omniture

Ambow Education Announces Strong First Quarter 2011 Unaudited Financial Results

2011-05-18 18:34 2542

Net Revenues Increased 29.6% Year-Over-Year

Net Income Attributable to Ambow Increased 151.6% Year-Over-Year


BEIJING, May 18, 2011 /PRNewswire-Asia/ -- Ambow Education Holding Ltd. ("Ambow" or the "Company") (NYSE: AMBO), a leading national provider of educational and career enhancement services in China, today reported its unaudited financial results for the first quarter of 2011.

Financial Highlights for the Quarter Ended March 31, 2011:

  • Total net revenues increased 29.6% to $51.5 million(1) from $39.7 million for the same period in 2010. Existing business contributed 24.2% growth, while 5.4% came from acquisitions.  
    • Tutoring revenues increased 24.6% to $25.3 million from $20.3 million for the same period in 2010.
    • Career Enhancement revenues increased 116.2% to $11.8 million from $5.5 million for the same period in 2010.
  • Net income(2) increased 151.6% to $1.5 million from $0.6 million for the same period in 2010.
  • Operating income increased 86.5% to $2.8 million from $1.5 million for the same period in 2010.
  • Adjusted EBITDA(3) increased 28.9% to $8.6 million from $6.7 million for the same period in 2010.
  • Total student enrollments increased 16% year-over-year to 234,000.

Commenting on the first quarter results, Ambow's President and Chief Executive Officer Dr. Jin Huang said, "We are pleased to report that Ambow started the year with a strong quarter, highlighted by impressive revenue and net income growth.  Ambow is the only listed company in the education sector that is able to address two fundamental market demands in China - the desire to get into a better school and the desire to get a better job.  Our business objective is to acquire more and more students and retain them through Ambow's education services platform."  

Dr. Huang continued, "We continue to execute our strategy to maintain sustained growth in order to provide quality services to more students.  A highlight of our first quarter was the robust growth in our Career Enhancement segment, where we experienced a 116.2% increase in revenues and a 110.2% increase in enrollment year-over-year.  We have seen great demand in our Career Enhancement segment, where Ambow is a clear market leader.  Our strategy is to continue to increase market penetration with a broad range of products and services tailored to meet the demands of people pursuing career development."

"Turning to acquisitions, we closed five acquisitions during the quarter, which is in line with our strategy to expand Ambow's footprint and offerings throughout China. Given the nature of China's highly fragmented education market and our proven ability to successfully identify and integrate acquisition targets, we believe we are well positioned to consolidate this market," said Dr. Huang.

Ambow's Chief Financial Officer Paul Chow added, "I'm pleased to report that our net revenues increased 29.6% year-over-year, with 24.2% of revenues growth attributable to existing business and 5.4% attributable to acquisitions. Our net income attributable to the Company increased by 151.6% year-over-year, despite the seasonal effect of school and public holidays, which always makes the first quarter challenging.  In addition, our operating margin improved 1.7% to 5.4% in the first quarter of 2011."

Mr. Chow continued, "Turning to margins, net income margin(4) improved 1.4% to 2.9% in the first quarter of 2011.  The Company's net margin is traditionally lowest in the first quarter as it is subject to seasonality.  Adjusted EBITDA margin was 16.7% in the first quarter of 2011.  Ambow's depreciation and amortization constitute a relatively high percentage of revenue, so adjusted EBITDA is a particularly useful metric for understanding Ambow's profitability."

Financial Results for the First Quarter of 2011

Net Revenues

Total net revenues for the first quarter of 2011 increased 29.6% to $51.5 million from $39.7 million for the same period in 2010.  This improvement was primarily the result of strong revenues contribution from Career Enhancement and Tutoring.

Net Revenue Breakdown by Key Operating Segments:

Better Schools

Better Schools increased 19.7% to $33.5 million, with Tutoring and K-12 Schools accounting for $25.2 million and $8.3 million of total net revenues, respectively, for the first quarter of 2011.

