BEIJING, March 30, 2020 /PRNewswire/ -- RYB
Education, Inc. ("RYB" or the "Company") (NYSE: RYB), a leading
early childhood education service provider in China, today announced its unaudited financial
results for the fourth quarter and full year ended December 31, 2019.
Fourth Quarter 2019 Operational and Financial Summary
- Number of students enrolled at directly operated facilities was
30,806 as of December 31, 2019,
compared with 23,627 as of December 31,
2018.
- Net revenues increased by 12.7% to $50.7
million, compared with $45.0
million for the fourth quarter of 2018.
- Gross profit increased by 24.8% to $9.9
million, compared with $7.9
million for the fourth quarter of 2018.
- Net income attributable to ordinary shareholders of RYB for the
fourth quarter of 2019 was $0.2
million, compared with $0.6
million for the fourth quarter of 2018. Adjusted net income
attributable to ordinary shareholders[1] of RYB for the fourth quarter of
2019 was $1.1 million, compared with
$1.1 million for the fourth quarter
of 2018.
- Cash used in operating activities was $9.3 million in the fourth quarter of 2019,
compared with $9.5 million cash used
in operating activities for the fourth quarter of 2018.
Full Year 2019 Financial Summary
- Net revenues were $182.3 million,
compared with $156.5 million for
2018.
- Gross profit was $26.7 million,
compared with $25.6 million for
2018.
- Net loss attributable to ordinary shareholders of RYB for 2019
was $2.4 million, compared with
$1.8 million for 2018. Adjusted net
income attributable to ordinary shareholders[2] of RYB for 2019 was $1.4 million, compared with $5.1 million for 2018.
"Looking back at the fourth quarter of 2019, in the face of many
challenges in the overall market, we continued to focus on growing
our core businesses whilst improving the educational quality of our
offerings and services, increasing operational efficiencies, and
achieving higher levels of customer satisfaction. We also further
advanced the online-merge-offline process across our facilities,"
said Ms. Yanlai Shi, Co-founder, Director and Chief Executive
Officer of RYB. "Throughout the year, we carried out our brand
portfolio strategy in response to the diverse needs of students and
families and actively supported new regulatory policies of early
childhood education. Additionally, we continued to make smooth
progress integrating new business operations across multiple
geographies and enriching our suite of diversified products and
services."
"Over the past two months, China has fought with tremendous courage
against the coronavirus pandemic. As a responsible corporate
citizen, we have proactively monitored the health status of our
children, families and staff members, secured and provided
healthcare supplies to our facilities in coronavirus impacted
regions, and compiled a RYB Handbook on COVID-19 and distributed to
all the facilities within our network. During the same time, we
have also worked diligently to provide our students and families
with resources for continuous co-parenting support that facilitate
learning and parent-child interaction. In an effort to maintain
educational continuity for families and teachers affected by
facility closures, we have provided free access via our
self-developed mobile app and collaborating third party
platforms to an entire library of home education content. For
example, in early February, we launched a series of online
educational content comprising of ten learning modules for our
kindergartens. This approach has proven to be very popular,
attracting over 100,000 participating
students. For franchise play-and-learn centres, we also
offered a 99-day free access to education content on the iLove app,
which attracted over 300,000 registered users to date. Other parts
of the efforts also include additional online training for our
teaching staff during this time. Going forward, we will continue to
execute our growth strategy by focusing on our core operations,
advancing our digital transformation, and developing new and
innovative ways to serve children and families," concluded Ms.
Shi.
Mr. Hao Gu, Chief Financial Officer of RYB, said, "In the fourth
quarter of 2019, the number of students enrolled at
our directly operated facilities reached 30,806 and our net
revenues grew 12.7%, approaching the high end of our guidance. At
the same time, our prudent cost control achieved satisfactory
results. Our gross profit in the fourth quarter increased by 24.8%
compared with the same period last year, while operating income
were $3.3 million, versus an
operating loss of $0.13 million for
the fourth quarter of 2018. For the full year 2019, the
Company achieved a solid increase of 16.5% in revenues, and a
positive operating cash flow of $13.0
million compared with $0.8
million during 2018."
