BEIJING, May 15, 2019 /PRNewswire/ -- China Distance
Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a
leading provider of online education and value-added services for
professionals and corporate clients in China, today announced unaudited financial
results for the second quarter of fiscal year 2019 ended
March 31, 2019.
Second Quarter Fiscal 2019 Financial and Operational
Highlights
- Net revenue increased by 30.3% to $38.8
million from $29.7 million in
the prior year period.
- Total course enrollments were 642,000, an increase of
8.9% from the second quarter of fiscal 2018.
- Cash receipts from online course registration were $57.0 million, a 29.8% increase from the second
quarter of fiscal 2018.
- Gross profit increased by 39.9% to $15.5
million from $11.1 million in
the prior year period.
- Non-GAAP[1] gross profit increased by
39.6% to $15.5 million from
$11.1 million in the prior year
period.
- Gross margin was 39.9%, compared with 37.2% in the prior year
period. Non-GAAP[1] gross margin was
39.9%, compared with 37.3% in the prior year period.
- Operating loss was $4.1 million,
compared with $2.9 million in the
prior year period.
- Non-GAAP[1] operating loss was
$3.6 million, compared with
$2.4 million in the prior year
period.
- Net loss was $3.9 million,
compared with net loss of $3.3
million in the prior year period.
- Non-GAAP[1] net loss was $3.4 million, compared with
non-GAAP[1]
net loss of $2.7 million in the prior
year period.
- Basic and diluted net loss per American Depositary Share
("ADS") were $0.116, compared with
basic and diluted net loss per ADS of $0.098 for the second quarter of fiscal 2018.
Each ADS represents four ordinary shares.
- Basic and diluted non-GAAP[1] net loss per ADS were
$0.101, compared with basic and
diluted non-GAAP[1] net loss per ADS of
$0.082 for the second quarter of
fiscal 2018.
- Cash flow from operations increased by 128.8% to $16.5 million from $7.2
million in the second quarter of fiscal 2018.
- CDEL's controlled company Beijing Zhengbao Yucai Education
Technology Company Limited completed its voluntary delisting from
the New Third Board, the over-the-counter stock exchange in
China, on April 22, 2019.
- On May 15, 2019, CDEL decided to
acquire an additional 9% equity interest in Beijing Ruida Chengtai
Education Technology Co., Ltd. ("Beijing Ruida"), a company engaged
in exam preparation services for participants in China's Legal Professional Qualification
Examination, for a total consideration of RMB38.3 million ($5.6
million), bringing the Company's total equity interest in
Beijing Ruida from 51% in the second quarter of fiscal 2019 to 60%.
The transaction is expected to close in the third quarter of fiscal
2019.
Mr. Zhengdong Zhu, Chairman and
CEO of CDEL, said, "In the second quarter of fiscal 2019, revenue
grew 30.3% year-over-year, exceeding the high end of our guidance
range, primarily driven by the strong growth of our accounting
vertical together with a significant increase in revenue from the
sale of learning simulation software. Revenue from the legal
vertical generated by Beijing Ruida also contributed to the growth.
Total enrollment growth was 8.9% year-over-year in the second
quarter, primarily due to the substantial enrollment growth in
accounting and engineering & construction (E&C) continuing
education courses. Cash receipts from online course registration
grew 29.8% year-over-year in the second quarter, reflecting the
continued popularity of our longer duration premium and elite
classes."
Mr. Zhu concluded, "We are pleased with our second quarter
revenue performance as well as the strong momentum of cash receipts
growth during the first half of fiscal year 2019. We attribute our
performance to our robust lifelong learning ecosystem,
well-diversified business model, reputable brand, and a firm
commitment to helping our students achieve superior learning
outcomes. Recently, the Company decided to increase its equity
interest in Beijing Ruida to 60%, from 51% in the second quarter
fiscal 2019, based on Ruida's high-quality legal education
courseware and considerable growth potential. This strategic
investment decision reflects our dedication to further enhancing
the Company's comprehensive lifelong learning ecosystem. Looking
ahead, we will remain focused on delivering best-of-breed
courseware and value-added services to our students at different
stages of their careers, and strive to be the premier education
partner for our students throughout their lifelong learning
journey."
Mr. Mark Marostica, Co-Chief
Financial Officer of CDEL, said, "Similar to the second quarters of
fiscal 2018 and fiscal 2017, we recorded an operating loss in the
second quarter of fiscal 2019, as it is typically the lowest
revenue quarter of our fiscal year due to seasonality. In addition,
the operating loss of the second quarter fiscal 2019 was more
pronounced due to our acquisition of Beijing Ruida in July 2018, as Beijing Ruida has quarterly revenue
seasonality similar to CDEL's core business, and the operating
results of Beijing Ruida include $1.7
million amortization expenses of intangibles arising from
the acquisition of Beijing Ruida."