The Company noted that Tutoring revenues grew 24.6% year-over-year, with a balanced 12.2% growth in enrollments and 11.1% growth in Average Selling Price ("ASP").

Total student enrollments in Better Schools during the first quarter of 2011 was approximately 204,000, with 181,000 in Tutoring and 23,000 in K-12 Schools. Compared with the same period in 2010, there was a 11.4% increase in total Better Schools enrollments, with an increase of 12.2% and an increase of 5.4% for Tutoring and K-12 Schools enrollments, respectively.

Better Jobs

Better Jobs increased 53.2% to $18.0 million, with Career Enhancement and Colleges accounting for $11.8 million and $6.2 million of total net revenues, respectively, for the first quarter of 2011.

The Company noted that Career Enhancement revenues grew a record 116.2% year-over-year, with an impressive 110.2% growth in enrollments to 18,000 and a 2.8% increase in ASP.  This revenue increase was primarily driven by strong growth in existing business (83%) with the remaining growth attributable to acquisition activities.

Total student enrollments in Better Jobs during the first quarter of 2011 was approximately 30,000, with 18,000 in Career Enhancement and over 12,000 in Colleges. Compared with the same period in 2010, there was a 44.0% increase in total Better Jobs enrollments, with an increase of 110.2% in Career Enhancement enrollments, while enrollments in Colleges remained flat.

Gross Profit and Gross Margin

Gross profit was $26.4 million for the first quarter of 2011, increasing 29.8% year-over-year from $20.3 million for the same period in 2010. Gross margin was 51.2% for the first quarter of 2011, compared to 51.1% for the same period in 2010.

Operating Expenses

Operating expenses, which include selling and marketing, general and administrative and research and development expenses, were $23.6 million for the first quarter of 2011, increasing 25.3% year-over-year from $18.8 million for the same period in 2010. This increase is mainly attributable to the increased expense of being a public company, costs related to recent acquisitions and a higher number of centers as compared to the first quarter of 2010.  The increased operating expenses are primarily due to the Company's continued investment in growth, which is necessary to support Ambow's continued business expansion.

Operating expenses, as a percentage of revenues, improved 1.6%, from 47.4% in the first quarter of 2010 to 45.8% in the same period in 2011.  Selling and marketing expenses, as a percentage of revenues, decreased 2.2%, from 19.9% to 17.7%, as a result of operating efficiency contributing to revenues growth. General and administrative expenses, as a percentage of revenue, remained nearly flat at 25.8%, a slight increase compared to 25.5% for the same period in 2010.  General and administrative expenses include increased expenses attributable to being a public company. Research and development expenses, as a percentage of revenues, were 2.3%, a slight increase compared to 2.0% for the same period in 2010.  The research and development expenses are consistent with the Company's strategy to support future business growth.  The Company believes that continued investments in growth, and the associated increases in operating expenses, will support its continued business expansion.

Income Tax Expenses

Our income tax expenses were $236,000 for the first quarter of 2011 compared to income tax expenses of $570,000 for the same period in 2010. The Group anticipates that in 2011 it will be able to utilise certain tax losses brought forward and take advantage of tax exemptions for a recently established entity, resulting in a full-year effective tax rate of 10% compared to 15% in 2010.

Net Income

Net income was $1.5 million for the first quarter of 2011, increasing 151.6% year-over-year from $0.6 million for the same period in 2010. Net income margin was 2.9%, improving 1.4%, compared to net income margin of 1.5% for the same period in 2010.  Basic and diluted net income per adjusted ADS(5) attributable to Ambow was $0.02, compared to net income per adjusted ADS of $0.01 for the same period in 2010.

