- Second Quarter 2018 Net Revenue Up 36.1%
Year-Over-Year to $29.7 Million,
Exceeding High-End of Guidance Range -
- Second Quarter 2018 Cash Receipts from
Online Course Registration Up 25.4% Year -Over-Year to $43.9 Million -
BEIJING, May 16, 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 second quarter of fiscal year 2018 ended
March 31, 2018.
Second Quarter Fiscal 2018 Financial and Operational
Highlights
- Net revenue increased by 36.1% to $29.7
million from $21.9 million in
the prior year period.
- Total course enrollments were 589,000, a decrease of 9.4% from
the second quarter of fiscal 2017.
- Cash receipts from online course registration were $43.9 million, a 25.4% increase from the second
quarter of fiscal 2017.
- Gross profit increased by 10.0% to $11.1
million from $10.1 million in
the prior year period.
- Non-GAAP[1] gross profit increased by 9.8% to
$11.1 million from $10.1 million in the prior year period.
- Gross margin was 37.2%, compared with 46.0% in the prior year
period. Non-GAAP1 gross margin was 37.3%, compared with 46.2% in
the prior year period.
- Operating loss increased to $2.9
million from $2.1 million in
the prior year period.
- Non-GAAP[1] operating loss increased to $2.4 million from $1.6
million in the prior year period.
- Net loss was $3.3 million,
compared with net loss of $2.4
million in the prior year period.
- Non-GAAP[1] net loss was $2.7
million compared with non-GAAP net loss of $1.9 million in the prior year period.
- Basic and diluted net loss per American Depositary Share
("ADS") were $0.098, compared with
basic and diluted net loss per ADS of $0.073, for the second quarter of fiscal 2017.
Each ADS represents four ordinary shares.
- Basic and diluted non-GAAP[1] net loss per ADS were
$0.082, compared with basic and
diluted non-GAAP[1] net loss per ADS of $0.059, for the second quarter of fiscal
2017.
- Cash flow from operations decreased by 36.1% to $7.2 million from $11.3
million in the second quarter of fiscal 2017.
[1]
|
For more information
about the non-GAAP financial measures contained in this press
release, please see "Use of Non-GAAP Financial Measures"
below
|
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "During the second quarter of fiscal year 2018,
we delivered strong net revenue growth of 36.1% year-over-year,
exceeding the high end of our guidance range, with our accounting
vertical again driving the outperformance relative to our guidance.
Our total course enrollments were down 9.4% year-over-year in the
second quarter of fiscal year 2018, primarily due to the decrease
in enrollments of our continuing education courses. However,
excluding continuing education course enrollments, our total course
enrollments in the second quarter of fiscal year 2018 increased
17.2% year-over-year. In addition, even though the cash receipts
from continuing education courses were down, we are pleased to
report that our overall cash receipts from online course
registration were up 25.4% year-over-year in our second fiscal
quarter."
Mr. Zhu concluded, "We credit the acceleration of net revenue
and cash receipt growth during the first half of fiscal year 2018
to our best-in-class educational offerings, the strength of our
brand, and the resiliency of our proven business model. We remain
steadfast in our efforts to further enhance our industry-leading
lifelong learning ecosystem, and aim to continue to grow our
existing industry verticals while expanding into select educational
disciplines which complement our overall business."
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, said, "We are encouraged by our strong
momentum in cash receipt growth. As expected, the year-over-year
increase in salaries and related expenses in the second quarter of
fiscal year 2018, which stemmed from the acceleration in hiring
activity ahead of fiscal 2018 as previously disclosed, continued to
be the primary driver of the year-over-year decline in our second
quarter operating margin. However, our second quarter headcount
remained relatively stable compared with the first quarter fiscal
2018 as anticipated."
Mr. Marostica continued, "Of note, the year-over-year decline in
operating margin narrowed significantly in our second quarter
fiscal 2018, compared with the year-over-year decline in operating
margin in our first quarter fiscal 2018, owing to strong second
quarter revenue growth, relatively stable headcount as previously
discussed, and efficient cost control with respect to our second
quarter selling expenses, which decreased by 1.1% compared with the
same period of last year. As we head into our second half of fiscal
year 2018, we will continue to balance investments in growth
initiatives while maintaining a keen focus on profitability."
