarter and 1,098 for the fourth quarter of 2019.
- The total number of the Company's learning centers as of
December 31, 2020 was 512, consisting of 92 self-owned (including 2 operated by The Edge) and 420 franchised learning centers.
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[1] Net income attributable to RISE includes the impact from an impairment loss of |
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[2] Adjusted EBITDA excludes share-based compensation expenses and impairment loss on long-term investment from EBITDA. |
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[3] Students in class refers to the students who were taking our ongoing courses as of a given date. |
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[4] New students enrolled refers to the newly acquired students who enrolled in our courses during a given period of time. |
Full Year of 2020 Financial and Operational Summary
- Total revenues were
RMB958.5 million (US$146.9 million ) for the full year of 2020. - Net loss attributable to RISE[5] was
RMB132.4 million (US$20.3 million ) for the full year of 2020. - Non-GAAP net loss attributable to RISE was
RMB60.1 million (US$9.2 million ) for the full year of 2020. - Adjusted EBITDA[6] loss was
RMB9.4 million (US$1.4 million ) for the full year of 2020. - New students enrolled[7] for Rise regular courses in the full year of 2020 were 21,607, compared with 29,049 for the full year of 2019. New students enrolled for other Rise courses, which were taught online (including Rise Up, Can-Talk, other Rise online courses, STEAM, courses provided by The Edge learning centers and light courses) were 40,475 in the full year of 2020, compared with 6,793 for the full year of 2019.
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[5] Net income attributable to RISE includes the impact from an impairment loss of |
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[6] Adjusted EBITDA excludes share-based compensation expenses and impairment loss on long-term investment from EBITDA. |
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[7] New students enrolled refers to the newly acquired students who enrolled in our courses during a given period of time. |
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Three Months Ended |
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(in thousands RMB, except for percentage and per ADS data) |
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Pct. Change YoY |
Pct. Change QoQ |
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Revenues |
416,223 |
320,029 |
364,460 |
-12.4% |
13.9% |
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Operating income |
60,663 |
19,429 |
47,464 |
-21.8% |
144.3% |
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Non-GAAP operating income |
75,647 |
27,128 |
64,391 |
-14.9% |
137.4% |
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Net income attributable to RISE |
51,135 |
28,014 |
1,426 |
-97.2% |
-94.9% |
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Non-GAAP net income attributable to RISE |
66,119 |
35,713 |
55,353 |
-16.3% |
55.0% |
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Net income per ADS attributable to RISE – basic |
0.91 |
0.50 |
0.03 |
-96.7% |
-94.0% |
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Net income per ADS attributable to RISE – diluted |
0.90 |
0.49 |
0.02 |
-97.8% |
-95.9% |
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Non-GAAP net income per ADS attributable to RISE – basic |
1.17 |
0.63 |
0.98 |
-16.2% |
55.6% |
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Non-GAAP net income per ADS attributable to RISE – diluted |
1.16 |
0.63 |
0.97 |
-16.4% |
54.0% |
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Adjusted EBITDA |
90,980 |
57,834 |
85,289 |
-6.3% |
47.5% |
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Full year ended December 31 |
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(in thousands RMB, except for percentage and per ADS data) |
2019 |
2020 |
Pct. Change |
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Revenues |
1,529,447 |
958,467 |
-37.3% |
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Operating income/(loss) |
222,789 |
(138,393) |
-162.1% |
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Non-GAAP operating income/(loss) |
288,052 |
(103,030) |
-135.8% |
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Net income/(loss) attributable to RISE |
148,100 |
(132,433) |
-189.4% |
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Non-GAAP net income/(loss) attributable to RISE |
213,363 |
(60,070) |
-128.2% |
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Net income/(loss) per ADS attributable to RISE – basic |
2.58 |
(2.35) |
-191.1% |
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Net income/(loss) per ADS attributable to RISE – diluted |
2.55 |
(2.35) |
-192.2% |
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Non-GAAP net income/(loss) per ADS attributable to RISE – basic |
3.71 |
(1.06) |
-128.6% |
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Non-GAAP net income/(loss) per ADS attributable to RISE – diluted |
3.67 |
(1.06) |
-128.9% |
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Adjusted EBITDA |
349,308 |
(9,371) |
-102.7% |
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Ms.
