TAIYUAN, China, April 16, 2012 /PRNewswire-Asia-FirstCall/ --
China Bilingual Technology & Education Group Inc. (OTCBB: CBLY)
("China Bilingual" or the "Company"), an education company that
owns and operates high-quality, K-12 private boarding schools in
China, today announced its
financial results for the second quarter ended February 29, 2012.
Second Quarter Fiscal Year 2012 Financial Highlights:
(Year-over-Year, Three-Month Results)
- Revenues increased 80.2% year-over-year to $11.0 million, compared to $6.1 million for the three months ended
February 28, 2011. The increase was
primarily attributable to the acquisition of the Shanxi South
School (formerly Shanxi Rising School), which increased the
Company's total enrollment 50.9% from approximately 9,200 students
to 13,881 students for the current school year, as well as a slight
tuition increase.
- Earnings before Interest, Taxes, Depreciation and Amortization
("EBITDA") increased 119.0% year-over-year to $5.6 million, compared to $2.5 million for the three months ended
February 28, 2011. The additional
enrollment allowed the schools to better absorb fixed overhead
costs, and the second fiscal quarter had fewer one-time costs
compared to the start of the school year in the first fiscal
quarter ended November 30, 2011.
- Net income increased 11.4% year-over-year to $2.5 million, compared to $2.2 million for the three months ended
February 28, 2011. Interest,
depreciation and amortization, primarily associated with the
acquisition of the third facility, was $3.1
million for the quarter ended February 29, 2012.
- The schools owned by the Company are exempt from paying
corporate income taxes because of its classification in
China's primary education
sector.
- Net property, equipment, and land use rights were $127.6 million at historical book value as of
February 29, 2012.
- Stockholders' equity was $46.3
million as of February 29,
2012.
Six Months Fiscal Year 2012 Financial Highlights:
(Year-over-Year, Six-Month Results)
- Revenues increased 77.1% year-over-year to $21.4 million, compared to $9.3 million for the six months ended
February 28, 2011. The increase was
primarily attributable to the acquisition of the Shanxi South
School.
- EBITDA increased 67.6% year-over-year to $9.3 million, compared to $5.5 million for the six months ended
February 28, 2011.
- Net income decreased 37.1% year-over-year to $3.1 million, compared to $4.9 million for the six months ended
February 28, 2011. Interest,
depreciation and amortization, primarily associated with the
acquisition of the third facility, was $6.3
million for the six months ended February 29, 2012.
"Increasing enrollment at our schools continues to improve
margins as we are able to better absorb our fixed operating costs,"
stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual. "With
our schools currently at approximately 70% capacity, our focus
remains on ramping up our total enrollment to 20,000 students over
time without compromising our academic standards. Driven by
China's growing middle class, the
demand for private education is accelerating, and our reputation
for academic excellence strongly positions us for long-term revenue
and earnings growth."
Conference Call and Webcast
Management will host a conference call to discuss these
financial results Thursday, April 19,
2012 at 9:00 a.m. Eastern time
(6:00 a.m. Pacific).
To participate in the call, please dial (877) 941-2068, or (480)
629-9712 for international calls, approximately 10 minutes prior to
the scheduled start time. Interested parties can also listen via a
live Internet webcast, which can be found at http://ViaVid.net.
A replay of the call will be available for two weeks from
12:00 p.m. Eastern time on
April 19, 2012, until 11:59 p.m. Eastern time on May 3, 2012. The number for the replay is (877)
870-5176, or (858) 384-5517 for international calls; the pin number
for the replay is 4533045. In addition, a recording of the call
will be available at http://www.RedChip.com for one year.
About China Bilingual Technology & Education Group
Inc.
China Bilingual Technology and Education Group Inc. is an
education company that owns and operates high-quality, K-12 private
boarding schools in China. Founded
in 1998, the Company currently operates three schools encompassing
the kindergarten, elementary, middle and high school levels with
approximately 13,881 students and 1,876 faculty and staff.
The Company's schools are located in Shanxi and Sichuan Provinces and provide
students with an innovative and high-quality education with a focus
on fluency and cultural skills in both Chinese and English. The
schools regularly rank among the top schools in their respective
regions for college entrance rates and national college entrance
exam scores. The Company's schools have earned excellent teaching
reputations and are recognized for the success of their students
and strong faculty.
As China experiences rapid
industrialization and economic growth, the government is focused on
education as a means to increase worker productivity and raise the
standard of living. Parents in China's new middle class are sending their
children to receive private school education to give them an
advantage in China's increasingly
competitive workforce. The Company's sector in education is not
subject to corporate income tax, and the Company anticipates its
growth will come from both organic growth through increased
enrollment and expansion of its business model and teaching methods
into new schools to be acquired by the Company.
