- Third Quarter 2018 Net Revenue Up 33.8%
Year-Over-Year to $47.4 Million,
Exceeding High-End of Guidance Range -
- Third
Quarter 2018 Net Income Up 75.3% Year-Over-Year to $5.1 Million -
- Third Quarter
2018 Cash Receipts from Online Course Registration Up 51.6% Year
-Over-Year to $38.5 Million -
BEIJING, Aug. 15, 2018 /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 third quarter of fiscal year 2018 ended
June 30, 2018.
Third Quarter Fiscal 2018 Financial and Operational
Highlights
- Net revenue increased by 33.8% to $47.4
million from $35.4 million in
the prior year period.
- Total course enrollments were 568,800, a decrease of 13.7% from
the third quarter of fiscal 2017.
- Cash receipts from online course registration were $38.5 million, a 51.6% increase from the third
quarter of fiscal 2017.
- Gross profit increased by 19.0% to $22.8
million from $19.2 million in
the prior year period.
- Non-GAAP[1] gross profit increased by 19.0% to
$22.9 million from $19.2 million in the prior year period.
- Gross margin was 48.2%, compared with 54.1% in the prior year
period. Non-GAAP1 gross margin was 48.2%, compared with 54.3% in
the prior year period.
- Operating income decreased by 66.5% to $1.6 million from $4.7
million in the prior year period.
- Non-GAAP[1] operating income decreased by 57.5% to
$2.2 million from $5.2 million in the prior year period.
- Net income increased by 75.3% to $5.1
million from $2.9 million in
the prior year period.
- Non-GAAP[1] net income increased by 68.8% to
$5.8 million from $3.4 million in the prior year period.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.154 compared with
basic and diluted net income per ADS of $0.089, for the third quarter of fiscal 2017.
Each ADS represents four ordinary shares.
- Basic and diluted non-GAAP[1] net income per ADS
were $0.174 and $0.173, respectively, compared with basic and
diluted non-GAAP[1] net income per ADS of $0.104 and $0.103,
respectively, for the third quarter of fiscal 2017.
- Cash flow from operations increased by 59.6% to $12.4 million from $7.8
million in the third quarter of fiscal 2017.
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "We delivered strong results in our third
quarter, highlighted by a 33.8% year-over-year increase in net
revenue which exceeded the high end of our guidance range. The
top-line outperformance in the third quarter relative to our
guidance was driven primarily by our market-leading accounting
vertical, which has produced strong revenue growth since the
beginning of fiscal year 2018 through the third fiscal quarter. In
addition, we are pleased to report that our cash receipts from
online course registration were up 51.6% year-over-year in our
third fiscal quarter, primarily due to strong cash receipts from
our core accounting test preparation courses, and more student
enrollments in our longer duration premium and elite classes. Our
total course enrollments were down 13.7% year-over-year in the
third quarter, primarily attributable to a decrease in enrollments
of our continuing education courses. However, our accounting test
preparation course enrollments grew 9.9% year-over-year."
Mr. Zhu concluded, "As we look ahead, in addition to driving
growth in our three established industry verticals – accounting,
healthcare, and engineering and construction, our previously
announced acquisition of Beijing Ruida, a leading provider of exam
preparation services for participants in China's national judicial examination, further
diversifies our business model and squarely positions us in a
fourth important vertical – legal. Our investment in Beijing Ruida
is well aligned with our strategy of expanding into select
educational disciplines, with the goal of further enhancing our
life-long learning ecosystem and our future growth
opportunities."
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, said, "Strong revenue growth combined
with effective cost control drove a return to profitability in our
third fiscal quarter as anticipated. However, the increase in fair
value of contingent consideration with respect to our 40% equity
interest investment in Beijing Ruida, resulting from the
outperformance of Beijing Ruida in 2017, adversely impacted our
operating income in the third fiscal quarter. Excluding such change
in fair value impact, our adjusted operating income and adjusted
net income in the third fiscal quarter were $6.0 million and $8.5
million, representing 27.9% and 191.6% year-over-year
growth, respectively. We will continue to balance our efforts to
drive growth with a keen focus on profitability and prudent cost
control."