Mr. Warren Wang, Chief Financial Officer of RISE, added, "Total revenue reached the high end of our guidance at
Financial Results for the Fourth Quarter of 2020
Revenues
Total revenues for the fourth quarter of 2020 increased by
- Revenues from educational programs for the fourth quarter of 2020 increased by 11.0% quarter-over-quarter and decreased by 14.7% year-over-year to
RMB325.8 million (US$49.9 million ). The quarter-over-quarter increase in revenues from educational programs was primarily attributed to the full resumption of the offline operation inBeijing andShijiazhuang by the end ofSeptember 2020 after the reopening of the Company's self-owned learning centers in other locations acrossShanghai ,Guangzhou ,Shenzhen andWuxi sinceJune 2020 as the COVID-19 situation alleviated. The year-over-year decrease in revenues from educational programs was primarily due to the decline of students in class as a result of business impact from COVID-19. - Franchise revenues for the fourth quarter of 2020 increased by 49.3% quarter-over-quarter and increased by 13.8% year-over year to
RMB37.8 million (US$5.8 million ). The quarter-over-quarter increase in franchise revenues was primarily due to growth in recurring franchise revenues as a result of the gradual reopening of franchised learning centers. The year-over-year increase in franchise revenues was primarily due to a growth in initial franchise fees associated with an increase in the number of franchised learning centers from 383 as ofDecember 31, 2019 to 420 as ofDecember 31, 2020 . - Other revenues for the fourth quarter of 2020 decreased by 19.7% quarter-over-quarter and by 17.7% year-over year to
RMB0.9 million (US$0.1 million ).
Cost of Revenues
Cost of revenues for the fourth quarter of 2020 decreased by
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[8] Non-GAAP cost of revenues exclude relevant share-based compensation ("SBC") expenses and amortization of certain intangible assets, including teaching course license, acquired as part of the junior ELT business by the Company from certain third-party in 2013 (the "2013 acquisition") from cost of revenues. Non-GAAP operating income adds back SBC expenses and amortization of certain intangible assets, including trademark, acquired as part of the 2013 acquisition. Each of non-GAAP operating expenses, non-GAAP selling and marketing expenses and non-GAAP general and administrative expenses excludes relevant SBC expenses and amortization of certain intangible assets acquired as part of the 2013 acquisition. For details on the calculation of each of these items and the reconciliation of each to the most directly comparable GAAP financial measure, see "About Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results." |
Gross Profit
As a result of the foregoing, the Company recorded a gross profit of
Operating Expenses
Total operating expenses for the fourth quarter of 2020 increased by
- Selling and marketing expenses decreased by 5.0% quarter-over-quarter and by 17.8% year-over-year to
RMB72.1 million (US$11.0 million ) for the fourth quarter of 2020. The quarter-over-quarter and year-over-year decrease was primarily associated with Company's disciplined investment in online and offline marketing activities. Non-GAAP selling and marketing expenses for the fourth quarter of 2020 decreased by 5.3% quarter-over-quarter and by 18.2% year-over-year toRMB70.8 million (US$10.8 million ). - General and administrative expenses increased by 44.2% quarter-over-quarter and by 5.6% year-over-year to
RMB89.0 million (US$13.6 million ) for the fourth quarter of 2020. The quarter-over-quarter increase was primarily associated with (i) increased share-based compensation expenses as a result of the modification and new grant of share-based awards in August andSeptember 2020 , (ii) increased personnel costs related to the online course business. The year-over-year increase was primarily due to increased personnel costs. Non-GAAP general and administrative expenses for the fourth quarter of 2020 increased by 30.3% quarter-over-quarter and by 4.1% year-over-year toRMB77.2 million (US$11.8 million ).