Non-GAAP net income(6) was $2.5 million for the first quarter of 2011, increasing 72.4% year-over-year, compared to $1.5 million for the same period in 2010. Non-GAAP net income margin(7) was 4.9% for the first quarter of 2011, compared to 3.7% for the same period in 2010.  Basic and diluted non-GAAP net income per adjusted ADS attributable to Ambow(8) was $0.04 and $0.03, respectively, compared to $0.02 for the same period in 2010.

Adjusted EBITDA

Adjusted EBITDA was $8.6 million for the first quarter of 2011, increasing 28.9% year-over-year, compared to $6.7 million for the same period in 2010. Depreciation and amortization in the first quarter of 2011 was $5.0 million as compared to $4.2 million in the same period 2010.

Adjusted EBITDA margin(9) was 16.7%, compared to 16.8% for the same period in 2010.  Depreciation and amortization as a percentage of revenue was 9.7%.

Balance Sheet and Cash Flow Information

Cash and cash equivalents, restricted cash and term deposits as of March 31, 2011 were $125.3 million, compared to $141.8 million as of December 31, 2010.   The reduction in cash is mainly due to payments for acquisitions and deposits in connection with establishing the Company's Career Enhancement Center.

The Company's deferred revenue balance as of March 31, 2011 was $72.9 million compared to $68.1 million as of March 31, 2010, an increase of 7.1%. Deferred revenue includes tuition fees from enrolled students for courses not yet delivered as of the period ended March 31, 2011.

Financial Outlook for the Second Quarter of Full-Year 2011

Ambow expects total net revenues for the second quarter of 2011 to be in the range of $74.8 million (Rmb490 million) to $76.4 million (Rmb500 million).

This is the Company's current view and it is subject to change.

Conference Call Information

Ambow's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on May 18, 2011 (8:00 p.m. Beijing/Hong Kong Time on May 18, 2011).

The dial-in number and passcode for the conference call are as follows:

U.S. Toll Free:

 

1-866-549-1292

 

 

China Toll Free:              

 

400-681-6949

 

 

International:

 

+852-3005-2050

 

 

 

 


The passcode for the call is "657079".

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of Ambow's website at: http://investors.ir.ambow.com/us/AMBO/irwebsite/

(1) The reporting currency of the Company is Renminbi ("RMB"), but for the convenience of the reader, the amounts presented throughout the release are in US dollar ("$"). Unless otherwise stated, all translations from RMB to US$ are based on the historical exchange rate of US$1.0 to RMB6.5483, representing the noon buying rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board on March 31, 2011. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.

 

 

(2) Net income, being net income attributable to Ambow.

 

 

(3) Adjusted EBITDA, being net income attributable to Ambow excluding net interest expense, income tax expenses, depreciation and amortization and share-based compensation expenses.

 

 

(4) Net income margin, being net income attributable to Ambow as a percentage of total net revenues.

 

 

(5) Each ADS represents two ordinary shares.

 

 

(6) Non-GAAP net income, being net income attributable to Ambow excluding share-based compensation expenses incurred for the respective periods.

 

 

(7) Non-GAAP net income margin, being Non-GAAP net income as a percentage of total net revenues.

 

 

(8) Net income per adjusted ADS attributable to Ambow  - basic and diluted are computed by dividing net income attributable to Ambow by weighted average number of common shares outstanding for the period plus (1) shares issuable upon the exercise of outstanding share options and (2) the number of common shares resulting from the assumed conversion of all the outstanding redeemable convertible preferred share and exercise of warrants upon closing of the initial public offering as if the conversion or exercise had occurred at the beginning of the period.

 

 

(9) Adjusted EBITDA margin, being Adjusted EBIDTA as a percentage of total net revenues.

 

 

 


About Ambow Education Holding Ltd.

Ambow Education Holding Ltd. (NYSE: AMBO) is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. Ambow has two business divisions: "Better Schools," which includes K-12 schools and tutoring centers; and "Better Jobs," which includes colleges and career enhancement centers. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 30 out of the 31 provinces and autonomous regions within China.

