BEIJING, Nov. 29, 2016 /PRNewswire/ --
- Fourth Quarter 2016 Net Revenue Up 7.5% Year-Over-Year to
$38.2 Million, Exceeding Guidance
-
- Fiscal Year 2016 Net Revenue Up 8.7% Year-Over-Year to
$117.5 Million, Exceeding Guidance
-
- Completes Share Repurchase Program of $40.0 million -
- Declares Annual Special Cash Dividend of $0.1125 per Ordinary Share or $0.45 per ADS -
China Distance Education Holdings Limited (NYSE: DL) ("CDEL", or
the "Company"), a leading provider of online education in
China focusing on professional
education, today announced unaudited financial results for the
fourth quarter and fiscal year 2016 ended September 30, 2016.
Fourth Quarter Fiscal 2016 Financial and Operational
Highlights
- Total course enrollments reached 1,010,000, an increase of
12.0% from the fourth quarter of fiscal 2015.
- Cash receipts from online course registration were $18.2 million, a 7.4% increase from the fourth
quarter of fiscal 2015. Without the impact of the depreciation of
the Renminbi against the U.S. Dollar, cash receipts from online
course registration increased by 13.5% year-over-year in the fourth
quarter of fiscal 2016.
- Net revenue increased by 7.5% to $38.2
million from $35.6 million in
the prior year period, exceeding the Company's guidance range of
$35.6 million to $37.4 million.
Xiamen NetinNet, which was acquired by the Company in May 2016, contributed net revenue of $1.9 million in the fourth quarter of fiscal
2016.
- Gross profit increased by 6.5% to $25.2
million from $23.6 million in
the prior year period.
- Non-GAAP[1] gross profit
increased by 6.5% to $25.2 million
from $23.6 million in the prior year
period.
- Gross margin was 65.8%, compared with 66.4% in the prior year
period. Non-GAAP[1] gross margin was 65.9%, compared with 66.5% in
the prior year period.
- Operating income decreased by 3.3% to $14.6 million from $15.1
million in the prior year period.
- Non-GAAP[1] operating income
decreased by 3.2% to $15.1 million
from $15.6 million in the prior year
period.
- Net income decreased by 9.5% to $12.2
million from $13.5 million in
the prior year period.
- Non-GAAP[1] net income
decreased by 9.2% to $12.7 million
from $14.0 million in the prior year
period.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.370 and $0.369, respectively, compared with basic and
diluted net income per ADS of $0.377
and $0.376, respectively, for the
fourth quarter of fiscal 2015. Each ADS represents four ordinary
shares.
- Basic and diluted non-GAAP[1]
net income per ADS were $0.387 and
$0.385, respectively, compared with
basic and diluted non-GAAP[1] net
income per ADS of $0.393 and
$0.390, respectively, for the fourth
quarter of fiscal 2015.
- Operating cash inflow increased by 18.5% to $5.8 million from $4.9
million in the fourth quarter of fiscal 2015.
- Completion of Share Repurchase Program of $40.0 million in August
2016.
Fiscal Year 2016 Financial and Operational Highlights
- Total course enrollments reached 3.7 million, a record high and
an increase of 12.5% from fiscal year 2015.
- Cash receipts from online course registration were $97.4 million, a 3.1% increase from fiscal year
2015. Without the impact of the depreciation of the Renminbi
against the U.S. Dollar, cash receipts from online course
registration increased by 8.1% year-over-year in fiscal year
2016.
- Net revenue increased by 8.7% to $117.5
million from $108.2 million in
fiscal year 2015, exceeding the Company's guidance range of
$114.8 million to $116.6 million.
Xiamen NetinNet, which was acquired by the Company in May 2016, contributed net revenue of $3.0 million in fiscal year 2016.
- Gross profit increased by 8.4% to $69.2
million from $63.8 million in
fiscal year 2015.
- Non-GAAP[1] gross profit
increased by 8.4% to $69.4 million
from $64.0 million in fiscal year
2015.
- Gross margin was 58.9%, compared with 59.0% in fiscal year
2015. Non-GAAP[1] gross margin was
59.0%, compared with 59.1% in fiscal year 2015.
- Operating income increased by 7.7% to $28.7 million from $26.7
million in fiscal year 2015.