CEO Share Purchase Plan
As previously 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 July
31, 2018, Mr. Zhu had bought a total of approximately
$450,000 of the Company's ADSs on the
open market pursuant to a 10b5-1 plan in accordance with Rule
10b-18 of the Securities Exchange Act
of 1934, as amended.
Third Quarter Fiscal 2018 Financial Results
Net Revenue. Total net revenue increased by 33.8% to
$47.4 million in the third quarter of
fiscal 2018 from $35.4 million in the
third quarter of fiscal 2017. Net revenue from online education
services, books and reference materials, and other sources
contributed 73.1%, 11.2% and 15.7%, respectively, of total net
revenues for the third quarter of fiscal 2018.
Online education services. Net revenue from online
education services increased by 30.9% to $34.7 million in the third quarter of fiscal 2018
from $26.5 million in the third
quarter of fiscal 2017, mainly due to strong revenue growth from
the core test preparation courses and practical skills training
courses of our accounting vertical.
Books and reference materials. Net revenue from books and
reference materials increased by 34.0% to $5.3 million in the third quarter of fiscal 2018,
from $4.0 million in the third
quarter of fiscal 2017.
Others. Net revenue from other sources increased by 49.1%
to $7.4 million in the third quarter
of fiscal 2018 from $5.0 million in
the third quarter of fiscal 2017, primarily due to revenue growth
from offline accounting professional training courses, the sale of
learning simulation software, as well as revenue from accounting
and related advisory services contributed by Jiangsu Zhengbao Asset
Financial Advisory Co., Ltd.. The increase in revenue from other
sources was partially offset by a decrease in revenue from business
start-up training services.
Cost of Sales. Cost of sales increased by 51.3% to
$24.6 million in the third quarter of
fiscal 2018 from $16.3 million in the
third quarter of fiscal 2017. Non-GAAP[1] cost of sales
increased by 51.4% to $24.5 million
in the third quarter of fiscal 2018 from $16.2 million in the third quarter of fiscal
2017. The increase was mainly due to increased salaries and related
expenses resulting from a higher number of personnel for the
expansion of online and offline course offerings, increased lecture
fees, increased cost of books and reference materials, increased
rental and related expenses, as well as other miscellaneous
expenses.
Gross Profit and Gross Margin. Gross profit
was $22.8 million in the third
quarter of fiscal 2018, up 19.0% from $19.2
million in the prior year period. Non-GAAP[1]
gross profit was $22.9 million,
increasing by 19.0% from $19.2
million in the prior year period. Gross margin was 48.2% in
the third quarter of fiscal 2018, compared with 54.1% in the third
quarter of fiscal 2017. Non-GAAP[1] gross margin
was 48.2% in the third quarter of fiscal 2018, compared with 54.3%
in the third quarter of fiscal 2017.
Operating Expenses. Total operating expenses increased by
20.7% to $17.7 million in the third
quarter of fiscal 2018, from $14.6
million in the prior year period.
Non-GAAP[1] total operating expenses increased by
20.3% to $17.1 million in the third
quarter of fiscal 2018, from $14.2
million in the prior year period.
Selling expenses. Selling expenses increased by 24.8% to
$13.0 million in the third quarter of
fiscal 2018 from $10.4 million in the
prior year period. Non-GAAP[1] selling expenses
increased by 24.9% to $12.9 million
in the third quarter of fiscal 2018 from $10.4 million in the prior year period. The
increase was primarily driven by an increase in salaries and
related expenses and higher commissions to our agents. The increase
was partially offset by a decrease in advertising and promotional
expenses.
General and administrative expenses. General and
administrative expenses increased by 10.5% to $4.7 million in the third quarter of fiscal 2018
from $4.3 million in the prior year
period. Non-GAAP[1] general and administrative expenses
increased by 8.0% to $4.1 million in
the third quarter of fiscal 2018 from $3.8
million in the prior year period. The increase was mainly
due to increased salaries and related expenses.
Change in fair value of contingent consideration payable.
Change in fair value of contingent consideration payable of
$4.4 million was attributable to the
increase in fair value of contingent consideration with respect to
our 40% equity interest investment in Beijing Ruida, resulting from
the outperformance of Beijing Ruida in 2017.
Income Tax Expense. Income tax expense increased by 80.3%
to $1.3 million in the third quarter
of fiscal 2018 from $0.7 million in
the prior year period, primarily due to an increase in taxable
income.
