BEIJING, May 28, 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 first quarter
of 2020.
Impact from COVID-19
The COVID-19 pandemic adversely affected the Company's
operations during the first quarter of 2020. After the national
holiday for Chinese New Year in January, the Company took measures
to temporarily suspend operations at its facilities in accordance
with government requirements to contain the outbreak. As of
March 31, 2020, all of the directly
operated facilities across China
had not resumed daily operations, resulting in a substantial
decline in revenues for the first quarter compared with the same
period last year. During the period of the temporary facility
closure, the Company acted quickly and effectively to establish and
maintain open communication with the families of the students it
serves through a variety of methods. The Company distributed
high-quality educational content via online portals in this
unprecedented time and gained positive feedback from parents. By
the end of the first quarter of 2020, the Company had attracted
more than 350,000 registered users through several of its
service accounts and iLoveGrowth app, and accumulated more than
660,000 views in the early childhood education section of a
third-party video streaming platform.
Moreover, the Company implemented a set of actions, including
cost control and personnel optimization, reducing various capital
expenditures, applying for kindergarten-related subsidies and other
Covid-19 support measures provided by the government, all in an
effort to secure the Company's financial position and liquidity. As
of March 31, 2020, the Company had a
total of $53.9 million of cash and
cash equivalents and is currently in the process of negotiating to
obtain a credit facility. As of May 28,
2020, a number of the Company's directly operated
kindergartens had re-opened across China, and the Company expects the rest of its
kindergartens and play-and-learn centers to resume operations soon.
In addition, due to the COVID-19 outbreak in Singapore, the Company's facilities there
temporarily suspended operation in April and May 2020. The Company received relief aids or
subsidy from the government of Singapore during these months and currently
expects to reopen its facilities in Singapore starting in early June 2020.
First Quarter 2020 Operational and Financial
Summary
- Number of students enrolled at directly operated facilities was
31,251[1] as of March 31, 2020, compared with
24,572 as of March 31, 2019.
- Net revenues decreased by 49.5% to $17.3 million, compared
with $34.3 million for the first quarter of
2019.
- Gross loss was $11.6 million, compared
with gross profit of $1.8 million for the first quarter of
2019.
- Net loss attributable to ordinary shareholders of RYB for the
first quarter of 2020 was $26.6 million, compared
with $2.3 million for the first quarter of 2019.
Adjusted net loss attributable to ordinary
shareholders[2] of RYB for the first quarter of
2020 was $25.8 million, compared with $1.2 million for the first quarter of
2019.
- Cash used in operating activities
was $14.0 million in the first quarter of 2020,
compared with $13.2 million generated from operating
activities for the first quarter of 2019.
[1] The
number of students enrolled refers to the number of students
enrolled before the temporary closure of the Company's facilities
in China due to COVID-19 who remained enrolled as at March 31,
2020, and the number of students enrolled in our facilities in
Singapore as at March 31, 2020. Our facilities in Singapore
remained open as at March 31, 2020.
|
|
[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 in redeemable
non-controlling interests. See "Use of Non-GAAP Financial Measures"
and "Reconciliations of GAAP and non-GAAP results" elsewhere in
this earnings release.
|
"In response to challenges presented by the COVID-19 pandemic,
we have quickly made adjustments to various business operations and
accelerated the implementation of our digital strategy," said Ms.
Yanlai Shi, Co-founder, Director and Chief Executive Officer of
RYB. "During the period of temporary facility closure, we
initiated online portals providing families and students with rich
educational content. These portals included self-developed
platforms and channels as well as resources utilized from
third-party platforms. During the facility shutdown period, our
teaching, operations and marketing teams devoted themselves to
producing and promoting online content. The broad spectrum of
high-quality content and applicable tools we made available online
received positive feedback from parents and were warmly embraced by
our students. In addition, we started building an online platform
with extra options to promote and distribute paid content. Lastly,
to help our current franchisees weather the challenges brought upon
by the COVID-19 pandemic, we have announced that we will waive a
total of 3 months' worth of annual fees for them. All of these
actions reflect our ability to respond quickly and our ability to
execute.