"The health and welfare of the children and families we serve is
always our highest priority. Toward this end, over the past couple
of years we have invested in initiatives that have enhanced teacher
training and upgraded our operating systems. Today we have a solid
professional foundation in place that allows us to respond
effectively to unexpected developments, like the coronavirus
outbreak. Despite the suspension of some of our operations as a
result of the outbreak, we remain confident of the resilience of
our business. By further integrating technology into our offerings
we are executing our company-wide digital strategy to drive
innovation and pave the way for a wider spectrum of products and
services, increased revenue streams, better cost structures,
improved efficiencies and long-term profitable returns," concluded
Mr. Gu.
Fourth Quarter 2019 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2019 increased by 12.7%
to $50.7 million, from $45.0 million for the same quarter of 2018.
Service revenues for the fourth quarter of 2019 increased by
21.3% to $46.6 million, from
$38.5 million for the same quarter of
2018. The increase was primarily contributed by student enrolment
gains in directly operated facilities in ramp-up period
and from directly operated facilities in Singapore that were acquired during the second
quarter of 2019. Franchise services revenue also increased due to
the expansion of franchise network and an increase in average
franchise fee.
Product revenues for the fourth quarter of 2019 decreased by
37.4% to $4.1 million, from
$6.5 million for the same quarter of
2018. The decrease was primarily due to a decrease in the amount of
merchandise sold through the Company's franchise network.
Cost of Revenues
Cost of revenues for the fourth quarter of 2019 was $40.9 million, a 10.2% increase from $37.1 million for the same quarter of 2018. Cost
of revenues for services for the fourth quarter of 2019 was
$39.1 million, compared with
$33.6 million for the same quarter of
2018. The increase was primarily due to higher staff compensation
and operating cost, such as rental and material consumption as the
Company continued to moderately expand its facilities network,
including directly operated facilities in Singapore acquired during the second quarter
of 2019. Cost of products revenues for the fourth quarter of 2019
was $1.8 million, compared with
$3.5 million for the same quarter of
2018. The decrease was generally in line with the decrease in
product revenues.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2019 increased by 24.8%
to $9.9 million, compared with
$7.9 million for the same quarter of
2018.
Gross margin for the fourth quarter of 2019 was 19.4%, compared
with 17.6% for the same quarter last year.
Operating Expenses
Total operating expenses for the fourth quarter of 2019 were
$6.5 million, compared with
$8.0 million for the same quarter of
2018. Excluding share-based compensation expenses, operating
expenses were $5.6 million, a
decrease of 17.6% from $6.8 million
for the fourth quarter of 2018.
Selling expenses for the fourth quarter of 2019 were
$0.7 million, compared with
$0.7 million for the same quarter of
2018.
General and administrative ("G&A") expenses for the fourth
quarter of 2019 were $5.9 million, a
20.2% decrease from $7.3 million for
the same quarter of 2018. Excluding share-based compensation
expenses, G&A expenses were $5.0
million for the fourth quarter of 2019, compared with
$6.1 million for the same quarter of
2018. The decrease in G&A expenses excluding share-based
compensation expenses was primarily driven by our stringent cost
control measures. The share-based compensation expenses included in
G&A expenses were $0.9 million
for the quarter.
Operating Income/loss
Operating income for the fourth quarter of 2019 was $3.3 million, compared with $0.1 million of operating loss for the same
quarter last year. Adjusted operating income[3] was $4.2
million for the fourth quarter of 2019, compared with
$1.1 million for the same quarter of
2018.
Net Income/loss
Net income attributable to ordinary shareholders of RYB for
the fourth quarter of 2019 was $0.2
million, compared with $0.6
million for the same quarter of 2018. Adjusted net income
attributable to ordinary shareholders of RYB, which excludes the
impact of $0.9 million of share-based
compensation expense for the fourth quarter of 2019, was
$1.1 million, compared with
$1.1 million for the same quarter of
2018.
Basic and diluted net income per American depositary share
("ADS") attributable to ordinary shareholders of RYB for the fourth
quarter of 2019 were both $0.01,
compared with basic and diluted net income per ADS attributable to
ordinary shareholders of RYB of $0.02, for the same quarter of 2018. Each ADS
represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable to
ordinary shareholders[4]
of RYB for the fourth quarter of 2019 were both $0.04, compared with $0.04 and $0.03 for
the same quarter of 2018.
EBITDA[5] for the
fourth quarter of 2019 was $6.7
million, compared with $4.3
million for the same period of 2018. Adjusted
EBITDA[6] for the fourth
quarter of 2019 was $7.6 million,
compared with $5.5 million for the
same quarter of 2018.