Net Income. As a result of the foregoing, net income was
$5.1 million in the third quarter of
fiscal 2018 compared with $2.9
million in the prior year period.
Non-GAAP[1] net income was $5.8 million in the third quarter of fiscal 2018
compared with $3.4 million in the
prior year period.
Operating Cash Flow. Net operating cash inflow increased
by 59.6% to $12.4 million in the
third quarter of fiscal 2018 from $7.8
million in the prior year period. The operating cash inflow
was mainly attributable to net income before non-cash items
generated in the third quarter of fiscal 2018. The decrease in
accounts receivable and the increase in accrued expenses and other
liabilities, income tax payable and refundable fees also
contributed to the operating cash inflow. The operating cash inflow
was partially offset by the increase in inventories and deferred
cost, and the decrease in deferred revenue.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments. Cash and cash equivalents, restricted cash and
short-term investments as of June 30,
2018 decreased by 2.2% to $91.5
million from $93.5 million as
of March 31, 2018, mainly due to (i)
the payment of investments of $0.7
million, (ii) the capital expenditure of $4.5 million, and (iii) the exchange rate effect
of depreciation of Renminbi against U.S. dollar on our funds
denominated in Renminbi. The decrease was partially offset by the
operating cash inflow generated in the third quarter of fiscal
2018.
First Nine Months of Fiscal 2018 Financial
Results
Net Revenue. Total net revenue increased by 26.6% to
$113.0 million in the first nine
months of fiscal 2018 from $89.3
million in the first nine months of fiscal 2017. Net revenue
from online education services, books and reference materials, and
other sources contributed 71.2%, 8.0% and 20.8%, respectively, of
total net revenues for the first nine months of fiscal 2018.
Online education services. Net revenue from online
education services increased by 26.8% to $80.5 million in the first nine months of fiscal
2018 from $63.5 million in the first
nine months of fiscal 2017.
Books and reference materials. Net revenue from books and
reference materials increased by 32.0% to $9.1 million in the first nine months of fiscal
2018, from $6.9 million in the first
nine months of fiscal 2017.
Others. Net revenue from other sources increased by 23.9%
to $23.5 million in the first nine
months of fiscal 2018 from $18.9
million in the first nine months of fiscal 2017.
Cost of Sales. Cost of sales increased by 50.9% to
$61.6 million in the first nine
months of fiscal 2018 from $40.9
million in the first nine months of fiscal 2017.
Non-GAAP[1] cost of sales increased by 51.0% to
$61.5 million in the first nine
months of fiscal 2018 from $40.7
million in the first nine months of fiscal 2017.
Gross Profit and Gross Margin. Gross profit
was $51.4 million in the first nine
months of fiscal 2018, up 6.1% from $48.4
million in the prior year period. Non-GAAP[1]
gross profit was $51.5 million, up
6.1% from $48.5 million in the prior
year period. Gross margin was 45.5% in the first nine months of
fiscal 2018, compared with 54.2% in the first nine months of fiscal
2017. Non-GAAP[1] gross margin was 45.6% in the first
nine months of fiscal 2018, compared with 54.4% in the first nine
months of fiscal 2017.
Operating Expenses. Total operating expenses increased by
16.4% to $45.9 million in the first
nine months of fiscal 2018, from $39.4
million in the prior year period. Non-GAAP[1]
total operating expenses increased by 16.4% to $44.3 million in the first nine months of fiscal
2018, from $38.1 million in the prior
year period.
Selling expenses. Selling expenses increased by 17.0% to
$30.4 million in the first nine
months of fiscal 2018 from $26.0
million in the prior year period. Non-GAAP[1]
selling expenses increased by 17.1% to $30.4
million in the first nine months of fiscal 2018 from
$25.9 million in the prior year
period.
General and administrative expenses. General and
administrative expenses increased by 15.1% to $15.5 million in the first nine months of fiscal
2018 from $13.4 million in the prior
year period. Non-GAAP[1] general and administrative
expenses increased by 14.9% to $14.0
million in the first nine months of fiscal 2018 from
$12.2 million in the prior year
period.
Income Tax Expense. Income tax expense decreased by 77.1%
to $0.6 million in the first nine
months of fiscal 2018 from $2.6
million in the prior year period.