Second Quarter Fiscal 2018 Financial Results
Net Revenue. Total net revenue increased by 36.1% to
$29.7 million in the second quarter
of fiscal 2018 from $21.9 million in
the second quarter of fiscal 2017. Net revenue from online
education services, books and reference materials, and other
sources contributed 78.6%, 4.7% and 16.7%, respectively, of total
net revenues for the second quarter of fiscal 2018.
Online education services. Net revenue from online
education services increased by 38.7% to $23.4 million in the second quarter of fiscal
2018 from $16.9 million in the second
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. In addition, the moderate
revenue growth from our healthcare vertical also contributed to the
revenue growth.
Books and reference materials. Net revenue from books and
reference materials increased by 9.0% to $1.4 million in the second quarter of fiscal
2018, from $1.3 million in the second
quarter of fiscal 2017.
Others. Net revenue from other sources increased by 33.6%
to $5.0 million in the second quarter
of fiscal 2018 from $3.7 million in
the second quarter of fiscal 2017, primarily due to revenue growth
from offline accounting professional training courses, and revenue
from accounting and related advisory services contributed by our
newly acquired Jiangsu Asset. The increase in revenue from other
sources was partially offset by year-over-year decreases in revenue
from the sale of learning simulation software and business start-up
training services.
Cost of Sales. Cost of sales increased by 58.3% to
$18.7 million in the second quarter
of fiscal 2018 from $11.8 million in
the second quarter of fiscal 2017. Non-GAAP1 cost of
sales increased by 58.7% to $18.7
million in the second quarter of fiscal 2018 from
$11.8 million in the second 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 $11.1 million in the second
quarter of fiscal 2018, up 10.0% from $10.1
million in the prior year period. Non-GAAP1 gross
profit was $11.1 million, increasing
9.8% from $10.1 million in the prior
year period. Gross margin was 37.2% in the second quarter of fiscal
2018, compared with 46.0% in the second quarter of fiscal 2017.
Non-GAAP1 gross margin was 37.3% in the second quarter
of fiscal 2018, compared with 46.2% in the second quarter of fiscal
2017.
Operating Expenses. Total operating expenses increased by
7.9% to $14.1 million in the second
quarter of fiscal 2018, from $13.1
million in the prior year period. Non-GAAP1 total
operating expenses increased by 7.5% to $13.6 million in the second quarter of fiscal
2018, from $12.6 million in the prior
year period.
Selling expenses. Selling expenses decreased by 1.1% to
$8.3 million in the second quarter of
fiscal 2018 from $8.4 million in the
prior year period. Non-GAAP1 selling expenses decreased
by 1.1% to $8.3 million in the second
quarter of fiscal 2018 from $8.4
million in the prior year period. The decrease was primarily
driven by decreased advertising and promotional expenses. The
decrease was partially offset by increased commissions to our
agents.
General and administrative expenses. General and
administrative expenses increased by 24.0% to $5.8 million in the second quarter of fiscal 2018
from $4.6 million in the prior year
period. Non-GAAP1 general and administrative expenses
increased by 24.4% to $5.3 million in
the second quarter of fiscal 2018 from $4.2
million in the prior year period. The increase was mainly
due to increased salaries and related expenses.
Income Tax Benefit. Income tax benefit increased by
150.2% to $1.4 million in the second
quarter of fiscal 2018 from $0.6
million in the prior year period, primarily due to an
increase in taxable loss.
Net Loss. As a result of the foregoing, net loss was
$3.3 million in the second quarter of
fiscal 2018 compared with net loss of $2.4
million in the prior year period. Non-GAAP1 net
loss was $2.7 million in the second
quarter of fiscal 2018 compared with non-GAAP net loss of
$1.9 million in the prior year
period.