Operating Income
Operating income for the fourth quarter of 2020 was
Interest Expense
Interest expense for the fourth quarter of 2020 was
Other Income
Other income for the fourth quarter of 2020 was
Impairment Loss on
Impairment loss on long-term investment was
Income Tax Expense
Income tax expense for the fourth quarter of 2020 was
Net Income Attributable to RISE
Net income attributable to RISE for the fourth quarter of 2020 was
Non-GAAP net income attributable to RISE for the fourth quarter of 2020 was
EBITDA represents net income/(loss) before interests, taxes, depreciation, and amortization. EBITDA income for the fourth quarter of 2020 was
Adjusted EBITDA income for the fourth quarter of 2020 was
Basic and Diluted Earnings per ADS
Basic and diluted net income attributable to RISE per ADS was
Basic and diluted non-GAAP net income attributable to RISE per ADS was
Cash Flow
Net cash outflow from operating activities for the fourth quarter of 2020 was
Balance Sheet
As of
Current and non-current deferred revenue and customer advances were RMB601.9 million (
Financial Results for the Full Year Ended
Revenues
Total revenues for the full year of 2020 decreased by
- Revenues from educational programs for the full year of 2020 decreased by 34.5% to
RMB872.9 million (US$133.8 million ), primarily due to the temporary suspension of substantially all or part of our offline businesses since late January toSeptember 2020 due to the outbreak and resurgence of COVID-19. - Franchise revenues for the full year of 2020 decreased by 47.6% to
RMB82.1 million (US$12.6 million ), primarily due to a decline in recurring franchise revenue as a result of the temporary closure of franchised learning centers. - Other revenues for the full year of 2020 decreased by 91.4% to
RMB3.5 million (US$0.5 million ).
Cost of Revenues
Cost of revenues for the full year of 2020 decreased by
Gross Profit
Gross profit for the full year of 2020 was RMB355.5 million (
Operating Expenses
Total operating expenses for the full year of 2020 decreased by
- Selling and marketing expenses decreased by 24.0% year-over-year to
RMB233.7 million (US$35.8 million ) for the full year of 2020. The decrease was primarily due to the Company's disciplined investment in online and offline marketing activities and reduced personnel costs resulting from personnel optimization reflecting the impact of the COVID-19 pandemic. Non-GAAP selling and marketing expenses during the full year of 2020 decreased by 24.5% year-over-year toRMB229.0 million (US$35.1 million ). - General and administrative expenses decreased by 14.6% year-over-year to
RMB260.2 million (US$39.9 million ) for the full year of 2020. The decrease was mainly attributable to a decrease in share-based compensation expenses and the Company's efforts on personnel optimization and rigorous control of administrative expenses. Non-GAAP general and administrative expenses for the full year of 2020 decreased by 5.7% year-over-year toRMB245.6 million (US$37.6 million ).
Operating Income/(Loss)
Operating loss for the full year of 2020 was
Interest Expense
Interest expense for the full year of 2020 was
Other Income
Other income for the full year of 2020 was
Impairment Loss on
Impairment loss on long-term investment was
Income Tax Expense/(Benefit)
Income tax benefit for the full year of 2020 was
Net Loss Attributable to RISE
Net loss attributable to RISE for the full year of 2020 was
Non-GAAP net loss attributable to RISE for the full year of 2020 was
EBITDA loss for the full year of 2020 was
Adjusted EBITDA loss for the full year of 2020 was
Basic and Diluted Earnings per ADS
Basic and diluted net loss attributable to RISE per ADS was
Basic and diluted non-GAAP net loss attributable to RISE per ADS was
Cash Flow
Net cash outflow from operating activities for the full year of 2020 was
Business Outlook
Following a relatively stable environment in the fourth quarter of 2020, local resurgence of COVID-19 had an impact on our operation and performance in the first quarter of 2021. Although the full economic impact of COVID-19 is yet to be realized, our current epidemic management approaches have been largely well executed. We believe that we are well-positioned to navigate the rapidly evolving market environment and capture potential opportunities in the education industry. Our learning centers in
Conference Call Information
RISE will hold a conference call on
Conference call preregistration link is http://apac.directeventreg.com/registration/event/4356956. Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.
A telephone replay will be accessible through
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+1-646-254-3697 |
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International: |
+61-2-8199-0299 |
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Mainland China: |
400-6322-162 |
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+852-3051-2780 |
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Conference ID: |
#4356956 |
A live and archived webcast of the conference call, together with a copy of the presentation slides used for the conference call, will also be available at the Company's investor relations website at http://ir.risecenter.com/.
Exchange Rate
This announcement contains translations of certain RMB amounts into
About Non-GAAP Financial Measures
To supplement RISE's financial results presented in accordance with
Non-GAAP cost of revenues, non-GAAP operating expenses, including non-GAAP selling and marketing expenses and non-GAAP general and administrative expenses, provides the Company with an understanding of the results from the primary operations of the Company's business by excluding the effects of certain transaction-related expenses that do not reflect the ordinary operating expenses of the Company's operations and share-based compensation.
EBITDA, adjusted EBITDA and non-GAAP net income/(loss) provide the Company with an understanding of the results from the primary operations of the Company's business by excluding the effects of certain transaction-related expenses that do not reflect the ordinary EBITDA and net income/(loss) of the Company's operations.
