RISE Education Announces Third Quarter 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 first nine months of 2020. In accordance with government regulations to contain the outbreak, RISE's learning centers were temporarily closed for a majority of the time during the period starting
Third Quarter of 2020 Financial and Operational Highlights
- Total revenues were
RMB320.0 million (US$47.1 million ) in the third quarter of 2020, compared withRMB165.0 million for the preceding quarter andRMB411.1 million for the third quarter of 2019. - Net profit attributable to RISE was
RMB28.0 million (US$4.1 million ) in the third quarter of 2020, compared with net loss ofRMB58.0 million for the preceding quarter and net income ofRMB39.4 million for the third quarter of 2019. - Non-GAAP net profit attributable to RISE was
RMB35.7 million (US$5.3 million ) in the third quarter of 2020, compared with non-GAAP net loss ofRMB51.6 million for the preceding quarter and non-GAAP net income ofRMB48.5 million for the third quarter of 2019. - Adjusted EBITDA[1] was
RMB57.8 million (US$8.5 million ) in the third quarter of 2020, compared with adjusted EBITDA of a negativeRMB44.5 million for the preceding quarter and adjusted EBITDA ofRMB88.9 million for the third quarter of 2019. - Students in class[2] for Rise regular courses (including Rise Start and Rise On programs) were 50,462 as of
September 30, 2020 , a decrease of 110 from 50,572 as ofJune 30, 2020 and a decrease of 4,750 from 55,212 as ofSeptember 30, 2019 . - New students enrolled[3] for Rise regular courses in the third quarter of 2020 were 8,328, compared with 3,749 for the preceding quarter and 9,310 for the third quarter of 2019. New students enrolled for other Rise courses (including Rise Up, Can-Talk, other Rise online courses and courses provided by The Edge learning centers) were 1,183 in the third quarter of 2020, compared with 1,185 for the preceding quarter and 1,229 for the third quarter of 2019.
- The total number of the Company's learning centers as of
September 30, 2020 was 496, consisting of 90 self-owned (including 2 operated by The Edge) and 406 franchised learning centers.
Three Months Ended |
|||||
(in thousands RMB, except for percentage and per ADS data) |
|
|
|
Pct. Change YoY |
Pct. Change QoQ |
Revenues |
411,143 |
164,990 |
320,029 |
-22.2% |
94.0% |
Operating income/(loss) |
65,826 |
(73,887) |
19,429 |
-70.5% |
N/A |
Non-GAAP operating income/(loss) |
74,946 |
(67,496) |
27,128 |
-63.8% |
N/A |
Net income/(loss) attributable to RISE |
39,362 |
(58,035) |
28,014 |
-28.8% |
N/A |
Non-GAAP net income/(loss) attributable to RISE |
48,482 |
(51,644) |
35,713 |
-26.3% |
N/A |
Net income/(loss) per ADS attributable to RISE – basic |
0.70 |
(1.03) |
0.50 |
-28.6% |
N/A |
Net income/(loss) per ADS attributable to RISE – diluted |
0.69 |
(1.03) |
0.49 |
-29.0% |
N/A |
Non-GAAP net income/(loss) per ADS attributable to RISE – basic |
0.86 |
(0.92) |
0.63 |
-26.7% |
N/A |
Non-GAAP net income/(loss) per ADS attributable to RISE – diluted |
0.85 |
(0.92) |
0.63 |
-25.9% |
N/A |
Adjusted EBITDA |
88,877 |
(44,487) |
57,834 |
-34.9% |
N/A |
Nine Months Ended September 30 |
|||
(in thousands RMB, except for percentage and per ADS data) |
2019 |
2020 |
Pct. Change |
Revenues |
1,113,225 |
594,007 |
-46.6% |
Operating income/(loss) |
162,127 |
(185,857) |
N/A |
Non-GAAP operating income/(loss) |
212,407 |
(167,422) |
N/A |
Net income/(loss) attributable to RISE |
96,965 |
(133,861) |
N/A |
Non-GAAP net income/(loss) attributable to RISE |
147,245 |
(115,426) |
N/A |
Net income/(loss) per ADS attributable to RISE – basic |
1.70 |
(2.37) |
N/A |
Net income/(loss) per ADS attributable to RISE – diluted |
1.68 |
(2.37) |
N/A |
Non-GAAP net income/(loss) per ADS attributable to RISE – basic |
2.58 |
(2.05) |
N/A |
Non-GAAP net income/(loss) per ADS attributable to RISE – diluted |
2.55 |
(2.05) |
N/A |
Adjusted EBITDA |
258,328 |
(94,662) |
N/A |
Ms.