- Non-GAAP[1] operating income
increased by 8.1% to $30.7 million
from $28.4 million in fiscal year
2015.
- Net income increased by 7.0% to $26.3
million from $24.6 million in
fiscal year 2015.
- Non-GAAP[1] net income
increased by 7.4% to $28.3 million
from $26.4 million in fiscal year
2015.
- Basic and diluted net income per American Depositary Share
("ADS") were $0.767 and $0.759, respectively, compared with basic and
diluted net income per ADS of $0.686
and $0.684, respectively, for fiscal
year 2015. Each ADS represents four ordinary shares.
- Basic and diluted non-GAAP[1]
net income per ADS were $0.829 and
$0.818, respectively, compared with
basic and diluted non-GAAP[1] net
income per ADS of $0.739 and
$0.733, respectively, for fiscal year
2015.
- Operating cash inflow increased by 2.9% to $38.9 million from $37.8
million in fiscal year 2015.
[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, "We are pleased to finish the fiscal year by
exceeding our quarterly and full year guidance ranges, recording
net revenue of $38.2 million in the
fourth quarter and $117.5 million in
fiscal 2016, representing year-over-year growth of 7.5% and 8.7%,
respectively. Revenue growth from our accounting and engineering
and construction verticals, books and reference materials and
Xiamen NetinNet together contributed to our fourth quarter
performance."
Mr. Zhu added, "In fiscal 2016, we made steady progress in our
strategic growth initiatives, notably K-12 teacher continuing
education, our Open Learning Platform, mobile related products, Big
Data solutions, and our College Cooperation Program, as well as the
acquisition of an 80% equity interest in Xiamen NetinNet and the
successful listing and planned share issuance of our Zhengbao Yucai
subsidiary on China's New Third
Board. Heading into fiscal 2017, we look forward to executing our
growth initiatives, while always being vigilant to acquisition and
strategic investment opportunities, with the goal of continuing to
drive shareholder value."
Mr. Zhu concluded, "We are pleased to report that in
August 2016 we concluded our
year-long share repurchase program and are happy to report that,
during this period, the Company repurchased 3.1 million ADS in the
open market for a consideration of the full authorization of
$40.0 million. We are proud that our
strong cash generating ability allows us to consistently hold true
to our commitment to maximizing shareholder value."
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, said, "Better-than-expected fourth
quarter revenue growth, coupled with continued disciplined
financial management and diligent cost control contributed to
fiscal year 2016 revenue growth of 8.7% year-over-year. Without the
impact of the Renminbi depreciation against the U.S. Dollar, fiscal
year 2016 revenue and non-GAAP operating income increased 14.2% and
13.8% year-over-year, respectively."
Mr. Marostica added, "Turning to organic growth, excluding both
the operating results of Xiamen NetinNet and the impact of the
Renminbi depreciation against the U.S. Dollar, fiscal year 2016 net
revenue and non-GAAP operating income increased 11.2% and 16.2%
year-over-year, respectively, and as a result, our fiscal year 2016
non-GAAP operating margin improved 118 basis points year-over-year.
Looking ahead, we will continue to balance our efforts to drive
growth with a keen focus on profitability and prudent cost
controls."
Dividend
The Company today announced that its Board of Directors has
approved and declared a special cash dividend of $0.1125 per ordinary share on its outstanding
shares to shareholders of record as of the close of trading on
January 6, 2017.
Holders of American Depositary Shares ("ADS"), each representing
four ordinary shares of CDEL, are accordingly entitled to a cash
dividend of $0.45 per ADS. The
depository, Deutsche Bank Trust Company Americas, will charge a fee
of $0.02 per ADS when the dividends
are distributed on or about January 13,
2017.
Subject to the Company's ongoing financial performance, cash
position, budget and business plan and market conditions, the
Company's Board of Directors will, on a yearly basis, consider
paying a dividend.
Fourth Quarter Fiscal 2016 Financial Results
Net Revenue. Total net revenue increased by 7.5%
to $38.2 million in the fourth
quarter of fiscal 2016 from $35.6
million in the fourth quarter of fiscal 2015. Net revenue
from online education services, books and reference materials, and
other sources contributed 79.6%, 7.2% and 13.2%, respectively, of
total net revenues for the fourth quarter of fiscal 2016.