The Company uses non-GAAP operating expenses, including non-GAAP selling and marketing expenses and non-GAAP general and administrative expenses, non-GAAP operating income/(loss), Non-GAAP operating margin, EBITDA, adjusted EBITDA, non-GAAP net income/(loss) attributable to RISE, and non-GAAP basic and diluted net income/(loss) per ADS attributable to RISE to evaluate the Company's period-over-period operating performance because the Company's management believes these provide a more comparable measure of the Company's continuing business as it adjusts for transaction-related expenses that are not reflective of the normal earnings of the Company's business. These measures may be useful to an investor in evaluating the underlying operating performance of the Company's business, and to enhance investors' overall understanding of the historical and current financial performance of the Company's continuing operations and prospects for the future.
Non-GAAP financial information should not be considered a substitute for or superior to
Non-GAAP cost of revenues exclude relevant share-based compensation expenses and amortization of certain intangible assets ("IA") acquired as part of the 2013 acquisition from cost of revenues. Non-GAAP operating income/(loss) adds back share-based compensation expenses, amortization of certain intangible assets acquired as part of the 2013 acquisition and impairment loss on long-term investment. Each of non-GAAP operating expenses, non-GAAP selling and marketing expenses or non-GAAP general and administrative expenses excludes relevant share-based compensation expenses and amortization of certain intangible assets acquired as part of the 2013 acquisition. EBITDA represents net income/(loss) before interests, taxes, depreciation and amortization.
For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures."
About RISE Education
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the
Investor Relations Contact
RISE Education
Email: riseir@rdchina.net
Tel: +86 (10) 8559-9191
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) |
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As of |
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RMB |
RMB |
USD |
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ASSETS |
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Current assets: |
|||||
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Cash and cash equivalents |
999,012 |
554,620 |
84,999 |
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Restricted cash |
23,813 |
84,564 |
12,960 |
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Accounts receivable, net |
1,745 |
2,281 |
350 |
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Amounts due from related parties |
191 |
733 |
112 |
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Inventories |
8,685 |
7,814 |
1,198 |
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Prepaid expenses and other current assets |
51,420 |
94,556 |
14,491 |
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Total current assets |
1,084,866 |
744,568 |
114,110 |
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Property and equipment, net |
137,340 |
107,537 |
16,481 |
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Intangible assets, net |
210,346 |
185,647 |
28,452 |
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Long-term investment |
33,000 |
- |
- |
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|
665,416 |
659,255 |
101,035 |
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Deferred tax assets |
11,026 |
34,241 |
5,248 |
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Other non-current assets |
49,638 |
55,853 |
8,560 |
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Operating lease right-of use assets |
610,323 |
639,304 |
97,977 |
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Total assets |
2,801,955 |
2,426,405 |
371,863 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
|||||
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Current portion of long-term loan |
134,015 |
226,744 |
34,750 |
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Accounts payable |
7,553 |
11,028 |
1,690 |
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Accrued expenses and other current liabilities |