Ms.
Financial Results for the Third Quarter of 2020
Revenues
Total revenues for the third quarter of 2020 increased by
- Revenues from educational programs for the third quarter of 2020 increased by 93.9% quarter-over-quarter and decreased by 12.3% year-over-year to
RMB293.6 million (US$43.2 million ). The quarter-over-quarter increase in revenues from educational programs was primarily due to the resumption of the Company's offline operations. As the COVID-19 situation alleviated, the Company's self-owned learning centers have been gradually reopened inShanghai ,Guangzhou ,Shenzhen andWuxi sinceJune 2020 , and followed by Beijing andShijiazhuang by the end ofSeptember 2020 . The year-over-year decrease in revenues from educational programs was primarily due to continuous suspension of offline operation of the learning centers inBeijing andShijiazhuang for more than two thirds of the quarter, which was caused by the second wave of pandemic outbreak inBeijing inJune 2020 . - Franchise revenues for the third quarter of 2020 increased by 95.5% quarter-over-quarter and decreased by 44.3% year-over-year to
RMB25.3 million (US$3.7 million ). The quarter-over-quarter increase in franchise revenues was primarily due to a growth in recurring franchise revenues as a result of the gradual reopening of our franchised learning centers. The year-over-year decrease in franchise revenues was primarily due to a decline in recurring franchise revenues reflecting the impact of COVID-19. - Other revenues for the third quarter of 2020 increased by
RMB0.5 million quarter-over-quarter and decreased byRMB29.7 million year-over-year toRMB1.1 million (US$0.2 million ). The year-over-year decrease was attributable to a decrease in study tours and cancellation of Rise Cup, our annual English language competition project, reflecting the impact of travel restrictions amid the pandemic.
Cost of Revenues
Cost of revenues for the third quarter of 2020 increased by
Gross Profit
As a result of the foregoing, the Company's gross profit increased quarter-over-quarter to
Operating Expenses
Total operating expenses for the third quarter of 2020 increased by
- Selling and marketing expenses increased by 78.7% quarter-over-quarter and decreased by 8.8% year-over-year to
RMB75.9 million (US$11.2 million ) for the third quarter of 2020. The quarter-over-quarter increase was primarily attributable to the increased marketing expenses associated with increased student enrollments during the quarter. The year-over-year decrease was primarily due to the Company's personnel optimization efforts and disciplined investment in online and offline marketing activities. Non-GAAP selling and marketing expenses for the third quarter of 2020 increased by 81.2% quarter-over-quarter and decreased by 8.8% year-over-year toRMB74.7 million (US$11.0 million ). - General and administrative expenses increased by 12.7% quarter-over-quarter and decreased by 6.1% year-over-year to
RMB61.8 million (US$9.1 million ) for the third quarter of 2020. The quarter-over-quarter increase was primarily attributable to the increased recruiting fee and office expenses and the end of rental concession. The year-over-year decrease was primarily due to the Company's continuous efforts on controlling administrative expenses and on personnel optimization. Non-GAAP general and administrative expenses for the third quarter of 2020 increased by 10.5% quarter-over-quarter and decreased by 4.2% year-over-year toRMB59.2 million (US$8.7 million ).