Forward-Looking Statements
Certain statements contained herein constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations, estimates and
projections about the Company's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that
any such forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Because such statements
involve risks and uncertainties, the actual results and performance
of the Company may differ materially from the results expressed or
implied by such forward-looking statements. These risks and
uncertainties include, among other things, product demand, market
competition, and risks inherent in our operations. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Unless otherwise required by law,
the Company also disclaims any obligation to update its view of any
such risks or uncertainties or to announce publicly the result of
any revisions to the forward-looking statements made here. For
additional information, readers should carefully review reports or
documents the Company files periodically with the Securities and
Exchange Commission.
|
China Bilingual
Technology & Education Group Inc. and
Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
|
February 29,
2012
|
|
August 31,
2011
|
|
|
ASSETS
|
(unaudited)
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,493,478
|
|
|
$
|
15,090,521
|
|
|
Inventory
|
|
|
58,439
|
|
|
|
3,489
|
|
|
Prepayment and other
current assets
|
|
|
4,989,990
|
|
|
|
9,606,682
|
|
|
Total Current
Assets
|
|
|
11,541,907
|
|
|
|
24,700,692
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
81,804,563
|
|
|
|
81,958,342
|
|
|
Land use rights,
net
|
|
|
45,815,541
|
|
|
|
45,783,579
|
|
|
Deposit paid for
long-term assets
|
|
|
-
|
|
|
|
18,778
|
|
|
|
|
|
|
|
|
|
|
|
Total Long-Term
Assets
|
|
|
127,620,104
|
|
|
|
127,760,699
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
139,162,011
|
|
|
$
|
152,461,391
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
166,800
|
|
|
$
|
48,824
|
|
|
Short-term
payable-acquisition
|
|
|
18,409,929
|
|
|
|
21,177,319
|
|
|
Due to related
parties
|
|
|
8,089,694
|
|
|
|
7,842,522
|
|
|
Other
payables
|
|
|
353,191
|
|
|
|
333,202
|
|
|
Refundable
deposits
|
|
|
880,276
|
|
|
|
795,848
|
|
|
Prepaid school
fees
|
|
|
22,313,926
|
|
|
|
39,498,972
|
|
|
Home purchase down
payment
|
|
|
912,268
|
|
|
|
878,668
|
|
|
Short-term bank
loan
|
|
|
15,872,260
|
|
|
|
15,685,044
|
|
|
Accrued expenses and
other current liabilities
|
|
|
1,361,089
|
|
|
|
908,268
|
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
68,359,433
|
|
|
|
87,168,667
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
payable-acquisition
|
|
|
24,531,213
|
|
|
|
22,656,106
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
$
|
92,890,646
|
|
|
$
|
109,824,773
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
|
Common Stock, $0.001par
value; 75,000,000 shares authorized; 30,014,528 issued and
outstanding as of February 29, 2012 and August 31, 2011
|
|
|
30,015
|
|
|
|
30,015
|
|
|
Additional paid-in
capital
|
|
|
67,421
|
|
|
|
67,421
|
|
|
Retained
earnings
|
|
|
43,208,346
|
|
|
|
40,100,740
|
|
|
Accumulated other
comprehensive income
|
|
|
2,965,583
|
|
|
|
2,438,442
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
46,271,365
|
|
|
|
42,636,618
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
139,162,011
|
|
|
$
|
152,461,391
|
|
|
China Bilingual
Technology & Education Group Inc. and
Subsidiaries
|
|
Condensed
Consolidated Statements of Operations and Other Comprehensive
Income
|
|
(Unaudited)
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
|
February 29,
2012
|
|
|
|
February 28,
2011
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
10,953,811
|
|
|
$
|
6,079,354
|
|
|
COST OF
REVENUES
|
|
|
5,793,920
|
|
|
|
3,516,802
|
|
|
GROSS
PROFIT
|
|
|
5,159,891
|
|
|
|
2,562,552
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses
|
|
|
625,971
|
|
|
|
366,712
|
|
|
TOTAL OPERATING
EXPENSES
|
|
|
625,971
|
|
|
|
366,712
|
|
|
INCOME FROM
OPERATIONS
|
|
|
4,533,920
|
|
|
|
2,195,840
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
|
|
2,283
|
|
|
|
7,754
|
|
|
Interest
Expense
|
|
|
(2,081,035)
|
|
|
|
-
|
|
|
NET INCOME BEFORE
INCOME TAXES
|
|
$
|
2,455,168
|
|
|
$
|
2,203,594
|
|
|
INCOME TAX
EXPENSE
|
|
|
-
|
|
|
|
-
|
|
|
NET
INCOME
|
|
$
|
2,455,168
|
|
|
$
|
2,203,594
|
|
|
Foreign currency
translation, net of tax
|
|
|
507,532
|
|
|
|
440,123
|
|
|
COMPREHENSIVE
INCOME
|
|
$
|
2,962,700
|
|
|
$
|