Forward Looking Statements

Certain statements in this press release, including statements regarding the outlook for the second quarter of 2011 and quotations from management concerning Ambow's strategic and operational plans and expectations, are forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Ambow uses words such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates", "target" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are based on management's current expectations and involve risks and uncertainties. The following important factors, without limitation, could cause actual results to differ materially from those contained in these forward-looking statements: Ambow's ability to manage its business expansion and operations effectively, to make strategic acquisitions and investments and to successfully integrate acquired businesses; significant competition; Ambow's ability to continue to attract students to enroll in its programs, to continually enhance its programs, services and products, to successfully develop and introduce new services and products in time and to adequately and promptly respond to changes in curriculum, testing materials and standards; economic conditions; and changes in government policies, laws and regulations. More information on factors that could affect Ambow's results is included from time to time in Ambow's Securities and Exchange Commission (SEC) filings and reports, including the risks described in its annual report on Form 20-F for the fiscal year ended December 31, 2010 filed with the SEC on April 14, 2011 and in Ambow's other filings with the SEC from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on Ambow's future results.  In light of these risks, uncertainties and factors, you are cautioned not to place undue reliance on forward-looking statements. Ambow disclaims any obligation to update information contained in forward-looking statements, whether as a result of new information, future events or otherwise.

Statement Regarding Unaudited Financial Information

The Company has prepared the unaudited consolidated financial information on the same basis as its audited consolidated financial statements. The unaudited consolidated financial information includes all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position and results of operations for the quarters presented. Quarterly and year end results may not be indicative of the Company's results of operations for future quarterly periods.

About Non-GAAP Financial Measures

To supplement Ambow's unaudited consolidated financial results presented in accordance with GAAP, Ambow uses the following measures defined as non-GAAP financial measures by the SEC: (i) Non-GAAP operating expenses, (ii) Non-GAAP net income, (iii) Non-GAAP net income attributable to Ambow per ADS basic and diluted and (iv) Adjusted EBITDA. 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 tables captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

Ambow believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity that may not be indicative of its operating performance from a cash perspective. Ambow believes that both management and investors benefit from referring to 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 Ambow's historical performance and liquidity. Ambow computes its non-GAAP financial measures using the same consistent method from quarter to quarter. These non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. Ambow 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. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations with GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For investor and media inquiries please contact:

 

 

 

 

Ms. Cherry Pu

 

 

Vice President, Global Alliances and Investor Relations

 

 

Ambow Education Holding Ltd.

 

 

Tel: +86-10-6206-8008

 

 

Email: ir@ambow.com

 

 

 

 

Mr Jeffrey Goldberger

 

 

KCSA Strategic Communications

 

 

Tel: +1-212-896-1249

 

 

Email: jgoldberger@kcsa.com

 

 

 


***** Tables to Follow *****

AMBOW EDUCATION HOLDING LTD

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(ALL AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of
March 31,

 

 

As of
December 31,

 

 

As of
March31,

 

 

As of
December 31,

 

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

 

 

 USD

 

 

 USD

 

 

RMB

 

 

RMB

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

120,781

 

 

132,752

 

 

790,907

 

 

869,300

 

 

Restricted cash

 

 

8

 

 

-

 

 

50

 

 

-

 

 

Term deposits

 

 

4,536

 

 

9,041

 

 

29,700

 

 

59,200

 

 

Accounts receivable, net

 

 

8,450

 

 

7,374

 

 

55,326

 

 

48,287

 

 

Amounts due from related parties

 

 

25,193

 

 

22,935

 

 

164,974

 

 

150,182

 

 

Deferred tax assets, current

 

 

1,610

 

 

1,209

 

 

10,540

 

 

7,916

 

 

Prepaid and other current assets

 

 

67,917

 

 

80,769

 

 

444,734

 

 

528,897

 

 

TOTAL CURRENT ASSETS

 

 

228,495

 

 

254,080

 

