Second Quarter Net Revenues up by 24.8%
Year-Over-Year
Second Quarter Total Student Enrollment
up by 14.2% Year-Over-Year
Second Quarter Student
Enrollment in Kid Education Programs up by 146.8%
Year-Over-Year
Revise Full Year 2017 Net Revenues Guidance to RMB1,920-2,000 million
Announce Share
Repurchase Plan of up to US$30
million
BEIJING, Aug. 21, 2017 /PRNewswire/ -- Tarena
International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a
leading provider of professional education services in China, today announced its unaudited financial
results for the second quarter ended June
30, 2017.
Second Quarter 2017 Highlights
- Net revenues increased by 24.8% year-over-year to RMB455.8 million from RMB365.1 million in the same period in 2016.
- Gross profit increased by 21.9% year-over-year to RMB312.3 million from RMB256.3 million in the same period in 2016.
- Operating income was RMB36.0
million, compared to RMB39.7
million in the same period in 2016.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB55.2
million, compared to RMB54.5
million in the same period in 2016.
- Net income was RMB37.9 million,
compared to RMB43.3 million in the
same period in 2016.
- Non-GAAP net income, which excluded share-based compensation
expenses and gain on foreign currency forward contract, was
RMB57.1 million, compared to
RMB51.3 million in the same period in
2016.
- Basic and diluted net income per American Depositary Share
("ADS") were RMB0.66 and RMB0.63, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses and gain on foreign currency forward
contract, were RMB1.0 and
RMB0.95, respectively. Each ADS
represents one Class A ordinary share.
- Net cash inflow from operating activities for the second
quarter of 2017 was approximately RMB36.7
million.
- Cash and time deposits totaled RMB1,337.2 million as of June 30, 2017, compared to RMB1,286.1 million as of December 31, 2016.
- Deferred revenue totaled RMB392.3
million as of June 30, 2017,
compared to RMB279.5 million as of
June 30, 2016, representing a
year-over-year increase of approximately 40.3%.
- Total course enrollments[1], defined as the cumulative number
of courses enrolled in by our students, in the second quarter of
2017 increased by 18.1% year-over-year to 27,991.
- Total student enrollments[2], defined as the total number of
new students recruited and registered, in the second quarter of
2017 increased by 14.2% year-over-year to 30,548.
- Total seat capacity[3], defined as the total number of seats
available in our learning centers, increased by 19.8% to 57,043 as
of June 30, 2017, from 47,632 as of
June 30, 2016.
- Total number of learning centers[4] increased to 171 as of
June 30, 2017, from 138 as of
June 30, 2016.
- Total student enrollments in kid education programs, defined as
the total number of students recruited and registered in our kid
education programs, in the second quarter of 2017 increased by
146.8% year-over-year to 1,725.
Mr. Shaoyun Han, Chairman and
Chief Executive Officer of Tarena, said, "The second quarter of
2017 was another quarter of solid progress as we executed on our
initiatives and delivered net revenues that reached almost the high
end of our guidance. Student enrollment in professional education
showed 14.2% year-over-year growth, which is affected by the
enrollment season changes for students from university channel.
With the popularity of our new cooperation mode with universities
and colleges, e.g joint major programs, a large number of students
from university channel enroll at the beginning of each semester
rather than at summer vacation as before. Through such a new
cooperation mode, Tarena builds up longer term partnership with
universities and colleges and expects to achieve more sustainable
student enrollment growth in the long run. Meanwhile, student
enrollment in kid education programs achieved better-than-expected
momentum this quarter, up significantly by 146.8% to 1,725 students
compared with the same period last year. It is also encouraging to
see the success of launching the "teaching at appropriate level"
strategy to provide diversified advanced level courses which
remains one of our growth driver and a testament to monetization of
our teaching platform."