Net Income. As a result of the foregoing, net income was
$2.0 million in the first nine months
of fiscal 2018 compared with net income of $9.1 million in the prior year period.
Non-GAAP[1] net income was $3.6
million in the first nine months of fiscal 2018 compared
with net income of $10.5 million in
the prior year period.
Operating Cash Flow. Net operating cash inflow increased
by 1.7% to $35.1 million in the first
nine months of fiscal 2018 from $34.5
million in the prior year period.
Outlook
For the fourth quarter of fiscal 2018, the Company expects to
generate total net revenue in the range of $54.2 million to $56.3
million, representing year-over-year growth of approximately
30% to 35%.
For fiscal year 2018, the Company expects to generate total net
revenues in the range of $167.3
million to $169.3 million,
representing year-over-year growth of approximately 27.7% to
29.3%.
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, August 16,
2018 (8:00 p.m. Beijing Time on
Thursday, August 16, 2018) 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 August 23, 2018 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:
|
1466569
|
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
and other industries. The Company also offers professional
education courses for participants in the national judicial
examination, online test preparation courses for self-taught
learners pursuing higher education diplomas or degrees, test
preparation courses for university students intending to take the
nationwide graduate school entrance exam, practical accounting
training courses for college students and working professionals, as
well as online language courses and 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 fourth quarter and full fiscal year
2018 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 acquisition of Beijing Ruida, the promotion of the Company's
lifelong learning ecosystem, as well as cost control) 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 and liquidity 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 Limited
Investor Relations
Department
Tel: +86-10-8231-9999
ext. 1826
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
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
|
Consolidated
Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
|
|
|
|
|
|
September
30, 2017
|
|
June 30,
2018
|
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
60,526
|
|
37,048
|
|
|
Restricted
cash
|
34,855
|
|
53,152
|
|
|
Short term
investments
|
5,261
|
|
1,285
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of
US$1,271 and US$1,191 as of June 30, 2018 and September
30,
2017, respectively
|
5,525
|
|
5,171
|
|
|
Inventories
|
864
|
|
3,928
|
|
|
Prepayment and other
current assets
|
10,439
|
|
16,771
|
|
|
Deferred tax assets,
current portion
|
1,654
|
|
-
|
|
|
Deferred
cost
|
711
|
|
1,710
|
|
|
Total
current assets
|
119,835
|
|
119,065
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
14,022
|
|
16,657
|
|
|
Goodwill
|
29,459
|
|
33,158
|
|
|
Long term
investments
|
43,631
|
|
67,305
|
|
|
Other intangible
assets, net
|
9,947
|
|
9,704
|
|
|
Deposit for purchase
of non-current assets
|
641
|
|
12,888
|
|
|
Deferred tax assets,
non-current portion
|
-
|
|
4,999
|
|
|
Other non-current
assets
|
7,016
|
|
5,752
|
|
|
Total
non-current assets
|
104,716
|
|
150,463
|
|
|
|
|
|
|
|
|
Total
assets
|
224,551
|
|
269,528
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
borrowings
|
29,965
|
|
50,536
|
|
|
Accrued expenses and
other liabilities (including accrued expenses
and other liabilities of the consolidated VIE without recourse to
China
Distance Education Holdings Limited of US$38,945 and US$31,684
as of June 30, 2018 and September
30, 2017, respectively)
|
38,767
|
|
44,033
|
|
|
Amount due to a
related party
|
1,648
|
|
-
|
|
|
Income tax payable
(including income tax payable of the consolidated
VIE without recourse to China Distance Education Holdings Limited
of
US$4,010 and US$3,641 as of June 30, 2018 and September 30,