"At this time, the vast majority of our directly
operated kindergartens are getting ready to reopen in accordance
with the timeline issued by government authorities. To ensure a
smooth reopening, we have upgraded our safety and health operating
manuals with special COVID-19 protocols. Our primary focus and
attention have been, and continue to be, on the health and safety
of the children and families we serve. With phased reopening of
virtually all of our facilities, we will continuously monitor
guidelines and follow directions from government authorities and
medical experts and operate facilities utilizing our newly updated
manuals to serve children and families in these unprecedented
circumstances. Following the reopenings, we are confident that our
business operations will gradually recover from the disruptions
during the remainder of the year. We have been and are always
committed to providing quality early educational services to
children and supporting their parents. Furthermore, we will
integrate the content and online operational capabilities
accumulated during the temporary facility closure period into our
core business operations. In doing so, we look forward to better
addressing the evolving needs of modern parents and students and
providing integrated online-merge-offline early childhood
educational services that blend facility-based learning and
learning at home," concluded Ms. Shi.
Mr. Hao Gu, Chief Financial Officer of RYB, added, "In the first
quarter of 2020, our financial performance and operations were
substantially disrupted by the COVID-19 outbreak, as all of our
facilities in China were
temporarily closed starting from late January 2020. Our net revenues for the quarter
were $17.3 million, a 49.5% decrease
from the same period last year, and operating cash outflow for the
quarter was $14.0 million, mainly due
to temporary facility closures during the outbreak. In response, we
focused efforts on cost control and capital expenditure reduction
and have taken steps to strengthen our liquidity position and to
further optimize cost structures within the Company.
"Looking ahead to the rest of 2020, with stringent cost control
measures in place and mindful investment strategies, we believe
that the current business disruption resulting from the pandemic
will gradually subside. Despite the conditions created by the
COVID-19 outbreak, we remain confident in our business model and
the strength of our balance sheet and liquidity position. We will
continue to improve our educational services and products,
particularly through leveraging our digital technologies to capture
evolving market opportunities. We believe our steadfast commitment
to high-quality education will help us navigate short-term
challenges, yield healthy mid- and long-term growth and create
long-term shareholder value," concluded Mr. Gu.
First Quarter 2020 Financial
Results
Net Revenues
Net revenues for the first quarter of 2020 decreased by 49.5%
to $17.3 million, from $34.3 million for the same
quarter of 2019.
Service revenues for the first quarter of 2020 decreased by
47.3% to $16.8 million, from $31.8 million for the
same quarter of 2019. The decrease was due to decreased tuition
fees as the Company began the temporary closures of all facilities
in China beginning in late January
as a result of COVID-19 outbreak. Franchise services revenues also
decreased owing to the slow-down of play-and-learn franchise
expansion and lower revenue generated from franchisees due to the
impact of COVID-19. The decrease was partially offset by
services revenues contributed by facilities in Singapore that remained operational during the
first quarter of 2020.
Product revenues for the first quarter of 2020 decreased by
78.2% to $0.5 million, from $2.4 million for the
same quarter of 2019. The decrease was due to a significant
decrease in the amount of merchandise sold through the Company's
franchise network as all of the franchisees' facilities were
temporarily closed during most of the first quarter.
Cost of Revenues
Cost of revenues for the first quarter of 2020 was $28.9
million, a 10.8% decrease from $32.4 million for the same
quarter of 2019. Cost of revenues for services for the first
quarter of 2020 was $28.7 million, compared with $31.2
million for the same quarter of 2019. The decrease was mainly
driven by a decrease in the direct cost of those facilities
temporarily closed during the first quarter and certain mitigating
steps taken by the Company to optimize cost structures, such
as reducing labor cost and discretionary spending. The decrease was
partially offset by costs incurred in the directly operated
facilities in Singapore that were
acquired during the second quarter of 2019. Cost of products
revenues for the first quarter of 2020 was $0.3 million,
compared with $1.2 million for the same quarter of 2019.
The decrease was generally in line with the decrease in products
revenues.
Gross Loss
As a result of the foregoing, gross loss for the first quarter
of 2020 was $11.6 million, compared
with gross profit of $1.8
million for the same quarter of 2019.