Operating Income/(Loss)
Operating income for the third quarter of 2020 was
Interest Expense
Interest expense for the third quarter of 2020 decreased to RMB5.5 million (
Other Income
Other income for the third quarter of 2020 was
Income Tax Expense/(Benefit)
Income tax expense for the third quarter of 2020 was
Net Income Attributable to RISE
Net income attributable to RISE for the third quarter of 2020 was
Non-GAAP net income attributable to RISE for the third quarter of 2020 was
EBITDA represents net income/(loss) before interests, taxes, depreciation, and amortization. EBITDA income for the third quarter of 2020 was
Adjusted EBITDA income for the third 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 inflow from operating activities for the third quarter of 2020 was
Balance Sheet
As of
Current and non-current deferred revenue and customer advances were RMB712.7 million (
Financial Results for the Nine Months Ended
Revenues
Total revenues for the first nine months of 2020 decreased by
- Revenues from educational programs for the first nine months of 2020 decreased by 42.4% to
RMB547.1 million (US$80.6 million ), primarily due to the temporary suspension of our offline business for a substantial part of the first nine months of 2020 due to the outbreak of COVID-19, which was partially offset by the revenues generated by our online services. - Franchise revenues for the first nine months of 2020 decreased by 64.1% to
RMB44.3 million (US$6.5 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 first nine months of 2020 decreased by 93.4% to
RMB2.6 million (US$0.4 million ), primarily attributable to a decrease in study tours and cancellation of Rise Cup, reflecting the impact of travel restrictions amid the pandemic.
Cost of Revenues
Cost of revenues for the first nine months of 2020 decreased by
Gross Profit
Gross profit for the first nine months of 2020 decreased to
Operating Expenses
Total operating expenses for the first nine months of 2020 decreased by
- Selling and marketing expenses decreased by 26.4% year-over-year to
RMB161.6 million (US$23.8 million ) for the first nine months of 2020, primarily due to the Company's curtailed and disciplined investment in online and offline marketing activities and reduced personnel costs resulting from personnel optimization, lower performance-based compensations due to the lower new student enrollments, reflecting the impact of the COVID-19 pandemic. Non-GAAP selling and marketing expenses during the first nine months of 2020 decreased by 26.9% year-over-year toRMB158.2 million (US$23.3 million ). - General and administrative expenses decreased by 22.3% year-over-year to
RMB171.2 million (US$25.2 million ) for the first nine months of 2020, primarily 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 first nine months of 2020 decreased by 9.6% year-over-year toRMB168.4 million (US$24.8 million ).
Operating Income/(Loss)
The Company recorded an operating loss of
Interest Expense
Interest expense for the first nine months of 2020 decreased to
Other Income
Other income for the first nine months of 2020 was
Income Tax Expense/(Benefit)
Income tax benefit for the first nine months of 2020 was
Net Loss Attributable to RISE