2017,
respectively)
|
6,750
|
|
6,385
|
|
|
Deferred revenue
(including deferred revenue of the consolidated
VIE without recourse to China Distance Education Holdings
Limited
of US$82,852 and US$49,575 as of June 30, 2018 and September
30,
2017, respectively)
|
50,506
|
|
83,991
|
|
|
Refundable fees
(including refundable fees of the consolidated VIE
without recourse to China Distance Education Holdings Limited
of
US$3,270 and US$1,074 as of June 30, 2018 and September 30,
2017, respectively)
|
1,074
|
|
3,270
|
|
|
Total
current liabilities
|
128,710
|
|
188,215
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities, non-current portion
|
3,099
|
|
4,952
|
|
|
Long-term bank
borrowing
|
19,930
|
|
12,936
|
|
|
Total
non-current liabilities
|
23,029
|
|
17,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
151,739
|
|
206,103
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share at June 30, 2018
and September 30, 2017, respectively; Authorized -500,000,000
shares at June 30, 2018 and September 30, 2017, respectively;
Issued
and outstanding -133,275,521 and 131,854,773 shares at June 30,
2018
and September 30, 2017, respectively)
|
13
|
|
13
|
|
|
Additional paid-in
capital
|
19,097
|
|
20,766
|
|
|
Accumulated other
comprehensive loss
|
(3,367)
|
|
(2,767)
|
|
|
Retained
Earnings
|
33,040
|
|
20,051
|
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
48,783
|
|
38,063
|
|
|
Noncontrolling
interest
|
24,029
|
|
25,362
|
|
|
Total
equity
|
72,812
|
|
63,425
|
|
|
Total
liabilities and equity
|
224,551
|
|
269,528
|
|
|
|
|
|
|
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Three Months Ended
June 30,
|
|
2017
|
|
2018
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
Online education
services
|
26,482
|
|
34,658
|
Books and reference
materials
|
3,970
|
|
5,321
|
Others
|
4,987
|
|
7,437
|
- Sale of
learning simulation software
|
1,224
|
|
1,703
|
- Business
start-up training services
|
1,372
|
|
809
|
-
Others
|
2,391
|
|
4,925
|
Total net
revenues
|
35,439
|
|
47,416
|
|
|
|
|
Cost of
sales
|
|
|
|
Cost of services and
others
|
(12,965)
|
|
(20,250)
|
Cost of tangible goods
sold
|
(3,285)
|
|
(4,333)
|
Total cost of sales
|
(16,250)
|
|
(24,583)
|
|
|
|
|
Gross
profit
|
19,189
|
|
22,833
|
|
|
|
|
Operating
expenses
|
|
|
|
Selling
expenses
|
(10,388)
|
|
(12,967)
|
General and
administrative expenses
|
(4,252)
|
|
(4,698)
|
Total operating expenses
|
(14,640)
|
|
(17,665)
|
Change in fair value
of contingent consideration payable
|
-
|
|
(4,420)
|
Other operating
income
|
135
|
|
823
|
|
|
|
|
Operating
income
|
4,684
|
|
1,571
|
|
|
|
|
Interest
income
|
431
|
|
682
|
Interest
expense
|
(165)
|
|
(906)
|
Exchange
gain/(loss)
|
(1,213)
|
|
4,511
|
|
|
|
|
Income before
income taxes
|
3,737
|
|
5,858
|
Income tax expense
|
(747)
|
|
(1,347)
|
Loss from equity method investment
|
(40)
|
|
(107)
|
|
|
|
|
Net
income
|
2,950
|
|
4,404
|
Net (income) loss
attributable to noncontrolling interest
|
(23)
|
|
727
|
Net income
attributable to China Distance Education Holdings
Limited
|
2,927
|
|
5,131
|
|
|
|
|
Net income per
share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
|
|
|
|
shareholders
|
|
|
|
Basic
|
0.022
|
|
0.039
|
Diluted
|
0.022
|
|
0.038
|
|
|
|
|
Net income per
ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
|
|
|
|
shareholders
|
|
|
|
Basic
|
0.089
|
|
0.154
|
Diluted
|
0.089
|
|
0.154
|
|
|
|
|
Weighted average
shares used in calculating net income per share:
|
|
|
|
Basic
|
131,458,587
|
|
132,522,733
|
Diluted
|
131,801,187
|
|
133,392,776
|
China Distance
Education Holdings Limited
|
Unaudited
Consolidated Statements Of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Nine Months Ended
June 30,
|
|
2017
|
|
2018
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
Online education services
|
63,457
|
|
80,487
|
Books and reference materials
|
6,887
|
|
9,088
|
Others
|
18,936
|
|
23,467
|
- Sale of learning simulation software
|
8,592
|
|
8,602
|
- Business
start-up training services
|
4,121
|
|