202,808 |
164,193 |
25,164 |
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Deferred revenue and customer advances |
716,637 |
563,736 |
86,396 |
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Income taxes payable |
14,594 |
5,556 |
851 |
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Operating lease liabilities, current portion |
157,911 |
197,098 |
30,207 |
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Total current liabilities |
1,233,518 |
1,168,355 |
179,058 |
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Long-term loan |
370,163 |
191,397 |
29,333 |
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Deferred revenue and customer advances |
39,397 |
38,204 |
5,855 |
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Deferred tax liabilities |
31,116 |
24,011 |
3,680 |
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Other non-current liabilities |
39,156 |
50,447 |
7,732 |
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Operating lease liabilities, non-current portion |
464,304 |
452,485 |
69,346 |
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Total liabilities |
2,177,654 |
1,924,899 |
295,004 |
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Shareholders' equity: |
|||||
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Ordinary shares |
6,946 |
6,959 |
1,067 |
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Additional paid-in capital |
583,262 |
603,173 |
92,440 |
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Statutory reserves |
104,830 |
105,357 |
16,147 |
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Accumulated deficit |
(127,059) |
(260,019) |
(39,850) |
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Accumulated other comprehensive income |
40,917 |
39,642 |
6,075 |
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608,896 |
495,112 |
75,879 |
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Non-controlling interests |
15,405 |
6,394 |
980 |
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Total equity |
624,301 |
501,506 |
76,859 |
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Total liabilities, non-controlling interests and |
2,801,955 |
2,426,405 |
371,863 |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(in thousands, except share and ADS data and per share and per ADS data) |
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Three Months Ended |
Full Year Ended Dec. 31 |
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Dec. 31, 2019 |
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2019 |
2020 |
2020 |
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RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||||||
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Revenues |
416,223 |
320,029 |
364,460 |
55,856 |
1,529,447 |
958,467 |
146,891 |
|||||
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Educational programs |
381,955 |
293,619 |
325,805 |
49,932 |
1,332,372 |
872,877 |
133,774 |
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Franchise revenues |
33,172 |
25,287 |
37,753 |
5,786 |
156,509 |
82,084 |
12,580 |
|||||
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Others |
1,096 |
1,123 |
902 |
138 |
40,566 |
3,506 |
537 |
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Cost of revenues |
(183,598) |
(162,918) |
(155,866) |
(23,888) |
(694,693) |
(602,934) |
(92,403) |
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Gross profit/(loss) |
232,625 |
157,111 |
208,594 |
31,968 |
834,754 |
355,533 |
54,488 |
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Selling and marketing expenses |
(87,657) |
(75,911) |
(72,081) |
(11,047) |
(307,339) |
(233,687) |
(35,814) |
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General and administrative |
(84,305) |
(61,771) |
(89,049) |
(13,647) |
(304,626) |
(260,239) |
(39,884) |
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Operating income/(loss) |
60,663 |
19,429 |
47,464 |
7,274 |
222,789 |
(138,393) |
(21,210) |
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Interest income |
4,046 |
3,650 |
3,534 |
542 |
17,952 |
15,091 |
2,313 |
|||||
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Interest expense |
(7,409) |
(5,547) |
(5,390) |
(826) |
(34,093) |
(23,611) |
(3,619) |