"As mentioned previously, 2017 is an important year of
investment. During the second quarter, we continued to focus firmly
on advancing vocational training services and expanding kid
education programs to capture the enormous growth opportunities in
China. We strategically
accelerated our capacity expansion in cities with promising growth
potential. In the second quarter of 2017, we added a net of 11
learning centers in existing cities and entered new cities of
Jinhua and Baotou to extend our geographic footprint. Moreover, our
three kid education programs under the brand Tongcheng Tongmei have
achieved meaningful progress in building up solid infrastructure
since its launching at the end of 2015. We are very proud that
leveraging the dual-teacher model and existing online and offline
teaching and marketing facilities, Tongcheng Tongmei has also
developed separate flagship centers nationwide and our three kid
programs have been rolled out rapidly into 18 cities, as evidenced
by strong student enrollment year-over-year growth of 146.8% in the
second quarter of 2017." Mr. Han continued.
Mr. Yuduo Yang, Tarena's Chief Financial Officer added, "Though
development of education products and services for all business
lines, especially k-12 business, may affect the overall margin
level in short term, we managed to put a balance between expansion
and operational efficiency. Non-GAAP net income in the quarter
increased by 11.4% to RMB57.1million,
compared with RMB51.3 million in the
same period last year. In order to maintain our competitive
advantage on the educational content quality, we put more resources
into development of our courses. By upgrading our internal
information system as well as diversifying marketing and sales
channels, however, we expect to bring in new student customers in a
more efficient way. Meanwhile, we are in the process of launching
"class master program" to improve our teaching assistant team
productivity. Looking into the second half of 2017, these
encouraging initiatives are gaining traction and are expected to
drive even greater future growth. We are confident that with a more
diversified business model, Tarena is well-prepared in a broader
market to deliver more sustainable revenue and profitability growth
for our shareholders in the long run."
Second Quarter 2017 Results
Net Revenues
Net revenues increased by 24.8% to RMB455.8 million in the second quarter of 2017,
from RMB365.1 million in the same
period in 2016. The increase was primarily due to increased course
enrollments and to a lesser extent, an increase in the standard
tuition fees.
Total course enrollments[5] in the second quarter of 2017
increased by 18.1% to 27,991 from 23,694 in the same period in
2016, which was mainly driven by the expansion in seat capacity and
the popularity of our course offerings. The number of our course
offerings increased to 18 from 17 in the second quarter
year-over-year, while the total seat capacity in our learning
centers increased by 19.8% to 57,043 as of June 30,2017 from 47,632 as of June 30, 2016 to cater to the increased demand
for our courses.
Beginning in the second quarter of 2017, we raised the standard
tuition fees on most of our courses by RMB1,000 to RMB
2000 per course. We charge students enrolled through the
retail channel our standard tuition fee and provide students
enrolled through the university channel a discount of approximately
RMB4,000 per person per course. Our
student enrollment mix from retail and university channel was
86%/14% and 85%/15% in the second quarter of 2017 and 2016,
respectively.
Cost of Revenues
Cost of revenues increased by 31.8% to RMB143.5 million in the second quarter of 2017,
from RMB108.9 million in the same
period in 2016. The increase was mainly due to an increase in
personnel cost and welfare expenses resulting from growing number
of teaching and advisory staff at our learning centers, rental cost
resulting from higher seat capacity, as well as depreciation
expenses for the growing number of learning centers.
Gross Profit and Gross Margin
Gross profit increased by 21.9% to RMB312.3 million in the second quarter of 2017,
from RMB256.3 million in the same
period in 2016. Gross margin was 68.5% in the second quarter of
2017, compared with 70.2% in the same period in 2016.The decrease
in gross margin was mainly due to expansion of our center network
and course offerings. Our overall center utilization rate[6] in the
second quarter of 2017 remained stable at 73.6%, compared with
73.1% in the same period in 2016.
Operating Expenses
Total operating expenses increased by 27.6% to RMB276.3 million in the second quarter of 2017,
from RMB216.5 million in the same
period in 2016. Total non-GAAP operating expenses, which excluded
share-based compensation expenses, increased by 27.0% to
RMB257.4 million in the second
quarter of 2017, from RMB202.6
million in the same period in 2016. Total share-based
compensation expenses allocated to the related operating expenses
increased by 36.0% to RMB18.9 million
in the second quarter of 2017, from RMB13.9
million in the same period in 2016.