 

1,496,231

 

 

1,663,782

 

 

Property and equipment, net

 

 

103,272

 

 

102,827

 

 

676,259

 

 

673,341

 

 

Land use rights, net

 

 

41,122

 

 

39,315

 

 

269,279

 

 

257,445

 

 

Intangible assets, net

 

 

93,082

 

 

80,934

 

 

609,529

 

 

529,979

 

 

Goodwill

 

 

188,832

 

 

152,796

 

 

1,236,528

 

 

1,000,555

 

 

Deferred tax assets, non-current

 

 

862

 

 

659

 

 

5,646

 

 

4,315

 

 

Amounts due from related parties

 

 

3,451

 

 

-

 

 

22,593

 

 

-

 

 

Other non-current assets

 

 

23,124

 

 

16,658

 

 

151,425

 

 

109,080

 

 

TOTAL NON-CURRENT ASSETS

 

 

453,745

 

 

393,189

 

 

2,971,259

 

 

2,574,715

 

 

TOTAL ASSETS

 

 

682,240

 

 

647,269

 

 

4,467,490

 

 

4,238,497

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

21,085

 

 

18,031

 

 

138,070

 

 

118,070

 

 

Current portion of Long-term borrowings

 

 

9,315

 

 

9,315

 

 

61,000

 

 

61,000

 

 

Deferred revenue

 

 

72,949

 

 

68,122

 

 

477,692

 

 

446,084

 

 

Accounts payable

 

 

5,055

 

 

6,042

 

 

33,100

 

 

39,568

 

 

Accrued expenses and other current liabilities

 

 

62,182

 

 

46,373

 

 

407,190

 

 

303,666

 

 

Income tax payable

 

 

14,642

 

 

13,671

 

 

95,882

 

 

89,521

 

 

Amount due to related parties

 

 

2,401

 

 

2,061

 

 

15,720

 

 

13,493

 

 

TOTAL CURRENT LIABILITIES

 

 

187,629

 

 

163,615

 

 

1,228,654

 

 

1,071,402

 

 

Deferred tax liabilities, non-current

 

 

26,309

 

 

23,639

 

 

172,280

 

 

154,793

 

 

Long-term borrowings

 

 

8,246

 

 

8,246

 

 

54,000

 

 

54,000

 

 

Non-current portion of consideration payable for acquisitions and other liabilities

 

 

41,368

 

 

34,407

 

 

270,888

 

 

225,309

 

 

TOTAL NON-CURRENT LIABILITIES

 

 

75,923

 

 

66,292

 

 

497,168

 

 

434,102

 

 

TOTAL LIABILITIES

 

 

263,552

 

 

229,907

 

 

1,725,822

 

 

1,505,504

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

410,325

 

 

409,259

 

 

2,686,913

 

 

2,679,951

 

 

TOTAL AMBOW EDUCATION HOLDING LTD’S EQUITY

 

 

410,325

 

 

409,259

 

 

2,686,913

 

 

2,679,951

 

 

Non-controlling interest

 

 

8,363

 

 

8,103

 

 

54,755

 

 

53,042

 

 

TOTAL SHAREHOLDER’S EQUITY

 

 

418,688

 

 

417,362

 

 

2,741,668

 

 

2,732,993

 

 

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY

 

 

682,240

 

 

647,269

 

 

4,467,490

 

 

4,238,497

 

 

 

 

 

 

 

 

 

 

 



AMBOW EDUCATION HOLDING LTD

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

(ALL AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

 

For the three months ended March 31, 2011

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

 

USD

 

 

USD

 

 

RMB

 

 

RMB

 

 

Better Schools

 

 

 

 

 

 

 

 

 

Tutoring

 

25,254

 

 

20,261

 

 

165,374

 

 

132,678

 

 

K-12 Schools

 

8,266

 

 

7,749

 

 

54,129

 

 

50,743

 

 

Better Job

 