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Foreign currency exchange loss |
(77) |
(86) |
(4) |
(1) |
(1,506) |
(187) |
(29) |
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Other income, net |
928 |
16,009 |
5,781 |
886 |
10,115 |
26,961 |
4,132 |
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Impairment Loss on Long-term |
- |
- |
(37,000) |
(5,670) |
- |
(37,000) |
(5,670) |
|||||
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Income before income tax expense |
58,151 |
33,455 |
14,385 |
2,205 |
215,257 |
(157,139) |
(24,083) |
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Income tax (expense)/benefit |
(8,768) |
(4,020) |
(11,042) |
(1,693) |
(70,697) |
15,695 |
2,406 |
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Net income/(loss) |
49,383 |
29,435 |
3,343 |
512 |
144,560 |
(141,444) |
(21,677) |
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Add: net (income)/loss attributable |
1,752 |
(1,421) |
(1,917) |
(293) |
3,540 |
9,011 |
1,381 |
|||||
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Net income/(loss) attributable to |
51,135 |
28,014 |
1,426 |
219 |
148,100 |
(132,433) |
(20,296) |
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Net income/(loss) per ordinary |
||||||||||||
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Basic |
0.45 |
0.25 |
0.01 |
- |
1.29 |
(1.17) |
(0.18) |
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Diluted |
0.45 |
0.25 |
0.01 |
- |
1.27 |
(1.17) |
(0.18) |
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Net income/(loss) per ADS (Notes 1): |
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Basic |
0.91 |
0.50 |
0.03 |
- |
2.58 |
(2.35) |
(0.36) |
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Diluted |
0.90 |
0.49 |
0.02 |
- |
2.55 |
(2.35) |
(0.36) |
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Shares used in net income/(loss) per ordinary |
||||||||||||
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Basic |
112,724,891 |
112,821,099 |
112,916,642 |
112,916,642 |
114,905,223 |
112,813,031 |
112,813,031 |
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Diluted |
113,978,315 |
113,598,108 |
114,671,459 |
114,671,459 |
116,181,610 |
112,813,031 |
112,813,031 |
|||||
|
ADSs used in net income/(loss) |
||||||||||||
|
Basic |
56,362,445 |
56,410,550 |
56,458,321 |
56,458,321 |
57,452,611 |
56,406,515 |
56,406,515 |
|||||
|
Diluted |
56,989,158 |
56,799,054 |
57,335,730 |
57,335,730 |
58,090,805 |
56,406,515 |
56,406,515 |
|||||
|
Note 1: Each ADS represents two ordinary shares. |
||||||||||||
|
|
||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||
|
(in thousands, except share and ADS data and per share and per ADS data) |
||||||||
|
Three Months Ended |
Full Year Ended Dec. 31 |
|||||||
|
Dec. 31, 2019 |
|
|
|
2019 |
2020 |
2020 |
||
|
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||
|
Net income/(loss) |
49,383 |
29,435 |
3,343 |
512 |
144,560 |
(141,444) |
(21,677) |
|
|
Other comprehensive income/(loss), |
||||||||
|
Foreign currency translation adjustments |
1,527 |
(356) |
(1,139) |
(175) |
(1,542) |
(1,275) |
(196) |
|
|
Other comprehensive income/(loss) |
1,527 |
(356) |
(1,139) |
(175) |
(1,542) |
(1,275) |
(196) |
|
|
Comprehensive income/(loss) |
50,910 |
29,079 |
2,204 |
337 |
143,018 |
(142,719) |
(21,873) |
|
|
Add: comprehensive (income)/loss |
1,752 |
(1,421) |
(1,917) |
(293) |
3,540 |
9,011 |
1,381 |
|
|
Comprehensive income/(loss) |
52,662 |
27,658 |
287 |
44 |
146,558 |
(133,708) |
(20,492) |
|
|
|
|||||||||||||||||
|
RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
|||||||||||||||||
|
(in thousands, except ADS data and per ADS data) |
|||||||||||||||||
|
Three Months Ended |
Full Year Ended Dec. 31 |
||||||||||||||||
|
Dec. 31, 2019 |
|
|
|
2019 |
2020 |
2020 |
|||||||||||
|
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|||||||||||
|
Net income/(loss) |
49,383 |
29,435 |
3,343 |
512 |
144,560 |
(141,444) |
(21,677) |
||||||||||
|
Share-based compensation ("SBC") |
10,555 |
3,351 |
12,753 |
1,955 |
47,889 |
17,999 |
2,758 |
||||||||||
|
Intangible assets ("IA") amortization |
4,429 |
4,348 |
4,174 |
639 |
17,374 |
17,364 |
2,661 |
||||||||||
|
Impairment loss on long-term investment |
- |
- |
37,000 |
5,670 |
- |
37,000 |
5,670 |
||||||||||
|
Non-GAAP net income/(loss) |