Selling and marketing expenses increased by 28.5% to
RMB162.4 million in the second
quarter of 2017, from RMB126.4
million in the same period in 2016. The increase was due to
an increase in personnel cost and welfare expenses related to the
growth in our selling and marketing headcount, and expanded
marketing efforts as we expanded our course offerings and network
of learning centers.
General and administrative expenses increased by 18.5% to
RMB93.2 million in the second quarter
of 2017, from RMB78.7 million in the
same period in 2016. The increase was mainly due to an increase in
personnel cost and welfare expenses for our increased number of
general and administrative personnel to support our growing
operations. Non-GAAP general and administrative expenses, which
excluded share-based compensation expenses, increased by 17.6% to
RMB77.6 million, from RMB66.0 million in the same period in 2016.
Research and development expenses increased by 81.0% to
RMB20.7 million in the Second quarter
of 2017, from RMB11.4 million in the
same period in 2016. The increase was mainly due to an increase in
personnel cost and welfare expenses of our instructors and teaching
assistants allocated to their system and content development
activities for our courses, as well as growing number of research
and development staff as we expanded our course offerings and
operations.
Operating Income
Operating income was RMB36.0
million for the second quarter of 2017, compared to
RMB39.7 million in the same period in
2016. Operating margin was 7.9% in the second quarter of 2017,
compared to 10.9% in the same period in 2016. Non-GAAP operating
income, which excluded share-based compensation expenses, was
RMB55.2 million, compared to
RMB54.5 million in the same period in
2016. Non-GAAP operating margin was 12.1% in the second quarter of
2017, compared to 14.9% in the same period in 2016.
Interest Income
Interest income was RMB4.9 million
in the second quarter of 2017, compared to RMB5.2 million in the same period in 2016.
Interest income in both periods consisted of interest earned on our
cash and time deposits in commercial banks and interest income
recognized in relation to our installment payment plan for
students. The decrease in interest income was primarily due to
lower bank deposits and interest rate, as well as lower tuition
interest income in relation to our installment payment plan for
students.
Foreign Exchange Loss
Foreign exchange loss was RMB1.8
million in the second quarter of 2017, compared to
RMB6.5 million foreign exchange loss
in the same period in 2016. The loss was attributable to the
appreciation of China's RMB against U.S. Dollar as the Company had
converted its offshore bank deposits previously in RMB into US
dollars under a foreign currency forward contract. The contract had
been settled in May 2016.
Income Tax Expense
The Company recorded an income tax expense of RMB5.8 million in the second quarter of 2017,
compared to RMB4.0 million in the
same period in 2016. The change was mainly due to an increase in
the effective income tax rate from utilization of deferred income
tax assets of certain subsidiaries.
Net Income
As a result of the foregoing, net income was RMB37.9 million in the second quarter of 2017,
compared to RMB43.3 million in the
same period in 2016. Non-GAAP net income, which excluded
share-based compensation expenses and gain on foreign currency
forward contract, was RMB57.1
million, compared to a non-GAAP net income of RMB51.3 million in the same period in 2016.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS in the second quarter of
2017 were RMB0.66 and RMB0.63, respectively. Non-GAAP basic and
non-GAAP diluted net income per ADS, which excluded share-based
compensation expenses, were RMB1.0
and RMB0.95, respectively.
Cash Flow
Net cash inflow from operating activities for the second quarter
of 2017 was approximately RMB36.7
million. Capital expenditures for the quarter were
RMB46.1 million.
Shares Issued and Outstanding
As of June 30, 2017, the Company
had 50,281,932 Class A and 7,206,059 Class B ordinary shares
outstanding. Each ADS represents one Class A ordinary share.
Business Outlook
Based on the Company's current estimates, total net revenues for
the third quarter of 2017 are expected to be between RMB555.0 million and RMB572.0 million,
representing an increase of 15.4% to 18.9% on a year-over-year
basis.