Mr. Marostica, continued, "Despite the first half of fiscal year
2019 operating loss, we believe we will see year-over-year
improvement in our operating margins in fiscal year 2019 as a
result of our expectation of healthy revenue growth in the fiscal
year, together with the implementation of certain expense control
measures. As we head into our second half of fiscal year 2019, we
are focused on continuing to balance growth with a strong emphasis
on profitability and expense controls."
CEO Share Purchase Plan
As announced on June 25, 2018 by
the Company, Mr. Zhengdong Zhu,
Chairman and CEO of CDEL, had informed the Company of his intention
to use his personal funds to purchase the Company's shares for an
amount up to a maximum of $25 million
within one year. As of May 15, 2019,
Mr. Zhu had bought a total of approximately $11.1 million of the Company's ordinary shares
and ADSs pursuant to a 10b5-1 plan in accordance with Rule
10b-18 of the Securities Exchange Act
of 1934, as amended.
Second Quarter Fiscal 2019 Financial Results
Net Revenue. Total net revenue increased by
30.3% to $38.8 million in the second
quarter of fiscal 2019 from $29.7
million in the second quarter of fiscal 2018. Net revenue
from online education services, books and reference materials, and
other sources contributed 71.9%, 14.0% and 14.1%, respectively, of
total net revenues for the second quarter of fiscal 2019.
Online education services. Net revenue from online
education services increased by 19.2% to $27.9 million in the second quarter of fiscal
2019 from $23.4 million in the second
quarter of fiscal 2018, mainly due to revenue growth from the
accounting vertical. Revenues from courses of Intermediate and
Advance Level Accounting Professional Qualifications Exams
("APQE"), and CPA Qualification Exam grew strongly in the second
quarter of fiscal 2019. This increase was partially offset by the
decrease in revenue from Elementary APQE courses.
Books and reference materials. Net revenue from books and
reference materials increased by 288.3% to $5.4 million in the second quarter of fiscal 2019
from $1.4 million in the second
quarter of fiscal 2018, mainly due to book sale revenue from the
Legal Professional Qualification Examination contributed by Beijing
Ruida. Book sale revenue from our core accounting professional
exams also contributed to the growth.
Others. Net revenue from other sources increased by 10.5%
to $5.5 million in the second quarter
of fiscal 2019 from $5.0 million in
the second quarter of fiscal 2018, primarily due to a significant
increase in revenue from the sale of learning simulation software.
This increase was partially offset by the decrease in revenue from
the "Tax School Program" which we disposed in the first quarter of
fiscal 2019.
Cost of Sales. Cost of sales increased by 24.6% to
$23.3 million in the second quarter
of fiscal 2019 from $18.7 million in
the second quarter of fiscal 2018. Non-GAAP[1] cost of sales increased by
24.8% to $23.3 million in the second
quarter of fiscal 2019 from $18.7
million in the second quarter of fiscal 2018. The increase
was mainly due to the increase in cost of purchase related to the
sale of learning simulation software, cost of books and reference
materials, and expenses associated with Beijing Ruida, including
amortization expenses of intangibles arising from its acquisition
of $1.7 million. This increase was
partially offset by the decrease in salaries and related
expenses.
Gross Profit and Gross Margin. Gross profit
was $15.5 million in the second
quarter of fiscal 2019, up 39.9% from $11.1
million in the prior year period.
Non-GAAP[1]
gross profit was $15.5 million,
increasing by 39.6% from $11.1
million in the prior year period. Gross margin was
39.9% in the second quarter of fiscal 2019, compared
with 37.2% in the second quarter of fiscal 2018.
Non-GAAP[1] gross margin was
39.9% in the second quarter of fiscal 2019, compared
with 37.3% in the second quarter of fiscal 2018.
Operating Expenses. Total operating expenses
increased by 44.5% to $20.4 million
in the second quarter of fiscal 2019, from $14.1 million in the prior year period.
Non-GAAP[1]
total operating expenses increased by 46.4% to $19.9 million in the second quarter of fiscal
2019, from $13.6 million in the prior
year period.
Selling expenses. Selling expenses increased by 65.5% to
$13.8 million in the second quarter
of fiscal 2019 from $8.3 million in
the prior year period. Non-GAAP[1] selling expenses increased
by 65.9% to $13.8 million in the
second quarter of fiscal 2019 from $8.3
million in the prior year period. The increase was primarily
driven by the increase in salaries and related expenses, higher
commissions to agents, higher advertising and promotional expenses,
expenses associated with Beijing Ruida, and other miscellaneous
selling expenses.
General and administrative expenses. General and
administrative expenses increased by 14.1% to $6.6 million in the second quarter of fiscal 2019
from $5.8 million in the prior year
period. Non-GAAP[1] general and administrative
expenses increased by 15.5% to $6.1
million in the second quarter of fiscal 2019 from
$5.3 million in the prior year
period. The increase was mainly due to the increase in salaries and
related expenses, and expenses associated with Beijing Ruida.