 

 

 

 

 

 

 

 

Career Enhancement

 

11,808

 

 

5,462

 

 

77,321

 

 

35,764

 

 

Colleges

 

6,171

 

 

6,277

 

 

40,408

 

 

41,103

 

 

NET REVENUES

 

51,499

 

 

39,749

 

 

337,232

 

 

260,288

 

 

Cost of revenues

 

(25,108)

 

 

(19,420)

 

 

(164,415)

 

 

(127,165)

 

 

GROSS PROFIT

 

26,391

 

 

20,329

 

 

172,817

 

 

133,123

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing

 

(9,131)

 

 

(7,896)

 

 

(59,793)

 

 

(51,703)

 

 

General and administrative

 

(13,266)

 

 

(10,135)

 

 

(86,867)

 

 

(66,367)

 

 

Research and development

 

(1,190)

 

 

(795)

 

 

(7,791)

 

 

(5,207)

 

 

TOTAL OPERATING EXPENSES

 

(23,587)

 

 

(18,826)

 

 

(154,451)

 

 

(123,277)

 

 

OPERATING INCOME

 

2,804

 

 

1,503

 

 

18,366

 

 

9,846

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(848)

 

 

(489)

 

 

(5,552)

 

 

(3,199)

 

 

Foreign exchange loss, net

 

(266)

 

 

(5)

 

 

(1,742)

 

 

(36)

 

 

Other income/(expense), net

 

(193)

 

 

15

 

 

(1,262)

 

 

98

 

 

INCOME BEFORE TAX AND NON-CONTROLLING INTEREST

 

1,497

 

 

1,024

 

 

9,810

 

 

6,709

 

 

Income tax expenses

 

(236)

 

 

(570)

 

 

(1,547)

 

 

(3,733)

 

 

NET INCOME

 

1,261

 

 

454

 

 

8,263

 

 

2,976

 

 

Add: Net loss attributable to non-controlling interest

 

228

 

 

138

 

 

1,492

 

 

901

 

 

NET INCOME ATTRIBUTABLE TO AMBOW EDUCATION HOLDING LTD

 

1,489

 

 

592

 

 

9,755

 

 

3,877

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares redemption value accretion

 

-

 

 

(11,748)

 

 

-

 

 

(76,932)

 

 

Allocation of net income to participating preferred shareholders

 

-

 

 

(3,523)

 

 

-

 

 

(23,067)

 

 

NET INCOME/(LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS

 

1,489

 

 

(14,679)

 

 

9,755

 

 

(96,122)

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) per ADS attributable to ordinary shareholders

 

 

 

 

 

 

 

 

 

Basic

 

0.02

 

 

(0.64)

 

 

0.14

 

 

(4.16)

 

 

Diluted

 

0.02

 

 

(0.64)

 

 

0.13

 

 

(4.16)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ADS(note 1)

 

 

 

 

 

 

 

 

 

Basic

 

71,283,488

 

 

23,110,616

 

 

71,283,488

 

 

23,110,616

 

 

Diluted

 

75,425,764

 

 

23,110,616

 

 

75,425,764

 

 

23,110,616

 

 

 

 

 

 

 

 

 

 

 

Supplementary Information:

 

 

 

 

 

 

 

 

 

Share-based compensation expense included in:

 

 

 

 

 

 

 

 

 

Selling and marketing

 

273

 

 

221

 

 

1,788

 

 

1,450

 

 

General and administrative

 

712

 

 

617

 

 

4,667

 

 

4,035

 

 

Research and development

 

34

 

 

25

 

 

221

 

 

165

 

 

Note1:      Each ADS represents two common shares.