The Company also revised its total net revenues guidance for the
full year of 2017 to be between RMB1,920.0
million and RMB2,000.0 million, representing an increase of
21.5% to 26.6% on a year-over-year basis. The revenue guidance
revision is mainly attributable to the fact that a higher
percentage of students were recruited through our new program
cooperation with universities and colleges. Considering these
students will finish courses in three to four years, the related
revenue could not be fully recognized in this year.
This guidance is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions, which are subject to change.
Share Repurchase Plan
The board of directors has authorized a share repurchase plan
under which the Company may repurchase up to US$30 million of its shares over the next 12
months. The share repurchases may be made from time to time on the
open market at prevailing market prices, in privately negotiated
transactions, in block trades and/or through other legally
permissible means, depending on market conditions and in accordance
with applicable rules and regulations. Tarena's board of directors
will review the share repurchase plan periodically, and may
authorize adjustment of its terms and size. The Company expects to
fund repurchases made under this plan from its existing cash
balance.
Conference Call
The Company will host a conference call and live webcast to
discuss its financial results for the second quarter of 2017 at
9:00 p.m. U.S. Eastern Time on
August 21, 2017 (9:00 a.m. Beijing time on August
22, 2017).
The dial-in details for the live conference call are as
follows:
United States/Canada: 866 548 4713
Hong Kong: 800 961 105
China Mainland: 400 120 9221
Singapore: 800 186 5085
Taiwan: +886 (0)2 8793 3223
United Kingdom: 800 279 7204
International: +1 323 794
2093
Conference ID: 5787062
A replay of the call will be available approximately 2 hours
after the conclusion of the conference call through August 29, 2017. The dial-in details for the
replay are:
United States: 888 203 1112
Hong Kong: 800 901 108
China Mainland: 400 120 1651
Singapore: +65 6517 0784
Taiwan: 00 801 126 971
United Kingdom: 0 808 101 1153
Conference ID:
5787062
Additionally, a live and archived webcast of this call will be
available on the Investor Relations section of Tarena's website at
http://ir.tedu.cn.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and 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. Tarena may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including any business outlook and
statements about Tarena's beliefs and expectations, are
forward-looking statements. Many factors, risks and uncertainties
could cause actual results to differ materially from those in the
forward-looking statements. Such factors and risks include, but not
limited to the following: Tarena's goals and strategies; its future
business development, financial condition and results of
operations; its ability to continue to attract students to enroll
in its courses; its ability to continue to recruit, train and
retain qualified instructors and teaching assistants; its ability
to continually tailor its curriculum to market demand and enhance
its courses to adequately and promptly respond to developments in
the professional job market; its ability to maintain or enhance its
brand recognition, its ability to maintain high job placement rate
for its students, and its ability to maintain cooperative
relationships with financing service providers for student loans.
Further information regarding these and other risks, uncertainties
or factors is included in Tarena's filings with the U.S. Securities
and Exchange Commission. All information provided in this press
release is current as of the date of the press release, and Tarena
does not undertake any obligation to update such information,
except as required under applicable law.
About Tarena International, Inc.
Tarena International, Inc. (NASDAQ: TEDU) is a leading provider
of professional education services in China. Through its innovative education
platform combining live distance instruction, classroom-based
tutoring and online learning modules, Tarena offers professional
education courses in twelve IT subjects and three non-IT subjects.
Tarena also offers three kid education programs. Its professional
education courses provide students with practical skills to prepare
them for jobs in industries with significant growth potential and
strong hiring demand. Since its inception in 2002, Tarena has
trained over 438,000 students, cooperated with more than 690
universities and colleges and placed students with approximately
113,000 corporate employers in a variety of industries. For further
information, please visit http://ir.tedu.cn.
About Non-GAAP Financial Measures
Beginning in the second quarter of 2016, the Company revised its
non-GAAP financial measures to exclude gain or loss on derivative
instruments, goodwill impairment, impairment of intangibles via
acquisitions of businesses and the related tax impact, in addition
to its historical practice of excluding share-based compensation
expenses for non-GAAP results.