Operating Expenses
Total operating expenses for the first quarter of 2020
were $14.5 million, compared with $5.9
million for the first quarter of 2019. Excluding share-based
compensation expenses, operating expenses were $13.7 million,
an increase of 198.4% from $4.6 million for the first
quarter of 2019.
Selling expenses for the first quarter of 2020
were $0.2 million, compared with $0.6
million for the same quarter of 2019.
General and administrative ("G&A") expenses for the first
quarter of 2020 were $5.8 million, a 9.2% increase
from $5.3 million for the same quarter of 2019. Excluding
share-based compensation expenses, G&A expenses were
$5.0 million, compared with
$4.0 million for the same quarter of
2019. The share-based compensation expenses included in G&A
expenses were $0.8 million for the first quarter of 2020.
The increase in G&A expenses excluding share-based compensation
expenses was primarily due to the G&A expenses incurred in
directly operated facilities in Singapore. The increase was partially offset
by the decrease in G&A expenses in China as a result of stringent cost control
measures taken in response to COVID-19 outbreak.
Impairment loss on goodwill was $8.5
million for the first quarter of 2020, compared to nil for
the same quarter last year. Due to the impact of COVID-19 on
operations and financial results, the Company concluded that an
impairment indicator existed at the end of the first quarter and
the fair value of its certain reporting units, primarily those with
new initiatives, were less than their carrying value. As a result
of these impairment assessments, the Company determined that there
was an impairment loss on goodwill of $8.5
million.
Operating Loss
Operating loss for the first quarter of 2020 was $26.1 million, compared with $4.0 million for the same quarter last year.
Adjusted operating loss[3] was $25.3 million for the first quarter of 2020,
compared with $2.7 million for the
same quarter of 2019.
[3]
Adjusted operating income (loss) is a non-GAAP financial measure,
which is defined as operating income (loss) excluding share-based
compensation expenses. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non-GAAP results" elsewhere in this
earnings release.
|
Net Loss
Net loss attributable to ordinary shareholders of RYB for the
first quarter of 2020 was $26.6
million. Adjusted net loss attributable to ordinary
shareholders of RYB, which excludes the impact of $0.8 million of share-based compensation expense
for the first quarter of 2020, was $25.8
million.
Basic and diluted net loss per American depositary share ("ADS")
attributable to ordinary shareholders of RYB for the first quarter
of 2020 were both $0.96. Each ADS
represents one Class A ordinary share.
Adjusted basic and diluted net loss per ADS attributable to
ordinary shareholders[4] of RYB for the first quarter of
2020 were both $0.93.
EBITDA[5] for the first quarter of 2020 was a loss of
$24.8 million. Adjusted
EBITDA[6] for the first quarter of 2020 was a loss of
$24.0 million.
[4]
Adjusted basic and diluted net income (loss) per ADS attributable
to ordinary shareholders is a non- GAAP financial measure, which is
defined as basic and diluted net income (loss) per ADS attributable
to ordinary shareholders excluding share-based compensation
expenses and changes in redeemable non-controlling interest. See
"Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP
and non-GAAP results" elsewhere in this earnings
release.
|
|
[5] EBITDA
is defined as net income (loss) excluding depreciation,
amortization and income tax expenses. See "Use of Non-GAAP
Financial Measures" and "Reconciliations of GAAP and non- GAAP
results" elsewhere in this earnings release.
|
|
[6]
Adjusted EBITDA is a non-GAAP financial measure, which is defined
as net income (loss) excluding depreciation, amortization, interest
expenses, income tax expenses, and share-based compensation
expenses. See "Use of Non-GAAP Financial Measures" and
"Reconciliations of GAAP and non- GAAP results" elsewhere in this
earnings release.
|
Operating Cash Flow
Cash used in operating activities was $14.0
million during the first quarter of 2020, compared
with $13.2 million generated from operating activities during
the first quarter of 2019. In late January
2020, following the control measures and regulations
introduced by the government, the Company began the temporary
closure of its facilities in China. This had a significant adverse
impact on the operating cash flow, as the majority of the cash
inflow is derived from the collection of tuition fee from such
facilities.