[1] Adjusted net income (loss)
attributable to ordinary shareholders is a non-GAAP financial
measure, which is defined as net income (loss) attributable to
ordinary shareholders excluding share-based compensation expenses
and changes of redeemable non-controlling interests. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" included elsewhere in this earnings
release.
|
[2] Adjusted net income (loss)
attributable to ordinary shareholders is a non-GAAP financial
measure, which is defined as net income (loss) attributable to
ordinary shareholders excluding share-based compensation expenses
and changes of redeemable non-controlling interests. See "Use of
Non-GAAP Financial Measures" and "Reconciliations of GAAP and
non-GAAP results" included elsewhere in this earnings
release.
|
[3] Adjusted operating income is a
non-GAAP financial measure, which is defined as operating income
excluding share-based compensation expenses.
|
[4] Adjusted basic and diluted net
income per ADS attributable to ordinary shareholders is a non-GAAP
financial measure, which is defined as basic and diluted net income
per ADS attributable to ordinary shareholders excluding share-based
compensation expenses.
|
[5] EBITDA is defined as net income
excluding depreciation, amortization and income tax
expenses.
|
[6] Adjusted EBITDA is a non-GAAP
financial measure, which is defined as net income excluding
depreciation, amortization, interest expenses, income tax expenses,
and share-based compensation expenses.
|
Operating Cash Flow
Cash used in operating activities was $9.3 million during the fourth quarter of 2019,
compared with $9.5 million of cash
used in operating activities during the fourth quarter of
2018.
Full Year of 2019 Financial Results
Net Revenues
Net revenues for the full year of 2019 were $182.3 million, compared with $156.5 million
for 2018.
Services revenues for the full year of 2019 were $166.2 million, compared with $139.2 million for 2018. The increase was
primarily contributed by increased tuition fees due to a
student-mix shift, enrolment increase at directly operated
facilities and contribution from acquired facilities in
Singapore.
Product revenues for the full year of 2019 were $16.1 million, compared with $17.3 million for 2018. The decrease was
primarily due to a decrease in the amount of merchandise sold
through the Company's franchise network.
Cost of Revenues
Cost of revenues for the full year of 2019 was $155.5 million, compared with $130.9 million for 2018. Cost of services
revenues for the full year of 2019 was $147.7 million, compared with $121.5 million for 2018. The increase was
primarily due to an increase in staff compensation and higher
operating cost, such as rental and material consumption as the
Company continued to moderately expand its facilities network. Cost
of products revenues for the full year of 2019 was $7.9 million, compared with $9.3 million for 2018.
Gross Profit and Gross Margin
Gross profit for the full year of 2019 was $26.7 million, compared with $25.6 million for 2018.
Gross margin for the full year of 2019 was 14.7%, compared
with 16.4% for 2018.
Operating Expenses
Total operating expenses for the full year of 2019 were
$26.6 million, compared
with $28.7 million for 2018. Excluding share-based
compensation expenses, operating expenses were $22.6 million, compared with $22.1
million for 2018.
Selling expenses were $2.8 million
for the full year of 2019, compared with $2.2 million for 2018.
G&A expenses for the full year of 2019 were $23.8 million, compared with $26.4 million for 2018. Excluding share-based
compensation expenses, G&A expenses were $19.9 million for the full year of 2019, compared
with $19.9 million for 2018 despite
network expansion thanks to our stringent cost control
measures.
Operating Income/loss
Operating income for the full year of 2019 was $0.2 million, compared with operating
loss of $3.0 million for 2018.
Adjusted operating income for 2019 was $4.1 million, compared with $3.7 million for 2018.
Net Income/loss
Net loss attributable to ordinary shareholders of RYB for
the full year of 2019 was $2.4
million, compared with $1.8
million for 2018. Adjusted net income attributable
to ordinary shareholders of RYB, which excludes the impact of
share-based compensation expenses and
changes of redeemable non-controlling interests, for the
full year of 2019 was $1.4
million, compared with $5.1
million for 2018.
Basic and diluted net losses per ADS attributable to
ordinary shareholders of RYB for the full year of 2019 were
both $0.09 compared with basic and
diluted net loss per ADS attributable to ordinary shareholders of
RYB of both $0.06 for 2018. Each ADS
represents one Class A ordinary share.
Adjusted basic and diluted net income per ADS attributable
to ordinary shareholders of RYB for the full year of 2019 were both
$0.05, compared with $0.18 and $0.16, respectively, for 2018.