Net loss attributable to RISE for the first nine months of 2020 was
Non-GAAP net loss attributable to RISE for the first nine months of 2020 was
EBITDA loss for the first nine months of 2020 was
Adjusted EBITDA loss for the first nine months 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 first nine months of 2020 was
Business Outlook
While the adverse impact of pandemic on our business is expected to continue for certain period of time and the COVID-19 situation in
Conference Call Information
RISE will hold a conference call on
Conference call preregistration link is https://apac.directeventreg.com/registration/event/7180429. 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
United States: +1-646-254-3697
International: +61-2-8199-0299
Mainland China: 400-6322-162
Hong Kong: +852-3051-2780
Conference ID: #7180429
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 and amortization of certain intangible assets acquired as part of the 2013 acquisition. 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
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in thousands) |
|||||
As of |
|||||
|
|
|
|||
RMB |
RMB |
USD |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
999,012 |
676,711 |
99,669 |
||
Restricted cash |
23,813 |
97,849 |
14,412 |
||
Accounts receivable, net |
1,745 |
2,397 |
353 |
||
Amounts due from related parties |
191 |
1,013 |
149 |
||
Inventories |
8,685 |
7,751 |
1,142 |
||
Prepaid expenses and other current assets |
51,420 |
83,431 |
12,287 |
||
Total current assets |
1,084,866 |
869,152 |
128,012 |
||
Property and equipment, net |
137,340 |
106,503 |
15,686 |
||
Intangible assets, net |
210,346 |
195,982 |
28,865 |
||
Long-term investment |
33,000 |
33,000 |
4,860 |
||
|
665,416 |
670,334 |
98,730 |
||
Amounts due from a related party |
4,000 |
589 |
|||
Deferred tax assets |
11,026 |
35,388 |
5,212 |
||
Other non-current assets |
49,638 |
54,388 |
8,010 |
||
Operating lease right-of use assets |
610,323 |
607,611 |
89,493 |
||
Total assets |
2,801,955 |
2,576,358 |
379,457 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Current portion of long-term loan |
134,015 |
235,939 |
34,750 |
||
Accounts payable |
7,553 |
4,880 |
719 |
||
Accrued expenses and other current liabilities |
202,808 |
262,663 |
38,685 |
||
Deferred revenue and customer advances |
716,637 |
676,913 |
99,699 |
||
Income taxes payable |
14,594 |
9,262 |
1,364 |
||
Operating lease liabilities, current portion |
157,911 |
181,158 |
26,682 |
||
Total current liabilities |
1,233,518 |
1,370,815 |
201,899 |
||
Long-term loan |
370,163 |
197,899 |
29,147 |
||
Deferred revenue and customer advances |
39,397 |
35,806 |
5,274 |
||
Deferred tax liabilities |
31,116 |
21,318 |
3,140 |
||
Other non-current liabilities |
39,156 |
42,273 |
6,226 |
||
Operating lease liabilities, non-current portion |
464,304 |
422,157 |
62,178 |
||
Total liabilities |
2,177,654 |
2,090,268 |
307,864 |
||
Shareholders' equity: |
|||||
Ordinary shares |
6,946 |
6,956 |
1,025 |
||
Additional paid-in capital |
583,262 |
589,965 |
86,892 |
||
Statutory reserves |
104,830 |
104,830 |
15,440 |
||
Accumulated deficit |
(127,059) |
(260,920) |
(38,429) |
||
Accumulated other comprehensive income |
40,917 |
40,781 |
6,006 |
||
|
608,896 |
481,612 |
70,934 |
||