Online education services. Net revenue from online
education services increased by 1.5% to $30.5 million in the fourth quarter of fiscal
2016 from $30.0 million in the fourth
quarter of fiscal 2015, mainly due to revenue growth in core
accounting test preparation courses, and accounting and engineering
and construction ("E&C") continuing education courses. This
increase was partially offset by decreased revenue in healthcare
and E&C test preparation courses.
Books and reference materials. Net revenue from books and
reference materials increased by 65.9% to $2.8 million in the fourth quarter of fiscal
2016, from $1.7 million in the fourth
quarter of fiscal 2015.
Others. Net revenue from other sources increased by 28.9%
to $5.0 million in the fourth quarter
of fiscal 2016 from $3.9 million in
the fourth quarter of fiscal 2015, primarily due to the recently
acquired Xiamen NetinNet business, which contributed revenue of
$1.9 million in the fourth quarter of
fiscal 2016. This increase was partially offset by decreased
revenue from offline accounting training courses and business
start-up training services.
Cost of Sales. Cost of sales increased by 9.3% to
$13.1 million in the fourth quarter
of fiscal 2016 from $12.0 million in
the fourth quarter of fiscal 2015. Non-GAAP[1] cost of sales increased by 9.3% to
$13.0 million in the fourth quarter
of fiscal 2016 from $11.9 million in
the fourth quarter of fiscal 2015. The increase was mainly due to
increased salaries and related expenses, cost of books and
reference materials, rental and related expenses, as well as
expenses associated with Xiamen NetinNet. This increase was
partially offset by decreased lecture fees.
Gross Profit. Gross profit increased by
6.5% to $25.2 million in the fourth
quarter of fiscal 2016 from $23.6
million in the prior year period. Non-GAAP[1] gross profit increased by 6.5% to
$25.2 million in the fourth quarter
of fiscal 2016 from $23.6 million in
the prior year period. Gross margin was 65.8% in the fourth quarter
of fiscal 2016, compared with 66.4% in the fourth quarter of fiscal
2015. Non-GAAP[1] gross margin
was 65.9% in the fourth quarter of fiscal 2016, compared with 66.5%
in the fourth quarter of fiscal 2015.
Operating Expenses. Total operating expenses
increased by 29.1% to $11.0 million
in the fourth quarter of fiscal 2016, from $8.5 million in the prior year period.
Non-GAAP[1] total operating
expenses increased by 30.7% to $10.6
million in the fourth quarter of fiscal 2016, from
$8.1 million in the prior year
period.
Selling expenses. Selling expenses increased by 42.4% to
$6.2 million in the fourth quarter of
fiscal 2016 from $4.3 million in the
prior year period. Non-GAAP[1]
selling expenses increased by 42.6% to $6.2
million in the fourth quarter of fiscal 2016 from
$4.3 million in the prior year
period. The increase was primarily driven by increased salaries and
related expenses, increased advertising and promotional expenses,
and increased commissions to online agents, together with expenses
associated with Xiamen NetinNet.
General and administrative expenses. General and
administrative expenses increased by 15.3% to $4.8 million in the fourth quarter of fiscal 2016
from $4.2 million in the prior year
period. Non-GAAP[1] general and
administrative expenses increased by 17.1% to $4.4 million in the fourth quarter of fiscal 2016
from $3.8 million in the prior year
period. The increase was mainly due to increased salaries and
related expenses, as well as expenses associated with Xiamen
NetinNet.
Income Tax Expense. Income tax expense decreased
by 13.1% to $2.7 million in the
fourth quarter of fiscal 2016 from $3.1
million in the prior year period, primarily due to a
decrease in taxable income.
Net Income. As a result of the foregoing, net
income decreased by 9.5% to $12.2
million in the fourth quarter of fiscal 2016 from
$13.5 million in the prior year
period. Non-GAAP[1] net income
decreased by 9.2% to $12.7 million in
the fourth quarter of fiscal 2016 from $14.0
million in the prior year period.