Income Tax Benefit. Income tax benefit decreased
by 6.7% to $1.3 million in the second
quarter of fiscal 2019 from $1.4
million in the prior year period, primarily due to a lower
estimated effective tax rate applied in fiscal year 2019, compared
with the prior year period.
Net Loss. As a result of the foregoing, net loss
was $3.9 million in the second
quarter of fiscal 2019, compared with net loss of $3.3 million in the prior year period.
Non-GAAP[1]
net loss was $3.4 million in the
second quarter of fiscal 2019, compared with
non-GAAP[1]
net loss of $2.7 million in the prior
year period.
Operating Cash Flow. Net operating
cash inflow increased by 128.8% to $16.5
million in the second quarter of fiscal 2019 from
$7.2 million in the prior year
period. The operating cash inflow was mainly attributable to the
increase in deferred revenue generated from our professional
education services segment. The operating cash inflow was partially
offset by the increase in accounts receivable, prepayments and
other current assets, and the decrease in accrued expenses and
other liabilities, income tax payable, deferred tax liabilities,
and amount due to a related party.
Cash and Cash Equivalents, Restricted Cash and Short-term
Investments. Cash and cash equivalents, restricted cash and
short-term investments as of March 31,
2019 increased by 17.7% to $130.1
million from $110.5 million as
of December 31, 2018, mainly due to
the operating cash inflow generated in the second quarter of fiscal
2019, which was partially offset by the capital expenditure of
$1.7 million.
First Six Months of Fiscal 2019 Financial
Results
Net Revenue. Total net revenue increased by
24.0% to $81.4 million in the first
six months of fiscal 2019 from $65.6
million in the first six months of fiscal 2018. Net revenue
from online education services, books and reference materials, and
other sources contributed 65.0%, 14.5% and 20.5%, respectively, of
total net revenues for the first six months of fiscal 2019.
Online education services. Net revenue from online
education services increased by 15.5% to $52.9 million in the first six months of fiscal
2019 from $45.8 million in the first
six months of fiscal 2018.
Books and reference materials. Net revenue from books and
reference materials increased by 213.3% to $11.8 million in the first six months of fiscal
2019 from $3.8 million in the first
six months of fiscal 2018.
Others. Net revenue from other sources increased by 3.9%
to $16.7 million in the first six
months of fiscal 2019 from $16.0
million in the first six months of fiscal 2018.
Cost of Sales. Cost of sales increased by 31.9% to
$48.9 million in the first six months
of fiscal 2019 from $37.1 million in
the first six months of fiscal 2018. Non-GAAP[1] cost of sales
increased by 32.1% to $48.9 million
in the first six months of fiscal 2019 from $37.0 million in the first six months of fiscal
2018.
Gross Profit and Gross Margin. Gross profit
was $32.5 million in the first six
months of fiscal 2019, up 13.8% from $28.6
million in the prior year period.
Non-GAAP[1] gross profit was
$32.5 million, increasing by 13.6%
from $28.6 million in the prior year
period. Gross margin was 39.9% in the first six months
of fiscal 2019, compared with 43.5% in the first six months of
fiscal 2018. Non-GAAP[1] gross margin was
40.0% in the first six months of fiscal 2019, compared
with 43.6% in the first six months of fiscal 2018.
Operating Expenses. Total operating expenses
increased by 45.9% to $41.2 million
in the first six months of fiscal 2019 from $28.2 million in the prior year period.
Non-GAAP[1] total operating
expenses increased by 47.6% to $40.2
million in the first six months of fiscal 2019 from
$27.2 million in the prior year
period.
Selling expenses. Selling expenses increased by 62.0% to
$28.3 million in the first six months
of fiscal 2019 from $17.5 million in
the prior year period. Non-GAAP[1] selling expenses increased
by 62.3% to $28.3 million in the
first six months of fiscal 2019 from $17.4
million in the prior year period.
General and administrative expenses. General and
administrative expenses increased by 19.9% to $12.9 million in the first six months of fiscal
2019 from $10.8 million in the prior
year period. Non-GAAP[1] general and
administrative expenses increased by 21.5% to $11.9 million in the first six months of fiscal
2019 from $9.8 million in the prior
year period.
Gain on Deconsolidation of a Subsidiary. Gain on
deconsolidation of a subsidiary of $6.9
million related to the gain on disposal of 60% equity
interest, and fair value change of remaining 40% equity interest,
in Champion Tax Advisory or "Tax School Program."
Income Tax Benefit. Income tax benefit decreased
by 49.6% to $0.4 million in the first
six months of fiscal 2019 from $0.8
million in the prior year period.