Non-controlling interests |
15,405 |
4,478 |
660 |
||
Total equity |
624,301 |
486,090 |
71,593 |
||
Total liabilities, non-controlling interests and shareholders' equity |
2,801,955 |
2,576,358 |
379,457 |
|
|||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||||
(in thousands, except share and ADS data and per share and per ADS data) |
|||||||||||
Three Months Ended |
Nine Months Ended Sep. 30 |
||||||||||
|
|
|
|
2019 |
2020 |
2020 |
|||||
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|||||
Revenues |
411,143 |
164,990 |
320,029 |
47,135 |
1,113,225 |
594,007 |
87,488 |
||||
Educational programs |
334,927 |
151,465 |
293,619 |
43,246 |
950,417 |
547,072 |
80,575 |
||||
Franchise revenues |
45,363 |
12,935 |
25,287 |
3,724 |
123,338 |
44,331 |
6,529 |
||||
Others |
30,853 |
590 |
1,123 |
165 |
39,470 |
2,604 |
384 |
||||
Cost of revenues |
(196,280) |
(141,582) |
(162,918) |
(23,995) |
(511,095) |
(447,068) |
(65,846) |
||||
Gross profit |
214,863 |
23,408 |
157,111 |
23,140 |
602,130 |
146,939 |
21,642 |
||||
Selling and marketing expenses |
(83,278) |
(42,474) |
(75,911) |
(11,180) |
(219,682) |
(161,606) |
(23,802) |
||||
General and administrative expenses |
(65,759) |
(54,821) |
(61,771) |
(9,098) |
(220,321) |
(171,190) |
(25,214) |
||||
Operating income/(loss) |
65,826 |
(73,887) |
19,429 |
2,862 |
162,127 |
(185,857) |
(27,374) |
||||
Interest income |
4,498 |
4,055 |
3,650 |
538 |
13,906 |
11,557 |
1,702 |
||||
Interest expense |
(8,836) |
(5,883) |
(5,547) |
(817) |
(26,684) |
(18,221) |
(2,684) |
||||
Foreign currency exchange loss |
(941) |
(17) |
(86) |
(13) |
(1,430) |
(183) |
(27) |
||||
Other income, net |
688 |
2,183 |
16,009 |
2,357 |
9,187 |
21,179 |
3,120 |
||||
Income/(loss) before income tax expense |
61,235 |
(73,549) |
33,455 |
4,927 |
157,106 |
(171,525) |
(25,263) |
||||
Income tax (expense)/benefit |
(24,047) |
11,029 |
(4,020) |
(592) |
(61,929) |
26,737 |
3,938 |
||||
Net income/(loss) |
37,188 |
(62,520) |
29,435 |
4,335 |
95,177 |
(144,788) |
(21,325) |
||||
Add: net loss/(income) attributable |
2,174 |
4,485 |
(1,421) |
(209) |
1,788 |
10,927 |
1,609 |
||||
Net income/(loss) attributable to |
39,362 |
(58,035) |
28,014 |
4,126 |
96,965 |
(133,861) |
(19,716) |
||||
Net income/(loss) per ordinary share: |
|||||||||||
Basic |
0.35 |
(0.51) |
0.25 |
0.04 |
0.85 |
(1.19) |
(0.17) |
||||
Diluted |
0.34 |
(0.51) |
0.25 |
0.04 |
0.84 |
(1.19) |
(0.17) |
||||
Net income/(loss) per ADS (Notes 1): |
|||||||||||
Basic |
0.70 |
(1.03) |
0.50 |
0.07 |
1.70 |
(2.37) |
(0.35) |
||||
Diluted |
0.69 |
(1.03) |
0.49 |
0.07 |
1.68 |
(2.37) |
(0.35) |
||||
Shares used in net income/(loss) per ordinary share computation: |
|||||||||||
Basic |
112,960,292 |
112,756,844 |
112,821,099 |
112,821,099 |
114,302,033 |
112,778,242 |
112,778,242 |
||||
Diluted |
114,343,590 |
112,756,844 |
113,598,108 |
113,598,108 |
115,632,850 |
112,778,242 |
112,778,242 |
||||
ADSs used in net income/(loss) per ADS computation: |
|||||||||||
Basic |
56,480,146 |
56,378,422 |
56,410,550 |
56,410,550 |
57,151,016 |
56,389,121 |
56,389,121 |
||||
Diluted |
57,171,795 |
56,378,422 |
56,799,054 |
56,799,054 |
57,816,425 |
56,389,121 |
56,389,121 |
||||
Note 1: Each ADS represents two ordinary shares.