Operating Cash Flow. Net operating cash
inflow increased by 18.5% to $5.8
million in the fourth quarter of fiscal 2016 from
$4.9 million in the prior year
period. The operating cash inflow was mainly attributable to net
income before non-cash items generated in the fourth quarter of
fiscal 2016. The increase in accrued expenses and other
liabilities, and income tax payable also contributed to the
operating cash inflow. This operating cash inflow was partially
offset by the increase in accounts receivable, other current
assets, and decrease in deferred revenue.
Cash and Cash Equivalents, Term Deposits, Restricted Cash
and Short-term Investments. Cash and cash equivalents, term
deposits, restricted cash and short-term investments as of
September 30, 2016 decreased by 2.0%
to $70.5 million from $71.9 million as of June
30, 2016, mainly due to the repurchase of $4.2 million of ADSs on the open market, a
long-term investment of $0.6 million,
and capital expenditures of $1.8
million. This decrease was partially offset by cash flow of
$5.8 million generated from operating
activities in the fourth quarter of fiscal 2016.
Fiscal Year 2016 Financial Results
Net revenue. Total net revenue increased by 8.7%
to $117.5 million in fiscal year
2016, from $108.2 million in fiscal
year 2015. Net revenue from online education services, books and
reference materials, and other sources contributed 79.9%, 6.9% and
13.2%, respectively, of total net revenues for fiscal year
2016.
Online education services. Net revenue from online
education services increased by 5.9% to $93.9 million in fiscal year 2016 from
$88.7 million in fiscal year
2015.
Books and reference materials. Net revenue from books and
reference materials increased by 17.4% to $8.1 million in fiscal year 2016 from
$6.9 million in fiscal year 2015.
Others. Net revenue from other sources increased by 23.0%
to $15.6 million in fiscal year 2016
from $12.6 million in fiscal year
2015.
Cost of Sales. Cost of sales increased by
9.0% to $48.3 million in fiscal year
2016, from $44.3 million in fiscal
year 2015. Non-GAAP[1] cost of
sales increased by 9.0% to $48.2
million in fiscal year 2016 from $44.2 million in fiscal year 2015.
Gross Profit. Gross profit increased by
8.4% to $69.2 million in fiscal year
2016 from $63.8 million in fiscal
year 2015. Non-GAAP[1] gross
profit increased by 8.4% to $69.4
million in fiscal year 2016 from $64.0 million in fiscal year 2015. Gross margin
for fiscal year 2016 was 58.9%, compared with 59.0% in fiscal year
2015. Non-GAAP[1] gross margin
for fiscal year 2016 was 59.0%, compared with 59.1% in fiscal year
2015.
Operating Expenses. Total operating
expenses increased by 10.4% to $41.3
million in fiscal year 2016 from $37.4 million in fiscal year 2015.
Non-GAAP[1] total operating
expenses increased by 10.3% to $39.4
million in fiscal year 2016 from $35.8 million in fiscal year 2015.
Selling expenses. Selling expenses increased by 1.4% to
$24.5 million in fiscal year 2016
from $24.2 million in fiscal year
2015. Non-GAAP[1] selling expenses
increased by 1.3% to $24.4 million in
fiscal year 2016 from $24.1 million
in fiscal year 2015.
General and administrative expenses. General and
administrative expenses increased by 27.0% to $16.8 million in fiscal year 2016 from
$13.2 million in fiscal year 2015.
Non-GAAP[1] general and
administrative expenses increased by 28.9% to $15.0 million in fiscal year 2016 from
$11.6 million in fiscal year
2015.
Income Tax Expense. Income tax expense increased
by 4.7% to $6.2 million in fiscal
year 2016 from $5.9 million in fiscal
year 2015.
Net Income. Net income increased by 7.0% to
$26.3 million in fiscal year 2016
from $24.6 million in fiscal year
2015. Non-GAAP[1] net income
increased by 7.4% to $28.3 million in
fiscal year 2016 from $26.4 million
in fiscal year 2015.
Operating Cash Flow. Net operating cash inflow
increased by 2.9% to $38.9 million
from $37.8 million in fiscal year
2015.
Cash and Cash Equivalents, Term Deposits, Restricted Cash
and Short-term Investments. Cash and cash
equivalents, term deposits, restricted cash and short-term
investments as of September 30, 2016
decreased by 49.3% to $70.5 million
from $138.9 million as of
September 30, 2015.