Net Loss. As a result of the foregoing, net loss
was $2.0 million in the first six
months of fiscal 2019, compared with $3.2
million in the prior year period.
Non-GAAP[1]
net loss was $1.0 million in the
first six months of fiscal 2019, compared with
non-GAAP[1]
net loss of $2.1 million in the prior
year period.
Operating Cash Flow. Net operating
cash inflow increased by 91.0% to $41.3
million in the first six months of fiscal 2019 from
$21.6 million in the prior year
period.
Outlook
For the third quarter of fiscal 2019, the Company expects to
generate total net revenue in the range of $61.6 million to $64.0
million, representing year-over-year growth of approximately
30% to 35%.
For fiscal year 2019, the Company expects to generate total net
revenues in the range of $210.0
million to $218.3 million,
representing year-over-year growth of approximately 26% to 31%. The
Company's prior fiscal 2019 full-year total net revenue guidance
range was $208.3 million to
$216.7 million.
The above guidance reflects the Company's current and
preliminary view, which is subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, May 16, 2019
(8:00 p.m. Beijing Time on
Thursday, May 16, 2019) to discuss
financial results and answer questions from investors and analysts.
Listeners may access the call by dialing:
US Toll Free: +1-866-519-4004
International: +65-6713-5090
Mainland China: 400-620-8038
Hong Kong: +852-3018-6771
United Kingdom:
+44-203-6214-779
Passcode: CDEL or DL
A telephone replay will be available two hours after the call
until May 23, 2019 by dialing:
US Toll Free: +1-855-452-5696
International: +61-2-8199-0299
Mainland China: 400-632-2162
Hong Kong: 800-963-117
United Kingdom: 0808-234-0072
Replay Passcode: 2589101
Additionally, a live and archived webcast of the conference call
will be available at http://ir.cdeledu.com.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider
of online education and value-added services for professionals and
corporate clients in China. The
courses offered by the Company through its websites are designed to
help professionals seeking to obtain and maintain professional
licenses and to enhance their job skills through our professional
development courses in China in
the areas of accounting, healthcare, engineering &
construction, legal and other industries. The Company also offers
online test preparation courses for self-taught learners pursuing
higher education diplomas or degrees, practical accounting training
courses for college students and working professionals, as well as
third-party developed online courses. In addition, the Company
provides business services to corporate clients, including but not
limited to tax advisory and accounting outsourcing services. For
further information, please visit http://ir.cdeledu.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "may," "should," "potential," "continue," "expect,"
"predict," "anticipate," "future," "intend," "plan," "believe,"
"is/are likely to," "estimate" and similar statements. Among other
things, the outlook for the third quarter and full fiscal year 2019
and quotations from management in this announcement, as well as the
Company's strategic and operational plans (in particular, the
anticipated benefits of strategic growth initiatives, including the
promotion of the Company's lifelong learning ecosystem, as well as
cost control and year-over-year improvement of operating margins)
contain forward-looking statements. The Company may also make
written or oral forward-looking statements in its periodic and
annual reports to the SEC, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: our goals and growth strategies; future
prospects and market acceptance of our courses and other products
and services; our future business development and results of
operations; projected revenues, profits, earnings and other
estimated financial information; projected enrollment numbers; our
plans to expand and enhance our courses and other products and
services; competition in the education and test preparation
markets; and Chinese laws, regulations and policies, including
those applicable to the Internet, Internet content providers, the
education and telecommunications industries, mergers and
acquisitions, taxation and foreign exchange.
Further information regarding these and other risks is included
in the Company's annual report on Form 20-F and other documents
filed or furnished with the SEC. All information provided in this
press release is as of the date of this press release. The Company
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth in this press
release is preliminary and subject to adjustments. Adjustments to
the financial statements may be identified when audit work is
performed for the year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial results
presented in accordance with U.S. generally accepted accounting
principles, or GAAP, the Company uses the following measures
defined as non-GAAP financial measures: non-GAAP net income,
operating income, gross profit, cost of sales, selling expenses,
general and administrative expenses, net income margin, operating
margin, gross profit margin, and basic and diluted earnings per ADS
and per share. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP
financial measures, please see the table captioned "Reconciliations
of non-GAAP measures to comparable GAAP measures" set forth at the
end of this release.
The Company believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance by excluding share-based compensation expenses.
However, non-GAAP financial measures may not be indicative of the
Company's operating performance from a cash perspective. The
Company believes that both management and investors benefit from
these non-GAAP financial measures in assessing its performance and
when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management's internal
comparisons to the Company's historical performance and liquidity.
The Company computes its non-GAAP financial measures using the same
consistent method from quarter to quarter. The Company believes
these non-GAAP financial measures are useful to investors in
allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision making. A limitation of excluding share-based compensation
expenses from the above-mentioned line items and presenting these
non-GAAP measures is that such items may continue to be for the
foreseeable future a significant recurring expense in our business.