EBITDA for the full year of 2019 was $12.9 million, compared with $8.8 million for 2018. Adjusted EBITDA for
2019 was $16.8 million, compared
with $15.6 million for 2018.
Balance Sheet
As of December 31, 2019, the
Company had total cash, cash equivalents and term deposits of
$68.7 million, compared with
$104.1 million as of December 31, 2018. The decrease in cash balance
was primarily driven by acquisition related payments and capital
expenditures.
Charitable Causes Associated with the Coronavirus Outbreak in
China
RYB is fully committed to carrying out its corporate social
responsibilities. On January 29,
2020, we announced a donation of RMB
1 million and 10 infrared thermometers to support
Wuhan and other cities in
Hubei Province, the epicentre of
the coronavirus outbreak in China.
For remote and continuous education, we have started offering an
abundance of online content and offerings free of charge to
children and families across the country.
Conference Call
Management will host an earnings conference call at 8:00
a.m. Eastern Time on Tuesday, March 31,
2020 (8:00 p.m. Beijing Time on March 31, 2020). Listeners may access the
call by dialing:
United States (toll
free):
|
1-888-317-6003
|
International:
|
1-412-317-6061
|
China (toll
free):
|
400-120-6115
|
Hong Kong (toll
free):
|
800-963-976
|
Participant Elite
Entry Number:
|
4141218
|
Participants should dial-in at least 10-15 minutes before the
scheduled start time and ask to be connected to the earnings
conference call.
A telephone replay will be available approximately one hour
after the call until April 7, 2020 by dialing:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10141137
|
Additionally, a live and archived webcast of the conference call
will be available at http://ir.rybbaby.com.
About RYB Education, Inc.
Founded on the core values of ''Care'' and ''Responsibility,''
"Inspire" and "Innovate," RYB Education, Inc. is a leading early
childhood education service provider in China. Since opening
its first play-and-learn center in 1998, the Company has grown and
flourished with the mission to provide high-quality, individualized
and age-appropriate care and education to nurture and inspire each
child for his or her betterment in life. During its two decades of
operating history, the Company has built "RYB" into a
well-recognized education brand and helped bring about many new
educational practices in China's early childhood
education industry. RYB's comprehensive early childhood education
solutions meet the needs of children from infancy to 6 years old
through structured courses at kindergartens and play-and-learn
centers, as well as at-home educational products and services.
For more information, please visit http://ir.rybbaby.com
Use of Non-GAAP Financial Measures
We use EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, each a non-GAAP financial measure, in evaluating our operating
results and for financial and operational decision-making
purposes.
EBITDA is defined as net income excluding depreciation,
amortization, and income tax expenses; adjusted EBITDA is defined
as net income excluding depreciation, amortization, income tax
expenses, and share-based compensation expenses; adjusted operating
income is defined as operating income excluding share-based
compensation expenses; adjusted net income attributable to ordinary
shareholders is defined as net income attributable to ordinary
shareholders excluding share-based compensation expenses and
changes of redeemable non-controlling interests; and adjusted basic
and diluted net income per ADS attributable to ordinary
shareholders are defined as basic and diluted net income per ADS
attributable to ordinary shareholders excluding share-based
compensation expenses and changes of redeemable non-controlling
interests.
We believe that EBITDA, adjusted EBITDA, adjusted operating
income, adjusted net income, and adjusted basic and diluted net
income per ADS, help identify underlying trends in our business
that could otherwise be distorted by the effect of certain expenses
that we include in income from operations and net income. We
believe that EBITDA, adjusted EBITDA, adjusted operating income,
adjusted net income, and adjusted basic and diluted net income per
ADS, provide useful information about our operating results,
enhance the overall understanding of our past performance and
future prospects and allow for greater visibility with respect to
key metrics used by our management in its financial and operational
decision-making.
EBITDA, adjusted EBITDA, adjusted operating income, adjusted net
income, and adjusted basic and diluted net income per ADS, should
not be considered in isolation or construed as an alternative to
net income or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review
the historical adjusted financial measures to the most directly
comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted
operating income, adjusted net income, and adjusted basic and
diluted net income per ADS, presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to our data. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
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: the
Company's brand recognition and market reputation; student
enrolment in the Company's teaching facilities; the Company's
growth strategies; its future business development, results of
operations and financial condition; trends and competition in
China's early childhood education
market; changes in its revenues and certain cost or expense items;
the expected growth of the Chinese early childhood education
market; Chinese governmental policies relating to the Company's
industry and general economic conditions in China. Further information regarding these and
other risks is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please contact:
In China:
RYB
Education, Inc.