Operating Cash Flow. Net operating cash inflow decreased
by 36.1% to $7.2 million in the
second quarter of fiscal 2018 from $11.3
million in the prior year period. The operating cash inflow
was mainly attributable to the decrease in accounts receivable and
inventories, and the increase in deferred revenue. The operating
cash inflow was partially offset by the net loss before non-cash
items incurred in the second quarter of fiscal 2018. The increase
in prepayments and other current assets, deferred tax assets, other
non-current assets and the decrease in accrued expenses and other
liabilities, and income tax payable also contributed to the
operating cash outflow.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments. Cash and cash equivalents, restricted cash and
short-term investments as of March 31,
2018 decreased by 9.2% to $93.5
million from $103.0 million as
of December 31, 2017, mainly due to
(i) the payment of balance of $8.7
million in connection with investment in Beijing teacheredu, (ii) the payments of
$3.5 million and $2.4 million in connection with investments in an
offline IT training company and Beijing Taixing #1 LP,
respectively, (iii) the repayment of a bank loan of $7.4 million, (iv) the payment of dividend of
$14.9 million, and (v) the capital
expenditure of $1.3 million. The
decrease was partially offset by the operating cash inflow
generated and a 1-year bank loan of $15.2
million raised in the second quarter of fiscal 2018.
First Six Months of Fiscal 2018 Financial
Results
Net Revenue. Total net revenue increased by 21.9% to
$65.6 million in the first six months
of fiscal 2018 from $53.8 million in
the first six months of fiscal 2017. Net revenue from online
education services, books and reference materials, and other
sources contributed 69.9%, 5.7% and 24.4%, respectively, of total
net revenues for the first six months of fiscal 2018.
Online education services. Net revenue from online
education services increased by 23.9% to $45.8 million in the first six months of fiscal
2018 from $37.0 million in the first
six months of fiscal 2017.
Books and reference materials. Net revenue from books and
reference materials increased by 29.1% to $3.8 million in the first six months of fiscal
2018, from $2.9 million in the first
six months of fiscal 2017.
Others. Net revenue from other sources increased by 14.9%
to $16.0 million in the first six
months of fiscal 2018 from $13.9
million in the first six months of fiscal 2017.
Cost of Sales. Cost of sales increased by 50.6% to
$37.1 million in the first six months
of fiscal 2018 from $24.6 million in
the first six months of fiscal 2017. Non-GAAP1 cost of
sales increased by 50.8% to $37.0
million in the first six months of fiscal 2018 from
$24.5 million in the first six months
of fiscal 2017.
Gross Profit and Gross Margin. Gross profit
was $28.6 million in the first six
months of fiscal 2018, down 2.3% from $29.2
million in the prior year period. Non-GAAP1 gross
profit was $28.6 million, down 2.3%
from $29.3 million in the prior year
period. Gross margin was 43.5% in the first six months of fiscal
2018, compared with 54.3% in the first six months of fiscal 2017.
Non-GAAP1 gross margin was 43.6% in the first six months
of fiscal 2018, compared with 54.4% in the first six months of
fiscal 2017.
Operating Expenses. Total operating expenses increased by
13.8% to $28.2 million in the first
six months of fiscal 2018, from $24.8
million in the prior year period. Non-GAAP1 total
operating expenses increased by 14.0% to $27.2 million in the first six months of fiscal
2018, from $23.9 million in the prior
year period.
Selling expenses. Selling expenses increased by 11.8% to
$17.5 million in the first six months
of fiscal 2018 from $15.6 million in
the prior year period. Non-GAAP1 selling expenses
increased by 11.9% to $17.4 million
in the first six months of fiscal 2018 from $15.6 million in the prior year period.
General and administrative expenses. General and
administrative expenses increased by 17.3% to $10.8 million in the first six months of fiscal
2018 from $9.2 million in the prior
year period. Non-GAAP1 general and administrative
expenses increased by 18.0% to $9.8
million in the first six months of fiscal 2018 from
$8.3 million in the prior year
period.
Income Tax Benefit (Expense). Income tax benefit was
$0.8 million in the first six months
of fiscal 2018, compared with income tax expense of $1.8 million in the prior year period.
Net Income (Loss). As a result of the foregoing, net loss
was $3.2 million in the first six
months of fiscal 2018 compared with net income of $6.1 million in the prior year period.
Non-GAAP1 net loss was $2.1
million in the first six months of fiscal 2018 compared with
net income of $7.1 million in the
prior year period.