Management compensates for this limitation by providing specific
information regarding the GAAP amounts excluded from each non-GAAP
measure. The accompanying table at the end of this release provides
more detail on the reconciliations between GAAP financial measures
that are most directly comparable to non-GAAP financial
measures.
Contacts:
China Distance
Education Holdings Limited
Investor Relations
Department
Tel: +86-10-8231-9999
ext. 1826
Email: IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email: DL@tpg-ir.com
|
[1] For more
information about the non-GAAP financial measures contained in this
press release, please see "Use of Non-GAAP Financial Measures"
below.
|
(Financial Tables on Following
Pages)
China Distance Education Holdings
Limited
|
Unaudited Condensed Consolidated Balance
Sheets
|
(in thousands of US Dollars, except number of shares
and per share data)
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
March 31, 2019
|
|
Assets:
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
30,826
|
|
62,708
|
|
|
Restricted
cash
|
51,736
|
|
48,090
|
|
|
Short term
investments
|
17,073
|
|
19,270
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of US$1,513 and
US$1,342 as of March 31, 2019 and September 30,
2018,respectively
|
7,280
|
|
6,475
|
|
|
Inventories
|
2,782
|
|
4,339
|
|
|
Prepayment and other
current assets
|
17,054
|
|
23,617
|
|
|
Deferred
cost
|
1,125
|
|
1,455
|
|
|
Total current
assets
|
127,876
|
|
165,954
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
27,972
|
|
40,368
|
|
|
Goodwill
|
79,516
|
|
81,287
|
|
|
Long term
investments
|
33,837
|
|
37,537
|
|
|
Other intangible
assets, net
|
39,500
|
|
36,519
|
|
|
Deposit for purchase
of non-current assets
|
8,126
|
|
3,007
|
|
|
Deferred tax
assets
|
5,711
|
|
4,912
|
|
|
Other non-current
assets
|
6,387
|
|
10,979
|
|
|
Total non-current
assets
|
201,049
|
|
214,609
|
|
|
|
|
|
|
|
|
Total assets
|
328,925
|
|
380,563
|
|
|
|
|
|
|
|
Liabilities and equity:
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Bank
borrowings
|
50,975
|
|
51,843
|
|
|
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$30,378 and US$34,993 as of March 31, 2019
and
September 30, 2018,respectively)
|
42,141
|
|
36,152
|
|
|
Amount due to a
related party
|
-
|
|
798
|
|
|
Income tax payable
(including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$5,425
and
US$$4,847 as of March 31, 2019 and September 30, 2018,
respectively)
|
9,293
|
|
6,069
|
|
|
Deferred revenue -
current portion (including deferred revenue of the consolidated
VIE without recourse to China Distance Education Holdings Limited
of US$102,131
and US$77,299 as of March 31, 2019 and September 30, 2018,
respectively)
|
78,194
|
|
103,022
|
|
|
Refundable fees -
current portion (including refundable fees of the consolidated
VIE
without recourse to China Distance Education Holdings Limited of
US$1,036 and
US$13,837 as of March 31, 2019 and September 30, 2018,
respectively)
|
13,837
|
|
1,036
|
|
|
Total current
liabilities
|
194,440
|
|
198,920
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred revenue -
non-current portion (including deferred revenue of the
consolidated VIE without recourse to China Distance Education
Holdings Limited
of US$34,624 and nil as of March 31, 2019 and September 30, 2018,
respectively)
|
-
|
|
34,624
|
|
|
Refundable fees -
non-current portion (including refundable fees of the
consolidated
VIE without recourse to China Distance Education Holdings Limited
of US$2,249
and nil as of March 31, 2019 and September 30, 2018,
respectively)
|
-
|
|
2,249
|
|
|
Deferred tax
liabilities
|
12,693
|
|
12,062
|
|
|
Long-term bank
borrowing
|
12,027
|
|
6,348
|
|
|
Total non-current
liabilities
|
24,720
|
|
55,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
219,160
|