Investor Relations
Tel: 86-10-8767-5752
E-mail: ir@rybbaby.com
The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 6508-0677
E-mail: ryb@tpg-ir.com
In the United
States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: ryb@tpg-ir.com
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands of
U.S. dollars)
|
|
|
As
of
|
|
December
31,
2019
|
|
December
31,
2018
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
68,728
|
|
104,084
|
Term
deposits
|
1,005
|
|
-
|
Accounts receivable,
net
|
2,804
|
|
876
|
Inventories
|
7,256
|
|
4,811
|
Prepaid expenses and
other current assets
|
13,159
|
|
11,243
|
Loan
receivables-current
|
1,149
|
|
582
|
Amounts due from
related parties
|
349
|
|
-
|
Total current
assets
|
94,450
|
|
121,596
|
|
|
|
|
Non-current
assets:
|
|
|
|
Restricted
cash
|
710
|
|
746
|
Property, plant and
equipment, net
|
50,142
|
|
45,896
|
Intangible
assets
|
17,700
|
|
4,491
|
Goodwill
|
52,687
|
|
25,096
|
Long-term
investment
|
5,237
|
|
4,805
|
Deferred tax
assets
|
18,161
|
|
16,195
|
Other non-current
assets
|
13,604
|
|
24,048
|
Loan
receivables-noncurrent
|
-
|
|
582
|
Operating lease
right-of-use assets
|
83,403
|
|
-
|
Total
assets
|
336,094
|
|
243,455
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities:
|
|
|
|
Prepayments from
customers, current portion(including
prepayments from customers of the consolidated
VIEs
without recourse to the Group of $5,904 and
$6,647 as
of December 31, 2019 and 2018,
respectively)
|
5,904
|
|
6,647
|
Accrued expenses and other
current liabilities(including
accrued expenses and other current liabilities of
the
consolidated VIEs without recourse to the Group of
$47,825 and $54,443 as of December 31, 2019 and
2018,
respectively)
|
56,472
|
|
60,429
|
Income taxes
payable(including income taxes payable of
the consolidated VIEs without recourse to the Group
of
$14,364 and $11,298 as of December 31, 2019 and
2018,
respectively)
|
14,929
|
|
11,685
|
Operating lease
liabilities, current portion (including
operating lease liabilities of the consolidated
VIEs
without recourse to the Group of $13,068 and $nil as
of
December 31, 2019 and 2018, respectively)
|
16,399
|
|
-
|
Deferred revenue,
current portion(including deferred
revenue of the consolidated VIEs without recourse to
the
Group of $30,266 and $29,578 as of December 31,
2019
and 2018, respectively)
|
31,993
|
|
29,578
|
Long-term debt,
current portion (including long-term debt
of the consolidated VIEs without recourse to the Group
of
nil and nil as of December 31, 2019 and 2018,
respectively)
|
87
|
|
-
|
Total current
liabilities
|
125,784
|
|
108,339
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Prepayments from
customers, non-current portion
(including prepayments from customers of the
consolidated VIEs without recourse to the Group of
$2,508 and $3,582 as of December 31, 2019 and
2018,
respectively)
|
2,508
|
|
3,582
|
Deferred revenue,
non-current portion (including deferred
revenue of the consolidated VIEs without recourse to
the
Group of $4,206 and $5,567 as of December 31, 2019
and 2018, respectively)
|
5,531
|
|
6,915
|
Other non-current
liabilities (including other non-current
liabilities of the consolidated VIEs without recourse
to the
Group of $9,167 and $8,541 as of December 31, 2019 and