Balance Sheet
As of March 31, 2020, the Company
had total cash and cash equivalents of $53.9
million, a decrease from $68.7
million as of December 31,
2019. The decrease in cash balance was mainly due to the
operating cash outflow of $14.0
million during this quarter as a result of the disruption of
the pandemic.
Business Outlook
As China effectively contains
the rapid spread of COVID-19 and new infection cases continue to
decline, economic activities are gradually picking up throughout
the country. Since early May, local authorities have announced
back-to-school schedules, providing visibility to the recovery of
our business operations. A number of our facilities have been
reopened as of today, and we expect the majority of our existing
kindergartens will be able to resume operations by the end of the
second quarter. Based on the information available as of the date
of this press release, for the second quarter of 2020, the
Company's management currently expects net revenues to be in the
range of $11.0 million and $11.8 million.
The above outlook is based on the current market conditions and
reflects the Company management's current view, which is subject to
change given the dynamic impact of COVID-19 and uncertainties
surrounding the reopening schedule of its facilities.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern
Time on Friday, May 29, 2020 (8:00
p.m. Beijing Time on May 29, 2020) to discuss financial
results and answer questions from investors and
analysts. Listeners may access the call by dialing:
United States (toll
free):
|
1-888-346-8982
|
International:
|
1-412-902-4272
|
Mainland China (toll
free):
|
400-120-1203
|
Hong Kong (toll
free):
|
800-905-945
|
Participants should dial-in at least 10-15 minutes before the
scheduled start time and ask to be connected to the RYB Education,
Inc. conference call.
A telephone replay will be available approximately one hour
after the call until June 5, 2020 by dialing:
United States (toll
free):
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
10144579
|
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 over two decades 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.
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 in redeemable non-controlling interest; 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 in redeemable non-controlling
interest.
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
enrollment 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
|
|
March 31,
2020
|
December 31,
2019
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
53,902
|
68,728
|
Term
deposits
|
-
|
1,005
|
Accounts receivable,
net
|
2,447
|
2,804
|
Inventories
|
7,176
|
7,256
|
Prepaid expenses and
other current assets
|
11,077
|
10,279
|
Amounts due from
related parties
|
-
|
349
|
Loan
receivables
|
565
|
1,149
|
Total current
assets
|
75,167
|
91,570
|
|
|
|
Non-current
assets:
|
|
|
Restricted
cash
|
698
|
710
|
Property, plant and
equipment, net
|
49,363
|
50,142
|
Intangible
assets
|
15,702
|
17,700
|
Goodwill
|
43,741
|
52,687
|
Long-term
investment
|
2,632
|
5,237
|
Deferred tax
assets
|
13,268
|
18,161
|
Operating lease
right-of-use assets
|
86,528
|
83,403
|
Other non-current
assets
|
13,630
|
16,484
|
Total
assets
|
300,729
|
336,094
|
|
|
|
Liabilities
|
|
|
Current
liabilities:
|
|
|
Prepayments from
customers, current portion (including
prepayments from customers of the consolidated
VIEs
without recourse to the Group of $5,249 and
$5,904 as
of March 31, 2020 and December 31,
2019, respectively)
|
5,249
|
5,904
|
Accrued expenses and
other current liabilities (including
accrued expenses and other current liabilities
of the
consolidated VIEs without recourse to the
Group of
$52,297 and $47,825 as of March 31, 2020
and
December 31, 2019, respectively)
|
59,333
|
56,472
|
Income taxes payable
(including income taxes payable of
the consolidated VIEs without recourse to
the Group of
$13,371 and $14,364 as of March 31, 2020
and
December 31,
2019, respectively)
|
13,985
|
14,929
|
Operating lease
liabilities, current portion (including