Outlook
For the first quarter of fiscal 2017, the Company expects to
generate total net revenue in the range of $28.0 million to $29.2 million, representing
year-over-year growth of approximately 15% to 20%.
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 the following morning on
Wednesday, November 30, 2016
(9:00 p.m. Beijing Time on
November 30, 2016) to discuss
financial results and answer questions from investors and analysts.
Listeners may access the call by dialing:
U.S. Toll
Free:
|
+1-866-5194-004
|
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 approximately two hours
after the call until December 7, 2016
by dialing:
U.S. Toll
Free:
|
+1-855-4525-696
|
International:
|
+61-2-8199-0299
|
Mainland
China:
|
400-632-2162
|
Hong Kong:
|
800-963-117
|
United
Kingdom:
|
0808-234-0072
|
Replay
Passcode:
|
20463322
|
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 in China
focusing on professional education. 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 other professional education courses for
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, and online
language courses. The Company also offers third-party developed
online courses through its Online Open Learning Platform, a
proprietary education platform that allows people to share their
educational content or deliver live courses online. 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 first quarter of fiscal year 2017 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
K-12 teacher continuing education, Open Learning Platform, mobile
related products, Big Data solutions, and College Cooperation
Program, as well as the acquisition of and strategic investment in
Xiamen NetinNet and any other business and the listing and planned
share issuance of Zhengbao Yucai on China's New Third Board) 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: goals and growth strategies; future prospects and market
acceptance of the Company's courses and other products and
services; future business development and results of operations;
projected revenues, profits, earnings and other estimated financial
information; projected enrollment numbers; plans to expand and
enhance 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 charges 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
ext1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel:+1
212-481-2050
Email:
DL@tpg-ir.com
|
(Financial Tables on Following Pages)
China Distance
Education Holdings Limited
|
Consolidated
Balance Sheets
|
(in thousands of
US Dollars, except number of shares and per share
data)
|
|
|
|
|
|
|
|
|
September
30, 2015
|
|
September 30,
2016
|
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
Assets:
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
117,899
|
|
53,677
|
|
|
Term
deposits
|
4,720
|
|
-
|
|
|
Restricted
cash
|
16,312
|
|
15,547
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$661 and
US$158 as of
September 30, 2016 and September 30, 2015, respectively
|
2,800
|
|
5,454
|
|
|
Inventories
|
871
|
|
971
|
|
|
Prepayment and other
current assets
|
4,853
|
|
5,893
|
|
|
Short term
investments
|
-
|
|
1,278
|
|
|
Amount due from a
related party
|
103
|
|
208
|
|
|
Deferred tax assets,
current portion
|
1,508
|
|
1,676
|
|
|
Deferred
cost
|
1,163
|
|
1,118
|
|
|
Total
current assets
|
150,229
|
|
85,822
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
12,916
|
|
13,908
|
|
|
Goodwill
|
7,429
|
|
29,392
|
|
|
Long term
investments
|
-
|
|
3,079
|
|
|
Other intangible
assets, net
|
1,078
|
|
11,675
|
|
|
Deposit for purchase
of non-current assets
|
93
|
|
1,116
|
|
|
Other non-current
assets
|
2,375
|
|
3,928
|
|
|
Total
non-current assets
|
23,891
|
|
63,098
|
|
|