2018,
respectively)
|
11,034
|
|
8,541
|
Deferred income tax
liabilities(including deferred income
tax liabilities of the consolidated VIEs without
recourse to
the Group of $1,271 and $1,110 as of December 31,
2019
and 2018, respectively)
|
3,384
|
|
1,110
|
Operating lease
liabilities, non-current portion (including
operating lease liabilities of the consolidated
VIEs
without recourse to the Group of $68,509 and nil as
of
December 31, 2019 and 2018,
respectively)
|
71,012
|
|
-
|
Amounts due to
related parties (including amounts due to
related parties of the consolidated VIEs without
recourse
to the Group of $124 and nil as of December 31,
2019
and 2018, respectively)
|
124
|
|
-
|
Total
liabilities
|
219,377
|
|
128,487
|
|
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
Redeemable
non-controlling interests
|
8,801
|
|
1,628
|
|
|
|
|
Equity
|
|
|
|
Ordinary
shares
|
29
|
|
29
|
Treasury
stock
|
(12,000)
|
|
-
|
Additional paid-in
capital
|
139,843
|
|
135,881
|
Statutory
reserve
|
4,060
|
|
3,362
|
Accumulated other
comprehensive income/(expense)
|
141
|
|
(122)
|
Accumulated
deficit
|
(33,553)
|
|
(30,421)
|
Total RYB
Education, Inc. shareholders' equity
|
98,520
|
|
108,729
|
Non-controlling
interest
|
9,396
|
|
4,611
|
Total
equity
|
107,916
|
|
113,340
|
Total liabilities,
mezzanine equity and total equity
|
336,094
|
|
243,455
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands of U.S. dollars, except share, ADS, per share and per
ADS data)
|
|
|
Three Months
Ended
December 31,
|
Year Ended
December 31,
|
2019
|
2018
|
2019
|
2018
|
Net
revenues:
|
|
|
|
|
Services
|
46,641
|
38,463
|
166,183
|
139,216
|
Products
|
4,094
|
6,541
|
16,100
|
17,282
|
Total net
revenues
|
50,735
|
45,004
|
182,283
|
156,498
|
Cost of
revenues:
|
|
|
|
|
Services
|
39,094
|
33,573
|
147,669
|
121,549
|
Products
|
1,783
|
3,531
|
7,865
|
9,315
|
Total cost of
revenues
|
40,877
|
37,104
|
155,534
|
130,864
|
Gross
profit
|
9,858
|
7,900
|
26,749
|
25,634
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
Expenses
|
680
|
696
|
2,808
|
2,233
|
General and
administrative
|
5,856
|
7,338
|
23,775
|
26,428
|
Total operating
expenses
|
6,536
|
8,034
|
26,583
|
28,661
|
|
|
|
|
|
Operating
income/(loss)
|
3,322
|
(134)
|
166
|
(3,027)
|
Interest
income
|
227
|
644
|
858
|
2,147
|
Government subsidy
income
|
109
|
299
|
499
|
683
|
Gain on disposal of
subsidiaries
|
211
|
1,233
|
908
|
1,234
|
Impairment loss on
intangible assets and goodwill
|
-
|
-
|
(416)
|
-
|
|
|
|
|
|
Income before
income taxes
|
3,869
|
2,042
|
2,015
|
1,037
|
Less: Income tax
expense
|
3,008
|
1,907
|
3,541
|
2,459
|
|
|
|
|
|
Income/(loss) before loss in
equity method investments
|
861
|
135
|
(1,526)
|
(1,422)
|
Loss from equity
method investment
|
(203)
|
(67)
|
(664)
|
(291)
|
|
|
|
|
|
Net
income/(loss)
|
658
|
68
|
(2,190)
|
(1,713)
|
Less: Net income
/(loss)
attributable to non-controlling
interest
|
427
|
226
|
387
|
(93)
|
(Decrease)/increase
in redeemable
non-controlling interest
|
-
|
(716)
|
(143)
|
169
|
|
|
|
|
|
Net income/(loss)
attributable to
ordinary shareholders of RYB
|
231
|
558
|
(2,434)
|
(1,789)
|
|
|
|
|
|
Net income /(loss)
per share
attributable to ordinary
shareholders of RYB Education,
Inc.