To supplement Tarena's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Tarena's management uses non-GAAP measures of
cost of revenues, operating expenses, operating income (loss), net
income (loss), and basic and diluted net income (loss) per ADS,
which are adjusted from results based on GAAP to exclude the
share-based compensation expenses, gain or loss on derivative
instruments, goodwill impairment, impairment of intangibles via
acquisitions of businesses and the related tax impact. These
non-GAAP financial measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for, or superior to, GAAP results. In
addition, calculation of the non-GAAP financial measures may be
different from the calculation used by other companies, and
therefore comparability may be limited.
Tarena's management believes that excluding the share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact provides meaningful
supplemental information regarding our performance and liquidity by
excluding certain items identified as non-recurring and infrequent
in nature, and non-cash charges. The amount of share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact are not built into the
Company's annual budgets and quarterly forecasts, which generally
will be the basis for information Tarena provides to analysts and
investors as guidance for future operating performance.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Tarena's current financial
performance and prospects for the future. A limitation of using
non-GAAP cost of revenues, operating expenses, operating income
(loss) and net income (loss), excluding the share-based
compensation expenses, gain or loss on derivative instruments,
goodwill impairment, impairment of intangibles via acquisitions of
businesses and the related tax impact is that the share-based
compensation charge has been and will continue to be a recurring
expense in the Company's business for the foreseeable future, and
gain or loss on derivative instruments, goodwill impairment,
impairment of intangibles via acquisitions of businesses and the
related tax impact may recur in the future. In order to mitigate
these limitations the Company has provided specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
GAAP financial measures that are most directly comparable to the
non-GAAP financial measures the Company has presented.
For further information, please contact:
Helen Song
Investor Relations
Tarena International Inc.
Tel: +8610 56219451
Email: ir@tedu.cn
[1] Excluding course enrollments in kid education programs
[2] Excluding student enrollments in kid education programs
[3] Excluding seat capacity that is for kid education programs
only
[4] Excluding learning centers that are for kid education programs
only
[5] Excluding course enrollments in kid education programs
[6] Excluding kid education program
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands,
except share data and per share data)
|
|
|
As
of
|
|
June
30
|
|
December 31
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
917,208
|
|
810,672
|
Time
deposits
|
407,622
|
|
416,724
|
Accounts receivable,
net of allowance for doubtful accounts
|
90,771
|
|
97,374
|
Amounts due from a
related party
|
42
|
|
—
|
Prepaid expenses and
other current assets
|
152,519
|
|
126,088
|
Total current
assets
|
1,568,162
|
|
1,450,858
|
Time
deposits
|
12,389
|
|
58,667
|
Accounts receivable,
net of allowance for doubtful accounts
|
782
|
|
1,176
|
Property and
equipment, net
|
472,234
|
|
437,337
|
Goodwill
|
3,365
|
|
3,365
|
Long-term
investments
|
79,492
|
|
41,760
|
Other non-current
assets
|
104,033
|
|
91,849
|
Total
assets
|
2,240,457
|
|
2,085,012
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
10,733
|
|
4,502
|
Amounts due to a
related party
|
—
|
|
79
|
Income taxes
payable
|
90,689
|
|
91,240
|
Deferred
revenue
|
392,277
|
|
266,061
|
Accrued expenses and
other current liabilities
|
143,587
|
|
117,867
|
Total current
liabilities
|
637,286
|
|
479,749
|
Other non-current
liabilities
|
5,659
|
|
7,043
|
Total
liabilities
|
642,945
|
|
486,792
|
|
|
|
|
Commitments and
contingencies
|
—
|
|
—
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A ordinary
shares
|
324
|
|
302
|
Class B ordinary
shares
|
74
|
|
86
|
Treasury
stock(a)
|
(93,761)
|
|
(93,761)
|
Additional paid-in
capital
|
1,040,980
|
|
995,216
|
Accumulated other
comprehensive income
|
61,558
|
|
58,204
|
Retained
earnings
|
588,337
|
|
638,173
|
Total shareholders'
equity
|
1,597,512
|
|
1,598,220
|
Total liabilities
and shareholders' equity
|
2,240,457
|
|
2,085,012
|
|
|
|
|
Note:
(a) On August 20, 2015,
the Board of Directors approved a share repurchase plan under which
the Company may repurchase up to US$20 million (RMB 133,556,000) of
its shares over the next 12 months. According to the plan, the
share repurchases may be made from time to time on the open market
at prevailing market prices, in privately negotiated transactions,
in block trades and/or through other legally permissible means,
depending on market conditions and in accordance with applicable
rules and regulations. As of June 30, 2017, the Company repurchased
1,574,980 Class A ordinary shares from the open market with the
consideration of US$14.4 million (RMB 93,761,156).