|
|
|
|
|
|
Total
assets
|
174,120
|
|
148,920
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
borrowing
|
16,467
|
|
15,551
|
|
|
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$26,279 and US$24,129 as of September 30, 2016 and
September 30, 2015,
respectively)
|
25,993
|
|
30,564
|
|
|
Income tax payable
(including income tax payable of the consolidated VIE
without
recourse to China
Distance Education Holdings Limited of US$3,353 and
US$3,474 as of
September 30, 2016 and September 30, 2015, respectively)
|
4,453
|
|
5,308
|
|
|
Deferred revenue
(including deferred revenue of the consolidated VIE
without
recourse to China
Distance Education Holdings Limited of US$35,437 and
US$29,540 as of
September 30, 2016 and September 30, 2015, respectively)
|
29,563
|
|
36,332
|
|
|
Refundable fees
(including refundable fees of the consolidated VIE
without
recourse to China
Distance Education Holdings Limited of US$862 and
US$5,245
as of September 30,
2016 and September 30, 2015, respectively)
|
5,245
|
|
862
|
|
|
Total
current liabilities
|
81,721
|
|
88,617
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities, non-current portion
|
1,590
|
|
3,831
|
|
|
Total
non-current liabilities
|
1,590
|
|
3,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
83,311
|
|
92,448
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share at September 30, 2016 and
September 30, 2015,
respectively; Authorized -500,000,000 shares at
September
30, 2016 and
September 30, 2015, respectively; Issued and outstanding
-
131,729,773 and
142,406,933 shares at September 30, 2016 and September
30,
2015,
respectively)
|
14
|
|
13
|
|
|
Additional paid-in
capital
|
55,598
|
|
15,697
|
|
|
Accumulated other
comprehensive income (loss)
|
2,735
|
|
(3,676)
|
|
|
Retained
Earnings
|
32,462
|
|
32.944
|
|
|
Total
China Distance Education Holdings Limited shareholder's
equity
|
90,809
|
|
44,978
|
|
|
Noncontrolling
interest
|
-
|
|
11,494
|
|
|
Total
equity
|
90,809
|
|
56,472
|
|
|
Total
liabilities and equity
|
174,120
|
|
148,920
|
|
|
|
|
|
|
|
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 September 30,
|
|
2015
|
|
2016
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
30,015
|
|
30,454
|
|
Books and reference
materials
|
1,661
|
|
2,755
|
|
Others
|
3,903
|
|
5,030
|
|
Total
net revenues
|
35,579
|
|
38,239
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of
services
|
(11,486)
|
|
(11,835)
|
|
Cost of tangible
goods sold
|
(484)
|
|
(1,250)
|
|
Total
cost of sales
|
(11,970)
|
|
(13,085)
|
|
|
|
|
|
Gross
profit
|
23,609
|
|
25,154
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(4,336)
|
|
(6,175)
|
|
General and
administrative expenses
|
(4,200)
|
|
(4,841)
|
|
Total
operating expenses
|
(8,536)
|
|
(11,016)
|
Other operating
income
|
14
|
|
445
|
|
|
|
|
|
Operating
income
|
15,087
|
|
14,583
|
|
|
|
|
Interest
income
|
1,096
|
|
255
|
Interest
expense
|
(148)
|
|
(118)
|
Exchange
gain
|
532
|
|
243
|
|
|
|
|
|
Income
before income taxes
|
16,567
|
|
14,963
|
Less: Income tax
expense
|
(3,052)
|
|
(2,653)
|
Loss
from equity method investment
|
-
|
|
(91)
|
|
|
|
|
Net
income
|
13,515
|
|
12,219
|
Net loss
attributable to noncontrolling interest
|
-
|
|
6
|
Net
income attributable to China Distance Education
Holdings Limited
|
13,515
|
|
12,225
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.094
|
|
0.093
|
|
Diluted
|
0.094
|
|
0.092
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited
shareholders
|
|
|
|
|
Basic
|
0.377
|
|
0.370
|
|
Diluted
|
0.376
|
|
0.369
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
142,709,504
|
|
131,546,652
|
|
Diluted
|
143,816,644
|
|
132,362,078
|
China Distance
Education Holdings Limited