|
|
|
|
|
Basic
|
0.01
|
0.02
|
(0.09)
|
(0.06)
|
Diluted
|
0.01
|
0.02
|
(0.09)
|
(0.06)
|
Net income /(loss)
per ADS
attributable to ordinary
shareholders of RYB Education,
Inc. (Note 1)
|
|
|
|
|
Basic
|
0.01
|
0.02
|
(0.09)
|
(0.06)
|
Diluted
|
0.01
|
0.02
|
(0.09)
|
(0.06)
|
Weighted average
shares used in
calculating net income/(loss) per
ordinary
share
|
|
|
|
|
Basic
|
27,666,982
|
29,213,801
|
28,074,624
|
29,213,801
|
Diluted
|
28,905,106
|
30,874,121
|
28,074,624
|
29,213,801
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(in thousands of
U.S. dollars)
|
|
|
|
|
Three Months
Ended
December 31,
|
Year Ended
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
Net
income/(loss)
|
658
|
68
|
(2,190)
|
(1,713)
|
Other comprehensive
income/(loss),
net of tax of nil:
|
|
|
|
|
Change in cumulative
foreign
currency translation adjustments
|
2,659
|
1,458
|
269
|
(983)
|
Total
comprehensive income/(loss)
|
3,317
|
1,526
|
(1,921)
|
(2,696)
|
Less: Comprehensive
income/(loss)
attributable to non-controlling interest
|
874
|
430
|
289
|
(171)
|
Comprehensive
income/(loss)
attributable to RYB Education, Inc.
|
2,443
|
1,096
|
(2,210)
|
(2,525)
|
RECONCILIATION
OF GAAP AND NON-GAAP RESULTS
(in thousands of U.S. dollars,
except share, ADS, per share and per ADS data)
|
|
|
Three Months
Ended
December
31,
|
Year Ended
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
Operating
income/(loss)
|
3,322
|
(134)
|
166
|
(3,027)
|
Share-based
compensation expenses
|
911
|
1,211
|
3,962
|
6,747
|
Adjusted operating
income
|
4,233
|
1,077
|
4,128
|
3,720
|
|
|
|
|
|
Net income/(loss)
attributable to ordinary shareholders of RYB Education,
Inc.
|
231
|
558
|
(2,434)
|
(1,789)
|
(Decrease)/increase
in redeemable non-controlling interest
|
-
|
(716)
|
(143)
|
169
|
Share-based
compensation expenses
|
911
|
1,211
|
3,962
|
6,747
|
Adjusted net income
attributable to ordinary shareholders of RYB Education,
Inc.
|
1,142
|
1,053
|
1,385
|
5,127
|
|
|
|
|
|
Net
income/(loss)
|
658
|
68
|
(2,190)
|
(1,713)
|
Add: Income tax
expense
|
3,008
|
1,907
|
3,541
|
2,459
|
Depreciation and amortization
|
2,984
|
2,360
|
11,520
|
8,059
|
EBITDA
|
6,650
|
4,335
|
12,871
|
8,805
|
Share-based
compensation expenses
|
911
|
1,211
|
3,962
|
6,747
|
Adjusted
EBITDA
|
7,561
|
5,546
|
16,833
|
15,552
|
|
|
|
|
|
Net income/(loss) per
ADS attributable to ordinary shareholders of RYB Education, Inc.-
Basic (Note1)
|
0.01
|
0.02
|
(0.09)
|
(0.06)
|
Net income/(loss) per
ADS attributable to ordinary shareholders of RYB Education, Inc.-
Diluted (Note1)
|
0.01
|
0.02
|
(0.09)
|
(0.06)
|
|
|
|
|
|
Adjusted net income
per ADS attributable to ordinary shareholders of RYB Education,
Inc.- Basic (Note1)
|
0.04
|
0.04
|
0.05
|
0.18
|
Adjusted net income
per ADS attributable to ordinary shareholders of RYB Education,
Inc.- Diluted (Note1)
|
0.04
|
0.03
|
0.05
|
0.16
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income/adjusted net
income per ADS(Note1)
|
27,666,982
|
29,213,801
|
28,074,624
|
29,213,801
|
Weighted average
shares used in calculating diluted net income/(loss) per
ADS(Note1)
|
28,905,106
|
30,874,121
|
28,074,624
|
29,213,801
|
Weighted average
shares used in calculating diluted adjusted net income per
ADS(Note1)
|
28,905,106
|
30,874,121
|
29,420,725
|
31,437,498
|
|
|
|
|
|
Adjusted net income
per share attributable to ordinary shareholders of RYB Education,
Inc. - Basic
|
0.04
|
0.04
|
0.05
|
0.18
|
Adjusted net income
per share attributable to ordinary shareholders of RYB Education,
Inc. - Diluted
|
0.04
|
0.03
|
0.05
|
0.16
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
View original
content:http://www.prnewswire.com/news-releases/ryb-education-inc-reports-fourth-quarter-and-full-year-2019-financial-results-301032096.html
SOURCE RYB Education, Inc.