operating lease liabilities of the consolidated
VIEs
without recourse to the Group of $16,094
and $13,068 as
of March 31, 2020 and December 31,
2019, respectively)
|
19,252
|
16,399
|
Deferred revenue,
current portion (including deferred
revenue of the consolidated
VIEs without recourse to the
Group of $23,447 and $30,266 as of March 31,
2020 and
December 31, 2019, respectively)
|
24,879
|
31,993
|
Amounts due to
related parties (including amounts due to
related parties of the consolidated VIEs without
recourse
to the Group of nil and $124 as of March 31,
2020 and
December 31, 2019, respectively)
|
-
|
124
|
Long-term debt,
current portion (including long-term debt
of the consolidated VIEs without recourse to the
Group of
nil and nil as of March 31, 2020 and
December 31, 2019,
respectively)
|
64
|
87
|
Total current
liabilities
|
122,762
|
125,908
|
|
|
|
Non-current
liabilities:
|
|
|
Prepayments from
customers, non-current portion
(including prepayments from customers of the
consolidated VIEs without recourse to the
Group of
$2,117 and $2,508 as of March 31, 2020
and
December 31, 2019, respectively)
|
2,117
|
2,508
|
Deferred revenue,
non-current portion (including
deferred revenue of the consolidated
VIEs without
recourse to the Group of $4,084 and $4,206 as
of
March 31, 2020 and December 31,
2019, respectively)
|
5,387
|
5,531
|
Operating lease
liabilities, non-current portion (including
operating lease liabilities of the consolidated
VIEs
without recourse to the Group of $68,909
and $68,509
as of March 31, 2020 and December 31,
2019, respectively)
|
72,845
|
71,012
|
Other non-current
liabilities (including other non-current
liabilities of the consolidated
VIEs without recourse to the
Group of $9,064 and $9,167 as of March 31, 2020
and
December 31,
2019, respectively)
|
10,830
|
11,034
|
Deferred income tax
liabilities (including deferred income
tax liabilities of the consolidated
VIEs without recourse to
the Group of $738 and $1,271 as of March 31,
2020 and
December 31,
2019, respectively)
|
2,802
|
3,384
|
Total
liabilities
|
216,743
|
219,377
|
|
|
|
|
|
|
Mezzanine
equity
Redeemable
non-controlling interests
|
8,516
|
8,801
|
|
|
|
Equity
|
|
|
Ordinary
shares
|
29
|
29
|
Treasury
stock
|
(11,217)
|
(12,000)
|
Additional paid-in
capital
|
139,860
|
139,843
|
Statutory
reserve
|
4,060
|
4,060
|
Accumulated other
comprehensive (loss) income
|
(877)
|
141
|
Accumulated
deficit
|
(60,583)
|
(33,553)
|
Total RYB
Education, Inc. shareholders' equity
|
71,272
|
98,520
|
Non-controlling
interest
|
4,198
|
9,396
|
Total
equity
|
75,470
|
107,916
|
Total liabilities,
mezzanine equity and total equity
|
300,729
|
336,094
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands of
U.S. dollars, except share, ADS, per share and per ADS
data)
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
2019
|
|
Net
revenues:
|
|
|
|
Services
|
16,792
|
31,843
|
|
Products
|
527
|
2,421
|
|
Total net
revenues
|
17,319
|
34,264
|
|
Cost of
revenues:
|
|
|
|
Services
|
28,655
|
31,196
|
|
Products
|
256
|
1,230
|
|
Total cost of
revenues
|
28,911
|
32,426
|
|
Gross (loss)
profit
|
(11,592)
|
1,838
|
|
|
|
|
|
Operating
expenses
|
|
|
|
Selling
Expenses
|
232
|
550
|
|
General
and administrative
|
5,811
|
5,323
|
|
Impairment loss on goodwill
|
8,454
|
-
|
|
Total operating
expenses
|
14,497
|
5,873
|
|
|
|
|
|
Operating
loss
|
(26,089)
|
(4,035)
|
|
Interest
income
|
49
|
205
|
|
Government subsidy
income
|
145
|
125
|
|
Gain on disposal of
subsidiaries
|
-
|
697
|
|
|
|
|
|
Loss before income
taxes
|
(25,895)
|
(3,008)
|
|
Less: Income tax
expense (benefit)
|
4,222
|
(437)
|
|
|
|
|
|
Loss before loss
in equity method investments
|
(30,117)
|
(2,571)
|
|
Loss from equity
method investments
|
(1,893)
|
(113)
|
|
|
|
|
|
Net
loss
|
(32,010)
|
(2,684)
|
|
Less: Net loss
attributable to non-controlling interest
|
(5,393)
|
(192)
|
|
Decrease in redeemable
non-controlling interests
|
-
|
(143)
|
|
|
|
|
|
Net loss
attributable to ordinary
shareholders of RYB
|
(26,617)
|
(2,349)
|
|
|
|
|
|
Net loss per share
attributable to ordinary
shareholders of RYB Education, Inc.