|
Consolidated
Statements of Operations
|
(in
thousands of US dollars, except number of shares, per share and per
ADS data)
|
|
|
Year
Ended September 30,
|
|
2015
|
|
2016
|
|
(Derived from
Audited)
|
|
(Unaudited)
|
|
|
|
|
Sales, net of
business tax, value-added tax and related
surcharges:
|
|
|
|
|
Online education
services
|
88,657
|
|
93,923
|
|
Books and reference
materials
|
6,873
|
|
8,067
|
|
Others
|
12,647
|
|
15,558
|
|
Total
net revenues
|
108,177
|
|
117,548
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
Cost of
services
|
(41,043)
|
|
(43,796)
|
|
Cost of tangible
goods sold
|
(3,300)
|
|
(4,538)
|
|
Total
cost of sales
|
(44,343)
|
|
(48,334)
|
|
|
|
|
|
Gross
profit
|
63,834
|
|
69,214
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(24,186)
|
|
(24,517)
|
|
General and
administrative expenses
|
(13,211)
|
|
(16,778)
|
|
Total operating
expenses
|
(37,397)
|
|
(41,295)
|
Other operating
income
|
224
|
|
806
|
|
|
|
|
|
Operating
income
|
26,661
|
|
28,725
|
|
|
|
|
Interest
income
|
3,513
|
|
2,020
|
Interest
expense
|
(464)
|
|
(555)
|
Exchange
gain
|
737
|
|
2,462
|
|
|
|
|
|
Income
before income taxes
|
30,447
|
|
32,652
|
Less: Income tax
expense
|
(5,874)
|
|
(6,150)
|
Loss from equity
method investment
|
-
|
|
(91)
|
|
|
|
|
Net
income
|
24,573
|
|
26,411
|
Net income
attributable to noncontrolling interest
|
-
|
|
(121)
|
Net
income attributable to China Distance Education
Holdings Limited
|
24,573
|
|
26,290
|
Net income
per share:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.172
|
|
0.192
|
|
Diluted
|
0.171
|
|
0.190
|
Net income
per ADS:
|
|
|
|
Net income
attributable to China Distance Education Holdings
Limited shareholders
|
|
|
|
|
Basic
|
0.686
|
|
0.767
|
|
Diluted
|
0.684
|
|
0.759
|
|
|
|
|
Weighted average
shares used in calculating net income per
share:
|
|
|
|
|
Basic
|
142,720,838
|
|
136,497,929
|
|
Diluted
|
143,767,990
|
|
138,465,944
|
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 September 30,
|
|
|
2015
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
11,970
|
|
13,085
|
Share-based
compensation expense in cost of sales
|
|
40
|
|
40
|
Non-GAAP cost of
sales
|
|
11,930
|
|
13,045
|
|
|
|
|
|
Selling
expenses
|
|
4,336
|
|
6,175
|
Share-based
compensation expense in selling expenses
|
|
20
|
|
21
|
Non-GAAP selling
expenses
|
|
4,316
|
|
6,154
|
|
|
|
|
|
General and
administrative expenses
|
|
4,200
|
|
4,841
|
Share-based
compensation expense in general and administrative
expenses
|
|
443
|
|
442
|
Non-GAAP general and
administrative expenses
|
|
3,757
|
|
4,399
|
|
|
|
|
|
Gross
profit
|
|
23,609
|
|
25,154
|
Share-based
compensation expenses
|
|
40
|
|
40
|
Non-GAAP gross
profit
|
|
23,649
|
|
25,194
|
|
|
|
|
|
Gross profit
margin
|
|
66.4%
|
|
65.8%
|
Non-GAAP gross profit
margin
|
|
66.5%
|
|
65.9%
|
|
|
|
|
|
Operating
income
|
|
15,087
|
|
14,583
|
Share-based
compensation expenses
|
|
503
|
|
503
|
Non-GAAP operating
income
|
|
15,590
|
|
15,086
|
|
|
|
|
|
Operating
margin
|
|
42.4%
|
|
38.1%
|
Non-GAAP operating
margin
|
|
43.8%
|
|
39.5%
|
|
|
|
|
|
Net income
|
|
13,515
|
|
12,225
|
Share-based
compensation expense
|
|
503
|
|
503
|
Non-GAAP net
income
|
|
14,018
|
|
12,728
|
|
|
|
|
|
Net income
margin
|
|
38.0%
|
|
32.0%
|
Non-GAAP net income
margin
|
|
39.4%
|
|
33.3%
|
|
|
|
|
|
Net income per share
- basic
|
|
0.094
|
|
0.093
|
Net income per share
- diluted
|
|
0.094
|
|
0.092
|
Non-GAAP net income
per share - basic
|
|
0.098
|
|
0.097
|
Non-GAAP net income
per share - diluted
|
|
0.097
|
|
0.096
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings
Limited
shareholders - basic (note 1)
|
|
0.377
|
|
0.370
|
Net income per