2,858
|
- Others
|
6,223
|
|
12,007
|
Total net revenues
|
89,280
|
|
113,042
|
|
|
|
|
Cost of
sales
|
|
|
|
Cost of services and
others
|
(36,027)
|
|
(54,138)
|
Cost of
tangible goods sold
|
(4,830)
|
|
(7,505)
|
Total cost of sales
|
(40,857)
|
|
(61,643)
|
|
|
|
|
Gross
profit
|
48,423
|
|
51,399
|
|
|
|
|
Operating
expenses
|
|
|
|
Selling
expenses
|
(26,004)
|
|
(30,430)
|
General and
administrative expenses
|
(13,431)
|
|
(15,459)
|
Total operating expenses
|
(39,435)
|
|
(45,889)
|
Change in fair value
of contingent consideration payable
|
-
|
|
(3,867)
|
Other operating
income
|
1,585
|
|
2,125
|
|
|
|
|
Operating
income
|
10,573
|
|
3,768
|
|
|
|
|
Interest
income
|
1,156
|
|
1,805
|
Interest
expense
|
(434)
|
|
(2,522)
|
Exchange
gain/(loss)
|
1,556
|
|
(496)
|
|
|
|
|
Income before
income taxes
|
12,851
|
|
2,555
|
Income tax expense
|
(2,569)
|
|
(588)
|
Loss from equity method investment
|
(118)
|
|
(151)
|
|
|
|
|
Net
income
|
10,164
|
|
1,816
|
Net (income) loss
attributable to noncontrolling interest
|
(1,095)
|
|
144
|
Net income
attributable to China Distance Education Holdings
Limited
|
9,069
|
|
1,960
|
|
|
|
|
Net income per
share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
|
|
|
|
shareholders
|
|
|
|
Basic
|
0.069
|
|
0.015
|
Diluted
|
0.068
|
|
0.015
|
|
|
|
|
Net income per
ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
|
|
|
|
shareholders
|
|
|
|
Basic
|
0.275
|
|
0.059
|
Diluted
|
0.273
|
|
0.059
|
|
|
|
|
Weighted average
shares used in calculating net income per share:
|
|
|
|
Basic
|
131,403,456
|
|
132,197,650
|
Diluted
|
132,853,269
|
|
133,006,241
|
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 June 30,
|
|
|
2017
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
16,250
|
|
24,583
|
Share-based
compensation expense in cost of sales
|
|
40
|
|
45
|
Non-GAAP cost of
sales
|
|
16,210
|
|
24,538
|
|
|
|
|
|
Selling
expenses
|
|
10,388
|
|
12,967
|
Share-based
compensation expense in selling expenses
|
|
21
|
|
20
|
Non-GAAP selling
expenses
|
|
10,367
|
|
12,947
|
|
|
|
|
|
General and
administrative expenses
|
|
4,252
|
|
4,698
|
Share-based
compensation expense in general and administrative
expenses
|
|
422
|
|
559
|
Non-GAAP general and
administrative expenses
|
|
3,830
|
|
4,139
|
|
|
|
|
|
Gross
profit
|
|
19,189
|
|
22,833
|
Share-based
compensation expenses
|
|
40
|
|
45
|
Non-GAAP gross
profit
|
|
19,229
|
|
22,878
|
|
|
|
|
|
Gross profit
margin
|
|
54.1%
|
|
48.2%
|
Non-GAAP gross profit
margin
|
|
54.3%
|
|
48.2%
|
|
|
|
|
|
Operating
income
|
|
4,684
|
|
1,571
|
Share-based
compensation expenses
|
|
483
|
|
624
|
Non-GAAP operating
income
|
|
5,167
|
|
2,195
|
|
|
|
|
|
Operating
margin
|
|
13.2%
|
|
3.3%
|
Non-GAAP operating
margin
|
|
14.6%
|
|
4.6%
|
|
|
|
|
|
Net income
|
|
2,927
|
|
5,131
|
Share-based
compensation expense
|
|
483
|
|
624
|
Non-GAAP net
income
|
|
3,410
|
|
5,755
|
|
|
|
|
|
Net income
margin
|
|
8.3%
|
|
10.8%
|
Non-GAAP net income
margin
|
|
9.6%
|
|
12.1%
|
|
|
|
|
|
Net income per
share--basic
|
|
0.022
|
|
0.039
|
Net income per
share--diluted
|
|
0.022
|
|
0.038
|
Non-GAAP net income
per share--basic
|
|
0.026
|
|
0.043
|
Non-GAAP net income
per share--diluted
|
|
0.026
|
|
0.043
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders--basic (note 1)
|
|
0.089
|
|
0.154
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders--diluted (note 1)
|
|
0.089
|
|
0.154
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders--basic (note
1)
|
|
0.104
|
|
0.174
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders--diluted (note
1)
|
|
0.103
|
|
0.173
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
131,458,587
|
|
132,522,733
|
Weighted average
shares used in calculating diluted net income per share
|
|
131,801,187
|
|
133,392,776
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
131,458,587
|
|
132,522,733
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
131,801,187
|
|
133,392,776
|
|
|
|
|
|
Note 1: Each ADS
represents four ordinary shares.