|
||||||||
Three Months Ended |
Nine Months Ended Sep. 30 |
|||||||
|
|
|
|
2019 |
2020 |
2020 |
||
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||
Net income/(loss) |
37,188 |
(62,520) |
29,435 |
4,335 |
95,177 |
(144,788) |
(21,325) |
|
Other comprehensive loss, net of tax of nil: |
||||||||
Foreign currency translation adjustments |
(2,467) |
(31) |
(356) |
(52) |
(3,069) |
(136) |
(20) |
|
Other comprehensive loss |
(2,467) |
(31) |
(356) |
(52) |
(3,069) |
(136) |
(20) |
|
Comprehensive income/(loss) |
34,721 |
(62,551) |
29,079 |
4,283 |
92,108 |
(144,924) |
(21,345) |
|
Add: comprehensive loss/(income) attributable to non-controlling interests |
2,174 |
4,485 |
(1,421) |
(209) |
1,788 |
10,927 |
1,609 |
|
Comprehensive income/(loss) attributable to |
36,895 |
(58,066) |
27,658 |
4,074 |
93,896 |
(133,997) |
(19,736) |
|
|||||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
|||||||||||||||||
(in thousands, except ADS data and per ADS data) |
|||||||||||||||||
Three Months Ended |
Nine Months Ended Sep. 30 |
||||||||||||||||
|
|
|
|
2019 |
2020 |
2020 |
|||||||||||
RMB |
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|||||||||||
Net income/(loss) |
37,188 |
(62,520) |
29,435 |
4,335 |
95,177 |
(144,788) |
(21,325) |
||||||||||
Share-based compensation ("SBC") |
4,705 |
1,935 |
3,351 |
494 |
37,335 |
5,245 |
772 |
||||||||||
IA amortization arising from Bain acquisition |
4,415 |
4,456 |
4,348 |
640 |
12,945 |
13,190 |
1,943 |
||||||||||
Non-GAAP net income/(loss) |
46,308 |
(56,129) |
37,134 |
5,469 |
145,457 |
(126,353) |
(18,610) |
||||||||||
Add: net loss/(income) attributable to non-controlling interests |
2,174 |
4,485 |
(1,421) |
(209) |
1,788 |
10,927 |
1,609 |
||||||||||
Non-GAAP net income/(loss) attributable to |
48,482 |
(51,644) |
35,713 |
5,260 |
147,245 |
(115,426) |
(17,001) |
||||||||||
Net income/(loss) |
37,188 |
(62,520) |
29,435 |
4,335 |
95,177 |
(144,788) |
(21,325) |
||||||||||
Add: Depreciation |
11,695 |
17,465 |
11,480 |
1,690 |
33,583 |
41,591 |
6,126 |
||||||||||
Add: Amortization |
6,904 |
7,834 |
7,651 |
1,127 |
17,526 |
23,363 |
3,441 |
||||||||||
Add: Interest expense |
8,836 |
5,883 |
5,547 |
817 |
26,684 |
18,221 |
2,684 |
||||||||||
Add: Income tax expense/(benefit) |
24,047 |
(11,029) |
4,020 |
592 |
61,929 |
(26,737) |
(3,938) |
||||||||||
Less: Interest income |
4,498 |
4,055 |
3,650 |
538 |
13,906 |
11,557 |
1,702 |
||||||||||
EBITDA |
84,172 |
(46,422) |
54,483 |
8,024 |
220,993 |
(99,907) |
(14,714) |
||||||||||
SBC |
4,705 |
1,935 |
3,351 |
494 |
37,335 |
5,245 |
772 |
||||||||||
Adjusted EBITDA |
88,877 |
(44,487) |
57,834 |
8,518 |
258,328 |
(94,662) |
(13,942) |
||||||||||
Cost of revenues |
196,280 |
141,582 |
162,918 |
23,995 |
511,095 |
447,068 |
65,846 |
||||||||||
Personnel costs |
79,535 |
61,980 |
74,898 |
11,031 |
214,211 |
202,737 |
29,860 |
||||||||||
Rental costs |
56,490 |
49,595 |
53,427 |
7,869 |
162,040 |
153,895 |
22,666 |
||||||||||
Others |
60,255 |
30,007 |
34,593 |
5,095 |
134,844 |
90,436 |
13,320 |