2,643,717
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common
Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
30,076,288
|
|
|
|
30,003,280
|
|
|
Diluted
|
|
|
30,076,288
|
|
|
|
30,003,280
|
|
|
China Bilingual
Technology & Education Group Inc. and
Subsidiaries
|
|
Condensed
Consolidated Statements of Operations and Other Comprehensive
Income
|
|
(Unaudited)
|
|
|
|
|
For the Six
Months Ended
|
|
|
|
|
February 29,
2012
|
|
|
|
February 28,
2011
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
21,379,797
|
|
|
$
|
12,070,703
|
|
|
COST OF
REVENUES
|
|
|
13,026,950
|
|
|
|
6,450,399
|
|
|
GROSS
PROFIT
|
|
|
8,352,847
|
|
|
|
5,620,304
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
General and
Administrative Expenses
|
|
|
1,130,493
|
|
|
|
700,628
|
|
|
TOTAL OPERATING
EXPENSES
|
|
|
1,130,493
|
|
|
|
700,628
|
|
|
INCOME FROM
OPERATIONS
|
|
|
7,222,354
|
|
|
|
4,919,676
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
|
|
30,899
|
|
|
|
19,394
|
|
|
Interest
Expense
|
|
|
(4,145,647)
|
|
|
|
-
|
|
|
NET INCOME BEFORE
INCOME TAXES
|
|
$
|
3,107,606
|
|
|
$
|
4,939,070
|
|
|
INCOME TAX
EXPENSE
|
|
|
-
|
|
|
|
-
|
|
|
NET
INCOME
|
|
$
|
3,107,606
|
|
|
$
|
4,939,070
|
|
|
Foreign currency
translation, net of tax
|
|
|
527,141
|
|
|
|
1,056,621
|
|
|
COMPREHENSIVE
INCOME
|
|
$
|
3,634,747
|
|
|
$
|
5,995,691
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common
Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
Diluted
|
|
$
|
0.10
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
30,072,464
|
|
|
|
30,001,642
|
|
|
Diluted
|
|
|
30,072,464
|
|
|
|
30,001,642
|
|
|
China Bilingual
Technology & Education Group Inc. and
Subsidiaries
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
For The Six Months
Ended
|
|
|
|
February 29,
2012
|
|
|
February 28,
2011
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,107,606
|
|
|
$
|
4,939,070
|
|
|
Adjustments to reconcile
net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,653,333
|
|
|
|
551,276
|
|
|
Amortization
|
|
|
510,545
|
|
|
|
75,207
|
|
|
Accretion of
interest payable – acquisition
|
|
|
3,042,982
|
|
|
|
-
|
|
|
Stock-based
compensation
|
|
|
60,200
|
|
|
|
40,500
|
|
|
(Increases)
Decreases in Assets:
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
(54,485)
|
|
|
|
(13,156)
|
|
|
Prepayment
and other current assets
|
|
|
4,713,772
|
|
|
|
1,780,621
|
|
|
Increases
(Decreases) in Liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
116,489
|
|
|
|
62,163
|
|
|
Other
payables
|
|
|
15,889
|
|
|
|
(856,581)
|
|
|
Refundable
deposits
|
|
|
74,351
|
|
|
|
(718,380)
|
|
|
Prepaid
school fees
|
|
|
(17,520,517)
|
|
|
|
(8,328,412)
|
|
|
Home
purchase down payment
|
|
|
22,935
|
|
|
|
111,543
|
|
|
Accrued
expenses and other current liabilities
|
|
|
379,741
|
|
|
|
(111,615)
|
|
|
Net Cash Provided By
(Used In) Operating Activities
|
|
|
(3,877,159)
|
|
|
|
(2,467,764)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
Deposits -
long term assets
|
|
|
-
|
|
|
|
(7,065,497)
|
|
|
Fixed
asset additions
|
|
|
(530,023)
|
|
|
|
(291,150)
|
|
|
Receipts -
related parties receivables
|
|
|
-
|
|
|
|
3,517,854
|
|
|
Net Cash Provided By
(Used In) Investing Activities
|
|
|
(530,023)
|
|
|
|
(3,838,793)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
Proceeds from
related party loan
|
|
|
153,593
|
|
|
|
-
|
|
|
Payments made on
acquisition - payable
|
|
|
(4,482,076)
|
|
|
|
-
|
|
|
Net Cash Provided By
(Used In) Financing Activities
|
|
|
(4,328,483)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
|
|
138,622
|
|
|
|
292,123
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
(8,597,043)
|
|
|
|
(6,014,434)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, Beginning of Period
|
|
|
15,090,521
|
|
|
|
10,888,988
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, End of Period
|
|
$
|
6,493,478
|
|
|
$
|
4,874,554
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
|
$
|
773,091
|
|
|
$
|
-
|
|
|
Cash
paid for taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
Contact:
At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1 727-641-1357
Email: mtoups@chinabilingualedu.com
Web: http://www.ChinaBilingualEdu.com
Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
Email: info@redchip.com
Web: http://www.RedChip.com
Scott Powell, Sr. VP
MZ Group
Tel: +1-212-301-7130
Email: scott.powell@mzgroup.us
Web: http://www.mz-ir.com
SOURCE China Bilingual Technology & Education Group Inc.