ADS attributable to China Distance Education Holdings
Limited
shareholders - diluted (note 1)
|
|
0.376
|
|
0.369
|
Non-GAAP net income
per ADS attributable to China Distance Education
Holdings
Limited shareholders - basic (note 1)
|
|
0.393
|
|
0.387
|
Non-GAAP net income
per ADS attributable to China Distance Education
Holdings
Limited shareholders - diluted (note 1)
|
|
0.390
|
|
0.385
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
142,709,504
|
|
131,546,652
|
Weighted average
shares used in calculating diluted net income per share
|
|
143,816,644
|
|
132,362,078
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
142,709,504
|
|
131,546,652
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
143,816,644
|
|
132,362,078
|
|
|
|
|
|
note 1: Each ADS represents
four ordinary shares
|
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)
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
2015
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
44,343
|
|
48,334
|
Share-based
compensation expense in cost of sales
|
|
143
|
|
162
|
Non-GAAP cost of
sales
|
|
44,200
|
|
48,172
|
|
|
|
|
|
Selling
expenses
|
|
24,186
|
|
24,517
|
Share-based
compensation expense in selling expenses
|
|
74
|
|
84
|
Non-GAAP selling
expenses
|
|
24,112
|
|
24,433
|
|
|
|
|
|
General and
administrative expenses
|
|
13,211
|
|
16,778
|
Share-based
compensation expense in general and administrative
expenses
|
|
1,566
|
|
1,769
|
Non-GAAP general and
administrative expenses
|
|
11,645
|
|
15,009
|
|
|
|
|
|
Gross
profit
|
|
63,834
|
|
69,214
|
Share-based
compensation expenses
|
|
143
|
|
162
|
Non-GAAP gross
profit
|
|
63,977
|
|
69,376
|
|
|
|
|
|
Gross profit
margin
|
|
59.0%
|
|
58.9%
|
Non-GAAP gross profit
margin
|
|
59.1%
|
|
59.0%
|
|
|
|
|
|
Operating
income
|
|
26,661
|
|
28,725
|
Share-based
compensation expenses
|
|
1,783
|
|
2,015
|
Non-GAAP operating
income
|
|
28,444
|
|
30,740
|
|
|
|
|
|
Operating
margin
|
|
24.6%
|
|
24.4%
|
Non-GAAP operating
margin
|
|
26.3%
|
|
26.2%
|
|
|
|
|
|
Net income
|
|
24,573
|
|
26,290
|
Share-based
compensation expense
|
|
1,783
|
|
2,015
|
Non-GAAP net
income
|
|
26,356
|
|
28,305
|
|
|
|
|
|
Net income
margin
|
|
22.7%
|
|
22.4%
|
Non-GAAP net income
margin
|
|
24.4%
|
|
24.1%
|
|
|
|
|
|
Net income per share
- basic
|
|
0.172
|
|
0.192
|
Net income per share
- diluted
|
|
0.171
|
|
0.190
|
Non-GAAP net income
per share - basic
|
|
0.185
|
|
0.207
|
Non-GAAP net income
per share - diluted
|
|
0.183
|
|
0.204
|
|
|
|
|
|
Net income per ADS
attributable to China Distance Education Holdings
Limited
shareholders - basic (note 1)
|
|
0.686
|
|
0.767
|
Net income per
ADS attributable to China Distance Education Holdings
Limited
shareholders - diluted (note 1)
|
|
0.684
|
|
0.759
|
Non-GAAP net income
per ADS attributable to China Distance Education
Holdings
Limited shareholders - basic (note 1)
|
|
0.739
|
|
0.829
|
Non-GAAP net income
per ADS attributable to China Distance Education
Holdings
Limited shareholders - diluted (note 1)
|
|
0.733
|
|
0.818
|
|
|
|
|
|
Weighted average
shares used in calculating basic net income per share
|
|
142,720,838
|
|
136,497,929
|
Weighted average
shares used in calculating diluted net income per share
|
|
143,767,990
|
|
138,465,944
|
Weighted average
shares used in calculating basic non-GAAP net income per
share
|
|
142,720,838
|
|
136,497,929
|
Weighted average
shares used in calculating diluted non-GAAP net income per
share
|
|
143,767,990
|
|
138,465,944
|
|
|
|
|
|
note 1: Each ADS represents
four ordinary shares
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-financial-results-for-fourth-quarter-and-fiscal-year-2016-300369828.html
SOURCE China Distance Education Holdings Limited