|
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)
|
|
|
|
|
|
Nine Months
Ended June 30,
|
|
|
2017
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
40,857
|
|
61,643
|
Share-based
compensation expense in cost of sales
|
|
121
|
|
116
|
Non-GAAP cost of
sales
|
|
40,736
|
|
61,527
|
|
|
|
|
|
Selling
expenses
|
|
26,004
|
|
30,430
|
Share-based
compensation expense in selling expenses
|
|
63
|
|
60
|
Non-GAAP selling
expenses
|
|
25,941
|
|
30,370
|
|
|
|
|
|
General and
administrative expenses
|
|
13,431
|
|
15,459
|
Share-based
compensation expense in general and administrative
expenses
|
|
1,281
|
|
1,505
|
Non-GAAP general and
administrative expenses
|
|
12,150
|
|
13,954
|
|
|
|
|
|
Gross
profit
|
|
48,423
|
|
51,399
|
Share-based
compensation expenses
|
|
121
|
|
116
|
Non-GAAP gross
profit
|
|
48,544
|
|
51,515
|
|
|
|
|
|
Gross profit
margin
|
|
54.2%
|
|
45.5%
|
Non-GAAP gross profit
margin
|
|
54.4%
|
|
45.6%
|
|
|
|
|
|
Operating
income
|
|
10,573
|
|
3,768
|
Share-based
compensation expenses
|
|
1,465
|
|
1,681
|
Non-GAAP operating
income
|
|
12,038
|
|
5,449
|
|
|
|
|
|
Operating
margin
|
|
11.8%
|
|
3.3%
|
Non-GAAP operating
margin
|
|
13.5%
|
|
4.8%
|
|
|
|
|
|
Net income
|
|
9,069
|
|
1,960
|
Share-based
compensation expense
|
|
1,465
|
|
1,681
|
Non-GAAP net
income
|
|
10,534
|
|
3,641
|
|
|
|
|
|
Net income
margin
|
|
10.2%
|
|
1.7%
|
Non-GAAP net income
margin
|
|
11.8%
|
|
3.2%
|
|
|
|
|
|
Net income per
share--basic
|
|
0.069
|
|
0.015
|
Net income per
share--diluted
|
|
0.068
|
|
0.015
|
Non-GAAP net income
per share--basic
|
|
0.080
|
|
0.028
|
Non-GAAP net income
per share--diluted
|
|
0.079
|
|
0.027
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings Limited
shareholders--basic (note 1)
|
|
0.275
|
|
0.059
|
Net income per
ADS attributable to China Distance Education Holdings Limited
shareholders--diluted (note
1)
|
|
0.273
|
|
0.059
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders--basic (note
1)
|
|
0.321
|
|
0.110
|
Non-GAAP net income
per ADS attributable to China Distance Education Holdings
Limited shareholders--diluted (note
1)
|
|
0.317
|
|
0.109
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
131,403,456
|
|
132,197,650
|
Weighted average
shares used in calculating diluted net income per share
|
|
132,853,269
|
|
133,006,241
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
131,403,456
|
|
132,197,650
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
132,853,269
|
|
133,006,241
|
|
|
|
|
|
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-third-quarter-fiscal-year-2018-300697688.html
SOURCE China Distance Education Holdings Limited