|
254,203
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.0001 per share; 500,000,000 shares authorized;
134,230,689 and 133,275,521 shares issued and outstanding at March
31, 2019 and
September 30, 2018, respectively)
|
13
|
|
13
|
|
|
Additional paid-in
capital
|
21,557
|
|
22,591
|
|
|
Accumulated other
comprehensive loss
|
(7,013)
|
|
(619)
|
|
|
Retained
Earnings
|
29,717
|
|
37,452
|
|
|
Total China Distance Education Holdings
Limited shareholder's equity
|
44,274
|
|
59,437
|
|
|
Noncontrolling
interest
|
65,491
|
|
66,923
|
|
|
Total equity
|
109,765
|
|
126,360
|
|
|
Total liabilities and
equity
|
328,925
|
|
380,563
|
|
|
|
|
|
|
|
|
China Distance Education Holdings
Limited
|
|
Unaudited Condensed Consolidated Statements Of Operations
|
|
(in thousands of US dollars, except number of
shares, per share and per ADS data)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
Sales, net of business tax, value-added tax and
related surcharges:
|
|
|
|
|
|
Online education
services
|
23,396
|
|
27,878
|
|
|
Books and reference
materials
|
1,391
|
|
5,401
|
|
|
Others
|
4,961
|
|
5,482
|
|
|
- Sale of
learning simulation software
|
739
|
|
1,962
|
|
|
- Business
start-up training services
|
642
|
|
692
|
|
|
-
Others
|
3,580
|
|
2,828
|
|
|
Total net
revenues
|
29,748
|
|
38,761
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
Cost of services and
others
|
(17,550)
|
|
(19,453)
|
|
|
Cost of tangible goods
sold
|
(1,130)
|
|
(3,826)
|
|
|
Total cost
of sales
|
(18,680)
|
|
(23,279)
|
|
|
|
|
|
|
|
|
Gross profit
|
11,068
|
|
15,482
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Selling
expenses
|
(8,341)
|
|
(13,801)
|
|
|
General and
administrative expenses
|
(5,766)
|
|
(6,581)
|
|
|
Total
operating expenses
|
(14,107)
|
|
(20,382)
|
|
|
Other operating
income
|
128
|
|
842
|
|
|
|
|
|
|
|
|
Operating loss
|
(2,911)
|
|
(4,058)
|
|
|
|
|
|
|
|
|
Interest
income
|
667
|
|
524
|
|
|
Interest
expense
|
(869)
|
|
(796)
|
|
|
Exchange
loss
|
(3,109)
|
|
(2,177)
|
|
|
|
|
|
|
|
|
Loss before
income taxes
|
(6,222)
|
|
(6,507)
|
|
|
Income tax
benefit
|
1,431
|
|
1,335
|
|
|
Loss from equity
method investment
|
(16)
|
|
(642)
|
|
|
|
|
|
|
|
|
Net loss
|
(4,807)
|
|
(5,814)
|
|
|
Net loss attributable to noncontrolling
interest
|
1,542
|
|
1,939
|
|
|
Net loss attributable to China Distance Education Holdings
Limited
|
(3,265)
|
|
(3,875)
|
|
|
Net loss per
share:
|
|
|
|
|
|
Net loss attributable to China Distance Education Holdings Limited
shareholders
|
|
|
|
|
|
Basic
|
(0.025)
|
|
(0.029)
|
|
|
Diluted
|
(0.025)
|
|
(0.029)
|
|
|
Net loss per
ADS:
|
|
|
|
|
|
Net loss attributable to China Distance Education Holdings Limited
shareholders
|
|
|
|
|
|
Basic
|
(0.098)
|
|
(0.116)
|
|
|
Diluted
|
(0.098)
|
|
(0.116)
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating
net loss
per share:
|
|
|
|
|
|
Basic
|
132,411,344
|
|
133,009,706
|
|
|
Diluted
|
132,411,344
|
|
133,009,706
|
|
|
China Distance Education Holdings
Limited
|
|
|
Unaudited Condensed Consolidated Statements Of Operations
|
|
|
(in thousands of US dollars, except number of shares,
per share and per ADS data)
|
|
|
|
|
|
|
Six Months
Ended March
31,
|
|
|
|
2018
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
Sales, net of business tax, value-added tax and
related surcharges:
|
|
|
|
|
|
|
Online education
services
|
45,829
|
|
|
52,921
|
|
|
Books and reference
materials
|
3,768
|
|
|
11,806
|
|
|
Others
|
16,029
|
|
|
16,657
|
|
|
- Sale of learning simulation software
|
6,899
|
|
|
6,965
|
|
|
- Business start-up training services
|
2,048
|
|
|
1,372
|
|
|
- Others
|
7,082
|
|
|
8,320
|
|
|
Total net
revenues
|
65,626
|
|
|
81,384
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
Cost of services and
others
|
(33,888)
|
|
|
(41,626)
|
|
|