Operating Cash Flow. Net operating cash inflow decreased
by 25.5% to $21.6 million in the
first six months of fiscal 2018 from $29.0
million in the prior year period.
Outlook
For the third quarter of fiscal 2018, the Company expects to
generate total net revenue in the range of $42.5 million to $44.3
million, representing year-over-year growth of approximately
20% to 25%.
For fiscal year 2018, the Company expects to generate total net
revenues in the range of $155.8
million to $162.4 million,
representing year-over-year growth of approximately 19% to 24%.
The above guidance reflects the Company's current and
preliminary view, which is subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, May 17, 2018
(8:00 p.m. Beijing Time on
Thursday, May 17, 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 May 24, 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: 1696696
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 third 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
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. 1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
DL@tpg-ir.com
|
China Distance
Education Holdings Limited
|
Consolidated
Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
|
|
|
|
|
|
September
30, 2017
|
|
March 31,
2018
|
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
60,526
|
|
35,851
|
|
|
Restricted
cash
|
34,855
|
|
56,071
|
|
|
Short term
investments
|
5,261
|
|
1,594
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$1,446 and US$1,191 as
of March 31, 2018 and September 30, 2017, respectively
|
5,525
|
|
6,776
|
|
|
Inventories
|
864
|
|
1,696
|
|
|
Prepayment and other
current assets
|
10,439
|
|
16,846
|
|
|
Deferred tax assets,
current portion
|
1,654
|
|
-
|
|
|
Deferred
cost
|
711
|
|
698
|
|
|
Total
current assets
|
119,835
|
|
119,532
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
14,022
|
|
17,628
|
|
|
Goodwill
|
29,459
|
|
34,974
|
|
|
Long term
investments
|
43,631
|
|
66,592
|
|
|
Other intangible
assets, net
|
9,947
|
|
10,571
|
|
|
Deposit for purchase
of non-current assets
|
641
|
|
8,759
|
|
|
Deferred tax assets,
non-current portion
|
-
|
|
4,789
|
|
|
Other non-current
assets
|
7,016
|
|
10,903
|
|
|
Total
non-current assets
|
104,716
|
|
154,216
|
|
|
|
|
|
|
|
|
Total
assets
|
224,551
|
|
273,748
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
borrowings
|
29,965
|
|
50,388
|
|
|
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$33,458 and US$31,684 as of March
31, 2018 and September 30, 2017, respectively)
|
38,767
|
|
39,284
|
|
|
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$3,226
and US$3,641 as of March 31, 2018 and September 30, 2017,
respectively)
|
6,750
|
|
4,237
|
|
|
Deferred revenue
(including deferred revenue of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$89,481
and US$49,575 as of March 31, 2018 and September 30, 2017,
respectively)
|
50,506
|
|
90,652
|
|
|
Refundable fees
(including refundable fees of the consolidated VIE without recourse
to China Distance Education Holdings Limited of US$1,184 and
US$1,074 as of March 31, 2018 and September 30, 2017,
respectively)
|
1,074
|
|
1,184
|
|
|
Total
current liabilities
|
128,710
|
|
185,745
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities, non-current portion
|
3,099
|
|
5,120
|
|
|
Long-term bank
borrowing
|
19,930
|
|
13,647
|
|
|
Total
non-current liabilities
|
23,029
|
|