64,367 |
37,134 |
57,270 |
8,776 |
209,823 |
(69,081) |
(10,588) |
||||||||||
|
Add: net (income)/ loss attributable to |
1,752 |
(1,421) |
(1,917) |
(293) |
3,540 |
9,011 |
1,381 |
||||||||||
|
Non-GAAP net income/(loss) |
66,119 |
35,713 |
55,353 |
8,483 |
213,363 |
(60,070) |
(9,207) |
||||||||||
|
Net income/(loss) |
49,383 |
29,435 |
3,343 |
512 |
144,560 |
(141,444) |
(21,677) |
||||||||||
|
Add: Depreciation |
11,792 |
11,480 |
11,705 |
1,794 |
45,375 |
53,296 |
8,168 |
||||||||||
|
Add: Amortization |
7,119 |
7,651 |
7,590 |
1,163 |
24,646 |
30,953 |
4,744 |
||||||||||
|
Add: Interest expense |
7,409 |
5,547 |
5,390 |
826 |
34,093 |
23,611 |
3,619 |
||||||||||
|
Add: Income tax expense/(benefit) |
8,768 |
4,020 |
11,042 |
1,693 |
70,697 |
(15,695) |
(2,406) |
||||||||||
|
Less: Interest income |
4,046 |
3,650 |
3,534 |
542 |
17,952 |
15,091 |
2,313 |
||||||||||
|
EBITDA |
80,425 |
54,483 |
35,536 |
5,446 |
301,419 |
(64,370) |
(9,865) |
||||||||||
|
SBC |
10,555 |
3,351 |
12,753 |
1,955 |
47,889 |
17,999 |
2,758 |
||||||||||
|
Impairment loss on long-term investment |
- |
- |
37,000 |
5,670 |
- |
37,000 |
5,670 |
||||||||||
|
Adjusted EBITDA |
90,980 |
57,834 |
85,289 |
13,071 |
349,308 |
(9,371) |
(1,437) |
||||||||||
|
Cost of revenues |
183,598 |
162,918 |
155,866 |
23,888 |
694,693 |
602,934 |
92,403 |
||||||||||
|
Personnel costs |
87,115 |
74,898 |
75,881 |
11,629 |
301,327 |
278,618 |
42,700 |
||||||||||
|
Rental costs |
58,872 |
53,427 |
48,551 |
7,441 |
220,912 |
202,446 |
31,026 |
||||||||||
|
Others |
37,611 |
34,593 |
31,434 |
4,818 |
172,454 |
121,870 |
18,677 |
||||||||||
|
Less: SBC |
132 |
433 |
369 |
57 |
2,617 |
1,821 |
279 |
||||||||||
|
Less: IA amortization arising from 2013 |
3,610 |
3,544 |
3,402 |
521 |
14,162 |
14,154 |
2,169 |
||||||||||
|
Non-GAAP cost of revenues |
179,856 |
158,941 |
152,095 |
23,310 |
677,914 |
586,959 |
89,955 |
||||||||||
|
Non-GAAP gross profit |
236,367 |
161,088 |
212,365 |
32,546 |
851,533 |
371,508 |
56,936 |
||||||||||
|
Selling and marketing expenses |
87,657 |
75,911 |
72,081 |
11,047 |
307,339 |
233,687 |
35,814 |
||||||||||
|
Less: SBC |
275 |
375 |
523 |
80 |
1,016 |
1,497 |
229 |
||||||||||
|
Less: IA amortization arising from 2013 |
819 |
804 |
772 |
118 |
3,212 |
3,210 |
492 |
||||||||||
|
Non-GAAP selling and marketing |
86,563 |
74,732 |
70,786 |
10,849 |
303,111 |
228,980 |
35,093 |
||||||||||
|
General and administrative expenses |
84,305 |
61,771 |
89,049 |
13,647 |
304,626 |
260,239 |
39,884 |
||||||||||
|
Less: SBC |
10,148 |
2,543 |
11,861 |
1,818 |
44,256 |
14,681 |
2,250 |
||||||||||
|
Non-GAAP general and administrative |
74,157 |
59,228 |
77,188 |
11,829 |
260,370 |
245,558 |
37,634 |
||||||||||
|
Operating expense |
171,962 |
137,682 |
161,130 |
24,694 |
611,965 |
493,926 |
75,698 |
||||||||||
|
Less: SBC |
10,423 |
2,918 |
12,384 |
1,898 |
45,272 |
16,178 |
2,479 |
||||||||||
|
Less: IA amortization arising from 2013 |
819 |
804 |
772 |
118 |
3,212 |
3,210 |
492 |
||||||||||
|
Non-GAAP operating expense |
160,720 |
133,960 |
147,974 |
22,678 |
563,481 |
474,538 |
72,727 |
||||||||||
|
Operating income/(loss) |
60,663 |
19,429 |
47,464 |
7,274 |
222,789 |
(138,393) |
(21,210) |
||||||||||
|
Add: SBC |
10,555 |
3,351 |
12,753 |
1,955 |
47,889 |
17,999 |
2,758 |
||||||||||
|
Add: IA amortization arising from 2013 |
4,429 |
4,348 |
4,174 |
639 |
17,374 |
17,364 |
2,661 |
||||||||||
|
Non-GAAP operating income/(loss) |
75,647 |
27,128 |
64,391 |
9,868 |
288,052 |
(103,030) |
(15,791) |
||||||||||
|
Non-GAAP net income/(loss) per ADS |
1.17 |
0.63 |
0.98 |
0.15 |
3.71 |
(1.06) |
(0.16) |
||||||||||
|
Non-GAAP net income/(loss) per ADS |
1.16 |
0.63 |
0.97 |
0.15 |
3.67 |
(1.06) |
(0.16) |
||||||||||
|
ADSs used in calculating net |
56,362,445 |
56,410,550 |
56,458,321 |
56,458,321 |
57,452,611 |
56,406,515 |
56,406,515 |
||||||||||
|
ADSs used in calculating net |
56,989,158 |
56,799,054 |
57,335,730 |
57,335,730 |
58,090,805 |
56,406,515 |
56,406,515 |
||||||||||
|
Note 1: Each ADS represents two ordinary shares. |
|||||||||||||||||
View original content:http://www.prnewswire.com/news-releases/rise-education-announces-fourth-quarter-and-full-year-2020-unaudited-financial-results-301248174.html
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