|
|
|
|
Basic
|
(0.96)
|
(0.08)
|
|
Diluted
|
(0.96)
|
(0.08)
|
|
Net loss per ADS
attributable to ordinary
shareholders of RYB Education, Inc. (Note 1)
|
|
|
|
Basic
|
(0.96)
|
(0.08)
|
|
Diluted
|
(0.96)
|
(0.08)
|
|
Weighted average
shares used in calculating
net loss per ordinary share
|
|
|
|
Basic
|
27,681,509
|
29,033,754
|
|
Diluted
|
27,681,509
|
29,033,754
|
|
|
|
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
March 31,
|
|
2020
|
2019
|
Net loss
|
(32,010)
|
(2,684)
|
Other comprehensive
loss, net of tax of nil:
|
|
|
Change in cumulative
foreign currency translation
adjustments
|
(1,509)
|
(63)
|
Total
comprehensive loss
|
(33,519)
|
(2,747)
|
Less: Comprehensive
loss attributable to
non-controlling interest
|
(5,884)
|
(43)
|
Comprehensive loss attributable
to
RYB Education, Inc.
|
(27,635)
|
(2,704)
|
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 March
31,
|
|
2020
|
2019
|
|
|
|
Operating
loss
|
(26,089)
|
(4,035)
|
Share-based
compensation expenses
|
800
|
1,297
|
Adjusted operating
loss
|
(25,289)
|
(2,738)
|
|
|
|
Net loss attributable
to RYB
|
(26,617)
|
(2,349)
|
Decrease in
redeemable non-controlling interest
|
-
|
(143)
|
Share-based
compensation expenses
|
800
|
1,297
|
Adjusted net loss
attributable to RYB
|
(25,817)
|
(1,195)
|
|
|
|
Net loss
|
(32,010)
|
(2,684)
|
Add: Income tax
expense (benefit)
|
4,222
|
(437)
|
Depreciation and amortization
|
3,036
|
2,441
|
EBITDA
|
(24,752)
|
(680)
|
Share-based
compensation expenses
|
800
|
1,297
|
Adjusted
EBITDA
|
(23,952)
|
617
|
|
|
|
Net loss per ADS
attributable to ordinary shareholders
of RYB Education, Inc. - Basic
(Note1)
|
(0.96)
|
(0.08)
|
Net loss per ADS
attributable to ordinary shareholders
of RYB Education, Inc. - Diluted
(Note1)
|
(0.96)
|
(0.08)
|
|
|
|
Adjusted net loss per
ADS attributable to ordinary
shareholders of RYB Education, Inc. - Basic
(Note1)
|
(0.93)
|
(0.04)
|
Adjusted net
loss per ADS attributable to ordinary
shareholders of RYB Education, Inc. - Diluted
(Note1)
|
(0.93)
|
(0.04)
|
|
|
|
Weighted average
shares used in calculating
basic net loss/adjusted net loss per ADS(Note1)
|
27,681,509
|
29,033,754
|
Weighted average
shares used in calculating
diluted net loss/adjusted net loss per ADS(Note1)
|
27,681,509
|
29,033,754
|
Adjusted net
loss per share attributable to ordinary
shareholders of RYB Education, Inc.-
Basic
|
(0.93)
|
(0.04)
|
Adjusted net
loss per share attributable to ordinary s
hareholders of RYB Education, Inc.-
Diluted
|
(0.93)
|
(0.04)
|
|
|
|
Note 1: Each ADS
represents one Class A ordinary share.
|
View original
content:http://www.prnewswire.com/news-releases/ryb-education-inc-reports-first-quarter-2020-financial-results-301067442.html
SOURCE RYB Education, Inc.