|
TARENA
INTERNATIONAL, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
(in thousands,
except share data and per share data)
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Six
Months Ended
|
June 30
|
June 30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net
revenues
|
455,833
|
|
365,139
|
|
788,581
|
|
634,607
|
Cost of
revenues(a)
|
(143,530)
|
|
(108,879)
|
|
(271,344)
|
|
(204,819)
|
Gross
profit
|
312,303
|
|
256,260
|
|
517,237
|
|
429,788
|
Selling and marketing
expenses(a)
|
(162,396)
|
|
(126,411)
|
|
(303,463)
|
|
(239,314)
|
General and
administrative expenses(a)
|
(93,240)
|
|
(78,676)
|
|
(172,998)
|
|
(143,150)
|
Research and
development expenses(a)
|
(20,707)
|
|
(11,441)
|
|
(38,935)
|
|
(27,257)
|
Operating
income
|
35,960
|
|
39,732
|
|
1,841
|
|
20,067
|
Interest
income
|
4,907
|
|
5,166
|
|
8,381
|
|
14,361
|
Other
income
|
4,614
|
|
2,202
|
|
11,685
|
|
5,178
|
Gain(Loss) from fair
value change of foreign currency forward
|
-
|
|
6,762
|
|
-
|
|
(12,898)
|
Foreign exchange
loss
|
(1,785)
|
|
(6,543)
|
|
(2,332)
|
|
(3,744)
|
Income before
income taxes
|
43,696
|
|
47,319
|
|
19,575
|
|
22,964
|
Income tax
expense
|
(5,812)
|
|
(3,997)
|
|
(6,324)
|
|
(4,141)
|
Net
income
|
37,884
|
|
43,322
|
|
13,251
|
|
18,823
|
Net income
attributable to Class A and Class B ordinary
shareholders
|
37,884
|
|
43,322
|
|
13,251
|
|
18,823
|
|
|
|
|
|
|
|
|
Net income per
Class A and Class B ordinary share:
|
|
|
|
|
|
|
|
Basic
|
0.66
|
|
0.78
|
|
0.23
|
|
0.34
|
Diluted
|
0.63
|
|
0.74
|
|
0.22
|
|
0.32
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
Basic
|
57,355,721
|
|
55,741,748
|
|
56,843,932
|
|
55,226,788
|
Diluted
|
59,849,094
|
|
58,622,457
|
|
59,705,190
|
|
58,438,776
|
|
|
|
|
|
|
|
|
Net
income
|
37,884
|
|
43,322
|
|
13,251
|
|
18,823
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
(4,557)
|
|
11,030
|
|
(6,396)
|
|
9,433
|
Unrealized gain on
available for sale securities, net of RMB640 (RMB1,519 for the six
months in 2017) income taxes
|
3,629
|
|
-
|
|
18,359
|
|
-
|
Less:
reclassification adjustment for gain on available for sale
securities realized in net income, net of RMB640 (RMB1,519 for the
six months in 2017) income taxes
|
(3,629)
|
|
-
|
|
(8,609)
|
|
-
|
Comprehensive
income
|
33,327
|
|
54,352
|
|
16,605
|
|
28,256
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
June 30
|
|
For the Six months Ended
June 30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Cost of
revenues
|
289
|
|
799
|
|
466
|
|
1,264
|
Selling and marketing
expenses
|
1,118
|
|
553
|
|
1,376
|
|
2,067
|
General and
administrative expenses
|
15,634
|
|
12,677
|
|
24,545
|
|
24,806
|
Research and
development expenses
|
2,192
|
|
702
|
|
3,956
|
|
2,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TARENAINTERNATIONAL, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
|
(in thousands,
except share data and per share data)
|
|
|
For the Three
Months Ended
June 30
|
|