Cost of tangible goods
sold
|
(3,172)
|
|
|
(7,262)
|
|
|
Total cost
of sales
|
(37,060)
|
|
|
(48,888)
|
|
|
|
|
|
|
|
|
|
Gross profit
|
28,566
|
|
|
32,496
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Selling
expenses
|
(17,463)
|
|
|
(28,285)
|
|
|
General and
administrative expenses
|
(10,762)
|
|
|
(12,907)
|
|
|
Total
operating expenses
|
(28,225)
|
|
|
(41,192)
|
|
|
Other operating
income
|
1,857
|
|
|
2,465
|
|
|
|
|
|
|
|
|
|
Operating income/(loss)
|
2,198
|
|
|
(6,231)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
1,123
|
|
|
1,188
|
|
|
Interest
expense
|
(1,616)
|
|
|
(1,590)
|
|
|
Gain from
deconsolidation of a subsidiary
|
-
|
|
|
6,869
|
|
|
Exchange
loss
|
(5,008)
|
|
|
(2,101)
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes
|
(3,303)
|
|
|
(1,865)
|
|
|
Income tax
benefit
|
760
|
|
|
383
|
|
|
Loss from equity
method investment
|
(45)
|
|
|
(363)
|
|
|
|
|
|
|
|
|
|
Net loss
|
(2,588)
|
|
|
(1,845)
|
|
|
Net income attributable to noncontrolling
interest
|
(583)
|
|
|
(117)
|
|
|
Net loss attributable to China Distance Education Holdings
Limited
|
(3,171)
|
|
|
(1,962)
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
Net loss attributable to China Distance Education Holdings Limited
shareholders
|
|
|
|
|
|
|
Basic
|
(0.024)
|
|
|
(0.015)
|
|
|
Diluted
|
(0.024)
|
|
|
(0.015)
|
|
|
Net loss per
ADS:
|
|
|
|
|
|
|
Net loss attributable to China Distance Education Holdings Limited
shareholders
|
|
|
|
|
|
|
Basic
|
(0.096)
|
|
|
(0.059)
|
|
|
Diluted
|
(0.096)
|
|
|
(0.059)
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating
net loss
per share:
|
|
|
|
|
|
|
Basic
|
132,035,108
|
|
|
132,901,311
|
|
|
Diluted
|
132,035,108
|
|
|
132,901,311
|
|
China Distance Education Holdings
Limited
|
Reconciliations of non-GAAP measures to comparable
GAAP measures
|
(In thousands of US Dollars, except number of shares,
per share and per ADS data)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2018
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
18,680
|
|
23,279
|
Share-based
compensation expense in cost of sales
|
|
26
|
|
-
|
Non-GAAP cost of
sales
|
|
18,654
|
|
23,279
|
|
|
|
|
|
Selling
expenses
|
|
8,341
|
|
13,801
|
Share-based
compensation expense in selling expenses
|
|
20
|
|
-
|
Non-GAAP selling
expenses
|
|
8,321
|
|
13,801
|
|
|
|
|
|
General and
administrative expenses
|
|
5,766
|
|
6,581
|
Share-based
compensation expense in general and administrative
expenses
|
|
508
|
|
506
|
Non-GAAP general and
administrative expenses
|
|
5,258
|
|
6,075
|
|
|
|
|
|
Gross
profit
|
|
11,068
|
|
15,482
|
Share-based
compensation expenses
|
|
26
|
|
-
|
Non-GAAP gross
profit
|
|
11,094
|
|
15,482
|
|
|
|
|
|
Gross profit
margin
|
|
37.2%
|
|
39.9%
|
Non-GAAP gross profit
margin
|
|
37.3%
|
|
39.9%
|
|
|
|
|
|
Operating
loss
|
|
(2,911)
|
|
(4,058)
|
Share-based
compensation expenses
|
|
554
|
|
506
|
Non-GAAP operating
loss
|
|
(2,357)
|
|
(3,552)
|
|
|
|
|
|
Operating
margin
|
|
(9.8%)
|
|
(10.5%)
|
Non-GAAP operating
margin
|
|
(7.9%)
|
|
(9.2%)
|
|
|
|
|
|
Net loss
|
|
(3,265)
|
|
(3,875)
|
Share-based
compensation expense
|
|
554
|
|
506
|
Non-GAAP net
loss
|
|
(2,711)
|
|
(3,369)
|
|
|
|
|
|
Net loss
margin
|
|
(11.0%)
|
|
(10.0%)
|
Non-GAAP net loss
margin
|
|
(9.1%)
|
|
(8.7%)
|
|
|
|
|
|
Net loss per share --
basic
|
|
(0.025)
|
|
(0.029)
|
Net loss per share --
diluted
|
|
(0.025)
|
|
(0.029)
|
Non-GAAP net loss per
share -- basic
|
|
(0.020)
|
|
(0.025)
|
Non-GAAP net loss per
share -- diluted
|
|
(0.020)
|
|
(0.025)
|
|
|
|
|
|
Net loss per ADS
attributable to China Distance Education Holdings Limited
shareholders -- basic (note 1)
|
|
(0.098)
|
|
(0.116)
|
Net loss per ADS
attributable to China Distance Education Holdings Limited
shareholders -- diluted (note 1)
|
|
(0.098)
|
|