||||||||||
Less: SBC |
281 |
320 |
433 |
64 |
2,485 |
1,452 |
214 |
||||||||||
Less: IA amortization arising from Bain acquisition |
3,599 |
3,632 |
3,544 |
522 |
10,552 |
10,752 |
1,584 |
||||||||||
Non-GAAP cost of revenues |
192,400 |
137,630 |
158,941 |
23,409 |
498,058 |
434,864 |
64,048 |
||||||||||
Non-GAAP gross profit |
218,743 |
27,360 |
161,088 |
23,726 |
615,167 |
159,143 |
23,440 |
||||||||||
Selling and marketing expenses |
83,278 |
42,474 |
75,911 |
11,180 |
219,682 |
161,606 |
23,802 |
||||||||||
Less: SBC |
487 |
403 |
375 |
55 |
742 |
973 |
143 |
||||||||||
Less: IA amortization arising from Bain acquisition |
816 |
824 |
804 |
118 |
2,393 |
2,438 |
359 |
||||||||||
Non-GAAP selling and marketing expenses |
81,975 |
41,247 |
74,732 |
11,007 |
216,547 |
158,195 |
23,300 |
||||||||||
General and administrative expenses |
65,759 |
54,821 |
61,771 |
9,098 |
220,321 |
171,190 |
25,214 |
||||||||||
Less: SBC |
3,937 |
1,212 |
2,543 |
375 |
34,108 |
2,820 |
415 |
||||||||||
Non-GAAP general and administrative expenses |
61,822 |
53,609 |
59,228 |
8,723 |
186,213 |
168,370 |
24,799 |
||||||||||
Operating expense |
149,037 |
97,295 |
137,682 |
20,278 |
440,003 |
332,796 |
49,016 |
||||||||||
Less: SBC |
4,424 |
1,615 |
2,918 |
430 |
34,850 |
3,793 |
558 |
||||||||||
Less: IA amortization arising from Bain acquisition |
816 |
824 |
804 |
118 |
2,393 |
2,438 |
359 |
||||||||||
Non-GAAP operating expense |
143,797 |
94,856 |
133,960 |
19,730 |
402,760 |
326,565 |
48,099 |
||||||||||
Operating income/(loss) |
65,826 |
(73,887) |
19,429 |
2,862 |
162,127 |
(185,857) |
(27,374) |
||||||||||
Add: SBC |
4,705 |
1,935 |
3,351 |
494 |
37,335 |
5,245 |
772 |
||||||||||
Add: IA amortization arising from Bain acquisition |
4,415 |
4,456 |
4,348 |
640 |
12,945 |
13,190 |
1,943 |
||||||||||
Non-GAAP operating income/(loss) |
74,946 |
(67,496) |
27,128 |
3,996 |
212,407 |
(167,422) |
(24,659) |
||||||||||
Non-GAAP net income/(loss) per ADS |
0.86 |
(0.92) |
0.63 |
0.09 |
2.58 |
(2.05) |
(0.30) |
||||||||||
Non-GAAP net income/(loss) per ADS |
0.85 |
(0.92) |
0.63 |
0.09 |
2.55 |
(2.05) |
(0.30) |
||||||||||
ADSs used in calculating net income/(loss) per ADS-basic (Notes 1): |
56,480,146 |
56,378,422 |
56,410,550 |
56,410,550 |
57,151,016 |
56,389,121 |
56,389,121 |
||||||||||
ADSs used in calculating net income/(loss) per ADS-diluted (Notes 1): |
57,171,795 |
56,378,422 |
56,799,054 |
56,799,054 |
57,816,425 |
56,389,121 |
56,389,121 |
||||||||||
Note 1: Each ADS represents two ordinary shares.
|
|||||||||||||||||
[1] Adjusted EBITDA excludes share-based compensation expenses from EBITDA.
[2] Students in class refers to the students who were taking our ongoing courses as of a given date.
[3] New students enrolled refers to the newly acquired students who enrolled in our courses during a given period of time.
[4] 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 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."
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SOURCE RISE Education