 

 

 

 

 

 

 

 

 

 

 



AMBOW EDUCATION HOLDING LTD

 

 

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

 

 

(ALL AMOUNTS IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)

 

 

 

 

 

For the three months ended March 31, 2011

 

 

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

 

 

 

USD

 

 

USD

 

 

RMB

 

 

RMB

 

 

 

Operating expenses

 

 

23,587

 

 

18,826

 

 

154,451

 

 

123,277

 

 

 

Share-based compensation expenses

 

 

1,019

 

 

863

 

 

6,676

 

 

5,650

 

 

(i)

 

Non-GAAP operating expenses

 

 

22,568

 

 

17,963

 

 

147,775

 

 

117,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Ambow

 

 

1,489

 

 

592

 

 

9,755

 

 

3,877

 

 

 

Share-based compensation expenses

 

 

1,019

 

 

863

 

 

6,676

 

 

5,650

 

 

(ii)

 

Non-GAAP net income

 

 

2,508

 

 

1,455

 

 

16,431

 

 

9,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income margin

 

 

2.9%

 

 

1.5%

 

 

2.9%

 

 

1.5%

 

 

 

Non-GAAP net income margin

 

 

4.9%

 

 

3.7%

 

 

4.9%

 

 

3.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) per ADS attributable to ordinary shareholders - Basic

 

 

0.02

 

 

(0.64)

 

 

0.14

 

 

(4.16)

 

 

 

Net income/(loss) per ADS attributable to ordinary shareholders - Diluted

 

 

0.02

 

 

(0.64)

 

 

0.13

 

 

(4.16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per adjusted ADS attributable to Ambow - Basic

 

 

0.02

 

 

0.01

 

 

0.14

 

 

0.06

 

 

 

Net income per adjusted ADS attributable to Ambow – Diluted  (note3)

 

 

0.02

 

 

0.01

 

 

0.13

 

 

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per adjusted ADS attributable to Ambow - Basic

 

 

0.04

 

 

0.02

 

 

0.23

 

 

0.15

 

 

(iii)

 

Non-GAAP net income per adjusted ADS attributable to Ambow – Diluted

 

 

0.03

 

 

0.02

 

 

0.22

 

 

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average number of ADS used in calculating net income and non GAAP net income attributable to Ambow per ADS - basic

 

 

71,283,488

 

 

63,488,392

 

 

71,283,488

 

 

63,488,392

 

 

 

Adjusted weighted average number of ADS used in calculating net income and non GAAP net income attributable to Ambow per ADS - diluted

 

 

75,425,764

 

 

67,474,875

 

 

75,425,764

 

 

67,474,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (note1)

 

 

7,589

 

 

5,821

 

 

49,696

 

 

38,115

 

 

 

Share-based compensation expenses

 

 

1,019

 

 

863

 

 

6,676

 

 

5,650

 

 

(iv)

 

Adjusted EBITDA (note2)

 

 

8,608

 

 

6,684

 

 

56,372

 

 

43,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

14.7%

 

 

14.6%

 

 

14.7%

 

 

14.6%

 

 

 

Adjusted EBITDA margin

 

 

16.7%

 

 

16.8%

 

 

16.7%

 

 

16.8%

 

 

 

 

 

 

Note1:      EBITDA, a non-GAAP measure, being net income attributable to Ambow excluding interest expense, income tax expenses, depreciation and amortization.  The depreciation and amortization changes in the first quarter of 2011 and 2010 were RMB 32,842 and RMB 27,306 respectively.

 

 

 

Note2:      Adjusted EBITDA being EBITDA excluding share based compensation.

 

 

 

Note3:      Net income per adjusted ADS attributable to Ambow  - basic and diluted are computed by dividing net income attributable to Ambow by weighted average number of common shares outstanding for the period plus (1) shares issuable upon the exercise of outstanding share options and (2) the number of common shares resulting from the assumed conversion of all the outstanding redeemable convertible preferred share and exercise of warrants upon closing of the initial public offering as if the conversion or exercise had occurred at the beginning of the period.

 

 

 

 

 

 

 

 

 

 

 

 




Source: Ambow Education Group
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Keywords: Education
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