18,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
151,739
|
|
204,512
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share at March 31, 2018 and September 30,
2017, respectively; Authorized –500,000,000 shares at March 31,
2018 and September 30, 2017, respectively; Issued and outstanding
–133,177,873 and 131,854,773 shares at March 31, 2018 and September
30, 2017, respectively)
|
13
|
|
13
|
|
|
Additional paid-in
capital
|
19,097
|
|
20,116
|
|
|
Accumulated other
comprehensive loss (gain)
|
(3,367)
|
|
6,693
|
|
|
Retained
Earnings
|
33,040
|
|
14,920
|
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
48,783
|
|
41,742
|
|
|
Noncontrolling
interest
|
24,029
|
|
27,494
|
|
|
Total
equity
|
72,812
|
|
69,236
|
|
|
Total
liabilities and equity
|
224,551
|
|
273,748
|
|
|
|
|
|
|
|
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 March 31,
|
|
2017
|
|
2018
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
16,869
|
|
23,396
|
|
Books and reference
materials
|
1,276
|
|
1,391
|
|
Others
|
3,713
|
|
4,961
|
|
- Sale of learning
simulation software
|
904
|
|
739
|
|
-
Business start-up training services
|
1,103
|
|
642
|
|
-
Others
|
1,706
|
|
3,580
|
|
Total
net revenues
|
21,858
|
|
29,748
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(11,099)
|
|
(17,550)
|
|
Cost of tangible
goods sold
|
(698)
|
|
(1,130)
|
|
Total
cost of sales
|
(11,797)
|
|
(18,680)
|
|
|
|
|
|
Gross
profit
|
10,061
|
|
11,068
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(8,432)
|
|
(8,341)
|
|
General and
administrative expenses
|
(4,648)
|
|
(5,766)
|
|
Total
operating expenses
|
(13,080)
|
|
(14,107)
|
Other operating
income
|
950
|
|
128
|
|
|
|
|
|
Operating
loss
|
(2,069)
|
|
(2,911)
|
|
|
|
|
Interest
income
|
495
|
|
667
|
Interest
expense
|
(151)
|
|
(869)
|
Exchange
loss
|
(1,137)
|
|
(3,109)
|
|
|
|
|
|
Loss before
income taxes
|
(2,862)
|
|
(6,222)
|
Income tax
benefit
|
572
|
|
1,431
|
Loss from equity
method investment
|
(34)
|
|
(16)
|
|
|
|
|
Net
loss
|
(2,324)
|
|
(4,807)
|
Net (income)/loss
attributable to noncontrolling interest
|
(89)
|
|
1,542
|
Net
loss attributable to China Distance Education
Holdings Limited
|
(2,413)
|
|
(3,265)
|
Net loss
per share:
|
|
|
|
Net loss
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
(0.018)
|
|
(0.025)
|
|
Diluted
|
(0.018)
|
|
(0.025)
|
Net loss
per ADS:
|
|
|
|
Net loss
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
(0.073)
|
|
(0.098)
|
|
Diluted
|
(0.073)
|
|
(0.098)
|
|
|
|
|
Weighted average
shares used in calculating net loss per
share:
|
|
|
|
|
Basic
|
131,449,547
|
|
132,411,344
|
|
Diluted
|
131,449,547
|
|
132,411,344
|
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)
|
|
|
Six Months
Ended March 31,
|
|
2017
|
|
2018
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
36,975
|
|
45,829
|
|
Books and reference
materials
|
2,918
|
|
3,768
|
|
Others
|
13,948
|
|
16,029
|
|
- Sale of learning
simulation software
|
7,367
|
|
6,899
|
|
-
Business start-up training services
|
2,749
|
|
2,048
|
|
-
Others
|
3,832
|
|
7,082
|
|
Total
net revenues
|
53,841
|
|
65,626
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of services and
others
|
(23,062)
|
|
(33,888)
|
|
Cost of tangible
goods sold
|
(1,545)
|
|
(3,172)
|
|
Total
cost of sales
|
(24,607)
|
|
(37,060)
|
|
|
|
|
|
Gross
profit
|
29,234
|
|
28,566
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(15,617)
|
|
(17,463)