(0.116)
|
Non-GAAP net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders -- basic (note 1)
|
|
(0.082)
|
|
(0.101)
|
Non-GAAP net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders -- diluted (note 1)
|
|
(0.082)
|
|
(0.101)
|
|
|
|
|
|
Weighted average
shares used in calculating basic net loss per share
|
|
132,411,344
|
|
133,009,706
|
Weighted average
shares used in calculating diluted net loss per share
|
|
132,411,344
|
|
133,009,706
|
Weighted average
shares used in calculating basic non-GAAP net loss per
share
|
|
132,411,344
|
|
133,009,706
|
Weighted average
shares used in calculating diluted non-GAAP net loss per
share
|
|
132,411,344
|
|
133,009,706
|
|
|
|
|
|
China Distance Education Holdings
Limited
|
Reconciliations of non-GAAP measures to comparable
GAAP measures
|
(In thousands of US Dollars, except number of shares,
per share and per ADS data)
|
|
|
|
|
|
Six Months
Ended March
31,
|
|
|
2018
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Cost of
sales
|
|
37,060
|
|
48,888
|
Share-based
compensation expense in cost of sales
|
|
71
|
|
23
|
Non-GAAP cost of
sales
|
|
36,989
|
|
48,865
|
|
|
|
|
|
Selling
expenses
|
|
17,463
|
|
28,285
|
Share-based
compensation expense in selling expenses
|
|
40
|
|
10
|
Non-GAAP selling
expenses
|
|
17,423
|
|
28,275
|
|
|
|
|
|
General and
administrative expenses
|
|
10,762
|
|
12,907
|
Share-based
compensation expense in general and administrative
expenses
|
|
945
|
|
979
|
Non-GAAP general and
administrative expenses
|
|
9,817
|
|
11,928
|
|
|
|
|
|
Gross
profit
|
|
28,566
|
|
32,496
|
Share-based
compensation expenses
|
|
71
|
|
23
|
Non-GAAP gross
profit
|
|
28,637
|
|
32,519
|
|
|
|
|
|
Gross profit
margin
|
|
43.5%
|
|
39.9%
|
Non-GAAP gross profit
margin
|
|
43.6%
|
|
40.0%
|
|
|
|
|
|
Operating
income/(loss)
|
|
2,198
|
|
(6,231)
|
Share-based
compensation expenses
|
|
1,056
|
|
1,012
|
Non-GAAP operating
income/(loss)
|
|
3,254
|
|
(5,219)
|
|
|
|
|
|
Operating
margin
|
|
3.3%
|
|
(7.7%)
|
Non-GAAP operating
margin
|
|
5.0%
|
|
(6.4%)
|
|
|
|
|
|
Net loss
|
|
(3,171)
|
|
(1,962)
|
Share-based
compensation expense
|
|
1,056
|
|
1,012
|
Non-GAAP net
loss
|
|
(2,115)
|
|
(950)
|
|
|
|
|
|
Net loss
margin
|
|
(4.8%)
|
|
(2.4%)
|
Non-GAAP net loss
margin
|
|
(3.2%)
|
|
(1.2%)
|
|
|
|
|
|
Net loss per share --
basic
|
|
(0.024)
|
|
(0.015)
|
Net loss per share --
diluted
|
|
(0.024)
|
|
(0.015)
|
Non-GAAP net loss per
share -- basic
|
|
(0.016)
|
|
(0.007)
|
Non-GAAP net loss per
share -- diluted
|
|
(0.016)
|
|
(0.007)
|
|
|
|
|
|
Net loss per ADS
attributable to China Distance Education Holdings Limited
shareholders -- basic (note 1)
|
|
(0.096)
|
|
(0.059)
|
Net loss per ADS
attributable to China Distance Education Holdings Limited
shareholders -- diluted (note 1)
|
|
(0.096)
|
|
(0.059)
|
Non-GAAP net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders -- basic (note 1)
|
|
(0.064)
|
|
(0.029)
|
Non-GAAP net loss per
ADS attributable to China Distance Education Holdings Limited
shareholders -- diluted (note 1)
|
|
(0.064)
|
|
(0.029)
|
|
|
|
|
|
Weighted average
shares used in calculating basic net loss per share
|
|
132,035,108
|
|
132,901,311
|
Weighted average
shares used in calculating diluted net loss per share
|
|
132,035,108
|
|
132,901,311
|
Weighted average
shares used in calculating basic non-GAAP net loss per
share
|
|
132,035,108
|
|
132,901,311
|
Weighted average
shares used in calculating diluted non-GAAP net loss per
share
|
|
132,035,108
|
|
132,901,311
|
|
|
|
|
|
Note 1: Each ADS
represents four ordinary shares.
|
View original
content:http://www.prnewswire.com/news-releases/china-distance-education-holdings-limited-reports-financial-results-for-second-quarter-fiscal-year-2019-300851097.html
SOURCE China Distance Education Holdings Ltd.