For the Six Months
Ended
June 30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
143,530
|
|
108,879
|
|
271,344
|
|
204,819
|
Share-based
compensation expense in cost of revenues
|
289
|
|
799
|
|
466
|
|
1,264
|
Non-GAAP Cost of
revenues
|
143,241
|
|
108,080
|
|
270,878
|
|
203,555
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
162,396
|
|
126,411
|
|
303,463
|
|
239,314
|
Share-based
compensation expense in selling and marketing expenses
|
1,118
|
|
553
|
|
1,376
|
|
2,067
|
Non-GAAP Selling
and marketing expenses
|
161,278
|
|
125,858
|
|
302,087
|
|
237,247
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
93,240
|
|
78,676
|
|
172,998
|
|
143,150
|
Share-based
compensation expense in general and administrative
expenses
|
15,634
|
|
12,677
|
|
24,545
|
|
24,806
|
Non-GAAP General
and administrative expenses
|
77,606
|
|
65,999
|
|
148,453
|
|
118,344
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
20,707
|
|
11,441
|
|
38,935
|
|
27,257
|
Share-based
compensation expense in research and development
expenses
|
2,192
|
|
702
|
|
3,956
|
|
2,370
|
Non-GAAP Research
and development expenses
|
18,515
|
|
10,739
|
|
34,979
|
|
24,887
|
|
|
|
|
|
|
|
|
Operating
income
|
35,960
|
|
39,732
|
|
1,841
|
|
20,067
|
Share-based
compensation expenses
|
19,233
|
|
14,731
|
|
30,343
|
|
30,507
|
Non-GAAP Operating
income
|
55,193
|
|
54,463
|
|
32,184
|
|
50,574
|
|
|
|
|
|
|
|
|
Net
income
|
37,884
|
|
43,322
|
|
13,251
|
|
18,823
|
Share-based
compensation expenses
|
19,233
|
|
14,731
|
|
30,343
|
|
30,507
|
(Gain)loss on foreign
currency forward contract
|
—
|
|
(6,762)
|
|
—
|
|
12,898
|
Non-GAAP Net
income
|
57,117
|
|
51,291
|
|
43,594
|
|
62,228
|
Non-GAAP net
income attributable to Class A and Class B ordinary
shareholders
|
57,117
|
|
51,291
|
|
43,594
|
|
62,228
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
1.00
|
|
0.92
|
|
0.77
|
|
1.13
|
Diluted
|
0.95
|
|
0.87
|
|
0.73
|
|
1.06
|
Weighted average
number of ordinary shares outstanding used in calculating Non-GAAP
net income per Class A and Class B ordinary
share(a)
|
|
|
|
|
|
|
|
Basic
|
57,355,721
|
|
55,741,748
|
|
56,843,932
|
|
55,226,788
|
Diluted
|
59,849,094
|
|
58,622,457
|
|
59,705,190
|
|
58,438,776
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Non-GAAP net
income per share is computed using Non-GAAP net income attributable
to ordinary shareholders and the same number of ordinary shares
used in GAAP basic and diluted net income per share
calculation.
|
|
(b) There was no tax
impact of share-based compensation expenses and gain on foreign
currency forward contract for the second quarter ended June 30,
2017 and 2016. There was no tax impact of share-based compensation
expenses and loss on foreign currency forward contract for the six
months ended June 30, 2017 and 2016.
|
View original
content:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-second-quarter-2017-results-300507217.html
SOURCE Tarena International, Inc.