|
|
General and
administrative expenses
|
(9,178)
|
|
(10,762)
|
|
Total operating
expenses
|
(24,795)
|
|
(28,225)
|
Other operating
income
|
1,450
|
|
1,857
|
|
|
|
|
|
Operating
income
|
5,889
|
|
2,198
|
|
|
|
|
Interest
income
|
725
|
|
1,123
|
Interest
expense
|
(270)
|
|
(1,616)
|
Exchange
gain/(loss)
|
2,769
|
|
(5,008)
|
|
|
|
|
|
Income/(Loss)
before income taxes
|
9,113
|
|
(3,303)
|
Income tax
benefit/(expense)
|
(1,822)
|
|
760
|
Loss from equity
method investment
|
(78)
|
|
(45)
|
|
|
|
|
Net
income/(loss)
|
7,213
|
|
(2,588)
|
Net income
attributable to noncontrolling interest
|
(1,070)
|
|
(583)
|
Net
income/(loss) attributable to China Distance
Education Holdings Limited
|
6,143
|
|
(3,171)
|
Net
income/(loss) per share:
|
|
|
|
Net
income/(loss) attributable to China Distance
Education Holdings Limited shareholders
|
|
|
|
|
Basic
|
0.047
|
|
(0.024)
|
|
Diluted
|
0.046
|
|
(0.024)
|
Net
income/(loss) per ADS:
|
|
|
|
Net
income/(loss) attributable to China Distance
Education Holdings Limited shareholders
|
|
|
|
|
Basic
|
0.186
|
|
(0.096)
|
|
Diluted
|
0.185
|
|
(0.096)
|
|
|
|
|
Weighted average
shares used in calculating net income/(loss) per
share:
|
|
|
|
|
Basic
|
131,375,890
|
|
132,035,108
|
|
Diluted
|
132,496,017
|
|
132,035,108
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
2017
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
11,797
|
|
18,680
|
Share-based
compensation expense in cost of sales
|
|
40
|
|
26
|
Non-GAAP cost of
sales
|
|
11,757
|
|
18,654
|
|
|
|
|
|
Selling
expenses
|
|
8,432
|
|
8,341
|
Share-based
compensation expense in selling expenses
|
|
21
|
|
20
|
Non-GAAP selling
expenses
|
|
8,411
|
|
8,321
|
|
|
|
|
|
General and
administrative expenses
|
|
4,648
|
|
5,766
|
Share-based
compensation expense in general and administrative
expenses
|
|
423
|
|
508
|
Non-GAAP general and
administrative expenses
|
|
4,225
|
|
5,258
|
|
|
|
|
|
Gross
profit
|
|
10,061
|
|
11,068
|
Share-based
compensation expenses
|
|
40
|
|
26
|
Non-GAAP gross
profit
|
|
10,101
|
|
11,094
|
|
|
|
|
|
Gross profit
margin
|
|
46.0%
|
|
37.2%
|
Non-GAAP gross profit
margin
|
|
46.2%
|
|
37.3%
|
|
|
|
|
|
Operating
loss
|
|
(2,069)
|
|
(2,911)
|
Share-based
compensation expenses
|
|
484
|
|
554
|
Non-GAAP operating
loss
|
|
(1,585)
|
|
(2,357)
|
|
|
|
|
|
Operating
margin
|
|
(9.5%)
|
|
(9.8%)
|
Non-GAAP operating
margin
|
|
(7.3%)
|
|
(7.9%)
|
|
|
|
|
|
Net loss
|
|
(2,413)
|
|
(3,265)
|
Share-based
compensation expense
|
|
484
|
|
554
|
Non-GAAP net
loss
|
|
(1,929)
|
|
(2,711)
|
|
|
|
|
|
Net loss
margin
|
|
(11.0%)
|
|
(11.0%)
|
Non-GAAP net loss
margin
|
|
(8.8%)
|
|
(9.1%)
|
|
|
|
|
|
Net loss per
share—basic
|
|
(0.018)
|
|
(0.025)
|
Net loss per
share—diluted
|
|
(0.018)
|
|
(0.025)
|
Non-GAAP net loss per
share—basic
|
|
(0.015)
|
|
(0.020)
|
Non-GAAP net loss per
share—diluted
|
|
(0.015)
|
|
(0.020)
|
|
|
|
|
|
Net loss per ADS
attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
(0.073)
|
|
(0.098)
|
Net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
(0.073)
|
|
(0.098)
|
Non-GAAP net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
(0.059)
|
|
(0.082)
|
Non-GAAP net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
(0.059)
|
|
(0.082)
|
|
|
|
|
|
Weighted average
shares used in calculating basic net loss per share
|
|
131,449,547
|
|
132,411,344
|
Weighted average
shares used in calculating diluted net loss per share
|
|
131,449,547
|
|
132,411,344
|
Weighted average
shares used in calculating basic non-GAAP net loss per
share
|
|
131,449,547
|
|
132,411,344
|
Weighted average
shares used in calculating diluted non-GAAP net loss per
share
|
|
131,449,547
|
|
132,411,344
|
|
|
|
|
|
China Distance
Education Holdings Limited
|
Reconciliations of
non-GAAP measures to comparable GAAP measures
|
(In thousands of
US Dollars, except number of shares, per share and per ADS
data)
|
|
|
|
|
|
Six Months
Ended March 31,
|
|
|
2017
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
24,607
|
|
37,060
|
Share-based
compensation expense in cost of sales
|
|
81
|
|
71
|
Non-GAAP cost of
sales
|
|
24,526
|
|
36,989
|
|
|
|
|
|
Selling
expenses
|
|
15,617
|
|
17,463
|
Share-based
compensation expense in selling expenses
|
|
42
|
|
40
|
Non-GAAP selling
expenses
|
|
15,575
|
|
17,423
|
|
|
|
|
|
General and
administrative expenses
|
|
9,178
|
|
10,762
|
Share-based
compensation expense in general and administrative
expenses
|
|
859
|
|
945
|
Non-GAAP general and
administrative expenses
|
|
8,319
|
|
9,817
|
|
|
|
|
|
Gross
profit
|
|
29,234
|
|
28,566
|
Share-based
compensation expenses
|
|
81
|
|
71
|
Non-GAAP gross
profit
|
|
29,315
|
|
28,637
|
|
|
|
|
|
Gross profit
margin
|
|
54.3%
|
|
43.5%
|
Non-GAAP gross profit
margin
|
|
54.4%
|
|
43.6%
|
|
|
|
|
|
Operating
income
|
|
5,889
|
|
2,198
|
Share-based
compensation expenses
|
|
982
|
|
1,056
|
Non-GAAP operating
income
|
|
6,871
|
|
3,254
|
|
|
|
|
|
Operating
margin
|
|
10.9%
|
|
3.3%
|
Non-GAAP operating
margin
|
|
12.8%
|
|
5.0%
|
|
|
|
|
|
Net
income/(loss)
|
|
6,143
|
|
(3,171)
|
Share-based
compensation expense
|
|
982
|
|
1,056
|
Non-GAAP net
income/(loss)
|
|
7,125
|
|
(2,115)
|
|
|
|
|
|
Net income/(loss)
margin
|
|
11.4%
|
|
(4.8%)
|
Non-GAAP net
income/(loss) margin
|
|
13.2%
|
|
(3.2%)
|
|
|
|
|
|
Net income/(loss) per
share—basic
|
|
0.047
|
|
(0.024)
|
Net income/(loss) per
share—diluted
|
|
0.046
|
|
(0.024)
|
Non-GAAP net
income/(loss) per share—basic
|
|
0.054
|
|
(0.016)
|
Non-GAAP net
income/(loss) per share—diluted
|
|
0.054
|
|
(0.016)
|
|
|
|
|
|
Net income/(loss) per
ADS attributable to China Distance Education Holdings Limited
shareholders—basic (note 1)
|
|
0.186
|
|
(0.096)
|
Net income/(loss) per
ADS attributable to China Distance Education Holdings Limited
shareholders—diluted (note 1)
|
|
0.185
|
|
(0.096)
|
Non-GAAP net
income/(loss) per ADS attributable to China Distance Education
Holdings Limited shareholders—basic (note 1)
|
|
0.217
|
|
(0.064)
|
Non-GAAP net
income/(loss) per ADS attributable to China Distance Education
Holdings Limited shareholders—diluted (note 1)
|
|
0.215
|
|
(0.064)
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income/(loss) per
share
|
|
131,375,890
|
|
132,035,108
|
Weighted average
shares used in calculating diluted net income/(loss) per
share
|
|
132,496,017
|
|
132,035,108
|
Weighted average
shares used in calculating basic non-GAAP net income/(loss) per
share
|
|
131,375,890
|
|
132,035,108
|
Weighted average
shares used in calculating diluted non-GAAP net income/(loss) per
share
|
|
132,496,017
|
|
132,035,108
|
|
|
|
|
|
Note 1: Each ADS represents four ordinary shares.
View original
content:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-financial-results-for-second-quarter-fiscal-year-2018-300649741.html
SOURCE China Distance Education Holdings Limited